How Fight for India’s Largest Group Got Murkier: QuickTake Q&A

A power struggle at India’s largest conglomerate, Tata Group, has moved to the courts from the boardroom. A suit has been filed to decide the group’s fate following a battle sparked by the unexpected ouster of Cyrus Mistry as chairman of its controlling company and the reinstatement of his predecessor, Ratan Tata. From table salt to luxury Jaguar sedans, the businesses under the 148-year-old group account for about 5 percent of India’s gross domestic product.

The board of Tata Sons, which controls the group’s major companies, removed Mistry and appointed Ratan Tata as interim chairman on Oct. 24. Directors later cited a "trust deficit" as Mistry, who was handpicked for the role by Ratan Tata, failed to address issues they had raised. Mistry’s near four-year tenure, they said, was marked by "repeated departures" from the group’s culture and ethos. Mistry, who remains a Tata Sons director, was also accused of seeking to wrest control of the group’s main operating companies. The directors of Tata Sons will meet on Feb. 6 to consider Mistry’s ouster from the board.