Mehli Mistry Launches New Attack on Directors of Tata Trusts

Former Sir Dorabji Tata Trust (SDTT) trustee Mehli Mistry has called on the Maharashtra Charity Commissioner (MCC) to determine that commissions earned by directors nominated by Tata Trusts on the board of Tata Sons should be returned to the charitable trusts. Mistry argues that these directors, due to their positions, act in a fiduciary capacity and should not retain any financial benefits personally.

Mistry contends that the directors hold their roles because of the trusts’ shareholding in Tata Sons. He cites section 88 of the Indian Trusts Act, which states that a fiduciary who gains a financial advantage must account for it to the beneficiary. “The issue of taking commissions by the nominated director of the trust ought to be adjudicated by the charity commissioner,” Mistry stated.

To support his position, Mistry referenced practices in public sector enterprises where representatives are prohibited from accepting commissions when acting in their official capacities. He emphasized that such earnings should be accounted for in favor of the institution rather than retained as personal income. Mistry believes this obligation is particularly important for public charitable trusts, as trustees are responsible for assets dedicated to public and charitable purposes.

Governance Concerns Raised

Mistry’s demand is part of an ongoing legal dispute with SDTT and is linked to his exit from the trust. He asserts that the case raises significant governance issues regarding the management of trust property. “Whether commissions earned by reason of the Trusts’ shareholding (in Tata Sons) belong to the Trusts, whether conflicts of interest were declared… are therefore questions about the administration of SDTT and its property,” he explained.

He also pointed to potential conflicts of interest involving current board members. Mistry highlighted the engagement of former Jaguar Land Rover design chief Gerry McGovern by Venu Srinivasan for TVS Motor-owned Norton Motorcycles, and Noel Tata’s involvement in decisions regarding capital support for Tata International, where he serves as chairman. In 2025, Mistry was removed from his position as trustee after Noel Tata, Srinivasan, and another trustee blocked his extension, a move Mistry claims was illegal.