Nationalist Congress Party-SP (NCP-SP) chief Sharad Pawar has backed the Tata Trusts’ position in the ongoing dispute over the governance and ownership structure of Tata Sons, saying the group’s century-old institutional framework needs to be protected.
In a post on X on Tuesday, Pawar said Tata Son’s ownership was deliberately structured so that the wealth created by the group’s businesses would be used for public welfare rather than remain with an individual. The Tata Trusts collectively holds around 66% of Tata Sons.
“This structure was not created by chance but deliberately. It ensures that the growth of the group and the profits generated from it are used for public welfare. A significant portion of the dividends received by the trusts is directly available for areas such as healthcare, education, research and rural livelihoods,” Pawar said.
He also highlighted the Tata group’s contribution to Maharashtra, citing institutions such as Tata Memorial Hospital, the Tata Institute of Fundamental Research (TIFR), the Tata Institute of Social Sciences (TISS) and the National Centre for the Performing Arts (NCPA).
“The registered offices of these prominent charitable trusts are also in Maharashtra. If the role of the trusts is weakened, it will have an impact on these institutions that provide support to people across the country and the state,” Pawar said.
“For more than a century, these trusts have prioritised values, credibility and reputation over short-term financial gains and have thereby established a long-term ownership role. It is this restrained and values-based role that has earned the name ‘Tata’ exceptional trust among generations.”
His comments come days after the Tata Sons board approved the reappointment of N Chandrasekaran as executive chairman for another five years from February 2027, with four directors voting in favour and one against. The board also approved steps towards a public listing of Tata Sons.
Tata Trusts Chairman Noel Tata had opposed both the proposals, while Trusts-nominated director Venu Srinivasan supported them.
Pawar said the Tata Trusts’ position should be respected given its majority ownership in Tata Sons. He also referred to the special rights available to the Trust-nominated directors under the company’s Articles of Association (AoA), arguing that decisions on leadership should follow the prescribed governance and legal process.
“Decisions concerning leadership should be taken through dialogue and the appropriate legal process, with the consent of the majority shareholders of Tata Sons. Such issues should not be allowed to become matters of dispute,” Pawar said, adding that the special consent rights granted to Trust-nominated directors to protect shareholders’ interests have also previously been recognised by the Supreme Court.
Pawar’s post comes as differences between Tata Sons and Tata Trusts have widened over Chandrasekaran’s reappointment and the proposed listing of the holding company. Tata Trusts has maintained that it did not agree to the listing and has called for alternatives to be examined.