The Tata Trusts (TT) issued a statement on Friday in which it called the allegations regarding a share transfer made by the Navajbai Ratan Tata Trust (NRTT) to the late Naval H Tata in 1989 as ‘baseless’ and ‘unsubstantiated’.
TT said that they would like to state that any suggestion of impropriety on the part of either the Sir Ratan Tata Trust (SRTT), NRTT, or any of the parties to the transaction, is categorically denied.
“It is affirmed that the transaction was lawful, undertaken for consideration, and fully compliant with the rules in force at that point of time. It was cleared at the appropriate levels, including by the late Mr. Nani A. Palkhivala, one of the country's most distinguished lawyers, and approved by the then Board of Tata Sons. The transfer of shares was effected on a valid transfer form duly stamped by the Registrar of Companies,” said TT in its statement. Tata Trusts is the string of non-profits that own two-thirds of the salt-to-software conglomerate.
The statement came after reports of one Suresh Patilkhede approaching the Charity Commissioner's office with a request to initiate an inquiry pertaining to the transfer of 833 shares between the two parties. As per reports, Patilkhede's move comes days ahead of a crucial board meeting of Tata Trusts on June 8. TT said that the petitioner Patilkhede is a serial litigator who has, in the past (2020) filed several cases against the Tata Trusts without any locus and with an apparent objective of disrupting the philanthropic activities and functioning of the Tata Trusts.
“We are constrained to highlight that the intention of such unfounded and malicious allegations appears to be to tarnish the reputation of the Tata Trusts as a whole, and SRTT, in particular. These allegations also seek to taint the Tata family, including the late Naval H. Tata and his sons, the late Ratan N.Tata, Jimmy Tata and Noel N. Tata,” said TT. It added that the will purse appropriate legal remedies to safeguard their goodwill and reputation.
The strong refutal by TT comes as it is currently dealing with serious internal governance clashes, legal hurdles, and a fresh controversy over a decades-old share transfer. Led by Chairman Noel Tata, the philanthropic network, which controls a pivotal 66% stake in Tata Sons, is navigating structural and regulatory friction.
It also comes ahead of the crucial June 8 meeting of Tata Trusts, where presentations on some of Tata Group’s loss-making businesses are likely to be made to the Tata trustees. The June 8 meeting of Tata Trusts comes ahead of June 12 Tata Sons board meeting.
