New Maharashtra Rule May Hit Tata Trusts' Trustee Plan

The Maharashtra government has amended the Public Trusts Act through an ordinance issued on September 1, 2025. The Maharashtra Public Trusts (Amendment) Ordinance, 2025, restricts lifetime trusteeships to one-fourth of a trust’s total board strength. 

As per the news reports, it also makes fixed tenures mandatory where trust deeds do not specify terms. Another change requires unanimous approval for trustee renewals, replacing the earlier system of majority voting.

Changes in Tata Trusts’ Board

Following the new rules, the Board of Trustees of the Sir Dorabji Tata Trust (SDTT) has approved the induction of Bhaskar Bhat and Neville Tata, son of Noel Tata, as trustees. Both appointments will take effect from November 12, 2025, for three years. The board also appointed Venu Srinivasan as trustee and named him Vice-Chairman for the same duration.

Tenure Adjustments Under New Law

Venu Srinivasan’s appointment term has been shortened to three years in line with the updated regulations. The earlier provision allowing lifetime trusteeships has been withdrawn, affecting several long-standing appointments within the trust. 

The changes align with the new governance framework introduced by the Maharashtra government to standardise trustee terms across public trusts.

Review of Earlier Decisions

The ordinance allows government authorities to review earlier resolutions passed by public trusts that may not comply with the new provisions. This could lead to a re-examination of recent decisions by Tata Trusts, such as the renewal of Srinivasan’s previous trusteeship and the removal of Mehli Mistry from the board.

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Conclusion

The revised law introduces uniform rules for the composition and renewal of trustees in Maharashtra’s public trusts. For Tata Trusts, this means revising its governance structure and aligning trustee terms with the state’s updated legal framework. The amendments are expected to influence similar institutions operating under the same jurisdiction.

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