Tata Boards to Review Executive Disclosure Report
The boards of Tata Trusts and Tata Sons are set to meet this week to discuss a report highlighting disclosure lapses by company secretary Suprakash Mukhopadhyay. The report, authorized by Tata Sons chairman N. Chandrasekaran, raises concerns about Mukhopadhyay’s ties to Divinion Advisory Services, a wealth management firm linked to his family. This situation has the potential to create conflicts of interest within the Tata organization, prompting scrutiny from both boards.
Disclosure Lapses Under Review
The upcoming meetings of Tata Trusts and Tata Sons will focus on a report that addresses significant disclosure lapses by Suprakash Mukhopadhyay. The report was prepared by three executives from Tata Sons and indicates that Mukhopadhyay did not intentionally breach the Tata code of conduct. However, it highlights that he failed to disclose his role in facilitating investments for Divinion Advisory Services, which is owned by his family. This oversight raises questions about potential conflicts of interest, as Mukhopadhyay’s position within Tata Sons could intersect with his family’s business interests.
Tata Trusts’ executive trustee, Mehli Mistry, expressed confidence in Chairman N. Chandrasekaran’s ability to manage the situation appropriately. The report’s findings have been shared with all board members, although it remains unclear whether all directors agree with the conclusion that there was no intentional breach of conduct. The Tata code of conduct emphasizes the importance of transparency and the avoidance of conflicts of interest, which are critical for maintaining the integrity of the organization.
Investments and Conflicts of Interest
The report reveals that some Tata executives invested in Divinion after being approached by Mukhopadhyay’s daughter, who did not disclose her father’s connection to the firm. This lack of transparency raises concerns about the potential for conflicts of interest, particularly as the Tata code of conduct stipulates that employees must avoid situations where they could secure improper benefits for themselves or their family members. The failure to disclose such conflicts can lead to disciplinary actions, and listed companies like Tata Sons may face penalties from regulatory bodies for disclosure failures.
Divinion Advisory Services, established in December 2020, manages assets exceeding Rs 90 crore and is co-owned by Mukhopadhyay’s wife and two daughters. The firm employs several former Tata Group employees and affiliated professionals, further complicating the potential for conflicts of interest. The involvement of former Tata employees in Divinion’s management team raises additional questions about the integrity of investment decisions made by Tata executives.
Background on Suprakash Mukhopadhyay
Suprakash Mukhopadhyay has been with Tata since 1988 and is currently on an extension after his retirement in November 2024. In the fiscal year 2024, he earned approximately Rs 10.4 crore. His family’s Divinion Foundation Trust received CSR grants from Tata Investment Corporation, amounting to Rs 10 lakh and Rs 20 lakh for the fiscal years 2024 and 2025, respectively. Mukhopadhyay also serves as a director at the company, further intertwining his professional and family interests.
The scrutiny surrounding Mukhopadhyay’s actions highlights the importance of adherence to corporate governance standards within the Tata Group. As the largest stakeholder, Tata Trusts has the authority to influence decisions regarding this matter. The outcome of the board meetings could have significant implications for the future of both Mukhopadhyay and Divinion Advisory Services, as well as the broader Tata organization.
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