The government has urged the Tata Group to restore stability in Tata Trusts following internal disputes that risk affecting Tata Sons, India’s largest conglomerate, according to The Economic Times. The conflict involves four trustees within Tata Trusts, who are said to have acted as a “super board,” challenging Chairman Noel Tata’s authority.
00:00Thank you for staying with India today and we now get you breaking news coming in.
00:03Seems like there is turmoil in the Tata group where leadership war is haunting the Tatas.
00:09Now the government is playing peacemaker in trouble that is mounting within the Tata group.
00:14Government has asked Tata honchos to restore stability.
00:18There is turmoil in India in Crown Jewel where reports suggest that trust issues that are emanating in the Tata group.
00:27The trustees who are now at loggerheads, Tata's son's chief Noel Tata who also met with union home minister Amit Shah and large stakes as this is the 180 billion dollar empire that now stands at crossroads.
00:43We are trying to get further details of how exactly are the issues being resolved and most importantly the points of contention that are now dominating the issues within the Tata group.
00:58Leadership war that is now haunting the Tatas and the government that is playing peacemaker in Tata trouble.
01:06The government has asked Tata honchos to restore stability, turmoil that is growing within India in Crown Jewel, the Tata group and the report suggests that trust issues that have primarily led to this situation within the Tata group.
01:23The government has asked the leadership to restore stability, the meeting that was aimed at maintaining calm within the Tata Trust which holds a controlling stake in Tata Sons, the holding company of India's largest conglomerate.
01:44Tentions stemming from a group of four trustees within the Tata Trust who have reportedly acted as a super bod undermining Chairman Noel Tata's authority.
02:11In a nearly hour long meeting that happened with union home minister Amit Shah and Finance Minister Nirmala Sitaraman delivering a firm message to Tata Trust Chairman Noel Tata and the others to maintain stability.
02:25Let me cut across to Chetan Bhutani who is getting us further details of what is brewing within the Tata group with regards to these trust issues and how is the government playing peacemaker.
02:34Well you know there have been various reports during the round and of course we have been getting confirmations from various senior officials of the government that yes the board of Tata Sons has met the top officials of the government.
02:50In fact we know that Home Minister Amit Shah and Nirmala Sitaraman were present during the meeting when Darius Khambatta and other senior officers of the Tata group met and actually wanted a resolution on the table because on the 10th of October they have a board meeting all set where there would be pressures of dilutions and other matters as well.
03:08Well we also know that the government has put its hard stance forward and they want that peace should be restored within the group as soon as possible because a lot of economical issues would arise if Tata group, one of the biggest conglomerates in the world has such corporate governance problems.
03:23However there is no such official confirmation if the government is going to actually take a small amount of cognizance or probably start any interference from their front.
03:31They just want that the group and the conglomerate should probably just solve out the issues between themselves as soon as possible before the board meeting which is slated to be held on October 10th.
03:39But we also know that the government is of the opinion that no such interference should be done in the corporate governance issues of any company but the government is only taking a very careful stance and observing the developments that are being undertaken at the Tata group as well.
03:57Alright Chetan and fact is that there is a lot at stake exactly how we spoke.
04:03Given the fact that can there be peace, how many days will it take, we don't know, anything that you are getting from your sources within the Tata group of the backdoor negotiations that are underway?
04:18Well you know of course we see that Tata is literally a salt to an aeroplane company which is invested in a whole lot of businesses from times immemorial.
04:28In fact since about 200 to 300 years old legacy the Tata group enjoys and of course after the demise of Ratan Tata the group has been diversifying and some issues have been coming up with the SP group as well.
04:39Because remember with Cyrus Mistry also such issues came up but now when the internal issues of board meetings and of course pushing the listing, mandatory listing of the NBFC of Tata Sons should have been avoided.
04:52But yes RBI in its stance totally made sure that said that any company is not above the law but yes certain relaxations should be given.
05:00So in order to light that but you know the government is of the opinion that there should be no issues arising out of such corporate governance issues.
05:08The government is very clear that they will not be interfering at all.
05:11They would not take a suo-moto-cognizance and they would also not be you know troubling any officials or you know summoning any officials.
05:18Because they would just be keeping a very close and a watchful eye on the developments at Tata board because on the October 10th the board is supposed to meet.
05:24But yes no official confirmation or a denial has come from the Tata group as well.
05:28So yes it's a wait and watch situation while the government is also taking a very keen eye and a close look at as well.
05:32Indeed Chetan because the fact that Union Home Minister Amit Shah and Finance Minister Nirmala Sitaraman have intervened, been part of this meeting, also speaks volumes.
05:44Really wanted to understand from you if somewhere the government fears that you know turmoil within the Tata group could have a huge impact on the Indian economy.
05:53And that is also why they are wanting to ensure that peace prevails at the earliest.
06:04Yes you know absolutely correctly pointed out.
06:07The government actually has made its stance very clear that you know we don't want any troubles within the Tata group.
06:12Because remember Tata is one of the largest and one of the oldest employers in the world.
06:16They have a huge lot of people employing be it IT, be it manufacturing, be it steel, be it chemicals, be it telecom.
06:21A whole lot of diversified portfolio Tata group enjoys plus enjoys a whole lot of credibility into the Indian society, into the Indian manufacturing space as well.
06:29So any troubles that the Tata group has within them should be resolved as soon as possible is what the government thinks.
06:35Again you know reiterating the fact that what my officials told me that we are just not wanting to have any you know interest in interfering with any corporate governance issues or any issues with respect to the Tata group.
06:47We just want to keep a close eye because anything that goes down with Tata group will eventually impact the entire society, the industry and of course the you know the professionalism of how the industry really works.
06:58So yes the government is just keeping a very close eye.
07:00There is no action as supposed to be taken because of course the vital would be subjudicing times to come.
07:05And secondly the government just wants to keep a note of what's really happening.
07:09Just wanting that the Tata group should just you know solve the issues within themselves as soon as possible, preferably before the board meeting on the 10th of October.
07:17Alright, keeping a close eye on every development for the moment Chetan, thank you for joining us.
Be the first to comment