Tata Trusts Gets Charity Commissioner Clearance Over NRTT Share Transfer

The Maharashtra Charity Commissioner has closed the case concerning the transfer of 833 Tata Sons shares from Navajbai Ratan Tata Trust (NRTT) to Naval H. Tata in 1989, as per a MoneyControl news report.  

Charity Commissioner Amogh Kaloti said no further inquiry was required under the Maharashtra Public Trusts Act, 1950. 

The matter relates to a transaction carried out more than 35 years ago. It came up again in June, when Vijay Singh, a trustee of NRTT and vice-chairman of Tata Trusts, sought an independent examination of the transfer. 

Reason for the Transfer 

The Charity Commissioner’s office sought a response from Tata Trusts chairman Noel Tata and documents relating to the transaction. The Trust said the transfer was made because of statutory requirements that could have affected NRTT’s tax-exempt status. 

From April 1983, public charitable trusts had to invest their funds in securities prescribed under the Income Tax Act to retain their tax exemption. NRTT held 833 ordinary shares of Tata Sons that were not covered by the prescribed securities. 

The Commissioner accepted that the need for the transfer had to be considered based on the rules and circumstances that existed at the time. The office said the decision taken by the trustees in 1988 could not be examined again in 2026. 

Share Valuation and Profit 

The consideration paid to NRTT was based on a valuation agreed upon by the Commissioner of Wealth Tax. The Trust made a profit from the transaction, which was recorded in its balance sheet for the year ended March 31, 1989. 

The order also noted that the shares were transferred with a condition that they could not be sold to a third party and would remain within the recipient’s family. The transaction was found to be in line with the laws applicable at the time. 

Comments on Vijay Singh’s Complaint 

The Commissioner also raised questions about Singh’s conduct in filing the complaint. The order noted that he had not shared his June 10 email with the Trust. 

It also noted that Singh had taken part in an NRTT board resolution on June 8 to represent the Trust’s case before the regulator, before filing his own complaint two days later. 

Other Matters Before Regulator 

The NRTT matter is one of several Tata Trust-related cases before the Charity Commissioner. These include matters concerning former trustee Mehli Mistry and an inquiry into Sir Ratan Tata Trust. 

SRTT has been barred from holding meetings until the inquiry is completed. The restriction led to Tata Sons’ August 18 annual general meeting being adjourned for lack of the required quorum.  

The Trusts have sought a waiver to allow SRTT representatives to attend a future AGM and participate in the search committee for the successor to Tata Sons chairman N. Chandrasekaran. 

Read More: EPL Stake Sale: Blackstone Sells 26.38% Holding for ₹2,032 Crore! 

Conclusion  

The regulator has closed the matter after finding that the transfer was made due to statutory requirements and was supported by relevant documents. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.   
 
Investments in the securities market are subject to market risks, read all the related documents carefully before investing.