Tata Trusts Civil War Puts $400 Billion Empire and RBI Deadline on the Edge
Tata Trusts rifts trigger government talks as RBI listing deadline looms.
A bitter feud within Tata Trusts, the majority shareholder of Tata Sons, has erupted over the nomination of directors to the conglomerate’s board, sparking concerns about governance and transparency. The conflict, which surfaced after a heated September 11 meeting, pits Chairman Noel Tata and Vice-Chairman Venu Srinivasan against trustees Mehli Mistry, Pramit Jhaveri, Darius Khambata, and Jehangir Jehangir. The dispute led to the resignation of former Defence Secretary Vijay Singh from the Tata Sons board.
The rift centers on disagreements over appointing new directors and sharing board deliberations, with Mistry’s faction alleging exclusion from key decisions, including transactions exceeding ₹100 crore. Noel Tata’s camp insists all actions align with shareholder interests, but the standoff has stalled critical board appointments. The discord follows the 2016 ouster of Cyrus Mistry, highlighting lingering tensions with the Shapoorji Pallonji Group.
Adding pressure, the RBI’s September 2025 deadline to list Tata Sons as an “upper layer” NBFC looms, with the company’s March 2024 bid to deregister still pending. An IPO could value Tata Sons at over ₹10 lakh crore, but trustees are pushing to remain unlisted. The Central government is stepping in to mediate, with a delegation led by Noel Tata set to meet ministers in New Delhi.
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This week’s talks aim to resolve the trustee conflict and clarify Tata Sons’ regulatory status to prevent disruptions across its $400 billion empire, spanning steel, IT, and automobiles. With an October 10 board meeting approaching, the outcome will shape Tata’s governance and its ability to balance philanthropy with commercial demands.
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