Noel Tata, Chandrasekaran meet Shah amid dispute with SP Group:Govt attempts a reconciliation between Tata Shapoorji Pallonji Groups

Tata Trusts, chairman, Noel Tata and Tata Sons, chairman, N Chandrasekaran met the Union Home Minister Amit Shah and Finance Minister Nirmala Sitharaman on Tuesday. Vice Chairman Venu Srinivasan and Trustee Darius Khambatta were also present in the meeting held amid the ongoing tussle between trustees over board appointments and administrative issues. The meeting is considered important amid concerns that the ongoing dispute in Tata Trust could affect the ₹15.9 lakh crore group. Meanwhile, a major initiative has been taken to end the dispute between Tata Group and Shapoorji Pallonji Group. Tata Trusts may offer to sell 4-6% stake in Tata Sons to SP Group. This step is necessary for SP Group as it has to repay a debt of ₹30,000 crore. The government’s concern is that SP Group, which is important for the country’s economy, may default due to heavy debt. Accusation of Weakening Leadership Tata Trusts holds 66% stake in Tata Sons. According to reports, there is a rift between one faction of Noel Tata, who became chairman after Ratan Tata, and another group led by Mehli Mistry (SP Group). Four trustees are accused of weakening Noel’s leadership and acting as a ‘super board’. Tata Trusts board meeting is scheduled for October 10. What is the ongoing power controversy in Tata Trust Tata Trusts, the promoter and holding company of this group that does business from salt to semiconductors, has a deep impact on the Indian economy through its nearly 66% stake in Tata Sons. There are two factions in Tata Trusts, one of which is associated with Noel Tata, who was appointed chairman of the trusts after Ratan Tata’s death. The second group of four trustees is led by Mehli Mistry, who is related to the extended Shapoorji Pallonji family, which holds approximately 18.37% stake in Tata Sons. Mehli allegedly feels that he has been kept away from important matters. According to sources, the main cause of dispute is seats on the Tata Sons board, which controls the 156-year-old group that includes about 400 companies including 30 listed firms. A source said, “Given the importance of the Tata Group to the country’s economy, the biggest question before the government is whether it can hand over control to a single person. The internal conflict between Tata Trusts trustees is also affecting Tata Sons.” Dispute escalated after September meeting Noel is Naval Tata’s Second Wife’s Son Noel is the son of Naval Tata’s second wife Simone. Meanwhile, Ratan Tata and Jimmy Tata are the children of Naval and his first wife Sooni. Noel studied at the University of Sussex. Noel started his career with Tata International. In 1999, he was made the Managing Director of Trent, the group’s retail division. It was started by his mother Simone. In 2010-11, he was appointed as the chairman of Tata International. After this, discussions began about him becoming the group’s chairman. Meanwhile, Cyrus Mistry expressed his desire to become the chairman of Tata Group. Subsequently, Cyrus Mistry was removed from the position of Tata Sons chairman and Ratan Tata took control of the group. In 2018, he was made the vice chairman of Titan and in 2017, he was inducted into the board of the Trust. ​