Tata Trusts Board Meets Amid SP Group Dispute; Key Discussions Likely to Stay Off Agenda

Digital Desk

A meeting of the Tata Trusts board is scheduled for October 10, 2025, just a day after Ratan Tata’s death anniversary. This is the first board session since the government intervened in the ongoing tussle between the Tata Group and the Shapoorji Pallonji (SP) Group.

However, reports suggest that discussions on sensitive issues—such as governance or leadership matters—are unlikely. The agenda is expected to focus on approving funds for healthcare initiatives, and the meeting atmosphere is expected to remain calm following central government mediation.

Government Intervention Beforehand

On October 7, a key meeting was held at Home Minister Amit Shah’s residence to address tensions over Tata Sons’ board representation. The 45-minute discussion, attended by Shah, Finance Minister Nirmala Sitharaman, Tata Trusts Chairman Noel Tata, Vice-Chairman Venu Srinivasan, Tata Sons Chairman N. Chandrasekaran, and Trustee Darius Khambata, emphasized resolving internal disputes quickly to protect company stability.

Currently, four board seats at Tata Sons remain vacant. The board presently includes N. Chandrasekaran, Noel Tata, Venu Srinivasan, Harish Manwani, and Saurabh Agarwal. As of March 2024, Tata Sons’ valuation stood at ₹27.85 lakh crore, while the overall Tata Group’s market value is around ₹15.9 lakh crore.

The Tata–SP Dispute in Brief

1. The dispute began after a September 11 Tata Trusts meeting, where trustees were to discuss reappointing former Defence Secretary Vijay Singh as a nominee director on Tata Sons’ board. Singh, 77, did not attend.

2. Following Ratan Tata’s death (October 9, 2024), a rule was introduced requiring annual reappointment for directors above 75.

3. The proposal, backed by Noel Tata and Venu Srinivasan, was rejected by four trustees — Mehli Mistry, Pramit Jhaveri, Jehangir H.C. Jehangir, and Darius Khambata.

4. A counterproposal to nominate Mehli Mistry to Tata Sons’ board was blocked by Noel Tata and Srinivasan. After the meeting, Vijay Singh resigned from Tata Sons’ board.

5. The dissenting trustees, led by Mehli Mistry, are linked to the SP Group, which holds an 18.37% stake in Tata Sons. Mistry reportedly expressed frustration over being sidelined from key decisions.

Possible Resolution on the Horizon

According to insider reports, Tata Trusts and Tata Sons are considering allowing the SP Group to sell 4–6% of its stake in Tata Sons. The move could help the SP Group raise funds to repay its ₹30,000 crore debt, marking a potential step toward resolving the long-standing rift between the two corporate houses.