Boardroom storm hits Tata Group ahead of Ratan Tata’s first death anniversary; govt steps in
The first death anniversary of Tata Group’s iconic leader Ratan Tata approaches on 9 October, yet one of India’s oldest conglomerates is facing a fresh leadership challenge.
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The government is reportedly preparing to intervene to ease tensions within India’s Tata Group ahead of the anticipated listing of Tata Trusts.
The first death anniversary of Tata Group’s iconic leader Ratan Tata approaches on 9 October, yet one of India’s oldest conglomerates is facing a fresh leadership challenge.
Tata Trusts, which hold roughly 66% of Tata Sons, have raised concerns over a lack of information being shared by directors they had nominated to the Tata Sons board, according to a report by Moneycontol.
Following Ratan Tata’s passing, his half-brother Noel Tata was appointed Chairman of the Trusts on 11 October 2024. Unlike Ratan Tata—whose sweeping authority as Trust chairman often went unchallenged—Noel Tata has struggled to consolidate similar control and faces closer scrutiny from fellow trustees.
Mehli Mistry, a trustee connected to the extended Shapoorji Pallonji (SP) family that owns about 18.37% of Tata Sons, is reported to have opposed certain decisions, feeling sidelined on key matters, Moneycontrol mentioned.
Another point of contention is the nomination of new directors to the Tata Sons board. Noel Tata has reportedly proposed several prominent names, but it remains unclear if the Mehli Mistry faction supports them. Media reports suggest that Uday Kotak, senior lawyer Behram Vakil, and Tata Steel MD TV Narendran are being considered. The stance of Tata Sons Chairman N Chandrasekaran on these nominees is yet unknown.
The planned listing of Tata Sons is also causing friction. The SP Group, under financial stress, is pushing for a public listing, arguing it would unlock value and provide a transparent market price. Noel Tata, historically resistant to listings, finds himself in a delicate position, given his marriage to Aloo Mistry, sister of SP Group chairman Shapoor Mistry. Tata Sons has already missed the 30 September 2025 deadline for public listing, as mandated under the RBI’s scale-based regulatory framework for upper-layer NBFCs.
Amid rising internal discord at Tata Trusts--which could impact India’s most valuable business house--the Centre is reportedly preparing to step in. Senior ministers are expected to meet with key Tata leaders to assess the situation, Economic Times reported.
According to the business daily, two Cabinet ministers are slated to hold discussions in New Delhi this week with four top Tata officials: Noel Tata (Chairman, Tata Trusts), Venu Srinivasan (Vice-Chairman, Tata Trusts), N Chandrasekaran (Chairman, Tata Sons), and Darius Khambata (Trustee, Tata Trusts).
