A complaint has been filed with the Maharashtra charity commissioner questioning whether the trustees of the Sir Ratan Tata Trust (SRTT) are adequately discharging their fiduciary and statutory responsibilities amid the continuing restriction on the trust holding meetings.
The representation, filed by Mumbai-based advocate and solicitor Kiran Doiphode, follows the adjournment of the Tata Sons annual general meeting (AGM) scheduled for August 18 for want of quorum. The meeting was to consider, among other matters, the company’s financial statements and the declaration of a dividend.
The complaint, a copy of which FE has reviewed, argues that the continuing impasse over SRTT’s functioning has delayed the receipt of a substantial dividend attributable to the Tata Trusts and caused potential investment income to be foregone. The representation has asked the charity commissioner to urgently examine the conduct and decision-making of the SRTT trustees, including whether they have taken adequate steps to protect the interests of the trust and its beneficiaries.
“Your office may, if considered necessary, also require the trustees to place on record the specific steps taken and proposed to be taken to prevent further financial loss to the trust,” the letter said.
“Given the magnitude of the funds involved and the continuing financial consequences of the delay, it would be appropriate for the Trustees to place on record the steps taken by them to safeguard the interests of SRTT, including the legal, administrative and other measures considered or undertaken following the adjournment of the annual general meeting,” Doiphode said in the representation.
The letter argues that trustees of a public charitable trust are required to act proactively and diligently in the interests of the trust and its beneficiaries. Personal or factional considerations, it said, should not interfere with the discharge of their responsibilities.
It has also asked the charity commissioner to examine whether personal interests, differences among trustees or conflicts of interest may have contributed to the impasse.
The Tata Sons board has recommended a total dividend of around Rs 4,479 crore, of which approximately Rs 2,900 crore is attributable to the Tata Trusts, which collectively own about 66% of the holding company.
At an assumed annual return of 7%, every week of delay in receiving the Rs 2,900 crore could result in potential investment income of around Rs 3.9 crore being foregone, according to the representation.
“In the context of public charitable trusts, such amounts are far too significant to be disregarded,” Doiphode said.
He argued that the money involved was not a private commercial asset belonging to individual trustees but constituted resources held and administered by charitable institutions for the benefit of society.
“Trustees are therefore custodians of these resources and cannot, in my respectful submission, permit personal considerations or internal disagreements to result in avoidable financial prejudice to the beneficiaries,” the letter said.
The complaint comes as the Tata Trusts are understood to be disinclined, for now, to approach the Bombay High Court against the restriction on SRTT holding meetings. The Trusts had earlier sought relief from the charity commissioner but have yet to secure it. They are understood to be considering another representation to the regulator.