The Sir Dorabji Tata Trust (SDTT) has filed its response with the Maharashtra Charity Commissioner over complaints raised by two of its trustees, Venu Srinivasan and Vijay Singh, CNBC-TV18 reported.
The submission was made on October 19. The had originally asked to submit its reply by October 12. The deadline was subsequently extended by a week.
Srinivasan and Singh lodged their complaints on September 25, seeking an inquiry into the trust’s administration and governance, including its role in the commercial affairs of Tata Sons.
Allegations by Srinivasan and Singh
Srinivasan and Singh have raised concerns over the trust’s involvement in Tata Sons’ commercial decisions and the concentration of decision-making authority within Trust. They have also questioned a circular resolution dated September 16 that allegedly sought to prevent Srinivasan, a nominee director jointly appointed by SDTT and the (SRTT), from participating in or voting on Tata Sons’ proposed listing.
Srinivasan has argued that the resolution could consolidate control within SDTT and interfere with the independent functioning of Tata Sons’ board. The trustees have also raised questions about Noel Tata’s position as chairman of Tata Trusts and his role in key decisions, as well as the appointment of Neville Tata.
Another key concern raised in the complaints is whether the trusts’ involvement in the commercial affairs of Tata Sons could jeopardise their charitable status and tax exemptions. The trustees have sought regulatory scrutiny of the trusts’ governance and administration.
SDTT rejects allegations
SDTT had earlier rejected the allegations in a letter dated October 5, signed by Noel Tata and three other trustees: Neville Tata, Bhaskar Bhat and Darius Khambata. The letter questioned the requests made by Srinivasan and Singh to restrict the trust from holding meetings or acting through circular resolutions.
The Maharashtra Charity Commissioner had initially asked SDTT to submit its reply by October 12. The deadline was subsequently extended by seven days.
SDTT holds a 27.98% stake in Tata Sons, making it the company’s largest shareholder. The Sir Ratan Tata Trust holds a further 23.56% stake.