A Tata Trust board meets amid shadows over old share deal

Mumbai: Trustees of the Sir Dorabji Tata Trust met on Monday and discussed routine business, people in the know said.

A petition filed before the Maharashtra Charity Commissioner seeking an inquiry into a 1989 transfer of Tata Sons shares to the father of current Tata Trusts chairman Noel Tata did not figure in the discussions, they said.

"The meeting was convened on Monday to discuss routine matters including annual accounts and key trust initiatives," said a person privy to the matter.


It proceeded as scheduled and focused on regular business, the people said. Trustee Vijay Singh did not attend, while Venu Srinivasan participated via video conference, they said.

Matters relating to one trust are generally not deliberated upon by another trust under the Tata Trusts umbrella, notwithstanding the overlap in trustees, according to people aware of the proceedings.

The meeting was held days after an individual lodged a complaint with the Charity Commissioner, alleging that the transfer of 833 Tata Sons shares from the Navajbai Ratan Tata Trust to the late Naval H Tata in 1989 lacked legal necessity, valid transfer documentation and consideration.

The complainant, who urged the regulator to safeguard the interests of the public charitable trusts, raised concerns over an alleged conflict of interest involving Noel Tata, contending that as one of Naval Tata's successors-in-interest, he should not participate in any deliberations concerning the matter.

Tata Trusts on Friday denied the allegations, terming those "baseless, unsubstantiated and mala fide" and maintained that the transaction was lawful and fully compliant with the regulations in force at the time.

It said the accusations formed part of a "wilful, malicious and orchestrated campaign" aimed at discrediting an institution that has been engaged in philanthropic activities in India for over 130 years. The trusts described the petitioner a "serial litigator" and said a recent petition filed by him before the Bombay High Court was withdrawn after the court expressed reservations about the manner in which it had been instituted.

In May, the Charity Commissioner had restrained the Sir Ratan Tata Trust from holding meetings or making decisions pending an inquiry into alleged violations relating to trustee composition and compliance with provisions of the Maharashtra Public Trusts Act. One of the complaints cited in that proceeding was also filed by the same complainant who has now raised the share-transfer issue.

That order had come just a day before the board meetings of the Sir Ratan Tata Trust and the Sir Dorabji Tata Trust, scheduled for May 16. While there were ambiguities about whether the order covered both trusts, it was later clarified that it applied to only the Sir Ratan Tata Trust.