On October 19, the Sir Dorabji Tata Trust lodged its response to the Maharashtra Charity Commissioner, extending the deadline originally set for October 12. The filing comes after trustees Venu Srinivasan and Vijay Singh had raised complaints on September 25, seeking an inquiry into SDTT’s administration and its commercial ties to Tata Sons.
SDTT, the largest shareholder in Tata Sons, owns a 27.98% stake, while the Sir Ratan Tata Trust holds 23.56%. The dispute centers on the appointment of Noel Tata as a perpetual trustee and the induction of his son Neville Tata into SDTT, allegations that could influence governance perceptions and, by extension, investor confidence.
The trustees have also demanded that the Maharashtra Charity Commissioner freeze SDTT’s board pending the inquiry, with potential actions ranging from suspension to removal of trustees. The complaints aim to prevent SDTT from leveraging its substantial shareholding to act as a commercial entity.
In response, four SDTT trustees dismissed the concerns in a letter dated October 5, and both Noel Tata and Neville Tata filed a caveat in the Mumbai City Civil Court on October 7, citing five named trustees as potential relief seekers under Section 148A of the Code of Civil Procedure.
The dispute follows a Tata Sons board meeting on September 17, where the board backed N Chandrasekaran for a third term as chairman. Srinivasan supported the reappointment, while Noel Tata opposed it, escalating the governance friction.
The Maharashtra Charity Commissioner, which had already directed the Sir Ratan Tata Trust to postpone a board meeting in May, is now poised to review SDTT’s reply before deciding on further action. Market participants remain vigilant, mindful that governance issues can sway Tata Sons’ valuation and trading dynamics.