Vijay Singh, vice chairman of Tata Trusts, will step down as a trustee of the Sir Ratan Tata Trust (SRTT) on August 14, when his current term ends, according to a report by The Economic Times.
Singh, who is 78, has confirmed that he will not seek another term. His exit comes at a time when Tata Trusts is facing internal disagreements and constant attention from regulators.
Why Singh is not seeking term renewal
Speaking to ET, Singh said he would not continue with SRTT after his current term ends. He described the situation inside Tata Trusts following the death of Ratan Tata as unsettling. “The changed atmosphere in the trusts after Ratan Tata’s passing has been disquieting and raises doubts about the future,” he said.
Singh also said he did not want to continue at SRTT beyond his current age. He added that he would not seek another term in any other trust after his present term ends.
However, Singh will continue as a trustee of the Sir Dorabji Tata Trust for another year.
His decision comes as tensions within Tata Trusts have increasingly come into the public eye. The various trusts together hold a 66% stake in Tata Sons, the holding company of the Tata Group.
Earlier exit from Tata Education and Development Trust
In May, Singh and co-vice chairman Venu Srinivasan had already stepped down from their positions at the Tata Education and Development Trust (TEDT).
Their exit came after trustee Mehli Mistry objected to their reappointment.
Mistry had raised questions over whether Singh and Srinivasan were eligible to serve as trustees of the Bai Hirabai Jamsetji Tata Navsari Charitable Institution.
He referred to a clause in a 1923 trust deed which says that trustees must be practising Parsi Zoroastrians who are permanent residents of Mumbai.
Citing people familiar with the matter, ET reported that Singh was also unlikely to receive unanimous support from other trustees for another term at SRTT.
One reason was his earlier public comments in favour of a possible listing of Tata Sons. Tata Sons is currently privately held, and Singh’s views were seen as different from the position taken by the Tata Trusts leadership.
The situation has become further complicated by a dispute involving the SRTT board.
The board has not been able to hold a meeting after the Maharashtra charity commissioner stopped it from convening. The decision came while a complaint related to the appointment of perpetual trustees, among other issues, is being dealt with. The current SRTT board includes chairman Noel N Tata, along with Venu Srinivasan, Vijay Singh, Jimmy N Tata, Jehangir HC Jehangir and Darius Khambata.
Tata Sons board discussions put on hold
The Sir Ratan Tata Trust and the Sir Dorabji Tata Trust together control most of Tata Trusts’ stake in Tata Sons.
The two trusts were expected to review their representation on the Tata Sons board in May. This included discussions about the appointment of nominee directors.
However, those discussions were postponed because of ongoing legal proceedings. According to ET’s report, the meeting’s agenda was also expected to include the public comments made by Singh and Srinivasan about the possible advantages of listing Tata Sons.
Singh was also not included on the Tata Sons board when it was reconstituted last year. People familiar with the matter told ET that Tata Trusts wants to ensure that its nominees on the Tata Sons board remain in line with the institution’s position on important governance issues.
