Noel’s Ascent Likely To Bring Warring Tata And Mistry Families Closer
Mehli stood by Tata when he removed Cyrus Mistry as Chairman of Tata Sons in 2016
As Ratan Tata is not around, there is a ‘tense’ future so far as Mehli is considered. Tata group watchers say that though he was close to Ratan Tata, Mehli was certainly not a material to head the Tata Trusts
With Noel now leading Tata Trusts, there is a hope that a new chapter of reconciliation within the Tata-Mistry families would start. There is a sense of optimism that Noel's able leadership would heal lingering wounds from the past. He is married to Aloo Mistry, daughter of the late Pallonji Mistry and sister of Cyrus. The couple has three children: daughters Leah and Maya, and son Neville
The appointment of Noel Tata, half-brother of Ratan Tata, as the Chairman of the all-powerful Tata Trusts, almost marks curtains for MehliMistry, who was considered a close confidante of RatanTata. After the demise of Ratan Tata, there were strong rumours in the corporate world and in the corridors of power that Mistrycould be the head of Tata Trusts. Mehli is the estranged first cousin of former Tata Group chairperson, late Cyrus Mistry. A director of the MeherjiPallonji Group, MehliMistry was appointed as a non-executive trustee of the Sir Ratan Tata Trust, its allied Tata Education and Development Trust and the Sir Dorabji Tata Trust in November 2022. Those were the days when Ratan Tata called all the shots in Tata Trusts.
It may be recalled that MehliMistrystood by Ratan Tata when he (Tata) removed Cyrus Mistry as chairman of Tata Sons in 2016. The acrimonious spat between the two created a tremendous amount of media attention. Mehli’s name also surfaced during the acrimonious dispute. Some say that Mehli played a behind-the-scenes role in orchestrating tensions that eventually led to Cyrus Mistry’s removal from the Tata House. When Ratan Tata and Cyrus Mistry were on loggerheads, Mehli was attacking Cyrus from all the possible fronts. That strengthened their ties.
According to Tata group watchers, Mehli’s role within the Trusts has increased significantly in recent years. Therefore, his name was in the air to become head of Tata trusts. However, he lost the race.
Despite being a frontrunner to lead the Tata trusts, Mehli could not become the head of Tata Trusts. Reportedly, Noel’s appointment to the top post was a unanimous decision. Noel’s formidable reputation as a successful and non-controversial businessman played a decisive role in his selection.
He began his career at Tata International, the group's arm for products and services offered abroad. In June 1999, he became the managing director of the Group's retail arm Trent, which was founded by his mother. By this time, Trent had acquired the department store Littlewoods International and changed its name to Westside. Tata developed Westside, turning it into a profitable venture. In 2003, he was appointed the director of Titan Industries and of Voltas.
On the other hand, Mehli was facing some serious allegations in business dealings. One major controversy involved dealings with Tata Power with allegations being that his firm had been awarded lucrative long-term dredging and shipping contracts by Tata Power without going through the proper tender process. However, Mehli has always denied these allegations.
Even Tata Sons has refuted allegations that Mehli, a director of the MeharjiPallonji Group, and associates had benefited from contracts allegedly awarded to him by Tata Power without competitive bidding. Mehli’s mother and Cyrus’s mother are sisters, while their fathers are also first cousins.
Mehil, however, said that the allegation that he was behind the ouster of Cyrus from head of Tata Sons was untrue. Mehli was accused of calling Cyrus Mistry a weak leader during the tumultuous boardroom battle. This comment reflected the deep animosity between Mehli and Cyrus.
Cyrus Mistry’s family, through their holding company ShapoorjiPallonji, owns an 18.37 per cent stake in Tata Sons, making them the second-largest shareholder after Tata Trusts. Well, the spat between Mehli and Cyrus was not just personal fallout but a public and legal battle that unfolded within the Tata Group, resulting in years of litigation and bad blood. Mehli’s alleged role in this feud raises questions about his suitability to lead Tata Trusts, particularly given the bitter history between him and the Mistry family. Even though they were such close relatives, they were not on talking terms.
With Noel now leading Tata Trusts, there is a hope that a new chapter of reconciliation within the Tata-Mistry families would start. There is a sense of optimism that Noel's able leadership would heal lingering wounds from the past. He is married to AlooMistry, daughter of the late PallonjiMistry and sister of Cyrus. The couple has three children: daughters Leah and Maya, and son Neville.
Meanwhile, there is a question mark on the future role ofMehli in Tata group despite his deep ties with Ratan Tata and experience within the Tata Trusts. As Ratan Tata is not around, there is a ‘tense’ future so far as Mehliis considered.
Tata group watchers say that though he was close to Ratan Tata, Mehliwas certainly not a material to head the Tata Trusts.
Finally, as the Tata Group moves forward under the watchful eyes of Noel Tata, there is all-round hope and anticipation that it would grow thick and fast.
(The author is Delhi-based senior journalist and writer. He is author of Gandhi's Delhi which has brought to the forth many hidden facts about Mahatma Gandhi)
