Nationalist Congress Party (SP) chief Sharad Pawar has voiced support for the role of Tata Trusts amid the ongoing dispute between Tata Trusts and Tata Sons over the group’s leadership and proposed listing.
In a statement posted on X on Tuesday, Pawar said the institutional role and social commitment of the Tata Trusts should be preserved, citing the philanthropic legacy associated with Jamsetji Tata and the Tata family.
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“Jamshedji Tata and the Tata family gave industry a value-based direction of social service. Therefore, the social commitment and institutional role of the Tata Trusts must be preserved,” Pawar said.
His comments come amid a dispute that intensified after Tata Sons’ board voted on September 17 to reappoint N Chandrasekaran as executive chairman for another five years and decided to move ahead with steps towards a public listing. Tata Trusts Chairman Noel Tata opposed both decisions.
The reappointment has since become a matter of disagreement over the interpretation of Tata Sons’ Articles of Association. Tata Trusts has argued that the decision required affirmative support from a majority of its nominee directors.
There are two Tata Trusts nominees on the Tata Sons board, Noel Tata and Venu Srinivasan. While Srinivasan supported Chandrasekaran’s reappointment, Noel Tata voted against it. The board nevertheless approved the resolution by a majority vote. Tata Trusts has questioned the validity of the decision.
Pawar said leadership decisions within the Tata group should respect institutional processes and the role of the Trusts.
“When decisions are made regarding leadership of the Tata group, it is essential to respect the institutional processes and the role of the Trusts,” he said, adding that the matter should be resolved through dialogue and in accordance with the company’s Articles of Association.
Tata Trusts collectively owns about 66 per cent of Tata Sons, the holding company of the Tata group. Tata Sons, in turn, holds stakes in several major operating companies. The Trusts’ shareholding and the rights attached to their nominee directors have become central to the current dispute.
Pawar also highlighted the historical purpose of the ownership structure. According to him, the holdings of the Tata family were placed in charitable trusts so that the group’s wealth could support social causes rather than remain under the ownership of an individual.
He pointed to institutions including Tata Memorial Hospital, the Tata Institute of Fundamental Research, the Tata Institute of Social Sciences and the National Centre for the Performing Arts as examples of institutions associated with the Tata Trusts’ philanthropic activities.
Pawar said the Trusts’ majority ownership should be viewed as a deliberate structure linked to the group’s charitable objectives. He argued that dividends from the Trusts’ stake contribute to areas including healthcare, education, research and rural livelihoods.
The wider dispute also involves Tata Sons’ proposed public listing. Tata Sons had sought to surrender its registration as a core investment company, but the Reserve Bank of India rejected that request earlier this month. The company’s board subsequently decided to move ahead with preparations for a listing.
The leadership dispute has also taken a legal dimension, with different interpretations emerging over the powers of Tata Sons’ board and the affirmative rights of Tata Trusts’ nominee directors. Legal experts representing the two sides have offered contrasting readings of the company’s Articles.
For now, Chandrasekaran remains chairman of Tata Sons, with his current term set to end in February 2027. The dispute over his reappointment and the company’s future structure remains unresolved.
