Infighting among trustees: Tata group leaders meet Home Minister Amit Shah, FM Nirmala Sitharaman; what the issue is about

Infighting in the Tata Group has prompted the government to step in, with top leaders of the group, including Tata Trusts Chairman Noel Tata and Tata Sons Chairman N Chandrasekaran, meeting Union Home Minister Amit Shah and Finance Minister Nirmala Sitharaman.The top leadership met Shah and Sitharaman on Tuesday to address ongoing disputes, according to a PTI report.The high-level gathering at Shah’s residence included Tata Trusts Vice Chairman Venu Srinivasan and trustee Darius Khambata, who arrived together in the evening. Sitharaman participated in the discussions at the home minister’s residence.This significant meeting occurred amidst internal conflicts within Tata Trusts regarding board appointments and governance matters, which could affect the operations of the business empire valued at over $180 billion.The influence of Tata Trusts on India’s most valuable business group stems from its approximately 66 per cent ownership in Tata Sons, which serves as the promoter and holding entity of the diverse enterprise spanning from salt production to semiconductor manufacturing.A division has emerged within Tata Trusts, with one faction supporting Noel Tata, the recently appointed chairman following Ratan Tata’s passing. The opposing faction comprises four trustees under Mehli Mistry’s leadership, who maintain connections with the Shapoorji Pallonji family, holders of 18.37 per cent stake in Tata Sons.According to PTI, Mehli has expressed discontent over being excluded from crucial decisions.The contentious issue centres on directorship positions at Tata Sons, the holding entity of the 156-year-old conglomerate, which oversees approximately 400 companies, including 30 publicly listed enterprises.“The primary question in front of the government, considering how significant and important the Tata Group is to the country’s economy, is whether it can let an individual take control of it. The infighting among trustees of Tata Trusts has an impact on Tata Sons,” a source told PTI.