Mumbai, Oct 19 (SocialNews.XYZ) Sir Dorabji Tata Trust (SDTT), one of the key entities under Tata Trusts, has reportedly submitted its response to the Maharashtra Charity Commissioner over complaints filed by two trustees alleging governance lapses.
The trust was initially directed to respond by October 12 but sought additional time, following which the deadline was extended to October 19. The contents of its response have not yet been disclosed.
The submission is expected to influence the next course of action by the Charity Commissioner regarding SDTT and Sir Ratan Tata Trust (SRTT), another major entity within the Tata Trusts ecosystem. SRTT was earlier frozen by the Charity Commissioner this year over alleged violations of prescribed norms.
SDTT came under scrutiny following a contentious Tata Sons board meeting on September 17, which triggered a wider dispute over governance, boardroom decision-making and the future direction of the holding company.
Venu Srinivasan and Vijay Singh, vice-chairmen of Tata Trusts and trustees of SDTT, had raised concerns over alleged governance deficiencies at the trust. They also accused SDTT of interfering in commercial matters concerning Tata Sons instead of concentrating on its philanthropic mandate. Their complaints further flagged the issue of perpetual trusteeship of Noel Tata, chairman of Tata Trusts, and sought an investigation into the trust's administration and governance.
The dispute has drawn attention to the significant shareholding held by Tata Trusts entities in Tata Sons, the holding company of the Tata Group. SDTT holds a 27.98 per cent stake in Tata Sons, while SRTT owns 23.56 per cent.
The remaining five shareholding entities under Tata Trusts are JRD Tata Trust, which holds 4.01 per cent; Tata Education Trust and Tata Social Welfare Trust, with 3.73 per cent each; RD Tata Trust, with 2.19 per cent; and Sarvajanik Seva Trust, with 0.10 per cent.
The governance dispute intensified following the September 17 Tata Sons board meeting, at which two significant proposals were discussed: granting chairman N Chandrasekaran a third term after his current tenure ends in February 2027, and listing Tata Sons in accordance with Reserve Bank of India (RBI) requirements.
Srinivasan, who is also a nominee director on the Tata Sons board, was a key proponent of the proposals. Noel Tata, another nominee director, opposed both, exercising his veto right to block the proposal to grant Chandrasekaran another term.
Source: IANS
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