Maharashtra Moves to Amend Public Trusts Act

On 8th December 2025, the Maharashtra government introduced a Bill to amend the Maharashtra Public Trusts Act, aiming to standardise trust administration, prevent litigation, and strengthen oversight and accountability among trustees.

The Bill introduces a new Section 30A to provide clear guidelines for appointing tenure trustees and perpetual trustees in cases where trust instruments do not specify the nature or duration of such appointments.
The definition of “trustee” under Section 2(18) will be amended to formally classify trustees into tenure trustees and perpetual trustees, based on their period of appointment, in order to remove longstanding ambiguity in trust governance.
The Bill explains that the absence of clarity regarding the appointment and tenure of trustees has historically triggered multiple litigations before the Charity Commissioner and courts, disrupting trust operations and affecting beneficiaries.
A cap has been introduced requiring that perpetual trustees may not exceed 25% of the total Board strength, thereby ensuring more democratic and time-bound participation in trust management.
Where a trust deed does not specify a trustee’s tenure, the individual will automatically be treated as a tenure trustee, typically appointed for a term of up to five years, strengthening periodic review and accountability.