New Delhi: A major rift within the Tata Trusts has intensified after its key office holders — Venu Srinivasan, Noel Tata, and Vijay Singh — reportedly rejected the renewal of businessman Mehli Mistry’s life trusteeship, according to a report on Tuesday.

Sources told NDTV Profit that Mistry may explore legal options to challenge the decision and seek renewal of his life trusteeship.

Leadership Divide at Tata Trusts

The Tata Trusts, which collectively hold a 66 per cent stake in Tata Sons, are chaired by Noel Tata, while Vijay Singh and Venu Srinivasan serve as vice chairmen.

The rejection of Mehli Mistry’s renewal comes despite a recent October 24 resolution passed by the Trusts that appeared to allow life terms for existing trustees.

The October 24 Resolution

According to the resolution, “The Trustees recognise that they are all equally responsible, charged with public duty and specifically tasked by Mr. Ratan N. Tata. To this end, they resolve that on the expiry of the tenure of any Trustee, that Trustee will be reappointed by the concerned Trust without any limit being attached to the period of tenure of such re-appointment, and in accordance with law.”

The resolution effectively provided a lifetime reappointment clause, making Mistry’s exclusion particularly contentious.

Impact on Tata Sons and Strategic Decisions

Analysts suggest that this internal divide could have significant implications for Tata Sons, the holding company of the Tata Group.

“The rift at Tata Trusts would impact strategic decisions at Tata Sons. On a day-to-day basis, Tata Sons is unlikely to be disrupted, but strategic decisions will be affected,” said Shriram Subramanian, Managing Director and Founder of InGovern.

Two Factions Emerge

The internal conflict within Tata Trusts reportedly revolves around board appointments and governance issues, splitting the organisation into two camps — one led by Noel Tata, and another by trustees aligned with Mehli Mistry, who is known to have ties with the Shapoorji Pallonji family.

The differences became more pronounced after the controversy surrounding the reappointment of Vijay Singh to the Tata Sons Board, which was rejected.

Meanwhile, the uncertainty surrounding the Trusts has coincided with a sharp decline in Tata Group companies’ market value, with a drop of over ₹7 lakh crore (21%) in the past year following the passing of the group’s patriarch.

The unfolding situation raises questions about the future governance and stability of the Tata Trusts — the philanthropic and controlling arm of one of India’s largest and most respected business conglomerates.