SRTT ban may delay Tata selection committee formation

The formation of the selection committee by Tata Trusts to choose the next chairman is likely to be delayed due to restrictions imposed by the Maharashtra Charity Commissioner on Sir Ratan Tata Trust (SRTT), which has been barred from convening any meeting or passing any resolution until the dispute over its board composition is decided. The next hearing in the matter is scheduled for September 8, 2026.

As per the Articles of Association (AoA) of Tata Sons, both Sir Dorab Tata Trust (SDTT) and SRTT have to jointly nominate three members to the five-member selection committee. One member will be from Tata Sons and one external member.

Since SRTT is under a regulatory ban, it cannot participate in the selection process for the time being, said analysts. And so the entire selection process will not move forward as desired, they added.

While SRTT owns 23.5% of Tata Sons, SDTT has 27.9%. 

A day after N Chandrasekaran, the Chairman of Tata Sons announced his decision not to go for the third term, SDTT passed a resolution to initiate the setting up of a selection committee as soon as possible in accordance with the AoA of Tata Sons, for the purpose of recommending a person for appointment as the new chairman of the Board of Directors. This has been interpreted as a move by SDTT to initiate the process though a decision on SRTT would come later.

Since Mr Chandrasekaran will continue as Chairman till February, 2027, there is time available to finalise the names of the selection committee..

It is believed that Maharashtra Charity Commissioner’s office maybe moved to allow SRTT to convene a meeting and pass a resolution in this matter, which is a procedural one needing urgent intervention rather than approving any budget and having any financial dealing..

According to people familiar with the development, the Tata Trusts may move the court to deal with this extraordinary situation.