Internal strife in Tata Group: Amit Shah steps in, supports Noel Tata amidst family conflict

The conflict has intensified, with Union Home Minister Amit Shah stepping in to mediate, offering support to Noel Tata in a bid to maintain stability in the group.

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Rajesh Hiremath
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A significant internal tussle has emerged within the Tata Group, as Tata Sons Chairman Noel Tata and the Shapoorji Pallonji family vie for control of the conglomerate. The conflict has intensified, with Union Home Minister Amit Shah stepping in to mediate, offering support to Noel Tata in a bid to maintain stability in the group.

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The Tata Group, an iconic institution integral to India’s economic development, is currently grappling with a leadership crisis following the death of Ratan Tata. As the group’s former chairman, Ratan Tata’s passing has led to divisions among board members, with Noel Tata, a relative of Ratan Tata, assuming the position of Chairman of Tata Trust since last year. Tata Trust holds a 66% stake in Tata Sons, which in turn controls over 400 companies spanning sectors such as steel, automotive, software, and consumer goods.

Shapoorji Pallonji family owns 18% stake in Tata Sons

The Shapoorji Pallonji family, which owns an 18% stake in Tata Sons, is pushing for greater influence, creating a rift between the trustees. Mehli Mistry, Prameet Zaveri, Jehangir HC Jehangir, and Darius Kambhata—members of the Pallonji family—have raised concerns over Noel Tata’s leadership, accusing him of making decisions unilaterally. In response, Noel Tata’s supporters, including prominent trustee Venu Srinivasan, claim these four individuals are hindering progress and attempting to undermine his authority.

Amid this escalating conflict, Amit Shah and Finance Minister Nirmala Sitharaman held talks with Noel Tata, N. Chandrasekaran, and Venu Srinivasan on October 7. The government leaders advised the removal of obstructive trustees and assured support for key decisions to maintain the group's stability. Following the intervention, Tata Group shares saw a surge in the stock market.

Tata Group, with over 400 subsidiaries and a market capitalisation of approximately ₹38-40 lakh crore, is a cornerstone of India’s economy. The government's intervention underscores the national importance of the conglomerate. A crucial Tata Trust Board meeting is scheduled for October 10, where a decision on a ₹1,000 crore donation is expected.

The outcome of these developments will determine the future course of the Tata Group and its leadership.

Tata Group Shapoorji Pallonji family Tata Sons Chairman Noel Tata
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