The government has asked the Tata Group leadership to restore stability within Tata Trusts after internal divisions threatened to spill over into Tata Sons, the holding company of India’s largest conglomerate, reported The Economic Times. The tensions stem from a group of four trustees within Tata Trusts who have reportedly acted as a “super board,” undermining Chairman Noel Tata’s authority.
In a nearly hour-long meeting, Home Minister Amit Shah and Finance Minister Nirmala Sitharaman delivered a firm message to Tata Trusts Chairman Noel Tata, Vice-Chairman Venu Srinivasan, Tata Sons Chairman N Chandrasekaran, and Trustee Darius Khambata. The ministers emphasised that stability must be restored “by whatever means necessary” and that internal rifts should not affect Tata Sons’ operations.
According to the report, the government encouraged the leadership to take decisive steps, including the possible removal of any trustee whose actions could destabilise the group. The ministers also reminded the Tata representatives that the Trusts’ majority stake carries a “public responsibility,” given the group’s size, market influence, and economic significance.
The discussions reportedly covered regulatory matters, including the Reserve Bank of India’s (RBI) mandate for the listing of upper-layer non-banking financial companies (NBFCs), including Tata Sons, and the search for a liquidity solution for the Shapoorji Pallonji Group, Tata Sons’ second-largest shareholder.
After the meeting, the four Tata representatives reportedly held a brief internal discussion before returning to Mumbai. They are expected to attend a two-day remembrance event marking the first death anniversary of former Tata Sons chairman Ratan Tata, who passed away on October 9, 2024.
The government has reportedly taken a stern view of the ongoing tensions and expects the Trusts to resolve differences internally and discreetly, without public confrontation or escalation.
INFIGHTNG AMONG TRUSTEES?
Sources close to the Tata Group told CNBC-TV18 that the government “cannot be a silent spectator to the coup attempt by four trustees of Tata Trusts.”
The trustees allegedly involved are Darius Khambata, Jehangir HC Jehangir, Pramit Jhaveri, and Mehli Mistry. According to sources, they have attempted to influence Tata Sons’ governance by vetting board meeting minutes and approving independent directors shortlisted by the company’s Nomination and Remuneration Committee. These moves, the sources said, raise “serious corporate governance concerns” within the organisation.
Reports suggest that the Trust has been internally divided since the passing of Ratan Tata in October 2024. The rift has become more apparent in recent months, with four trustees of the Dorabji Tata Trust positioned on one side and three others, including Noel Tata, on the other.
TATA GROUP SHARES GAIN
Shares of several Tata Group companies traded higher on Tuesday morning. Titan Company rose nearly 4% to Rs 3,552.80 after reporting 20% year-on-year growth in consumer business revenue for the July–September quarter of FY26, with its international business up 86%.
Tata Consultancy Services (TCS) shares were up about 2% at Rs 3,025. The company cancelled its scheduled press conference for Q2 FY26 results, originally planned for October 9, coinciding with Ratan Tata’s death anniversary, but confirmed its analyst call would proceed as planned.
Tata Steel edged up 0.4% to Rs 172.14, Trent gained 0.5% to Rs 4,709, and Tata Technologies rose 0.5% to Rs 716.50. Tata Motors slipped 0.34% to Rs 695.65.
The developments come as the Tata Group faces heightened government and market scrutiny over governance issues within Tata Trusts, which owns about 66% of Tata Sons.
