Venu Srinivasan, a prominent trustee of both the Sir Dorabji Tata Trust (SDTT) and the Sir Ratan Tata Trust (SRTT), has reportedly urged the Maharashtra Charity Commissioner to launch an immediate inquiry into the administration and governance of these influential trusts. Srinivasan’s appeal stems from allegations of significant governance lapses and concerns over the trusts' increasing involvement in the commercial operations of Tata Sons.
According to reports, Srinivasan, who also serves as a joint nominee director for SDTT and SRTT on the Tata Sons board, has specifically challenged the appointment and ongoing status of Noel Tata as a perpetual trustee. His concerns extend to Noel Tata's chairmanship of Tata Trusts, the appointment of his son Neville, and his own alleged exclusion from critical decision-making processes.
Concerns Over Commercial Involvement and Tax Status
Tata Trusts collectively hold a controlling 66% stake in Tata Sons, with SDTT owning 27.98% and SRTT 23.56%. Srinivasan has voiced apprehension regarding what he perceives as the trusts’ escalating direct engagement in Tata Sons' strategic and commercial affairs. He cited a September 17 statement from the Trusts concerning alternatives to listing Tata Sons and Noel Tata's proposal to provide liquidity to the Shapoorji Pallonji Group.
Srinivasan contends that such direct involvement in substantial commercial transactions related to Tata Sons is inconsistent with SDTT’s charitable objectives. He warned that this could potentially jeopardize the trust’s crucial tax-exempt status and its charitable corpus. Furthermore, he highlighted a circular resolution dated September 16, which he claims sought to prevent him from participating in or voting on Tata Sons' proposed listing, describing it as an attempt to undermine his independent judgment and a “power grab” within SDTT.
Previous Directives and Call for Action
The Maharashtra Charity Commissioner had previously issued a directive in May, barring SRTT from attending meetings or making decisions, following allegations of governance violations concerning its life trustees. An order on that matter is still pending from the commission.
Srinivasan emphasized provisions governing commercial activities by registered non-profit organizations, cautioning that violations could lead to the cancellation of the trusts' tax registration. He has formally requested the Charity Commissioner to initiate an immediate inquiry and implement necessary actions, including the potential suspension or removal of trustees if warranted. Additionally, he sought restrictions on Noel Tata’s involvement in certain SDTT and Tata Sons decisions, advocating for the maintenance of the status quo on SDTT’s board composition until the inquiry concludes. Separately, Tata Trusts recently proposed a restructuring of Tata Sons aimed at preserving its status as an unlisted private entity by merging two operating companies with the holding company.