The Tata Trusts Saga: Power, Legacy, and Unity Tested
Explore the complex dynamics and power struggles within Tata Trusts following Ratan Tata's passing, and the impact on the Tata Group's future.
Tata TrustsRatan TataNoel TataTata SonsShapoorji PallonjiReal EstateNov 10, 2025
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Now, on to today’s story.
A little over a year ago, India lost a titan who redefined power and influence – Ratan Tata. When he passed away on October 9th, 2024, the nation mourned as if we’d lost a beloved teacher who had quietly guided us through thick and thin.
But this grief was tinged with a mix of nostalgia and uncertainty. While the world remembered Ratan Tata, the Tata empire was learning to move forward without him. This is where the story begins, inside the boardroom of Tata Trusts, where unity and legacy faced their toughest test yet.
Two days after Ratan Tata’s passing, the board appointed his half-brother, Noel Tata, as the new chairman of Tata Trusts, making him one of the most powerful figures in the Tata Empire. What makes this role so significant? To understand, we need to look at the hierarchy of the Tata ecosystem.
Picture the Tata group and you might see Tata Motors, Titan watches, and your morning Starbucks cup. All these companies ultimately roll up to Tata Sons, the holding company of the multi-billion dollar conglomerate. Sitting above that, quietly controlling the empire, is Tata Trusts.
So when Noel Tata took charge, it wasn’t just another corporate transition but a shift at the top of the pyramid. The Trusts held their first board meeting without Ratan Tata, and it was the firestarter of the saga. On paper, it was just another session at Bombay House. But this one carried a different air since the patriarch’s chair was empty, and every decision now had to be made without his quiet nod of approval.
Among the resolutions discussed, one stood out. The board decided that when a trustee’s tenure expires and they are reappointed, it would be for life. If any board member opposed another trustee’s reappointment, they’d be considered ‘unfit’ to sit on the board, effectively forcing everyone to agree or risk losing their own seat. If there was disagreement on reappointment, all decisions made in that meeting could be called into question.
In essence, they either agreed on everything, or nothing at all. This was a power move, tightening control and preserving unity, but it also set the stage for internal tensions.
While the boardroom appeared calm, a silent countdown had begun elsewhere – the Tata Sons listing. The Reserve Bank of India had set a firm deadline: September 30th, 2025. Back in 2022, the RBI classified Tata Sons as an “Upper Layer NBFC,” requiring the company to list within three years. The Shapoorji Pallonji (SP) Group, the second-largest shareholder in Tata Sons with about 18% stake, stood to gain significantly from the listing. That stake alone was worth nearly ₹3 lakh crore.
The SP Group, which had been a quiet partner in the Tata legacy since the 1930s, was now saddled with over ₹55,000 crore in debt and facing a $1.2 billion repayment due in December. Liquidity had become the difference between survival and collapse. They had already sold the Gopalpur port for about ₹2,000 crores and issued a $3.25 billion bond with a 19.75% yield rate to stay afloat.
But as the September 30th deadline for IPO approached, the much-anticipated listing never came. No merchant bankers were hired, no prospectus was filed. Instead, Tata Sons quietly wrote to the RBI, requesting a review of its “Upper Layer NBFC” classification, essentially seeking to avoid the listing.
For Tata Trusts, this was about protection. The Trusts depend on dividends from Tata Sons to fund charitable work. A public listing would expose them to market volatility and stricter regulations, risks that could limit their autonomy and philanthropy.
Internal tensions were starting to bubble. A bloc of four trustees within Tata Trusts – Mehli Mistry, Pramit Jhaveri, Darius Khambata, and Jehangir H.C. Jehangir – opposed the re-appointment of Vijay Singh as the Trusts’ nominee to the Tata Sons board. The reasons weren’t fully clear, but multiple sources pointed to a growing power struggle over senior roles.
Vijay Singh wasn’t just another trustee. He was a defense secretary and a close confidante of the late Ratan Tata. His unexpected removal was the first sign of a fracture. (Vijay Singh eventually resigned from the Tata Sons board but remained a trustee.)
A power vacuum rarely stays empty for long, and soon after, there was an attempt to propose Mehli Mistry’s induction to the Tata Sons board. This time, Noel Tata and Venu Srinivasan pushed back and blocked it. The same bloc that had once resisted Vijay Singh’s reappointment now found itself on the opposite side of Noel Tata’s leadership.
By mid-2025, the board had split into two clear camps – Noel Tata, Venu Srinivasan, and Vijay Singh on one side, and Mehli Mistry, Darius Khambata, Pramit Jhaveri, and Jehangir Jehangir on the other. For the first time since Ratan Tata’s era, the Trusts looked divided.
The breaking point came in September 2025. Mehli Mistry, who was the executor of Ratan Tata’s will, proposed his own nomination to the Tata Sons board. This move was seen by Noel’s side as self-serving, especially amid an already tense governance debate. When the vote was called, the board was split 3-3. Noel, as chairman, cast the deciding vote against Mistry.
Days later, when Mistry’s three-year term came up for renewal, the vote again tied 3-3. Noel’s vote decided the outcome – Mehli Mistry was out. His exit sent ripples through the group, not just because of who he was, but because of what he represented – the fading of Ratan Tata’s old guard.
Around the same time, the SP Group publicly renewed its call for the Tata Sons listing, urging “transparency and governance accountability.” For the government, this wasn’t just another corporate dispute but a confidence issue for the Indian economy. The Tata Group is one of the oldest, largest, and most reputed conglomerates in the world. At a time when foreign investors are pulling out of Indian markets, Bombay House couldn’t appear divided.
So in early October, Noel Tata, Venu Srinivasan, and Darius Khambata were summoned to Delhi for a closed-door meeting with Home Minister Amit Shah and Finance Minister Nirmala Sitharaman. The message was clear: the country couldn’t afford uncertainty at the top of one of its most trusted business institutions. Stability was now a national interest.
When the delegation returned to Mumbai, the mood had shifted. Within weeks, Mehil Mistry withdrew his legal caveat. On November 4, he formally resigned from Tata Trusts, writing that he “did not wish to be a source of discord.” His letter closed with a line Ratan Tata often repeated: “Nobody is bigger than the institution it serves.”
It was a poetic exit, but one that marked the end of an era. The board was back under Noel Tata’s control, but the cost of that control was unmistakable. The Trusts had survived the crisis, but for the first time, they no longer looked unbreakable.
And after a year, the real test begins now. Keeping the house united and the trust unshaken.
Until then…
Frequently Asked Questions
What is the significance of Tata Trusts in the Tata Group?
Tata Trusts sit at the top of the Tata Group's hierarchy, controlling the holding company Tata Sons and ultimately influencing all the group's operations. They play a crucial role in the group's philanthropic activities and strategic decisions.
Why did the board decide to reappoint trustees for life?
The board decided to reappoint trustees for life to preserve unity and avoid selective agreement on decisions, which could lead to internal conflicts and instability.
What is the role of the Shapoorji Pallonji Group in this saga?
The Shapoorji Pallonji Group, the second-largest shareholder in Tata Sons, has been pushing for the listing of Tata Sons to unlock the value of their stake and address their financial challenges.
Why did Tata Sons request a review of its 'Upper Layer NBFC' classification?
Tata Sons requested a review to avoid the mandatory listing, which would expose them to market volatility and stricter regulations, potentially limiting their autonomy and philanthropic activities.
What was the outcome of the government's intervention in the Tata Trusts saga?
The government's intervention led to Mehli Mistry withdrawing his legal caveat and resigning from Tata Trusts, restoring a semblance of stability to the board.
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