Tata trusts on Friday were summoned by the Income Tax Department to explain the misuse of tax exemption that is meant for charities, Business Standard reported. According to the business daily, the move followed a Comptroller and Auditor General report from 2013, which showed the trusts earning large profits instead of using money for charitable purposes.

However, according to Economic Times, two trusts were also asked to explain their investments after they were flagged by Parliament’s Public Accounts Committee in 2015. The Income Tax Department had reportedly given ‘irregular’ exemption to Jamshetji Tata Trust and Navajbai Ratan Tata Trust involving tax impact of Rs 1,066.95 crore.

The CAG report was said to have stated that the Ratan Tata-chaired trusts spent less money on charitable purposes, accumulating cash as surplus and then using it to create fixed assets for earning more profit or to transfer the money to other trusts. Twenty-two trusts reportedly earned surpluses of Rs 819 crore, ranging from 35.7% to 84.8% of their total income before the 2013 CAG report.

The I-T department’s notice comes as Tata Sons is embroiled in a huge controversy following its ousting of Chairman Cyrus Mistry. On October 24, Tata Sons had replaced Mistry with Ratan Tata as its interim chairperson. The group had also filed caveats as preventive measure, “fearing legal action” by Mistry, who was appointed the chairman of the conglomerate in 2012. Mistry’s family’s Shapoorji Pallonji Group owns around one-fifth of Tata Sons. In a letter to his employees, Ratan Tata had said the decision was “absolutely necessary” for the group’s success.