Mumbai, Nov 3: Industrialist Mehli Mistry has filed a caveat before the Mumbai charity commissioner after his reappointment as a trustee of Tata Trusts was rejected last week, ensuring that no change to the Trusts’ board can be finalized without giving him an opportunity to be heard.
According to multiple reports, Mistry who was inducted into the Trusts’ boards in October 2022 and also serves as the executor of Ratan Tata’s will has sent notices to all trustees of the Sir Dorabji Tata Trust, Sir Ratan Tata Trust, and the Bai Hirabai Jamsetji Navsari Charitable Institution, including chairman Noel Tata.
The Sir Dorabji Tata and Sir Ratan Tata Trusts together hold a majority stake in Tata Sons, the holding company of the Tata Group.
Under the Maharashtra Public Trusts Act, any change in the board’s composition must be reported to the charity commissioner within 90 days. Filing a caveat ensures that Mistry is notified and heard before any change report is approved.
In this case, the Trusts have not yet filed the change report, suggesting that Mistry’s move is preemptive to protect his position once the process begins.
Mistry’s reappointment required unanimous consent from all trustees. However, in a circular dated October 23, chairman Noel Tata, along with vice chairmen Venu Srinivasan and Vijay Singh, opposed his continuation. Three trustees supported Mistry’s reappointment, while Jimmy Tata abstained.
Mistry is likely to rely on a unanimous resolution passed on October 17, 2024, which stated that every trustee would automatically become permanent upon the expiry of their existing tenure. Senior counsel HP Ranina told The Times of India that this resolution is binding unless rescinded unanimously.
However, a trustee who opposed Mistry’s reappointment argued that the 2024 resolution cannot override fiduciary duties or due process. Legal experts noted that Mistry would need to prove that his removal was mala fide or violated the trust deed.
The charity commissioner’s authority is limited to confirming whether the reported change is genuine. An inquiry may be initiated only in case of a deadlock or allegations of mismanagement.
If no objections are raised within 30 days of the change report’s submission, the new board structure becomes final. However, if objections are filed, the commissioner may conduct a formal inquiry before issuing approval.