Mumbai: Nationalist Congress Party (Sharadchandra Pawar) president Sharad Pawar has called for protecting the Tata Group’s trust-based legacy, stressing that its charitable ownership structure and institutional role must be preserved.
In a statement posted on X, Pawar said the ongoing leadership dispute should be resolved through dialogue, due process and strict adherence to the Articles of Association of Tata Sons.
Trust-Based Structure Must Be Respected
Pawar described the Tata Group as a national institution with deep roots in Maharashtra. He said its legacy was founded on the principle that wealth generated through business should ultimately serve society.
The former Union minister said Tata Trusts’ institutional role and governance rights must be respected. The trusts collectively hold around 66 per cent of Tata Sons, the principal holding company of the conglomerate.
He noted that this ownership arrangement was deliberately created to ensure that no individual controlled the group and that dividends from its businesses supported charitable objectives.
Leadership Dispute Deepens
His comments follow the September 17 meeting of the Tata Sons board, where directors voted to reappoint N Chandrasekaran as executive chairman for another five years.
Four directors supported the resolution, while Tata Trusts chairman Noel Tata opposed it. Tata Trusts subsequently declared the vote invalid, arguing that its nominee directors’ affirmative approval was required for such a decision.
Pawar said the Articles adopted by shareholders gave Trust-nominated directors affirmative voting rights on important matters, including the appointment of the chairman.
He added that leadership decisions should be settled with the consent of Tata Trusts as the majority shareholder instead of being allowed to develop into prolonged disputes.
Listing Question Adds To Tensions
The disagreement comes as Tata Sons considers a public listing after the Reserve Bank of India rejected its application to surrender registration as an upper-layer non-banking financial company.
The Tata Sons board has reportedly supported proceeding with the listing. Tata Trusts has opposed the proposal, with Noel Tata urging the company to examine alternative options.
Pawar said established corporate governance arrangements must be honoured, noting that a company’s Articles govern its internal decision-making framework.
Maharashtra Institutions At Stake
Highlighting the group’s contribution to Maharashtra, Pawar cited institutions such as Tata Memorial Hospital, the Tata Institute of Fundamental Research, Tata Institute of Social Sciences and the National Centre for the Performing Arts.
He said these institutions depended heavily on the stability and governance of Tata Trusts.
Pawar recalled that Jamsetji Tata’s vision, later advanced by Sir Dorabji Tata and Sir Ratan Tata, ensured that enterprise-generated wealth returned to society.
He urged all stakeholders to protect this public-welfare ownership model and resolve their differences through mutual dialogue and lawful procedures.
