Tata Trusts trustee Darius Khambata resigns, citing concerns over Tata Sons board actions and proposed listing

Darius Khambata wrote to Tata Trusts chairman Noel Tata and chief executive officer Siddharth Sharma to announce that his term as a trustee of the Sir Dorabji Tata Trust will end on November 9 and that he will not seek reappointment. In the four-page letter, he said the Tata model links business and philanthropy and that any separation would undermine both parts of the institution.

He condemned the Tata Sons board meeting held on 17 September 2026, saying the events that day damaged Tata Sons' reputation and the image of corporate India. Khambata questioned whether the board would have acted the same way if the late Ratan Tata were still alive, noting that duties are owed to institutions rather than individuals.

Khambata explained that his decision not to seek reappointment stems from a desire to preserve his independence, which he said would be compromised by requiring consent from all other trustees. He also highlighted his earlier opposition to a proposed public listing of Tata Sons, describing it as an existential issue for the trusts. A resolution he drafted opposing the listing was adopted unanimously on 28 July 2025, though he clarified that opposition does not preclude providing liquidity to existing shareholders such as the Shapoorji Pallonji Group.

The former trustee criticized Tata Sons' engagement with the Reserve Bank of India, stating that it has not demonstrated how the company could meet the transparency and reporting standards of a listed firm. He also referenced a 2025 decision by four trustees, including himself, not to renew Vijay Singh's tenure as a Tata Sons nominee director, describing the move as intended to strengthen opposition to the listing.

Khambata argued that nominee directors appointed by public charitable trusts owe fiduciary duties to those trusts and should not be treated differently from other trustees. He expressed disappointment over growing differences between Noel Tata and Tata Sons chairman N. Chandrasekaran, recalling his support for Noel Tata's appointment as chairman in October 2024.

Concluding, Khambata emphasized that leadership should be based on consensus, wisdom and duty, and he left it to history to judge whether those entrusted with the Tata model will preserve it.