The Shapoorji Pallonji (SP) Group, which holds an 18.38% stake in Tata Sons, has renewed its call for the public listing of the holding company of the $180-billion salt-to-electronics conglomerate, stating that greater transparency and good governance are essential amid recent developments related to the Tata Trusts.

In a statement released on Friday, the Shapoorji Pallonji Group stated that its position “has always been rooted in transparency, fairness, public interest, and adherence to the principles of good corporate governance”.

The SP Group, one of the largest shareholders in Tata Sons, said listing the company would “uphold the spirit of transparency envisioned by its founding father, Shri Jamsetji Tata,” and enhance confidence among employees, investors, and the Indian public.

The statement expressed confidence in the Reserve Bank of India (RBI), describing it as a constitutional and autonomous body that would take decisions grounded in equity and justice.

Referring to the scale-based regulatory framework, the group said RBI’s guidelines clearly state that a non-banking financial company should not act in a manner detrimental to investors. It added that the September 30, 2025, compliance deadline under the “Upper Layer” classification should be treated with “seriousness and sanctity”.

Calling the proposed listing a “moral and social imperative,” the SP Group said it would unlock significant value for over 1.2 crore shareholders of listed Tata companies—indirect stakeholders in Tata Sons and ensure more transparent governance of Tata Trusts, India’s largest public charity.

“A transparent and publicly accountable Tata Sons would pave the way for a robust and equitable dividend policy,” the statement said. “This would ensure sustained inflows to the Trusts for welfare and nation-building, true to the founding vision of the Tatas.”

The group clarified that its position is not in conflict with Tata Sons or Tata Trusts but aligns with Jamsetji Tata’s ideals of openness, accountability, and compassion. “Our relationship with the House of Tata spans generations, built on mutual respect and shared heritage,” the statement noted, adding: “We remain committed to shaping a future that upholds the legacy of both founding families.”

Founded in 1865, Shapoorji Pallonji and Company Pvt. Ltd is a global diversified enterprise with operations across Engineering & Construction, Infrastructure, Real Estate, Water, Energy, and Financial Services. The company operates in 35 countries and employs over 35,000 people.

The statement follows a growing rift between chairman Noel Naval Tata and some trustees led by Mehli Mistry. The dispute reportedly stems from a September 11 meeting of the Tata Trusts board, where trustees clashed over the reappointment of Vijay Singh, former defence secretary who has been a director since 2012 and trustee since 2018, as nominee director on the Tata Sons board, the holding company of the Tata group.

The Tata Trusts have a total of 13 trustees across their two main entities— the Sir Dorabji Tata Trust and the Sir Ratan Tata Trust. Among them, five serve on both boards: Noel Tata, Venu Srinivasan, Vijay Singh, Mehli Mistry, and Darius Khambata. The other trustees include Pramit Jhaveri (Sir Dorabji Tata Trust), Jimmy Tata, and Jehangir H.C. Jehangir (Sir Ratan Tata Trust).

The proposal, supported by Noel Tata and Venu Srinivasan, was rejected by four trustees—Mehli Mistry, Pramit Jhaveri, Jehangir H.C. Jehangir and Darius Khambata—according to an agency report. The dissenting trustees subsequently proposed naming Mehli Mistry to the Tata Sons board instead, a move that Noel Tata firmly opposed, citing the need “for transparent and values-driven” selection processes. The deadlock resulted in Singh having to resign from the Tata Sons board, though he remains a trustee at Tata Trusts.

Singh had first joined the Tata Sons board in 2013 but stepped down in 2018 after turning 70, the then-prescribed retirement age for Tata Trusts nominees. He was reappointed in 2022 at the age of 74, as the late chairman, Ratan Tata, had removed the norm of a fixed retirement age for nominated directors.

Given the Tata group’s enormous economic footprint, the government is said to be watching the developments closely.