Tata Trusts Vice Chairman Seeks Independent Probe Over 1989 Tata Sons Share Transfer

A decades-old Tata Sons share transaction involving Tata Trusts has come under renewed scrutiny after vice chairman Vijay Singh approached the Maharashtra Charity Commissioner seeking an independent review of the 1989 deal, according to a report by The Economic Times.

At the centre of the controversy is the transfer of 833 Tata Sons shares from the Navajbai Ratan Tata Trust to late businessman Naval H Tata. Singh, in a June 10 letter reviewed by ET, said an independent inquiry was needed to examine the legality of the transaction and bring clarity to concerns that have recently surfaced around governance at Tata Trusts.

“As a trustee of the Sir Ratan Tata Trust as well as the Navajbai Ratan Tata Trust, I feel it is my duty to request an independent enquiry into both the legality and propriety of the transfer of these shares, so that the factual position is conclusively established,” Singh wrote in the letter.

Questions Over 1989 Share Transfer

The latest development comes days after petitioner Suresh Tulsiram Patilkhede, represented by advocate Katyayani Agrawal, moved the Maharashtra Charity Commissioner on June 4 seeking an investigation into the 1989 transaction.

In the complaint, the petitioner argued that the transfer was carried out shortly after Naval Tata resigned as trustee and called for a review of the procedures followed before trust-held shares changed hands.

The representation also sought regulatory intervention to examine whether the transfer aligned with the objectives of the charitable trust and whether assets held by the trust were moved in a manner inconsistent with its intended purpose.

Conflict Concerns and Tata Trusts’ Response

Singh’s letter also raised concerns over a possible conflict-of-interest situation involving Tata Trusts chairman Noel Tata, who is among Naval Tata’s successors. “Since Mr Noel Tata, a direct beneficiary of the share transfer, is presently chairman of the Tata Trusts, it could be inferred that a denial authorised by him does create a conflict-of-interest situation, without casting any aspersions on anyone,” Singh said.

He further requested the charity commissioner to initiate an inquiry under the Maharashtra Public Trusts Act, 1950 into the circumstances surrounding the transfer and whether the transaction complied with laws applicable at the time.

Tata Trusts, meanwhile, has pushed back against the allegations, saying they are part of a “wilful, malicious and orchestrated campaign” aimed at discrediting an institution that has served the country for more than 130 years. The Trusts also said the accusations were intended to tarnish the reputation of late Ratan N Tata, Jimmy Tata and Noel Tata, and added that it would pursue legal remedies to protect its reputation.