Divided Tata house does not inspire confidence

Opinion Divided Tata house does not inspire confidence The group.

Key points

• 3 min readSep 21, 2026 06: 10 AM IST First published on: Sep 21, 2026 at 06: 00 AM IST.
• A bitter power struggle is raging within the Tata Group.
• A prolonged period of ambiguity over leadership and the matter of public listing is undesirable and will raise questions over the functioning of the group.
• Internal conflicts in the group have been simmering for some time.

Opinion Divided Tata house does not inspire confidence The group. It is engaged throughout a substantial spectrum of activities including areas of national importance, cannot afford a period of uncertainty and instability. The Tatas must put their house in order.

Notably, a bitter power struggle is raging within the Tata Group. Barely a month after N Chandrasekaran, Tata Sons chairman, confirmed his decision to not seek an extension, the board of the holding business has approved another five year term for him. This dramatic turn of events came even as Noel Tata, chairman of Tata Trusts, resisted the decision. The Tata Sons board has, in other words, gone against its largest shareholder – Tata Trusts hold regarding 66 per cent stake in the holding business. These developments, rather than resolving differences, bringing a finality to the leadership question and placing the group on stronger footing, could well precipitate an institutional crisis. A protracted legal battle may ensue. This would be neither in the best interests of the group, its shareholders nor the larger economy.

Internal conflicts in the group have been simmering for some time. Noel Tata and Chandrasekaran have reportedly had solid differences of opinion on a number of problems. The Tata trustees have themselves been at loggerheads. Parallels can be drawn of similar power struggles. When Ratan Tata took over as chairman he had eased out the powerful old satraps, for instance. The ouster of Cyrus Mistry as chairman of Tata Sons was equally bitter. But, there is another element to the recent boardroom machinations that will have far-reaching ramifications for the group. The board has additionally decided to pursue a public listing after RBI's decision to reject Tata Sons' application to surrender its registration as a core investment firm. This decision too was resisted by Noel Tata. This person has stated his intention to keep the business private. These matters are now probable to move to the annual general gathering where both the decisions will be put to the test.

Meanwhile, a prolonged period of ambiguity over leadership and the matter of public listing is undesirable and will raise questions over the functioning of the group. The questions that have arisen over leadership and succession, over the group's governance structure, the limits of control, and the relationship between the trusts, the holding firm and the operating entities, need to be clearly answered and resolved. The lines of power and accountability need to be clearly delineated and greater transparency in dealings and operations must be pursued. The group, which is engaged throughout a substantial spectrum of activities including areas of national importance, cannot afford a period of uncertainty and instability. Notably, the Tatas must put their house in order.

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Taken together, the developments around divided Tata house does not inspire confidence point to a situation that is still moving, and the coming days should bring more clarity.