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 on Tuesday evening, amid growing tensions within the Tata Trusts over governance and board appointments.
According to PTI, Noel Tata and Chandrasekaran were joined by Venu Srinivasan, Vice Chairman of Tata Trusts, and trustee Darius Khambata for the meeting at Shah’s residence. Finance Minister Sitharaman also attended the discussions.
Government steps in as tensions escalate
The meeting comes at a time when the government has taken note of the deepening rift among the trustees of Tata Trusts, which controls 66 percent of Tata Sons, the holding company of the $180 billion Tata Group.
A source told CNBC-TV18 that the government 'cannot be a mute spectator' to the developments, given their potential implications for Tata Sons’ operations and the broader Indian economy.
“The government cannot ignore the tensions within Tata Trusts as they could affect the functioning of the Tata Group, one of India’s most significant conglomerates,” the source told the channel.
Trustees demand greater control
According to CNBC-TV18, four trustees, Darius Khambata, Jehangir HC Jehangir, Pramit Jhaveri, and Mehli Mistry, are seeking a greater role in key oversight decisions, including approving independent directors selected by Tata Sons’ Nomination and Remuneration Committee (NRC).
They have also reportedly sought access to Tata Sons’ board meeting minutes, a move that some within the group view as encroaching upon the autonomy of the holding company.
Insiders told the channel that there is a need to clearly separate the roles and powers of Tata Trusts and Tata Sons.
“Tata Trusts must work harmoniously with Tata Sons, and trustees cannot undermine the leadership of Noel Tata,” one source told CNBC-TV18.
Board meeting on October 10 seen as key
The tensions are expected to take centre stage at the upcoming Tata Trusts board meeting on October 10.
As Moneycontrol reported on October 6, the friction within Tata Trusts has intensified since Noel Tata succeeded Ratan Tata as Chairman on October 11, 2024. The conflict primarily revolves around how Tata Trusts exercises control over Tata Sons and the extent of information shared by its nominee directors on the Tata Sons board.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
