Tata Group rift: Temporary truce reached amid Noel Tata’s power tussle? Here's what we know

Amid a power tussle in the Tata Trusts' governance, a temporary truce has been reached within the conglomerate, as per a Republic TV report, which quoted sources. It added that Noel Tata's leadership has been underlined. It is learnt that the reported battle is not between Noel Tata and the Shapoorji group as has been portrayed. According to the report, the leadership of Noel Tata, who currently chairs Tata Trusts, is being acknowledged as the group seeks to restore internal harmony.

The development comes days top brass of the Tata Group, Tata Trusts Chairman Noel Tata, Tata Sons Chairman N Chandrasekaran, Tata Trusts Vice Chairman Venu Srinivasan and trustee Darius Khambata met Union Home Minister Amit Shah and Finance Minister Nirmala Sitharaman on Tuesday amid infighting among trustees over board appointments and governance issues.

Earlier, there were reports that a proposed funding plan for Tata International Ltd (TIL) emerged as the key issue that deepened the rift, reported Moneycontrol. The loss-making Tata International is chaired by Noel Tata, who has led the firm since 2010. There was a Rs 1,000 crore capital infusion plan for the firm.

The funding proposal

The funding proposal was cleared at a Tata Trusts board meeting held on September 11. It triggered allegations of inadequate consultation and potential breach of Article 121A of Tata Sons’ Articles of Association, which mandates prior approval from the Trusts for major financial commitments.

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Infighting's impact Tata Group

The infighting among the trustees of Tata Trusts had threatened to impact the functioning of the over USD 180 billion conglomerate. Tata Trusts exerts decisive influence over India's most valuable conglomerate through its about 66 per cent stake in Tata Sons, the promoter and holding company of the Tata Group.