Venu Srinivasan seeks inquiry into Tata Trusts’ governance, alleges lapses: Report

Tatas boardroom tussle: Venu Srinivasan, trustee of the Sir Dorabji Tata Trust (SDTT) and Sir Ratan Tata Trust (SRTT), has reportedly called for an immediate inquiry by the Maharashtra Charity Commissioner into the administration and governance of the trusts. He alleged serious governance lapses and raised concerns about their involvement in Tata Sons’ commercial affairs.

According to a report in The Economic Times, Srinivasan, who serves as the joint nominee director of SDTT and SRTT on the Tata Sons board, questioned the appointment and continued status of Noel Tata as a perpetual trustee.

He also challenged the basis of Noel Tata’s chairmanship of Tata Trusts, the appointment of his son Neville, and his own exclusion from decision-making processes, as per the report.

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Tata Trusts owns 66% of Tata Sons, with SDTT holding 27.98% and SRTT 23.56%. Srinivasan expressed concern over the increasing involvement of Tata Trusts in Tata Sons’ strategic and commercial affairs. Referring to the Trusts’ statement on September 17 about alternatives to listing Tata Sons and Noel Tata’s proposal to provide liquidity to the Shapoorji Pallonji Group, he said the Trusts had assumed a direct role in identifying and negotiating substantial commercial transactions related to Tata Sons.

He argued that such involvement was inconsistent with SDTT’s charitable objectives and could jeopardise its tax-exempt status and charitable corpus. Srinivasan also cited a circular resolution dated September 16 that sought to restrain him from participating in or voting on Tata Sons’ proposed listing, the report added. He described this as an attempt to prevent him from exercising independent judgement and alleged a power grab within SDTT.

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In May, the Maharashtra Charity Commissioner barred SRTT from attending meetings or taking decisions following allegations of governance violations concerning life trustees. The directive was issued under Section 36A(1) of the Maharashtra Public Trusts Act, and the commission is yet to pass an order on the matter.

Srinivasan referred to provisions governing commercial activities by registered non-profit organisations, warning that violations could lead to cancellation of the trust’s tax registration. He requested the Charity Commissioner to initiate an immediate inquiry and take necessary action, including suspension or removal of trustees if warranted.

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He also sought restrictions on Noel Tata’s participation in certain SDTT and Tata Sons decisions and asked for the status quo to be maintained on SDTT’s board composition pending the inquiry, as per the report. On Monday, Tata Trusts proposed restructuring Tata Sons to preserve it as an unlisted private entity by merging two operating companies with the holding company.