Tata Group News: Noel Tata Flags Unresolved Issues as N Chandrasekaran’s Reappointment at Tata Sons Faces Delay

The reappointment of N. Chandrasekaran as chairman of Tata Sons has been put on hold, according to a report, after Tata Trusts chairman Noel Tata said several important issues remain unresolved and that it would be premature to discuss a third term until there is greater clarity. The matter has now become a key point of discussion within the Tata Group, which controls one of India’s largest and most influential business conglomerates.

Sources said Noel Tata raised questions at the board meeting about the group’s five-year strategic roadmap, asking Chandrasekaran for more detail on future plans. He also sought clarity on the possible exit of the Shapoorji Pallonji Group and the stance on Tata Sons’ eventual listing. The questions reflect deeper concerns about the direction of the holding company and the structure of ownership in the group.

Tensions have also been reported over performance issues at some businesses, including Air India and BigBasket, along with broader governance matters. The concerns indicate that the discussion is not limited to Chandrasekaran’s continuation in office, but also extends to how the group is being managed and whether its key businesses are meeting expectations.

The issue had already surfaced earlier this year. At the Tata Sons board meeting on February 24, serious questions were reportedly raised, and discussion on Chandrasekaran’s third term was deferred. In response, Chandrasekaran called a special board meeting on May 26 to address those concerns. During that meeting, executives from Air India, Tata Electronics and Tata Digital presented updates on their businesses.

According to sources, Noel Tata was briefed in detail on Air India and BigBasket, but his concerns were not fully resolved. At the end of the May 26 meeting, some directors reportedly asked whether Chandrasekaran’s third term would be taken up at the next board meeting. Noel Tata responded that it would be too early to discuss the matter and repeated that several issues still needed further work.

The next Tata Sons board meeting is scheduled for June 12, when the annual accounts are expected to be discussed. However, no official comment has been made by Tata Sons or by Noel Tata on the status of Chandrasekaran’s reappointment.

Tata Trusts holds a 66% stake in Tata Sons, giving it significant influence over the group’s future direction. The Shapoorji Pallonji Group holds an 18% stake and has reportedly sought to monetize its holding to reduce debt. The unresolved ownership and governance questions add another layer of complexity to the leadership decision.

The developments have raised the possibility of a standoff between Chandrasekaran and the Tata leadership at a critical time for the group. With major businesses under review and strategic questions still unanswered, the decision on his third term appears unlikely to move forward until the internal concerns are addressed.