The Tata Trusts dispute has intensified with fresh filings before the Maharashtra Charity Commissioner. Noel Tata and Neville Tata have filed caveats, seeking to be heard before any action is taken on the reported complaints.
Tata Trusts which own 66 per cent of Tata Sons filed caveats before the Maharashtra charity commissioner to block any adverse order against them without first hearing their side. Experts believe the caveats filed by Tata Trusts are a bid to avoid a repeat of the ex parte order the Charity Commissioner issued in May barring Sir Ratan Tata Trust (SRTT), the second-largest Tata Sons shareholder, from holding board meetings after Srinivasan complained that its board composition violated the Maharashtra Public Trusts Act.
Tata Trusts’ Spokesperson told Times Now Digital, “while it is reported in the media that Mr. Venu Srinivasan and Mr. Vijay Singh have filed complaint against SDTT with the Ld. Charity Commissioner, SDTT has not been served with a copy of any complaint filed by them. If the media reports regarding this is correct, then the assertions as reported in the media are denied in their entirety as untenable.”
Aliff Fazelbhoy, Senior Partner at ALMT Legal told Times Now Digital, “this is by no means a simple case of who is right and who is wrong. The Trusts are entitled to act as majority shareholders and protect their rights, and the board is entitled to act as a board which has its duty primarily to the company and not only to its largest shareholder. The Trusts’ or rather Noel Tata and the family wish to keep Tata Sons private which is a legitimate shareholder objective rooted in the philosophy of maintaining the group’s philanthropic objectives alongside being a profitable business. However, RBI’s framework for listing also has to be examined carefully.
As an outsider, taking a neutral view, I see both merit and demerit in a listing. From Noel Tata’s perspective, if the flagship company does not need public money, I can understand why the Trusts would be sceptical of listing.
The unfortunate part which both sides must realise, is that it is damaging the Tata Group and its reputation, not only in India but across the globe. I would suggest that the factions should enter into mediation to try and reach a solution as to what is best in the interest of all parties including the public and the regulators should support such mediation and give some leeway to Tata Sons to arrive at a solution that is within the framework of the regulations.”
Varun Singh, Managing Partner at Foresight Law Offices told Times Now Digital, “if the dispute gets resolved through the approval of RBI. It should be become a master class for companies as to how to resolve disputes. One side wanting to comply with RBI directions of listing and the other side wanting the company to remain private. They chose not rip into each other by going to court over interpretation of Article 121. Instead change the direction of fight by restructuring their business and go outside the ambit of the NBFC requirement.”
Noel, Neville File Caveats; Tata Trusts Say No Complaint Served, ‘Assertions Reported Denied In Their Entirety As Untenable’
