Tata Trust board meets on October 10 to review healthcare financing amid internal disagreements: report

The board of Tata Trusts, which holds more than 60 percent stake in Tata Sons, will meet on October 10 to review funding allocations for several key healthcare initiatives. The meeting comes at a sensitive time marked by internal friction between the trustees and ongoing government mediation aimed at restoring stability within one of India’s most influential charities.

The agenda, according to a report in Moneycontrol, will mainly focus on approval of new healthcare financing proposals, rather than any changes in Tata Sons’ board representation.

In recent weeks, tensions have risen within the trusts, especially after former Defense Minister Vijay Singh withdrew as a nominated director from the Tata Sons board. However, no proposal to withdraw or replace other nominated directors, including Venu Srinivasan, was made in the current meeting, the report said. “There is no proposal before the Tata Trusts to reconsider or review the position of the board of Venu Srinivasan, the nominated director of the Trusts on the board of Tata Sons,” said a person familiar with the deliberations.

The government’s involvement – through meetings led by Home Minister Amit Shah and Finance Minister Nirmala Sitharaman earlier this week – underscores the strategic importance of the Trusts unit to the broader Tata Group’s governance and stability.

The crux of the dispute lies in disagreements between Chairman Noel Tata and Trustee Mohli Mistry regarding reappointments to the Board and application of Article 121A of the Tata Sons Articles of Association. This clause sets out the fiduciary responsibilities of Tata Trusts in key financial and governance decisions of Tata Sons. The trustees, including Mistry, Pramit Jhaveri, Darius Khambatta and Jehangir HC Jehangir, are said to have raised questions about how the trusts would interpret and enforce their oversight role under the provision.

Although the differences did not lead to an open confrontation, insiders describe the discussions as “philosophical but of great importance”, with secretaries divided between ensuring stronger oversight of the administration and avoiding the perception of undermining Noel Tata’s authority as president. The sources pointed out that “opposition board members are keen to be seen as a stabilizing factor and not as rivals to the chairman’s leadership.” “Their position is that while maintaining fiduciary oversight, governance standards should not be relaxed.”

The government mediation, which also involved Tata Sons chairman N. Chandrasekaran and senior adviser Darius Khambatta, aims to defuse tensions and strengthen collective decision-making within the trusts. Officials have privately expressed concern that the protracted internal dispute could affect the Tata Group’s management in the long term, especially as Tata Sons explores potential restructuring and future public listing plans.

Despite internal disagreements, the Trusts remain focused on their charitable mission, particularly in healthcare, education and rural development. In FY24, Tata Trusts received a dividend of Rs 1,712 crore from Tata Sons, directing the proceeds to philanthropic and social impact programmes.