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Time of India
5 days ago
- Business
- Time of India
Tata Sons' top official gets clean chit for link with Rs 90-crore family firm
The Tata Sons board has cleared company secretary Suprakash Mukhopadhyay of any violation of the Tata code of conduct . This decision was taken on Thursday after the board reviewed an internal report on his involvement with Divinion , a financial services firm owned by his family. Sources familiar with the matter told The Times of India that the directors looked at the report in detail and accepted its findings. The report said that while Mukhopadhyay did not make the necessary disclosures to the right authority within Tata Sons, he had not intentionally broken the rules. Mukhopadhyay had come under scrutiny for either helping or trying to raise money from current and former Tata employees, as well as other people connected to Tata Sons. Tata Sons Chairman N Chandrasekaran had ordered the internal investigation after concerns were raised about a possible conflict of interest between Mukhopadhyay's connection to Divinion Advisory Services and his duties within the group. 'The board extensively discussed the report and ultimately gave Mukhopadhyay a clean chit,' sources told ToI. As per the Tata code of conduct, a conflict of interest happens when an employee gains unfair benefits for themselves or family members. If such a situation is not disclosed and later found out by management, it can result in disciplinary action. In the case of listed companies, the Securities and Exchange Board of India (Sebi) can also impose penalties for failing to disclose such matters. Some Tata executives told those writing the report that they had invested in Divinion after being approached by Mukhopadhyay's daughter through her father, ToI had reported. They said they were not aware of his link to the firm. The full report was shared with all Tata Sons board members. Live Events On Wednesday, the Tata Trusts board — which is the parent organisation of Tata Sons — had also discussed the report. It suggested that its nominated directors should take actions that are correct and fair. Divinion was set up in December 2020 and manages assets worth more than Rs 90 crore. The company is owned equally by Mukhopadhyay's wife and two daughters, each holding a 33.3% share. Divinion sponsors the Divinion Alternative India Fund (DAIF), which has launched a scheme named Divinion Dynamic Fund. The team running Divinion includes people who have worked in the Tata Group in the past or have long-standing links with it. Former TCS CFO S Mahalingam is one of Divinion's directors. Its CEO is Hormuz Bulsara, who used to be COO at Tata Asset Management. Chartered accountant T P Ostwal, whose firm has worked with Tata entities for years, is also on Divinion's board. His firm audited Divinion in FY21, and Tata Sons in FY23 and FY24. Another firm, KBJ & Associates, which audited Divinion for FY22 to FY24, also worked with some TCS subsidiaries in FY24. The Tata Sons board also reviewed the company's Q4 FY25 financial results at the same meeting. Economic Times WhatsApp channel )
Time of India
6 days ago
- Business
- Time of India
Tata Sons board gives senior executive clean chit over link with family co
MUMBAI: The board has exonerated company secretary Suprakash Mukhopadhyay of any breach of the Tata code of conduct. This comes after the board, on Thursday, reviewed an internal investigation report regarding his involvement and connection with Divinion, a financial services company owned by his family. Tired of too many ads? go ad free now The directors reviewed and accepted the report, which concluded Mukhopadhyay did not intentionally violate the code of conduct despite failing to make necessary disclosures to the appropriate authority within Tata Sons, sources familiar with the matter said. Mukhopadhyay faced scrutiny for facilitating or seeking investments from present and past Tata employees, and external parties associated with Tata Sons. , chairman of Tata Sons, had commissioned the report after concerns were raised about potential conflict of interest between Mukhopadhyay's connection to Divinion Advisory Services and his role within the group. "The board extensively discussed the report and ultimately gave Mukhopadhyay a clean chit," sources said. On Wednesday, the board of Tata Trusts, the parent of Tata Sons, also deliberated on the report and recommended that its nominated directors act in accordance with what is right. Divinion, established in Dec 2020, manages assets worth more than Rs 90 crore. Mukhopadhyay's wife and two daughters own 33.3% each in Divinion, which sponsors the Divinion Alternative India Fund. DAIF had launched a scheme called Divinion Dynamic Fund. The financial services firm's management team and board members include former employees and affiliated professionals. Former TCS CFO S Mahalingam serves as a director of Divinion, while former Tata Asset Management COO Hormuz Bulsara is the CEO. CA T P Ostwal, whose firm has had a long association with Tata entities, also sits on Divinion's board. His firm audited Divinion in FY21 and Tata Sons in FY23 and FY24. KBJ & Associates, Divinion's auditor for FY22-FY24, worked with some TCS subsidiaries in FY24. The Tata Sons board also reviewed the company's Q4 FY25 financial results, among other matters.
Time of India
28-05-2025
- Business
- Time of India
Disclosure shock: Tata reviews top officer's link to ₹90 crore family wealth firm
Tata Trusts and Tata Sons are reviewing a report on disclosure lapses by company secretary Suprakash Mukhopadhyay regarding his family's wealth management firm, Divinion Advisory Services. The report, initiated by chairman N Chandrasekaran, found no intentional breach of conduct but noted disclosure failures related to Divinion's investments from Tata-linked individuals. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads The boards of Tata Trusts and Tata Sons will meet on Wednesday and Thursday to assess a report that acknowledges disclosure lapses by Tata Sons company secretary Suprakash Mukhopadhyay . The lapses are related to his association with Divinion Advisory Services , a wealth management firm owned by his report was authorised by Tata Sons Chairman N Chandrasekaran after concerns were raised about whether Mukhopadhyay's link to Divinion could cause a conflict of interest with his responsibilities in the Tata Mistry, executive trustee at Tata Trusts, told The Times of India, 'I have complete faith and confidence in Chandra, the chairman of Tata Sons, to respond and handle such matters appropriately, as he deems fit and proper.'Three Tata Sons executives prepared the report. It found that Mukhopadhyay's actions "do not appear to be an intentional breach of the Tata code of conduct". But the report did say that he failed to disclose his role in helping Divinion seek or receive investments from former Tata employees and external parties connected with Tata to Tata's code of conduct, conflicts of interest arise when an employee gains improper benefits for themselves or family members. If such a conflict is not disclosed and is later discovered by management, it may lead to disciplinary action. For listed companies, the Securities and Exchange Board of India (Sebi) can impose penalties for disclosure Tata executives told the report's authors that they had invested in Divinion after being approached by Mukhopadhyay's daughter through her father, without being aware of his link to the firm. The report was shared with all board members of Tata the matter remains internal to Tata Sons, the board of Tata Trusts is expected to be involved, given it is the largest shareholder in Tata Sons. It is unclear whether all board members have accepted the report's view that there was no deliberate breach of said that neither Mukhopadhyay nor his family had approached him for investments in Divinion. 'I, my family members or group companies have no investments in Divinion,' he trustees and Tata Sons board members did not comment on whether they had invested in the was set up in December 2020 and now manages over ₹90 crore in assets. It is jointly owned by Mukhopadhyay's wife and two daughters. The company's management and board include several former Tata Group employees and related accountant T P Ostwal, who has had long-standing professional links with Tata firms, is a director of Divinion. His firm audited Divinion in FY21 and also audited Tata Sons in FY23 and FY24. Divinion's current auditor, KBJ & Associates, audited some TCS subsidiaries in joined Tata in 1988 and retired in November 2024. He continues in his role on an extension and earned about ₹10.4 crore in FY24. The Divinion Foundation Trust, which is run by his family, received ₹10 lakh and ₹20 lakh in corporate social responsibility grants from Tata Investment Corporation in FY24 and FY25. Mukhopadhyay is a director at the company.(With TOI inputs)
Time of India
28-05-2025
- Business
- Time of India
Tata boards to study report on executive's disclosures on family co
TATA MUMBAI: The boards of Tata Trusts and Tata Sons will convene on Wednesday and Thursday to evaluate, among other things, a report acknowledging disclosure lapses by Tata Sons company secretary Suprakash Mukhopadhyay about his involvement and association with a wealth management firm owned by his family. The report, authorised by Tata Sons chairman N Chandrasekaran , follows concerns raised about Mukhopadhyay's connection to Divinion Advisory Services, potentially creating conflicts of interest with his role in the Tata system. Tata Trusts' executive trustee Mehli Mistry told TOI, "I have complete faith and confidence in Chandra, the chairman of Tata Sons, to respond and handle such matters appropriately, as he deems fit and proper." Prepared by three Tata Sons executives, the report has concluded that Mukhopadhyay's actions "do not appear to be an intentional breach of the Tata code of conduct". It, however, said Mukhopadhyay failed to inform Tata Sons about his role in facilitating or seeking investments for Divinion from former Tata employees and external parties associated with Tata Sons. The code of conduct states that conflicts of interest arise when employees secure improper benefits for themselves or family members. Non-disclosure of such conflicts, once discovered by management, could result in disciplinary actions. Listed companies face penalties from Sebi for disclosure failures. Some Tata executives confirmed investing in Divinion after being approached by Mukhopadhyay's daughter through her father, without knowing his connection to the firm. The report was shared with all Tata Sons board members. Though this is an internal Tata Sons matter, Tata Trusts as the largest stakeholder, has the heft to weigh in. It is unclear if all directors have accepted the verdict of "no intentional breach". Mistry said that neither Mukhopadhyay nor his family sought investments in Divinion from him. "I, my family members or group companies have no investments in Divinion." Other trustees and Tata Sons board members remained silent about their investment status in the fund. Divinion, established in Dec 2020, manages assets worth more than Rs 90 crore. It is owned equally by Mukhopadhyay's wife and two daughters. The firm's management team and board members include former Tata Group employees and affiliated professionals. CA T P Ostwal, whose firm has had a long association with Tata entities, is a director of Divinion. His firm audited Divinion in FY21 and Tata Sons in FY23 and FY24. KBJ & Associates, Divinion's auditor for FY22-FY24, worked with some TCS subsidiaries in FY24. Mukhopadhyay began at Tata in 1988. He retired in Nov 2024 and is now on extension. In FY24, he earned about Rs 10.4 crore. His family's Divinion Foundation Trust received Rs 10 lakh and Rs 20 lakh in CSR grants from Tata Investment Corporation in FY24 and FY25. Mukhopadhyay is a director at the company. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Mint
29-04-2025
- Business
- Mint
Tata Sons concludes probe into a top executive. Here's the verdict
A Tata Sons committee has concluded that group company secretary Suprakash Mukhopadhyay had failed to make the requisite disclosures about a wealth management firm run by his family members. A report of the three-member internal committee listed the lapses of Mukhopadhyay, a close aide to chairman Natarajan Chandrasekaran, but stopped short of terming Mukhopadhyay guilty, reasoning that his action was not deliberate. The report, which was submitted to Chandrasekaran last week, was shared by him with the other members of the nine-member Tata Sons board. " Prima facie , there are lapses on Mr Mukhopadhyay's part in making adequate and timely disclosure to the competent authority in Tata Sons about (a) his involvement and relationship with the activities of Divinion, (b) him making, or facilitating, solicitations of any kind from former employees of Tata companies (particularly where he held a position of authority and influence)or from any external advisors or professionals working for Tata Sons with whom he would have had other official engagements and interactions due to his role in the company, and (c) any transactions between Divinion and any Tata group entity of which he is a director/Trustee (e.g. the CSR (corporate social responsibility) grant from Tata Investment to the Divinion Trust or opening of the Tata STRIVE centre within the premises of Divinion Trust)," concluded the three-member committee. "However, there does not appear to be any intentional breach of Tata Code of Conduct or mala fide intent on his part to make a personal gain by compromising the interests of his employer entity (Tata Sons) or of the relevant Tata Group entities named in the news reports," said the report. Also read | Tata Sons exec's kin own firm once listed as group company The three-member committee comprised Nupur Mallick, the head of Tata Sons human resources, Eruch N. Kapadia, a finance executive at Tata Sons, and Sidharth Sharma, the general counsel at Tata Group. Emails sent to Tata Sons and Mukhopadhyay remained unanswered. The report did not identify the solicitation attributed to Mukhopadhyay. However, during the investigation, Mukhopadhyay told the three-member committee that he used ₹ 20 lakh in CSR funds from Tata Investment Corp. last year to purchase a property from his in-laws. ' ₹ 20 lacs in FY25 towards cost of premises purchased by the Trust (Divinion Foundation Trust) to establish a school of learning for various activities of the Trust, at a cost of ₹ 1.33 crore," said the report. 'On enquiry, Mr S. Mukhopadhyay has now informed that the above-mentioned premises were purchased by the Trust in Kolkata from the parents of Mrs Paromita Mukhopadhyay," said the report. Tata Investment Corp.'s FY24 report revealed a ₹ 10 lakh CSR contribution to Divinion Foundation Trust, which counts Mukhopadhyay's family members as trustees. Read this | N. Chandrasekaran changed Tata Capital. Now, the company is prepping for an IPO 'Four things are clear from the findings of this report," an executive privy to the development said on the condition of anonymity. 'Firstly, Mukho (Mukhopadhyay) violated the Tata Code of Conduct as he failed to make the requisite disclosures. Secondly, he did solicit funds and asked former Tata Group executives to join Divinion. Third, the question of CSR funds given to Divinion and his point of recusing himself when the Tata Group companies gave funds to Divinion does not mean much. Finally, the report states that there were no malicious intentions." 'The question is now if the Tata Sons board will accept this report," the executive added. "Good corporate governance principle requires that a competent, independent external agency thoroughly investigates any matters relating to key management personnel," said V. Balakrishnan, a former chief financial officer at Infosys Ltd and founder of Exfinity Ventures, a venture capital fund. "It is in the domain of independent directors on the board to ensure an independent investigation is done and appropriate action taken." The report also clarified why Divinion Advisory Services featured as a Tata Group company in 2022. Also read | India's valuation edge over China and other EMs may face pressure, warns Tata AMC's Singh In 2022, Tata Pension Management Ltd listed Divinion as one of 473 'Tata Group and sponsor' companies. Tata Pension Management is backed by Tata Asset Management Ltd, where Mukhopadhyay is a director. 'Tata AMC used to consider the following factors while preparing the list of group cos of sponsor, including associates: TSPL (Tata Sons Pvt. Ltd) list of subsidiaries as sourced from Tata Sons (and) companies in which AMC directors and/or their relatives were directors/members as sourced from their MBP-1," Shailly Kedia, head of legal and secretarial at Tata Asset Management, wrote in an email dated 17 April, to Kapadia, one of the three members of the committee. MBP-1 is a specific form number designated by the corporate affairs ministry. 'Hence the name of Divinion Advisory Services Pvt. Ltd was reflecting in the AMC list as the relative of one of the AMC directors' was member in it. In 2023, the process got amended and companies in which relatives of AMC directors were directors/members were excluded," said Kedia. Tata Sons began the probe within days of Mint reporting in its edition dated 15 April whether Mukhopadhyay, 61, made disclosures about Divinion, a firm wholly owned by his family members, and whether his solicitation to former Tata Group executives to join Divinion or make investments with it breached the Tata Code of Conduct. Read this | Tata Sons goes debt-free as it seeks listing exemption According to Divinion's filings with the ministry of corporate affairs, Mukhopadhyay's daughter Shreemoyee and mother Paromita owned 50% each of the company when it was founded. In FY24, Shreenandini, Suprakash's youngest daughter, joined as a shareholder. Paromita, Shreemoyee and Shreenandini owned 100% of Divinion at the end of March 2024. Shreemoyee resigned as chief executive officer in June 2023 and director in March 2024. According to the latest share ownership information, Paromita, jointly with her two daughters, owned 33.34%, while each of the sisters, jointly with the other sister and mother, owned 33.3% each. In 2021, Divinion Advisory Services set up Divinion Alternative India Fund, a Sebi-registered Alternative India fund that invests in equities. Divinion's revenue jumped from ₹ 40.9 lakh in 2023 to ₹ 1.94 crore in 2024. It reported a net profit of ₹ 43.72 lakh last year compared to a loss of ₹ 1,630 in 2023. Mukhopadhyay joined the Tata Group in 1988, before moving to Tata Sons in 2000. He moved to TCS in 2008, a year after Chandrasekaran took over as its COO. After steering TCS as CEO between 2009 and February 2017, Chandrasekaran was entrusted as the chairman of Tata Sons. The first executive that Chandrasekaran picked from the Tata Group was Mukhopadhyay, who joined Tata Sons in April 2017. And read | Tata Trusts continues to oppose transfer of Tata Sons shares owned by SP Group Tata Sons, the principal holding company of the Tata Group, owns shares in 26 listed companies, including Tata Motors Ltd, Tata Steel Ltd, and Tata Consultancy Services Ltd. At the end of March 2024, it had a cumulative revenue of over $165 billion. Tata Sons is owned 65.9% by Tata Trusts, 12.87% by half a dozen Tata Group companies, and 18.4% by the Mistry family.
