Venu Srinivasan flags governance lapses, seeks probe into Tata Trusts: Report

Venu Srinivasan, who serves on the boards of both Tata Trusts and Tata Sons, has requested the Maharashtra Charity Commissioner to investigate governance issues within the Trusts, according to a media report. The Economic Times has reported that Srinivasan has alleged significant governance lapses and the involvement of Tata Trusts in Tata Sons, a commercial enterprise.

Srinivasan has also written a letter to the Maharashtra Charity Commissioner regarding his concerns. This comes amid a dispute between a member of the Tata Sons Board and the Tata Trusts, led by Noel Tata. The Trusts in question are the Sir Dorabji Tata Trust and Sir Ratan Tata Trust. Srinivasan also questioned the appointment and continued status of Noel Tata as a perpetual trustee and the basis for his chairmanship of Tata Trusts.

Tata Trusts holds a 66% stake in Tata Sons. Recently, Tata Trusts outlined a reorganization plan for Tata Sons, aiming to ensure the company remains neither a non-banking financial company nor a core investment company. The Trusts have written to Tata Sons Board to seek approval of this proposal and requested that the Board take necessary steps, including applying for a "no-objection certificate" from the Reserve Bank of India.

The reorganization would involve merging Tata Electronics Systems Solutions Private Limited and Tata Consulting Engineers with Tata Sons. The Trusts also stated they will engage with the RBI on all aspects of the proposed reorganization. The dispute between Noel Tata and Tata Sons has escalated, with Tata Sons Chairman N Chandrasekaran reversing his decision to not seek reappointment, and the Board voting unanimously in favor of his continued tenure, with sole opposition from Noel Tata.