N Srinath emerges as ‘front-runner’ for Tata Trusts CEO post
New Delhi: N Srinath, managing director, Tata Teleservices, has reportedly emerged as the frontrunner to lead Tata Trusts, which has majority control of the $110 billion Tata Sons Ltd. Last month, the income tax department had cancelled the registration of six Tata Trusts — Jamsetji Tata Trust, RD Tata Trust, Tata Education Trust, Tata Social Welfare Trust, Sarvajanik Seva Trust and Navajbai Ratan Tata Trust — citing violations of guidelines applicable to charitable institutions.
In February this year, R Venkataramanan had stepped down as managing trustee of Tata Trusts. The largest philanthropic body in the country had constituted a three-member panel to find his successor. Several news reports mentioned that after interviewing many internal employees as well as professionals, the search panel, led by Ratan Tata, is expected to select Srinath for the coveted position.
According to a report in The Times of India, Srinath will be offered the position of a chief executive officer (CEO). It mentioned that the decision of Tata Trusts, which controls 66 per cent in the salt-to-software conglomerate Tata Sons, to create the CEO position after it was caught in a legal tangle with the tax department over Venkataramanan’s high salary package. After Venkataramanan’s exit, Tata Trusts have been managed by chairman emeritus Ratan Tata along with a core team of executives.
Venkataramanan resigned after the tax authorities sent a notice to the Sir Dorabji Tata Trust threatening to withdraw the tax exemption granted to it as because it had violated rules by granting annual salary of over Rs 2.66 crore to the former Tata group executive.
Besides, the Central Bureau of Investigation (CBI) last year had registered a case against Venkataramanan for allegedly trying to manipulate government policies through illicit means to get international licence for AirAsia India. Also, the Enforcement Directorate had lodged a money laundering case against AirAsia India over the same matter.
At present, Tata Sons owns 51 per cent in the budget carrier, while the Malaysian company AirAsia holds a 49 per cent stake. Tata Trusts operations chiefly cover developmental issues in areas such as health, education and livelihoods.
