Tata Group Leaders Convene with Home Minister Amit Shah and Finance Minister Nirmala Sitharaman Amid Governance Concerns

Key figures from the Tata group, including Tata Trusts Chairman Noel Tata and Tata Sons Chairman N Chandrasekaran, met with Union Home Minister Amit Shah and Finance Minister Nirmala Sitharaman. This meeting occurred amid internal disputes among trustees over board appointments and governance issues. The discussions took place at Shah's residence, with Sitharaman also attending.

The ongoing trouble in the Tata Group has grown to such an extent that the Government of India, represented by two of its most powerful figures, Amit Shah and Nirmala Sitharaman, had to step in to mediate, reported BW Business World.

Trustees' Divisions and Influence

Tata Trusts appears divided, with one faction supporting Noel Tata, who became chairman after Ratan Tata's passing. Another faction of four trustees is led by Mehli Mistry, connected to the Shapoorji Pallonji family, which owns about 18.37 per cent of Tata Sons. Mistry reportedly feels excluded from crucial decisions.

The core issue seems to be board seats at Tata Sons, which oversees a 156-year-old group encompassing around 400 companies, including 30 listed firms. The infighting among trustees has implications for Tata Sons' governance and stability, according to sources familiar with the situation.

Why Tata Turbulence Needs Govt Attention?

The salt-to-software giant is not just a conglomerate but a leading contributor in India's growth story since independence. Tata Group companies have a strong presence in crucial sectors like steel, automobiles, IT services, power, aviation, hotels, chemicals and consumer goods. Tata Group subsidiaries make nearly 7% of the BSE's total market capitalisation and employ over nine lakh people across the world, according to a BW Business World report.

Government's Role and Concerns

The government faces a critical question: whether it can allow an individual to gain control over such a vital entity in India's economy. Given the significance of the Tata Group, this matter requires careful consideration. The internal conflicts within Tata Trusts are impacting Tata Sons, as noted by a source.

Tata Trusts, Tata Sons, and Venu Srinivasan have chosen not to comment on these developments. Attempts to reach Mehli Mistry for his perspective were unsuccessful as calls and messages went unanswered.

With inputs from PTI