Tata Trusts row: Fresh complaint filed with Charity Commissioner over share transfer

A fresh complaint has been lodged with the Maharashtra Charity Commissioner seeking intervention ahead of a key meeting of trustees of Sir Dorabji Tata Trust (SDTT) scheduled for June 8, alleging irregularities in the transfer of 833 shares of Tata Sons Ltd from the Navajbai Ratan Tata Trust nearly four decades ago.

Advocate Katyayani Agrawal, for petitioner Suresh Tulsiram Patilkhede, requested the Charity Commissioner to initiate an inquiry into the transfer of the shares to late Naval H. Tata in January 1989 and to take steps to safeguard the interests of the public charitable trusts.

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The development assumes importance as the Charity Commissioner had taken cognisance of a complaint by the same petitioner in its order on 15 May, when it restrained Tata Trusts from holding a meeting or making decisions pending an inquiry into whether the trusts were in violation of rules as per the Maharashtra Public Trusts Act. A meeting of the trustees is currently scheduled for 8 June.

In a statement issued on Friday, Tata Trusts strongly refuted allegations surrounding a 1989 share transfer by the Navajbai Ratan Tata Trust (NRTT) to the late Naval H. Tata, describing the claims as “baseless, unsubstantiated and malafide” and asserting that the transaction was lawful and fully compliant with the regulations in force at the time.

“It is affirmed that the transaction was lawful, undertaken for consideration, and fully compliant with the rules in force at that point of time. It was cleared at the appropriate levels, including by the late Mr. Nani A. Palkhivala, one of the country’s most distinguished lawyers, and approved by the then Board of Tata Sons. The transfer of shares was effected on a valid transfer form duly stamped by the Registrar of Companies,” the statement said.

The Trusts further stated that any suggestion of impropriety on the part of the Sir Ratan Tata Trust (SRTT), NRTT, or any of the parties involved in the transaction was “categorically denied.”

Tata Trusts further alleged that the latest accusations were part of a “wilful, malicious and orchestrated campaign” aimed at discrediting the institution, which has been engaged in philanthropic activities in India for more than 130 years.

The Trusts added that they would pursue appropriate legal remedies to safeguard their reputation and goodwill.







Referring to petitioner Suresh Tulsiram Patilkhede as a “serial litigator”, the Trusts alleged that he has filed several cases against them in the past. They pointed out that a recent petition moved by Patilkhede before the Bombay High Court was withdrawn after the court expressed strong reservations about the manner in which the petition had been instituted.





The present complaint, dated June 4, reviewed by ET, alleges that the transfer took place on January 18, 1989, a week after Naval Tata had resigned as a trustee of the Navajbai Ratan Tata Trust. According to the representation, the transfer lacked legal necessity, was not supported by a valid instrument of transfer and was undertaken without consideration, rendering it unlawful under the principles governing public trusts.

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The letter also raised concerns over an alleged conflict of interest involving Noel Tata who, as chairman, is expected to preside over a meeting of SDTT on June 8. The complainant argued that Noel Tata is among the successors-in-interest to whom the shares ultimately devolved following Naval Tata’s death and therefore should not participate in deliberations concerning the matter. To be sure, deliberations concerning a different trust under the Tata Trusts umbrella typically are not taken up by another trust, even though a number of trustees across the important trusts are common.

Earlier in May, the Maharashtra charity commissioner directed the Tata Trusts board of trustees to defer its scheduled meeting on Saturday, pending an inquiry into alleged violations of the Maharashtra Public Trusts Act. It was ultimately clarified that this applied only to the Sir Ratan Tata Trust and there was no bar on other Tata Trusts on proceeding with decision making.

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 the Sir Ratan Tata Trust and alleged non-compliance with Section 30A(2) of the Act.

Referring to a legal notice sent on May 12 to trustees of the Sir Ratan Tata Trust and other Tata Trusts functionaries, the complainant has requested an investigation into the transfer and issue appropriate directions.