Tata Trusts refutes 1989 share transfer claims, says transaction was fully lawful

Tata Trusts has strongly denied allegations surrounding a 1989 share transfer by the Navajbai Ratan Tata Trust (NRTT) to the late Naval H. Tata, calling the claims "baseless, unsubstantiated and malafide." The charitable institution has also announced plans to initiate legal action against those making the accusations, asserting that the transaction was lawful and fully compliant with regulations in force at the time.

In a detailed statement issued on Friday, Tata Trusts said the share transfer had been undertaken for consideration and approved through all required legal and corporate processes. The Trusts emphasized that the transaction was reviewed and cleared by eminent jurist Nani A. Palkhivala, approved by the then board of Tata Sons, and executed through a valid transfer form duly stamped by the Registrar of Companies.

"The Tata Trusts would like to state that any suggestion of impropriety on the part of either the Sir Ratan Tata Trust (SRTT), NRTT, or any of the parties to the transaction, is categorically denied," the statement said.

Allegations baseless

The Trusts further alleged that the accusations were part of a deliberate attempt to damage the reputation of the Tata philanthropic institutions and members of the Tata family. According to the statement, the allegations seek to tarnish the legacy of the late Naval H. Tata and his sons, including the late Ratan N. Tata, as well as Jimmy Tata and Noel Tata.

The controversy stems from allegations raised regarding the transfer of shares from NRTT to Naval Tata in 1989. However, Tata Trusts maintained that the claims have no factual basis and are being advanced by individuals without any established legal standing in the matter. 

Serial litigator

The Trusts specifically referred to petitioner Suresh Tulsiram Patilkhede, describing him as a "serial litigator" who had previously filed multiple cases against Tata Trusts in 2020. The statement claimed that these actions were aimed at disrupting the functioning and philanthropic activities of the Trusts.

Tata Trusts also cited observations made by the Bombay High Court in a recent writ petition filed by Patilkhede against the Sir Ratan Tata Trust. According to the Trusts, the court expressed concern over the manner in which the petition had been filed, noting that representations appeared to be made by unidentified third parties whose details were not disclosed before the court. The petition was subsequently withdrawn with the court's permission.

Calling the latest allegations part of a "wilful, malicious and orchestrated campaign," Tata Trusts said the objective appeared to be discrediting an institution that has operated for more than 130 years and has maintained high standards of public trust, accountability and ethical conduct.

Reiterating its position, Tata Trusts said it "categorically refutes" the allegations and will pursue appropriate legal remedies to protect its goodwill and reputation. The Trusts remain among India's largest philanthropic organizations, supporting initiatives across healthcare, education, rural development, livelihoods and social welfare.