Tata Trusts may not reappoint existing permanent trustees due to a new Maharashtra law limiting lifetime trustees.
The ordinance caps perpetual trustees at one-fourth of total strength and introduces five-year terms where tenure is unspecified.
The move aims to improve governance, reduce concentration of control, and ensure periodic board refreshment.
Tata Trusts will not reappoint its existing permanent trustees after their current terms end, following legal advice tied to a recent change in Maharashtra law, according to a report by The Economic Times. The move comes after the Maharashtra Public Trusts (Amendment) Ordinance, 2025 introduced new rules that limit the number of lifetime, or “perpetual,” trustees.
The amendment adds Section 30A(2), which caps perpetual trustees at one-fourth of a trust’s total strength if the trust deed does not clearly specify such provisions. This rule will come into effect from September 1, 2025, and existing trusts must comply with it on an ongoing basis.
1 April 2026
Get the latest issue of Outlook Business
Impact on Tata Trusts
The change has significant implications for key Tata Trusts entities, including the Sir Ratan Tata Trust (SRTT) and the Tata Education and Development Trust (TEDT), where a large proportion of trustees currently hold lifetime positions.
SRTT, for instance, has five trustees, of whom three—Jimmy Tata, Noel Tata, and Jehangir Jehangir—are permanent trustees. Jimmy Tata has been in the role since 1989, while Noel Tata and Jehangir Jehangir joined in 2019.
Similarly, TEDT has three life trustees: Jehangir Mistry, Mehli Mistry, and Noel Tata. While TEDT does not hold a stake in Tata Sons, it manages a substantial corpus, making governance changes particularly relevant.
New Rules on Tenure
The ordinance also introduces rules for tenure-based trustees. In cases where trust deeds do not specify terms, trustees will now have a fixed tenure of five years, with provisions around reappointment.
Legal experts cited in the report suggest that these changes are aimed at improving governance standards across charitable trusts.
Push for Better Governance
By limiting lifetime appointments and encouraging periodic board refreshment, the amendment seeks to reduce concentration of control and strengthen accountability and succession planning. In line with the revised legal position, the reappointment of Venu Srinivasan as a life trustee on SRTT, which had been considered in October, was reportedly revisited.
Overall, the new rules mark a shift toward more structured and time-bound governance in major charitable institutions.
