The government has reportedly told the Tata Group to take all necessary steps to restore peace and stability within its top governing bodies — Tata Trusts and Tata Sons Pvt. Ltd. — amid an ongoing boardroom conflict at the heart of India’s most respected business group.
According to a report by The Economic Times (ET), top Tata Group leaders, including Tata Trusts’ Chairman Noel Tata and Tata Sons’ Chairman N. Chandrasekaran, met with Union Home Minister Amit Shah and Finance Minister Nirmala Sitharaman in New Delhi on Tuesday night. The meeting reportedly lasted for around 45 minutes.
Government’s Concern
The government is said to be deeply concerned about the internal conflict within Tata Trusts, which controls about 66% of Tata Sons, the main holding company of the $180-billion Tata Group. Officials fear that the dispute could spill over and affect the management of Tata Sons and other key companies in the group.
The government’s message to the group was clear — since Tata Trusts holds a major stake in Tata Sons and plays a crucial role in India’s economy, it has a “public responsibility” to handle internal matters quietly and professionally.
What’s Happening Inside Tata Trusts
According to reports, Tata Trusts’ board is divided into two rival groups:
One group supports Noel Tata, the current Chairman of Tata Trusts and brother of Ratan Tata.
The other group is led by Mehli Mistry, who has family links with the Shapoorji Pallonji (SP) Group, a shareholder in Tata Sons.
Mehli Mistry and his group reportedly feel left out of important decisions, including those related to the board of Tata Sons.
The Main Dispute — Board Seats at Tata Sons
The current conflict started after former Defence Secretary Vijay Singh was removed as a director on the Tata Sons board following a tense meeting on September 11.
Four out of the seven trustees — Mehli Mistry, Darius Khambata, Pramit Jhaveri, and Jehangir H.C. Jehangir — voted against him continuing as director.
These trustees said they were unhappy that Tata Trusts’ representatives on the Tata Sons board — Noel Tata, Vijay Singh, and Venu Srinivasan — were not keeping them informed about key developments in the group.
However, Vijay Singh still remains a trustee of Tata Trusts.
As a result, Tata Trusts is now split into two camps:
Camp 1: Noel Tata, Venu Srinivasan, and Vijay Singh
Camp 2: Mehli Mistry, Darius Khambata, Pramit Jhaveri, and Jehangir H.C. Jehangir
Tata Sons’ Current Situation
The timing of this internal conflict is delicate. Tata Sons is currently in talks with the Reserve Bank of India (RBI) to remain a private company and is also working out a deal to buy out the Shapoorji Pallonji Group’s 18.38% stake in Tata Sons.
There are also vacancies on the Tata Sons board that need to be filled.
The company currently has five members on its board:
N. Chandrasekaran (Chairman), Noel Tata, Venu Srinivasan, Harish Manwani (HUL), and Saurabh Agrawal (Group CFO).
The website lists nine board members, but Ralf Speth (Jaguar Land Rover) and Ajay Piramal are expected to step down soon due to retirement, and Leo Puri resigned earlier in April.
This means there are at least three to four board positions vacant, and any new appointments must be approved by the trustees of Tata Trusts.
A key decision on whether Venu Srinivasan will continue as Tata Trusts’ nominee on the Tata Sons board is expected to be taken during the Tata Trusts board meeting on October 10, according to a Livemint report.
