A noticeable irony unfolded on Thursday as advertisements in major national newspapers highlighted Ratan Tata’s esteemed legacy, praising his humility as the beacon of the Tata Group, while internal discord persisted within Tata Trusts.
The juxtaposition was stark. While the Tata Group ads lauded a man synonymous with humility and modesty, internal conflicts among trustees regarding board appointments and governance issues plagued an organization that prides itself on the very values Ratan Tata embodied.
Significantly, the turmoil within Tata Trusts, the primary shareholder of Tata Sons, coincided with the first anniversary of Ratan Tata’s passing. The venerable industrialist and philanthropist passed away on October 9, 2024, in Mumbai at the age of 86 after a prolonged illness.
“A life of purpose. A legacy of impact. His legacy of transforming philanthropy into a force for national progress shall always be our guiding light,” expressed Tata Trusts in their tribute advertisement.
Tata Sons also released an ad in another prominent daily. “The lessons you taught us in humility, purpose, and generosity will forever remain with us,” the tribute conveyed.
However, beneath the outwardly crafted homage to one of India’s beloved industrialists, discord among Tata Trusts’ trustees escalated. The government had to intervene, urging top Tata Group executives to restore stability as the crisis threatened to impact the conglomerate’s USD 180 billion operations.
WHAT IS THE FEUD ALL ABOUT?
Amidst the internal strife, Home Minister Amit Shah and Finance Minister Nirmala Sitharaman convened a high-level meeting with Tata Trusts’ head Noel Tata and Tata Sons’ chairperson N Chandrasekaran.
The core of the conflict revolves around a disagreement between a faction aligned with Noel Tata and four trustees, led by Mehli Mistry from the Shapoorji Pallonji family, which holds an 18% stake in Tata Sons.
The four trustees – Darius Khambata, Jehangir HC Jehangir, Pramit Jhaveri, and Mehli Mistry – have reportedly been advocating for more influence over crucial appointments and board oversight at Tata Sons, much to the opposition of Noel Tata.
At stake is the control of the 156-year-old corporate behemoth and its 400 subsidiaries. While the Tata Group has not issued a statement yet, the unfolding crisis’s resolution in the coming days remains uncertain.