RNT's shares in Tata & other cos to go to his foundations
MUMBAI: The Bombay high court has clarified that Ratan Tata's holdings in listed and unlisted companies will go to his two foundations and not to his half-sisters and former confidant Mohini Dutta.
The clarification comes after executors of Tata's estate sought guidance from the HC on who would inherit the late industrialist's equity portfolio. The June 16 order now paves the way for the probate of Tata's will, which is expected in a month.
While there was no dispute among the executors, some of them are also beneficiaries, and other heirs of Tata's estate, originating summons were filed to address questions stemming from the effect of the fourth or final codicil on Tata's will, the HC said in its June 16 order.
The question at hand was whether Tata's share portfoshares, valued at Rs 1,684 crore, have been explicitly mentioned in his will as being bequeathed to RTEF and RTET in a 70:30 ratio. The clarification is on his non-Tata Sons shares, worth over Rs 1,547 crore, which will now go to the two foundations in a 50:50 ratio.
His non-Tata Sons shares include TCS, Tata Motors, Tata Investments, RNT Associates, Pritish Nandy Communications, as well as startups like Curefit, Avanti Finance and Electrodrive Powertrain Solutions (Electra EV).
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Additionally, he held foreign shares in Howmet Aerospace and Alcoa Corp, both listed on the NYSE.
Some of his investments have seen significant growth over the years. For example, his Rs 16.9 crore investment in Avanti Finance, a company he co-founded with economist Vijay Kelkar and Infosys chairman Nandan Nilekani in 2016, has grown to Rs 53.5 crore as of Sept 2024. lio will stand bequeathed according to clauses 4 to 8 of his will to half-sisters Shireen and Deanna Jejeebhoy, and Dutta, or whether it will be part of his residue asset and go to his two foundations, Ratan Tata Endowment Foundation (RTEF) and Ratan Tata Endowment Trust (RTET), as outlined in clause 13 of his will as substituted by the fourth codicil.
The Jejeebhoy sisters are both among the executors and beneficiaries of Tata's estate.
The order pointed out that a testator can introduce alterations to his will through codicils and past Supreme Court judgments have established that codicils will prevail over the will. Therefore, Tata's will has to be considered with alterations/additions made in the codicils.
Justice Manish Pitale said Tata's holdings in listed and unlisted shares, not specifically covered in his will, form part of his residue asset and stand bequeathed to his two foundations in equal shares.
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