Mumbai: The internal strife amongst the Tata Trust trustees continues, even as concerns rise about the governance of the $320 billion Tata Group. A writ petition filed by a Thane resident has asked the Bombay High Court to restrain the upcoming May 8 meeting of the Sir Ratan Tata Trust (SRTT) and the Sir Dorabji Tata Trust. The meeting was expected to discuss the future of veteran industrialist and TVS Group Chairman Venu Srinivasan as a trustee.
In anticipation of the move, the SRTT has filed a caveat in the High Court to ensure it is heard before any ex parte order is passed.
The Source of the Friction: The Tata Capital IPO
The reason for the rift has been the differences between the chairman of the Tata Trusts, Noel Tata and Venu Srinivasan, the vice chairman and veteran trustee, over the impending listing for Tata Capital, the group’s massive financial services arm.
Under the RBI’s ‘Upper Layer’ NBFC norms, Tata Capital was slated to list on the stock exchanges by September 2025. Though Noel wanted the IPO to meet regulations and unlock value for the company, Venu has expressed reservations about the IPO, along with its timing and structure, favouring a more cautious approach.
Key Points of the Writ Petition
The Writ Petition alleges that the proposed agenda of the meeting is prejudicial and arbitrary, urging the HC to restrain the Board of Trustees from removing Venu Srinivasan, as his long-standing contributions cannot be terminated without offering a transparent reason. There have also been procedural lapses, as there is no clarity of the specific claims on the agenda. Lastly, there has been a conflict of interest for the meeting as there are allegations that the philanthropic objectives of the Trusts aren’t being balanced against the commercial listing requirements of the subsidiary companies.
The dispute has been ongoing ever since Mr Ratan Tata passed away in October 2024.
