New Delhi: Finance Minister Nirmala Sitharaman has urged the leadership of the Tata Group to resolve its internal differences privately, stressing that the dispute between Tata Sons and Tata Trusts carries significant importance for the Indian economy and should not become a public confrontation.
Speaking in Mumbai on Monday, Sitharaman described the matter as delicate and said resolving it would require business understanding, mutual respect and cordiality among the leaders involved. She also highlighted the Tata Group’s global reputation and its contribution to India’s economy.
She refrained from indicating whether the government would intervene or facilitate discussions between the two sides. Instead, she called on the leadership to engage directly and restore normalcy within the conglomerate at the earliest.
Sitharaman pointed out that the Tata Group has investments across several important sectors, making its stability crucial to the country’s economic interests. She expressed hope that the differences would be settled through an amicable discussion and mature leadership.
The dispute within the 158-year-old conglomerate involves Tata Sons, headed by chairman N Chandrasekaran, and Tata Trusts, chaired by Noel Tata. Differences that had reportedly been developing for several months became public during a board meeting on September 17.
The disagreement centres on two major issues: the proposed stock market listing of Tata Sons and Chandrasekaran’s continuation as chairman.
The developments followed the Reserve Bank of India rejecting Tata Sons’ request to withdraw its registration as a core investment company. Subsequently, the Tata Sons board decided to proceed with a listing in line with the central bank’s requirements and approved Chandrasekaran’s reappointment.
Noel Tata was the only director to oppose both decisions, while Venu Srinivasan, another Tata Trusts nominee, supported the majority.
Tata Trusts holds approximately 66 per cent of Tata Sons, while the Shapoorji Pallonji Group owns around 18.4 per cent.
