KOCHI: When the government calls the top brass of a private business house to a closed-door meeting and tells them to “restore stability by whatever means necessary,” it usually signals something far more consequential than boardroom politics. But then again, the Tata Group has never been just another business house.
The recent meeting involving Home Minister Amit Shah and Finance Minister Nirmala Sitharaman – attended by Noel Tata, N Chandrasekaran, and other senior figures – is telling.
It wasn’t about quarterly results or market valuations. It was about restoring calm within Tata Trusts, the powerful holding entity that controls Tata Sons, and by extension, the $300+ billion empire that the Tata Group represents.
But scratch beneath the surface, and this crisis seems neither sudden nor entirely surprising.
The ghost of Mistry still looms?
To understand the current tensions, one needs to rewind to 2012, when Cyrus Mistry was appointed Chairman of Tata Sons. His unceremonious ouster in 2016 – followed by years of courtroom wrangling between Tata Sons and the Shapoorji Pallonji Group (SP Group) – marked a turning point in the Group’s modern history.
It shattered the image of serene continuity that had long defined Tata boardrooms and exposed uncomfortable questions around governance, control, and succession.
What we’re seeing now – internal factions, allegations of a ‘super board’ within Tata Trusts, and challenges to authority – appears to be a continuation of unresolved power tensions that began back then.
The optics have changed, but the underlying question remains: Who really governs the Tata empire?
Tata: Too big – and too symbolic — to falter
The Tata name carries a certain moral heft in Indian business circles – a legacy built on trust, nation-building, and understated power. It is often held up as the ‘decent face of Indian capitalism’, a brand that walks the talk on ethics and public service.
And that’s precisely why the government is paying such close attention. Because when the Tata Group wobbles, it’s not just shareholders who get nervous. The tremors are felt across corporate India, boardrooms, and even political corridors.
From the RBI’s pressure on Tata Sons to list as an upper-layer NBFC to the uncertain resolution of the SP Group’s liquidity issues – the group’s internal cohesion is being tested at a time when external pressures are mounting.
Behind the halo, hard politics
According to reports, four trustees – Darius Khambata, Jehangir Jehangir, Pramit Jhaveri, and Mehli Mistry – have reportedly been exerting influence beyond their remit, raising eyebrows over governance practices. Approving independent directors, reviewing board minutes – these are not routine trustee responsibilities.
It’s little wonder then that the government has drawn a red line. The message: internal power struggles must not compromise the stability of a group that’s both systemically important and publicly revered.
If the Trusts are fractured, and Tata Sons risks getting drawn into the whirlpool, then the very architecture of India’s most influential corporate group stands threatened.
Ratan Tata’s passing, a fragile succession?
While the Tata group maintained a unified public image under Ratan Tata’s stewardship, his passing in October 2024 appears to have reopened old wounds. The current divisions – reportedly between a faction of four trustees and the trio led by Noel Tata – could signal a broader succession struggle, not just of leadership, but of ideology.
Can the Tatas reinvent their governance for a new era? Or will legacy structures continue to foster backroom conflicts in a group too large – and too visible – for internal instability?
The last thing India Inc. needs
In an economy chasing $5 trillion GDP and a stock market flirting with new records, the last thing Corporate India wants is a meltdown at the top of its most respected conglomerate. It’s not about the stock price of Tata Motors or TCS – it’s about confidence. The Tata Group has always stood as a stabilising pillar amid the chaos of capitalism. And when the pillar starts showing cracks, the whole temple looks shaky.
Whether this internal skirmish ends quietly or leads to structural change within the Trusts, one thing is clear: the Tata brand matters too much to be left to family feuds and ambiguous governance.
