The Supreme Court has cleared a court-monitored probe into the alleged siphoning of ₹100 crore from a Mumbai Parsi estate, rejecting appeals by the Tata Trusts. The court emphasized that while the Indian Succession Act governs estate administration, it does not provide immunity for criminal breach of trust, forgery, or conspiracy to siphon off an estate in medio.
Court's Ruling
A bench of the Supreme Court dismissed the petitions filed by the Tata Trusts, which had challenged a Bombay High Court order for a probe. The court noted that the allegations involved serious offenses under the Indian Penal Code, including criminal breach of trust and forgery. The probe will be monitored by a retired judge to ensure transparency.
Allegations of Siphoning
The case pertains to the estate of a wealthy Parsi family in Mumbai, valued at approximately ₹100 crore. It is alleged that the funds were diverted through fraudulent transactions and misappropriation by trustees. The petitioners argued that the estate was being administered under the Indian Succession Act, which bars interference. However, the Supreme Court clarified that criminal acts cannot be shielded by civil laws.
Implications
This ruling sets a precedent that estate administrators can be held criminally liable for misuse of funds. The court-monitored probe is expected to uncover the full extent of the siphoning and identify all parties involved. The Tata Trusts, which manage several charitable institutions, have not yet commented on the verdict.
