Inside Tata Sons’ boardroom battle: Chandra’s return, listing and Noel Tata’s objection

A fresh dispute has surfaced within the Tata Group after Tata Sons decided to retain N Chandrasekaran as its executive chairman and move ahead with plans to list the holding company. However, Tata Trusts chairman Noel Tata has opposed the decisions, calling them “illegal.”

The decisions were taken during a meeting of the Tata Sons board at Bombay House in Mumbai on September 17. The meeting lasted about three hours and focused on the company’s future leadership and the proposed stock market listing of Tata Sons.

The board voted 4-1 in favour of extending Chandrasekaran’s tenure by another five years. The decision came weeks after he announced in August that he would not seek another term after his current tenure ends in February 2027.

According to Tata Sons, “Chandra acceded to the Board’s request to reconsider his decision”, adding, “The Board thereafter resolved by a majority vote to re-appoint him as Executive Chairman for a further term of five years upon the expiry of his current tenure.”

Why Tata Sons wants Chandra to continue

Chandrasekaran’s continuation is closely linked to the proposed listing of Tata Sons. The board wants him to remain at the helm as the holding company begins the process of becoming a listed entity.

The listing decision comes shortly after the Reserve Bank of India rejected Tata Sons’ request for an exemption from regulations that require the company to list.

While the board has agreed to proceed with the plan, Noel Tata has opposed it. Tata Trusts said the company should explore other options, arguing that its ownership structure is different because its largest shareholder is a charitable trust.

The Trusts said a “listing will destroy its character and strike at the heart of this principle.”

The Shapoorji Pallonji Group, the second-largest shareholder in Tata Sons, has backed the possibility of a listing. The group is headed by Shapoor Mistry, whose sister is married to Noel Tata.

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Tata Trusts holds 66% stake

Tata Trusts owns 66% of Tata Sons and is headed by Noel Tata, who belongs to the family that founded the conglomerate. Dividends generated by Tata operating companies are received by the Trusts and channelled into public charity.

The dispute has now put the future leadership of Tata Sons and its listing plans at the centre of a wider boardroom battle.

The next key stage will be the company’s Annual General Meeting (AGM), where Chandrasekaran will need to secure reappointment as chairman. Tata Trusts, as the majority owner, will have a key role in that decision.

According to a Moneycontrol report, Noel is planning to oust Chandrasekaran at the next AGM of Tata Trusts, which has to be held before December 31.

Founded in 1868, the Tata Group now operates in more than 100 countries across six continents. Tata Sons oversees more than 30 Tata companies, including Tata Consultancy Services, Tata Motors and Tata Steel.

The companies under the group generated combined revenue of $185 billion in the last financial year. Its 26 listed companies had a combined market value of $277 billion as of March 31, 2026, according to Tata’s website.

Each of these businesses operates with an independent board and management.