Charity Commissioner seeks Noel Tata’s response over 1989 Tata Sons share transfer

MUMBAI: The Maharashtra Charity Commissioner’s office has sought a detailed response from Noel Tata, chairman of Tata Trusts and trustee of the Navajbai Ratan Tata Trust (NRTT), over allegations surrounding the transfer of 833 Tata Sons shares from the trust to the late Naval H. Tata in 1989.

According to a communication reviewed by The Economic Times, the regulator will decide whether to order an independent inquiry after examining Noel Tata’s explanation and supporting documents. The matter stems from a legal notice alleging that the transfer, executed on January 18, 1989, amounted to an unlawful alienation of assets from a public charitable trust to private ownership.

The commissioner’s office received a communication from Vijay Singh, trustee of NRTT and vice chairman of Tata Trusts, referring to the legal notice. While the communication noted that Tata Trusts had publicly denied the allegations, the regulator observed that the denial was authorised by a direct beneficiary of the share transfer, raising questions about a possible conflict of interest.

The Charity Commissioner has asked Noel Tata to clarify five aspects of the transaction, including the rationale for transferring the shares, the documentation supporting the decision, whether the trust received consideration based on an independent valuation, whether the transfer benefited Naval Tata’s family, and whether the transaction complied with the legal framework in force at the time.

The regulator has directed Noel Tata to submit his response along with supporting documents within two weeks, stating that his explanation will play a key role in determining whether an independent inquiry should be initiated under the Maharashtra Public Trusts Act. The communication said the process would follow the principles of natural justice.

The latest development comes shortly after the Maharashtra Charity Commissioner restrained the Sir Ratan Tata Trust from holding meetings or taking decisions pending an inquiry into alleged violations concerning its board composition and compliance with the Maharashtra Public Trusts Act.