Tata Trusts row: Fresh complaint filed with Charity Commissioner over share transfer
Katyayani Agrawal, counsel for petitioner Suresh Tulsiram Patilkhede, requested the Charity Commissioner to initiate an investigation into the transfer of shares to late Naval H. Tata in January 1989 and take steps to protect the interests of public charities.
This development assumes significance as the Charity Commissioner in his order on May 15 had taken cognizance of the same petitioner’s complaint and restrained Tata Trusts from holding a meeting or taking decisions until the investigation into whether the trusts had violated rules under the Maharashtra Public Trusts Act was completed. The board of trustees meeting is currently scheduled for June 8.
Tata Trusts did not respond to an email seeking comment.
The present complaint dated June 4, reviewed by ET, alleges that the transfer took place on January 18, 1989, a week after Naval Tata resigned from the board of trustees of Navajbai Ratan Tata Trust. According to the testimony, the transfer lacked legal obligation, was not supported by a valid transfer instrument, and was effected without consideration, making the transfer unlawful under principles of public trusts.
The letter also raised concerns about an alleged conflict of interest involving Noel Tata, who, as chairman, is expected to chair the SDTT meeting on June 8. The complainant argued that Noel Tata was among the successors in interest to whom the shares were ultimately transferred following the death of Naval Tata and therefore should not have participated in negotiations on the matter. Of course, while trustees in major trusts are common, negotiations involving a different trust under the Tata Trusts umbrella are not usually handled by another trust.
Earlier in May, the Maharashtra charity commissioner had directed Tata Trusts trustees to postpone its scheduled meeting on Saturday until the investigation into alleged violations of the Maharashtra Public Trusts Act was completed. Ultimately, it was clarified that this was applicable only to Sir Ratan Tata Trust and there was no impediment to continue the decision-making process on other Tata Trusts. The directives were issued by state charity commissioner Amogh S. Kaloti under Section 36A(1) of the Maharashtra Public Trusts Act, following complaints regarding the composition of the board of trustees of Sir Ratan Tata Trust and alleged non-compliance with Section 30A(2) of the Act.
Referring to the legal notice sent to the trustees of Sir Ratan Tata Trust and other officers of Tata Trusts on May 12, the complainant requested an investigation into the transfer and appropriate instructions be given.
