Tata Group defers decision on Chandrasekaran's reappointment as chair, CNBC-TV18 reports

Feb 24 (Reuters) - India's salt-to-software Tata Group has deferred a decision on reappointing N Chandrasekaran as chairman for another five years, CNBC-TV18 reported on Tuesday, citing sources.

Chandrasekaran, 62, joined the Tata Group in 1987 and rose through the ranks to become the CEO of Tata Consultancy Services in 2009 before taking charge as Tata Sons' chair in February 2017.

During the board meeting, Tata Trusts chairman Noel Tata raised the issue of losses in certain group companies, and asked that Chandrasekaran commit in writing that Tata Sons will never be listed, the CNBC-TV18 report said.

Several board members backed Chandrasekaran, arguing that losses at one group company should not eclipse the group's overall performance or the chair's contribution over the years, according to the report.

While some directors called for a vote, Chandrasekaran urged a deferral, CNBC-TV18 reported.

Tata Sons did not immediately respond to a Reuters request for comment.

Tata Trusts owns a 66% stake in Tata Sons, giving it power over major strategic decisions. Tata Sons, in turn, oversees 30 firms ranging from consumer goods, autos and airlines, including the likes of Jaguar Land Rover, Tata Consultancy Services TCS.NS, Tata Motors TAMO.NS and Air India.

The disagreement within Tata Trusts, more than a year after the death of family patriarch Ratan Tata, has raised fears of a repeat of a bitter 2016 public spat between the charity and Tata Sons that tarnished the reputation of India's most storied group.

Founded in 1868 in Mumbai by Parsi industrialist Jamsetji Nusserwanji Tata, the Tata Group remained under the leadership of the Tata family until 2012, when Ratan Tata handed over the chairmanship to Cyrus Mistry of the Shapoorji Pallonji Group.

In 2016, tensions between Tata and Mistry led Tata Sons to remove Mistry as chairman. Mistry passed away in 2022, but his family's firm, Shapoorji Pallonji, continues to hold an 18% stake in Tata Sons.

Following Ratan Tata's death in 2024, his half-brother Noel Tata was appointed head of the Tata Trusts.

Over the past year, Chandrasekaran has faced a series of challenges, including intense regulatory scrutiny on Air India after a fatal crash, pricing pressure at crown-jewel Tata Consultancy Services TCS.NS, and a cyberattack at Jaguar Land Rover that disrupted production and dented Britain's economic output.