India's most valuable business conglomerate finds itself at the centre of a high-stakes governance battle that prompted an unprecedented government intervention on Tuesday evening.
Top Tata Group leaders, including Tata Trusts Chairman Noel Tata and Tata Sons Chairman N. Chandrasekaran, met Union Home Minister Amit Shah and Finance Minister Nirmala Sitharaman as internal disputes threaten the stability of the $180 billion empire.
The meeting at Shah's residence brought together Noel Tata, Chandrasekaran, Tata Trusts Vice Chairman Venu Srinivasan, and trustee Darius Khambata—a gathering that underscores the gravity of the situation facing India's most storied business house, agencies reported.
Explained: Tata power struggle
At the heart of the latest crisis lies a bitter divide within Tata Trusts, the charitable organisation that wields decisive control over the conglomerate through its 66 per cent stake in Tata Sons.
The trust has fractured into two opposing camps since Noel Tata assumed leadership following the passing of Ratan Tata in October 2024.
One faction rallies behind Noel Tata, while a four-member group led by trustee Mehli Mistry—who has connections to the Shapoorji Pallonji family that owns 18.37 per cent of Tata Sons—has emerged as a formidable opposition.
Sources told agencies that Mistry feels sidelined from crucial decision-making processes, creating an atmosphere of mistrust within the organisation.
Tata boardroom showdown
The conflict reached a breaking point during the September 11 meeting of trustees, which was convened to decide the reappointment of Vijay Singh, the 77-year-old former defence secretary who served as a Tata Sons board member since 2012.
When Noel Tata and Venu Srinivasan proposed Singh's continuation, the four opposing trustees—Mehli Mistry, Pramit Jhaveri, Jehangir HC Jehangir, and Darius Khambata—reportedly voted against the resolution.
Their subsequent attempt to nominate Mistry to the Tata Sons board was blocked by the Noel Tata camp, citing the need for transparent processes aligned with Tata values.
In the midst of this conflict, Vijay Singh voluntarily resigned from his board position.
TCS calls off Q2 earnings presser
India's most valued listed IT firm, Tata Consultancy Services or TCS, reportedly called off its planned press meeting regarding the second-quarter FY2026 earnings.
According to BusinessLine, TCS sources said that the press conference was cancelled since the date coincided with Ratan Tata's anniversary of passing. However, the timing amid the board turmoil is highly suspect.
Amit Shah, Nirmala Sitharaman step in
With Tata Sons controlling a 156-year-old conglomerate spanning 400 companies, including 30 publicly listed firms, union cabinet ministers have now stepped in.
The government's concern centres on preventing any individual or faction from gaining disproportionate control over such an "important" business group.
"The primary question in front of the government, considering how significant and important the Tata Group is to the country's economy, is whether it can let an individual take control of it," a source told PTI.
This infighting also comes on the heels of Tata Sons facing regulatory pressure from the Reserve Bank of India regarding its mandatory public listing requirements.
The next Tata Trusts board meeting is scheduled for Friday, October 10.