A legal notice sent by Suresh Tulshiram Patilkhede has accused Tata Sons and the Reserve Bank of India (RBI) of regulatory violations, alleging that Tata Sons is attempting to evade mandatory public listing requirements. The notice, dated November 24, claims that Tata Sons, classified as a Core Investment Company (CIC) and a systemically important Non-Banking Financial Company (NBFC-UL), is seeking to avoid listing by 2025. It cites Tata Sons’ application for deregistration from its CIC status in March 2024 as evidence, despite the company still operating as an NBFC and benefiting from public funds. Concerns were also raised over Tata Sons’ liabilities, reportedly exceeding ?400,000 crore, and the risks these pose to its subsidiaries and the broader financial system.
The notice highlights a potential conflict of interest involving Tata Sons director and Tata Trusts vice chairman Venu Srinivasan, who also serves on the RBI board. This dual role, according to the complainant, compromises RBI’s independence, particularly in its handling of Tata Sons’ deregistration request. Advocate Mohith Reddy Pasham, representing Patilkhede, argued that deregistration would undermine regulatory accountability and set a dangerous precedent, given the critical role such regulations play in preventing economic crises like those seen with DHFL and IL&FS.
The allegations have sparked debate among financial experts, with calls for greater transparency and accountability from both Tata Sons and RBI. Stakeholders are now closely watching RBI’s response, as the decision could significantly influence financial governance and public trust in regulatory systems. Critics have emphasized the need for strict adherence to rules to ensure a stable and equitable financial ecosystem.
Post Your Comments