Tata Trusts is currently under the microscope due to its ongoing trustee appointments. Recent legislation in Maharashtra has placed limitations on these positions, striking a chord with the Sir Ratan Tata Trust and the Tata Education and Development Trust. This legislative shift is designed to bolster governance standards and diminish potential legal conflicts.
Tata Trusts is understood to be evaluating the status of 'perpetual trustees' at two key trusts after a recent amendment to Maharashtra's public trust law capped such appointments, raising the prospect of legal challenges to their board decisions, said people familiar with the matter.
The Maharashtra Public Trusts (Amendment) Ordinance, 2025, inserted a new Section 30A(2), capping the number of perpetual trustees at one-fourth of a trust's strength where the deed is silent or contains no specific provision for appointing a perpetual trustee. This has immediate implications for Sir Ratan Tata Trust (SRTT) and Tata Education and Development Trust (TEDT), where at least half the trustees hold perpetual status. The new rule took effect on September 1 last year, and requires all existing trusts to maintain the cap at all times.
Officials said there could be legal consequences on the validity of decisions taken by the boards of SRTT and TEDT.
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SRTT currently has five trustees and three of whom hold perpetual status - Jimmy Tata, Noel Tata and Jehangir Jehangir. Jimmy has served since 1989, while Noel and Jehangir joined in 2019.
Similarly, TEDT has three life trustees - Jehangir Mistry, Mehli Mistry and Noel Tata. Venu Srinivasan and Vijay Singh's terms come up for renewal in June.
TEDT does not hold a stake in Tata Sons but manages a substantial corpus. SRTT holds approximately 23.56% stake in Tata Sons, with Sir Dorabji Tata Trust (SDTT) holding another 27.98%.
Tata Trusts did not comment.
Meanwhile, public interest litigant advocate Katyayani Agrawal has written to SRTT, urging immediate corrective action. In her letter, Agrawal said she submitted a detailed representation to the Charity Commissioner, Maharashtra, on Saturday, flagging alleged violation of Section 30A(2) of the Maharashtra Public Trusts Act, 1950.
She stated that the trust currently has six trustees, of whom three are "perpetual/lifetime trustees," amounting to 50% of the board. According to her, this is "in direct contravention" of the statutory provision that perpetual trustees "shall not exceed one-fourth of the total number of trustees."
"The continuation of the present board composition is not only illegal but also defeats the legislative intent of preventing entrenchment of a small group of lifetime trustees and ensuring greater accountability in the management of public charitable trusts," she said.
Agrawal urged the trust to convene an urgent board meeting within the next seven days and place before the board the need to reduce the number of lifetime trustees to no more than one, in line with the law.
The amendment to Maharashtra's public trusts law has also introduced new norms for tenure-based trustees, including a five-year term limit where trust deeds do not specify duration or reappointment.
Some view these changes as part of a broader effort to strengthen governance across charitable institutions.
People aware of the situation noted that Venu Srinivasan's reappointment as a life trustee on SRTT in October was reconsidered in light of the revised legal position.
Uday Ved, partner at KNAV's global tax and advisory firm, said if trustees have the power to amend the trust deed, it may be explored whether it can be amended to name any trustee as a perpetual trustee, with the amended deed then filed with the charity commissioner.
The other option could be to increase the total number of trustees to meet the one-fourth limit, if feasible.
"The statement to the ordinance observes that there are multiple litigations on perpetual/permanent trustees vs tenure trustees before the charity commissioner and the court," Ved said. "This affects the workings of trusts, the welfare of beneficiaries and the public. This change should help address these issues and ensure smooth functioning of public trusts."
Legal experts said the amendment aims to reduce concentration of control, encourage periodic board refreshment, and strengthen accountability and succession planning.
For Tata Trusts, which together hold a 66% stake in Tata Sons, the development could prompt a broader review of trustee appointments and governance structures.
Sohil Shah, a partner at law firm Pioneer Legal, said the Maharashtra government's objective is to reduce the constant litigation that has plagued critical public trusts like the Tata Trusts. "This structural overhaul is designed to promote greater internal accountability and alleviate the administrative burden on the charity commissioner, who has historically been bogged down by years of complex, interpretative disputes," he said. "This shift effectively moves public trusts toward a more corporate-style governance structure. In the overall scheme of things, this ensures that the trust's mission is no longer sidelined by internal power struggles, allowing the trust to achieve its objectives consistently and as originally envisioned."
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