Chandrasekaran, Noel Tata briefed govt on group tensions before chairman's exit: Report

Senior Indian government officials were briefed by Tata Sons chairman N Chandrasekaran and Tata Trusts chairman Noel Tata about tensions within the conglomerate before Chandrasekaran announced last week that he would not seek another term, the Times of India reported on Monday, citing people familiar with the matter.

The report said the discussions covered differences between Chandrasekaran and Tata Trusts Chairman Noel Tata over strategy and governance, the direction of new businesses and uncertainty over Chandrasekaran's reappointment.

The Times of India reported that concerns raised during the engagements included some appointments and losses at Air India, Tata's digital businesses and its semiconductor ventures.

Government officials heard the concerns but did not take sides, according to the report.

The outreach is notable because direct government involvement in the internal affairs of a private-sector conglomerate is unusual in the absence of a financial crisis or insolvency.

The report said Noel Tata was in New Delhi over the weekend during India's Independence Day and Parsi New Year holiday, but people close to him denied that he met government officials during the visit. They said the trip was related to Trent, Tata's retail business, where Noel Tata is non-executive chairman.

He is due to relinquish that position in November after reaching the group's retirement age of 70.

The latest developments come as the Tata Group begins the process of finding a successor to Chandrasekaran, who said on Wednesday that he would not offer himself for reappointment when his current five-year term ends on February 20, 2027.

The Sir Dorabji Tata Trust, one of Tata Sons' key shareholders, said on Thursday that its trustees had resolved to begin setting up a selection committee to recommend a successor.

The trust said the committee would be constituted in accordance with Tata Sons' articles of association and would recommend a candidate for appointment as chairman.

Chandrasekaran, 63, said his decision followed a six-month impasse over his reappointment.

He said the Sir Dorabji Tata Trust and Sir Ratan Tata Trust, which together hold 51.54% of Tata Sons, had unanimously recommended another five-year term, and that the recommendation had been backed by the Tata Sons board's nomination and remuneration committee and board.

The proposal was not carried through after one board member did not support it, Chandrasekaran said, adding that no resolution had been reached six months after a February board meeting.

Chandrasekaran said the uncertainty could no longer continue because Tata Sons had several strategic projects at critical stages of execution and that clarity on leadership was needed for employees, investors, partners and other stakeholders.

The succession dispute follows differences between Tata Sons management and Tata Trusts over the group's five-year strategic roadmap, board representation and capital allocation.

The long-running question of whether Tata Sons should eventually be listed has also emerged as a fault line.

The Tata Trusts collectively own about 66% of Tata Sons, according to the group, giving them substantial influence over the holding company's governance.

Tensions within the Tata Group had also prompted separate engagements with senior government officials in 2025, after Noel Tata succeeded his half-brother Ratan Tata as chairman of Tata Trusts. Those discussions involved divisions within the trusts and proposed regulations affecting Tata Sons' corporate structure.

In June, Noel Tata met senior Reserve Bank of India officials to raise concerns over a potential Tata Sons initial public offering, the Times of India reported. An IPO could dilute the trusts' control over Tata Sons and has been a subject of debate within the group.

Tata Sons is the principal investment holding company and promoter of the Tata Group, whose businesses include Tata Consultancy Services, Tata Motors and Air India.

The selection committee's work will now determine who succeeds Chandrasekaran, who took over as Tata Sons chairman in 2017.