'Perhaps we are now in different era': Vijay Singh's reappointment and unfolding power struggle at Tata Trusts

Another key point of contention is the listing of Tata Sons. The RBI has mandated listing under its ‘upper-layer’ non-banking financial company (NBFC) rules.

A recent vote within Tata Trusts, reportedly opposing the reappointment of trustee Vijay Singh as a nominee director on the board of Tata Sons, has highlighted growing divisions within the $180-billion conglomerate, The Indian Express reports.

Vijay Singh, a trustee and vice-chairman of Tata Trusts, described putting issues to a vote as "unprecedented" for the organisation. Speaking to The Indian Express, Singh said, "The idea of voting on any matter in Tata Trusts is unprecedented. Ratan Tata was very firm that there should always be consensus and unanimity on issues… and perhaps we are now in a different era."

The vote reportedly involved a bloc of four trustees, led by Mehli Mistry, opposing Singh's reappointment to Tata Sons, the group's principal holding company. Tata Trusts collectively hold a 66 percent stake in Tata Sons, making them the largest shareholder in the conglomerate.

Singh, who did not attend the meeting, told The Indian Express, "Since I wasn't there, the question of my voting for or against anyone doesn't arise. As is common knowledge now, four trustees did vote against my continuance on the Tata Sons board for reasons that were apparently not spelt out."

A former Defence Secretary from the 1970 IAS batch, Singh joined Tata Trusts in 2018 at Ratan Tata's invitation. He had previously served on the Tata Sons board from 2013 until stepping down in 2018 on reaching the retirement age of 70, returning in 2022 after Ratan Tata allowed more flexibility on board tenure. While Tata Sons' official website still lists him as a director, The Indian Express reports that Singh has since resigned following the blocked reappointment.

The disagreement has raised questions about governance and cohesion within the group, especially as Tata companies have collectively lost an estimated $93 billion in market value over the past year, reflecting investor caution, The Indian Express notes.

At the centre of the conflict are differences over board appointments and the long-debated listing of Tata Sons. One faction, led by Tata Trusts chairman Noel Tata, along with trustees Venu Srinivasan and Vijay Singh, advocates for continuity, discretion, and consensus-driven management.

The opposing faction, including Mehli Mistry, former Citibank CEO Pramit Jhaveri, Jehangir Hospital chairman Jehangir H C Jehangir, and senior counsel Darius Khambata, argues that Tata Trusts has become top-heavy and opaque, and that governance practices should be updated to align with modern accountability standards.

The Indian Express reports that the Mistry group opposed three candidates proposed by Noel Tata for vacant Tata Sons board positions, while Mistry's own nomination was reportedly blocked by Noel Tata and Srinivasan. Mehli Mistry is also the first cousin of the late Cyrus Mistry, who had previously contested the chairmanship of Tata Trusts.

Another key point of contention is the listing of Tata Sons. The Reserve Bank of India (RBI) has mandated listing under its "upper-layer" non-banking financial company (NBFC) rules. Tata Sons has sought deregistration as an NBFC, arguing it is not engaged in lending, while the Shapoorji Pallonji Group, holding an 18.37 percent stake, has pushed for listing to unlock value amid financial pressures.

When contacted, a Tata Trusts spokesperson told The Indian Express, "At this stage, Tata Trusts does not have any further response to share."

Analysts quoted by The Indian Express warn that prolonged internal disagreements could affect top-level decision-making within the conglomerate, with potential implications for India Inc, as the 29 listed Tata companies together account for more than $328 billion in market capitalisation.