N Chandrasekaran steps down: How power struggle at Tata group is deepening with exit of Ratan Tata’s key allies

N Chandrasekaran’s decision to step down as Tata Sons chairman after his current tenure ends in February 20207 has brought to light the power struggle within the Tata group.His decision represents a major leadership change at Tata Sons and leaves the board with the task of selecting a new chairman while differences within Tata Trusts remain unresolved.The succession process is expected to be closely watched because Tata Sons occupies the centre of the Tata Group's ownership structure, while Tata Trusts, through its majority shareholding, continues to wield significant influence over the conglomerate's long-term strategic direction.The battle for influence within the Tata Group after the death of former chairman Ratan Tata in 2024 has led to the exit of several senior leaders who were closely associated with him, altering the leadership dynamics at India's largest business conglomerate, according to a PTI report.Also Read |‘Don’t pay attention to gossip, conspiracies you hear’: What N Chandrasekaran told Tata Sons staffThe latest prominent departure came on Wednesday, when N Chandrasekaran, popularly known as Chandra, announced that he would not seek another term as chairman of Tata Sons after his current tenure ends on February 20, 2027.His decision comes after the gradual exit of two of Ratan Tata's long-time confidants, Vijay Singh and Mehli Mistry.Heart of the disputeThe centre of the leadership tussle is Tata Trusts, which owns about 66 per cent of Tata Sons and holds decisive control over the holding company of the salt-to-semiconductor conglomerate.The Tata Sons board currently comprises six members: Chairman N Chandrasekaran, Tata Trusts Chairman Noel N Tata, Tata veteran and Tata Trusts Vice-Chairman Venu Srinivasan, Group Chief Financial Officer Saurabh Agrawal, and independent directors Harish Manwani and Anita Marangoly George.

Noel Tata, the half-brother of Ratan Tata, took over as chairman of Tata Trusts in 2024 following Ratan Tata's death.The composition of the Tata Sons board has changed considerably amid the broader governance dispute involving Tata Trusts. Vijay Singh, the former defence secretary who served as a Tata Trusts nominee on the board, stepped down in 2025, while independent directors Ajay Piramal and Ralf Speth also retired, the PTI report said.Tata Sons: Who owns it?Tata Sons, the holding company of the Tata Group, is majority-owned by a group of philanthropic trusts, which together hold around 66 per cent of its equity.

The largest shareholders are the Sir Dorabji Tata Trust with a 27.98 per cent stake and the Sir Ratan Tata Trust with 23.56 per cent. Together, the two trusts own a combined 51.54 per cent of Tata Sons.The remaining trust-held stake is spread across several other entities, including the JRD Tata Trust (4.01 per cent), Tata Education Trust (3.73 per cent), Tata Social Welfare Trust (3.73 per cent), RD Tata Trust (2.19 per cent) and the Sarvajanik Seva Trust (0.10 per cent).Since October 2024, Noel N Tata has chaired Tata Trusts while also serving as a non-executive director on the Tata Sons board.

The Sir Dorabji Tata Trust (SDTT), the single largest shareholder in Tata Sons, recently appointed Neville Tata, Noel Tata's son, and former Titan chief Bhaskar Bhat as trustees for three-year terms. Venu Srinivasan is also a trustee of SDTT and serves as its vice-chairman.The Sir Ratan Tata Trust (SRTT) has emerged as the focal point of the recent governance dispute within the group.

Vijay Singh, who served as its vice-chairman and as a trustee of Tata Trusts, has stepped down and will not seek another term when his tenure at SRTT expires on August 14, 2026, though he will continue as a trustee of SDTT. Venu Srinivasan has also played a key role as an SRTT trustee, while Mehli Mistry, a long-time associate of Ratan Tata, has exited the trusts.Also Read | From trainee to Tata chairman: The remarkable rise of Ratan Tata’s pick N ChandrasekaranHow the dispute has deepenedThe governance dispute within Tata Trusts deepened through 2025, with trustees splitting into two opposing camps.

One faction coalesced around Noel Tata, while the other was led by Mehli Mistry and included trustees Pramit Jhaveri, Jehangir HC Jehangir and Darius Khambata, the PTI report said. Mistry's association with the extended Shapoorji Pallonji family, which owns about 18.37 per cent of Tata Sons, added a further dimension to the conflict.In the early stages of the dispute, Noel Tata was supported by Venu Srinivasan and Vijay Singh as differences sharpened over board appointments and governance matters raised by the Mistry-led group.Vijay Singh who served as a Tata Trusts nominee director on the Tata Sons board, later stepped down from the board after opposition from the Mistry faction.The main point of contention has been the composition of the Tata Sons board and the distribution of seats on the board of the holding company that oversees the 156-year-old Tata Group, whose operations span hundreds of businesses, including around 30 listed companies.The disagreement escalated to the point of attracting the Centre's attention.

As tensions over the governance of Tata Trusts intensified, Noel Tata, N Chandrasekaran, Venu Srinivasan and trustee Darius Khambata met Union Home Minister Amit Shah and Finance Minister Nirmala Sitharaman in October last year.Also Read | Standoff with Noel Tata: What led to N Chandrasekaran’s exit as Tata Sons chairmanTata Sons listing: Point of DisagreementOne of the biggest areas of disagreement within the Tata Group has centred on the future of Tata Sons and whether the holding company should eventually be listed on the stock exchanges.Noel Tata has opposed the idea of a public listing, whereas Venu Srinivasan and Vijay Singh have openly backed listing Tata Sons, the promoter holding company of the Tata Group, PTI reported.According to reports, Chandrasekaran did not agree to Noel Tata's request that he categorically rule out the possibility of taking Tata Sons public.The differing views on the group's long-term ownership and governance framework have further strained relations between the trustees and the management of Tata Sons.Another source of friction was Noel Tata's reported proposal to appoint his son, Neville Tata, as a trustee of the Sir Ratan Tata Trust, a move that Srinivasan and Singh are understood to have opposed.The divisions within the trust also disrupted its functioning, with meetings of the Sir Ratan Tata Trust being cancelled twice this year, first in January and again in May, for different reasons.Mehli Mistry distancesMehli Mistry, who had consistently voiced governance-related concerns across various Tata Trust bodies, gradually began distancing himself from entities within the Tata Group.Among his most notable decisions was stepping down from the board of RNT Associates Pvt Ltd, the personal investment company and family office founded by Ratan Tata.Following Mistry's exit, differences between Noel Tata and Venu Srinivasan and Vijay Singh became increasingly pronounced, with the future governance and ownership structure of Tata Sons emerging as the principal areas of disagreement.In April this year, Venu Srinivasan resigned as a trustee of the Bai Hirabai Jamsetji Tata Navsari Charitable Institution, citing other business commitments as the reason for his decision.The latest leadership change came on Tuesday when Vijay Singh resigned as a trustee of the Sir Ratan Tata Trust, just a day before N Chandrasekaran announced that he would not seek another term as chairman of Tata Sons.Singh chose not to seek an extension of his tenure, which ends on August 14.

However, he will continue to serve as a trustee of the Sir Dorabji Tata Trust.Also Read | Tata group stocks fall up to 4% as N Chandrasekaran steps down as chairmanWhy N Chandra decided to step downAccording to Chandrasekaran, both the Sir Dorabji Tata Trust and the Sir Ratan Tata Trust had unanimously backed a five-year extension of his tenure as chairman of Tata Sons.He said the recommendation was subsequently endorsed by the Tata Sons Nomination and Remuneration Committee and approved by the board before being placed before directors at the February 24 board meeting.

However, the proposal did not go through after one board member withheld support."In the absence of unanimous support, I chose to defer the decision," Chandra said.With the matter remaining unresolved for six months, Chandrasekaran said it had become important to provide certainty over the group's leadership for employees, investors, partners and other stakeholders, particularly as Tata Sons is executing several strategic projects.He said he had therefore informed the board that he would not seek reappointment after his current term ends on February 20, 2027, and urged directors to identify his successor at the earliest to facilitate a smooth transition.Get the latest Business News and Live updates.

Download the TOI app.