The Maharashtra Charity Commissioner has reportedly issued a directive to the Sir Dorabji Tata Trust (SDTT), a significant shareholder in Tata Sons, to address formal complaints lodged by its trustees, Venu Srinivasan and Vijay Singh. The complaints, filed on September 25, raise serious concerns about the trust's management and governance.
Allegations of Commercial Interference and Charitable Status Risk
Venu Srinivasan, Chairman Emeritus of TVS Motor Co., and Vijay Singh, a former defense secretary, have accused SDTT of direct involvement in the commercial affairs of Tata Sons. They further allege that this involvement could jeopardize the charitable status of the trust itself. Their complaints also highlight concerns regarding interference with the independent decision-making processes of nominee directors.
A report, citing an executive familiar with the matter, indicates that the Charity Commissioner's letter to SDTT, which included copies of the complaints, set an October 12 deadline for the trust to provide its response.
Call for Investigation and Leadership Changes
Srinivasan has specifically urged the Charity Commissioner to launch an investigation into the allegations. Should wrongdoing be identified, he has called for appropriate action, potentially including the suspension or removal of SDTT chairman Noel Tata.
This development unfolds amidst a broader dispute concerning the future of Tata Sons, particularly regarding a potential public listing. On September 17, Noel Tata reportedly opposed the reappointment of N Chandrasekaran as Tata Sons chairman for a third term, while other board members supported his continuity, emphasizing the need for a public listing.
Tata Trusts Dismiss Concerns
In a letter dated October 5, SDTT, which holds a 27.98% stake in Tata Sons, dismissed the concerns raised by Srinivasan and Singh. Noel Tata reportedly stated that it was difficult to reconcile the trustees' demand for collective deliberation with their complaints to the Charity Commissioner just five days prior. These complaints had sought an order to prevent SDTT from convening or acting through meetings or circular resolutions.
According to an executive, the letter from SDTT also bore the signatures of Neville Noel Tata, former Titan CEO Bhaskar Bhat, and lawyer Darius Khambata. These four trustees noted that the complaints also aimed to restrict Noel Tata from representing SDTT at Tata Sons general meetings, voting on certain board matters, and sought a freeze on SDTT's board composition. They expressed hope that Srinivasan and Singh would withdraw their complaints.