Tata Trusts Boardroom Dispute Undermines $328bn Conglomerate Stability

The Tata Group, a major Indian conglomerate, is currently embroiled in a significant internal power struggle within its controlling philanthropic arm, Tata Trusts, which owns 66% of Tata Sons. This conflict intensified after Chairman Noel Tata and other trustees blocked the reappointment of Mehli Mistry, a close confidant of the late Ratan Tata, whose tenure as trustee ended, sparking divisions and a departure from the group’s traditional consensus-driven governance. Mistry and his allies had earlier voted to remove a key trustee, Vijay Singh, from the Tata Sons board, exacerbating tensions. The rift has drawn government attention, prompting intervention to prevent public legal battles reminiscent of previous disputes in 2016 involving Cyrus Mistry. Experts highlight that Tata’s unique ownership structure, combining philanthropic and commercial objectives, complicates governance and control over the conglomerate’s strategic direction. This internal discord comes at a critical time as the group faces business challenges and seeks growth in new sectors like semiconductors, electric vehicles, and reviving Air India.