The Tata Trusts are evaluating their next steps following an order from the Maharashtra charity commissioner that prohibits them from convening board meetings. Options include seeking clarifications on the directive, arguing that the order should not apply as a blanket restraint on all Trusts, or challenging it before the Bombay High Court.
Scope of the Order
People familiar with the matter described the order as a sweeping directive that effectively freezes administrative and management decisions across the dozen-odd Trusts. This includes decisions on disbursing grants for social projects and actions related to their role as shareholders in Tata Sons. The Trusts believe the order should have been limited to the specific prayers sought by the complainants and restricted to Sir Ratan Tata Trust (SRTT) pending the submission of an inquiry report.
Background of the Complaint
The complainants, including vice-chairman Venu Srinivasan and advocate Katyayani Agrawal, sought the reconstitution of the SRTT board in line with amended law. The amendment, effective from September 2025, allows only one perpetual trustee instead of the current three. They also requested that decisions taken after September 1, 2025, be deemed invalid. The Trusts intend to submit legal opinions arguing that the amendments apply prospectively, not retrospectively—a position contrary to the complaints.
Impact on Tata Sons
The Trusts collectively own 66% of Tata Sons, with SRTT holding 24% of the shares. Tata Sons is expected to hold a board meeting next month. The commissioner’s order warns that interim decisions on the administration, management, or composition of the Trusts could lead to further complications and multiplicity of proceedings.
In response, the Trusts have cancelled meetings that were scheduled to discuss nominees for the Tata Sons board and comments by some trustees, including Srinivasan, supporting a potential IPO.
Author: Reeba Zachariah, Assistant Corporate Editor at The Times of India, Mumbai, covering large Indian business houses, mergers, acquisitions, and sectors like hospitality, retail, travel, liquor, and consumer durables.
