Tata Trusts has taken legal action against petitioner Suresh Tulsiram Patilkhede and his lawyer Katyayani Agarwal, demanding they withdraw allegations of impropriety concerning a 37-year-old transfer of 833 Tata Sons shares. The charitable organizations are seeking Rs 1,000 crore in damages for reputational harm and causing distress.
Background of the Share Transfer
The controversy stems from a complaint filed by Patilkhede with the Maharashtra charity commissioner, requesting an inquiry into the January 1989 share transfer from Navajbai Ratan Tata Trust (NRTT) to the late Naval Tata. Patilkhede alleged that the transfer was unlawful because it moved shares from a public charitable trust to a private individual, lacked a trustee resolution, had no transfer deed, and was done for nil consideration.
Trusts' Response and Legal Notices
In response, Tata Trusts issued notices to Patilkhede and Agarwal, asserting that the transfer was approved by the boards of both organizations, vetted by the late jurist Nani Palkhivala, and undertaken for a valid consideration. The transfer occurred one year after Naval Tata's resignation from NRTT. The Trusts described Patilkhede as a "serial litigator" whose allegations appear aimed at tarnishing the reputation of the Trusts and the Tata family.
Current Status of the Shares
The 833 shares in question are now held by Naval Tata's three sons: the late Ratan Tata, Jimmy Tata, and Noel Tata. The Trusts maintain that the transfer was conducted properly and in accordance with all legal requirements.
In a statement released on Friday, Tata Trusts emphasized that the allegations are baseless and designed to cause harm. They have demanded a retraction and an apology, failing which they will pursue legal remedies to protect their reputation and seek damages.
