Tata Trusts Governance Row: Noel Tata and N Chandrasekaran Meet Amit Shah Amid Rising Tensions

In a high-profile development in India’s corporate world, Noel Tata, chairman of Tata Trusts, met Union Home Minister Amit Shah and Finance Minister Nirmala Sitharaman on Tuesday to discuss growing concerns within the Tata Trusts, sources report. The meeting also included Tata Sons chairman Natarajan Chandrasekaran, Venu Srinivasan, chairman emeritus of TVS Motor Company, and senior legal counsel Darius Khambata.

The gathering, held at Amit Shah’s residence, comes amid escalating internal divisions within Tata Trusts, which owns a 65.9% controlling stake in Tata Sons, India’s largest conglomerate. The exact details of the discussion remain undisclosed, but the timing underscores the government’s growing concern over potential disruptions to the operations of Tata Sons.

Deepening Rift Post-Ratan Tata

The ongoing tensions trace back to the passing of Ratan Tata in October 2024, which reportedly triggered a power struggle among the trustees. According to industry insiders cited by CNBC-TV18, four trustees — Darius Khambata, Jehangir HC Jehangir, Pramit Jhaveri, and Mehli Mistry — have allegedly acted as a “super board,” attempting to vet board meeting minutes and influence the selection of independent directors recommended by Tata Sons’ Nomination and Remuneration Committee.

These actions, sources say, undermine Noel Tata’s authority and raise serious corporate governance concerns, particularly given the Trusts’ strategic role in India’s business ecosystem.

Government Closely Monitoring the Situation

Officials suggest the Centre is keeping a close watch on the situation, emphasizing that the stability of Tata Sons is critical for India’s economy, given its massive market footprint and employment generation. Sources indicate that the government is unlikely to remain a “silent spectator” if the internal disputes threaten the company’s functioning.

The Internal Divide

Recent reports indicate that the Dorabji Tata Trust, one of the primary holding trusts, is at the center of the discord. Four trustees have aligned against three others, including Noel Tata, creating a split that has become more pronounced in recent months. The rift not only affects strategic decision-making but also raises questions about governance practices within one of India’s most influential corporate institutions.

Outlook

The meeting with the government is seen as an effort to stabilize Tata Trusts’ leadership and ensure that governance issues do not spill over into Tata Sons or the wider Tata Group. How the trustees resolve these differences will likely shape the future of India’s largest conglomerate in the years to come.