Darius Khambata Announces Departure from Tata Trusts, Emphasizes Cost of Independence

Darius Khambata, a key ally of Tata Trusts chairman Noel Tata, will step down from the Sir Dorabji Tata Trust (SDTT) and Sir Ratan Tata Trust (SRTT) when his term concludes on November 8. In a letter dated November 2, Khambata expressed his sadness over the growing divide between Noel Tata and N Chandrasekaran, chairman of Tata Sons, which is majority-owned by the two trusts. Despite requests for him to remain, Khambata stated he would not seek reappointment, citing the need for independence.

Khambata’s departure comes at a critical time for the trusts, which will now have five trustees at SDTT and four at SRTT. The Maharashtra Charity Commissioner has restricted SRTT from altering its board while investigating alleged breaches of public trust law. Consequently, SRTT cannot appoint new trustees or renew existing terms. At SDTT, unanimous approval is required for reappointment, which could lead to contentious discussions among the remaining trustees.

In his exit letter, Khambata defended his previous votes regarding Tata Sons’ listing and boardroom disputes. He claimed to be the first trustee to warn against the listing, labeling it “existential” for the trusts during a May 2025 meeting. He drafted a resolution in July 2025 that opposed the listing while supporting a liquidity solution for minority shareholders. Khambata criticized the lack of meaningful engagement with the Reserve Bank of India regarding Tata Sons’ application for deregistration. He noted that subsequent events had vindicated his stance on these issues.