Venu Srinivasan seeks probe into Tata Trusts governance, challenges Noel Tata’s role

The governance battle within Tata Trusts has intensified, with Venu Srinivasan seeking an immediate inquiry by the Maharashtra Charity Commissioner into the administration and functioning of the Sir Dorabji Tata Trust (SDTT), according to an Economic Times report. Srinivasan, a trustee of SDTT and Sir Ratan Tata Trust (SRTT), has alleged governance lapses and questioned the trusts’ growing involvement in Tata Sons’ strategic and commercial affairs.

Srinivasan, who is also a joint nominee director of SDTT and SRTT on the Tata Sons board, has raised questions over Noel Tata’s position as a perpetual trustee and the basis of his chairmanship of Tata Trusts. His letter also flagged the appointment of Noel Tata’s son Neville and alleged that Srinivasan had been excluded from certain decision-making processes.

Tata Sons commercial decisions under scanner

A central issue raised by Srinivasan is what he sees as increasing intervention by Tata Trusts in Tata Sons’ business affairs. He cited the trusts’ September 17 position on alternatives to a Tata Sons listing and a proposal concerning liquidity for the Shapoorji Pallonji Group. Srinivasan argued that direct involvement in such commercial transactions could be inconsistent with SDTT’s charitable objectives and potentially expose its tax-exempt status and corpus to risk.

Tata Trusts collectively owns 66% of Tata Sons. SDTT holds 27.98% while SRTT owns 23.56%, giving the two principal trusts a combined 51.54% stake in the Tata Group holding company.

Srinivasan seeks curbs on Noel Tata

Srinivasan has asked the Charity Commissioner to investigate SDTT’s governance and take action, including suspension or removal of trustees, if warranted. He has also sought restrictions on Noel Tata’s participation and voting in certain decisions involving Tata Sons nominees and requested that SDTT’s board composition remain unchanged while the inquiry is pending.

The latest move comes months after the Maharashtra Charity Commissioner ordered SRTT to defer a board meeting following complaints that triggered an inquiry into the trust’s governance and board composition.

Tata Sons listing row adds another layer

The dispute is unfolding alongside a wider debate over Tata Sons’ future structure. Tata Trusts has proposed a restructuring that could allow Tata Sons to remain an unlisted private entity, including through the merger of two operating companies with the holding company, according to ET. The proposal has been sent to the Tata Sons board and the Reserve Bank of India.