The government has asked the Tata Group leadership to restore stability within Tata Trusts and over to affect Tata Sons, reported The Economic Times.
In a nearly hour-long meeting held at home minister Amit Shah’s residence, Shah and Finance Minister Nirmala Sitharaman are understood to have delivered a firm message to Tata Trusts chairman Noel Tata, vice-chairman Venu Srinivasan, Tata Sons chairman N Chandrasekaran, and trustee Darius Khambata.
The meeting, as reported by ET, was aimed at maintaining calm within the Tata Trusts, which holds a controlling stake in Tata Sons, the holding company of India’s largest conglomerate.
As per the report the ministers told the Tata leadership that stability must be restored “by whatever means necessary” and that internal rifts within the Trusts should not be allowed to impact the broader functioning of Tata Sons. The government is said to be deeply concerned that the discord among trustees could spill over into the governance and management of group companies.
The firm message, included encouragement for the Tata leadership to take decisive steps, even suggesting the removal of any trustee whose actions could destabilise the group’s functioning.
The ministers are also understood to have reminded the Tata representatives that the Trusts’ majority shareholding in Tata Sons comes with a “public responsibility,” given the group’s size, market influence, and importance to the Indian economy.
The report added that the talks also covered regulatory matters such as the Reserve Bank of India’s (RBI) mandate for the listing of upper-layer non-banking financial companies (NBFCs), including Tata Sons. The discussions are believed to have also touched upon finding a liquidity solution for the Shapoorji Pallonji Group, which is Tata Sons’ second-largest shareholder.
After the meeting, the four Tata representatives reportedly held a brief internal discussion before returning to Mumbai. They are expected to attend a two-day remembrance event marking the first death anniversary of former Tata Sons chairman Ratan Tata, who passed away on October 9, 2024.
The government has taken a stern view of the ongoing tensions and wants the Trusts to resolve their differences internally and discreetly, without public confrontation or escalation.
Shares of several Tata Group companies were trading higher on Tuesday morning. Titan Company shares rose nearly 4% to Rs 3,552.80 after it reported a 20% year-on-year growth in consumer businesses for the July–September quarter of FY26. The company’s international business saw an 86% rise in revenue during the period.
Tata Consultancy Services (TCS) shares were up about 2% at Rs 3,025 as of 9:35 am. The company has cancelled its scheduled press conference for its Q2 FY26 results, which was originally planned for October 9, as the date coincides with Ratan Tata’s death anniversary. However, TCS confirmed that its analyst call will go ahead as planned.
Tata Steel shares edged up 0.4% to Rs 172.14, while Trent was trading 0.5% higher at Rs 4,709. Tata Technologies was also up 0.5% at Rs 716.50. Tata Motors, however, slipped 0.34% to Rs 695.65 as of 9:30 am.
The developments come at a time when the Tata Group is under close government and market scrutiny over the governance challenges within Tata Trusts, which owns about 66% of Tata Sons.