The Sir Dorabji Tata Trust (SDTT) has submitted its response to the Maharashtra Charity Commissioner on complaints filed by its trustees Venu Srinivasan and Vijay Singh, CNBC-TV18 has learnt. The response was filed on October 19, the extended deadline for the trust’s reply. A Tata Trust spokesperson confirmed this development without adding further details. SDTT is the largest shareholder in Tata Sons, with a 27.98% stake. The Sir Ratan Tata Trust (SRTT) holds 23.56%.
As CNBC-TV18 had reported, the commissioner had initially given SDTT till October 12 to respond. The deadline was later extended by a week.
What the complaints allege
Srinivasan and Singh, both vice-chairmen of Tata Trusts, filed their complaints on September 25, according to reports. They have sought an inquiry into SDTT’s administration and governance, and into its involvement in the commercial affairs of Tata Sons.
Srinivasan has questioned Noel Tata’s appointment and continuing status as a perpetual trustee, and the basis of his chairmanship of Tata Trusts. He has also questioned the induction of Noel Tata’s son, Neville Tata, into SDTT.
Srinivasan has asked the commissioner to freeze the SDTT board while an inquiry is pending. Depending on the findings, he wants action that could include suspending or removing trustees. Singh has argued that SDTT’s large shareholding in Tata Sons should not lead the trust to act as a commercial enterprise.
In a letter dated October 5, four SDTT trustees dismissed the concerns raised by Srinivasan and Singh, according to reports.
Caveats before commissioner and court
Several Tata trusts, along with Noel Tata and Neville Tata, have filed caveats before the Charity Commissioner so that they are heard before any order is passed on the complaints.
As CNBC-TV18 reported last week, Noel Tata and Neville Tata have also filed a caveat in the Mumbai City Civil Court. eCourts records show it was filed on October 7. It names Srinivasan, Singh, Darius Khambata and Bhaskar Bhat, the other trustees of SDTT. Under Section 148A of the Code of Civil Procedure, the court must hear the caveators before passing any order if any of the named trustees seeks relief against them.
The complaints followed a Tata Sons board meeting on September 17, where the board passed a resolution backing N Chandrasekaran for a third term as chairman. Srinivasan supported the reappointment, while Noel Tata opposed it.
The commissioner has stepped into the affairs of the Tata Trusts before this year. In May, it directed SRTT to postpone a board meeting and not to hold meetings until an inspector’s report was submitted.
Former trustee Mehli Mistry’s objections to the change report recording his exit from the trusts are also pending before the commissioner.
The commissioner is now expected to examine SDTT’s response before deciding on the next steps.