‘Painful to see what’s happening…’: Ratan Tata’s confidante amid Tata Trusts tussle

Noshir Sonawala, a supporter of the Tata Group and a trusted confidant of the late Ratan Tata, has broken his silence amid the row between the Tata Trust trustees. He also urged an immediate solution to the differences.

“It is painful to see what is happening at the Tatas, a group to which I have devoted almost my entire career… I hope the trustees of the Tata Trust resolve their issues,” Sonawala told the Times of India.

Asked if he could act as a mediator amid the conflict, the former Tata Sons deputy chairman and former trustee of Tata Trusts told the newspaper: “I am now an outsider, having stepped down from my role several years ago… I read about their disagreements in the newspapers. What is the real issue? It is a 157-year-old group.”

Sonawala, who joined the group in 1968, resigned from Tata Trusts in 2019, after retiring from Tata Sons in 2010. He was instrumental in several of the group’s landmark financial initiatives, including the Rs 300-crore rights issue in 1995.

Conflict in Tata funds

The Tata Trusts are facing an internal dispute as the trustees prepare to take a decision on the reappointment of Mehli Mistry, who is the current trustee of both Sir Dorabji Tata Trust and Sir Ratan Tata Trust. The decision, expected Monday, comes amid a contentious renewal vote that highlighted divisions within the trusts’ leadership.

Together, the two funds have a controlling stake of 51 per cent in Tata Sons, the holding company of the Tata group, making the outcome significant for the overall governance of the group. Reports suggest that the lack of consensus, which has historically been a core principle of Tata Trusts, is creating uncertainty within the organisation.

On Friday, a resolution seeking reappointment of Mistry was moved by Tata Trusts CEO Siddharth Sharma. Trustees Darius Khambatta, Pramit Jhaveri and Jehangir HC Jehangir reportedly supported the proposal, but unanimous approval was not reached. This lack of full support departs from established tradition, exposing further cracks in the Fund’s internal cohesion. Multiple sources familiar with the matter indicate that this development could have long-term implications for how the trusts manage their leadership appointments in future cycles.

The internal debate over Mistry’s renewal stands out because decisions at Tata Trusts typically require full approval among the trustees. While the Dorabji Tata Trust Instrument of 1932 allows for majority decisions, the practice of seeking consensus has been an informal rule hitherto. The departure from this standard follows a similar incident in September, when a majority decision was used to remove a trustee from the Tata Sons board, raising questions about the evolving governance standards of trusts compared to their historical norms.

In addition, reports indicate that the disputes stem from broader tensions between some trustees. Mistry reportedly clashed with other senior figures and made his support for their reappointments conditional on agreeing to renew his appointment.