Archive · 19 Sep 2026
Tata Power Struggle Deepens as Chandrasekaran Agrees to Stay
Natarajan Chandrasekaran had planned to leave his job leading Tata Sons in 2027.
He changed his mind and agreed to stay for five more years.
Most of the Tata Sons board supported him, but Noel Tata voted against the decision.
Noel leads Tata Trusts, which owns most of Tata Sons.
Tata Trusts says the reappointment was not legally valid.
The two sides also disagree about whether Tata Sons should become a publicly traded company.
Tata Sons says it should take steps toward a listing, while the Trusts wants to keep it private.
The group is also dealing with losses at Air India and problems at Jaguar Land Rover.
The disagreement could lead to a court fight and create uncertainty for the conglomerate.
Natarajan Chandrasekaran agreed to remain Tata Sons chairman for another five years after previously planning to leave in February 2027.
The Tata Sons board backed his reappointment, with Noel Tata reportedly the only director to vote against it.
Tata Trusts, which owns 66% of Tata Sons, called the reappointment a legal nullity and may challenge it.
The dispute also concerns whether Tata Sons should list publicly and how to address a proposed $2.6 billion stake buyback for Shapoorji Pallonji Group.
Tata faces major business pressures, including Air India losses, a Jaguar Land Rover downturn and large investments in electronics and semiconductors.
- Who
- Natarajan Chandrasekaran, Tata Sons, Tata Trusts, Noel Tata and Venu Srinivasan are the principal parties involved.
- What
- Chandrasekaran was backed for a third five-year term as Tata Sons chairman after reversing his decision to leave.
- When
- The decisive board meeting took place on September 17, five weeks after Chandrasekaran announced he would not seek another term; his current term ends in February 2027.
- Where
- The decision was made at Tata Sons' headquarters, Bombay House, in Mumbai.
- Why
- The board supported Chandrasekaran amid disagreements over leadership, a possible Tata Sons listing, shareholder liquidity and major business challenges.
Tata Trusts
Tata Sons Board
Validity of Chandrasekaran's reappointment
Tata Trusts
Tata Trusts says the appointment is illegal or a legal nullity, arguing that the Trusts' nominated directors must support a chairman's reappointment and that Chandrasekaran had already agreed to leave.
Tata Sons Board
The Tata Sons board proceeded on the basis that a majority supported the reappointment; Chandrasekaran recused himself while the other directors considered the resolution.
Whether Tata Sons should list
Tata Trusts
Tata Trusts wants Tata Sons to remain private, arguing that a listing would damage the character of the company and its charitable ownership structure.
Tata Sons Board
Tata Sons said it would take steps toward complying with listing requirements after the Reserve Bank of India rejected its exemption request; listing supporters say it could improve transparency and provide shareholder liquidity.
How to provide liquidity to a shareholder
Tata Trusts
Noel Tata proposed buying back part of Shapoorji Pallonji Group's stake and using internal funds, asset sales and other financing rather than listing Tata Sons.
Tata Sons Board
The board's position, as reported, favors pursuing steps toward a public listing, which could provide a different route for shareholders to unlock value.
- Tata Trusts ownership
- Tata Trusts owns 66% of Tata Sons.
- Proposed term
- Chandrasekaran was backed for another five years as chairman.
- Board vote
- Reports describe the decision as 4-1, with Noel Tata as the only opposing director; Venu Srinivasan supported Chandrasekaran.
- Air India losses
- Air India and its group companies recorded combined annual losses of $2.33 billion.
- Potential stake buyback
- A proposal would have Tata Sons buy back part of Shapoorji Pallonji Group's 18.4% stake for at least 250 billion rupees, or about $2.6 billion.
- Market capitalization
- The combined market capitalization of Tata companies rose from $76 billion in 2017 to $277 billion by March 31.
- Possible legal challenge
- Tata Trusts may challenge the reappointment in court, and shareholder approval is expected at Tata Sons' next annual meeting.
