Rs 10,000-crore question mark over Ratan Tata estate
A recent Maharashtra charity commissioner's ruling has raised questions over the substantial Rs 10,000 crore estate of Ratan Naval Tata, the former chairman of Tata Sons. The ruling by Amogh Kaloti highlights a crucial condition under which his father Naval Hormusji Tata acquired the shares, stipulating that the shares would only be bequeathed down the family lineage or returned to the Navajbai Ratan Tata Trust (NRTT).
The ruling focuses on shares amounting to 0.83% equity stake in Tata Sons, which has a publicly traded value exceeding Rs 12 lakh crore. The charity commissioner's order empowers NRTT trustees to take appropriate steps if Ratan Tata has breached the conditions by bequeathing the shares to third-party charities. The shares were originally transferred with three conditions by Naval Hormusji Tata, as per a legal opinion by Nani Palkhivala, to avoid challenges later.
These conditions include not alienating the shares during his lifetime, not bequeathing them to anyone other than his wife and children, and ensuring they are transferred to similar relatives, not third parties.
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