Tata Group Faces Power Struggle Inside Tata Trusts

A boardroom dispute inside one of India’s largest business empires, the Tata Group, has drawn major attention from the corporate world and the government.

Reports suggest a growing power struggle between Tata Trusts, the charitable body that controls 66% of Tata Sons, and the holding company itself. Tata Sons manages 26 listed companies under the group with a total market value of about $368 billion.

The issue became public after Noel Tata, chairman of Tata Trusts, met Home Minister Amit Shah in Delhi earlier this week. According to reports, Finance Minister Nirmala Sitharaman, Tata Sons Chairman N. Chandrasekaran, and trustees Darius Khambatta and Venu Srinivasan were also present.

Although no official statement has been released, sources say some trustees feel their powers have been reduced. They claim Tata Sons has not been seeking approval from Tata Trusts for large investments, a process that was earlier required for deals over ₹100 crore ($11 million).

The disagreement intensified when some trustees opposed the reappointment of Vijay Singh to the Tata Sons board. This has left one board seat vacant and increased tension between both sides.

Experts say the rift could affect corporate governance within the group. “The group must ensure clarity on the Trusts’ role and board powers,” said Hetal Dalal, president of Institutional Investor Advisory Services India.

This is not the first time Tata Group has faced such an issue. In 2016, former chairman Cyrus Mistry was removed from Tata Sons, leading to a public and legal fight with Ratan Tata, then chairman of Tata Trusts.

The situation has resurfaced a year after Ratan Tata’s death and continues to raise questions about control and leadership inside the group.

Meanwhile, the Reserve Bank of India has asked Tata Sons to go public under new listing rules. Analysts say a public listing could separate Tata Trusts’ charitable role from Tata Sons’ business operations.

The Shapoorji Pallonji (SP) Group, which owns about 18% of Tata Sons, also wants to sell its stake to reduce debt. However, Tata Sons fears that such a sale could lead to outside control if the company is listed.

The Tata Trusts board is meeting today to discuss the situation. Investors and employees across the group are hoping for a peaceful resolution to protect the Tata legacy built over more than 150 years.