The internal rift within the Tata Group is no longer confined to internal circles; the ongoing battle for supremacy is now heading to court. Tata Trusts has appointed senior advocate Abhishek Manu Singhvi to provide legal counsel and represent them in court. The dispute arose after the Tata Sons board agreed to reappoint N. Chandrasekaran as Chairman. Following this appointment, Noel Tata, the head of Tata Trusts, issued a statement terming the move as contrary to the rules.
Reacting to the appointment, Abhishek Manu Singhvi stated that he is becoming a part of this entire matter with deep sadness and regret, as he has previously worked with Ratan Tata and is well-acquainted with both parties involved in the dispute. Writing on the social media platform ‘X’, Singhvi stated that rendering shareholders’ ownership rights meaningless would create a crisis for hundreds of Indian companies and adversely affect their corporate governance.
Singhvi also referred to the Tata-Mistry dispute in his post, noting that the Supreme Court had clearly prioritized Tata Trusts in that matter. He remarked that this verdict appears to have been overlooked. He further added that, unfortunately, due to a lack of mutual cooperation and goodwill, legal recourse remains the only path to resolving this entire issue. Controversy Surrounding N. Chandrasekaran’s Appointment
The tenure of N. Chandrasekaran, the current Chairman of Tata Sons, is set to conclude in February next year. He had requested not to be considered for reappointment; however, the Tata Sons board decided to reappoint him as Chairman during a meeting held on September 17. Noel Tata, Chairman of Tata Trusts, opposed this appointment. It is worth noting that Tata Trusts holds a 66 percent stake in Tata Sons.
Amidst these developments, the Reserve Bank rejected a plea to exempt Tata Sons from classification as an NBFC (Non-Banking Financial Company). Consequently, listing Tata Sons has now become mandatory under existing regulations. On the other hand, Tata Trusts does not want this, and they do not agree with the listing process.
