Key figures from the Tata group, including Tata Trusts Chairman Noel Tata and Tata Sons Chairman N Chandrasekaran, met with Union Home Minister Amit Shah and Finance Minister Nirmala Sitharaman. This meeting occurred amid internal disputes among trustees over board appointments and governance issues. The discussions took place at Shah’s residence, with Sitharaman also attending.

The backdrop of this meeting is the ongoing discord among Tata Trusts’ trustees concerning board appointments and governance matters. These issues could potentially affect the operations of the conglomerate, valued at over USD 180 billion. Tata Trusts holds a significant influence over the group through its approximately 66 per cent stake in Tata Sons, the holding company for the diverse salt-to-semiconductor enterprise.

Trustees’ Divisions and Influence

Tata Trusts appears divided, with one faction supporting Noel Tata, who became chairman after Ratan Tata’s passing. Another faction of four trustees is led by Mehli Mistry, connected to the Shapoorji Pallonji family, which owns about 18.37 per cent of Tata Sons. Mistry reportedly feels excluded from crucial decisions.

The core issue seems to be board seats at Tata Sons, which oversees a 156-year-old group encompassing around 400 companies, including 30 listed firms. The infighting among trustees has implications for Tata Sons’ governance and stability, according to sources familiar with the situation.

Government’s Role and Concerns

The government faces a critical question: whether it can allow an individual to gain control over such a vital entity in India’s economy. Given the significance of the Tata Group, this matter requires careful consideration. The internal conflicts within Tata Trusts are impacting Tata Sons, as noted by a source.

Tata Trusts, Tata Sons, and Venu Srinivasan have chosen not to comment on these developments. Attempts to reach Mehli Mistry for his perspective were unsuccessful as calls and messages went unanswered.

With inputs from PTI