Rift widens in Tata Trusts; trustee Vijay Singh says he has 'no idea' about effectiveness of Chandrasekaran’s reappointment resolution

As the boards of Tata Trusts—the promoter of the Tata Group holding company Tata Sons—prepare to meet on Friday (May 8), divisions within the umbrella charitable organisation have come sharply into the open, with trustees taking visibly different positions on the matter including the reappointment of N. Chandrasekaran as chairman of Tata Sons, as well as on the potential listing of the holding company.

Although trustees of the two key trusts—Sir Ratan Tata Trust (SRTT) and Sir Dorabji Tata Trust (SDTT)—had passed a resolution in July 2025 supporting Chandrasekaran’s reappointment for another term as chairman of Tata Sons, trustee Vijay Singh, who serves on both boards, has now indicated uncertainty over whether that resolution still stands.

“I have no idea. You should ask the chairman,” Singh said in a telephone conversation when asked about the validity of the resolution.

Noel Tata is the chairman of Tata Trusts, while Venu Srinivasan (chairman of the TVS Group) is the vice-chairman. In addition to former Defence Secretary Vijay Singh, lawyer Darius Khambata is a common face across both the major trusts. SRTT also has Ratan Tata’s brother Jimmy Tata and Jehangir H.C. Jehangir as trustees. SDTT has Noel’s son Neville Tata and Titan veteran Bhaskar Bhat as trustees. Noel Tata and Venu Srinivasan represent the trusts on the board of Tata Sons, where they hold veto power in the holding company’s decision-making.

According to people familiar with the matter, Noel Tata had raised objections to Chandrasekaran’s reappointment at the last Tata Sons board meeting, despite the Tata Trusts board approval. Noel sought clarity on several critical issues, including efforts to retain Tata Sons’ private company status, the turnaround of newer businesses—primarily Tata Digital and Air India—and progress on negotiating the exit of the Shapoorji Pallonji Group from Tata Sons’ shareholding.

However, other board members, including Tata Trusts nominee Venu Srinivasan, reportedly backed Chandrasekaran’s continuation. The Tata Sons board eventually deferred the matter, avoiding a vote on the issue.

Earlier, Srinivasan had reiterated that the resolution endorsing a third term for Chandrasekaran remained in force. Vijay Singh had also taken the same position.

Sources aware of the developments said the agenda for Friday’s Tata Trusts meeting does not formally include either Chandrasekaran’s reappointment or the Tata Sons listing. However, trustees are expected to raise these contentious matters during discussions. “The agenda as far as we know is routine annual budget approval, besides discussions on remunerations among others,” said one source.

Last year, while approving another term for Chandrasekaran, the board of Tata Trusts had tasked the group chairman with engaging with the Reserve Bank of India to secure Tata Sons’ exit from the ‘Upper Layer’ non-banking financial company (UL-NBFC) category and ensure regulatory compliance. Under current rules, UL-NBFCs are required to pursue stock market listing.

Noel Tata has maintained that Tata Sons should remain a privately held company, arguing that a public listing could bring external shareholder influence into the group’s long-term strategic decisions and its philanthropic mission. The late Ratan Tata also had the same view that Tata Sons should stay private.

Another important issue likely to come up in the Trust meeting is the review of nominee directors appointed by the Sir Ratan Tata Trust on the Tata Sons board. A resolution passed by Tata Trusts in October 2024 stipulates that nominated directors on Tata Sons board who reach the age of 75 must be reviewed annually. Vijay Singh (78) had failed to get his nomination renewed in the Trusts meeting last year and he had to step down from Tata Sons board. Venu Srinivasan, nominee director, will turn 75 in December. It is to be seen whether he will get extension or replaced on Tata Sons board.

The Tata Trusts board meeting also comes against the backdrop of a legal challenge in the Bombay High Court seeking to block Friday’s meeting. The petition argues that the current board of the Sir Ratan Tata Trust is unlawful and should be restrained from taking decisions.

The plea alleges violation of Section 30A(2) of the Maharashtra Public Trusts Act, 1950, which caps the number of perpetual or lifetime trustees in public charitable trusts at 25% of the board where the trust deed does not specifically provide for such appointments.

According to the petitioner, SRTT has breached this threshold, with three of its six trustees—Noel Tata, Jimmy Tata and Jehangir Jehangir—serving as perpetual trustees, accounting for 50% of the board. The remaining trustees—Venu Srinivasan, Vijay Singh and Darius Khambata—serve fixed terms. SRTT reportedly filed a caveat through Cyril Amarchand Mangaldas in the court on Monday, ensuring it is heard before any order is passed.

In another twist, Venu Srinivasan and Vijay Singh have been voted out of the Tata Education and Development Trust (TEDT), an associate trust, after fellow trustee Mehli Mistry opposed their reappointment.

Earlier, Srinivasan, Vijay Singh and Noel Tata had voted against the reappointment of Mehli Mistry—considered a close confidant of Ratan Tata—to the boards of SDTT and SRTT in October.

Tata Trusts collectively hold a controlling stake of around 66% in Tata Sons, giving the ongoing governance battle significant implications for the future direction of India’s most diversified conlgomerate.