Maharashtra’s Charity Commissioner has directed the board of Tata Trusts to defer its scheduled May 16 meeting, citing ongoing inquiries into alleged violations of the Maharashtra Public Trusts Act and concerns that decisions taken at the meeting could complicate pending proceedings.
In an order issued on May 15, Maharashtra Charity Commissioner Amogh S Kaloti invoked powers under Section 36A(1) of the Maharashtra Public Trusts Act to direct the trusts not to hold any board meeting until the submission of an inspector’s inquiry report.
The order follows complaints filed by advocate Katyayani Agrawal and trustee Venu Srinivasan alleging non-compliance with Section 30A(2) of the Act, which governs the composition of trustee boards.
Urgent intervention
According to the order, Agrawal had sought urgent intervention from the charity commissioner, alleging that the board had more perpetual trustees than permitted under law. Agrawal urged authorities to initiate an inquiry, reduce the number of perpetual trustees to not more than one-fourth of total strength, that is maximum one perpetual trustee in a board of six, take consequential action to restore compliance and ensure appointment of trustees in accordance with law, and pass any other appropriate orders to prevent further violation of the Act and protect the interest of the public trust and its beneficiaries.
The office of the charity commissioner said the complaints had already been forwarded to the assistant charity commissioner, who on May 13 ordered an inspector-led inquiry under Section 37 of the Act. A report under Section 39 is awaited.
The directive also referenced a May 13 order by the Bombay High Court in a writ petition related to the issue. The court had noted that a Tata Trusts meeting was scheduled for May 16 and recorded the petitioner’s contention that holding the meeting could violate statutory provisions.
In his order, Kaloti said the issues raised in the complaints were “serious and require due consideration”. He added that if the board were to take important decisions on administration, management or trust composition while the inquiry was pending, it could lead to “further complications and multiplicity of proceedings”.
The charity commissioner therefore directed the board of Tata Trusts to defer the meeting and refrain from convening any such meeting until the inspector’s report is submitted.
The meeting was originally scheduled to be held on May 8, but was called off at the last minute without any reasons being assigned.
Significant decisions including changes in the nominee directors on the board of Tata Sons, listing of the holding company as well as the issue of another term for Tata Sons’ chairman N Chandrasekaran.