Rahul Gandhi says Tata is ‘being criminally destroyed’ as Tata Sons feud turns political

Leader of Opposition in the Lok Sabha Rahul Gandhi on Wednesday said the Tata group was “being criminally destroyed” and that no business leader dared speak about it.

In a post on X, Mr. Gandhi asked how long business leaders would stay silent, “until they own you”. He said Indian business was not “Modi and Shah’s plaything”.

“You lack courage. We don’t. We will ensure justice for these crimes,” he wrote.

There was no immediate response from the government or the Tata group.

What Noel Tata’s letter says

Mr. Gandhi’s post came two days after a letter dated October 26 from Tata Trusts chairman Noel Tata to Tata Sons company secretary Suprakash Mukhopadhyay.

In the letter, Noel Tata said the resolution reappointing N. Chandrasekaran as executive chairman for five years, passed at the September 17 board meeting, was “void” and should be treated as “not passed”.

He alleged that no Selection Committee was constituted under Article 118 of the Articles of Association, and that no recommendation from such a committee was placed before the board.

He also said the affirmative vote of directors appointed under Article 104B had not been obtained, as Articles 118 and 121 require. The resolution was also put to a vote subject to conditions that were not met.

Noel Tata objected to the way the item reached the board. The original agenda described item seven as a “Debriefing from Nomination and Remuneration Committee”. A revised agenda added a Reserve Bank of India letter and related caveat applications, but still did not name the reappointment.

He said Tata Sons had not given him the audio and video recordings of the meeting despite requests over more than three weeks. Nor, he said, the final minutes or a certified copy of the resolution.

He also questioned the company’s reported filing of the resolution with the Registrar of Companies before the minutes were finalised.

The letter seeks the recordings, minutes, voting details, agenda versions and regulatory filings within seven days. It also asks Tata Sons to tell the Registrar in writing that the validity of the resolution is disputed.

The October 26 letter followed two earlier ones, dated September 30 and October 8, that challenged the handling of the meeting and the accuracy of its draft minutes.

How the dispute began

Mr. Chandrasekaran told the board on August 12 that he would not offer himself for reappointment after his current tenure ends on February 20, 2027.

The Trusts hold about 66 per cent of Tata Sons. They recorded their acceptance the next day and advised the company to start the process of setting up a Selection Committee for his successor.

Tata Sons said its Nomination and Remuneration Committee asked him unanimously on September 3 to reconsider, and recommended his reappointment. The board said he accepted its request.

At the September 17 meeting, four directors voted in favour and Noel Tata voted against, the Trusts said in a statement the same day.

The Trusts called the resolution a “legal nullity”, arguing that the Articles require both nominee directors to be present at the meeting and both to vote in favour. They said a legal opinion from former Chief Justice of India D.Y. Chandrachud supporting their reading was not taken note of by the board.

Tata Sons has defended the decision, saying it was carried by a majority and backed by legal opinions. It said it would take steps to comply with applicable RBI guidelines and seek guidance from the RBI, the Trusts and other stakeholders.

The same board meeting approved a potential public listing of Tata Sons by a majority vote, Mint reported. That followed the RBI’s refusal, in the preceding week, to exempt the company from a listing requirement.

Why it matters

Tata Sons is the holding company of the Tata group, and the Trusts’ 66 per cent stake makes them its controlling shareholder. The dispute is now about who controls that holding company.

The uncertainty has cost shareholders. Listed Tata group companies lost about Rs 46,634 crore in market value on September 18, Mint calculated from exchange data, with TCS alone shedding about Rs 29,550 crore.

Noel Tata argued in his statement to the board that the chairman’s own position as a director was uncertain. A general meeting on the question could not proceed for want of quorum. “We cannot put the cart before the horse,” he wrote.

Mr. Chandrasekaran’s current term ends on February 20, 2027. The seven-day window Noel Tata set in his letter closes on November 2.