Tata Trusts have advised Tata Sons to consider all available options regarding the Reserve Bank of India’s directive to go public. This includes potentially requesting the RBI to reassess and clarify its decision. Two executives familiar with the situation revealed these plans, emphasizing a cautious approach before pursuing any legal action.
The central bank is understood to have filed a caveat in the Bombay high court on Monday to ensure its position is heard before any judicial order on the public listing of Tata Sons, which could mark the start of a protracted legal tussle between the central bank and India’s largest conglomerate. The decision follows RBI’s Saturday letter rejecting Tata Sons’ request to surrender its registration, which would force it to proceed with a public share sale. “We will do everything it takes. For now, the legal route is the only option. But before that, Tata Trusts wants Tata Sons to ask the RBI to reconsider its decision and clarify why it rejected its plea. Then they will take the legal route. The meeting will be the first since N. Singh was removed from the Tata Sons board last September, while Srinivasan remains one of the Trusts’ two nominees. Besides Chandrasekaran, Noel and Srinivasan, the Tata Sons board includes group CFO Saurabh Agrawal and independent directors Harish Manwani and Anita Marangoly George. A few months ago, Singh filed a complaint against a smaller Tata trust linked to Sir Ratan Tata Trusts (SRTT), accusing it of wrongdoing. Srinivasan also complained that the number of permanent members at SRTT is breach of rules. These complaints caused the Maharashtra charity commissioner to stop SRTT from holding board meetings or making official decisions. Former trustee Mehli Mistry too has filed multiple challenges against Tata Trusts.
Because two trustees—Venu Srinivasan and retired defence secretary Vijay Singh—have changed their earlier position, and now support listing Tata Sons, this is. Since Tata Trusts chair Noel Tata and most trustees desire to keep Tata Sons private, the holding company could seek court intervention, Mint reported on 12 September. All this is expected to be discussed in the board meeting,” said the executive, referring to Tata Sons’ board meeting on 17 September. Chandrasekaran on 12 August said he will not seek a third term at the conglomerate’s helm. While some of Noel Tata’s opponents have proactively filed complaints while remaining trustees, the Tata Trusts chairman has typically reacted to such moves since taking over in October 2024, according to the three top Tata executives.
“Is it a battle drawn?” quipped a Tata Group executive when asked about RBI filing a caveat, suggesting it is prepared to fight a potential legal suit from the Tata Group. It is unclear whether the Tata Sons board, led by Chandrasekaran, will support its main shareholder Tata Trusts in challenging the RBI order or go against it, the second executive said.
