Opposition leader Rahul Gandhi on Wednesday claimed that the Tata Group is being criminally destroyed, alleging that the ruling party is indirectly interfering with the company.
Gandhi wrote on X, “Tata is being criminally destroyed, and no business leader dares say a word. How long will you stay silent? Until they own you? Indian business is not Modi and Shah's plaything. You lack courage. We don't. We will ensure justice for these crimes.”
The Congress party leader's remarks come amid a long-running dispute within the Tata Group over the leadership and regulatory listing requirements of the group’s holding company Tata Sons.
Tata Trusts chairman Noel Tata has repeatedly objected to the reappointment of N Chandrasekharan as Tata Sons chairman.
Chandrasekharan stepped down in August 2026 before his three-year term ends in February 2027, saying he failed to gain unanimous support from the Tata Sons Board. However, the board voted to reappoint him on September 17.
Earlier this week, Noel Tata challenged the reappointment decision again, citing reasons, including the agenda for the meeting and the voting disparities.
The feud also involves a regulatory mandate which requires Tata Sons to list. Noel Tata believes a listing will affect the core nature of the company as a philanthropic entity, forcing it into a profit-driven mindset.
However, Tata Sons, with its massive asset size and group holding structure, is classified as a core investment company under the larger Non-Banking Financial Company (NBFC) umbrella.
Despite the company attempting to drop its NBFC status, paying off all its direct borrowing in 2024, the RBI rejected the request after the definition of public funds was amended to include indirect access.
Noel Tata and Tata Trusts have now proposed merging Tata Electronics Systems Solutions (TESS) and Tata Consulting Engineers to change the nature of the company and avoid the listing.
