Goa, Sept. 19 -- A high-stakes dispute over the future of Tata Sons has erupted into the open after a tense board meeting exposed deep divisions between Tata Trusts Chairman Noel Tata and Tata Sons Chairman N Chandrasekaran.

The confrontation unfolded on September 17 at Bombay House, the Tata Group's headquarters in Mumbai, where directors gathered for what initially began as a routine meeting. The discussion later turned to the Reserve Bank of India's decision to reject Tata Sons' request for an exemption from mandatory listing requirements.

Noel Tata, who chairs the trusts that collectively own about 66% of Tata Sons, argued that the holding company should explore every available option to remain private. According to people familiar ...