Mahindra had served as the non-executive chairman of Union Carbide India Limited at the time the incident took place in 1984 in which 3,787 people died in Bhopal (as per Govt of Madhya Pradesh). In June 2010, seven former employees of the Union Carbide subsidiary, all Indian nationals and many in their 70s, were sentenced to two years imprisonment and fined Rs. 100,000 ($1,636). All were given bail shortly after the verdict
Mahindra has been appointed by the Government of India to serve on various committees, including the Sachar Commission on Company Law & MRTP, Central Advisory Council of Industries. In 1987, he was awarded the Chevalier de l'Ordre National de la Légion d'honneur by the French Government. From 2004 to 2010, he was a Member of the Prime Minister’s Council on Trade & Industry, New Delhi.
Mahindra is a member of the Apex Advisory Council of ASSOCHAM and is the President Emeritus of the Employers’ Federation of India. He is an Honorary Fellow of the All India Management Association, New Delhi and a member of the Council of the United World Colleges (International) in the United Kingdom.