Member of India's Tata Trusts seeks governance probe as rift deepens

By Jayshree P Upadhyay

MUMBAI, Sept 30 (Reuters) - A senior trustee at the Tata charities that control the salt-to-aviation group has sought a regulatory investigation into alleged internal lapses, a confidential letter shows, deepening a rift at one of India's most influential business groups.

Tata Sons, owner of brands including Jaguar Land Rover, is embroiled in a bitter public dispute after its leadership this month split openly with its biggest shareholder.

With ties to companies including Tesla and Apple, and a partnership with Starbucks, any struggle for control at Tata has implications well beyond India.

This month, the Tata Sons board overruled opposition from the controlling charities by reappointing its chairman and backing plans for a public listing. The episode has raised questions among Indian companies about how far a board can ​go in overriding the wishes of a majority shareholder.

In a sign of deepening divisions within the charities, known as Tata Trusts, senior trustee Venu Srinivasan has sought an investigation into why the philanthropic arm is increasingly intervening in the commercial affairs of Tata Sons.

Tata Trusts "have assumed a direct role in identifying, negotiating and seeking implementation of substantial commercial transactions concerning Tata Sons," Srinivasan wrote in his September 24 letter to the charity regulator in the western state of Maharashtra.

"Such activities go materially against the charitable objects," said the letter, reviewed by Reuters.

Under Indian law, if the regulator finds merit in the complaint, it can suspend trustees.

Tata Trusts, which own 66% of Tata Sons, did not respond to a request for comment. Srinivasan and the regulator also did not respond.

The letter was first reported by India's Economic Times newspaper on Wednesday.

Founded by Jamsetji ⁠Tata in 1868, the Tata Group comprises 31 companies and generated more than $180 billion in revenue last year.