Industrialist Mehli Mistry has submitted a caveat petition to the Maharashtra Charity Commissioner, seeking the opportunity for a “fair hearing” prior to any actions taken to remove him from his position as a trustee of Tata Trusts. This caveat serves as a preemptive legal measure that prevents the court or Charity Commissioner from making decisions against him without allowing him to present his defense. Mistry reportedly has the backing of Ratan Tata’s half-sisters in this matter.
Mistry’s challenge may complicate the Noel Tata camp’s plans, leading to potential legal disputes. Ratan Tata’s half-sisters, Shireen and Deanna Jeejeebhoy, are reportedly backing Mistry and have publicly expressed their dissatisfaction with recent developments. Notably, Darius Khambata, a senior lawyer and acquaintance of Mistry, alongside Shireen, Deanna, and Mistry himself, serves as an executor of Ratan Tata’s will. Khambata, who cast his vote for Mistry, holds positions on the boards of both the Sir Ratan Tata Trust and the Sir Dorabji Tata Trust.
Jimmy Tata, brother of Ratan Tata and a board member of Sir Ratan Tata Trust, has not taken a clear stance on proposals regarding Tata companies. Recently, he did not vote on the renomination proposal of Mehli Mistry, and historically, he has abstained from voting on all resolutions concerning Tata companies, including the controversial removal of Cyrus Mistry in 2016-17.
Copies of a caveat have been served to all trustees of Tata Trusts, including chairman Noel Tata. This filing reflects Mistry’s intention to contest what he deems “an unjust and procedurally flawed decision” concerning his position on the board of Tata Trusts, which holds a 66 percent majority stake in Tata Sons, the group’s holding company.
Legal experts indicate that Mistry’s filing of a caveat positions him to challenge both the procedure and rationale behind his removal. This action suggests the possibility of a broader legal dispute, which may bring into question matters of governance, transparency, and trustee rights within the Trusts.
Mistry’s removal as a trustee follows a meeting on October 28, where three trustees voted against his reappointment. Supporters of Mistry include Pramit Jhaveri, Khambata, and Jehangir HC Jehangir. Formal changes in the Trusts require the Charity Commissioner’s approval, as the trusts are registered as public charitable entities. Upon notification to the Commissioner by Tata Trusts, the process of Mistry’s removal will begin. However, Mistry’s caveat demands that he be heard before any action is taken, preventing unilateral decisions by the Trusts without allowing him to defend himself.
According to the Maharashtra Public Trusts Act, the Charity Commissioner has the authority to suspend or remove trustees of a public trust if specific conditions are unmet. The recent exit of Mistry has raised questions about the power dynamics at Tata Trusts, with speculation that Noel Tata is consolidating influence following his appointment as chairman. Mistry, associated with Ratan Tata and a cousin of former chairman Cyrus Mistry, played a significant role in the Trusts. Tata Trusts will now inform the Charity Commissioner of their board resolution, enabling Mistry to contest the removal or challenge the board’s decision legally.
Earlier last week, Tata Trusts reappointed Venu Srinivasan as a lifetime trustee, supported by Mehli Mistry and other trustees. They stipulated that future trustee renewals must be unanimously approved; otherwise, their approvals would be withdrawn. This contrasts with the past practice during Ratan Tata’s tenure, where decisions were based on consensus, now facing internal disagreements. Mistry may argue that a resolution from October 17, 2024, grants him a permanent trustee position, while the Noel Tata camp believes this resolution does not imply a perpetual appointment, insisting on periodic reviews for trustee terms.
Noel Tata, Srinivasan, and Singh reportedly disregarded Mistry’s proposed conditions, leaving unclear whether Mistry will retract his conditional approval for Srinivasan as a trustee or seek legal action against his dismissal. Traditionally, under Ratan Tata’s leadership, trustee selection relied on consensus. Currently, both parties remain silent, but Mehli Mistry appears determined, as indicated by the filed caveat.
