Tata Sons share: Charity Commissioner seeks reply from Noel Tata on 1989 share transfer

The Maharashtra Charity Commissioner's office has sought a detailed explanation from Noel Tata, chairman of Tata Trusts and trustee of the Navajbai Ratan Tata Trust (NRTT), regarding allegations related to the 1989 transfer of 833 Tata Sons shares from the trust to the late Naval H Tata.

According to a report in The Economic Times that reviewed the letter, the regulator said it will decide on ordering an independent inquiry after examining Noel Tata's response and supporting documents. The commissioner's office received a communication from Vijay Singh, trustee of NRTT and vice chairman of Tata Trusts, referring to a legal notice alleging that the January 18, 1989 transfer was an unlawful alienation of assets from a public charitable trust to private hands.

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The regulator noted that Singh's communication mentioned Tata Trusts had publicly denied the allegations, but the denial was authorised by a direct beneficiary of the share transfer, raising a possible conflict of interest, the report added. The charity commissioner has asked Noel Tata to clarify five aspects of the transaction, including the necessity of the transfer, supporting documentation, whether the trust received consideration based on an independent valuation, if the shares benefited Naval Tata's family, and compliance with the law at the time, it said.

The communication stated that Noel Tata's response would be crucial in deciding whether to initiate an independent inquiry under the Maharashtra Public Trusts Act. It directed him to submit his reply with supporting documents within two weeks, citing the principles of natural justice. 

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This development follows the state charity commissioner's recent restraint on the Sir Ratan Tata Trust from holding meetings or making decisions pending an inquiry into alleged violations related to its board composition and compliance with the Maharashtra Public Trusts Act.