Government Asks Tata Group Leadership to Restore Stability Amid Internal Divisions
The government has reportedly urged the Tata Group leadership to restore stability within Tata Trusts following internal divisions that threatened to impact Tata Sons, the holding company of India’s largest conglomerate, according to The Economic Times. Sources indicate that a group of four trustees within Tata Trusts has acted as a "super board," reportedly undermining the authority of Chairman Noel Tata.
During a nearly hour-long meeting, Home Minister Amit Shah and Finance Minister Nirmala Sitharaman conveyed a firm message to Tata Trusts Chairman Noel Tata, Vice-Chairman Venu Srinivasan, Tata Sons Chairman N. Chandrasekaran, and Trustee Darius Khambata. The ministers emphasized that internal disputes must not affect Tata Sons’ operations and urged the leadership to restore stability “by whatever means necessary.”
Officials reportedly encouraged the Tata leadership to take decisive actions, including the potential removal of any trustee whose conduct could destabilize the group. The ministers also highlighted that the Trusts’ majority stake comes with a “public responsibility,” considering the Tata Group’s market influence and economic significance.
The discussions are said to have included regulatory topics, such as the Reserve Bank of India’s (RBI) requirements for listing upper-layer non-banking financial companies (NBFCs), including Tata Sons, and exploring liquidity solutions for the Shapoorji Pallonji Group, Tata Sons’ second-largest shareholder.
Following the meeting, the four Tata representatives held a brief internal discussion before returning to Mumbai. They are expected to participate in a two-day event commemorating the first death anniversary of former Tata Sons chairman Ratan Tata, who passed away on October 9, 2024.