New Delhi, Aug. 13 -- Rumours are swirling over who will become chairman of India's largest conglomerate, Tata Sons, after N Chandrasekaran said he would not seek reappointment when his current term ends in February 2027.

The Sir Dorabji Tata Trust, one of the group's charitable institutions, passed a resolution to initiate the setting up of a selection committee "as soon as possible", Tata Trusts said in a statement on Thursday.

The $180-billion Tata Group, with businesses spanning aviation, cars, coffee and steel, has been grappling with a leadership crisis for nearly a year amid boardroom differences over issues including losses at some of its companies.

The situation escalated on Wednesday when Tata Sons chairman N Chandrasekaran a...