Government Urges Tata Group to Resolve Boardroom Turmoil Amid Internal Conflict

On Tuesday night, top officials from the Tata Group, including Tata Trusts Chairman Noel Tata and Tata Sons Chairman N. Chandrasekaran, met Union Home Minister Amit Shah and Finance Minister Nirmala Sitharaman in New Delhi for a 45-minute discussion. The government has reportedly expressed concern that the ongoing boardroom disputes at Tata Trusts could spill over into the management of Tata Sons and its associated companies. Officials emphasized that Tata Trusts’ significant stake in Tata Sons carries a “public responsibility” given the conglomerate’s systemic importance to the Indian economy, and urged that any disputes be resolved internally and discreetly.

The Root of the Conflict

Tata Trusts, which holds nearly 66% of Tata Sons and exerts decisive influence over the $180-billion conglomerate spanning around 400 companies, is currently divided into two camps. One camp, led by Noel Tata, includes Venu Srinivasan and former defence secretary Vijay Singh. The other, led by trustee Mehli Mistry, who has links with the Shapoorji Pallonji family, which owns about 18.37% of Tata Sons, includes Darius Khambata, Citibank India CEO Pramit Jhaveri, and Jehangir Hospital Chairman Jehangir H.C. Jehangir.

The tension escalated after Vijay Singh was removed from the Tata Sons board following a contentious meeting on 11 September, where four trustees opposed his continuation. Those opposing Singh argued that Tata Trusts’ nominees on the Tata Sons board, including Noel Tata, Vijay Singh, and Venu Srinivasan, had not kept them informed about key developments. Singh, however, remains a trustee at Tata Trusts.

Implications for Tata Sons

The boardroom friction comes at a crucial time for Tata Sons, which is in discussions with the Reserve Bank of India about remaining a private entity and negotiating the exit of the Shapoorji Pallonji family from its board. Tata Sons currently has several board vacancies, with upcoming retirements from Jaguar Land Rover CEO Ralf Speth, Piramal Group’s Ajay Piramal, and independent director Leo Puri.

The continuation of Venu Srinivasan as a Tata Trusts nominee on the Tata Sons board is expected to be decided at a meeting scheduled for 10 October. Until then, the boardroom dynamics remain uncertain.

Both Tata Trusts and Tata Sons have declined to comment on the issue, and attempts to reach Mehli Mistry went unanswered.