Rahul Gandhi Slams Top Business Leaders Over Silence as He Claims Tata Is Being “Criminally Destroyed” | India News
Lok Sabha Leader of Opposition Rahul Gandhi Wednesday criticised the handling of the Tata Group’s ongoing governance dispute, alleging that the conglomerate was being “criminally destroyed” and accusing business leaders of remaining silent.
His remarks come amid a widening rift between Tata Trusts chairman Noel Tata and the board of Tata Sons, the group’s principal holding company.
“Tata is being criminally destroyed, and no business leader dares say a word. How long will you stay silent? Until they own you? Indian business is not Modi and Shah’s plaything. You lack courage. We don’t. We will ensure justice for these crimes,” Gandhi said in a post on X.
What are the differences
The Tata Group is facing one of its most serious governance battles in recent years, with a widening rift between Tata Trusts Chairman Noel Tata and the board of Tata Sons, the conglomerate’s principal holding company. The dispute has raised fundamental questions about who exercises effective control over one of India’s most prominent business groups.
The conflict intensified in September 2026, when the Tata Sons board approved a fresh five-year term for Chairman N Chandrasekaran and moved towards pursuing a stock market listing. Noel Tata opposed both decisions, arguing that they conflicted with the position taken by Tata Trusts and raised questions about the board’s authority and decision-making process.
Venu Srinivasan and Vijay Singh, both trustees of Tata Trusts, had approached the Charity Commissioner raising governance issues in Tata Trusts. Tata Sons AGM was postponed due to lack of quorum.
Tata Trusts collectively hold approximately 66 per cent of Tata Sons, giving them a majority ownership stake and substantial influence over the group’s governance. Noel Tata became chairman of Tata Trusts after Ratan Tata’s death in October 2024. Since then, differences have emerged over trustee appointments, board representation, and the group’s future direction.
What’s at stake
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A major point of contention is whether Tata Sons should remain privately held or list its shares on the stock exchanges. In March 2024, the Tata Sons board unanimously supported keeping the company unlisted. The two principal Tata Trusts subsequently reaffirmed that position in resolutions passed in 2025.
The Reserve Bank of India (RBI)’s September 2026 decision to reject Tata Sons’ application to surrender its registration brought the issue back into focus. The company’s classification as an upper-layer non-banking financial company has regulatory implications, including a potential listing requirement. Noel Tata argued that the RBI communication did not explicitly mandate a listing and that the company should explore alternative solutions.
The dispute has also centred on Chandrasekaran’s reappointment. Tata Trusts, led by Noel Tata, questioned the validity of the board’s decision, particularly the chairman’s casting vote after Noel Tata opposed the proposal while fellow Trusts nominee Venu Srinivasan supported it.
The Trusts argued that their nominees’ affirmative support was required under Tata Sons’ Articles of Association. Tata Sons, however, maintained that the board had approved the reappointment by majority vote.
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Business performance has added to the tensions. Noel Tata has raised concerns about mounting losses at unlisted ventures, including Air India and Tata Digital, as well as capital allocation and executive remuneration. Meanwhile, disagreements among trustees have spilled into formal complaints and public exchanges, deepening the institutional crisis.
The confrontation is no longer simply a disagreement over corporate strategy. It has become a contest over the balance between majority ownership, board independence and the governance arrangements that have shaped the Tata Group for generations.
Source: indianexpress.com