Tezzbuzz Desk: An important matter related to Tata Group is in discussion these days. Sir Ratan Tata Trust (SRTT) is preparing to file a fresh appeal before the Charity Commissioner of Maharashtra this week to get the ban on its meetings lifted. The ban on trust meetings has now started affecting the appointment process of the new chairman of Tata Sons. Apart from this, grants worth Rs 400 crore and many important decisions are also stuck.
Tata Sons' current chairman N Chandrasekaran has already told the board that he will not continue in the post after the completion of his current term. His tenure ends on 20 February 2027. In such a situation, it is important to start the process of appointing a new chairman on time. According to the rules of Tata Sons, a special committee consisting of five members is formed to select the chairman. In this, three members are nominated jointly by Sir Dorabji Tata Trust (SDTT) and Sir Ratan Tata Trust. But due to the ban on SRTT meetings, the Trust is not able to move ahead in this process. This is the reason why the Trust now wants to remove the ban as soon as possible.
The ban on trust meetings also affected the Annual General Meeting (AGM) of Tata Group. The AGM to be held on August 18 had to be postponed for the first time in the history of Tata Group. Now the biggest challenge before the Trust is to restart the meetings, so that important decisions including the appointment of a new Chairman can be taken. Actually, the whole controversy started after the complaint of Advocate Katyayani Aggarwal. The complaint alleged that the number of lifetime trustees on the board of SRTT exceeds the prescribed limit. Under Section 30(A)(2) of the Maharashtra Public Trust Act, the number of lifetime members in a trust cannot exceed 25 percent. Trustee Venu Srinivasan also expressed similar concerns. After this, Maharashtra's Charity Commissioner AS Kaloti had banned the meetings of the trust on May 15 till the investigation is completed. The proportion of lifetime members further increased after Vijay Singh's resignation in August, further exacerbating the controversy.
The ban on meetings has also affected the functioning and financial decisions of the Trust. Tata Trust Chairman Noel Tata had earlier expressed concern that important grants worth about Rs 400 crore were pending. Apart from this, many works like approving important accounts are also being affected. Interestingly, the Trust is avoiding going directly to the Bombay High Court regarding this matter. It is believed that the lengthy legal process may further delay the disposal of the case. Therefore, the Trust is currently trying to get relief at the level of Charity Commissioner itself. Now everyone's eyes are on what decision the Charity Commissioner takes on the new appeal of the Trust. If the ban on meetings is lifted, then the process of searching for a new chairman of Tata Sons and other important decisions can proceed again.