PremiumMehli Mistry, a director of M. Pallonji Group and a businessman seen to be a close associate of chairman Ratan Tata, has been inducted on the boards of two of the largest Tata Trusts, which together own 66% of Tata Sons, the holding company of the sprawling Tata group
MUMBAI : Mehli Mistry, a director of M. Pallonji Group and a businessman seen to be a close associate of chairman Ratan Tata, has been inducted on the boards of two of the largest Tata Trusts, which together own 66% of Tata Sons Ltd, the holding company of the sprawling Tata group, a senior executive familiar with the development said.
Separately, Tata Trusts’ chief executive N. Srinath has resigned, having superannuated 30 months after he assumed the role, the person said, requesting anonymity. The boards of Tata Trusts approved both decisions on Saturday in a special meeting. Candidates are being evaluated to replace Srinath but no clear contender has emerged as yet, the executive said.
The induction of Mehli Mistry, the estranged first cousin of the late Cyrus Mistry, on the board of Sir Ratan Tata Trust and Allied Trusts and the Sir Dorabji Tata Trust and Allied Trusts, offers a view into how Ratan Tata, 84, is entrusting key allies with responsibilities to manage the affairs at the country’s largest philanthropic institutions.
Apart from Noel Tata, Ratan Tata’s half-brother, Pune-based philanthropist Jehangir H.C. Jehangir, former Citibank executive Pramit Jhaveri, Mistry and industrialist Venu Srinivasan are among the trustees who are in their sixties. Ratan Tata and group veterans such as R.K. Krishnakumar and retired bureaucrat Vijay Singh, are in their late seventies and eighties.
An email query sent to a spokesperson of Tata Trusts Sunday evening did not elicit any response till press time.
Tata Sons, the holding company of the Tata group, passed a special resolution in August, with the support of the trusts, amending the articles of association by stipulating that the chairperson of Tata Sons and Tata Trusts will not be the same person. Due to Tata Trusts’ 66% stake in the company, the special resolution passed without much trouble. Thus, the last Tata Trusts chairman to hold the Tata Sons chairmanship would be Ratan Tata. This was done to ensure an arms-length relationship and professionalism when India’s largest conglomerate makes business decisions. The involvement by the trusts will be minimal to the extent of three nominee directors present on the Tata Sons board.
Sir Dorabji Tata Trust and Sir Ratan Tata Trust own 27.97% and 23.54%, respectively, in Tata Sons, with smaller affiliated trusts holding 14.32%.
Tata Trusts’ board, comprising of chairman Tata, Singh, Srinivasan, Jhaveri, and Jehangir approved both decisions at the Tata Trusts registered office at World Trade Centre in Cuffe Parade, Mumbai. Noel Tata and Krishnakumar could not attend the meeting as they were travelling, according to the executive cited above.
“Mr. Tata is my mentor. I’ll do whatever he wants me to do. I have to secure his interests at all times," Mehli Mistry told Mint. Mistry was in 2014 named a trustee of Tata Medical Center, which runs a cancer care hospital and research centre in Kolkata.
Mistry’s induction comes eight months after Noel Tata joined the board of Sir Dorabji Tata Trusts in February. Noel was inducted on the board of Sir Ratan Tata Trusts in 2019, and at the time of the appointment, people close to the Trusts said it was part of succession planning.
In addition to Sir Dorab Tata Trusts and Sir Ratan Tata Trusts, Mehli was also inducted on the board of Tata Education and Development Trusts, another key trust in the group.
Mehli Mistry is the first cousin of the late Cyrus Mistry, with whom he had a fractious relationship that worsened after Cyrus’s fallout with Ratan Tata and the Tata group in 2016. This resulted in Cyrus being ousted as chairman of Tata Sons and its group firms. Mehli, at that time, stood firmly behind Tata and Tata group. At the peak of the fight, Mehli spent ₹200 crore to buy 25 million shares in Tata Power, a move that was then interpreted as a sign of his solidarity with Ratan Tata. He later sold the shares.
Mothers of Cyrus and Mehli are sisters. During the early days of World War II, Mehli’s mother was born in England, where her maternal grandfather resided at the time. Cyrus’s mother was born in Ireland, where the family took refuge. Thus, Mehli holds a British passport, while Cyrus had an Irish one. They also share a paternal connection.
Their fathers were first cousins, whose grandfather started Littlewood Pallonji in 1865 by constructing a pavement in Girgaum in Mumbai. The company made several landmark buildings in Mumbai later on.
Mehli Mistry was caught in the crossfire in the Cyrus Mistry vs Tata group battle. Cyrus, among numerous allegations levelled against Tata Power and Mehli, said Mehli’s firm won shipping and dredging contracts without following the proper tender process. He (Cyrus) also raised questions over an apartment in Bhaktawar in Colaba, which was given to Ratan Tata by Forbes Gokak, a company which then belonged to the Tata group. Cyrus also levelled charges that Mehli transferred non-agricultural land in Alibaug, a sea resort near Mumbai, to Ratan Tata.
In its ruling, the apex court cleared all charges against Tata, Mehli and the Tata group, stating that there was no evidence that Tata gained wealth at the expense of Gokak and that the Bhaktawar deal took place in 2002, but allegations were made in 2016.