The Tata Trusts, which own about 66 percent of Tata Sons and exert decisive influence over the country’s most valuable conglomerate, find themselves in the limelight over an apparent clash over governance between two sections of the trustees. The Board of Tata Trusts is scheduled to meet on October 10, a meeting that will be closely watched given the backdrop of mounting disagreements over governance, transparency, and the looming question of a possible listing by Tata Sons.
Sources told Moneycontrol that the conflict has now crystallised around the way Tata Trusts exercises control over Tata Sons. Linked to this is the authority exercised by Noel Tata, who was appointed Chairman of the Trusts on October 11, 2024, following the death of Ratan Tata. A group of 4 trustees are said to be dissatisfied over what they allege is lack of information being shared by directors nominated by Tata Trusts on the Tata Sons board.
The larger question of how the Trusts exercise their power over Tata Sons has come to the fore at a time when the Reserve Bank of India (RBI) has mandated that the holding company list, given its classification as a systemically important core investment firm.
Tata Trusts did not respond to a detailed email seeking comments on the agenda of the October 10 meeting.
Authority gap?
Ratan Tata, who chaired the Trusts for decades, was known for his sweeping authority. Trustees and nominee directors on the Tata Sons board rarely challenged his power to ratify key decisions taken by Tata Sons. During his tenure, alignment between Tata Trusts and Tata Sons was ensured by the weight of his personal influence.
Sources said Noel Tata has so far not been able to consolidate similar authority. While he carries the family’s surname and was elected unopposed to succeed Ratan Tata, the dynamics inside the Trusts have changed. Unlike his predecessor, Noel faces sharper scrutiny from fellow trustees.
According to people aware of the matter, Noel has been more directly involved in decision-making, a role that has not always gone down well with others. Mehli Mistry—a trustee with ties to the extended Shapoorji Pallonji family, which owns about 18.37 percent of Tata Sons—is said to have expressed opposition to certain moves. Sources indicated that Mehli allegedly feels he has been kept out of the loop on key matters, a perception that has deepened mistrust within the Tata Trusts board.
Sources further say that one of the core issues in the ongoing struggle is the ability of the Trusts to nominate new directors on the Tata Sons board. Noel is understood to have floated a few prominent names for consideration, but it is not clear whether the Mehli Mistry camp endorses them.
As per media reports Uday Kotak, prominent lawyer Behram Vakil and Tata Steel MD TV Narendran are being considered for induction on the Tata Sons board. The views of N Chandrasekaran, the incumbent Tata Sons chairman, on these possible nominees is also not known.
This question is crucial, since the Trusts’ nominee directors in Tata Sons carry voting power on key resolutions that will shape the group’s strategy going forward.
Tata Sons Listing
Another key issue is the possible listing of Tata Sons.
The Shapoorji Pallonji (SP) Group, the Mistry family’s holding company, has been grappling with severe financial stress. With multi-billion-dollar borrowings and its 18.37 percent stake in Tata Sons already pledged, the group has been seeking ways to monetise the holding to repay lenders.
According to people familiar with the matter, the SP Group has been pressing for Tata Sons to list, arguing that a public float would unlock value and provide a transparent market price. It is understood that the group has also made a representation to the government, underscoring that its survival hinges on monetising its stake.
This places Noel in a complex position: given his responsibilities as Chairman of the Tata Trusts, which have historically resisted listing.
Noel has family ties with the Mistrys, as he is married to Aloo Mistry, the sister of Shapoor Mistry the chairman of SP Group. There is no suggestion that these family ties have in any way influenced his decisions.
Tata Sons has missed the September 30, 2025 deadline for public listing, as mandated by the RBI’s scale-based regulatory framework for NBFCs in the Upper Layer. The company had applied in March 2024 to surrender its Core Investment Company registration, and the RBI’s decision on that application is pending.
What’s at stake
Overlaying the listing debate are long-running concerns about the role and accountability of nominee directors. At least four trustees opposed the reappointment of Vijay Singh as a nominee director at a meeting of the Tata Trusts on September 11, citing inadequate information-sharing from Tata Sons’ board meetings. The reappointment of Venu Srinivasan is also said to be under review, while there is growing discussion about whether lifetime trustee appointments should be reconsidered.
These developments reflect a broader churn in how the Trusts are governed, and the extent to which they can exercise oversight without triggering fresh disputes. As insiders point out, trustees are not symbolic placeholders — they are accountable for their votes, their ratification of decisions, and the consequences that flow from Tata Sons’ actions.
In a sign of the seriousness of the differences, Tata Sons chairman N. Chandrasekaran is understood to have met trustees at the Taj Chambers in Mumbai in recent weeks to brief them on strategic decisions. People familiar with the matter said the meeting was convened at the request of trustees who wanted more clarity.
The cohesion of the Tata Trusts has long been the bedrock of stability for the Tata Group. A breakdown in alignment could ripple across the group’s 26 listed companies, which together commanded a market capitalisation of $328 billion as of March 31, 2025.
Against this backdrop, the Board of Tata Trusts will meet on October 10, a gathering that will be closely watched for signals on governance, transparency and the group’s stand on the listing question. More immediately, the missed deadline, the nomination tussle, and the SP Group’s push for monetisation have thrust Noel Tata into the centre of the debate.
Whether he can unify the trustees around a coherent stance—balancing regulatory demands, group strategy, and family ties—may define not just his leadership, but the next chapter of governance at India’s most systemically important conglomerate.
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