A fierce internal power struggle has erupted at Tata Trusts, the philanthropic arm controlling 66% of Tata Sons—the holding company for India’s iconic Tata Group spanning 26 listed entities with a combined market cap of over $300+ billion.

The dispute centers on board nominations, governance authority, and conflicting visions of the group’s strategic future following the removal of former Defence Secretary Vijay Singh from the Tata Sons board. 

The trustees appear split: one camp led by Noel Tata (chairman of Tata Trusts) and his supporters, and the other by Mehli Mistry, aligned with the Shapoorji Pallonji (SP) family, which holds a significant minority stake in Tata Sons.

The root of the rift also touches on proposed capital infusion into Tata International Ltd, which dissenting trustees allege was pushed with inadequate consultation. 

A major flashpoint is the IPO of Tata Sons. The RBI’s classification of the holding company as an upper-layer nonbank financial entity triggered calls for a mandatory public listing. Some trustees resist, fearing loss of veto power and exposure to takeover risks by minority shareholders. Meanwhile, the SP Group is renewing pressure, calling the IPO a “moral and social imperative.

The government has stepped in, with senior ministers urging a swift resolution to prevent disruption in a conglomerate critical to India’s economy and reputation.The latest Trust board meeting was described as “cordial,” albeit without resolving Tata Sons–related matters. 

The stakes are immense: whether Tata moves publicly, how control is shared between Trusts and minority stakeholders, and how governance will evolve at the highest levels. The outcome could redefine the balance of power in one of India’s most storied business houses.