Tata Sons chairman N Chandrasekaran has been appointed chairman of the Ratan Tata Endowment Foundation (RTEF), a Section 8 entity set up by the late Ratan Tata to which he bequeathed much of his wealth for charitable and philanthropic purposes.
The executors of Ratan Tata's will appointed Chandrasekaran after seeking an external legal view, sources said. The restriction in the Articles of Association (AoA) preventing the chairman of Tata Sons from also serving as the chairman of Tata Trusts does not apply in this case, as the foundation is not affiliated with the Trusts.
Darius Khambata, Mehli Mistry, and Shireen and Deanna Jejeebhoy are the executors of the late group patriarch’s will.
Chandrasekaran will soon formalise the management structure for the foundation as well as the team that will run it, it is learnt. The distribution of Ratan Tata’s wealth can take place only after the will is submitted for probate at the end of March and is certified by the Bombay High Court, a process that could take up to six months. Once the will is approved by the court, the foundation will get funds stemming from Ratan Tata’s stake in Tata Sons and group companies as well as holdings in Tata Technologies and Tata Digital.
Chandrasekaran did not comment.
Ratan Tata had expressed his wish that Chandrasekaran, with whom he shared a close equation, lead the foundation while appointing RR Shastri and Burjis Taraporewala as holding trustees of RTEF and Jamsheed Poncha as its CEO.
Ratan Tata had wanted the foundation to remain independent of Tata Trusts. In recent months, there was lack of clarity over the appointment of trustees to the RTEF board in the absence of any clear written instructions on the matter by Ratan Tata.
Chandrasekaran’s appointment is a strategic governance move that ensures the foundation’s independence from Tata Trusts while leveraging his leadership, said Ketan Mukhija, senior partner at Burgeon Law.
“Since the restrictions in the Articles of Association do not apply, this underscores RTEF’s distinct legal and operational structure,” said Mukhija. “However, to uphold its philanthropic mission and avoid potential conflicts of interest, clear governance mechanisms and transparency will be essential. The success of this arrangement will depend on how well RTEF maintains its autonomy while benefiting from Tata Sons’ leadership.”
Tata died in October 2024 at 86. RTEF was recently set up as a Section 8 company to focus on new, relevant and under-represented areas of philanthropy, promote research into future technologies relevant for a modern India, as well as support long-term initiatives which will have significant positive social impact for India.
Ratan Tata's half-sisters, Shireen and Deanna Jejeebhoy, are from their mother’s second marriage to Sir Jamsetjee Jejeebhoy. Mehli Mistry was a close confidant of Ratan Tata and is a trustee at the two main Tata charities—Sir Dorabji Tata Trust and Sir Ratan Tata Trust.
Ratan Tata owned a direct 0.83% in Tata Sons, the holding company of the Tata Group, and had a net worth of about ₹8,000 crore, according to various estimates.
Sources say his actual wealth will exceed the stated numbers. Apart from Tata Sons shares, he also owned a fleet of luxury cars, including a Ferrari and a Maserati, expensive paintings, shares in startups, and other investments, sources said.
RNT Associates, Ratan Tata's personal investment vehicle, held investments worth ₹186 crore until FY23, but these are listed at their original cost of acquisition. The current market value of these assets could have risen manifold since then.
“It is a well-reasoned and thought-out decision from a corporate governance perspective as RTEF is an independent company,” said Ashish K Singh, managing partner of law firm Capstone Legal. “What is most important for a Section 8 company is its objective and from a legal standpoint, appointment of a professional chairman for the company is very important to achieve that.”
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Darius Khambata, Mehli Mistry, and Shireen and Deanna Jejeebhoy are the executors of the late group patriarch’s will.
Chandrasekaran will soon formalise the management structure for the foundation as well as the team that will run it, it is learnt. The distribution of Ratan Tata’s wealth can take place only after the will is submitted for probate at the end of March and is certified by the Bombay High Court, a process that could take up to six months. Once the will is approved by the court, the foundation will get funds stemming from Ratan Tata’s stake in Tata Sons and group companies as well as holdings in Tata Technologies and Tata Digital.
Chandrasekaran did not comment.
Ratan Tata had expressed his wish that Chandrasekaran, with whom he shared a close equation, lead the foundation while appointing RR Shastri and Burjis Taraporewala as holding trustees of RTEF and Jamsheed Poncha as its CEO.
Ratan Tata had wanted the foundation to remain independent of Tata Trusts. In recent months, there was lack of clarity over the appointment of trustees to the RTEF board in the absence of any clear written instructions on the matter by Ratan Tata.
Chandrasekaran’s appointment is a strategic governance move that ensures the foundation’s independence from Tata Trusts while leveraging his leadership, said Ketan Mukhija, senior partner at Burgeon Law.
“Since the restrictions in the Articles of Association do not apply, this underscores RTEF’s distinct legal and operational structure,” said Mukhija. “However, to uphold its philanthropic mission and avoid potential conflicts of interest, clear governance mechanisms and transparency will be essential. The success of this arrangement will depend on how well RTEF maintains its autonomy while benefiting from Tata Sons’ leadership.”
Tata died in October 2024 at 86. RTEF was recently set up as a Section 8 company to focus on new, relevant and under-represented areas of philanthropy, promote research into future technologies relevant for a modern India, as well as support long-term initiatives which will have significant positive social impact for India.
Ratan Tata's half-sisters, Shireen and Deanna Jejeebhoy, are from their mother’s second marriage to Sir Jamsetjee Jejeebhoy. Mehli Mistry was a close confidant of Ratan Tata and is a trustee at the two main Tata charities—Sir Dorabji Tata Trust and Sir Ratan Tata Trust.
Ratan Tata owned a direct 0.83% in Tata Sons, the holding company of the Tata Group, and had a net worth of about ₹8,000 crore, according to various estimates.
Sources say his actual wealth will exceed the stated numbers. Apart from Tata Sons shares, he also owned a fleet of luxury cars, including a Ferrari and a Maserati, expensive paintings, shares in startups, and other investments, sources said.
RNT Associates, Ratan Tata's personal investment vehicle, held investments worth ₹186 crore until FY23, but these are listed at their original cost of acquisition. The current market value of these assets could have risen manifold since then.
“It is a well-reasoned and thought-out decision from a corporate governance perspective as RTEF is an independent company,” said Ashish K Singh, managing partner of law firm Capstone Legal. “What is most important for a Section 8 company is its objective and from a legal standpoint, appointment of a professional chairman for the company is very important to achieve that.”
