A Legacy Under Strain

The Tata Group, one of India’s oldest and most respected conglomerates, is once again in the spotlight — not for its business triumphs, but for an internal power struggle that threatens to shake its foundations. At the heart of the storm lies Tata Trusts, the charitable body that controls nearly 66% of Tata Sons, the holding company that steers the Group’s vast empire — from Tata Steel and TCS to Tata Motors, Titan, and Taj Hotels.

For decades, Tata Trusts has been regarded as the moral and strategic compass of the Group, ensuring that commercial ambition never overshadowed its philanthropic ethos. But today, that guiding institution itself is under strain. A rift within the Trusts’ board has escalated into what many insiders describe as a “governance crisis”, prompting direct concern — and even intervention — from the Indian government.

The Crux of the Conflict

The latest turbulence arises from a power tussle among the trustees of Tata Trusts. Reports indicate that four influential trustees — Darius Khambata, Jehangir HC Jehangir, Pramit Jhaveri, and Mehli Mistry — have allegedly overstepped their traditional oversight role, forming what some within the Group privately call a “super board.”

These trustees are said to have sought to vet the minutes of Tata Sons’ board meetings and even influence the selection of independent directors — functions that are typically under the purview of Tata Sons’ management, led by Chairman N Chandrasekaran.

Such moves, insiders claim, are seen as a challenge to the authority of Tata Trusts Chairman Noel Tata, raising alarms about the erosion of corporate governance boundaries that have long separated ownership from operations. While there is no confirmation that the group’s decision-making has yet been impaired, the potential for strategic paralysis is evident.

The tension has been simmering since Ratan Tata’s passing in October 2024, a moment that left both an emotional and leadership void. With no single moral anchor like the late patriarch, internal divisions have become more pronounced, leaving room for conflicting interpretations of the Trusts’ powers and responsibilities.

Government Steps In

The situation has now attracted the attention of the Union government, which views the Tata Group as a cornerstone of India’s corporate reputation. In what sources describe as a rare high-level intervention, Finance Minister Nirmala Sitharaman and Home Minister Amit Shah recently held a closed-door meeting with Noel Tata, Venu Srinivasan, N Chandrasekaran, and Darius Khambata.

According to those familiar with the meeting, the ministers made it clear that “instability at the top of Tata Sons is unacceptable.” The leadership was urged to restore internal order swiftly — “by whatever means necessary.” The ministers reportedly warned that, if needed, trustees obstructing unity could face removal.

The government’s stance underscores the public significance of Tata Trusts’ actions: with its deep links to industry, finance, and philanthropy, any governance lapse within Tata Sons could send shockwaves through India’s markets and investor confidence.

A Crucial Meeting Ahead

All eyes are now on October 10, when Tata Trusts’ board is scheduled to convene. The meeting is expected to determine whether the organisation can reconcile its internal differences and reassert a unified vision. Both the government and investors will be watching closely, wary that prolonged discord could affect the Group’s decision-making across its vast business portfolio.

Preserving a Priceless Legacy

The Tata name has long symbolised stability, integrity, and purpose beyond profit. Yet, the current crisis within Tata Trusts risks undermining that carefully built legacy. The challenge before the leadership — particularly Noel Tata — is to restore balance without public confrontation, reaffirming the separation between philanthropy and management that has defined the Group’s success.

If handled with discretion and unity, this turbulence could become a moment of renewal — a reminder that even century-old institutions must evolve to protect what they stand for. But if left unresolved, it could echo the boardroom battle of 2016, a chapter few in the Tata family wish to revisit.

(With agency inputs)