Nationalist Congress Party (SP) chief Sharad Pawar has weighed in on the Tata Sons IPO row, saying the need of the hour is to protect its legacy. He said the rights given to the trust-nominated directors, including a say in the appointment of the chairman and other key decisions, should be honoured.

Pawar said the Articles of Association (AoA) of Tata Sons govern the company even from the view of corporate governance. “The Articles of the Group give the majority owner’s nominees a decisive voice in choosing the Chairman, and that agreement should be respected, as that is the very design of the Tata Group. We must protect the Group that devoted itself to the development of India,” he said.

“Shri Jamsetji Tata’s vision, carried forward by Sir Dorabji and Sir Ratan Tata, was that wealth created by the enterprise returns to society. Their holdings were placed in trusts precisely so that no individual would own the group, and the majority stakeholder of the business would be trusts that are dedicated to charitable objectives. Therefore, the ownership structure of Tata Sons embraces philanthropy,” said Pawar in a statement issued on Tuesday.

Story continues below.
Subscribe to see fewer ads.

Pawar said that operating companies sit under Tata Sons, and Sir Ratan Tata Trust and Sir Dorabji Tata Trust, with allied trusts, own about 66 percent of Tata Sons. “This design is deliberate, not incidental. Therefore, good business, thereby the dividends fund public good. Dividends on the Trusts’ majority stake flow directly into health, education, research and rural livelihoods,” he said.

On 17 September 2026, the Tata Sons board voted 4-1 to reappoint N Chandrasekaran as Executive Chairman for another stint of five years from February 2027, and approved steps toward public listing of Tata Sons.

Noel Tata, Chairman of Tata Trusts, voted against both; the Trusts’ second nominee, Mr Venu Srinivasan, voted in favour.

“Tata Trusts, which own about 66 percent of Tata Sons, hold that the resolution is void from the outset, since the Articles of Association require a majority of Trust-nominated directors present to back a Chairman’s appointment, and with two nominees present, a majority would mean both. The Tata group is a national institution rooted in Maharashtra, and its charitable ownership must be protected. The Articles adopted by shareholders that give trust-nominated directors an affirmative vote on key decisions, including the Chairman’s appointment, should be honoured,” said the veteran leader.