The complaint questions whether Sir Ratan Tata Trust trustees are doing enough to protect the trust’s interests.
Tata Sons has proposed a ₹4,479 crore dividend, with around ₹2,900 crore going to Tata Trusts.
The complaint says the delay could also mean a loss of investment income for the trust.
Fresh Complaint Questions SRTT Trustees Over Tata Trusts’ ₹2,900 Cr Dividend
A complaint before the Maharashtra charity commissioner has questioned whether Sir Ratan Tata Trust trustees have taken adequate steps to protect the trust’s interests amid restrictions on its meetings and a delay in Tata Sons’ proposed dividend
Summary
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The trustees of Sir Ratan Tata Trust (SRTT) are facing questions over their handling of the trust’s affairs as restrictions on its meetings continue. A complaint has been filed with the Maharashtra charity commissioner by Mumbai-based advocate and solicitor Kiran Doiphode, according to a Financial Express report.
The complaint comes after the Tata Sons annual general meeting (AGM), scheduled for August 18, was adjourned for lack of quorum. The meeting was to consider Tata Sons’ financial statements and the proposed dividend, among other matters.
According to the complaint, the continuing restrictions on SRTT meetings have delayed the receipt of the dividend due to Tata Trusts. It has asked the charity commissioner to look into whether the trustees have taken enough steps to protect the trust and the interests of its beneficiaries.
Why The ₹2,900 Cr Dividend Matters
The Tata Sons board has recommended a total dividend of around ₹4,479 crore. Of this, approximately ₹2,900 crore is attributable to Tata Trusts, which collectively own about 66% of Tata Sons.
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The complaint estimates that, if the ₹2,900 crore earned a 7% annual return, every week of delay could mean around ₹3.9 crore in potential investment income being lost. This is an estimate made in the complaint and is not a reported actual loss suffered by the trust.
Doiphode has asked the charity commissioner to seek details from the trustees on the steps they have taken, or plan to take, to avoid further financial loss to SRTT.
Questions Over SRTT Trustees
The complaint also asks the charity commissioner to examine whether personal interests, differences between trustees or possible conflicts of interest may have played a role in the continuing problem.
It says the money involved belongs to charitable institutions and is meant to be used for the benefit of society. The complaint argues that trustees should therefore ensure that internal differences do not cause financial harm to the trust or its beneficiaries.
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According to the report, Tata Trusts has, for now, decided against approaching the Bombay High Court against the restriction on SRTT holding meetings. Tata Trusts had earlier approached the Maharashtra charity commissioner for relief but has not yet received it. It is considering another representation to the regulator.