A plea to the Maharashtra Charity Commissioner claims Sir Ratan Tata Trust’s board is illegal. It argues that having three lifetime trustees (50%) violates a state law capping them at 25%, demanding rectification and removal of excess trustees.
Legal Challenge Over Perpetual Trustees
In a fresh development in the on going rift within the Tata Trusts, a citizen has moved an application before the Maharashtra Charity Commissioner stating that the lifetime trusteeship held by three, out of the six trustees to the Sir Ratan Tata Trust, Noel Tata, Jimmy Tata and Jehangir Jehangir, is in blatant and continuing violation of the Section 30A(2) of the Maharashtra Public Trusts Act, 1950.
Section 30A (2), which was brought in by a 2025 amendment in the aforesaid Act, provides that if a trust deed doesn’t specifically, expressly allow for the appointment of a perpetual trustee, the number of lifetime/perpetual trustees is capped at only one-fourth of the total number of trustees in that trust. The application argues that since the Trust Deed under Sir Ratan Tata does not allow unlimited perpetual trustees, the trust must follow the legal cap set by Section 30A(2).
“The Sir Ratan Tata Trust currently has a Board of six (6) Trustees. It is a matter of public record that three (3) out of these six Trustees , i.e Mr Jimmy Tata, Mr Jehangir Jehangir and Mr Noel Tata are functioning as perpetual/lifetime Trustees. This constitutes 50% of the Board, which is double the maximum statutory limit of 25% (one-fourth) permitted under Section 30A(2)”, the application reads.
The application adds that the continuation of three perpetual trustees in the Sir Ratan Tata Trust is in clear violation of the provision and undermines the very purpose of the said amendment, which is to prevent the entrenchment of a small group of lifetime trustees, ensure greater accountability and safeguard the public charitable character of trusts. Such non-compliance renders the present composition of the Board of Trustees “illegal” and necessitates immediate rectification, the application reads.
Applicant Seeks Immediate Inquiry
The applicant seeks that the Charity Commissioner may initiate an immediate inquiry into the composition of the Board of Trustees of the Sir Ratan Tata Trust and direct the Trust to comply with Section 30A(2) by reducing the number of perpetual trustees to not more than one-fourth of the total strength, which is a maximum of one in a Board of six. Additionally, the applicant seeks that the authority may take all necessary actions, including the removal of excess perpetual trustees and the appointment of trustees in accordance with law.
Context of Other Trust Disputes
Earlier, a former trustee, Mehli Mistry, had objected to the eligibility of two trustees at the Bai Hirabai Charitable Trust, subsequent to which one trustee and the CEO Emeritus of TVs Motors, Venu Srinivasan, tendered his resignation, citing preoccupation with other businesses. Subsequently, Mehli has flagged various alleged irregularities at the Sir Dorabji Tata Trust (SDTT), stating that certain trustees received commissions and undue personal benefits by misusing their position. This application, filed by Advocate Katyayani Agrawal of SV & Co., has now brought heat to another Tata Trust — the Sir Ratan Tata Trust (SRTT). (ANI)
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