N. Chandrasekaran, the chairman of the Tata Group, will not seek a new mandate in February due to internal tensions within the board of directors.

N. Chandrasekaran, the chairman of the Tata Group, announced that he will not seek a new term in February, after the board of Tata Sons failed to reach an agreement on extending his term by five years.

His decision, made following internal tensions, brings uncertainty for the future of the group. Chandrasekaran, who took over leadership in 2017, mentioned that the lack of unanimous support led to the postponement of the decision. His resignation comes ahead of the annual general meeting of Tata Sons and has resulted in a drop in the shares of Tata companies.

The group, with a unique structure in which Tata Trusts owns 66% of Tata Sons, is facing governance issues and internal divergences, especially regarding nominations and funding approvals. These tensions are particularly concerning in the context of the difficult recovery of Air India, acquired in 2022.