Tata Sons chairman N Chandrasekaran steps down, will complete current term

NEW DELHI: Tata Sons Chairman N Chandrasekaran on Wednesday resigned but will complete his current term at the principal holding company of the $400 billion Tata Group, Reuters reported, citing a source with direct knowledge of the matter.The development comes months after Tata Sons postponed a decision on Chandrasekaran's reappointment amid differences with Noel Tata, chairman of Tata Trusts, over the group's future governance, Reuters had previously reported.Tata Sons controls more than 30 companies in the conglomerate, including Tata Consultancy Services (TCS), Tata Motors and Air India. Tata Trusts, the group's charitable arm, owns a 66% stake in Tata Sons.In February, Tata Sons postponed a decision on extending Chandrasekaran's tenure after Noel Tata opposed the move, Reuters reported. According to a source cited by the news agency, Noel sought several conditions, including a commitment that Tata Sons would never be listed. Chandrasekaran was unwilling to give that commitment, the source said.The two sides have also clashed over board representation, Reuters reported, citing sources familiar with the matter.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 before taking over as Tata Sons chairman in 2017.Over the past year, the Tata conglomerate has faced regulatory scrutiny of Air India following a fatal crash, pricing pressure at TCS and a cyberattack on Jaguar Land Rover that disrupted production and weighed on Britain's economic output, according to Reuters.Differences between Tata Sons and Tata Trusts have surfaced in the past, most notably in 2016 when Tata Sons' board removed then-chairman Cyrus Mistry following a fallout with group patriarch Ratan Tata.Get the latest Business News and Live updates. Download the TOI app.