Tata Trusts must reduce life trustees at Sir Ratan Tata Trust to comply with Maharashtra law

Tata Trusts, a major shareholder in Tata Sons, is under pressure to comply with the Maharashtra Public Trusts Act, 1950, by reducing the number of life trustees at Sir Ratan Tata Trust, a move that could see two prominent trustees step down.

Life trusteeship is in focus again at Tata Trusts with the authorities seeking immediate compliance with the rulebook, failing which the Charity Commissioner of Maharashtra could step in to take action.

Tata Trusts, which owns about 66 per cent in Tata Sons, the holding company of the salt-to-software conglomerate, has to convene a meeting soon to rectify the violations — implying two of the three life trustees must step down at Sir Ratan Tata Trust, it is learnt.

Compliance Mandate for Sir Ratan Tata Trust

According to Section 30A(2) of the Maharashtra Public Trusts Act, 1950, the number of perpetual trustees at Sir Ratan Tata Trust (one of the main shareholders of Tata Sons), "shall not exceed one-fourth of the total number of trustees."

Currently, out of the six trustees, three are perpetual or life trustees.

Compliance with Section 30A(2) would mean two out of the three life trustees would need to seek reappointment with a fixed tenure through a process of voting by trustees, according to legal documents reviewed by Business Standard.

The three trustees for life are Jimmy N Tata (brother of late Ratan Tata), Tata Trusts chairman Noel Tata and Jehangir HC.

Of this lot, Jimmy N Tata was appointed life trustee way back in May 1989, while Noel Tata and Jehangir HC were inducted as life trustees some 30 years later, in February 2019.

The other trustees at Sir Ratan Tata Trust are Venu Srinivasan, Vijay Singh and Darius Khambata—all on fixed tenure.

While the legal opinion provided to the group by Justice Krishna Murari, former Supreme Court judge, does not mention who among the three should step down, the ‘’last in, first out’’ principle may apply, according to experts.

Legal Scrutiny and Potential Intervention

In a communication to the trustees, public interest lawyer Katyayani Agrawal wrote that a detailed representation had been sent to the Charity Commissioner, Maharashtra, on April 18, pointing out that Section 30A(2) of the Maharashtra Public Trusts Act, 1950, was being violated at Sir Ratan Tata Trust.

At present, 50 per cent of the total members are life trustees, whereas it should be 25 per cent, people who have seen the communication stressed.

The Trust Deed does not contain any provision that overrides this mandatory legal requirement introduced by the Amendment to the Act in September 2025, the letter said.

"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," according to the lawyer’s note that has asked Tata Trusts to immediately (within seven days) convene a board meeting of the Sir Ratan Tata Trust in view of the "serious regulatory proceedings that the Charity Commissioner has been requested to initiate."

The board has to rectify the violation of Section 30A(2) by reducing the number of lifetime trustees to not more than one or one-fourth of the total, to comply with the Maharashtra Public Trusts Act, 1950.

Commenting on the matter, Justice T Raja, former chief justice of Madras high court, told Business Standard that the compliance must happen immediately before the Charity Commissioner’s office, which has enormous powers, intervenes.

Highlighting that the purpose of Section 30A (2) is far-reaching, Justice Raja said "it should not be mishandled".

Ensuring Governance and Accountability

Quick corrective action by the board would demonstrate the Trust’s commitment to the highest standards of governance and legal compliance, advocate Agrawala’s communication to the trustees noted.

And such an action would also prevent the need for external regulatory intervention, "thereby safeguarding the reputation and public charitable character of this historic institution", the letter said.

Last year, Sir Dorabji Tata Trust, another core shareholder of Tata Sons, witnessed upheaval at the time of reappointment of trustees.

In that process, Mehli Mistry, a close confidant of Ratan Tata, was ousted as a majority of trustees voted against his reappointment.

To put things in perspective, in September 2025, Section 30A(2) was introduced into the Maharashtra Public Trust Act, 1950, to prescribe a statutory cap on the number of trustees who may hold office for life.

The provision stipulates that, "notwithstanding any usage of the trust or any prior decision of the trustees, the number of life trustees shall not exceed 25 per cent of the total number of trustees at any point in time".

According to the legal opinion obtained from Justice Murari, the structure and language of Section 30A(2) indicate that it is not merely enabling in nature, but imposes a binding restriction.

The objective is to ensure a degree of rotation and accountability in the governance of public trusts, the opinion added.