Tata Trusts file caveat before charity commissioner amid Venu Srinivasan, Vijay Singh’s complaints: Report

The six Tata Trusts that collectively own 66% of Tata Sons have reportedly filed caveats before the Maharashtra Charity Commissioner. They seek to ensure that no adverse order is passed against them without first hearing their side. This follows complaints raised by trustees Venu Srinivasan and Vijay Singh regarding governance and the trusts’ role in Tata Sons’ affairs.

According to a report in Times of India, the caveats were filed on Wednesday after Srinivasan, vice-chairman of Tata Trusts and trustee of the Sir Dorabji Tata Trust (SDTT), complained to the charity commissioner on September 24. He requested an inquiry into SDTT’s governance and its involvement in Tata Sons’ commercial and strategic matters.

Singh, vice chairman of Tata Trusts and an SDTT trustee, has also approached the commissioner with similar concerns. He said he wrote to the charity commissioner around the same time as Srinivasan, seeking an inquiry into the trust’s governance and its role in Tata Sons’ affairs.

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Srinivasan’s complaint followed the September 17 Tata Sons board resolution backing N Chandrasekaran for a third term as chairman.

The caveats aim to avoid a repeat of an ex parte order issued in May. At that time, the charity commissioner directed the Sir Ratan Tata Trust (SRTT) board to postpone a meeting and refrain from holding meetings until an inspector’s report was submitted, the report said. This action followed complaints over its board composition and alleged non-compliance with Section 30A(2) of the Maharashtra Public Trusts Act.

SDTT, the largest Tata Sons shareholder, and the other five trusts have filed caveats under Sections 41D, 47 and 41E of the Act. These concern removal of trustees, suspension of boards and restraint on dealings in trust property.

Srinivasan has sought an inquiry into SDTT and asked that the trust be barred from holding meetings. He also requested that changes to its board be frozen and trustees be suspended or removed if violations are found. Additionally, he has sought restrictions on Noel Tata’s participation in certain Tata Sons decisions.

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The complaints also question the involvement of the trusts in commercial matters. These include discussions on liquidity for the Shapoorji Pallonji Group and proposals concerning Tata Sons’ listing.

Singh similarly raised concerns that SDTT’s substantial Tata Sons shareholding should not result in the trust acting as a commercial enterprise or directly participating in Tata Sons’ business affairs. Both trustees have also flagged potential tax implications for the trusts and their charitable corpus.

The submissions by Srinivasan and Singh are currently under consideration by the Maharashtra Charity Commissioner.