Tata Trusts Trustee Darius J Khambata won’t seek reappointment; says Tata model is under threat - Here's what he said in his letter

Tata Trusts Trustee: Senior advocate Darius J Khambata won't seek reappointment; he has declined as a trustee of the Sir Dorabji Tata Trust and Sir Ratan Tata Trust, citing concerns about trustee independence, the proposed listing of Tata Sons, and governance issues within the Tata group. Darius Khambata defends the September 11, 2025 decision, saying it preserved the Trusts' veto rights for Noel Tata and upheld the principle of corporate democracy and majority shareholder control. He did not wish to seek reappointment, despite both having expressed a desire for him to continue, Khambata said in a letter dated November 2, addressed to Tata Trusts chairman Noel Tata and chief executive Siddharth Sharma. Khambata said he had accepted the original appointments at the invitation of the late Ratan Tata and wanted to maintain his independence as a trustee.

Tata Trusts Trustee Darius J Khambata won’t seek reappointment; says Tata model is under threat - Here's what he said in his letter

Tata Trusts Trustee Darius J Khambata has decided not to seek reappointment. Khambata communicated his decision in a letter to Tata Trusts.

In his letter, Khambata said he did not believe the engagement with the RBI had been meaningful or very successful. He stated that the listing of Tata Sons had always been a strategic decision for shareholders.

He said the Tata model had succeeded precisely because it was not driven by avarice and warned that the model was now being threatened by those ironically citing its success.

Khambata said that decoupling Tata Sons from the trusts was not an objective judgement. He also noted that N Chandrasekaran had said Tata Sons must always remain in sync with Tata Trusts, adding that no fiduciary of the trusts could have taken any other position.

He said the resolution dated July 28, 2025, was drafted and proposed before being passed unanimously. Khambata added that he was the first to caution against the potential listing of Tata Sons and referred to the astounding events of August and September.

September 11 decision protected Trusts' Veto rights, upheld majority shareholder control and corporate democracy, says Khambata

Darius Khambata defended the September 11, 2025 decision, calling it courageous and saying subsequent events had vindicated it.

He said the decision preserved the Trusts' veto rights for Noel Tata, which, under the Articles of Association of Tata Sons, operate through a majority of Trust nominees.

Khambata said recent events had highlighted the importance of the decision. He emphasised that robust corporate democracy must prevent anyone from assuming control against the wishes of majority shareholders.

He described this principle as a fundamental assurance on which India's appeal as an investment destination hinges.

Darius Khambata's term as a trustee of Tata Trusts ends on November 8.