Noel, Chandra set to hold talks ahead of Tata Sons board meet

Mumbai: Tata Trusts chairman Noel Tata and Tata Sons chairman N Chandrasekaran are set to hold discussions ahead of a crucial May 26 Tata Sons board meeting on several high-stakes matters, said senior executives close to the development.

Noel Tata, also a Tata Trusts nominee on the Tata Sons board, had raised several concerns at the Tata Group holding company's last board meeting on February 24. These were related to high-risk investments, reducing losses at new businesses, an exit option for the Shapoorji Pallonji (SP) Group and an assurance that Tata Sons would remain an unlisted entity.

At that meeting, Noel Tata had suggested a separate meeting with Chandrasekaran to discuss these business concerns. The upcoming talks are understood to have been initiated in response to that suggestion by the Tata Sons chairman.


Tata Trusts holds a majority 66% stake in Tata Sons. The SP Group holds an 18.4% stake that it wants to divest in order to repay debt.

Noel Tata and Tata Sons did not comment.

Chandrasekaran is expected to share with Tata presentations to be made before the board, said the executives cited. "The move also reflects good governance. These issues can be discussed candidly and resolved in a private meeting between the two," said one of them.

The meeting assumes significance amid what are said to be strains between Tata Trusts and Tata Sons, against the backdrop of larger questions over leadership continuity, capital allocation, new businesses and the group's strategic direction that are expected to be discussed before the board convenes.

There had been no communication between the two chairmen on the matter following the February 24 Tata Sons board meeting

The apparent tension has begun to weigh on decision-making at the holding company level, delaying key appointments and slowing discussions over several strategic matters concerning new businesses, said the people cited.

The development comes amid speculation that the Reserve Bank of India (RBI) may mandate the listing of Tata Sons under its rules for upper-layer non-banking finance companies (NBFCs).

That will require Tata Sons and Tata Trusts to deliberate separately on the matter.

At the February 24 meeting, the directors of Tata Sons had disagreed with Tata Trusts chairman Noel Tata's view on Chandrasekaran's reappointment. The matter was deferred and has since led to a communication breakdown between the stakeholders, according to people with knowledge of the matter.

The recommendation to grant Chandrasekaran a third five-year term was brought forward at the last board meeting to extend his tenure until 2032 in an executive capacity. His second term ends in February 2027.

Tata Sons was classified as an upper-layer NBFC in September 2022, requiring it to list by September 2025. The company has since applied to the RBI for deregistration and exemption from the listing requirement.