TATA Controversy: Maharashtra Charity Commissioner issues notice to Tata Trusts. The Charity Commissioner has sought a reply from Tata Trusts by October 12. Trustee Venu Srinivasan had raised serious questions on the governance of the trusts. On September 24, Venu Srinivasan had filed a complaint alleging irregularities in Sir Dorabji Tata Trust. Now Maharashtra Charity Commissioner has issued a notice to Tata Trusts on this.
Let us tell you that there is a cold war going on for the last several months between Tata Sons Chairman N Chandrasekaran and Tata Trusts Chairman Noel Tata for power. Noel Tata has expressed objection to N Chandrasekaran being made the chairman of Tata Sons again.
However, there was a new twist in the matter when Venu Srinivasan, Joint Nominee Director of Tata Trusts, has jumped into the fight between N Chandrasekaran and Noel Tata. Venu Srinivasan, while justifying the appointment of N Chandrasekaran, leveled allegations against Tata Trusts Chairman Noel Tata. Venu Srinivasan, trustee of Sir Ratan Tata Trusts and his joint nominee director on the Tata Sons board, had asked the Maharashtra Charity Commissioner to immediately investigate the administration and governance of the trust. He has alleged serious governance lapses. Also expressed concern over the involvement of the Charitable Trust and its trustees in the affairs of Tata Sons.
Accused of deviating from social service and interfering in business decisions
According to Srinivasan, Tata Trusts is now deviating from its main work of social service and interfering in the business decisions of companies. The trustees themselves are engaged in arranging, negotiating and finalizing big business deals, which is against the rules of charity trust. Srinivasan has also demanded from the Charity Commissioner that Noel Tata should keep himself away from certain decisions till the investigation is completed. These include nominating representatives for general meetings of Tata Sons and voting on matters related to Article 121 on the company’s board. He has also demanded to stop trust meetings, circular proposals and changes in the board until the investigation is completed.
What are you stressed about?
The incident reflects growing tensions between the charitable trusts over governance and Srinivasan’s role as a major shareholder of Tata Sons. Tata Trusts owns 66% of the group’s holding company, Tata Sons. Of this, SDTT holds 27.98% in Tata Sons and Sir Ratan Tata Trust (SRTT) holds 23.56%, taking the total to 51.54%.