Noel Tata, chairman of Tata Trusts, is embroiled in a governance dispute as two key trustees from Sir Dorabji Tata Trust (SDTT) challenge his unilateral restructuring proposal. Venu Srinivasan and Vijay Singh claim Noel pushed a plan to fold Tata Electronics Systems Solutions and Tata Consulting Engineers into Tata Sons without consulting the board, potentially bypassing a mandatory public listing. In a September 30 letter and a petition filed in Maharashtra, they argue the communication issued in the Trusts’ name does not reflect collective institutional position and raise concerns about governance and interference in commercial affairs.
The dispute follows prior board clashes where Srinivasan and other directors overruled Noel on RBI listing requirements and the reappointment of Tata Sons chairman. The trustees stress that decisions of this magnitude require collective deliberation, recalling past agreements under Ratan Tata that Trusts should not run businesses. Meanwhile, Noel warns that a listing could expose Tata Sons to hostile takeovers.
The regulator has already barred Sir Ratan Tata Trust from board actions pending inquiry, adding to the escalating internal power struggle within India’s $185 billion conglomerate.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing