The listing of Tata Sons, the principal shareholder of the Tata group of companies, on the stock exchanges has become a hot issue in the ongoing Tata group saga. Tensions have surfaced within Tata Trusts and Tata Sons — two major institutions in the Tata family — as disagreements over strategy, regulatory challenges, and governance continue among trustees.At the centre of the debate is a growing divide on the group’s future direction, with some trustees advocating for listing to unlock capital for expansion, while Noel Tata remains opposed to the move. Concerns are mounting over rising losses in several unlisted entities, raising questions about financial sustainability and capital allocation. Tata Trusts holds 66% stake in Tata Sons, which, in turn, is the principal shareholder of Tata companies.The situation is further complicated by worries about increasing debt levels, underperforming ventures, and internal governance challenges. Issues surrounding leadership continuity, especially the extension of Tata Sons Chairman N Chandrasekaran, have also come into focus, amplifying uncertainty at the top. We explain.Consensus culture fadesThe unity and cohesion within Tata Trusts appear to have weakened. During Ratan Tata’s tenure, decisions were typically made through consensus, but that approach seems to have eroded.For instance, Tata Trusts, now led by Noel Tata, recently asked Venu Srinivasan and Vijay Singh to step down from the Bai Hirabai Trust, though only Srinivasan complied. Mehli Mistry’s reappointment was blocked by other trustees in October 2025, and in September 2025, Vijay Singh was voted out of a board position at Tata Sons.Also read | Remembering Ratan Tata: The quiet titan whose legacy reshaped Indian business — and its conscienceMore recently, both Venu Srinivasan and Vijay Singh have pushed for listing Tata Sons, apparently against Noel Tata’s wishes.The question of listing Tata Sons has resurfaced, with differing views among trustees of Tata Trusts. While some trustees support listing the holding company on stock exchanges, Chairman Noel Tata is believed to oppose the move. Tata Sons had earlier applied to the Reserve Bank of India (RBI) for deregistration as a Non-Banking Financial Company (NBFC), a move widely seen as an attempt to avoid regulations applicable to “upper-layer” NBFCs.Story continues below this adTrustees Venu Srinivasan (of the TVS Group) and Vijay Singh have publicly advocated listing Tata Sons through an initial public offering, contrasting with a resolution passed a year ago to retain its unlisted status. Singh has argued that while Tata Sons has historically remained unlisted, the group’s expansion into capital- and technology-intensive sectors requires reconsideration. N Chandrasekaran became Tata group Chairman in 2017 and received his second term extension in 2022. Photo: Pradip DasTraditionally involved in nation-building industries like steel, power, and infrastructure, the group is now active in aviation, defence, semiconductors, batteries, and electronics — areas that demand significant capital. According to him, internal funding may no longer suffice, making a listing a viable option.The issue has gained urgency owing to RBI regulations that could require Tata Sons to be listed if it remains classified as an upper-layer NBFC. Singh emphasised that the earlier decision against listing may need to be revisited.Trust issuesAlongside the listing debate, internal disagreements have surfaced within Tata Trusts on governance matters. Recently, Noel Tata asked CEO Siddharth Sharma to explore whether Vijay Singh and Venu Srinivasan would voluntarily step down from the Bai Hirabai Trust. The concern was that the appointment of non-Zoroastrians could be legally challenged, regardless of differing interpretations. Following this, Srinivasan stepped down, while Singh declined.Story continues below this adThe issue stems from clauses in the Trust Deed, which some interpret as restricting trusteeship to Zoroastrians and residents of specific regions such as the Bombay Presidency or Navsari. Although a past legal opinion by former Chief Justice H J Kania suggested no doctrinal bar on appointing non-Zoroastrians, Tata Trusts maintains that the provisions could still invite challenges.The controversy intensified after Mehli Mistry, a former trustee of Sir Ratan Tata Trust, challenged their appointments before the Maharashtra Charity Commissioner on the grounds that they are non-Zoroastrians.Also read | The billion-dollar hangover: Can the Tata-backed Tejas Networks outgrow its BSNL anchor?In September last year, trustees voted 4-3 to remove Vijay Singh from the Tata Sons board. Singh is a former defence secretary, a seasoned bureaucrat, and considered as one of Ratan Tata’s closest associates.Further, Mehli Mistry, another close associate of Ratan Tata, was eased out of Tata Trusts after a majority of trustees voted against his reappointment to the boards of the Sir Dorabji Tata Trust and the Sir Ratan Tata Trust. These two trusts hold over 51 per cent in Tata Sons Ltd, the principal investment holding company and promoter of Tata companies.Story continues below this adIn January this year, the board of Sir Ratan Tata Trusts did not induct Neville Tata, son of Tata Trusts Chairman Noel Tata, as a trustee as anticipated, with the meeting being postponed amid uncertainty over the timing of the appointment of the Tata scion.Losses in unlisted companiesNoel Tata raised concerns about the financial performance of several unlisted group companies in the last board meeting of Tata Sons. Known for his low-profile approach, he has emphasised limiting debt and reducing losses, reportedly making this a condition for leadership extensions.Air India, acquired by the Tata group in 2022, is expected to report a full-year loss exceeding Rs 20,000 crore for FY26 — nearly double the previous year’s loss. In FY25, it recorded a consolidated net loss of Rs 10,859 crore, including Air India Express and other subsidiaries.Other companies have also reported losses. Tata Play posted a consolidated net loss of Rs 529.43 crore in FY25, nearly 50% higher than the previous year, amid declining revenues and intense competition. Tata Digital reported a net loss of about Rs 828 crore in FY25, an improvement from Rs 1,201 crore in FY24 but still reflecting ongoing challenges. The group’s broader e-commerce and digital portfolio recorded losses of approximately Rs 4,609.9 crore in FY25, up nearly 9.5% year-on-year.Story continues below this adAlso read | Retired hurt: Campbell Wilson’s mixed-bag innings at Air India draws to a close a year before end of his termBigBasket reported a consolidated net loss of Rs 2,006.8 crore in FY25, about 42% higher than the previous year, facing strong competition from quick-commerce rivals. Sources indicate Noel Tata is dissatisfied with persistent losses in digital ventures and certain acquisitions, reinforcing his cautious stance on expansion and capital allocation.Chairman extension issueAnother key issue is the proposed third extension of Tata Sons and Tata Group Chairman N Chandrasekaran’s tenure. The decision was recently deferred, after he requested a postponement following disagreements during a board meeting.Although his current term runs until February 2027 and directors had earlier approved the extension, concerns raised by Noel Tata about group company losses led to differences within the board. As a result, Chandrasekaran sought more time before proceeding. The next Tata Sons board meeting in June is expected to take a decision on the extension.Noel Tata represents Tata Trusts on the Tata Sons board. Venu Srinivasan is also a board member. Despite Noel Tata’s reservations, other directors are understood to support the extension.Story continues below this adChandrasekaran, 63, became Chairman in 2017 after Cyrus Mistry’s exit and received his second term extension in 2022. A third term would require waiving the group’s retirement policy, which mandates retirement at 65. In addition to Tata Sons, he chairs major group companies including Air India, TCS, Indian Hotels Company, Tata Power, and Tata Steel.