Tata Sons Chairman N Chandrasekaran has stepped down from his post yet will remain until his term concludes in February, according to a source close to the situation cited by Reuters.
The move occurs as the Tata Group faces multiple business hurdles and follows tensions between Tata Sons and Tata Trusts regarding his reappointment.
Chandrasekaran’s term ends in February. The unnamed source indicated he resigned but will serve out the remainder of his time.
Tata Sons serves as the main holding firm for the $400-billion Tata Group. It oversees more than 30 companies including Tata Consultancy Services, Tata Motors and Air India. Tata Trusts holds 66 percent ownership of Tata Sons.
Disagreement over reappointment prompted the development. In February the board delayed a decision on extending his role after Noel Tata, chairman of Tata Trusts, raised objections, per an earlier Reuters account.
Noel Tata sought assurances that Tata Sons would never list publicly. Chandrasekaran declined to provide that pledge. The parties also differed on board composition.
Shares in Tata companies dropped as much as 4 percent on Wednesday following the report, with Tata Consultancy Services falling 4.1 percent and Tata Motors declining 2.8 percent.
