Former union minister Sharad Pawar on Tuesday appealed to the Tata Group to resolve its internal leadership issue through due process and dialogue. He said the Tata Trusts' institutional role and rights must be respected under the established governance framework and that no individual should own the group.
In a public letter posted on social media, the NCP chief said the leadership issue should be resolved in accordance with the "Articles of Association". He said protecting the Tata Group's trust-based legacy was essential to preserving its contribution to India's development.
Pawar said Jamsetji Tata's vision, carried forward by Sir Dorabji and Sir Ratan Tata, was that wealth created by the enterprise should return to society. He said their holdings were placed in trusts so that no individual would own the group and that the majority stake in the business would remain with trusts dedicated to charitable objectives.
"Therefore, the ownership structure of Tata Sons embraces philanthropy. Operating companies sit under Tata Sons, and Sir Ratan Tata Trust and Sir Dorabji Tata Trust, with allied trusts, own about 66% of Tata Sons. This design is deliberate, not incidental. Good business, therefore, funds public good. Dividends on the Trusts' majority stake flow directly into health, education, research and rural livelihoods," Pawar said.
He said Maharashtra was fortunate to be at the heart of this legacy. Tata Memorial Hospital, TIFR, TISS and NCPA, all in Mumbai, are Trust-founded institutions of national standing. He added that the state was proud to host these prestigious charitable trusts.
Pawar said weakening the Trusts would weaken institutions that people in the country and the state depend on. He said that for over a century, the Trusts had been long-term owners that placed values and reputation ahead of short-term returns, helping build public trust in the Tata name.
Pawar referred to the Tata Sons board meeting on September 17, 2026, when the board voted 4-1 to reappoint N. Chandrasekaran as Executive Chairman for another five years from February 2027. The board also approved steps towards listing Tata Sons.
Noel Tata, Chairman of Tata Trusts, voted against both decisions, while the Trusts' second nominee, Venu Srinivasan, voted in favour.
The Tata Trusts, which own about 66% of Tata Sons, hold that the resolution is void from the outset. They contend that the Articles of Association require a majority of the Trust-nominated directors present to support a chairman's appointment. With two nominees present, they argue that both would need to support the appointment.
Pawar said the Tata Group was a national institution rooted in Maharashtra and that its charitable ownership must be protected. He said the Articles adopted by shareholders, which give Trust-nominated directors an affirmative vote on key decisions, including the chairman's appointment, should be honoured.
"The Supreme Court had earlier upheld the affirmative rights of the nominee directors representing the Trusts to protect shareholders. Even from a corporate governance point of view, the Articles govern a company. The Articles of the Group give the majority owner's nominees a decisive voice in choosing the Chairman, and that agreement should be respected, as that is the very design of the Tata Group. We must protect the Group that devoted itself to the development of India," Pawar said.
