Tata Trusts rejig likely, Venkat’s role uncertain
Tata Trusts, a cluster of charitable organisations controlling 66 per cent of Tata Sons, the holding company of the group, is facing a major rejig. This follows the recent withdrawal of income-tax exemption for Sir Dorabji Tata Trust, one of the oldest and biggest philanthropic organisations in the country, due to alleged violation of certain conditions.
The violation is linked to the compensation paid to the Trust’s Managing Trustee R Venkataramanan, also known as Venkat, putting a question mark on his future role in the organisation.
Tata Trusts, chaired by Ratan Tata, is expected to take up the matter related to the income-tax department order in a board meeting next week, it is learnt. Venkat may even have to step down as managing trustee to settle the issue, sources in the know said. He could possibly be given another role in the group, one of the sources said.
Tata Trusts, when contacted, declined to comment.
Responsible for management and oversight of all the Tata Trusts, Venkat, who started off as an executive assistant to Ratan Tata, has risen through the ranks.
In recent months, Venkat, who was under CBI investigation for a case linked to AirAsia, a joint venture airline with the Tatas where he was a director, is learnt to have faced stiff opposition within the organisation.
The income-tax order issued on December 31, 2018, made things worse. The tax exemption has been denied for violation of condition under Section 13 of the I-T Act. The alleged violation relates to significant compensation paid to Venkat as it is beyond permissible limit.
Besides the likely exit of Venkat from his current role, other changes are also expected at Tata Trusts. There will be fresh inductions, a source quoted earlier said. Noel Tata, chairman of Trent and half brother of Ratan Tata, is among the names being considered.
It has seen quite a few changes in the recent past too. In December, as part of a succession planning, it appointed trustees Vijay Singh, former defence secretary, and Venu Srinivasan, chairman of TVS Group, vice chairmen of the various trusts under its ambit.
Tata Trusts was established in 1919, but the activities took off in a big way when Sir Dorabji Tata set up a trust in 1932. Over the years, the significance of the Trusts has grown in terms of its commercial interest in the Tata group and the power it holds, even as charity remains a core area, according to people in the know.