09/06/26, Tata Sons

Trustees of key Tata Trusts, including Sir Dorabji Tata Trust (SDTT) and Tata Education and Development Trust, met on Monday.

Sir Ratan Tata Trust (SRTT) did not hold a meeting as the trust continues to be subject to proceedings before the Maharashtra Charity Commissioner arising from complaints relating to the number of lifetime trustees.

A key contentious issue, trustee Venu Srinivasan's continuation as a nominee director on the Tata Sons board, was not discussed in Monday's meetings, people familiar with the matter said.

According to sources, the issue did not come up because SRTT, of which Srinivasan is also a trustee, did not meet.

The matter has assumed significance because Tata Trusts' nominees on the Tata Sons board are central to the holding company's governance structure. All key decisions must be approved by a majority of directors nominated by the Tata Trusts on the Tata Sons board.

Currently, Tata Trusts Chairman Noel Tata and Srinivasan represent the Tata Trusts on the Tata Sons board.

Moneycontrol had reported earlier that Tata was in favour of replacing Srinivasan with Bhaskar Beat, the former Managing Director of Titan, and a trustee of SDTT on the Tata Sons board.

Legal Maneuvering

But this has seemingly been stymied by the legal imbroglio surrounding SRTT. One of the complainants to the Charity Commission, alleging that SRTT's board should have 1 lifetime trustee instead of the current 3, is Srinivasan himself.

SDTT and SRTT are referred to as the major Tata Trusts and own a majority of Tata Sons.

Monday's meetings also come at a time when differences within sections of the trusts have sharpened over key governance issues, including the possible listing of Tata Sons and whether Tata Sons Chairman N Chandrasekaran would get a third term. While Tata Trusts chairman Noel Tata is opposed to listing the Tata Group's holding company, Srinivasan and another trustee, for bureaucrat Vijay Singh, have supported listing.

Share Transfer Allegations

The meetings were held days after Tata Trusts publicly rejected allegations made in a fresh complaint to the Maharashtra Charity Commissioner regarding the transfer of 833 Tata Sons shares to the late Naval Tata from the Navajbai Ratan Tata Trust in 1989.

The Trusts described the allegations as baseless, malicious and an attempt to damage the reputation of the institution and the Tata family. Naval Tata is the father of the late Ratan Tata, Jimmy Tata and Noel Tata.

Emails sent to Tata Sons and Tata Trusts seeking comment did not elicit any response till press time.

June 12 meeting

The meeting assumes significance because it comes just four days before the Tata Sons board meeting, where issues including Tata Sons Chairman N Chandrasekaran's possible third term, the listing of Tata Sons, and strategic calls, notably the future direction of long-gestation businesses such as Tata Digital, are expected to be discussed.

We had earlier reported that trustees would review businesses such as , Air India,  Tata Digital and Tata Elections.all of which continue to require substantial capital commitments despite remaining in investment mode.

Moneycontrol had also reported that Tata Trusts Chairman Noel Tata would share his observations following discussions at the 7Tats Sons board meeting on May 26 where executives from group companies had briefed directors on their businesses.

 At the board meeting held on may26 directors discussed the performance, investment requirements and profitability timelines of Air India, Tata Digital and Tata Electronics.

Air India remains the largest loss-making unlisted company within the Tata Group and is expected to require significant investments over the coming years towards fleet expansion, network growth, integration and operational turnaround.

Tata Electronics, meanwhile, is central to the group's semiconductor and electronics manufacturing ambitions and requires substantial upfront investments before generating meaningful returns.

Tata Digital, which houses businesses such as Tata Neu, BigBasket, Tata Cliq and Tata 1mg, continues to operate in highly competitive markets dominated by well-funded rivals.

Report by Deborshi Chalk,  Netwirk18