Mumbai

Thewidening boardroom dispute at Tata Sons has spilled into Tata Trusts, with trustee and Tata Sons nominee director Venu Srinivasan seeking a regulatory inquiry into the governance of the Sir Dorabji Tata Trust (SDTT), one of the charitable entities that collectively control about 66 per cent of Tata Sons.

In a letter to Maharashtra's Charity Commissioner, Srinivasan has questioned the appointment and continued status of Noel N. Tata as a perpetual trustee, the appointment of Noel Tata's son Neville Tata, and what he described as attempts to constrain his independent role as a nominee director on the Tata Sons board.

At the centre of the dispute is a September 16 SDTT circular resolution that Srinivasan said sought to prevent him from participating in or voting on the proposed listing of Tata Sons. He described it as an attempt to "prevent me from exercising my independent judgement and vote".

The following day, at a Tata Sons board meeting, Srinivasan supported the reappointment of Chairman N Chandrasekaran for a third five-year term and backed moving ahead with the listing process. Noel Tata opposed both positions. The board passed the resolutions, with the Chandrasekaran vote requiring a casting vote. Tata Trusts later disputed the validity of the board decisions, maintaining that its nominees were required to agree on such matters.

Srinivasan has also questioned the Trusts' involvement in Tata Sons' commercial affairs. Referring to a September 17 Tata Trusts statement that all available options, and not listing alone, should be explored, he alleged that the Trusts and their operating team had assumed a direct role in commercial and strategic matters concerning Tata Sons.

He argued that such involvement could conflict with the charitable objectives of SDTT and potentially expose it to tax consequences. He alleged that the Trust was being exposed to "potentially immense fiscal consequences" and described the conduct as mismanagement of its affairs and property.

Srinivasan has sought an immediate inquiry into SDTT's administration and governance, including Noel Tata's perpetual trusteeship, Neville Tata's appointment, his own exclusion from decision-making and the Trusts' involvement in Tata Sons' commercial affairs.