Tata Trusts may ask Tata Sons to explore all available options, including seeking a review and clarification from the Reserve Bank of India, before initiating legal proceedings over the central bank’s direction that the holding company proceed with a public listing. Two Tata Group executives familiar with the developments said the Trusts want the company to first approach the RBI and understand the reasons behind its decision before moving to court.

The development follows the RBI’s filing of a caveat in the Bombay High Court on Monday. A caveat allows the central bank to ensure that its position is heard before the court passes any order in a potential case concerning Tata Sons’ public listing. The filing came after the RBI rejected Tata Sons’ request on Saturday to surrender its registration, a decision that would require the company to move ahead with a public share sale.

The issue is expected to be discussed at the Tata Sons board meeting scheduled for September 17. The meeting will be the first major board gathering since N. Chandrasekaran announced on August 12 that he would not seek a third term as chairman of the conglomerate. A senior group executive said Tata Trusts wants the company to seek a reconsideration from the RBI before pursuing the legal route, adding that the matter could become a prolonged dispute.

Also Read: Houthis Claim They Shot Down Saudi F-15 Fighter Jet Over Marib

Tata Trusts chairman Noel Tata and several trustees are understood to favour keeping Tata Sons privately held. However, there are differences within the Trusts over the listing question. Trustees Venu Srinivasan and retired defence secretary Vijay Singh, who had earlier opposed the move, are now understood to support the public listing. Singh was removed from the Tata Sons board last September, while Srinivasan continues to serve as one of the Trusts’ two nominees.

The differences could make it uncertain whether the Tata Sons board, led by Chandrasekaran, will fully support the Trusts in challenging the RBI’s decision. The board also includes Noel Tata, Venu Srinivasan, group chief financial officer Saurabh Agrawal and independent directors Harish Manwani and Anita Marangoly George. The final position of the board may depend on whether the RBI agrees to reconsider its directive or maintains that Tata Sons must comply with the listing requirement.

The disagreement comes amid wider internal disputes involving Tata Trusts and some of its trustees and former trustees. According to group executives, complaints have been filed over the functioning and governance of smaller trusts linked to the Sir Ratan Tata Trust, while former trustee Mehli Mistry has also initiated legal challenges. The RBI’s caveat and the possibility of a court case now add another layer to the dispute over the future ownership and regulatory status of Tata Sons.

Also Read: 7 Keralam Wards Go to Bypolls As Civic Representatives Quit for Permanent Jobs