Tata Trustee Venu Srinivasan Questions Noel Tata’s Power, Seeks Probe Into Trusts

Tata Trustee Venu Srinivasan has approached the Maharashtra Charity Commissioner, alleging governance irregularities, concentration of decision-making powers and growing interference in Tata Sons’ commercial affairs.

Venu Srinivasan, a trustee of the Sir Dorabji Tata Trust (SDTT) and Sir Ratan Tata Trust (SRTT), has sought an immediate inquiry by the Maharashtra Charity Commissioner into alleged governance lapses at the charitable institutions, escalating the ongoing differences within the Tata Trusts.

In a letter to the charity commissioner, Srinivasan raised questions over Noel Tata’s appointment and continuation as a perpetual trustee, the basis of his appointment as chairman of Tata Trusts, the induction of his son Neville Tata and his own exclusion from key decisions, as per a report by The Economic Times (ET).

The dispute also centres on the role of the trusts in Tata Sons, in which Tata Trusts collectively hold around 66% of the equity.

Concerns Over Commercial Involvement

Srinivasan has objected to what he described as the growing involvement of the charitable trusts in Tata Sons’ strategic and commercial decisions.

Citing the September 17 statement on exploring alternatives to listing Tata Sons and Noel Tata’s proposal to provide liquidity to the Shapoorji Pallonji (SP) Group, he alleged that the trusts had taken on responsibilities beyond their charitable mandate, ET reported.

“A matter of serious concern is the increasing involvement of SDTT and Tata Trusts in the commercial and strategic affairs of Tata Sons Pvt Ltd. SDTT is a public charitable trust and its substantial shareholding in Tata Sons cannot be permitted to result in the trust itself assuming the functions of a commercial enterprise or participating directly in the conduct of Tata Sons’ business affairs,” the letter stated, as per ET.

He warned that such involvement could jeopardise SDTT’s tax-exempt status and charitable corpus, citing provisions of the Income Tax Act, 2025, governing commercial activities by non-profit organisations.

Dispute Over Decision-Making Powers

The letter also questioned a September 16 circular resolution that sought to restrict Srinivasan, a joint nominee director of SDTT and SRTT on the Tata Sons board, from participating in or voting on the proposed listing.

“This was an extraordinary attempt to prevent me from exercising my independent judgement and vote, and to neutralise my position as a trustee because it differed from that of certain other trustees,” Srinivasan wrote.

He described the move as an attempt to concentrate authority within a smaller group of trustees, alleging that it followed his exclusion from decision-making in November 2025.

Srinivasan has asked the charity commissioner to initiate an inquiry and consider suspending or removing trustees, if warranted. He has also sought restrictions on Noel Tata’s participation in certain trust decisions and voting rights relating to Tata Sons.

Pending the inquiry, he has sought a freeze on changes to SDTT’s board and restrictions on meetings and circular resolutions concerning its administration. He has also requested that Noel Tata abstain from voting on specified Tata Sons board matters.

The complaint comes after the charity commissioner barred SRTT from holding meetings or taking decisions in May over alleged violations of trustee-composition rules under the Maharashtra Public Trusts Act. An inquiry into the matter is undergoing.

Meanwhile, Tata Trusts has proposed restructuring Tata Sons by merging two operating companies with the holding company, potentially changing its regulatory classification while retaining it as an unlisted private entity. The proposal has been submitted to the Tata Sons board and the Reserve Bank of India, adding another dimension to the ongoing governance dispute.