THE GOVERNMENT should consider one or two trustees on the board of Tata Trusts “to restore order and credibility”, according to some trustees.
“There is a good case for the government to appoint one or two trustees of high standing like former judges or reputed scientists to restore order and credibility,” a trustee, who did not wish to be named, told The Indian Express.
Pointing to a culture where unanimity and consensus was the norm in decision-making, the trustee said, “RNT (Ratan Tata) would be turning in his grave. Mehli Mistry is now Noel’s (Noel Tata, the current chairman of Tata Trusts) foe but they have used each other in the past and may do so again,” the trustee said, indicating a deepening rift within Tata Trusts.
These demands come close on the heels of former trustee of Tata Trusts Mehli Mistry approaching the Maharashtra Charity Commissioner now seeking the appointment of an administrator to run the Sir Dorabji Tata Trust (SDTT). He was voted out of the Tata Trusts by their boards last November. In his filing, he has also highlighted alleged governance failures, contested board decisions and possible conflicts of interest.
Earlier, Mistry had challenged the eligibility of Venu Srinivasan and another trustee Vijay Singh (former defence secretary) on the board of Bai Hira Bai Jamsetji Tata Navsari Charitable Institution, citing they were not Parsis. Srinivasan quit the trust citing commitments to other businesses; Singh did not comply.
Questioning the manner in which Srinivasan was allegedly forced out, the trustee said this had happened for the first time in the history of the Tatas.
But Tata Trusts CEO Siddharth Sharma said that “the Trustees have spoken in one voice in ensuring that the Trusts perform their core functions efficiently and effectively, and continue to move the needle forward on social change.” “The observations made shall be duly responded to at the appropriate forum,” he said.
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Denying claims of the trustee that Tata Trusts were not functioning well, Sharma told The Indian Express that unified leadership among Trustees, along with strong systems, dedicated personnel and a deep commitment to public service, enables the Trusts to carry out their core functions effectively and sustain increased philanthropic spending.
“For the record, we have ended FY25-26 with a philanthropic spend of Rs 1,586 crore, an increase of 270% over the last three years, and are on course to deliver approximately Rs 1,900 crore in the current fiscal. This kind of increase in philanthropic spending is not possible in the absence of robust structures, systems & processes, dedicated personnel and, above all, a passion and commitment to public service,” Sharma said.
In his latest petition, Mistry has questioned the legitimacy of the current SDTT board, arguing that certain trustees may not meet eligibility criteria outlined in the trust deed, including requirements related to religion and residency. He claims that decisions made by such a board, particularly those involving governance and appointments, may lack legal validity.
SDTT is the largest shareholder in Tata Sons, holding a 28% stake, followed by the Sir Ratan Tata Trust with 24%, while other Tata trusts collectively own an additional 14%. Together, SDTT and the Sir Ratan Tata Trust control around 66% of Tata Sons, the Tata Group’s holding company, underscoring the broader significance of the dispute.
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Observers said the unity and cohesion within Tata Trusts have weakened. During Ratan Tata’s tenure, decisions were typically made through consensus, but that approach seems to have eroded. Mehli Mistry’s reappointment was blocked by other trustees in October 2025, and in September 2025, Vijay Singh was voted out of a board position at Tata Sons.
More recently, both Venu Srinivasan and Vijay Singh have pushed for listing Tata Sons, apparently against Noel Tata’s wishes. The listing of Tata Sons, the principal shareholder of Tata group of companies, on the stock exchanges has become a hot issue in the ongoing Tata group saga. Tensions have surfaced within Tata Trusts and Tata Sons — two major institutions in the Tata family — as disagreements over strategy, regulatory challenges and governance continue among trustees. At the centre of the debate is a divide on the group’s future direction, with some trustees advocating for listing to unlock capital for expansion, while Noel Tata remains opposed to the move. Concerns are mounting over rising losses in several unlisted entities, raising questions about financial sustainability and capital allocation.
