The board of Tata Sons on Tuesday postponed a decision on Natarajan Chandrasekaran’s reappointment for a third term as chairman, indicating potential disputes within the holding company of the software, automotive, and coffee giant.
The decision was postponed due to a number of conditions set by Noel Tata, chairman of Tata Trusts, which controls two-thirds of the corporate group.
The Tata Sons board was considering extending Chandrasekaran’s term, which expires in February 2027, when Noel proposed a set of conditions, according to the industry sources.
Noel had expressed concerns about losses at specific group companies and that the conditions entailed Tata Sons taking on more debt, which would put the group in risk of being forced to list on stock exchanges.
Noel sought an agreement in writing and opposed the listing of Tata Sons, the sources added.
None of the four other directors, including Venu Srinivasan, Harish Manwani, Anita George, and Saurabh Agrawal, had any objections to the extended meeting, which took place at the group headquarters at Bombay House. The sources further stated that the agenda item on reappointment was thoroughly reviewed.
Sources said Chandrasekaran underlined the difficulties in fully committing to the listing not taking place at all, stating that the regulations will have to take their own route.
The 62-year-old Chandrasekaran was backed by a number of board members who believed that the chair’s contributions over the years and the group’s overall performance should not be overshadowed by the losses at one group subsidiary. Chandrasekaran proposed a deferral, but other directors sought a vote.
As early as July 2025, the two principal entities of the Tata Trusts—Sir Ratan Tata Trust (SRTT) and Sir Dorabji Tata Trust (SDTT)—had approved a third term for Chandrasekaran, who became chairman of the group holding company in February 2017. The trustees had even agreed to relax the retirement age criterion for Chandrasekaran to allow him to continue beyond his 65th birthday. The current term of Chandrasekaran, who turns 63 in June, lasts until February 2027, but Tata Sons had expected an early renewal.
Tata Sons was one of 15 firms given a deadline of September 30, 2025, to list in accordance with RBI guidelines.
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