Tata Trusts' two charities question Mehli Mistry's right to raise governance issues

Two non-profits under Tata Trusts on Thursday questioned Mehli Mistry's locus standi to raise concerns about their operations.

Sir Dorabji Tata Trust (SDTT) and Bai Hirabai Jamestji Tata Navsari Charitable Institution have told the Charity Commissioner's office that the tenure of Mistry, a close confidante of the late Ratan Tata, ended on October 28 last year and he had no locus standi in raising questions on the conduct of the trusts later.

Mistry reportedly approached the Charity Commissioner, alleging governance lapses, conflicts of interest at the two trusts, and questioning their decision-making.

In separate affidavits filed before the Charity Commissioner's office, the two trusts said Mistry's term was fixed at three years and argued that he could not use his former trusteeship to challenge their administration and governance.

The charity commissioner's office has been asked to first decide the trusts' objections on maintainability and jurisdiction before examining the merits of Mistry's objections or ordering any inquiry.

SDTT said SDTT, Sir Ratan Tata Trust (SRTT), and Bai Hirabai are three separate public charitable trusts with distinct governing instruments, boards, properties, and accounts; hence, Mistry's plea for a single proceeding should not be admitted.

In its affidavit, Bai Hirabai has disputed Mistry's interpretation of Clauses 6 and 18 of its Trust Deed, which concern eligibility for trusteeship based on religion and residence. It has argued that these restrictions conflict with the original Will and Codicil governing the Trust and should not be given effect.

Mistry's side has been given time till November 5 to file a reply to the affidavits.

In another development, Bai Hirabai has filed a substitution application to name Noel Tata as the reporting trustee in the matter related to Mistry's complaints on the trust's affairs, following the cessation of Vijay Singh as Trustee earlier this year.

Mistry filed a submission on Thursday, asking Bai Hirabai to file an affidavit stating Noel Tata meets the eligibility criteria.

"It is submitted that the Deputy Charity Commissioner shall ensure that the Reporting Trustee (Noel) proposed to be substituted by way of the present application shall be a qualified Trustee as contemplated in Clauses 6 and 18 of the Trust Deed dated 07.12.1923, which inter alia states that Trustee shall be a Parsi professing Zoroastrian religion," Mistry said in his submission.

Mistry claimed Bai Hirabai board has trustees who are ineligible for appointment since they do not fulfil the criteria set forth in the trust deed, which states that the trustee should be a permanent resident of Mumbai or Navsari, and belong to the Zoroastrian Parsi faith.

Meanwhile, in a separate hearing, the SRTT also told the charity commissioner about the challenges it faces because the office's May 15 order bars it from holding any meetings.

(Except for the headline, Fortune India has not edited the content of this PTI report.)