The internal dispute within Tata Trusts has widened after Vijay Singh, vice chairman of Tata Trusts and a trustee of the Sir Dorabji Tata Trust (SDTT), approached the Maharashtra Charity Commissioner seeking an inquiry into the trust’s governance and its involvement in the affairs of Tata Sons. Singh has raised questions over the extent to which SDTT and its trustees can participate in the commercial and strategic matters of Tata Sons, according to a report by The Economic Times. He has also sought further action if the proposed inquiry finds violations or other grounds for intervention.

Singh has questioned whether SDTT’s substantial shareholding in Tata Sons permits the trust and its trustees to directly participate in the company’s business affairs. In his submission to the Charity Commissioner, he argued that the trust’s shareholding in Tata Sons should not mean that it assumes the functions of a commercial enterprise or becomes directly involved in the company’s operations. Singh has also raised concerns over possible tax implications for SDTT arising from activities that may be considered beyond the scope of its charitable objectives.

The concerns are linked to the regulatory and legal obligations applicable to registered charitable trusts. According to the report, Singh has referred to provisions of the Income Tax Act, 2025 concerning commercial activities undertaken by non-profit organisations. He has argued that activities not incidental to the trust’s charitable objectives could potentially affect its tax registration and exemption. The issue could have wider implications for SDTT because of the significant value of its shareholding in Tata Sons and the importance of the trust’s charitable corpus.

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Singh has asked the Charity Commissioner to take consequential action if the inquiry establishes grounds for intervention, including the suspension or removal of trustees where warranted. He has also sought directions under Section 36A(1) of the Maharashtra Public Trusts Act to restrain SDTT and its board from convening meetings, passing circular resolutions or undertaking processes concerning the administration, management or composition of the trust until the proposed inquiry by an inspector is completed. Singh has further requested that the existing composition of the SDTT board remain unchanged while the inquiry is pending.

The complaint comes shortly after another SDTT trustee and Tata Trusts vice chairman, Venu Srinivasan, approached the Charity Commissioner with separate concerns. Srinivasan had sought an inquiry into the appointment and continued status of Noel Tata as a perpetual trustee, as well as the basis on which he assumed and continues to hold the chairmanship of Tata Trusts. He also sought scrutiny of the appointment of Noel Tata’s son Neville Tata as an SDTT trustee. Singh has separately raised concerns over what he described as Srinivasan’s exclusion from relevant decision-making processes. Both submissions are now before the Maharashtra Charity Commissioner, while Tata Trusts has sought an opportunity to be heard before any decision is taken on the complaints.

The governance dispute is unfolding alongside a separate issue concerning the future structure and regulatory status of Tata Sons, in which Tata Trusts holds a 66% stake. On September 28, Tata Trusts proposed the merger of Tata Electronics Systems Solutions Private Limited and Tata Consulting Engineers with Tata Sons, saying the restructuring would give Tata Sons substantial operating revenues and result in an entity that would not qualify as either an NBFC or a Core Investment Company. The proposal is aimed at changing Tata Sons’ regulatory classification and addressing the listing requirement under the Reserve Bank of India’s Upper Layer NBFC framework. The restructuring requires consideration by the Tata Sons board and a no-objection certificate from the RBI, while the Charity Commissioner will consider the complaints concerning SDTT’s governance.

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