New Delhi [India], November 13 (ANI): Amid differences over the proposed listing of Tata Sons and leadership decisions within Tata Trusts, trustees Venu Srinivasan and Vijay Singh have challenged fellow trustee Darius Khambata's stance, maintaining that listing the holding company would not undermine the Tata model while raising concerns over governance and decision-making within the Trusts.

In a letter dated November 11, addressed to Khambata, the two trustees disputed his arguments regarding the Reserve Bank of India's (RBI) listing requirements and the events surrounding the leadership of Tata Sons.

'You describe listing as an existential threat to the Trusts and to the Tata model. We have seen no evidence for that proposition,' the letter stated.

The trustees argued that several companies controlled by foundations or trusts operate as listed entities, citing Tata Consultancy Services (TCS) as an example.

'In our view, an institution's character is preserved by the quality of its governance and accountability, not by its listing status,' they said.

The letter highlighted that Tata Sons had engaged with the RBI since 2023, including repayment of debt and submission of a deregistration application in March 2024.

According to the trustees, following a two-year review, the RBI concluded that Tata Sons remained a systemically significant financial institution required to comply with the listing framework.

The dispute also extends to the reappointment of Tata Sons Executive Chairman N. Chandrasekaran.

The trustees stated that on July 28, 2025, the Sir Dorabji Tata Trust and Sir Ratan Tata Trust unanimously recommended Chandrasekaran's reappointment for another five years.

However, the decision was deferred in February 2026, resulting in seven months of leadership uncertainty before the Tata Sons Board acted on September 17, 2026.

'The Board's decision cannot fairly be regarded as the origin of a difficulty that had been developing within the Trusts for months,' the letter said.

The trustees further questioned whether the opposition to listing was driven by concerns over the Tata model or by efforts to preserve control over Tata Sons.

'In our view, the real threat to the Tata model is neither the listing of Tata Sons nor a Board that exercises independent judgment,' they said, pointing instead to weakening collective governance and concentration of authority.

The letter comes amid differences within Tata Trusts over the future governance of Tata Sons, including the implications of regulatory listing requirements and the role of trust-nominated directors in corporate decision-making. 

The dispute intensified after the RBI rejected Tata Sons' application to surrender its Core Investment Company registration in September 2026. At its September 17 meeting, the Tata Sons board backed N. Chandrasekaran's reappointment for another five years and steps towards a stock market listing, despite opposition from Tata Trusts Chairman Noel Tata. 

Tata Trusts, which collectively hold around 66 per cent of Tata Sons, have maintained that the holding company should remain unlisted and that legally permissible alternatives must be examined. 

Earlier in November, Khambata declined reappointment to the Sir Dorabji Tata Trust and Sir Ratan Tata Trust, questioning the effectiveness of engagement with the RBI and criticising the September 17 board decisions. (ANI)