Sir Dorabji Tata Trust (SDTT), a major shareholder in Tata Sons, has reportedly submitted its response to the Maharashtra Charity Commissioner following complaints alleging governance irregularities, Business Standard reported.
The trust had initially been asked to respond by Oct 12 but received an extension until Oct 19. The contents of its submission remain undisclosed. The regulator's next steps could affect SDTT and Sir Ratan Tata Trust (SRTT), another major entity within Tata Trusts.
The development follows a dispute involving Tata Sons' leadership and governance decisions at its Sept 17 board meeting.
Tata Trusts Trustees Raise Governance Concerns
Tata Trusts Vice-Chairmen Venu Srinivasan and Vijay Singh, both SDTT trustees, reportedly approached the Charity Commissioner seeking an investigation into the trust's administration.
They alleged that SDTT had become involved in Tata Sons' commercial decisions instead of concentrating on its philanthropic responsibilities.
Their complaints also raised questions about the perpetual trusteeship of Tata Trusts Chairman Noel Tata.
SRTT had separately faced regulatory restrictions earlier this year over alleged violations of applicable norms. SDTT holds 27.98% of Tata Sons, while SRTT owns 23.56%.
Five other Tata Trusts entities collectively hold additional shares, giving the charitable trusts substantial influence over the group's holding company.
Chandrasekaran's Third Term And Tata Sons Listing Spark Dispute
The governance controversy intensified over proposals concerning Tata Sons Chairman N Chandrasekaran's possible third term after February 2027 and the company's listing.
At the Sept 17 meeting, Srinivasan reportedly supported extending Chandrasekaran's tenure, while Noel Tata opposed the proposal.
A disagreement subsequently emerged over whether a casting vote could resolve the deadlock among nominee directors.
The Tata Sons Articles of Association require an affirmative majority among nominee directors for certain significant decisions.
Before the meeting, SDTT had reportedly passed a resolution seeking to prevent Srinivasan from participating in board deliberations because of his support for listing Tata Sons.
However, Srinivasan resisted the resolution and participated in the vote concerning Chandrasekaran.
Although the proposed listing had contributed to tensions within Tata Trusts, no vote on the matter took place at the meeting.
The Charity Commissioner's response to the governance complaints is now awaited.
