N Chandrasekaran has resigned as chairman of Tata Sons but will continue in the role until the end of his current term in February, according to a source familiar with the matter, Reuters reported on Wednesday.
The development comes months after Tata Sons deferred a decision on Chandrasekaran’s reappointment amid differences with Tata Trusts chairman Noel Tata over the future governance of the conglomerate. The Times of India also reported on Wednesday that Chandrasekaran would continue in his current role until the end of his term.
Why Chandrasekaran Is Stepping Down: Tata Trusts Rift Explained
Tata Sons is the holding company of the Tata Group and oversees more than 30 companies, including Tata Consultancy Services (TCS), Tata Motors and Air India. Tata Trusts, the group’s philanthropic arm, owns a 66 per cent stake in Tata Sons.
In February, Tata Sons postponed a decision on extending Chandrasekaran’s tenure after Noel Tata opposed the move, Reuters reported at the time. According to a source cited by Reuters, Noel Tata had sought several conditions, including a commitment that Tata Sons would never be listed. Chandrasekaran was unwilling to make such a commitment, the source said.
The two sides have also disagreed over board representation, Reuters reported, citing people familiar with the matter.
What This Means for Tata Motors, TCS and Air India
Tata Sons did not immediately respond to a Reuters request for comment, while Chandrasekaran could not be reached for comment.
Chandrasekaran joined the Tata Group in 1987 and became CEO of TCS in 2009. He was appointed chairman of Tata Sons in 2017.
The leadership uncertainty comes as the Tata Group faces challenges across several businesses. Reuters has reported that Air India has come under regulatory scrutiny following a fatal crash, while TCS has faced pricing pressure. Jaguar Land Rover (JLR) has also been dealing with the impact of a cyberattack that disrupted production and affected Britain's economic output.
The resignation comes ahead of Tata Sons' annual general meeting scheduled for August 18, according to the Times of India.