The Maharashtra Charity Commissioner has closed the inquiry into the 1989 transfer of 833 Tata Sons shares from the Navajbai Ratan Tata Trust (NRTT) to the late Naval H. Tata, handing a major vindication to Tata Trusts and Chairman Noel Tata.
Key details of the closure include:
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Legally Compliant: State Charity Commissioner Amogh S. Kaloti ruled that the transaction followed due process, noting that the sale was necessitated by statutory and tax-related compulsions under the Income Tax Act at the time to protect the trust’s tax-exempt status.
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Fair Valuation: The regulatory review confirmed that the shares were transferred using proper documentation and based on a valid valuation approved by the Wealth Tax Commissioner, with the trust earning a legitimate profit on the transaction.
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Strict Conditions: The transfer included explicit clauses ensuring the shares would remain within the family and not be sold to any third party.
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No Further Inquiry: The order concluded that no further proceedings or inquiries under the Maharashtra Public Trusts Act, 1950, were warranted for a decades-old decision.
