Tata Trusts Moves to Amend Bai Hirabai Trust; Zoroastrian-Only Rule Under Review as Eligibility Row Deepens

Tata Trusts has decided to approach the charity commissioner to amend the rules governing the Bai Hirabai Jamsetji Tata Navsari Charitable Institution. The key change being sought is the removal of a clause that currently restricts trustee positions to Zoroastrians only.

Tata Trusts Seeks Rule Change in Bai Hirabai Trust to Remove Zoroastrian-Only Clause

The decision was taken during a recent board meeting, with the Trusts stating that the move aims to correct inconsistencies in the original 1923 trust deed and align governance rules with its broader values of inclusivity.

Why Tata Trusts Wants to Change the Bai Hirabai Trust Deed

The proposed amendment comes after legal questions were raised about whether the current board complies with the original eligibility criteria. The existing trust deed reportedly requires trustees to be practising Zoroastrians and residents of Mumbai or Navsari.

A petition filed by former trustee Mehli Mistry has challenged the validity of recent appointments, claiming that at least two current members do not meet these conditions. This has triggered a broader review of the trust's rules.

Legal Challenge Raises Questions Over Board Decisions

The dispute has taken a sharper turn, with legal experts arguing that any attempt to amend the deed may indicate that earlier appointments were not in line with the original rules. Some have even questioned whether decisions taken by the current board could face legal scrutiny if the appointments are found invalid.

There is also debate over whether the existing trustees have the authority to initiate changes to the trust deed while their own eligibility is under challenge.

The controversy has already led to visible cracks within the board. Venu Srinivasan, chairman emeritus of TVS Motor, stepped down from his position following the dispute. He later indicated that his resignation came after a request from the Trusts' management.

Another trustee, Vijay Singh, reportedly chose not to attend the key board meeting and declined to step down, highlighting internal differences over how the issue is being handled.

The situation has been further complicated by differing legal interpretations. An opinion by former Chief Justice of India M.H. Kania reportedly stated that restrictions based on religion or ethnicity may not be legally valid.

This view is based on a codicil to the will of Sir Ratan Tata, which suggests that trustee appointments should not be limited by religion, race or background. The codicil also links trustee positions between related trusts, adding another layer to the governance structure.

Role of Sir Ratan Tata Trust and Asset Structure

The Sir Ratan Tata Trust plays a connected role in the governance framework, as its trustees are linked to the Bai Hirabai institution. While the Sir Ratan Tata Trust holds stakes in Tata Sons, the Bai Hirabai trust primarily manages properties in Mumbai and Navsari that were originally endowed by Sir Ratan Tata.

This distinction is important, as the dispute is centred on governance rules rather than financial ownership within the Tata Group.

What Happens Next in the Tata Trusts Governance Dispute

The matter will now depend on how the charity commissioner interprets multiple factors, including the original 1923 trust deed, the codicil to Sir Ratan Tata's will, and provisions under the Maharashtra Public Trusts Act.

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