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A year after Noel Tata took charge as chairman of Tata Trusts, a fresh power tussle has emerged, drawing government attention and sparking debates over governance at one of India’s most influential business conglomerates.

The government’s involvement marks a rare intervention in private corporate affairs. The October 7 meeting with Shah and Sitharaman is seen as an effort to ease tensions, though no official decisions have been disclosed.

With a clear directive to restore stability at India’s most valuable business houses, which carry the legacy of the late Ratan Tata, all eyes are on tomorrow’s board meeting of Tata Trusts on October 10.

That meeting will focus exclusively on philanthropic activities, including ₹1,000 crore in commitments. Insiders stress that the agenda is unrelated to the ongoing disputes over Tata Sons’ governance and board appointments.

Also Read: Inside the Tata Trusts turmoil: The flashpoints, factions and fallout

The players

Tata Trusts, which holds nearly 66% of Tata Sons, the holding company of the Tata Group, has traditionally provided oversight to ensure the group adheres to its philanthropic and long-term strategic ethos. Tata Sons, in turn, manages the operational side of the group, overseeing over 400 companies spanning automobiles, steel, IT services, consumer goods, and more.

At the centre of the current discord are seven key figures:

The Noel Tata camp:

• Noel Tata, chairman of Tata Trusts and Tata International.
• N. Chandrasekaran, chairman of Tata Sons, closely aligned with Noel Tata.
• Venu Srinivasan, trustee of Tata Trusts, supporting Noel Tata.

The Quartet:

• Darius Khambata, trustee of Tata Trusts, part of the quartet though he attended a government meeting with the Noel Tata camp.
• Jehangir H.C. Jehangir, trustee of Tata Trusts.
• Mehli Mistry, trustee of Tata Trusts and long-time associate of the late Ratan Tata.
• Pramit Jhaveri, trustee of Tata Trusts.

Conflicting narratives

Sources aligned with Noel Tata allege that the Mistry Quartet sought to function as a “super board,” undermining his leadership. A CNBC-TV18 report noted: “Sources close to Noel Tata claim there is a coup attempt by four trustees… [they] tried to emasculate the leadership of Noel Tata and wanted to function ‘as a super board.’”

Trustees in the Mistry Quartet reject these allegations, asserting that the narrative is “false” and intended to cast them as villains. All four had voted in favour of Noel Tata’s appointment as chairman last year, immediately after Ratan Tata’s passing.

Also read: Tata gets clear signal from Shah and Sitharaman to ‘do what it takes’ and restore group stability

The bone of contention

Tensions escalated to the corridors of power this week when Noel Tata and Chandrasekaran met Union Home Minister Amit Shah and Finance Minister Nirmala Sitharaman in New Delhi. They were joined by Venu Srinivasan and Darius Khambata.

The friction, media reports say, centres around three main issues:

• Tata International equity infusion – Tata International, chaired by Noel Tata, sought ₹1,000 crore from Tata Sons to reduce its debt, which had risen to about ₹2,000 crore. While the infusion was ultimately cleared, sources say the matter “remains unresolved,” highlighting underlying disagreements over financial strategy.
• Proposal for a Deputy MD at Tata Sons – Noel Tata’s suggestion to create a Deputy Managing Director position at Tata Sons was opposed by some trustees, who reportedly viewed it as unnecessary, further widening the gap between the two camps.
• Board appointment of Mehli Mistry – Mistry’s induction onto the Tata Sons board, which Noel Tata opposed, has emerged as another flashpoint. Mistry, the first cousin of the late Cyrus Mistry, is said to have strong ties with the Shapoorji Pallonji family, which holds an 18.37% stake in Tata Sons. Sources close to him dismiss claims of a “coup,” describing the narrative of attempting to “usurp power” as false.
• Ousting of Vijay Singh – Tensions also surfaced over the removal of Vijay Singh, a former defence secretary, as a Tata Sons nominee director. Reports suggest that Noel Tata and Venu Srinivasan opposed Singh’s ousting, while the Mistry Quartet supported it. This episode has added to the perception of deep divisions among trustees over board appointments and governance.

The current tensions echo past conflicts within the Tata Group, most notably the public fallout between the late Ratan Tata and the late Cyrus Mistry nearly a decade ago. While the Trusts traditionally guide Tata Sons on long-term strategy and philanthropy, reports suggest that this separation of roles has come under strain in recent months, particularly over decisions affecting board representation and key financial moves.

PTI sources note that the main question facing the government and stakeholders is whether an individual can exercise undue influence over Tata Sons, given its strategic and economic significance.