India’s most well-known and prestigious corporate house—the Tata Group.TAG_OPEN_p_23 From the outside, thousands of employees, hundreds of companies, projects around the world, and a long history of success. But somewhere inside, there is an invisible but deep power struggle going on, which has created a conflict that could turn the future of the group today.

At the center of this struggle is Mehli Mistry.TAG_OPEN_p_22 And his abrupt departure has further exacerbated the rifts within the Tata empire. Mehli Mistry joined Tata Trusts in 2022. He is also a representative of the Shapoorji Pallonji (SP) Group, which holds an 18% stake in Tata Sons. But less than three years later, most of the trustees blocked his reappointment. Why? The reason may seem simple—but it is actually very complex.

Noel Tata (Ratan Tata’s brother) and his supporters want Tata Sons to remain a private company.TAG_OPEN_p_21

Mistry wants Tata Sons to be “listed”. At Tata Trusts, the policy isn’t just different — the battle has become a contest between two powerhouses.

TAG_OPEN_p_20 In 2022, the Reserve Bank of India (RBI) classified Tata Sons as a high-end core investment company. This classification enforced the company to go public by 2025. That’s why Mistry said, “Listing is mandatory, Tata Sons can’t survive it.” But Noel Tata’s side is adamant that “Tata Sons must remain private, and if it goes public, for the first time in history, the trust’s control will be weakened.” This created a strong divide within the trust into two camps. As a result, Mistry left the trust.

The SP Group has been the largest minority shareholder of Tata Sons for decades.TAG_OPEN_p_19 But now they are in debt of more than Rs 60,000 crore.

His 18% stake in Tata Sons is his biggest ‘collateral’.TAG_OPEN_p_18 If Tata Sons is listed—

It is easier for them to sell those shares and pay off the loan. This is why the mechanic side sees listing as their “way to survive”.

If Tata Sons becomes a public company, many of the powers of Tata Trusts will be diminished, powers to appoint a chairman will be weakened. The trust may have a veto on investment decisions of more than Rs 100 crore. The role of small shareholders will increase, will be directly regulated by SEBI.

This is not just a formal change — the 150-year-old balance of power in the Tata group could be shaken.TAG_OPEN_p_16 Using a little more inner language “could change the ‘command center’ of the Tata empire.” That’s why Noel Tata’s side doesn’t like listings. The controversy was not limited to the boardroom.  Tata Sons Chairman N. Chandrasekaran, Noel Tata and other trustees met Home Minister Amit Shah and Finance Minister Nirmala Sitharaman. Tata Sons is likely to have to raise a huge debt by buying back the stake with the SP Group. There was also talk that the government could have been asked for “regulatory concessions”. It has now become a bigger politico-economic issue than a corporate one.

In the last 10 years, Tata Sons’ profits have fluctuated sharply.TAG_OPEN_p_15 One year profits are big, the next year expenses are up. If the company goes public—

Hundreds of investors will have to see if the results have “improved or fallen” every three months. And now many of the Tata group subsidiaries are in a transitional phase. It’s not the end — it’s just the beginning of the story, even if Mehli Mistry is removed from the trust, his group is ready to go to court. Noel Tata’s side are standing in a hard line to maintain their control. The RBI is quietly watching regulatory compliance. It is not yet clear how much the government will intervene. The question is, will Tata Sons become a public company in the future? Or will the trust-power that will not allow the 150-year-old private structure to be dismantled will prevail?**No one has the answer now. But one thing is for sure, this controversy has written a new chapter in the history of the Tata Group.