In a significant regulatory compliance move, the Tata Trusts have revised the tenure of TVS Motor Corp. Chairman Emeritus Venu Srinivasan from a lifetime appointment to a three-year term. This decision comes as a direct response to the Maharashtra Public Trusts (Amendment) Ordinance, 2025, which limits the number of permanent trustees in any trust.
New Regulatory Framework Forces Change
The Maharashtra government issued the landmark ordinance on 30 August 2025, establishing new guidelines for trust management across the state. The regulation specifically stipulates that only one-fourth of trustees at any organization can hold permanent positions. This measure aims to bring clarity to trust instruments and reduce litigation before the Charity Commissioner and courts.
During a board meeting held on Tuesday, 11 November 2025, the Tata Trusts leadership made the crucial decision to align with these legal requirements. The trust announced that Srinivasan would serve a three-year term effective from 12 November 2025, simultaneously designating him as vice chairman of the Sir Dorabji Tata Trust.
Implications for Tata Trusts Governance
The ordinance has substantial implications for the Tata Trusts, which currently operates with six trustees. According to legal experts, since one-fourth of six trustees amounts to less than two individuals, the trust can now have only one permanent trustee under the new rules.
The trust's composition includes chairman Noel Tata, Venu Srinivasan, retired defence secretary Vijay Singh, Mumbai-based lawyer Darius Khambata, Citibank India's former CEO Pramit Jhaveri, and Pune-based philanthropist Jehangir H.C. Jehangir. Notably, Noel Tata was appointed as a permanent trustee for life in January, while Srinivasan received his lifetime appointment in October.
Senior Supreme Court lawyer H.P. Ranina provided crucial context, explaining that the original Tata Trusts deed did not contain provisions for lifetime trustees. It was only on 17 October 2024 that the then seven trustees unanimously passed a resolution to make trustees whose terms were ending into permanent members.
Legal Perspectives and Future Options
Legal experts have clarified that the new regulations took effect from 1 September 2025, rendering the decision to appoint Venu Srinivasan as a permanent trustee null and void. Rohit Jain, managing partner at Singhania & Co., emphasized that trusts with silent instruments regarding perpetual trustees must either reduce such trustees to one-fourth or convert them to tenure trustees with reappointment cycles.
The ordinance itself clearly states that if a trust's instrument doesn't specify provisions for perpetual trustees, then regardless of previous decisions or trust usage, the number of perpetual trustees cannot exceed one-fourth of the total. This provision aims to standardize trust governance and prevent operational disruptions that could affect beneficiaries and public welfare.
Yash Joglekar, counsel at Bombay High Court, noted that trusts have the option to challenge the ordinance's validity in the high court. However, as an ordinance represents a temporary measure, it requires ratification by the legislature within six weeks of its first sitting after reassembly, with a maximum effective lifespan of six months plus six weeks.
The Tata Trusts, which own 65.9% of Tata Sons Pvt. Ltd., the holding company of the Tata group, continue to navigate these regulatory changes while maintaining their philanthropic mission. The two principal trusts, Sir Ratan Tata Trust and Sir Dorabji Tata Trust, hold 27.98% and 23.56% of Tata Sons respectively, underscoring the significance of proper governance in these entities.
