N Chandrasekaran will step down as chairman of Tata Sons when his current term ends on February 20, 2027, ending his tenure after the board failed to reach a unanimous decision on his reappointment.

Chandrasekaran has decided not to seek another term and has asked the Tata Sons board to begin the succession process, stressing the importance of leadership clarity for employees, investors and other stakeholders.

The decision follows reported differences between Tata Sons and Tata Trusts, which holds a 66% stake in Tata Sons. Tata Trusts had recommended a five-year extension for Chandrasekaran, but the proposal did not receive unanimous support from the Tata Sons board.

The reported disagreements involve representation, the group's future strategy, Air India's losses and the possibility of Tata Sons eventually being listed.

N Chandrasekaran to Exit Tata Sons Chairmanship in February 2027

R Venkataramanan, the managing trustee of the Tata Trusts, a string of non-profits that own 66 per cent of the diversified Tata Sons, has resigned.

In another significant development, Ratan Tata’s half-brother Noel Tata has been appointed as a trustee of the Sir Ratan Tata Trust, the second largest among the dozen-odd charities that make up the Tata Trusts.

Venkataramanan’s Rs 2.66-crore annual compensation has been under the income tax scanner and led it to withdraw tax exemption to the Sir Dorabji Tata Trust-the largest of all the trusts–in December 2018.

Speculation is rife that Venkat, as Venkataramanan is popularly known, may shift to London in some new role within the Tata group.

Considered very close to Ratan Tata, the group patriarch and the chairman of the trusts, Venkat is also under the scanner in a money laundering case involving AirAsia India which is being probed by the Central Bureau of Investigation.

He will relinquish from the trusts on March 31, the statement said.

A committee of trustees, comprising Ratan Tata, and vice-chairmen Vijay Singh and Venu Srinivasan, has been set up to oversee the operations and select a new chief executive for the trusts, it said.

The trustees also placed on record Venkat’s contribution in “steering and executing the objectives” of the trusts’ portfolios over the last five years.

In addition to the interventions through grants, the Tata Trusts also pursues large-scale programmes through direct implementation and partnerships with many states and foundations, it said.

Noel Tata is the chairman of the group’s retail arm Trent and also the managing director of Tata International, that group arm that scouts for new business opportunities outside the country.

He has been appointed as the trustee of Sir Ratan Tata Trust along with Jehangir HC, who is currently spearheading the healthcare mission at the Jehangir Hospital, Pune, the statement said.

Speculation about Venkat’s resignation was rife since last Friday, following the I-T order. There were reports about some trustees not happy with Venkat’s high compensation of Rs 2.66 crore.

Some of the trustees were also very critical of the allegations relating to the income tax order that withdrew tax exemptions to the trusts, which is the largest and the oldest public charity in the country, sources said.

The Dorabji Tata Trust has appealed against the I-T order, though the contents of the order are not known yet.

R Venkataramanan, the managing trustee of the Tata Trusts, a string of non-profits that own 66 per cent of the diversified Tata Sons, has resigned. In another significant development, Ratan Tata’s half-brother Noel Tata has been appointed as a trustee of the Sir Ratan Tata Trust, the second largest among the dozen-odd charities that make up the Tata Trusts.

R Venkataramanan, the managing trustee of the Tata Trusts, a string of non-profits that own 66 per cent of the diversified Tata Sons, has resigned. In another significant development, Ratan Tata’s half-brother Noel Tata has been appointed as a trustee of the Sir Ratan Tata Trust, the second largest among the dozen-odd charities that make up the Tata Trusts. Venkataramanan’s Rs 2.66-crore annual compensation has been under the income tax scanner and led it to withdraw tax exemption to the Sir Dorabji Tata Trust-the largest of all the trusts–in December 2018. Speculation is rife that Venkat, as Venkataramanan is popularly known, may shift to London in some new role within the Tata group. Considered very close to Ratan Tata, the group patriarch and the chairman of the trusts, Venkat is also under the scanner in a money laundering case involving AirAsia India which is being probed by the Central Bureau of Investigation. He will relinquish from the trusts on March 31, the statement said. A committee of trustees, comprising Ratan Tata, and vice-chairmen Vijay Singh and Venu Srinivasan, has been set up to oversee the operations and select a new chief executive for the trusts, it said. The trustees also placed on record Venkat’s contribution in “steering and executing the objectives” of the trusts’ portfolios over the last five years. In addition to the interventions through grants, the Tata Trusts also pursues large-scale programmes through direct implementation and partnerships with many states and foundations, it said. Noel Tata is the chairman of the group’s retail arm Trent and also the managing director of Tata International, that group arm that scouts for new business opportunities outside the country. He has been appointed as the trustee of Sir Ratan Tata Trust along with Jehangir HC, who is currently spearheading the healthcare mission at the Jehangir Hospital, Pune, the statement said. Speculation about Venkat’s resignation was rife since last Friday, following the I-T order. There were reports about some trustees not happy with Venkat’s high compensation of Rs 2.66 crore. Some of the trustees were also very critical of the allegations relating to the income tax order that withdrew tax exemptions to the trusts, which is the largest and the oldest public charity in the country, sources said. The Dorabji Tata Trust has appealed against the I-T order, though the contents of the order are not known yet.

R Venkataramanan quits Tata Trusts; Noel joins Ratan Tata Trust

Ratan Tata is &quot;most likely&quot; to step down as the chairman of&nbsp;Tata Trusts, which control a 66 per cent stake in the $100 billion Tata conglomerate&#39;s holding company Tata Sons, said a Times of India report citing Tata&#39;s long-time confidant RK Krishna Kumar.

The Trusts have asked an external consultant to advise them on the selection process, which could be completed by the middle of next year, said Krishna Kumar according to the report, adding that the next chairman of the Trusts will be an Indian, but not necessarily a member of the Tata family.

The role of the Trusts has been at the centre of the ongoing feud between Tata and Tata Sons&#39; ousted chairman Cyrus Mistry.

Tata Trusts and Tata Sons were not immediately reachable for comment on the Times of India report.

&quot;The next chairman has to be someone who has the right vision and be in complete alignment with the will of the Tata Group founders,&quot; said Krishna Kumar, a group veteran and a trustee of the Tata Trusts, according to the report.

He added that Tata&#39;s successor at the Tata Trusts could be an external person even though the current trustees are free to suggest potential candidates, the report said.

In public letters to group company shareholders, Mistry has said the trustees abused their position by calling for information and seeking discussions on matters they considered material and dictating Tata Sons&#39; decisions using veto right of their nominee directors.

Tata Sons has rejected those claims&nbsp;and has blamed Mistry for governance lapses.

(Reuters)

According to a Times of India report, the next chairman will be an Indian, but not necessarily a member of the Tata family

Ratan Tata is "most likely" to step down as the chairman of Tata Trusts, which control a 66 per cent stake in the $100 billion Tata conglomerate's holding company Tata Sons, said a Times of India report citing Tata's long-time confidant RK Krishna Kumar. The Trusts have asked an external consultant to advise them on the selection process, which could be completed by the middle of next year, said Krishna Kumar according to the report, adding that the next chairman of the Trusts will be an Indian, but not necessarily a member of the Tata family. The role of the Trusts has been at the centre of the ongoing feud between Tata and Tata Sons' ousted chairman Cyrus Mistry. Tata Trusts and Tata Sons were not immediately reachable for comment on the Times of India report. "The next chairman has to be someone who has the right vision and be in complete alignment with the will of the Tata Group founders," said Krishna Kumar, a group veteran and a trustee of the Tata Trusts, according to the report. He added that Tata's successor at the Tata Trusts could be an external person even though the current trustees are free to suggest potential candidates, the report said. In public letters to group company shareholders, Mistry has said the trustees abused their position by calling for information and seeking discussions on matters they considered material and dictating Tata Sons' decisions using veto right of their nominee directors. Tata Sons has rejected those claims and has blamed Mistry for governance lapses. (Reuters)

Ratan Tata 'most likely' to step down as chairman of Tata Trusts: Report

India&#39;s Income Tax (IT) department has summoned Tata Trusts to explain the misuse of tax exemption granted to the trusts for charitable purposes, reported Indian business daily, Business Standard.

A Comptroller and Auditor General (CAG) report of 2013 had stated that the trusts are earning huge profit instead of using it for charitable purposes. The IT department has thus asked the executive trustee of Tata trusts, R Venkataramanan, to give it an explanation on Friday evening in Mumbai.

The trusts headed by Ratan Tata are using surplus funds for creating fixed assets or are transferred to other trusts to avoid tax, the CAG alleged. Its audit stated that the 22 trusts under scrutiny have accumulated surpluses to the tune of Rs 819 crore.

The CAG also accused the IT department for allowing irregular exemptions to Jamshetji Tata Trust and Navajbai Ratan Tata Trust.

The Business Standard report said that the Jamshetji Tata Trust and Navajbai Ratan Tata Trust earned Rs 1,905 crore and Rs 1,234 crore from capital gains during 2009 and 2010, respectively, as stated by CAG.

They invested this amount in prohibited mode of investments, which is in contravention to the provisions of Section 13(1)(d) of the Income Tax Act, the business daily reported.

The summons for Friday are part of the promise made by India&#39;s ministry of finance to take action.

(WION with inputs from agencies)

A Comptroller and Auditor General report of 2013 had stated that the trusts are earning huge profit instead of using it for charity

India's Income Tax (IT) department has summoned Tata Trusts to explain the misuse of tax exemption granted to the trusts for charitable purposes, reported Indian business daily, Business Standard. A Comptroller and Auditor General (CAG) report of 2013 had stated that the trusts are earning huge profit instead of using it for charitable purposes. The IT department has thus asked the executive trustee of Tata trusts, R Venkataramanan, to give it an explanation on Friday evening in Mumbai. The trusts headed by Ratan Tata are using surplus funds for creating fixed assets or are transferred to other trusts to avoid tax, the CAG alleged. Its audit stated that the 22 trusts under scrutiny have accumulated surpluses to the tune of Rs 819 crore. The CAG also accused the IT department for allowing irregular exemptions to Jamshetji Tata Trust and Navajbai Ratan Tata Trust. The Business Standard report said that the Jamshetji Tata Trust and Navajbai Ratan Tata Trust earned Rs 1,905 crore and Rs 1,234 crore from capital gains during 2009 and 2010, respectively, as stated by CAG. They invested this amount in prohibited mode of investments, which is in contravention to the provisions of Section 13(1)(d) of the Income Tax Act, the business daily reported. The summons for Friday are part of the promise made by India's ministry of finance to take action. (WION with inputs from agencies)

Tata Trusts get summons from India's income tax department

Cyrus Mistry, the ousted chairman of Tata Sons, has filed four caveats against Ratan Tata and Dorabji Tata Trust at the National Company Law Tribunal, news channel CNBC TV18 reported on Tuesday.

Earlier in the day, media reported that Tata Sons had also filed caveats in all courts including the National Company Law Tribunal.

A caveat usually ensures that the court does not issue any order without allowing the other side to appear.

(Reuters)

Earlier in the day, media reported that Tata Sons had also filed caveats in all courts including the National Company Law Tribunal

Cyrus Mistry, the ousted chairman of Tata Sons, has filed four caveats against Ratan Tata and Dorabji Tata Trust at the National Company Law Tribunal, news channel CNBC TV18 reported on Tuesday. Earlier in the day, media reported that Tata Sons had also filed caveats in all courts including the National Company Law Tribunal. A caveat usually ensures that the court does not issue any order without allowing the other side to appear. (Reuters)

Cyrus Mistry files four caveats against Tata trusts: Media

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N Chandrasekaran to Exit Tata Sons Chairmanship in February 2027

R Venkataramanan quits Tata Trusts; Noel joins Ratan Tata Trust

Ratan Tata 'most likely' to step down as chairman of Tata Trusts: Report

Tata Trusts get summons from India's income tax department

Cyrus Mistry files four caveats against Tata trusts: Media