Tata Trusts has been given until October 15 to present its arguments against a series of objections raised by former trustee Mehli Mistry. The Maharashtra Charity Commissioner adjourned the matter on September 8, granting the Trusts additional time to file their rejoinder following a request from their lawyers.
Mistry's objections are multifaceted, challenging the legality of his removal from three significant Tata trusts: the Sir Ratan Tata Trust, the Sir Dorabji Tata Trust, and the Bai Hirabai Jamsetji Tata Navsari Charitable Institution. While Mistry is not seeking reinstatement, he has brought forward allegations of governance lapses and questioned the eligibility of certain trustees before the regulator.
Key Allegations and Governance Concerns
The proceedings stem from Mistry's challenge to 'change reports' filed with the Charity Commissioner, which record alterations in the composition of public charitable trusts. Lawyers for Tata Trusts cited the recent departure of Vijay Singh from the Sir Ratan Tata Trust as a factor necessitating more time to prepare their response.
Mistry, who resigned from the three trusts last October after boards voted not to renew his appointments, has become central to a broader dispute concerning governance, potential conflicts of interest, and trustee appointments across some Tata Trusts. The Trusts have consistently contested these allegations, which are yet to be adjudicated by the Charity Commissioner.
Fiduciary Duties and Trustee Remuneration
In June filings, Mistry raised concerns about various aspects of the Tata Trusts network, including trustee appointments, board decisions, and remuneration arrangements. A core issue revolves around the fiduciary duties of trustees, specifically questioning whether compensation and benefits received from Tata group companies align with these duties.
Mistry contends that any compensation earned by trustees as nominees of charitable trusts should accrue to the trusts themselves, rather than to individual trustees. He also highlighted a resolution passed on October 17, 2024, by trustees of the Sir Ratan Tata Trust and the Sir Dorabji Tata Trust to renew existing tenures for continuity after Ratan Tata's death, alleging that some trustees later voted against renewing his term.
Conflicts of Interest and Eligibility
Further allegations from Mistry include potential conflicts of interest involving prominent trustees such as Tata Trusts chairman Noel Tata, Vijay Singh, and Venu Srinivasan. These concerns involve alleged non-disclosures of income from other Tata group companies and possible conflicts arising from Srinivasan's roles, including his position as chairman emeritus of TVS Motor Company.
Mistry also specifically challenged the eligibility of trustees at the Bai Hirabai Jamsetji Tata Navsari Charitable Institution. Citing the trust's 1923 deed, which restricts eligibility to Parsi Zoroastrians residing in the erstwhile Bombay Presidency, he alleged that the appointments of Srinivasan and Singh were invalid. Tata Trusts has disputed this, stating that non-Zoroastrians have served on the trust since 2000, based on legal advice, while acknowledging the original deed's restrictions.