Venu Srinivasan seeks probe into Tata Trust, questions Noel Tata

Venu Srinivasan, a trustee of Sir Dorabji Tata Trust, has sought a probe into alleged governance lapses. He questions Noel Tata's perpetual trusteeship and claims attempts were made to prevent him from voting on the proposed Tata Sons listing.

Sir Dorabji Tata Trust trustee Venu Srinivasan has sought an immediate inquiry by the Maharashtra Charity Commissioner into alleged governance lapses at the trust, questioning Noel Tata’s perpetual trusteeship and alleging attempts to prevent him from voting on the proposed listing of Tata Sons.

In a letter addressed to the Charity Commissioner and the Deputy/Assistant Charity Commissioner, Greater Mumbai Region, Srinivasan also sought restrictions on Noel Tata’s participation in certain trust and Tata Sons decisions, along with a freeze on changes to the trust’s board pending the inquiry.

Call for Scrutiny

Srinivasan requested scrutiny of Noel Tata’s appointment and continued status as a perpetual trustee, the basis of his chairmanship of Tata Trusts, and the circumstances surrounding Neville Tata’s appointment and Srinivasan’s alleged exclusion from the relevant decision-making process. He also asked the authority to examine the involvement of Sir Dorabji Tata Trust (SDTT) and its trustees in the commercial and strategic affairs of Tata Sons.

Allegations of 'Power Grab' and Exclusion

Detailing his objection to restrictions on his role as a nominee director, Srinivasan wrote: “On September 16, 2026, SDTT circulated Circular Resolution No. 107 seeking to restrain me, in my capacity as a nominee director on the Board of Tata Sons, jointly appointed by SRTT and SDTT, from participating in or voting on the proposed listing of Tata Sons.” SRTT refers to the Sir Ratan Tata Trust.

Srinivasan alleged that the resolution sought to prevent him from exercising independent judgement because his position differed from that of certain other trustees.

“More fundamentally, it was an attempt to effect a power grab within SDTT and, through it, to dictate what Tata Sons should do instead of allowing its Board to objectively evaluate the available alternatives on their merits,” he wrote. He linked the move to his alleged exclusion in November 2025, describing it as part of a continuing effort to suppress differing views and concentrate decision-making within a smaller group of trustees.

Concerns Over Charitable Status and Tax Risks

The letter also raised concerns about the potential impact of the trusts’ involvement in Tata Sons’ commercial affairs on SDTT’s charitable status and tax exemptions. Srinivasan cited Tata Trusts’ September 17 statements on keeping Tata Sons unlisted and a proposal placed by Noel Tata before the Tata Sons board to provide liquidity to the SP Group through monetisation of its shareholding.

According to the letter, the proposal envisaged a buyout in two tranches, a selective capital reduction through the National Company Law Tribunal and various financing sources. Srinivasan alleged that these activities amounted to direct participation by the trusts in identifying, negotiating and seeking implementation of substantial commercial transactions. “The Trustees are therefore exposing the Trust and its charitable corpus to potentially immense fiscal consequences by involving the Trust directly in commercial activities which may not be incidental to its charitable objects,” he wrote.

Citing provisions of the Income-tax Act, 2025, Srinivasan argued that such involvement could put the trust’s tax registration and exemptions at risk, with potentially substantial consequences for its charitable assets. He sought consequential action against the trustees concerned, including suspension or removal, if warranted by the inquiry’s findings.

Interim Relief Sought

The requested interim directions include restraining Noel Tata from exercising voting rights on behalf of SDTT or other shareholding trusts at Tata Sons’ general meetings and requiring him to abstain from board decisions covered by Article 121 of Tata Sons’ Articles of Association. Srinivasan also asked the Charity Commissioner to halt meetings, circular resolutions and other processes concerning SDTT’s administration, management or composition pending an inspector’s inquiry report and further directions.

Tata Trusts' Position

Tata Trusts said in a September 17 statement that it had not agreed to a public listing of Tata Sons and wanted all available alternatives examined. The trusts maintained that preserving the charitable ownership structure was central to the Tata Group’s public purpose.

About Sir Dorabji Tata Trust

SDTT was constituted under a trust deed dated March 11, 1932, for charitable purposes including education, healthcare, research and disaster relief, according to Srinivasan’s letter. (ANI)

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