The Indian government is stepping in to mediate rising tensions within the Tata Trusts, the majority shareholder of Tata Sons, amid concerns that internal infighting could disrupt the operations of India’s largest conglomerate and affect the long-pending decision on Tata Sons’ public listing. Senior Cabinet ministers are scheduled to meet key Tata leaders, including Noel Tata, Venu Srinivasan, N Chandrasekaran, and Darius Khambata, to address governance issues and assess the path forward on the listing mandate.
Government Intervention
The central government is intervening following a contentious meeting of the Tata Trusts on September 11, 2025, which exposed deep divisions among trustees a year after the passing of Ratan Tata. The rift centers on control mechanisms over Tata Sons, particularly the appointment of nominee directors and access to board information. The government views the situation as a potential threat to the stability of one of India’s most systemically important business groups.
Key Factions and Disputes
The conflict has split the trustees into two factions. One group, led by Noel Tata and Venu Srinivasan, supports continuity and due process in governance. The opposing faction, including Mehli Mistry, Pramit Jhaveri, Jehangir Jehangir, and Darius Khambata, pushed for new nominee directors and opposed the reappointment of long-time board member Vijay Singh. The ouster of Singh and a subsequent email perceived as a veiled threat to remove Srinivasan from the board have escalated tensions, with officials describing the move as an attempt to “hijack Tata Sons” and consolidate control.
Listing Deadline and Regulatory Pressure
The dispute coincides with the expiration of the Reserve Bank of India’s (RBI) three-year mandate requiring Tata Sons to list as an “upper-layer” non-banking financial company (NBFC), classified in September 2022. While Tata Sons applied for deregistration in March 2024 to avoid the listing, the RBI has yet to respond. The Shapoorji Pallonji Group, holding an 18.37% stake, continues to push for a public listing to unlock liquidity amid its own financial challenges.
Governance and Succession Concerns
The government is also concerned about demands from some trustees for access to confidential board agendas and minutes, prior approval for key decisions, and challenges to the appointment of independent directors. The renewal of trustee terms, which requires unanimity, could further intensify disagreements, especially amid allegations of conflict of interest and inadequate financial disclosures. N Chandrasekaran, while broadly supported for his leadership, is navigating a delicate balance amid the growing discord.