Govt tells Tata Group to ‘do what it takes’ to restore stability, amid boardroom conflict

By Admin

08 Oct, 2025

In a move underscoring the significance of corporate stability in one of India’s most iconic conglomerates, the government has urged the Tata Group to “do what it takes” to resolve its ongoing internal disputes. The advisory follows growing concerns over the escalating boardroom conflict between trustees of Tata Trusts, which holds a decisive 66% stake in Tata Sons Pvt. Ltd., the holding company of the $180-billion Tata Group.

High-level meeting with top ministers
Top officials from the Tata Group, including Tata Trusts Chairman Noel Tata and Tata Sons Chairman Natarajan Chandrasekaran, met Union Home Minister Amit Shah and Finance Minister Nirmala Sitharaman in New Delhi on Tuesday night. The 45-minute meeting focused on ensuring that the internal rift does not affect the functioning of Tata Sons or its group companies, given the group’s systemic importance to the Indian economy.

According to reports by The Economic Times, the government is “deeply concerned” about the potential spillover of the Tata Trusts conflict into the management of Tata Sons. The message to the conglomerate was clear   to maintain internal stability and handle the dispute with discretion, in light of the group’s legacy and its contribution to India’s industrial and financial ecosystem.

Roots of the Tata Trusts conflict
The conflict within Tata Trusts reportedly stems from a growing divide among trustees. One faction, aligned with Noel Tata, faces opposition from another group led by Mehli Mistry, who has close links to the Shapoorji Pallonji family   a group that owns approximately 18.37% of Tata Sons. The discord intensified following the ouster of former Defence Secretary Vijay Singh from the Tata Sons board on September 11, a decision opposed by four out of seven trustees.

These four trustees   Mehli Mistry, Darius Khambata, Citibank India CEO Pramit Jhaveri, and Jehangir H.C. Jehangir   reportedly expressed frustration that the Tata Trusts’ nominees on the Tata Sons board, including Noel Tata, Vijay Singh, and Venu Srinivasan, had not adequately communicated major developments involving Tata Sons.

Impact on Tata Sons’ board structure
The boardroom tussle comes at a critical juncture for Tata Sons, which is currently engaged in discussions with the Reserve Bank of India to maintain its private ownership status and is negotiating an exit plan for the Shapoorji Pallonji Group. The Tata Sons board presently has three vacancies, potentially four if Vijay Singh’s position is included.

The board currently comprises five members   Chairman N. Chandrasekaran, Noel Tata, Venu Srinivasan, Hindustan Unilever’s Harish Manwani, and Group CFO Saurabh Agrawal. However, with independent director Leo Puri having resigned in April, and Ralf Speth and Ajay Piramal expected to step down soon, further changes could reshape the leadership structure. Srinivasan’s continuation as Tata Trusts’ nominee on the Tata Sons board will be determined at a key meeting scheduled for October 10.

Government’s perspective: safeguarding a national asset
For the government, the Tata Group is not merely a private conglomerate but an institution with deep economic and social roots in India’s growth story. The group’s expansive presence across sectors   from steel, automobiles, and information technology to aviation and consumer goods   makes its stability a matter of national interest.

By urging Tata Trusts and Tata Sons to settle differences internally, the Centre aims to prevent boardroom disputes from undermining investor confidence and operational harmony. The directive to “do what it takes” highlights the government’s expectation that the Tata Group’s leadership will act swiftly to protect its century-old legacy of trust, integrity, and industrial excellence.

Conclusion
The unfolding situation within Tata Trusts and Tata Sons reflects the delicate balance between corporate governance, stakeholder influence, and the preservation of legacy in India’s business landscape. As both sides prepare for crucial decisions in the coming weeks, the focus remains on restoring unity and ensuring that the Tata Group continues to stand as a beacon of stability and responsible enterprise.