Inside Tata’s Power Struggle: The Fight Beyond Chandrasekaran and Noel Tata

The Tata power struggle has moved beyond the disagreement between Tata Sons Chairman N Chandrasekaran and Tata Trusts Chairman Noel Tata. The latest dispute is unfolding within Tata Trusts itself, raising questions about how major decisions concerning Tata Sons are authorised and who has the authority to represent the Trusts’ collective position.

The issue gained attention after Tata Sons’ board approved Chandrasekaran’s reappointment for another five years, a decision challenged by Noel Tata. The dispute has since expanded to Tata Trusts’ proposed restructuring of Tata Sons.

Disagreement over Tata Sons restructuring

Tata Trusts, which owns about 66% of Tata Sons, has proposed restructuring the holding company as an alternative to a potential public listing. The plan could change Tata Sons’ regulatory classification and potentially help it avoid a listing requirement associated with its status as an upper-layer NBFC.

However, Sir Dorabji Tata Trust vice-chairmen and trustees Venu Srinivasan and Vijay Singh have questioned the process through which the restructuring proposal was approved and communicated. They said they were not consulted before the proposal was sent to Tata Sons.

Their concerns centre on whether the proposal can be presented as the Trusts’ collective position without a formal decision involving the relevant trustees.

Questions over Tata Trusts’ authority

The disagreement highlights the complex relationship between Tata Trusts and Tata Sons. While the Trusts exercise shareholder rights, Tata Sons remains a separate company with its own board and legal responsibilities.

The current dispute therefore raises questions about how the Trusts should collectively make decisions involving the company and how far shareholder influence can extend into commercial matters.

A similar divide emerged over Chandrasekaran’s reappointment. Noel Tata opposed the move, while Srinivasan supported it. Tata Trusts later challenged the validity of the resolution, while Tata Sons maintained that the appointment was valid.

Another governance question involves Hanno One Warehousing, a company linked to Chandrasekaran’s family, and projects connected with TVS Motor. The estimated value of the projects is around Rs 436 crore. Srinivasan is chairman emeritus of the TVS Group and also a Tata Sons nominee.

The commercial relationship does not by itself establish a conflict of interest, but it has raised questions over disclosure and whether any recusal requirements applied.

The immediate issues remain whether Tata Sons will consider the restructuring proposal and how regulators respond. At the same time, the disagreements within Tata Trusts could shape the broader battle over governance, authority and the future structure of Tata Sons.