Fresh from Italy, where Tata Motors announced the acquisition of commercial vehicle maker Iveco, Tata Sons chairman N Chandrasekaran invited Mehli Mistry, the late Ratan Tata's confidant and a trustee of the Tata Education and Development Trust, to Bombay House on Thursday. Coming just days after the two were seen together at the wedding celebrations of Mehli's daughter Laila, the meeting reinforced a belief within Tata circles that relations between the two are improving after more than a year marked by a broader power shift within the Tata Group following the death of Ratan Tata. People familiar with the matter said Chandrasekaran and Mehli, who was voted out of the two principal trusts that hold majority in Tata Sons by Noel Tata and others, discussed issues that had affected their ties.
Mehli's challenge against his removal is pending before the Maharashtra Charity Commissioner (MCC). Mehli and Chandrasekaran's conversation last week was focused on rebuilding trust and restoring a working equation. Mehli later left for Dubai, with both sides appearing keen to move beyond a difficult period in one of Tata Group's most significant internal relationships. For much of the past decade, Mehli and Chandrasekaran were regarded as allies. After the dramatic ouster of Cyrus Mistry as chairman of Tata Sons in 2016, Mehli played a key role in the legal fight that followed between Cyrus and Ratan Tata. When Ratan Tata had to choose a successor, he picked Chandrasekaran, assisted by Mehli. Mehli later backed Chandrasekaran's second and third terms as chairman of Tata Sons. The third term, however, became contentious after Noel Tata, who succeeded Ratan Tata as chairman of Tata Trusts, opposed Chandrasekaran's reappointment. Mehli and Chandrasekaran's relationship survived differences in personality and style. Those who know Mehli describe him as intensely loyal, fiercely independent and refreshingly blunt. Friends admire his willingness to say in a room what others prefer to whisper outside it. Critics point to a temperament that can run ahead of diplomacy. The redeeming feature, according to people who have worked closely with him, is that his anger rarely lingers. Chandrasekaran is a different kind of leader. Publicly measured and understated, he has cultivated the image of a consensus-builder since arriving at Bombay House. Yet colleagues say beneath that calm exterior lies a highly competitive executive with sharp political instincts and an acute understanding of institutional power. Then came the post-Ratan Tata era. Ratan Tata's death in Oct 2024 altered the balance of influence within Tata Trusts. Disagreements that had previously been settled privately soon surfaced within the trusts. Mehli and fellow Tata Trusts trustees Darius Khambata, Pramit Jhaveri and Jehangir Jehangir argued that information on Tata Sons covered under Article 121 of the company's Articles of Association had not been shared with them, limiting their ability to take informed decisions. The four trustees voted Vijay Singh off the Tata Sons board. Concerns about the emerging situation prompted a visit to Delhi by Noel, Tata Trusts vice-chairman Venu Srinivasan, Khambata and Chandrasekaran, who briefed senior government officials on governance issues within the trusts. Mehli, who was inducted into Sir Dorabji Tata Trust (SDTT) and Sir Ratan Tata Trust (SRTT) by Ratan Tata and remained one of his most trusted advisers, increasingly found himself at odds with the emerging power structure. He was eventually voted out of the two trusts by Noel, Srinivasan and Singh, who is also a vice-chairman of the trusts. Among the relationships most affected was Mehli's equation with Chandrasekaran. Differences emerged over how developments within the trusts were characterised and communicated to external stakeholders, with Mehli maintaining that his interventions were driven by governance concerns. Communication between the two subsequently became infrequent. People said Chandrasekaran later made efforts, through intermediaries and directly, to reopen channels of communication with Mehli. Mehli remained a respected figure among trustees, a prominent voice within the Parsi community and an influential presence in discussions concerning the Tata legacy. Mehli has challenged the end of his trusteeship before the Maharashtra Charity Commissioner (MCC), where the matter is pending. He, however, never withdrew his support for Chandrasekaran's stewardship of Tata Sons. In filings before the MCC, he said he had backed Chandrasekaran's reappointment for a third five-year term and was a signatory to the resolution approving it. Chandrasekaran's second term as chairman ends in Feb 2027. His third term is linked to his continuation as a director of Tata Sons, which requires the trusts' approval at the company's annual general meeting (AGM). However, Tata Sons was unable to hold its AGM on Aug 18 after it failed to secure the requisite quorum. The impasse followed restrictions imposed by the MCC on SRTT, preventing it from joining SDTT in nominating a joint representative for quorum purposes.
