The board of Tata Sons Pvt. has postponed a decision on granting Chairman Natarajan Chandrasekaran a third term, according to people familiar with the matter. This delay signals growing uncertainty about the leadership succession at India's oldest conglomerate, which controls over 100 companies across sectors from steel to software.

The deferral comes as Tata Sons faces increasing scrutiny over its governance structure and succession planning. Chandrasekaran, who previously led Tata Consultancy Services, has been credited with driving digital transformation across the group. However, his potential third term has sparked debate among stakeholders about leadership continuity and the conglomerate's future direction.

This leadership uncertainty could impact investor confidence and strategic decisions across Tata's vast business empire. The conglomerate's market capitalization exceeds $300 billion, making any governance questions particularly significant for India's corporate landscape. The board's hesitation suggests deeper tensions about the company's leadership trajectory and succession planning.