Ratan Tata Leaves Majority Of His Wealth To Charity, Will's No-Contest Clause Makes It Difficult To Be Challenged: Report

A defining feature of Ratan Tata’s will is the inclusion of a no-contest clause, which strictly penalises any individual who disputes the document’s legitimacy.

Last week, the executors of Tata’s will submitted a petition with the Bombay High Court seeking to probate the document.

Source : PTI

Late industrialist Ratan Tata has left the bulk of his estimated wealth of Rs 3,800 crore to philanthropy through the Ratan Tata Endowment Foundation (RTEF) and the Ratan Tata Endowment Trust (RTET). The organisations will collectively receive a major portion of his estate, including ordinary and preference shares, reported The Economic Times.

In addition to these allocations, the businessman earmarked one-third of his financial assets, amounting to Rs 800 crore, for his half-sisters, Shireen Jejeebhoy and Deanna Jejeebhoy, the report said. Another one-third has been designated for Mohini M Dutta, a former Tata Group executive with whom Tata shared a close association.

No-Contest Clause In Ratan Tata's Will

A defining feature of Ratan Tata’s will is the inclusion of a no-contest clause, which strictly penalises any individual who disputes the document’s legitimacy. “I hereby direct that whosoever contests or challenges this last will of mine in any manner shall forego all the rights or benefits under my will and shall not get any legacy that I may have bequeathed to that person and he or she shall have no right whatsoever over any part of my estate,” the will, signed on February 23, 2022, stated.

Last week, the executors of Tata’s will submitted a petition with the Bombay High Court seeking to probate the document. This is a crucial step to validate the will.

The entire estate, comprising both movable and immovable assets spread across India and overseas, is estimated at Rs 3,900 crore. Among the most significant assets are Tata Sons shares, valued at Rs 1,684 crore, which have been distributed between RTEF (70 per cent) and RTET (30 per cent). The will stipulates that these shares cannot be sold or transferred except to existing Tata Sons shareholders.

Disputes 

A point of contention has emerged regarding the valuation of the residual estate, particularly between Dutta and the executors. While he has the option to seek clarification from the court, any direct challenge to the will’s validity could trigger the loss of his inheritance under the no-contest clause. “Challenging a will, that is questioning its validity, is different from seeking its interpretation, with the former triggering forfeiture,” the report explained citing a legal expert.

Tata’s testamentary history dates back to April 18, 1996, when he first drafted a will, later revised in November 2009. This document was eventually revoked and replaced on February 23, 2022, followed by four subsequent amendments. Witnesses to the final version included his CA Dilip Thakkar and physician Porus Kapadia.

Who Gets What In Ratan Tata's Will?

Ratan Tata’s half-brother, Jimmy Tata, is set to inherit the family’s Juhu property worth Rs 16 crore, along with jewellery. Having filed a no-objection certificate, Jimmy has signalled his acceptance of the will’s directives. The Indian Succession Act prioritises full siblings over half-siblings in inheritance matters, adding a legal framework to the distribution of assets.

Apart from Dutta and the half-sisters, Tata’s estate also includes Rs 385 crore in bank deposits, personal belongings, and collectables such as luxury watches, vintage cars, and artwork. The will specifies that if any of the beneficiaries wish to retain particular assets, the valuation must be determined through an appraisal and deducted from their respective one-third share.

Additionally, his friend Mehli Mistry has inherited Tata’s Alibaug property valued at Rs 6.16 crore, along with three guns. His diverse shareholdings in both Tata and non-Tata companies, including TCS (Rs 826 crore), Tata Motors (Rs 101 crore), and Urbanclap, have been equally allocated to RTEF and RTET.

A unique provision in the will bequeaths Tata’s land in Seychelles, valued at Rs 85 lakh, to RNT Associates Pte, a Singapore-based fund. The document also outlines the protection of the interests of R Venkatraman and Patrick McGoldrick in RNT Associates, ensuring their continued involvement as long as they wish.

The will’s executors, including his half-sisters, Mehli Mistry, and Tata Trusts trustee Darius Khambata, have each been allocated Rs 5 lakh as a token of appreciation for executing the will’s directives.