Tata Steel removed Cyrus Mistry, the former head of Tata Sons, as chairman at a board meeting in Mumbai on Friday, the company said in a statement.
The move follows Mistry's ouster in October from the board of Tata Sons, the holding company of Tata Group firms, after the company criticised his performance.
Since then both Mistry and Tata Sons have been involved in a war of words blaming each party for problems in the $100-billion salt-to-software Tata conglomerate.
The board of Tata Steel also said on Friday that it would hold an extraordinary general meeting (EGM) on Dec. 21 to remove Mistry and independent director Nusli Wadia as directors on the board of the company.
O P Bhatt, independent director on the board of Tata Steel and former head of State Bank of India, has been elected as chairman of the board until the outcome of the EGM, the company said.
"The board appointed the independent director as the chairman keeping in mind principles of good corporate governance," it said.