Tata Trusts board meeting blocked amid inquiry into trustee violations

The Maharashtra Charity Commissioner has directed the Board of Trustees of Tata Trusts to defer its scheduled board meeting on Saturday pending an inquiry into alleged violations of the Maharashtra Public Trusts Act.

The directives were issued by State Charity Commissioner Amogh S. Kaloti under Section 36A(1) of the Maharashtra Public Trusts Act following complaints regarding the composition of the Board of Trustees of Sir Ratan Tata Trust and alleged non-compliance with Section 30A(2) of the Act.

Also Read: Why Tata Sons is facing pressure to go public | An explainer


Kaloti also directed the Board of Trustees not only to postpone the May 16 meeting, but also to refrain from convening any such meeting until the Inspector’s report is submitted.

Section 30A(2) of the Act governs the permissible number of perpetual trustees on a board. The recent amendment introduces a statutory cap on the number of perpetual (or life) trustees allowed on the board.

According to the communication sent by the Charity Commissioner’s office, the matter came under scrutiny after representations were submitted by advocate Katyayani Agrawal on April 18 and by Venu Srinivasan, trustee of Sir Ratan Tata Trust, on April 28. Both complaints sought urgent intervention by the Charity Commissioner, alleging that the trust’s board structure violated statutory provisions and calling for corrective action, including a reduction in the number of perpetual trustees and restoration of legal compliance.

Also Read: Tata Motors turns cautious on capex amid West Asia war headwinds

The issue also reached the Bombay High Court. In its May 13 order, the Division Bench noted that the Tata Trusts board meeting was scheduled for May 16 and recorded the petitioner’s contention that holding the meeting would be contrary to the mandate of Section 30A(2).

Following the complaints, the office of the Charity Commissioner referred the matter to the Assistant Charity Commissioner, who on May 13 ordered an Inspector inquiry under Section 37 of the Act. A report under Section 39 is still awaited.

Kaloti observed that if the board meeting were held and major decisions regarding the administration, management, or composition of the trust were taken before the inquiry report was submitted, it could result in further complications and multiplicity of proceedings.

“It would therefore be in the interest of the Trust, as well as in the interest of justice, that such meeting is deferred,” the order stated.

Sir Dorabji Tata Trust (SDTT) and Sir Ratan Tata Trust (SRTT), which together hold a majority stake in Tata Sons, had postponed key board meetings scheduled for Friday to May 16 amid legal challenges. These meetings now appear to have been indefinitely postponed until further notice from the Charity Commissioner.

The trusts were expected to review their representation on the Tata Sons board on May 16, including reassessing certain nominee directors, and to examine remarks by two vice-chairmen that were seen as favouring the listing of Tata Sons.

This is the second rescheduling of the board meetings, which were originally planned for May 12 and later advanced to May 8.

The trusts were also expected to discuss recent statements by vice-chairmen Vijay Singh and Venu Srinivasan, in which they explored the merits of a Tata Sons listing, and review the alignment between the trusts’ position and that of their nominees.

The SDTT board includes Noel Tata, Venu Srinivasan, Vijay Singh, Darius Khambata, Neville N. Tata, and Bhaskar Bhat. The SRTT board includes Noel Tata, Venu Srinivasan, Vijay Singh, Jimmy Tata, Jehangir H.C. Jehangir, and Darius Khambata.