The Bombay High Court has scheduled Dec 2 to hear a public interest litigation (PIL) challenging the governance and private company status of Tata Sons, citing the substantial ownership held by charitable trusts.
The petition argues that Tata Sons cannot be treated solely as a privately controlled business when charitable trusts own approximately two-thirds of its equity.
Advocate Rohini Amin, joint secretary of Home for All, and L Ramanathan, associated with the organisation and the National Lawyers' Campaign for Judicial Transparency and Reforms, filed the petition.
The petitioners claim to represent underprivileged beneficiaries of the Tata Trusts and have sought judicial intervention in the administration of Tata Sons and its controlling trusts.
The petitioners contend that the charitable nature of Tata Sons' principal shareholders should influence corporate governance decisions.
They argue that the interests of trust beneficiaries must receive consideration alongside those of private shareholders.
The petition also questions Tata Sons' conversion into a private company in 2017, alleging that beneficiaries and the public were not adequately represented.
According to the petitioners, previous litigation cannot automatically bind beneficiaries who were not parties to those proceedings.
They have also requested a court-framed management scheme covering Tata Sons and its charitable trusts, including proposed changes to their boards.
Another major demand concerns the Reserve Bank of India's (RBI) regulatory oversight.
The petitioners want the court to direct the RBI to enforce what they describe as applicable listing requirements for Tata Sons.
They have alleged that Noel Tata is obstructing regulatory compliance, an allegation that remains unproven.
The petition argues that stronger governance and a public listing could increase resources available for charitable activities.
It names 37 respondents, including Tata Sons, Chairman N Chandrasekaran, senior executives, Noel Tata and trustees of the Sir Ratan Tata Trust and Sir Dorabji Tata Trust.
The RBI, Securities and Exchange Board of India, National Company Law Tribunal and Charity Commissioner are also among the respondents.
The court has yet to determine the merits of the petitioners' claims.
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