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The board of directors of Tata Trusts, which has over 60 per cent ownership in Tata Sons, will meet on October 10 to review fund allocations for several major healthcare initiatives. The meeting comes at a delicate time marked by internal friction between the trustees and ongoing government mediation aimed at restoring stability within one of India’s most influential philanthropic institutions.
The agenda, according to a report by Moneycontrol, will mainly focus on approving new healthcare financing proposals, rather than any change in Tata Sons’ board representation.
In recent weeks, tensions within the Trusts have intensified, particularly following the withdrawal of former Defense Secretary Vijay Singh as nominated director from the Tata Sons board. However, the report stated that no proposal to remove or replace other nominated directors, including Venu Srinivasan, was tabled in the current meeting. “There is no proposal before the Tata Trusts to reconsider or review the board position of Venu Srinivasan, the Trusts’ designated director on the Tata Sons board,” said a person aware of the deliberations.
The government’s involvement, through meetings led by Home Minister Amit Shah and Finance Minister Nirmala Sitharaman earlier this week, underlines the strategic importance of the Trusts’ unity to the overall governance and stability of the Tata Group.
At the heart of the disagreement are differences between chairman Noel Tata and liquidator Mehli Mistry regarding the re-election of the board of directors and the application of Article 121A of Tata Sons’ articles of association. This clause outlines the fiduciary responsibilities of Tata Trusts in the major financial and governance decisions of Tata Sons. The trustees, including Mistry, Pramit Jhaveri, Darius Khambatta and Jehangir HC Jehangir, are said to have raised questions about how trusts should interpret and enforce their supervisory role under this article.
While the differences have not led to open confrontation, insiders describe the debates as “philosophical but momentous”, with trustees divided between ensuring stronger governance oversight and avoiding the perception of undermining Noel Tata’s authority as chairman. “The dissident board members want to be seen as a stabilizing factor and not as rivals to the president’s leadership,” the sources said. “Their position is that while fiduciary oversight is maintained, governance standards should not be diluted.”
The government mediation, which also involved Tata Sons Chairman N. Chandrasekaran and Senior Counsel Darius Khambatta, was aimed at easing tensions and reinforcing collective decision-making within the Trusts. Officials have privately expressed concern that prolonged internal discord could affect the Tata Group’s long-term governance, particularly as Tata Sons explores possible restructurings and future public listing plans.
Despite internal disagreements, the Trusts remain focused on their philanthropic mission, particularly in healthcare, education and rural development. In FY24, Tata Trusts earned Rs 1,712 crore in dividends from Tata Sons, channeling the profits towards charitable and social impact programs.
