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N Chandrasekaran will not seek reappointment as Tata Sons chairman.
His current term is due to end in February 2027.
The decision follows months of reported uncertainty over his continuation.
Tata Trusts Chairman Noel Tata is central to the reported dispute.
More context
Differences reportedly emerged over governance, strategy and some unlisted businesses.
Tata Trusts owns roughly 66 percent of Tata Sons.
Some trustees were expected to consider opposing or withholding an extension.
The leadership change follows broader departures by figures linked to Ratan Tata.
Chandrasekaran has asked the board to begin succession planning.
His planned exit creates uncertainty over Tata Sons’ next leadership phase.