Tata Trusts’ SDTT to file caveat with Charity Commissioner, seeks to appoint nominee for Tata Sons AGM before any blockade

Sir Dorabji Tata Trust (SDTT) is preparing to file a caveat with the Maharashtra Charity Commissioner to hear its side before giving any order in the complaint seeking an inquiry into the administration and governance of the Trust. “We have not yet received the copy of the complaint, but we will file the caveat with the Charity Commissioner to consider our views,” said a source close to the developments.

SDTT also looks to convene its board meeting at the earliest to finalise its nominee for the Tata Sons AGM in the wake of the blockade at Sir Ratan Tata Trust (SRTT), where the Maharashtra Charity Commissioner barred the board from convening its meeting. Sources say that SDTT is likely to move a motion against Venu Srinivasan for filing complaints against the Trust without raising any concern regarding this in the board meetings.

“He was part of the board since Ratan Tata’s time and never raised any objection to the process. In fact, he was part of the process that selected new directors and decided on protecting the interests of the majority shareholder (which is Tata Trusts) in Tata Sons’ decision-making,” said a source close to the developments. The whole purpose of the Trusts appointing him as nominee, over other directors, on the Tata Sons board was that he would present the Trusts’ viewpoints, he added.

In his complaint, Srinivasan questioned the appointment of Noel Tata as the chairman of Tata Trusts and his son Neville's inclusion on the board of SDTT. He also questioned the involvement of trust directors in the decision making of Tata Sons.

Tata Trusts is also worried that the Charity Commissioner may give an order to block the board meetings of SDTT as well. “The whole intention is the same,” said another source.

SDTT has six directors—Chairman Noel Tata, Venu Srinivasan, Vijay Singh, Darius Khambata, Neville Tata, and Bhaskar Bhat. Of these, Vijay Singh is also with Venu Srinivasan, showing the dissent. Noel Tata has the support of the remaining four.

In the meanwhile, the Charity Commissioner is yet to take a decision on petitions from SRTT directors to allow them to convene the meeting to decide on the joint nominee for the Tata Sons shareholder meeting. SRTT hadn't filed the caveat that led to the blockade of its board meeting order from Charity Commissioner, said a source.

In this meeting, the 66% shareholder of Tata Sons wants to stall the renewal of the directorship of Tata Sons Chairman N. Chandrasekaran. It will make Chandrasekaran ineligible for becoming the chairman for the third term. If the Tata Sons AGM is held, we can avoid the legal battle on the appointment of Chandrasekaran, said another source.