Tata Sons' listing has been making headlines for months with the group trying to avoid the market's debut while the RBI maintains a silence on the issue. A legal notice has raised objections to the presence of TVS veteran Venu Srinivasan on both the RBI and Tata Sons boards, amid the regulator's ongoing review of Tata Sons' proposal for deregistration. While the notice comes from a relatively obscure political figure, the issue of Tata Sons' listing holds significant relevance for the Shapoorji Pallonji Group.


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Venu Srinivasan, the chairman emeritus of TVS Motor, is known for maintaining a low profile and steering clear of controversies. Unlike some of his contemporaries, he avoids engaging with people on social media. However, he has now found himself at the center of an unusual controversy due to his role as a non-executive director at Tata Sons. The issue has gained attention following the legal notice addressed to the RBI leadership, adding another layer of complexity to the ongoing dispute, reported ET.


According to an NBT report, Suresh Tulsiram Patilkhede from Mumbai has issued a legal notice to the Reserve Bank of India (RBI), raising concerns about the ongoing dispute between Tata Sons and the RBI. The notice alleges that Tata Sons is attempting to bypass regulations and avoid public listing. It also highlights a potential conflict of interest within the RBI.


The notice accuses Tata Sons of attempting to delay public listing until 2025. On March 28, 2024, Tata Sons applied for the cancellation of its Core Investment Company (CIC) status. According to regulations, CICs are required to go for public listing and are subject to stringent oversight by the RBI. The notice further states that Tata Sons operates as a Non-Banking Financial Company (NBFC) and profits from public funds, said reports.


The notice also questions the conflict of interest involving Venu Srinivasan, a director at Tata Sons and vice-chairman of Tata Trusts, who is simultaneously a member of the RBI board. It claims that Srinivasan's dual roles undermine the independence of the RBI's decision-making processes. Concerns were raised about the RBI’s handling of Tata Sons' application for CIC status cancellation.


The notice specifically states that Venu Srinivasan serves as vice-chairman of Tata Trusts and a director at Tata Sons with signatory powers. He has also been appointed as a director of the RBI for the 2022-2026 term.


Advocate Reddy added that the presence of Venu Srinivasan on the RBI board raises serious questions about the institution's independence. This appears to be a clear case of conflict of interest. The RBI should not even have the authority to consider such an application. Accepting it and deliberating on it for such an extended period is undoubtedly suspicious. While the allegations and speculations continue to make headlines, all eyes on whether Venu Srinivasan's dual role influence RBI's decision.