A fresh complaint has been filed before the Maharashtra Charity Commissioner alleging irregularities in the transfer of Tata Sons shares nearly four decades ago, even as Tata Trusts on Friday strongly rejected the charges as “baseless”, “malafide” and aimed at damaging its reputation.
The complaint, filed ahead of the June 8 meeting of trustees of the Sir Dorabji Tata Trust (SDTT), seeks an inquiry into the transfer of 833 Tata Sons shares from the Navajbai Ratan Tata Trust (NRTT) to the late Naval H. Tata in January 1989.
NRTT, which forms part of the Sir Ratan Tata Trust and Allied Trusts, has four trustees — Noel Tata, Jimmy Tata, Venu Srinivasan and Vijay Singh.
The petitioner, Suresh Tulsiram Patilkhede, represented by advocate Katyayani Agrawal of Delhi-based law firm SV&Co, has argued that the transfer lacked legal necessity and questioned its validity. The complaint has also raised objections to Noel Tata’s participation in the upcoming SDTT meeting, contending that he is among the successors-in-interest who ultimately inherited the shares following Naval Tata’s death.
Tata Trusts Defend
In a statement issued on Friday, Tata Trusts categorically denied any wrongdoing.
“This statement is being issued in respect of the baseless, unsubstantiated and malafide allegations regarding a share transfer made by the Navajbai Ratan Tata Trust (NRTT) to the late Mr Naval H. Tata in the year 1989,” the Trusts said.
According to the Trusts, the transaction was lawful, supported by consideration and fully compliant with the rules prevailing at the time. It said the transfer had undergone appropriate scrutiny, including review by the late Nani A. Palkhivala, and had been approved by the Tata Sons board. The shares, it added, were transferred through a valid transfer form duly stamped by the Registrar of Companies.
“The Tata Trusts would like to state that any suggestion of impropriety on the part of either the Sir Ratan Tata Trust (SRTT), NRTT, or any of the parties to the transaction, is categorically denied,” the statement said.
The Trusts further alleged that the complaint was part of an attempt to tarnish the reputation of the Tata Trusts and members of the Tata family. It questioned the credentials of the petitioner, describing Patilkhede as a serial litigant who had previously initiated proceedings against the Trusts.
“The Tata Trusts categorically refute these baseless allegations and shall be pursuing appropriate legal remedies to safeguard their goodwill and reputation,” the statement added.
Referring to a recent proceeding before the Bombay High Court involving Patilkhede, the Trusts said the court had expressed concern over the manner in which representations were being made and had subsequently permitted withdrawal of the petition.
“It is apparent that these allegations, despite the absence of any factual basis, point to a wilful, malicious and orchestrated campaign being undertaken with the sole objective of discrediting the Tata Trusts — an institution that has served this country for over 130 years and has consistently upheld the highest standards of public trust, accountability and ethical conduct,” the Trusts said.
Growing Regulatory Friction
The latest complaint comes amid a broader regulatory examination of governance issues within the Tata Trusts ecosystem. In May, trustees of the Sir Ratan Tata Trust were served a legal notice relating to the same share transfer from NRTT.
Separately, Maharashtra Charity Commissioner Amogh S. Kaloti last month directed that a meeting of the Sir Ratan Tata Trust scheduled for May 16 be deferred pending an inspector-led inquiry into complaints relating to trustee composition and compliance with provisions of the Maharashtra Public Trusts Act. The inquiry remains underway.
The directive, issued via email on the eve of the meeting, was challenged by the Trusts, which said it had been passed ex parte, without prior intimation of either the complaint or the investigation. As a result, the SRTT has been unable to convene meetings pending completion of the inquiry. The Charity Commissioner’s office subsequently clarified that other trusts within the Tata Trusts umbrella were free to hold meetings.
The June 8 SDTT meeting will now take place against the backdrop of both the ongoing regulatory inquiry and the fresh dispute over the 1989 share transfer, setting the stage for another closely watched chapter in the governance issues confronting the Tata Trusts.