In a 45-minute meeting at home minister Amit Shah’s residence, the Centre is understood to have delivered a firm message to the Tata group leadership—restore stability at the Tata Trusts and ensure that internal discord does not spill over to affect Tata Sons, the country’s most valuable business conglomerate. Shah and finance minister Nirmala Sitharaman met four senior Tata representatives—Tata Trusts chairman Noel Tata, vice-chairman Venu Srinivasan, Tata Sons chairman N Chandrasekaran and trustee Darius Khambata—in what is seen as a move aimed at preserving group stability.
ET first reported in its Monday edition that two senior cabinet ministers would meet Tata group leaders to discuss the power struggle within Tata Trusts as well as the matter of public listing of Tata Sons. Tata officials are understood to have been encouraged to take stern action.
This includes the removal of any trustee if internal actions threatened the group’s functioning.
The talks also touched upon the issue of the RBI mandated listing of upperlayer NBFCs, including Tata Sons, as well as a path to liquidity for the group’s second-largest shareholder, Shapoorji Pallonji Group. It remained unclear if there has been any direction from the government on the matter during the meeting.
Before returning to Mumbai late on Monday, the four Tata leaders are learnt to have held a brief internal discussion. They are expected to participate in a two day series of remembrance events marking the first death anniversary of Ratan Tata, who passed away on October 9 last year.
The ministers are also understood to have taken a stern view of the turmoil and encouraged tough action against trustees seen precipitating discord.
The government is understood to be deeply concerned that the Trusts’ divisions risk spilling over into the management of Tata Sons and group companies.
The messaging seems to be that the Trusts’ majority shareholding in Tata Sons comes with a “public responsibility,” given the group’s size, systemic significance and contribution to the economy. And that differences within the Trusts should be resolved internally and discreetly.
ET first reported in its Monday edition that two senior cabinet ministers would meet Tata group leaders to discuss the power struggle within Tata Trusts as well as the matter of public listing of Tata Sons. Tata officials are understood to have been encouraged to take stern action.
This includes the removal of any trustee if internal actions threatened the group’s functioning.
The talks also touched upon the issue of the RBI mandated listing of upperlayer NBFCs, including Tata Sons, as well as a path to liquidity for the group’s second-largest shareholder, Shapoorji Pallonji Group. It remained unclear if there has been any direction from the government on the matter during the meeting.
Before returning to Mumbai late on Monday, the four Tata leaders are learnt to have held a brief internal discussion. They are expected to participate in a two day series of remembrance events marking the first death anniversary of Ratan Tata, who passed away on October 9 last year.
The ministers are also understood to have taken a stern view of the turmoil and encouraged tough action against trustees seen precipitating discord.
The government is understood to be deeply concerned that the Trusts’ divisions risk spilling over into the management of Tata Sons and group companies.
The messaging seems to be that the Trusts’ majority shareholding in Tata Sons comes with a “public responsibility,” given the group’s size, systemic significance and contribution to the economy. And that differences within the Trusts should be resolved internally and discreetly.
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