Tata Trusts in a statement issued on Friday has termed as "baseless, unsubstantiated and malafide” allegations regarding impropriety in a share transfer made by the Navajbai Ratan Tata Trust (NRTT) to the late Mr. Naval H. Tata in 1989. 

The statement comes in the wake of a fresh complaint being lodged with the Maharashtra charity commissioner Amogh S Kaloti, seeking intervention ahead of a key meeting of trustees of Sir Dorabji Tata Trust (SDTT) on June 8, alleging irregularities in the transfer of 833 shares of Tata Sons from the NRTT. 

Incidentally, it’s the same petitioner, Suresh Tulsiram Patilkhede, whose previous petition against the Sir Ratan Tata Trust (SRTT) was turned down by the HC, stating that the petitioner had no locus standi. In his fresh petition, Patilkhede has requested the Charity Commissioner to initiate an inquiry into the transfer of the shares. 

In fact, the Maharashtra charity commissioner had on May 15 barred the Trusts from holding the board meeting of SRTT on May 16, pending an inquiry into the composition of the SRTT board. SRTT holds 23.56% stake in Tata Sons, while Tata Trusts collectively own 66% stake in the holding company of the $180 billion FMCG-to-semiconductor conglomerate. 

“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,” said the statement from the Trusts. 

The Trust mentioned that the intention of such unfounded and malicious allegations appears to be to tarnish the reputation of the Trusts, and, in particular, that of SRTT. “These allegations also seek to taint the Tata family, including the late Mr. Naval H. Tata and his sons, the late Mr. Ratan N. Tata, Mr. Jimmy Tata and Mr. Noel N. Tata,” read the statement . 

The Trusts said the person has no proven locus standi in the matter and is a serial litigator who in the past (2020) filed several cases against the Tata Trusts without any locus and with an apparent objective of disrupting the philanthropic activities and functioning of the Tata Trusts. In fact, HC had taken strong objection to the conduct and in its order had observed: “We are constrained to observe that the petition as filed brings to the fore, a rather shocking state of affairs……. What is disturbing is that such representations are not made on behalf of the petitioner but by some other / third party whose details also are not known to the Court neither have been disclosed in this petition filed before this Court.”  

The HC, having expressed its displeasure, permitted the petitioner to withdraw the said petition. 

“It is apparent that these allegations, despite the absence of any factual basis, point to a wilful, malicious and orchestrated campaign being undertaken with the sole objective of discrediting the Tata Trusts - an institution that has served this country for over 130 years and has consistently upheld the highest standards of public trust, accountability and ethical conduct,” read the statement. 

The Trusts mentioned that appropriate legal remedies will be pursued to safeguard their goodwill and reputation.