Tata Trusts adopts view that Maharashtra ordinance doesn't require reappointment of existing permanent trustees

Mumbai: Tata Trusts has adopted the preliminary view, based on legal advice, that none of its existing permanent trustees need to be reappointed for a fixed term as a recent Maharashtra ordinance doesn't expressly provide for the changes it mandates to apply retrospectively, people familiar with the matter said.

The Maharashtra Public Trusts (Amendment) Ordinance, 2025, inserted a new section, 30A(2), in the legislation governing trusts. It capped the number of perpetual trustees at one-fourth of a trust's total strength if the deed is silent on the matter or contains no specific provision regarding the issue. This has immediate implications for the Sir Ratan Tata Trust (SRTT) and the Tata Education and Development Trust (TEDT), where at least half the trustees have perpetual status.

The new rule took effect on September 1, 2025, and requires existing trusts to maintain the cap at all times.

The stand of Tata Trusts is backed by a legal opinion that it sought for all the trusts under it. This comes amid heightened scrutiny of trustee appointments in the wake of Mehli Mistry's allegations of procedural breaches, selective reliance on past resolutions, disregard of binding decisions, conflicts of interest and lapses in fiduciary responsibility made earlier this month.

The Tata Trusts haven't received any query on the matter from the authorities and will respond appropriately if they are approached officially on the matter, said the people cited above.

Legal experts are divided on the scope of the ordinance. Capstone Legal managing partner Ashish K Singh said the ordinance does not state that it is confined to future appointments. He said the provisions specifically refer to existing trust deeds and tenures. That indicates legislative intent to cover past appointments, he said.

"It is a general rule that, unless specifically mentioned, any ordinance is considered to be prospective in nature," he said. "However, the text of the ordinance specifically refers to present and future appointments with respect to existing trust deeds."

Tata Trusts didn't comment.

Executives said there could be legal consequences on the validity of decisions taken by the boards of SRTT and TEDT. Tata Trusts has a 66% controlling stake in Tata Sons, the conglomerate's holding company. The bulk of that is held by SRTT (23.6%) and the Sir Dorabji Tata Trust (28%).

Mehli Mistry had sought the appointment of an administrator to oversee the affairs of the Sir Dorabji Tata Trust (SDTT). SRTT currently has five trustees, three of whom hold perpetual status-Jimmy Tata, Noel Tata and Jehangir Jehangir. Jimmy Tata has served since 1989, while the other two joined in 2019.

TEDT also has three life trustees -Jehangir Mistry, Mehli Mistry and Noel Tata. Venu Srinivasan and Vijay Singh's terms come up for renewal in June. Venu Srinivasan, appointed as a life trustee in October 2025, was reappointed in November 2025 for a three-year term as the Trust maintained that the amended law superseded any resolution passed after September 2025.

Sarvaank Associates managing partner Ankita Singh said the settled principle of statutory interpretation is that laws are presumed to operate prospectively unless made retrospective through express words or clear implication. Where an ordinance imposes term limits on positions previously held for life, courts generally favour prospective application to avoid automatic removal of existing incumbents, she said.

"If the ordinance is silent on its applicability to existing tenures, it is typically viewed as a forward-looking eligibility requirement that applies to new appointments or future vacancies, rather than a tool for the immediate displacement of those currently in office," Singh said.