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The government has urged the Tata Group to “do what it takes” to restore stability within Tata Trusts and Tata Sons Pvt Ltd, as tensions within the boardroom threaten to unsettle India’s most respected corporate conglomerate, according to media reports.

Senior Tata officials, including Tata Trusts Chairman Noel Tata and Tata Sons Chairman Natarajan Chandrasekaran, met Union Home Minister Amit Shah and Finance Minister Nirmala Sitharaman at Shah’s residence in New Delhi on Tuesday night, reported The Economic Times.

 The closed-door meeting reportedly lasted around 45 minutes, signalling the government’s growing concern over the group’s internal rift.

Citing officials familiar with the matter, the report said the Centre is “deeply concerned” about the possibility of the Tata Trusts dispute spilling into the operations of Tata Sons and other group entities.

The message conveyed, sources said, was clear, that Tata Trusts’ significant stake in Tata Sons comes with a “public responsibility”, and that internal disputes must be settled quietly and constructively to avoid market disruption.

Tata Trusts Rift Deepens Over Governance and Influence

The conflict within Tata Trusts has reportedly deepened, with factions emerging between trustees aligned with Noel Tata and those led by Mehli Mistry. Mistry, who has long-standing ties to the Shapoorji Pallonji (SP) Group, a shareholder holding around 18.37 per cent in Tata Sons, is said to have raised concerns over being excluded from key decisions.

The power struggle centres on board representation at Tata Sons, the holding company that oversees the $180 billion Tata conglomerate, which includes around 400 companies and 30 listed firms. With Tata Trusts holding nearly 66 per cent of Tata Sons, its internal alignment is pivotal to the group’s governance.

The dispute was triggered by the ouster of former Defence Secretary Vijay Singh from the Tata Sons board following a heated meeting on September 11.

 According to Livemint, four out of seven trustees opposed Singh’s continuation, citing lack of communication from Tata Trusts’ nominees, Noel Tata, Singh and Venu Srinivasan, regarding key developments at Tata Sons. Despite his removal from the Tata Sons board, Singh remains a trustee at Tata Trusts.

Split Board and High-Stakes Decisions Ahead

The seven-member Tata Trusts board is now divided into two distinct camps: Noel Tata, Venu Srinivasan and Vijay Singh on one side; and Mehli Mistry, Darius Khambata, Citibank India CEO Pramit Jhaveri, and Jehangir H.C. Jehangir, Chairman of Jehangir Hospital, on the other.

The timing of the internal turmoil is particularly sensitive, as Tata Sons is currently in discussions with the Reserve Bank of India (RBI) over maintaining its private company status. Simultaneously, negotiations are ongoing regarding an exit plan for the Shapoorji Pallonji Group, the conglomerate’s largest minority shareholder.

Adding to the uncertainty, the Tata Sons board has three vacant positions, which could rise to four if Vijay Singh’s seat is included. New appointments would require trustee consensus, a challenge given the current divide.

Government Watchful as Key Decisions Loom

As per Tata Sons’ latest filings, the board currently includes Chairman N. Chandrasekaran, Noel Tata, Venu Srinivasan, Harish Manwani of Hindustan Unilever, and Group CFO Saurabh Agrawal. Independent director Leo Puri resigned earlier this year, while Ralf Speth, outgoing CEO of Jaguar Land Rover, and Ajay Piramal are expected to step down soon due to superannuation.

The next Tata Trusts board meeting, scheduled for October 10, will reportedly decide whether Venu Srinivasan continues as a nominee on the Tata Sons board.

While neither Tata Group nor government officials have issued formal comments, industry observers say the Centre’s intervention underlines the importance of the Tata conglomerate to India’s corporate and economic ecosystem.