New Delhi, Oct 28 (IANS) A rift in the Tata Trusts has intensified as its office holders Venu Srinivasan, Noel Tata, and Vijay Singh have rejected businessman Mehli Mistry’s renewal for life trusteeship, a report said on Tuesday.
Mistry is likely to explore legal options to get renewal for life trusteeship, NDTV Profit reported, citing sources.
Noel Tata chairs the philanthropic trust, while Vijay Singh and Venu Srinivasan act as vice chairmen.
The report said that the ouster of Mistry could be challenged based on the October 24 resolution passed by the Tata Trusts, which gives a life term to the present trustees.
“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 said.
Tata Trusts has been embroiled in an internal conflict over the nomination of a director to the Tata Sons Board.
“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,” the report quoted Shriram Subramanian, managing director and founder of InGovern, as saying.
Tata Trusts — the charitable arm that controls about 66 per cent of Tata Sons — has been recently mired in internal disagreements.
The dispute reportedly involves Board appointments and governance matters, creating two factions: One led by Noel Tata and another by four trustees close to Mehli Mistry, who is associated with the Shapoorji Pallonji family.
This internal rift became visible after the controversy surrounding the reappointment of Vijay Singh to the Tata Sons Board, which was rejected.
Meanwhile, shares of Tata Group companies have declined by over Rs. 7 lakh crore in market value, or 21 per cent over the past year after the passing of the group’s patriarch.
–IANS
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