Trustees of the Sir Ratan Tata Trust (SRTT) are expected to approach the Charity Commissioner of Maharashtra this week with a fresh plea for interim relief from the ban on convening meetings, as the need to begin the process of choosing the next Tata Sons chairman adds urgency to resolving the impasse, people with knowledge of the matter said.
Efforts to secure relief ahead of the August 18 Tata Sons annual general meeting proved unsuccessful, forcing the holding company to adjourn its AGM for the first time in the group’s history. SRTT trustees are now believed to have deliberated afresh on approaching the Charity Commissioner.
People close to the development said the trustees favour making another representation, stressing the need to resume meetings to deal with pressing trust business, including approval of accounts and grants, as well as decisions relating to SRTT’s representation at Tata Sons.
“Now, the board also needs to convene in order to set the ball rolling on the selection committee to appoint a new chairman for Tata Sons,” one of the persons cited above said.
The succession issue has acquired urgency after N Chandrasekaran informed the Tata Sons board that he would not seek reappointment as chairman when his current term ends on February 20, 2027.
Under Tata Sons’ Articles of Association, its chairman is appointed through a five-member selection committee, three members of which are jointly nominated by the two key trusts — Sir Dorabji Tata Trust (SDTT) and SRTT. SRTT’s inability to convene its board is, therefore, holding up the constitution of the panel and the time-bound process of identifying Chandrasekaran’s successor.
In an earlier submission, Tata Trusts Chairman Noel Tata had stressed the need to conduct essential trust business, pointing out that grants worth nearly Rs 400 crore were awaiting approval because the SRTT board could not meet.
The meeting ban stems from an objection filed by advocate Katyayani Agrawal, who alleged that the composition of the SRTT board violated Section 30(A)(2) of the Maharashtra Public Trusts Act by exceeding the permissible number of lifetime trustees. Under the provision, lifetime trustees cannot account for more than 25% of a trust board’s strength. Trustee Venu Srinivasan had made a similar representation.
When the representations were filed in April, SRTT had six trustees, including Noel Tata, Jimmy Tata, Jehangir HC Jehangir, Venu Srinivasan and Vijay Singh. Noel Tata, Jimmy Tata and Jehangir HC Jehangir hold trusteeship for life. Singh’s exit from the SRTT board on August 14 has since resulted in lifetime trustees accounting for more than half its current strength.
In his May 15 communication, Maharashtra Charity Commissioner AS Kaloti said an investigation into the objections was underway and directed the SRTT board to refrain from meeting until the probe was completed.
Tata Trusts had then said the direction was passed ex parte and without notice to SRTT. It did not, however, challenge the order before the Charity Commissioner or a higher judicial authority at the time. Efforts to secure relief gathered pace only ahead of the August 18 Tata Sons AGM.
Even now, SRTT is believed to be reluctant to approach the Bombay High Court, given concerns that litigation could further delay a resolution, people familiar with the matter said.