Maharashtra Government Ordinance May Force Tata Trusts To Reconsider Board Member Renewals
The new ordinance doesn't allow life trusteeship to all the board members.
The Maharashtra government has enforced the Maharashtra Public Trusts (Amendment) Ordinance, 2025, effective September 2025, amending the Maharashtra Public Trusts Act, 1950. The ordinance introduces new provisions defining tenure and perpetual trustees, limiting the number of life trustees in any public trust to one-fourth of its total board.
The amendment could directly affect the board structure of Tata Trusts, where several trustees hold life appointments. Any resolution passed by the trust after the effective date that does not align with the revised provisions may need to be reviewed.
Under the new Section 30A, trustees appointed for a fixed term must step down when their tenure ends unless unanimously reappointed by the remaining trustees. If the trust deed does not specify the duration or process for reappointment, trustees can be appointed for up to five years at a time through a unanimous decision.
The ordinance also mandates that the number of perpetual trustees in a trust must not exceed one-fourth of the total board at any time. A trustee whose tenure expires may be elevated to perpetual status only to fill a vacancy created by death, insolvency, incapacity, permanent departure from India, or conviction for a crime involving moral turpitude.
The law further amends Section 18 to require proof of ownership or interest in any immovable property listed under a public trust during registration. Jurisdiction references to civil courts or judges in trust documents or decrees are now deemed references to the Charity Commissioner, who will exercise equivalent powers.
Penalties for violating provisions under Sections 66A and 66B have been increased. Breaches involving unauthorised sale or lease of immovable property or failure to reserve hospital beds for the indigent may now lead to imprisonment of up to one year or a fine of up to Rs 50,000, or both.
The ordinance also limits the filing period for revision applications before the Charity Commissioner under Section 70A to 120 days from the date of an order or finding.
In October, Tata Trusts renewed the life trusteeship of Venu Srinivasan, while Mehli Mistry was voted out on Oct. 28. These board decisions may need to be reviewed after Sept. 1, 2025, in line with the new legal framework.
Governor CP Radhakrishnan signed the ordinance on Aug. 30, 2025, stating that both houses of the state legislature were not in session and immediate action was required to regulate trust administration and reduce litigation.
