Legal scrutiny for Tata Trusts over perpetual trustee appointments
What's the story
Tata Trusts is under scrutiny over its ongoing trustee appointments. The Sir Ratan Tata Trust and the Tata Education and Development Trust are particularly affected by a new law in Maharashtra that limits such positions. The move is aimed at improving governance standards and reducing potential legal conflicts.
Legal changes
Understanding the new law's provisions
The Maharashtra Public Trusts (Amendment) Ordinance, 2025, introduced a new Section 30A(2), limiting the number of perpetual trustees to one-fourth of a trust's strength. This applies where the deed is silent or doesn't specifically provide for appointing a perpetual trustee. The rule came into effect on September 1 last year and mandates all existing trusts to maintain this cap at all times.
Trustee status
Implications for SRTT and TEDT boards
The new law could have legal implications on the validity of decisions taken by the boards of SRTT and TEDT. Currently, SRTT has five trustees, three of whom hold perpetual status. They are Jimmy Tata (trustee since 1989), Noel Tata, and Jehangir Jehangir (both joined in 2019). Similarly, TEDT has three life trustees: Jehangir Mistry, Mehli Mistry, and Noel Tata.
Legal action
PIL filed regarding 'perpetual trustees'
Public interest litigant advocate Katyayani Agrawal has written to SRTT, urging immediate corrective action. She claimed in her letter that the trust currently has six trustees, three of whom are "perpetual/lifetime trustees," making up 50% of the board. Agrawal argued this is "in direct contravention" of the statutory provision that perpetual trustees "shall not exceed one-fourth of the total number of trustees."
Meeting request
Urgent board meeting needed, says Agrawal
Agrawal urged the trust to convene an urgent board meeting within seven days and discuss reducing the number of lifetime trustees to no more than one, as per the law. The amendment 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 see these changes as part of a broader effort to strengthen governance across charitable institutions.
Expert opinion
Legal experts weigh in on potential impact
Legal experts believe 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 from Pioneer Legal said this structural overhaul is designed to promote greater internal accountability and alleviate administrative burden on the charity commissioner.