Nirmala Sitharaman urges Tata Sons and Tata Trusts to settle rift amicably

Finance Minister Nirmala Sitharaman said in Mumbai on Monday that the differences between Tata Sons and its largest shareholder, Tata Trusts, should be settled amicably and as early as possible. She stressed that the dispute should not play out in public.

Calling the Tata group a "very critical component" of the Indian economy, she said the two sides should talk it out among themselves so that normalcy returns quickly. She also pointed to the maturity of the group's leadership as a reason to expect a faster resolution.

Sitharaman described the matter as delicate, saying it needs commercial acumen as well as cordiality among stakeholders. Asked whether the government would try to bring both sides to the table, she declined to comment and called the issue "sensitive".

She also acknowledged the Parsi community's role in building Tata into a global brand, and noted the wide range of businesses the conglomerate is involved in.

The rift has been building for a few months at the 158-year-old group. It surfaced publicly at a September 17 board meeting, which exposed a clear split between the Tata Sons board, led by N Chandrasekaran, and Tata Trusts, headed by Noel Tata.

Her remarks came as foreign investors have been pulling money out of Indian markets and calls for tax cuts are growing. On those topics she offered nothing specific, saying only that she is sensitive to the "louder" voices of concern.

For markets, the message is that policymakers want the Tata matter contained. A group of this size touches many sectors, so a swift, quiet settlement would reassure investors. Read the original report here.

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