Darius Khambata Steps Down From Key Tata Trusts Citing Governance Rift and Sullied Reputation — November 2, 2026

In a major governance development within India's largest conglomerate, senior advocate Darius J. Khambata has declined reappointment as a trustee of the two primary philanthropic bodies governing the group—the Sir Dorabji Tata Trust (SDTT) and the Sir Ratan Tata Trust (SRTT).

In a letter dated November 2, 2026, addressed to Tata Trusts Chairman Noel Tata and Chief Executive Officer Siddharth Sharma, Khambata stated that he would not offer himself for another term, citing the imperative to preserve his professional independence amid escalating internal conflicts over the conglomerate's future and holding structure.

'A Day That Will Live in Infamy'

Khambata offered a searing assessment of recent decisions at the holding company level, taking direct aim at the Tata Sons board meeting held on September 17, 2026. In his letter, Khambata characterized the September 17 proceedings as a day that would "live in infamy," writing that the actions taken had "sullied Tata Sons' reputation" and "imperilled the image of corporate India".

Khambata noted that "no spin doctoring can mask what happened," pointing out that recent boardroom maneuvers had overtaken previous consensus, including resolutions that had originally supported a third term for Tata Sons Chairman N. Chandrasekaran.

Expressing deep concern over an emerging rift at the very top of the group's leadership, Khambata voiced distress over the divide between Noel Tata and N. Chandrasekaran. Invoking the Mahabharata, Khambata quoted Lord Krishna: "Whatever a great person does, common people follow. Whatever standards he sets by example, the world pursues," urging both leaders to place institutional stewardship above individual frictions.

Opposition to Public Listing and SP Group Liquidity

Khambata used his departure letter to reaffirm his longstanding opposition to taking Tata Sons public, terming any potential public listing as "existential" for Tata Trusts. He noted that he had originally warned against a public listing during a May 28, 2025 meeting and drafted the unanimous resolution passed by trustees on July 28, 2025, opposing the move.

However, Khambata emphasized that remaining unlisted must be balanced with fairness toward minority stakeholders:

• Shapoorji Pallonji (SP) Group Exit: Opposition to an initial public offering (IPO) must be accompanied by a viable liquidity mechanism to allow the SP Group, which holds an 18.37% stake in Tata Sons, to sell part or all of its holding and recover its capital.
• Regulatory Compliance with RBI: Khambata noted disappointment with engagements involving the Reserve Bank of India (RBI), pointing out that efforts had failed to demonstrate convincingly how Tata Sons could adopt the transparency and disclosure standards expected of a systemic entity without going through an IPO.

Independence and Ratan Tata's Legacy

Khambata, who had returned to the trusts' boards in November 2023 at the personal invitation of the late Ratan Tata, stated that legally extending his tenure would require seeking the formal consent of all co-trustees. He affirmed that actively canvassing for fellow trustees' assent would compromise his objectivity, particularly given differences of opinion with Noel Tata and other board members.

Recalling conversations with Ratan Tata, Khambata remarked that the late patriarch had instructed him to always do what was right regardless of the personal cost. Defending past trustee actions—such as the September 11, 2025 move to withhold the renewal of Vijay Singh's nominee directorship on Tata Sons to safeguard the trusts' statutory veto rights—Khambata concluded by leaving it to "the judgement of history" whether those entrusted with the Tata model possess the statesmanship to preserve its legacy.

With the next Tata Sons board meeting scheduled for November 26, 2026, Khambata's exit brings long-simmering friction over corporate governance, regulatory status, and group capital structure into sharp focus for Indian capital markets and institutional investors alike.