Tata Trusts asked to respond by October 12 to Venu Srinivasan complaint over governance

The Maharashtra Charity Commissioner has asked Tata Trusts to reply by October 12 to Venu Srinivasan's complaint on governance at the Sir Dorabji Tata Trust. The move follows his September 24 letter and sets up the next step before any further action.

In Short

• Maharashtra Charity Commissioner asks Tata Trusts to respond by October 12
• Complaint by Venu Srinivasan alleges governance lapses in Sir Dorabji Tata Trust
• Issues raised include trustee appointments and involvement in Tata Sons matters

The Maharashtra Charity Commissioner has asked Tata Trusts to respond by October 12 to a complaint filed by trustee Venu Srinivasan alleging governance lapses at the Sir Dorabji Tata Trust (SDTT), reported Moneycontrol.

The Charity Commissioner's letter was sent on Monday, the report said, less than two weeks after Srinivasan wrote to the regulator on September 24 seeking an inquiry into the administration and governance of SDTT.

Srinivasan's complaint questions trustee appointments, decision-making at the trust and its involvement in matters concerning Tata Sons. It also questions Noel Tata's status as a perpetual trustee, according to the report.

The development adds to governance-related disputes involving Tata Trusts and comes against the backdrop of a separate dispute involving the Sir Ratan Tata Trust (SRTT).

WHAT DID VENU SRINIVASAN ALLEGE?

At the centre of Srinivasan's complaint is the role of Tata Trusts in matters involving Tata Sons.

According to the report, Srinivasan has alleged that Tata Trusts had taken a direct role in identifying, negotiating and seeking to implement commercial transactions involving Tata Sons.

He has questioned whether such involvement is consistent with the charitable objects of the Trust.

His September 24 letter sought an inquiry into the administration and governance of SDTT. The complaint raised questions around how trustees are appointed, how decisions are taken within the trust and the Trust's involvement in matters concerning Tata Sons.

The complaint also questions Noel Tata's perpetual trustee status, according to Moneycontrol's summary of the matter.

These are allegations and questions raised by Srinivasan in his complaint. The Charity Commissioner's decision to seek a response from Tata Trusts does not by itself establish that the allegations are valid.

WHY HAS THE CHARITY COMMISSIONER STEPPED IN?

The latest action follows Srinivasan's September 24 complaint.

The Charity Commissioner sent a letter to Tata Trusts on Monday asking the Trusts to respond by October 12, people aware of the development told Moneycontrol.

The timing is important because Tata Trusts subsequently approached the Charity Commissioner itself.

On September 30, Tata Trusts filed caveats before the Charity Commissioner. The Trusts sought to ensure that no order was passed on Srinivasan's complaint without first giving them an opportunity to be heard.

The latest communication means Tata Trusts now has a deadline of October 12 to place its response before the Charity Commissioner.

SEPARATE DISPUTE INVOLVING SIR RATAN TATA TRUST

The latest development also comes after an earlier action involving another Tata charitable trust.

The Charity Commissioner had earlier this year restrained the Sir Ratan Tata Trust from holding board meetings amid a separate dispute over the composition of its trustees.

That earlier action forms part of the backdrop to the current development, although the two matters are separate.

The current complaint specifically concerns the administration and governance of the Sir Dorabji Tata Trust and questions trustee appointments, decision-making and the Trust's involvement in matters concerning Tata Sons.

TATA TRUSTS' RESPONSE

Tata Trusts filed the September 30 caveats to ensure that it would be heard before any order was passed on Srinivasan's complaint.

However, Moneycontrol said an email query sent to Tata Trusts seeking its response to the Charity Commissioner's latest communication remained unanswered until the publication of its report.

The October 12 deadline will give Tata Trusts an opportunity to respond to the allegations and issues raised by Srinivasan.

The immediate next step is Tata Trusts' response to the Maharashtra Charity Commissioner.

The regulator's request for a response should not be read as a finding against the Trusts. The allegations regarding governance, trustee appointments, decision-making and Tata Sons-related commercial matters have been raised by Srinivasan and are yet to be established.

The proceedings will also determine whether the Charity Commissioner takes any further action after considering the Trusts' response.

For now, the key development is the regulator seeking a formal response from Tata Trusts by October 12, following Srinivasan's September 24 complaint and the caveats filed by the Trusts on September 30.

- Ends