The Maharashtra Public Trusts Act, 1950

[14th August, 1994.]

In the State of Maharashtra, the legislation governing Public Trust is The

Maharashtra Public Trusts Act (MPT Act). The title of the Act has been changed from
'The Bombay Public Trusts Act, 1950' to 'The Maharashtra Public Trusts Act' with
retrospective effect from 1st May, 1960 by the Maharashtra

Index
The Maharashtra Public Trusts Act, 1950

Chapter I - Preliminary

Chapter II - Establishment

Chapter III - Charitable Purposes and Validity of Certain Public Trusts

Chapter IV - Registration of Public Trusts

Chapter V - Budget, Accounts and Audit

Chapter V - A - Powers and Duties of, and Restriction on, Trustees

Chapter VI - Control

Chapter VII - A - Special Provision as Respects Religious and Charitable ...

Chapter VIII - Public Trust Administration Fund

Chapter IX - * * *

Chapter X - Offences and Penalties

Chapter XI - Functions of Charity Commissioner, Procedure, Jurisdiction and ...

Chapter XII - Miscellaneous

SCHEDULE A

SCHEDULE AA

Schedule B

1
 The Maharashtra Public Trusts Act, 1950

An Act to regulate and to make better provision for the administration of public religious and
charitable trusts in the State of Bombay. WHEREAS it is expedient to regulate and to make
better provision for the administration of public religious and charitable trusts in the State of
Bombay; It is hereby enacted as follows: —

Chapter I Preliminary

1. Short title, application and commencement.—

(1) This Act may be called the Maharashtra Public Trusts Act. (2) It shall extend to the
whole of the State of Maharashtra. (3) This Act shall come into force at once; but the
provisions thereof shall apply to a public trust or any class of public trusts on the dates
specified in the notification under sub-section (4). (4) The State Government may, by
notification in the Official Gazette, specify the date on which the provisions of this Act shall
apply to any public trust or any class of public trusts; and different dates may be specified
for such trusts in different areas: Provided that the State Government may also by a like
notification direct that from the date specified therein any public trust or class of public
trusts shall be exempt from all or any of the provisions of this Act, subject to such
conditions as may be specified in the notification: Provided further that before a notification
of such application or exemption is published a draft thereof shall be published in the
Official Gazette and in such other manner as may be prescribed for the information of
persons likely to be affected thereby together with a notice specifying the date on or before
which any objections or suggestions shall be received and the date on or after which the
draft shall be taken into consideration.

2. Definitions.—

In this Act unless there is anything repugnant in the subject or context,— (1) * * * (2)
“Assistant Charity Commissioner” means an Assistant Charity Commissioner appointed under
section 5; (3) “Charity Commissioner” means the Charity Commissioner appointed under
section 3; (4) “Court” means in the Greater Bombay, the City Civil Court and elsewhere, the
District Court; (5) “Deputy Charity Commissioner” means the Deputy Charity Commissioner
appointed under section 5; (5A) “Director of Accounts” and “Assistant Director of Accounts”
means respectively the Director of Accounts and Assistant Director of Accounts appointed
under section 6 of this Act; (6) “Hindu” includes Jain, Buddhist and Sikh; (7) “Inspector”

2
means an Inspector appointed under section 6; (7A) “instrument of trust” means the
instrument by which the trust is created by the author of the trust and includes any scheme
framed by a competent authority or any memorandum of association and rules and
regulations of a society registered under the Societies Registration Act, 1860, in its
application to the State of Maharashtra; (7B) “Joint Charity Commissioner” means a Joint
Charity Commissioner appointed under section 3A. (8) “manager” means any person (other
than a trustee) who for the time being either alone or in association with some other
person or persons administers the trust property of any public trust and includes— (a) in the
case of a math, the head of such math, (b) in the case of a wakf, a mutawalli of such
wakf, (c) in the case of a society registered under the Societies Registration Act, 1860, its
governing body, whether or not the property of the society is vested in a trustee; (9) “math”
means an institution for the promotion of the Hindu religion presided over by a person
whose duty it is to engage himself in imparting religious instruction or rendering spiritual
service to a body of disciples or who exercises or claims to exercise headship over such a
body and includes places of religious worship or instruction which are appurtenant to the
institution; (10) “person having interest” includes— (a) in the case of a temple, person who
is entitled to attend at or is in the habit of attending the performance of worship or service
in the temple, or who is entitled to partake or is in that habit of partaking in the distribution
of gifts thereof, (b) in the case of a math, a disciple of the math or a person of the
religious persuasion to which the math belongs, (c) in the case of a wakf, a person who is
entitled to receive any pecuniary or other benefit from the wakf and includes a person who
has right to worship or to perform any religious rite in a mosque, idgah, imambara, dargah,
maqbara or other religious institution connected with the wakf or to participate in any
religious or charitable institution under the wakf, (d) in the case of a society registerd under
the Societies Registration Act, 1860, any member of such society, and (e) in the case of
any other public trust, any trustee or beneficiary, (11) “prescribed” means prescribed by
rules; (12) “public securities” means— (a) securities of the Central Government or any State
Governments, (b) stocks, debentures or shares in Railway or other companies, the interest
or dividend on which has been guaranteed by the Central or any State Government, (c)
debentures or other securities for money issued by or on behalf of any local authority in
exercise of the powers conferred by an Act of the Central or State Legislature, (d) a
security expressly authorized by an order which the State Government makes in this behalf;
(13) “public trust” means an express or constructive trust for either a public religious or
charitable purpose or both and includes a temple, a math, a wakf, church, synagogue,
agiary or other place of public religious worship a dharmada or any other religious or
charitable endowment and a society formed either for a religious or charitable purpose or

3
for both and registered under the Societies Registration Act, 1860; (14) “region” or “sub-
region” means the areas designated as such and for which a Public Trusts Registration
Office has been established under this Act; (15) “rules” means rules made under this Act;
(16) * * * (17) “Temple” means a place by whatever designation known and used as a
place of public religious worship and dedicated to or for the benefit of or used as of right
by the Hindu community or any section thereof as a place of public religious worship; (18)
“trustee” means a person in whom either alone or in association with other persons, the
trust property is vested and includes a manager; (19) “wakf ” means a permanent
dedication by a person professing Islam of any moveable or immoveable property for any
purpose recognized by the Muslim law as pious, religious or charitable and includes a wakf
by user and grants (including mashrut-ul-khidmat) for any purpose recognised by the Muslim
law as pious, religious or charitable and a wakf-alal-aulad to theextent to which the property
is dedicated for any purpose so recognized;but does not include a wakf such as is
described in section 3 of the MussalmanWakf Validating Act, 1913, under which any benefit
is for the time being claimable for himself by the person by whom the wakf was created or
by any member of his family or descendants; (20) words and expressions used but not
defined in this Act and defined in the Indian Trusts Act, 1882, shall have the meanings
assigned to them in that Act.
2A. * * *

Chapter II Establishment

3. Charity Commissioner.—

The State Government may, by notification in the Official Gazette, appoint an Officer to be
called the Charity Commissioner, who shall exercise such powers and shall perform such
duties and functions as are conferred by or under the provisions of this Act and shall,
subject to such general or special orders as the State Government may pass, superintend
the administrationand carry out the provisions of this Act throughout the State.
3A. Joint Charity Commissioners.¬––

(1) The State Government may, by notification in the Official Gazette, appoint one or more
officers to be called Joint Charity Commissioners, who shall subject to the control of the
Charity Commissioner and such general or special orders as the State Government may
pass, exercise all or any of the powers and perform all or any of the duties and functions,
of the Charity Commissioner. (2) The State Government may, by general or special order,
declare a Joint Charity Commissioner to be the regional head to superintended, subject to

4
the control of the Charity Commissioner, the administration in one or more regions or sub-
regions, as may be specified in such order.
4. Qualifications for appointment of Charity Commissioner and Joint Charity
Commissioner.––

A person to be appointed as the Charity Commissioner or a Joint Charity Commissioner

shall be one–– (a) who is holding or has held a judicial office not lower in rank than that of
a District Judge or a Judge of the Bombay City Civil Court, or the Chief Judge of the
Presidency Small Cause Court:Provided that a person to be appointed as a Joint Charity
Commissioner may be one who is holding or has held a judicial office not lower in rank
than that of an Assistant Judge or an Additional Chief Judge of the Court of Small Causes,
Bombay or who has held the office of a Deputy Charity Commissioner for not less than five
years; or (b) who has been for not less than ten years— (i) an advocate enrolled under the
Indian Bar Councils Act, 1926, or the Advocates Act, 1961, (ii) an attorney of a High Court,
or (iii) a pleader enrolled under the Bombay Pleaders Act, 1920.
5. Deputy and Assistant Charity Commissioners.––

(1) The State Government may also appoint such number of Deputy and Assistant Charity
Commissioner in the office of the Charity Commissioner or for such regions or sub-regions
or for such public trust or such class of public trusts as may be deemed necessary. (2) A
person to be appointed as a Deputy Charity Commissioner shall be one— (a) who is holding
or has held a judicial office not lower in rank than that of a Civil Judge (Senior Division) or
Judge of the Court of Small Causes of Bombay or any office which in the opinion of the
State Government is an equivalent office, or, (b) who has been for not less than eight
years,— (i) an advocate enrolled under the Indian Bar Councils Act, 1926, or the Advocates
Act, 1961, (ii) an attorney of a High Court, or (iii) a pleader enrolled under the Bombay
Pleaders Act, 1920, or (c) who has held the office of an Assistant Charity Commissioner for
not less than five years. (2A) A person to be appointed as an Assistant Charity
Commissioner shall be a person— (a) who is holding or has held a judicial office not lower
in rank than that of a Civil Judge (Junior Division) for not less than one year, or (b) who
has been for not less than four years— (i) an advocate enrolled under the Indian Bar
Councils Act, 1926, or the Advocates Act, 1961. (ii) an attorney of a High Court, or (iii) a
pleader enrolled under the Bombay Pleaders Act, 1920, or (c) who holds a degree in law of
any University in India established by law or any other University recognized by the State
Government in this behalf and has worked in the Charity Organization after obtaining such
degree for not less than five years in an office not lower in rank of Superintendent or Legal
Assistant. (3) The Deputy and Assistant Charity Commissioner shall exercise such powers

5
and perform such duties and functions as may be provided by or under the provisions of
this Act.
6. Subordinate Officers.––

For the purpose of carrying out the provisions of this Act, the State Government may
appoint the Director of Accounts and Assistant Directors of Accounts possessing the
prescribed qualifications, Inspectors and other subordinate officers and assign to them such
powers, duties and functions under this Act, as may be deemed necessary:Provided that the
State Government may, by general or special order and subject to such conditions as it
deems fit to impose, delegate to the Charity Commissioner, the Joint Charity Commissioner
and the Deputy and Assistant Charity Commissioner powers to appoint subordinate officers
and servants as may be specified in the order.

6A. Charity Commissioner and other officers to be servants of State

Government.––

The Charity Commissioner, the Joint Charity Commissioner, the Deputy and Assistant
Charity Commissioner, the Director of Accounts, the Assistant Directors of Accounts, the
Inspectors and other subordinate officers and servants appointed under this Act shall be the
servants of the State Government and they shall draw their pay and allowances from the
Consolidated Fund of the State. The conditions of service of such officers shall be such as
may be determined by the State Government.

6B. Cost of pay, pension, etc. of Charity Commissioner, etc., to be paid to

Government out of the Public Trusts Administration Fund.––

There shall be paid every year out of the Public Trusts Administration Fund to the State
Government such cost as the State Government may determine on account of the pay,
pension, leave and other allowances of the Charity Commissioner, the Joint Charity
Commissioner, the Deputy and Assistant Charity Commissioners, the Director of Accounts,
the Assistant Directors and Accounts, the Inspectors and other subordinate officers and
servants appointed under the Act.
7. * * *

8. Delegation.––

6
 (1) The State Government may delegate any of its own powers or functions under this Act
to the Charity Commissioner or any other officer subject to such conditions as it thinks fit.
(2) The State Government may also direct that any powers exercisable and duties or
functions to be performed by any particular officer appointed under this Act may be
performed by any other officer subject to such conditions as it thinks fit.

Chapter III Charitable Purposes and Validity of Certain Public Trusts

9. Charitable purposes.––

[1] For the purposes of this Act, a charitable purpose includes –– (1) relief of poverty or
distress. (2) education. (3) medical relief. (3A) provisions or facilities for recreation or other
leisure time occupation (including assistance for such provision) , if the facilities are
provided in the interest of social welfare and public benefit, and (4) the advancement of any
other object of general public utility, but does not include a purpose which relates–– (a) * *
* (b) exclusively to religious teaching or worship.[2] The requirement of this section that the
facilities are provided in the interest of social welfare shall not be treated as satisfied,
unless — (a) the facilities are provided with the object of improving the conditions of life for
the persons for whom the facilities are primarily intended; and (b) either— (i) those persons
have need of such facilities as aforesaid by reason of their youth, age, infirmity or
disablement, poverty or social and economic circumstances, or (ii) facilities are to be
available to the members of the public at large.[3] Subject to the said requirement, sub-
section 1 of this section applies in particular to the provision of facilities at village halls,
community centres and women institutes, and to the provision and maintenance of grounds
and buildings to be used for purposes of recreation and leisure time occupation, and
extends to the provision of facilities for those purposes by the organizing of any such
activity.

10. Public trust not to be void on ground of uncertainty.––

Notwithstanding any law, custom or usage, a public trust shall not be void, only on the
ground that the persons or objects for the benefit of whom or which it is created are
unascertained or unascertainable.Explanation.—A public trust created for such objects as
dharma, dharmada or punyakarya, punyadan shall not be deemed, to be void, only on the
ground that the objects for which it is created are unascertained or unascertainable.

11. Public trust not void on ground that it is void for non charitable or non-
religious purpose.––

7
A public trust created for purposes some of which are charitable or religious and some are
not shall not be deemed to be void in respect to the charitable or religious purpose, only
on the ground that it is void with respect to the non-charitable or non-religious purpose.

12. Public trust not void on ground of absence of obligation.––

Any disposition of property for a religious or charitable purpose shall not be deemed to be
void as a public trust, only on the ground that no obligation is annexed with such
disposition requiring the person in whose favour it is made to hold it for the benefit of a
religious or charitable object.

13. Public trust not void on failure of specific object or society etc., ceasing to
exist.––

If any public trust is created for a specific object of a charitable or religious nature or for
the benefit of a society or institution constituted for charitable or religious purpose, such
trust shall not be deemed to be void only on the ground— (a) that the performance of the
specific object for which the trust was created has become impossible or impracticable, or
(b) that the society or institution does not exist or has ceased to exist, notwithstanding the
fact that there was no intent for the appropriation of the trust property for a general
charitable or religious purpose.

Chapter IV Registration of Public Trusts

14. Regions and sub-regions.––

(1) For the purposes of this Act, the State Government may form regions and sub-regions
and may prescribe and alter limits of such regions and sub-regions. (2) The regions and
sub-regions formed under this section, together with the limits thereof and every alteration of
such limits shall be notified in the Official Gazette.

15. Public Trusts Registration Offices.––

In every region or sub-region there shall be a Public Trusts Registration Office:Provided that
for two or more regions or sub-regions, there may be one Public Trusts Registration
Office:Provided further that for one region or sub-region there may be one or more Joint
Public Trusts Registration Offices.

15A. Power to set up offices in district.––

8
To facilitate the administrative work of the regions and sub regions, the State Government
may set up offices in all the districts under any region or sub-region.

16. Deputy or Assistant Charity Commissioner to be in charge of Public

Trusts Registrations Office.––

The State Government may appoint a Deputy Charity Commissioner or Assistant Charity
Commissioner to be in charge of one or more Public Trust Registration Offices or Joint
Public Trusts Registration Offices.

17. Books, indices and registers.––

In every Public Trusts Registration Office or Joint Public Trusts Registration Office, it shall
be the duty of the Deputy or Assistant Charity Commissioner in charge to keep and
maintain such books, indices and other registers as may be prescribed. Such books, indices
and other registers shall contain such particulars as may also be prescribed.

18. Registration of public trusts.––

(1) It shall be the duty of the trustee of a public trust to which this Act has been applied
to make an application for the registration of the public trust. (2) Such application shall be
made to the Deputy or Assistant Charity Commissioner of the region or sub-region within
the limits of which the trustee has an office for the administration of the trust or the trust
property or substantial portion of the trust property is situated, as the case may be. (3)
Such application shall be in writing, shall be in such form and accompanied by such fee as
may be prescribed. (4) Such application shall— (a) in the case of a public trust created
before this Act was applied to it, be made, within three months from the date of the
application of this Act, and (b) in the case of a public trust created after this Act comes
into force, within three months of its creation. (5) Such application shall inter alia contain
the following particulars:— (ai) the designation by which the public trust is or shall be known
(hereinafter referred to as the name of the public trust) , (i) the names and addresses of
the trustees and the manager, (ii) the mode of succession to the office of the trustee, (iii)
the list of the moveable and immovable trust property and such descriptions and particulars
as may be sufficient for the identification thereof, (iv) the approximate value of moveable
and immovable property, (v) the gross average annual income of the trust property
estimated on the income of three years immediately preceding the date on which the
application is made or of the period which has elapsed since the creation of the trust,
whichever period is shorter, (vi) the amount of the average annual expenditure in connection

9
with such public trust estimated on the expenditure incurred within the period to which the
particulars under clause (v) relate, (vii) the address to which any communication to the
trustee or manager in connection with the public trust may be sent, (viii) such other
particulars which may be prescribed:Provided that the rules may provide that in the case of
any or all public trusts it shall not be necessary to give the particulars of the trust property
of such value and such kind as may be specified therein. (6) Every application made under
sub-section (1) shall be signed and verified in the prescribed manner by the trustee or his
agent specially authorized by him in this behalf. It shall be accompanied by a copy of an
instrument of trust, if such instrument had been executed and is in existence. (6A) Where
on receipt of such application, it is noticed that the application is incomplete in any
particulars, or does not disclose full particulars of the public trust, the Deputy or Assistant
Charity Commissioner may return the application to the trustee, and direct the trustee to
complete the application in all particulars or disclose therein the full particulars of the trust,
and resubmit it within the period specified in such direction; and it shall be the duty of the
trustee to comply with the direction. (7) It shall also be the duty of the trustee of the public
trust to send a memorandum in the prescribed form containing the particulars, including the
name and description of the public trust, relating to the immovable property of such public
trust, to the sub-registrar of the sub-district appointed under the Indian Registration Act,
1908, in which such immovable property is situate for the purpose of filing in Book No. I
under section 89 of that Act. Such memorandum shall be sent within three months from the
date of creation of the public trust and shall be signed and verified in the prescribed
manner by the trustee or his agent specially authorized by him in this behalf.

19. Inquiry for registration.––

On the receipt of an application under section 18, or upon an application made by any
person having interest in a public trust or on his own motion, the Deputy or Assistant
Charity Commissioner shall make an inquiry in the prescribed manner for the purpose of
ascertaining— (i) whether a trust exists and whether such trust is a public trust, (ii) whether
any property is the property of such trust, (iii) whether the whole or any substantial portion
of the subject-matter of the trust is situate within his jurisdiction, (iv) the names and
addresses of the trustees and manager of such trust, (v) the mode of succession to the
office of the trustee of such trust, (vi) the origin, nature and object of such trust, (vii) the
amount of gross average annual income and expenditure of such trust, and (viii) any other
particulars as may be prescribed under subsection (5) of Section 18.

10
20. Findings of Deputy or Assistant Charity Commissioners.––

On completion of the inquiry provided for under section 19, the Deputy or Assistant Charity
Commissioner shall record his findings with the reasons therefor as to the matter mentioned
in the said section, and may make an order for the payment of the registration fee.

21. Entries in register.––

(1) The Deputy or Assistant Charity Commissioner shall make entries in the register kept
under section 17 in accordance with the findings recorded by him under section 20 or if
appeals or applications are made as provided by this Act, in accordance with the final
decision of the competent authority provided by this Act. (2) The entries so made shall,
subject to the provisions of this Act and subject to any change recorded under the following
provisions, be final and conclusive.

22. Change.––

(1) Where any change occurs in any of the entries recorded in the register kept under
section 17, the trustee shall, within 90 days from the date of the occurrence of such
change, or where any change is desired in such entries in the interest of the administration
of such public trust, report such change or proposed change to the Deputy or Assistant
Charity Commissioner in charge of the Public Trusts Registration Office where the register
is kept. Such report shall be made in the prescribed form. (1A) Where the change to be
reported under sub-section (1) relates to any immovable property, the trustee shall, along
with the report, furnish a memorandum in the prescribed form containing the particulars
(including the name and description of the public trust) relating to any change in the
immovable property of such public trust, for forwarding it to the Sub-Registrar referred to in
sub-section (7) of section 18. Such memorandum shall be signed and verified in the
prescribed manner by the trustee or his agent specially authorised by him in this behalf. (2)
For the purpose of verifying the correctness of the entries in the register kept under section
17 or ascertaining whether any change has occurred in any of the particulars recorded in
the register, the Deputy or Assistant Charity Commissioner may hold an inquiry in the
prescribed manner. (3) If the Deputy or Assistant Charity Commissioner, as the case may
be, after receiving a report under sub-section (1) and holding an inquiry, if necessary under
sub-section (2) , or merely after holding an inquiry under the said sub-section (2) , is
satisfied that a change has occurred in any of the entries recorded in the register kept
under section 17 in regard to a particular public trust, or that the trust should be removed

11
from the register by reason of the change, resulting in both the office of the administration
of the trust and the whole of the trust property ceasing to be situated in the State, he shall
record a finding with the reasons therefor to that effect; and if he is not so satisfied, he
shall record a finding with reasons therefor accordingly. Any such finding shall be
appealable to the Charity Commissioner. The Deputy or Assistant Charity Commissioner
shall amend or delete the entries in the said register in accordance with the finding which
requires an amendment or deletion of entries and if appeals or applications were made
against such finding, in accordance with the final decision of the competent authority
provided by this Act. The amendments in the entries so made subject to any further
amendment on occurrence of a change or any cancellation of entries, shall be final and
conclusive. (3A) The Deputy or Assistant Charity Commissioner may, after such detailed and
impartial inquiry and following such procedure as may be prescribed, de-register the trust on
the following grounds:— (a) when its purpose is completely fulfilled; or (b) when its purpose
becomes unlawful; or (c) when the fulfillment of its purpose becomes impossible by
destruction of the trust-property or otherwise; or (d) when the trust, being revocable, is
expressly revoked; or (e) when the trustees are found not doing any act for fulfilling object
of the trust:Provided that, no trust shall be de-registered under clause (e) unless its trustees
have committed default in reporting the change under sub-section (1) , in submission of the
audited accounts as prescribed by sub-section (2) of section 33 or sub-section (1A) of
section 34 or in making any other compliance prescribed by or under this Act for a period
of five years from the last date of reporting the change, submission of the accounts or
making the compliance, as prescribed by or under this Act or the rules made thereunder,
as the case may be. (3B) The Deputy or Assistant Charity Commissioner may take over the
management of properties of the trust de-registered under sub¬section (3A) and pass such
necessary orders for the same as he deems fit and may, if he considers it expedient,
dispose them of by sale or otherwise and deposit the sale proceeds in the Public Trusts
Administration Fund established under section 57. (4) Whenever an entry is amended or the
trust is removed from the register under sub-section (3) , the Deputy or Assistant Charity
Commissioner, as the case may be, shall forward the memorandum furnished to him under
sub-section (1A) , after certifying the amended entry or the removal of the trust from the
register to the Sub-Registrar referred to in sub-section (7) of section 18, for the purpose of
filing in Book No. I under section 89 of the Indian Registration Act, 1908, in its application
to the State of Maharashtra.

22A. Further inquiry by Deputy or Assistant Charity Commissioner.––

12
If at any time after the entries are made in the register under section 21, 22 or 28 it
appears to the Deputy or Assistant Charity Commissioner that any particular relating to any
public trust, which was not the subject-matter of the inquiry under section 19, or sub-section
(3) of section 22 or section 28, as the case may be, has remained to be enquired into, the
Deputy or Assistant Charity Commissioner, as the case may be, may make, further inquiry
in the prescribed manner, record his findings and make entries in the register in accordance
with the decision arrived at or if appeals or applications are made as provided by this Act,
in accordance with the decision of the competent authority provided by this Act. The
provisions of sections 19, 20, 21 and 22 shall, so far as may be, apply to the inquiry, the
recording of findings and the making of entries in the register under this section.

22B. Registration of trust property in the name of public trust, which has
already been registered, etc.––

(1) In the case of a public trust,— (a) which is deemed to have been registered under this
Act under section 28, or (b) which has been registered under this Act before the date of
the coming into force of the Bombay Public Trusts (Amendment) Act, 1955 (hereinafter
referred to as “the said date” on an application made under section 18, or (c) in respect of
which an application for registration has been made under section 18 and such application
was pending on the said date, the trustee of such public trust shall within three months
from the said date make an application in writing for registration of the property of the
public trust in the name of such trust and shall state in the application the name of the
public trust. (2) Such application shall be signed and verified in the prescribed manner by
the trustee or his agent specially authorized by him in this behalf and made to the Deputy
or Assistant Charity Commissioner who made entries in respect of such public trust in the
register kept under section 17 or with whom the application for registration of the public
trust was pending, as the case may be. (3) On receipt of such application, the Deputy or
Assistant Charity Commissioner shall— (a) in the case of a public trust which is deemed to
have been registered under section 28 or which has been registered under this Act before
the said date specify the name of the public trust against the entries made in respect of
such trust in the register kept under section 17, and (b) in the case of a public trust the
application for the registration of which was pending on the said date specify the name of
the public trust at the time of making entries under section 21 in respect of such public
trust in the register kept under section 17.

22C. Registration of particulars of immovable property of trusts already

registered with certain officers and authorities.––
13
 (1) In the case of a public trust,— (a) which is deemed to have been registered under this
Act under section 28, read with Schedule A, or (b) which has been registered under this
Act before the coming into force of the Bombay Public Trusts (Amendment) Act, 1955
(hereinafter referred to as “the said date”) on an application made under section 18, or (c)
in respect of which an application has been made under section 18 and such application
was pending on the said date,the trustee of such public trust shall within three months from
the said date send a memorandum in the prescribed form containing the particulars,
including the name and description of the public trust, relating to the immovable property of
such public trust to the officers specified in sub-section (7) of section 18 for the purpose of
filing in Book No. I under section 89 of the Indian Registration Act, 1908, in its application
to the State of Maharashtra.Such memorandum shall be signed and verified in the
prescribed manner by the trustee or his agent specially authorized by him in this behalf. (2)
In the case of a public trust deemed to have been registered under section 28 read with
Schedule AA, the provisions of sub-section (1) shall apply with the modification that the said
date shall refer to the date of the coming into force of the Bombay Public Trusts
(Unification and Amendment) Act, 1959.

23. Procedure where trust property is situate in several regions or sub-

regions.––

If any part of the property of any public trust is situate within the limits of more than one
region or sub-region, the Deputy or Assistant Charity Commissioner of the region or sub-
region within the limits of which the public trust is registered, shall forward a copy of the
entries to the Deputy or Assistant Charity Commissioner in charge of the region or sub-
region within the limits of which such part of the trust property is situate. The Deputy or
Assistant Charity Commissioner in charge of such region or sub-region shall make an entry
in such book as may be prescribed for the purpose. A copy of such entry shall also be
sent by the Deputy or the Assistant Charity Commissioner, as the case may be, to the
Sub-Registrar appointed under the Indian Registration Act, 1908, of the sub-district within
the limits of which such property or part thereof is situate.

24. Stay of inquiry.––

No Deputy or Assistant Charity Commissioner shall proceed with an inquiry under section
19 or 22 in regard to any public trust which has been already registered in any other
region or sub- region.

14
25. Inquiry regarding public trust not to be held by more than one Deputy or
Assistant Charity Commissioner.––

(1) If an inquiry under section 19 or 22 in regard to any public trust is pending before
more than one Charity Commissioner, whether Deputy or Assistant, the Charity
Commissioner shall, on the application of any of the persons having interest in such public
trust or of any Deputy or Assistant Charity Commissioner before whom such inquiry is
pending or his own motion, determine which of such Deputy or Assistant Charity
Commissioner shall proceed with the inquiry in regard to such trust. (2) The determination
of the Charity Commissioner under subsection (1) shall be final and conclusive; and upon
such determination, no Deputy or Assistant Charity Commissioner other than the Deputy or
Assistant Charity Commissioner specified by the Charity Commissioner shall proceed with
the inquiry in regard to the public trust under section 19 or 22, as the case may be.

26. Entries in register to be made or amended in certain cases.––

(1) Any Court of competent jurisdiction deciding any question relating to any public trust
which by or under the provisions of this Act is not expressly or impliedly barred from
deciding shall cause copy of such decision to be sent to the Charity Commissioner and the
Charity Commissioner shall cause the entries in the register kept under section 17 to be
made or amended in regard to such public trust in accordance with such decision. The
entries so made or amended shall not be altered except in case where such decision has
been varied in appeal or revision by a court of competent jurisdiction. Subject to such
alterations, the entries made or amended shall be final and conclusive. (2) Where the
Charity Commissioner decides any question in relation to any public trust or passed any
order in relation thereto, he shall also cause the entries in such register to be made or
amended in regard to such public trust in accordance with the decision so given or order
passed by him; and thereupon, the provisions of subsection (1) shall apply in relation to
entries so made or amended as they apply in relation to entries made or amended
according to the decision or order of a court.

27. * * *

28. Public trust previously registered under enactments specified in

Schedule.––

15
 (1) All public trusts registered under the provisions of any of the enactments specified in
Schedule A and Schedule AA shall be deemed to have been registered under this Act from
the date on which this Act may be applied to them. The Deputy or Assistant Charity
Commissioner of the region or sub-region within the limits of which a public trust had been
registered under any of the said enactments shall issue notice to the trustee of such trust
for the purpose of recording entries relating to such trust in the register kept under section
17 and shall after hearing the trustee and making such inquiry as may be prescribed record
findings with the reason therefor. Such findings shall be in accordance with the entries in
the registers already made under the said enactment subject to such changes as may be
necessary or expedient. (2) Any person aggrieved by any of the findings recorded under
subsection (1) may appeal to the Charity Commissioner. (3) The provisions of this Chapter
shall, so far as may be, apply to the making of entries in the register kept under section 17
and the entries so made shall be final and conclusive.

28A. Copy of entries relating to property to be sent to sub-registrar.––

The Deputy or Assistant Charity Commissioner shall send a memorandum in the prescribed
form containing entries including the entry of the name and description of the public trust,
relating to immovable property of such public trust made by him in the register kept under
section 17— (i) to the Sub-Registrar of the sub-district appointed under the Indian
Registration Act, 1908, in which such immovable property is situate. (ii) * * *

28B. * * *

29. Public trust created by will.––

In the case of the public trust which is created by a will, the executor of such will shall
within one month from the date on which the probate of the will is granted or within six
months from the date the testator‖s death whichever is earlier make an application for the
registration in the manner provided in section 18 and the provisions of this Chapter shall
mutatis mutandis apply to the registration of such trust:Provided that the period prescribed
herein for making an application for registration may, for sufficient cause, be extended by
the Deputy or Assistant Charity Commissioner concerned.

30. Notice of particulars of immovable property entered in register.––

16
Any person acquiring any immovable property belonging to a public trust which has been
registered under this Chapter or any part of or any share or interest in such property of
such trust shall be deemed to have notice of the relevant particulars relating to such trust
entered in the registers maintained under section 17 or filed in Book No. 1 under section
89 of the Indian Registration Act, 1908, in its application to the State of Maharashtra.
Explanation.— For the purpose of this section, a person shall be deemed to have notice of
any particulars in the registers,— (1) when he actually knows the said particulars or when,
but for willful abstention from any inquiry or search which he ought to have made, or gross
negligence, he would have known them; (2) if his agent acquires notice thereof whilst acting
on his behalf in the course of business to which the fact of such particulars is material.

31. Bar to hear or decide suits.––

(1) No suit to enforce a right on behalf of a public trust which has not been registered
under this Act shall be heard or decided in any court. (2) The provisions of sub-section (1)
shall apply to a claim of setoff or other proceeding to enforce a right on behalf of such
public trust.

Chapter V Budget, Accounts and Audit

31A. Trustees of certain trust to submit budget to Charity Commissioner.––

(1) A trustee of a public trust which has an annual income exceeding the prescribed
amount shall, at least one month before the commencement of each accounting year,
prepare and submit in such form or forms as may be prescribed, a budget showing the
probable receipts and disbursements of the trust during the following year to the Charity
Commissioner. (2) Every such budget shall make adequate provision for carrying out the
objects of the trust, and for the maintenance and preservation of the trust property.

32. Maintenance of accounts.––

(1) Every trustee of a public trust shall keep regular accounts. (2) Such account shall be
kept in such form as may be approved by the Charity Commissioner and shall contain such
particulars as may be prescribed.

33. Balancing and auditing of accounts.––

(1) The accounts kept under section 32 shall be balanced each year on the thirty-first day
of March or such other day, as may be fixed by the Charity Commissioner. (2) The

17
accounts shall be audited annually by a person who is a chartered accountant within the
meaning of the Chartered Accountants Act, 1949 or by such persons as the State
Government may, subject to any conditions, authorize in this behalf: Provided that, no such
person is in any way interested in, or connected with, the public trust. (3) Every auditor
acting under sub-section (2) shall have access to the accounts and to all books, vouchers,
other documents and records in the possession of or under the control of the trustee; and it
shall be the duty of the trustee to make them available for the use of the auditor. (4)
Notwithstanding anything contained in the preceding sub-sections— (a) the Charity
Commissioner may direct a special audit of the accounts of any public trust whenever in his
opinion such special audit is necessary. The provisions of sub-sections (2) and (3) shall, so
far as may be applicable, apply to such special audit. The Charity Commissioner may direct
the payment of such fee as may be prescribed for such special audit; and (b) State
Government may, by general or special order, exempt any public trust or class of public
trusts from the provisions of sub-section (2) , subject to such conditions as may be
specified in the order.

34. Auditor’s duty to prepare balance sheet and to report irregularities etc.––

(1) It shall be the duty of every auditor auditing the accounts of a public trust under
section 33 to prepare a balance sheet and income and expenditure account and to forward
a copy of the same along with a copy of his report to the trustee, and to the Deputy or
Assistant Charity Commissioner of the region or sub-region or to the Charity Commissioner,
if the Charity Commissioner requires him to do so. (1A) It shall be the duty of the trustee
of a public trust to file a copy of the balance sheet and income and expenditure account
forwarded by the auditor before the Deputy or Assistant Charity Commissioner of the region
or sub-region or to the Charity Commissioner, if the Charity Commissioner requires him to
do so. (2) The auditor shall in his report specify all cases of irregular, illegal or improper
expenditure, or failure or omission to recover moneys or other property belonging to the
public trust or of loss or waste of money or other property thereof and state whether such
expenditure, failure, omission, loss or waste was caused in consequence of breach of trust,
or misapplication or any other misconduct on the part of the trustees, or any other person.

Chapter V A - Powers and Duties of, and Restriction on, Trustees

35. Investment of public trust money.––

18
 (1) Where the trust property consists of money and cannot be applied immediately or at
any early date to the purposes of the public trust the trustee shall be bound notwithstanding
any direction contained in the instrument of the trust to deposit the money in any
Scheduled Bank as defined in the Reserve Bank of India Act, 1934, in the Postal Savings
Bank or in a Co-operative Bank approved by the State Government for the purpose or to
invest it in public securities: Provided that such money may be invested in the first
mortgage of immovable property situate in any part of India if the property is not leasehold
for a term of years and the value of the property exceeds by one-half the mortgage money:
Provided further that the Charity Commissioner may by general or special order permit the
trustee of any public trust or classes of such trusts to invest the money in any other
manner. (2) Nothing in sub-section (2) shall affect any investment or deposit already made
before the coming into force of the Bombay Public Trusts (Amendment) Act, 1954, in
accordance with a direction contained in the instrument of the trust: Provided that any
interest or dividend received or accruing from such investment or deposit on or after the
coming into force of the said Act or any sum so invested or deposited on the maturity of
the said investment or deposit shall be applied or invested in the manner prescribed in sub-
section (1).

36. Alienation of immovable property of public trust.––

(1) Notwithstanding anything contained in the instrument of trust— (a) no sale, exchange of
gift of any immovable property, and (b) no lease for a period exceeding ten years in the
case of agricultural land or for a period exceeding three years in the case of non-
agricultural land or a building, belonging to a public trust, shall be valid without the previous
sanction of the Charity Commissioner. Sanction may be accorded subject to such condition
as the Charity Commissioner may think fit to impose, regard being had to the interest,
benefit or protection of the trust; (c) if the Charity Commissioner is satisfied that in the
interest of any public trust any immovable property thereof should be disposed of, he may,
on application, authorize any trustee to dispose of such property subject to such conditions
as he may think fit to impose, regard being had to the interest or benefit or protection of
the trust. (2) The Charity Commissioner may revoke the sanction given under clause (a) or
clause (b) of sub-section (1) on the ground that such sanction was obtained by fraud or
misrepresentation made to him or by concealing from the Charity Commissioner, facts
material for the purpose of giving sanction; and direct the trustee to take such steps within
a period of one hundred and eighty days from the date of revocation (or such further period
not exceeding in the aggregate one year as the Charity Commissioner may from time to

19
time determine) as may be specified in the direction for the recovery of the property. (3) No
sanction shall be revoked under this section unless the person in whose favor such
sanction has been made has been given a reasonable opportunity to show cause why the
sanction should not be revoked. (4) If, in the opinion of the Charity Commissioner, the
trustee has failed to take effective steps within the period specified in sub-section (2) , or it
is not possible to recover the property with reasonable effort or expense, the Charity
Commissioner may assess any advantage received by the trustee and direct him to pay
compensation to the trust equivalent to the advantage so assessed.

36A. Powers and duties of, and restrictions on, trustees.––

(1) A trustee of every public trust shall administer the affairs of the trust and apply the
funds and properties thereof for the purpose and objects of the trust in accordance with the
terms of the trust, usage of the institution and lawful directions which the Charity
Commissioner or court may issue in respect thereof, and exercise the same care as a man
of ordinary prudence does when dealing with such affairs, funds or property, if they were
his own. (2) The trustee shall, subject to the provisions of this Act and the instrument of
trust, be entitled to exercise all the powers incidental to the prudent and beneficial
management of the trust, and to do all things necessary for the due performance of the
duties imposed on him. (3) No trustee shall borrow moneys (whether by way of mortgage
or otherwise) for the purpose of or on behalf of the trust of which he is a trustee, except
with the previous sanction of the Charity Commissioner, and subject to such conditions and
limitations as may be imposed by him in the interest or protection of the trust. Provided
that, the Charity Commissioner or the Joint Charity Commissioner, as the case may be,
shall decide the application for borrowing money from the Bank or Financial Institution
forthwith and preferably within a period of fifteen days, if the Bank or the Financial
Institution has provisionally sanctioned the loan. (4) No trustee shall borrow money for his
own use from any property of the public trust of which he is a trustee: Provided that, in the
case of a trustee who makes a gift of debentures or any deposit in his business or industry
the trustee shall not be deemed to have borrowed from the trust for his own use.

36B. Register of movable and immovable properties.––

(1) A public trust shall prepare and maintain a register of all moveable and immovable
properties (not being property of a trifling value) of such trust in such form or forms giving
all such information, as may be prescribed by the Charity Commissioner. (2) Such register
shall show the jewels, gold, silver, precious stones, vessels and utensils and all other

20
moveable property belonging to the trust with their description, weight and estimated value.
(3) Such register shall be prepared within three months from the expiry of the accounting
year after the commencement of the Bombay Public Trusts (Amendment) Act, 1970. (4)
Such register shall be signed by all the trustees or by any person duly authorized by
trustees in this behalf after verifying its correctness, and shall be made available to the
auditor for the purpose of auditing if the accounts are required to be audited under the
provisions of this Act. Where the accounts are not required to be audited, the trustees shall
file a copy of such register duly signed and verified, with the Deputy or Assistant Charity
Commissioner of the region. (5) The auditor shall mention in the audit report whether such
register is properly maintained or not, and the defects or inaccuracies, if any, in the said
register and the trustees shall comply with the suggestions made by the auditor and rectify
the defects or inaccuracies mentioned in the audit report within a period of three months
from the date on which the report is sent to the trustees. (6) Every year within three
months from the date of balancing the accounts, the trustee or any person authorized by
him shall scrutinize such register, and shall bring it up-to-date by showing alterations,
omissions or additions to the same, and such changes shall be reported to the Deputy or
Assistant Charity Commissioner in the manner provided in section 22.

Chapter VI Control

37. Power of inspection and supervision.––

(1) The Charity Commissioner, the Deputy or Assistant Charity Commissioner or any officer
authorized by the State Government by a general or special order shall have power— (a) to
enter on and inspect or cause to be entered on and inspected any property, belonging to a
public trust; (b) to call for and inspect any proceedings of the trustees of any public trust,
and any book of accounts or document in the possession or under the control of the
trustees or any person connected with the trust; (c) to call for any return, statement,
account or report which he may think fit from the trustees or any person connected with a
public trust; (d) to get the explanation of the trustee or any person connected with the
public trust and reduce or cause to be reduced to writing any statement made by him:
Provided that, in entering upon any property belonging to the public trust the officers making
the entry shall give reasonable notice to the trustee and shall have due regard to the
religious practices or usages of the trust. (2) It shall be the duty of every trustee to afford
all reasonable facilities to any officer exercising any of the powers under sub-section (1)
and the trustees or any persons connected with the public trust shall comply with any order
made or direction issued by such officer in exercise of the power conferred upon him by or

21
under sub-section (1). (3) If on inspection of the affairs of a public trust under this section,
it is noticed by the Deputy or Assistant Charity Commissioner or the officer authorized
under sub-section (1) that there is a loss caused to the public trust on account of gross
negligence, breach of trust, misapplication or misconduct on the part of a trustee or any
person connected with the trust, the Deputy or Assistant Charity Commissioner may submit
a report thereof to the Charity Commissioner; and the officer so authorized, to the Deputy
or Assistant Charity Commissioner.

38. Explanation on report of auditor or on complaint.––

On receipt of a report of the auditor under section 34 or of a report, if any, made by an

officer authorized under section 37 or on receipt of a complaint in respect of any trust the
Deputy or Assistant Charity Commissioner to whom the report is submitted or complaint is
made shall require the trustee or any other person concerned to submit an explanation
thereon within such period as he thinks fit.

39. Report to Charity Commissioner.––

On considering the report referred to in section 38, the accounts or explanation, if any,
furnished by the trustees or any other person connected with the public trust and after
holding an inquiry in the prescribed manner, the Deputy or Assistant Charity Commissioner
shall record his findings on the question whether or not a trustee or the person connected
with the trust has been guilty of gross negligence, breach of trust, misappropriation or
misconduct which resulted in loss to the trust, and make a report thereof to the Charity
Commissioner.

40. Power of Charity Commissioner to issue orders on report received under

Section 39 or to remand matter, etc.––

The Charity Commissioner may, after considering the report of the Deputy or Assistant
Charity Commissioner, giving an opportunity to the person concerned and holding such
inquiry as he thinks fit,— (1) determine— (a) the amount of loss caused to a public trust; (b)
whether such loss was due to any gross negligence, breach of trust, mis-appropriation or
misconduct on the part of any person; (c) whether any of the trustees, or any person
connected with the public trust was responsible for such loss; (d) the amount which any of
the trustees or any person connected with the public trust is liable to apply to the public
trust for such loss, or, (2) remand the matter for further inquiry to the officer, who made the
report or to any other officer as he thinks fit or for reasons to be recorded in writing,

22
compromise the matter or may drop the matter if a suit is instituted for obtaining a decree
for a direction for taking accounts under section 50.

41. Order of surcharge.––

(1) If the Charity Commissioner decides that any person connected with the trust is liable
to pay to the public trust any amount for the loss caused to the trust, the Charity
Commissioner may direct that the amount shall be surcharged on the person. (2) Subject to
the provisions of section 72, the order of the Charity Commissioner under sub-section (1)
shall be final and conclusive.

41A. Power of Commissioner to issue directions for proper administration of

the trust.––

(1) Subject to the provisions of this Act, the Charity Commissioner may from time to time
issue directions to any trustee of a public trust or any person connected therewith, to
ensure that the trust is properly administered, and the income thereof is properly accounted
for or duly appropriated and applied to the objects and for the purposes of the trust; and
the Charity Commissioner may also give directions to the trustees or such person that if he
finds any property of the trust is in danger of being wasted, damaged, alienated or
wrongfully sold, removed or disposed of. (2) It shall be the duty of every trustee or of such
person to comply with the directions issued under sub-section (1).

41AA. Power of Charity Commissioner and State Government to issue

directions in respect of hospitals, etc., to earmark certain beds etc., for poorer
patients to be treated free of charge or at concessional rates.––

(1) Notwithstanding anything contained in any law for the time being in force or in any
instrument of trust or in any contract or in any judgment, decree or order of any Court,
Tribunal, Charity Commissioner or other competent authority, in the case of any State aided
public trust, whose annual expenditure exceeds five lakhs of rupees, or such other limit as
the State Government may, from time to time, by notification in the Official Gazette, specify,
with a view to making essential medical facilities available to the poorer classes of the
people, either free of charge, or at concessional rates, it shall be lawful for the Charity
Commissioner, subject to such general or special order as the State Government may, from
time to time, issue in this behalf, to issue all or any of the following directions to the
trustees of, or persons connected with, any such trust, which maintains a hospital (including
any nursing home or maternity home) , dispensary or any other centre for medical relief

23
(hereinafter in this section referred to as “the medical Centre”) , namely :— (a) having regard
to the accommodation and facilities available to keep admission to the medical centre open
to any person without any discrimination on the ground of religion, race, caste, sex, place
of birth, language or any of them: Provided that, where a medical centre is exclusively for
females, treatment for any males at such centre shall not be insisted upon; (b) to reserve
and earmark ten per cent. of the total number of operational beds and ten per cent. of the
total capacity of patients treated at such medical centre, for medical examination and
treatment in each department of the medical patients seeking admission or treatment, who
shall be medically examined and treated and admitted as the case may be, free of charge;
(c) to reserve and earmark ten per cent of the total number of operational beds and ten
per cent. of the total capacity of patients treated at such medical centre, for medical
examination and treatment in each department of the medical centre, in such manner as
may be specified in the directions, for the weaker sections of the people seeking admission
for medical examination and treatment, who shall be charged according to such rates as the
State Government may, by general or special order, determine from time to time having
regard to the rates charged by the State Government in the corresponding medical centres
maintained by it; (d) to comply with such other incidental or supplemental requirements as
may be specified in the directions or in any general or special orders issued thereunder:
Provided that, while issuing any directions as aforesaid the Charity Commissioner shall take
into consideration such facilities as are already made available by any such medical centre
and having regard to the availability of such facilities may give appropriate directions if any,
consistent with and subject to the percentage specified in clauses (b) and (c). (2) (a) It
shall be lawful for the officer duly authorised by the State Government in this behalf, or for
the Charity Commissioner by himself or through his representative duly authorised by him in
this behalf, to verify the implementation of the directions given under sub-section (1) to any
medical centre, and for that purpose, visit, inspect and call for information and returns
periodically or otherwise. (b) It shall be the duty of every trustee of, or person connected
with, such medical centre to comply with the directions issued under subsection (1) and to
afford all reasonable facilities and assistance required by the said officer or the Charity
Commissioner or his representative for verification of the implementation of such directions
under clause (a) and to comply withthe requirements thereunder. (c) In case there arises
any dispute relating to the interpretation, implementation or any matter whatsoever in
respect of any direction issued under sub-section (1) , it shall be referred to the State
Government, through the Charity Commissioner, for appropriate directions. (3) Nothing in
sub-sections (1) and (2) shall prejudicially affect any medical facilities of whatever nature
which any such State-aided public trust has provided by virtue of any condition subject to

24
which any grant, exemption, concession, etc. referred to in clause (a) of sub-section (4) has
been granted or received by it or otherwise and such medical facilities, which are in
operation on the date of commencement of the Bombay Public Trusts (Amendment) Act,
1984, shall continue as before if they exceed the percentage of reserved and earmarked
category. (4) For the purposes of this section,— (a) “State-aided public trust” means a public
trust exclusively for medical relief or for medical relief and other charitable purposes, which
maintains a hospital (including any nursing home or maternity homes) , dispensary or any
other centre for medical relief, and which— (i) has received any grant of land or building,
either on ownership basis or on lease or leave and licence, at a nominal or concessional
rate, from the State Government or the Central Government or any local authority; or (ii)
has been given by the State Government any exemption or permission to continue to hold
any vacant land under section 20 or 21 of the Urban Land (Ceiling and Regulation) Act,
1976; or (iii) has been given any concessions or exemption or relaxation of a substantial
nature from the Development Control Rules by any competent authority for the purposes of
the trust; or (iv) has received any loan or guarantee or any non-recurring grant in aid or
other financial assistance or is receiving any recurring grant in aid or other financial
assistance from the State Government, the Central Government or any local authority; (b)
“indigent person” means a person whose total annual income does not exceed three
thousand and six hundred rupees or such other limit as the State Government may, from
time to time, by notification in the Official Gazette, specify; (c) “person belonging to the
weaker sections of the people” means a person who is not an indigent person, but whose
income does not exceed fifteen thousand rupees per annum or such other limits as the
State Government may, from time to time, by notification in the Official Gazette, specify; (d)
it shall be the duty of the governing body (by whatsoever name called) of every medical
centre to get the category of a patient duly verified and recorded in a register kept for the
purpose in the prescribed form before he is admitted or treated as a patient within the
reserved fund earmarked percentage under sub-section (1). If there is any dispute as to the
category of a patient, it shall be referred to the State Government, through the Charity
Commissioner, for appropriate direction. (5) Notwithstanding anything contained in the
foregoing provisions of this section, any person, who desires to undergo an operation for
sterilization or an intra-ocular operation or who desires to undergo any operation or medical
treatment specified by the State Government in this behalf, shall not be entitled, and shall
not be allowed, to seek admission in any hospital or other medical centre in the reserved
or earmarked quota provided under this section.

41B. Power to institute inquiries.––

25
 (1) On receipt of a complaint in writing from any person having interest in respect of any
public trust or suomotu the Charity Commissioner or Deputy or Assistant Charity
Commissioner may institute an inquiry with regard to charities or a particular charity or class
of charities either generally, or for particular purposes. (2) The officers aforesaid may either
hold the inquiry themselves, or entrust such inquiry to the officer authorised under sub-
section (1) of section 37. (3) For the purpose of any such inquiry, the officer holding the
inquiry may, by notice, require any person to attend at a specified time and place and give
evidence or produce documents in his custody or control which relate to any matter in
question at the inquiry. (4) For the purpose of any such inquiry, evidence may be taken on
oath and the person holding the inquiry may for that purpose administer an oath under the
Indian Oaths Act, 1873, or may instead of administering an oath, on solemn affirmation
require the person to make and subscribe a declaration of the truth of the matters about
which he is examined. (5) The necessary expenses of any person of his attendance to give
evidence or produce documents for the purpose of the inquiry shall be paid in the manner
prescribed. (6) After the completion of the inquiry, the person holding the inquiry (not being
the Charity Commissioner) shall submit his report to the officer who entrusted such inquiry
to him. (7) The Deputy or Assistant Charity Commissioner of the region concerned shall
submit his own report or report received by him under this section to the Charity
Commissioner or he may, proceed under section 38, if necessary, or send a copy of the
report to the Charity Commissioner with his remarks thereon. The Charity Commissioner
may, if he is satisfied that there is a prima facie case against the trustees, take such steps
as are necessary under the provisions of this Act. (8) The Charity Commissioner may
himself also call for the proceedings of any inquiry made under this section for such action
as he may think fit.

41C. Persons (other than public trust) collecting moneys, etc., for religious or
charitable purpose to inform Charity Commissioner of such collections
forthwith etc.––

(1) Any person (not being a public trust registered under this Act) collecting any money,
subscription, donation or other property for religious or charitable purpose shall forthwith
inform the Charity Commissioner in writing of such collection and the purpose for which
such collection is made. (2) On receipt of such information, the Charity Commissioner may,
on making such inquiry as he deems fit, permit such collection to be continued subject to
such condition as he deems fit, or may, after recording his reasons in writing in that behalf
direct such person to stop making such collection forthwith and require such person to

26
render an account of the collections made by him. (3) It shall be the duty of every such
person to comply with the directions or any order made by the Charity Commissioner under
subsection (2).

41D. Suspension removal and dismissal of trustees.¬¬––

(1) The Charity Commissioner may, either on application of a trustee or any person
interested in the trust, or on receipt of a report under section 41B or suomotu may
suspend, remove or dismiss any trustee of a public trust, if he,— (a) makes persistent
default in the submission of accounts report or return; (b) wilfully disobeys any lawful orders
issued by the Charity Commissioner under the provisions of this Act or rules made
thereunder by the State Government; (c) continuously neglects his duty or commits any
malfeasance or misfeasance, or breach of trust in respect of the trust; (d) misappropriates
or deals improperly with the properties of the trust of which he is a trustee; or (e) accepts
any position in relation to the trust which is inconsistent with his position as a trustee; (f) if
convicted of an offence involving moral turpitude. (2) When the Charity Commissioner
proposes to take action under subsection (1) , he shall frame charges against the trustee or
the person against whom action is proposed to be taken and give him an opportunity of
meeting such charges of testing the evidence adduced against him and of adducing
evidence in his favour. The order of suspension, removal or dismissal shall state the
charges framed against the trustee, his explanation and the finding on each charge, with
the reasons therefor. (3) Pending disposal of the charges framed against a trustee the
Charity Commissioner may place the trustee under suspension. (4) Where the Charity
Commissioner has made an order suspending, removing or dismissing any trustee and such
trustee is the sole trustee or where there are more than one trustee and the remaining
trustee according to the instrument of trust, cannot function or administer the trust without
the vacancy being filled, then in that case the Charity Commissioner shall appoint a fit
person to discharge the duties and perform the function of the trust, and such person shall
hold office only until a trustee is duly appointed according to the provisions of the
instrument of trust. (5) A trustee, aggrieved by an order made under sub-section (1) may,
within ninety days from the date of communication of the order of suspension, removal or
dismissal, apply to the Court against such order. (6) An appeal shall lie to the High Court
against the decision of the Court under sub-section (5) as if such decision was a decree
from which an appeal ordinarily lies. (7) The order of the Charity Commissioner shall,
subject to any order of the Court or in appeal, be final.

27
41E. Power to act for protection of Charities.––

(1) Where it is brought to the notice of the Charity Commissioner either by the Deputy or
Assistant Charity Commissioner through his report or by an application by at least two
persons having interest supported by affidavit,— (a) that any trust property is in danger of
being wasted, damaged or improperly alienated by any trustee or any other person, or (b)
that the trustee or such person threatens, or intends to remove or dispose of that property,
the Charity Commissioner may by order grant a temporary injunction or make such other
order for the purpose of staying and preventing the wasting, damaging, alienation, sale,
removal or disposition of such property, on such terms as to the duration of injunction,
keeping an account, giving security, production of the property or otherwise as he thinks fit.
(2) The Charity Commissioner shall in all such cases, except where it appears that the
object of granting injunction would be defeated by delay, before granting an injunction, give
notice of the facts brought to his notice to the trustee, or the person concerned. (3) After
hearing the trustee or person concerned and holding such inquiry as he thinks fit, the
Charity Commissioner may confirm, discharge or vary or set aside the order of injunction or
pass any other appropriate order. (4) In case of disobedience or breach of any injunction,
any of its terms or any order passed under this section, the Charity Commissioner may
apply to the Court, which may, after hearing the Charity Commissioner and the party
affected, order the property of such person, guilty of such disobedience or breach to be
attached and may also order such person to be detained in jail for a term not exceeding
six months. No attachment under this sub-section shall remain in force for more than one
year, at the end of which time, if the disobedience or breach continues, the property
attached may be sold, and out of the proceeds, the Court may award such compensation
as it thinks fit, and shall pay the balance, if any, to the person entitled thereto, and
thereupon, the temporary injunction granted, or any order passed, by the Charity
Commissioner, under this section, if in force shall stand vacated, or as the case may be
cancelled. (5) A trustee or a person against whom the order of injunction or any other order
under this section is passed may, within ninety days of the date of communication of such
order, appeal to the Court against such order. (6) The order of the Court attaching the
property of such person or detaining such person in civil prison shall be a decree
appealable to the High Court. (7) The order of the Charity Commissioner shall, subject to
any order of the Court or in appeal, be final.

42. Charity Commissioner to be corporation sole.––

28
Each Charity Commissioner shall be a corporation sole and shall have perpetual succession
and a common seal and may sue and be sued in his corporate name.

43. Maharashtra Charity Commissioner to be Treasurer of Charitable

Endowments under Act VI of 1890.––

(1) * * * (2) Notwithstanding anything contained in the Charitable Endowments Act, 1890,
the Charity Commissioner shall have the following powers :— (a) power to modify or
substitute the scheme for the administration of any charitable endowment framed under the
Charitable Endowments Act, 1890, after hearing the State Government and the Administrator
under section 50A; (b) power to exercise powers under section 37; and (c) power to change
the administrator after hearing and in consultation with the State Government if the
endowment is not being properly administered.

44. * * *

45. * * *

46. * * *

47. Power of Charity Commissioner to appoint, suspend, remove or discharge

trustees and to vest property to new trustees.––

(1) Any person interested in a public trust may apply to the Charity Commissioner for the
appointment of a new trustee, where there is no trustee for such trust or the trust cannot
be administered until the vacancy is filled, or for the suspension, removal or discharge of a
trustee, when a trustee of such trust,— (a) disclaims or dies; (b) is for a continuous period
of six months absent from India without the leave of the Charity Commissioner or the
Deputy or Assistant Charity Commissioner or the officer authorised by the State Government
in this behalf; (c) leaves India for the purpose of residing abroad; (d) is declared as
insolvent; (e) desires to be discharged from the trust; (f) refuses to act as a trustee ; (g)
becomes in the opinion of the Charity Commissioner unfit or physically incapable to act in
the trust or accepts a position which is inconsistent with his position as trustee; (h) in any
of the cases mentioned in Chapter III, is not available to administer the trust; or (i) is
convicted of an offence punishable under this Act or an offence involving moral turpitude.
(2) The Charity Commissioner may, after hearing the parties and making such enquiry as
he may deem fit, by order appoint any person as a trustee or may also remove or
discharge any trustee for any of the reasons specified in sub-section (1). (3) In appointing a
trustee under sub-section (2) , the Charity Commissioner shall have regard— (a) to the

29
wishes of the author of that trust; (b) to the wishes of the persons, if any, empowered to
appoint a new trustee; (c) to the question whether the appointment will promote or impede
the execution of the trust; (d) to the interest of the public or the section of the public who
have interest in the trust; and (e) to the custom and usage of the trust. (4) It shall be
lawful for the Charity Commissioner upon making any order appointing a new trustee under
sub-section (2) either by the same or by any subsequent order to direct that any property
subject to the trust shall vest in the person so appointed and thereupon it shall so vest. (5)
The order of the Charity Commissioner under sub-section (2) shall be deemed to be the
decree of the Court and an appeal shall lie therefrom to the High Court.

47AA. * * *

47A. * * *

47B. * * *

48. * * *

49. * * *

50. Suit by or against or relating to public trusts or trustees or others.––

In any case,— (i) where it is alleged that there is a breach of a public trust, negligence,
misapplication or misconduct on the part of a trustee or trustees, (ii) where a direction or
decree is required to recover the possession of or to follow a property belonging or alleged
to be belonging to a public trust or the proceeds thereof or for an account of such property
or proceeds from a trustee, ex-trustee, alienee, trespasser or any other person including a
person holding adversely to the public trust but not a tenant or licensee, (iii) where the
direction of the Court is deemed necessary for the administration of any public trust, or (iv)
for any declaration or injunction in favour of or against a public trust or trustee or trustees
or beneficiary thereof, the Charity Commissioner after making such enquiry as he thinks
necessary, or two or more persons having an interest in case the suit is under sub-clauses
(i) to (iii) , or one or more such persons in case the suit is under sub-clause (iv) having
obtained the consent in writing of the Charity Commissioner as provided in section 51 may
institute a suit whether contentions or not in the Court within the local limits of whose
jurisdiction the whole or part of the subject-matter of the trust is situate, to obtain a decree
for any of the following reliefs :— (a) an order for the recovery of the possession of such
property or proceeds thereof; (b) the removal of any trustee or manager; (c) the
appointment of a new trustee or manager; (d) vesting any property in a trustee; (e) a

30
direction for taking accounts and making certain enquiries; (f) an order directing the trustees
or others to pay to the trust the loss caused to the same by their breach of trust,
negligence, misapplication, misconduct or willful default; (g) a declaration as to what
proportion of the trust property or of the interest therein shall be allocated to any particular
object of the trust; (h) a direction to apply the trust property or its income cypres on the
lines of section 56 if this relief is claimed along with any other relief mentioned in this
section; (i) a direction authorizing the whole or any part of the trust property to be let, sold,
mortgaged or exchanged or in any manner alienated on such terms and conditions as the
court may deem necessary; (j) the settlement of a scheme, or variations or alterations in a
scheme already settled; (k) an order for amalgamation of two or more trusts by framing a
common scheme for the same; (l) an order for winding up of any trust and applying the
funds for other charitable purposes; (m) an order for handing over of one trust to the
trustees of some other trust and deregistering such trust; (n) an order exonerating the
trustees from technical breaches, etc; (o) an order varying, altering, amending or
superseding any instrument of trust; (p) declaring or denying any right in favour of or
against a public trust or trustee or trustees or beneficiary thereof and issuing injunctions in
appropriate cases; or (q) granting any other relief as the nature of the case may require
which would be a condition precedent to or consequential to any of the aforesaid relief or is
necessary in the interest of the trust:Provided that, no suit claiming any of the reliefs
specified in this section shall be instituted in respect of any public trust, except in
conformity with the provisions thereof:Provided further that, the Charity Commissioner may
instead of instituting a suit make an application to the Court for a variation or alteration in a
scheme already settled:Provided also that, the provisions of this section and other
consequential provisions shall apply to all public trusts, whether registered or not or
exempted from the provisions of this Act under sub-section (4) of section 1.

50A. Power of Charity Commissioner to frame, amalgamate or modify

schemes.––

(1) Notwithstanding anything contained in section 50, where the Charity Commissioner has
reason to believe that, in the interest of the proper management or administration of public
trust, a scheme should be settled for it, or where two or more persons having interest in a
public trust make an application to him in writing in the prescribed manner that, in the
interest of the proper management or administration of a public trust, a scheme should be
settled for it, the Charity Commissioner may, if, after giving the trustees of such trust due
opportunity to be heard, he is satisfied that it is necessary or expedient so to do, frame a

31
scheme for the management or administration of such public trust. (2) Where the Charity
Commissioner is of opinion that in the interest of the proper management or administration,
two or more public trusts may be amalgamated by framing a common scheme for the
same, he may, after— (a) publishing a notice in the Official Gazette and also if necessary in
any newspaper which in the opinion of the Charity Commissioner is best calculated to bring
to the notice of persons likely to be interested in the trust with a wide circulation in the
region in which the trust is registered, and (b) giving the trustees of such trusts and all
other interested persons due opportunity to be heard, frame a common scheme for the
same. (3) The Charity Commissioner may, at any time, after hearing the trustees, modify
the scheme framed by him under sub-section (1) or sub-section (2). (4) The scheme framed
under sub-section (1) or sub-section (2) or modified under sub-section (3) shall, subject to
the decision of the competent court under section 72, have effect as a scheme settled or
altered, as the case may be, under a decree of a Court under section 50.

51. Consent of Charity Commissioner for institution of suit.––

(1) If the persons having an interest in any public trust intend to file a suit of the nature
specified in section 50, they shall apply to the Charity Commissioner in writing for his
consent. If the Charity Commissioner after hearing the parties and making such enquiries (if
any) as he thinks fit is satisfied that there is a prima facie case, he may within a period of
six months from the date on which the application is made, grant or refuse his consent to
the institution of such suit. The order of the Charity Commissioner refusing his consent shall
be in writing and shall state the reasons for the refusal. (2) If the Charity Commissioner
refuses his consent to the institution of the suit under sub-section (1) the persons applying
for such consent may file an appeal to the Divisional Commissioner in the manner provided
by this Act. (3) In every suit filed by persons having interest in any trust under section 50,
the Charity Commissioner shall be a necessary party. (4) Subject to the decision of the
Divisional Commissioner in appeal under section 71, the decision of the Charity
Commissioner under sub-section (1) shall be final and conclusive.

52. Non application of sections 92 and 93 of Civil Procedure Code to public

trusts.––

(1) Notwithstanding anything contained in the Code of Civil Procedure, 1908, the provisions
of sections 92 and 93 of the said Code shall not apply to the public trusts. (2) If on the
date of the application of the Act to any public trust any legal proceedings in respect of
such trust are pending before any Civil Court of competent jurisdiction to which the

32
Advocate-General or the Collector exercising the powers of the Advocate-General is a party,
the Charity Commissioner shall be deemed to be substituted in those proceedings for the
Advocate-General or the Collector, as the case may be, and such proceedings shall be
disposed of by such Court. (3) Any reference to the Advocate-General made in any
instrument, scheme, order or decree of any Civil Court of competent jurisdiction made or
passed, whether before or after the said date, shall be construed as reference to the
Charity Commissioner.

52A. Suit against assignee for valuable consideration not barred by time.––

Notwithstanding anything contained in the Indian Limitation Act, 1908, no suit against an
assignee for valuable consideration of any immovable property of the public trust which has
been registered or is deemed to have been registered under this Act for the purpose of
following in his hands, such property or the proceeds thereof, or for an account of such
property or proceeds, shall be barred by any length of time.

53. Bequest under will for benefit of public trust.––

(1) Where under any will a bequest has been made in favour of a public trust or where
such bequest itself creates a public trust, it shall be the duty of the executor under the will
to forward copy thereof to the Deputy or Assistant Charity Commissioner for the region or
sub-region where such trust may have been, or is required to be, registered. (2) No probate
of any such will or letters of administration with such will annexed shall be granted by any
Court whatsoever unless it is satisfied that a copy of such will has been forwarded to the
Deputy or Assistant Charity Commissioner as provided by sub-section (1).

54. Dharmada.––

(1) Where according to the custom or usage of any business or trade or the agreement
between the parties relating to any transaction any amount is charged to any party to the
said transaction or collected under whatever name, as being intended to be used for a
charitable or religious purpose the amount so charged or collected (in this Act called—“
dharmada ”) shall vest in the person charging or collecting the same as a trustee. (2) Any
person charging or collecting such sums shall within three months from the expiration of the
year for which his accounts are ordinarily kept submit an account in such form as may be
prescribed to the Deputy or Assistant Charity Commissioner. (3) The Deputy or Assistant
Charity Commissioner shall have power to make such inquiry as he thinks fit to verify the

33
correctness of the account submitted and may pass order for the disposal of the amount in
the manner prescribed. (4) The provisions of Chapter IV shall not apply to dharmada.

55. Cypres.

(1) If upon an application made to him or otherwise the Charity Commissioner is of opinion
that— (a) the original object for which the public trust was created has failed, (b) the income
or any surplus balance of any public trust has not been utilized or is not likely to be
utilized, (c) in the case of a public trust other than a trust for a religious purpose, it is not
in public interest expedient, practicable, desirable, necessary or proper to carry out wholly or
partially the original intention of the author of the public trust or the object for which the
public trust was created and that the property or the income of the public trust or any
portion thereof should be applied to any other charitable or religious object, or (d) in any of
the cases mentioned in sections 10 to 13 or in regard to the appropriation of the dharmada
sums held in trust under section 54 the directions of the Court are necessary, the Charity
Commissioner shall require the trustees to apply within the prescribed time for directions to
the Court within the local limits of whose jurisdiction the whole or part of the subject-matter
of the trust is situate and the trustees shall comply with such requisition. (2) If the trustees
fail to make the application as required under subsection (1) or if the Charity Commissioner
himself is a trustee or if there is no trustee of the public trust, the Charity Commissioner
shall make an application to the Court.
56. Court’s power to hear application.––

(1) On such application being made, the Court after hearing the parties and the Charity
Commissioner and making an inquiry shall decides the matter and shall give directions. In
giving the directions, the Court shall, so far as may be expedient, practicable, desirable,
necessary or proper in public interest, give effect to the original intention of the author of
the public trust or the object for which the public trust was created. If the Court is of
opinion that the carrying out of such intention or object is not wholly or partially expedient,
practicable, desirable, necessary or proper in public interest the Court may direct the
property or income of the public trust or any portion thereof to be applied cypres to any
other charitable or religious object. In doing so, it shall be lawful for the Court to alter any
scheme already settled or to vary the terms of any decree or order already passed in
respect of the public trust or the conditions contained in the instrument of the public trust.
(2) Any decision or order passed by the Court under sub-section (1) shall be deemed to be
a decree of such Court and an appeal shall lie therefrom to the High Court.

34
56A. Powers of trustee to apply for directions.––

(1) Save as hereinbefore provided in this Act, any trustee of a public trust may apply to
the Court, within the local limits of whose jurisdiction the whole or part of the subject-matter
of the trust is situate, for the opinion, advice or direction of the Court on any question
affecting the management or, administration of the trust property or income thereof and the
Court shall give its opinion, advice, or direction, as the case may be, thereon:Provided that,
the Court shall not be bound to give such opinion, advice or direction on any question
which it considers to be a question not proper for summary disposal. (2) The Court, on an
application under sub-section (1) , may give its opinion, advice or direction thereon after
giving notice to the Charity Commissioner. The Court before giving any opinion, advice or
direction shall afford a reasonable opportunity of being heard to all persons appearing in
connection with the application. (3) A trustee stating in good faith the facts of any matter
relating to the trust in an application under sub-section (1) , and acting upon the opinion,
advice or direction of the Court given thereon, shall be deemed as far as his own
responsibility is concerned, to have discharged his duty as such trustee in the matter in
respect of which the application was made. (4) No appeal shall lie against any opinion,
advice or direction given under this section.

56B. Proceedings involving question affecting public charitable or religious

purpose.––

(1) In any suit or legal proceedings in which any question affecting a public religious or
charitable purpose is involved, the Court shall not proceed to determine such question until
after notice has been given to the Charity Commissioner. (2) If upon the receipt of such
notice or otherwise the Charity Commissioner makes any application in that behalf, he shall
be added as a party at any stage of such suit or proceedings. (3) In this section “Court”
shall mean any Civil Court of competent jurisdiction in the State of Maharashtra.

Chapter VII A - Special Provision as Respects Religious and Charitable Institutions and Endowments
which vest in, or the Management of which vests in, the State Government.

56C. Provisions of Chapter VII-A to apply to certain endowments.––

(1) The provisions of this Chapter shall apply to every temple, mosque or endowment
created for a public religious or charitable purpose (hereinafter in this Chapter referred to as
“the endowment”) , which vests in, or the management of which vests in, the State

35
Government and which— (a) has been registered under the provisions of this Act as, or (b)
is declared by the State Government by notification in the Official Gazette, after such
inquiry as it thinks fit, and after previous publication, to be a public trust. On such
declaration such endowment shall be deemed to be a registered public trust for the
purposes of this Act and the provisions of Chapter IV relating to the registration of public
trusts, shall, as far as may be, apply to the making of entries in the register kept under
section 17, provided that such entries shall also conform to the provisions of this Chapter.
The entries so made shall be final and conclusive. (2) The State Government shall, as soon
as may be after the commencement of this Chapter, publish in the Official Gazette, a list of
such endowments as are registered as or declared to be, public trusts, and the State
Government may, by like notification and in like manner, add to or delete from such list any
endowment entered therein.

56D. Vesting or transfer of management, of certain endowments.––

The State Government shall, from such date as it determines, and in the manner hereinafter
provided, transfer the endowment, or the management thereof to a committee (hereinafter
referred to as “committee”) and thereupon such endowment together with all the immovable
or moveable property appertaining thereto, or as the case may be, management thereof
shall vest in the members of such committee; and the members of the committee shall be
the trustees or such endowment within the meaning and for the purposes of this Act.

56E. Committees of management.––

(1) Notwithstanding anything contained in sections 47 and 50 for the purpose of vesting or
transferring the management of the endowment under the provisions of this Chapter, to a
committee the State Government shall, by notification in the Official Gazette, appoint (under
such name as may be specified in the notification) one or more committees for one or
more districts as the State Government may think fit. (2) The committee shall have power
to acquire, hold and dispose of property, subject to such conditions and restrictions as may
be prescribed, and may sue and be sued in the names of all the members of the
committee. (3) A Committee shall consist of not less than five and not more than seven
members and the members in the case of a religious endowment shall, and in any other
case may, be appointed from amongst persons professing the religion or belonging to the
religious denomination (or any section thereof) , for the purposes of which or for the benefit
of whom the endowment was founded, or is being administered. The members shall be

36
appointed, as far as possible, and in accordance so far as can be ascertained with the
general wishes of those who are interested in the administration, of such endowment.

56F. Term of office of members of committee.––

(1) A member shall be appointed to a committee for a period of five years, but shall be
eligible for re-appointment. (2) A member may, by writing under his hand addressed to the
State Government, resign his membership of committee:Provided that, such resignation shall
not take effect until the resignation has been accepted by the State Government.

56G. Disqualification of membership.––

(1) A person shall be disqualified for appointment as, or for being, a member of a
committee if he— (a) is a minor; (b) has been convicted by a criminal court of any offence
involving moral turpitude; (c) is of unsound mind, and is so declared by a competent court;
(d) is an undischarged insolvent; (e) has directly or indirectly interest in a lease or any
other transaction relating to the property vesting in the committee; (f) is a paid servant of
the committee or has any share or interest in a contract for the supply of goods to, or for
the execution of any works, or the performance of any service, undertaken by the
committee in respect of the endowment; (g) is found to be guilty of misconduct by the State
Government; (h) in the case of a religious endowment ceases to profess the religion or to
belong to the religious denomination for which the committee is appointed; or (i) is
otherwise unfit. (2) If it appears to the State Government that a member has incurred any
of the disqualifications aforesaid, the State Government may, after giving such member an
opportunity of showing cause, and after considering any such cause shown, remove such
person from membership and the decision of the State Government shall be final. (3)
Notwithstanding anything contained in any other law for the time being in force, a member
of the committee shall not be disqualified from being chosen as and for being a member of,
the Maharashtra Legislative Assembly or the Maharashtra Legislative Council or any local
authority by reason only of the fact that he is a member of such committee.

56H. Power of Government to appoint new member.––

The State Government may appoint a new member when a member of committee— (a)
resigns or dies; (b) is for a continuous period of six months absent from India without leave
of the Charity Commissioner; (c) leaves India for the purpose of residing abroad; (d) desires
to be discharged; (e) refuses to act; or (f) is removed by the State Government.

37
56I. Chairman and treasurer of committee.––

(1) The State Government shall from amongst the members, of a committee appoint a
chairman and shall also appoint a treasurer. (2) The State Government may direct that the
chairman, treasurer and other members of the committee may be paid such honorarium or
fees and allowances from the Management Fund constituted under section 56QQ and in
such manner as may be prescribed.

56J. Meeting of and procedure for committee.––

The Committee shall meet at such intervals and follow such procedure in exercising its
powers and discharging its duties and functions as may be prescribed; but the day-to-day
proceedings and routine business shall be dispatched in accordance with regulations made
by it, and approved by the State Government.

56K. Power of committee to appoint sub-committees.––

A committee may by resolution appoint such sub-committees as it may think fit, and may
delegate to them such powers and duties as it specifies in the resolution; and a committee
or sub-committee may associate with itself, generally or for any particular purpose, in such
manner as may be determined by regulations, any person who is not a member, but whose
assistance or advice it may desire; and the person associated as aforesaid shall have the
right to take part in the discussions of the committee or subcommittee, relevant to that
purpose, but shall not have the right to vote at any meeting thereof.

56L. Secretary and other officers of committee.––

(1) The State Government may appoint a Secretary to the Committee. (2) The committee
may appoint such officers (other than the Secretary) and servants at it thinks necessary for
the efficient performance of the duties and functions of the committee under this
Act:Provided that no officer or servant who is paid or is to be paid salary of over one
hundred per mensum shall be appointed by a committee without the previous approval of
the State Government.

56M. Terms and conditions of service of Secretary and other servants.––

(1) The Secretary, officers and servants shall be appointed on such terms and conditions
as to service as may be prescribed by rules or, as the case may be, by regulations made

38
by the committee. (2) The salary and allowances of the Secretary, officers and servants of
the committee shall be paid out of the Management Fund.

56N. General duties of committee.––

(1) Subject to the general and special orders of the State Government, it shall be the
general duty of a committee to manage and administer the affairs of the endowment which
vests in, or the management of which vests in it. It shall be the duty of a committee to so
exercise the powers conferred and discharge the duties and functions imposed upon it, by
or under this Act or under any instrument of trust, or a scheme, for the time being in force
relating to such endowment as to ensure that such endowment is properly maintained,
controlled and administered and the income thereof is duly applied to the object and
purposes for which it was created, intended or to be administered. (2) In particular, but
without prejudice to the generality of the foregoing provision, a committee shall— (a)
maintain a record containing information relating to the origin, income, object and the
beneficiaries of every such endowment; (b) prepare a budget estimating its income and
expenditure; (c) make regular payment of salaries and allowances and other sums payable
to the Secretary, officers and servants of a committee from the Management Fund; (d) keep
separate accounts for each such endowment; (e) ensure that the income and property of
the endowment are applied to the objects and for the purposes for which such endowment
was created, intended or is to be administered; (f) take measures for the recovery of lost
properties of any such endowment; (g) institute and defend any suits and proceedings in a
court of law relating to such endowment; (h) supply such returns, statistics, accounts and
other information with respect to such endowment as the State Government may from time
to time require; (i) inspect or cause the inspection of the properties of such endowment;
and (j) generally do all such acts as may be necessary for the proper control, maintenance
and administration of such endowment.

56O. Act of committee not invalid by reason of vacancy or defect.––

No act or proceeding of a committee shall be invalid by reason only of the existence of any
vacancy amongst its members, or any defect in the constitution thereof.

56P. Power of State Government to issue directions.––

The State Government may, from time to time, for the better management or administration
of any endowment issue directions to a committee.

39
56Q. Power of Charity Commissioner to require duties of committee to be
performed and to direct expenses in respect thereof to be paid from fund of
committee, etc.––

The Charity Commissioner may, with the previous sanction of the State Government,
provide for the performance of any duty which a committee is bound to perform under the
provisions of this Act, or the rules or directions made or given thereunder, and may direct
that the expenses of the performance of such duty be paid by any person who may have
from time to time the custody of any fund belonging to the committee. If such duty is in
connection with any endowment the payment shall be made out of the funds belonging to
the said endowment.

56QQ. Management Fund.––

(1) For each committee there shall be constituted a fund to be called the “Management
Fund” which shall vest in, and be under the control of the committee. (2) There shall be
placed to the credit of every Management Fund— (a) save as otherwise provided in sub-
section (3) in respect of Kolhapur, the total balances (whether in cash, securities or in any
other form) standing to the credit of any endowment held by the State Government
immediately before such endowment or the management thereof is transferred to, and
vested in, the members of the committee under section 56D; (b) a sum not exceeding ten
percent, of the gross annual income of each endowment transferred to, or under the
management of, the members of the committee as the committee may, with the approval of
the State Government fix in this behalf. In fixing such sum regard shall be had to the gross
annual income of the endowment, the annual expenditure incurred to give effect to the
objects and purposes for which or for the benefit of whom the endowment is founded,
created, intended, or is being administered, the liability, if any, to which the endowment is
subject, and any other factors which the State Government may either generally or specially
specify in the case of any endowment or class of endowments; (c) the fees charged for
inspection of proceedings of the committee, and for copies of records, maintained by the
committee; (d) any other sum which the State Government may by order specify in this
behalf. (3) The contributions levied—known as “Devasthan cess” or by whatever name
called—on Devasthan inam lands in the former State of Kolhapur, and collected in the
Devasthan Fund as provided by the SarSubha Vat No. 20, dated 29th September 1917 and
continued to be levied and collected in that fund as aforesaid under the provisions of
SarSubhaJahirnama No. 36, dated the 5th November 1932, shall, on the commencement of

40
the Bombay Public Trusts (Amendment) Act, 1963, cease to be levied and collected on the
Devasthan inam lands aforesaid ; and the total balance (whether in cash, securities or in
any other form) to the credit of the said Devasthan Fund at such commencement including
the sum accumulated out of the income of the endowments in the former State of Kolhapur
(such accumulated sum being commonly known as the Amanat Fund) shall be placed to the
credit of the Management Fund of such committee or committees in the district of Kolhapur
as may be specified by the State Government in this behalf. (4) The Management Fund
shall, subject to the provisions of this Act and subject to any general or special order of the
State Government, be applied to,— (i) the payment of honorarium, fees and allowances of
the chairman, treasurer and other members of the committee; (ii) the payment of salaries,
allowances and other sums payable to the secretary, officers and servants of the committee;
(iii) the payment of any expenses lawfully incurred by the committee in the exercise of its
powers and in the performance of its duties and functions as provided by section 56N. (5)
The custody and investment of the moneys credited to the Management Fund and the
dibursement and payment thereform and the audit of accounts of the Fund shall be
regulated in the prescribed manner.

56R. Purpose to supersede a committee.––

(1) If the State Government is of opinion that a committee is unable to perform or has
persistently made default in the performance of, the duties imposed upon it by or under this
Act, or has exceeded or abused its powers, the State Government may, by notification in
the Official Gazette, supersede the committee for such period as may be specified in the
notification:Provided that, before issuing a notification under this sub-section, the State
Government shall give a reasonable opportunity to the committee to show cause, why it
should not be superseded and consider the explanations and objections if any of the
committee. (2) Upon the publication of a notification under sub-section (1) superseding a
committee— (a) all the members of the committee shall, as from the date of supersession,
vacate their offices as such members; (b) all the powers, duties and functions which may,
by or under the provisions of this Act, be exercised or performed by or on behalf of the
committee, shall, during the period of supersession, be exercised and performed by such
person or persons as the State Government having regard to the provisions of sub-section
(1) of section 56G may direct; and (c) all property vested in, or the management of which
is vested in, the committee shall during the period of supersession vest in the State
Government. (3) On the expiration of the period of supersession specified in the notification
issued under sub-section (1) , the State Government may— (a) extend the period of

41
supersession for such further period as it may consider necessary, or (b) reconstitute the
committee in the manner provided in section 56E.

56RR. Power of removal of members of committee and appointment of

Administrator temporarily.––

(1) Notwithstanding anything contained in this Chapter or any other provisions of this Act
or in any judgment, decree, order or scheme of any Court, Charity Commissioner or any
other authority, where a committee of management has been appointed by the State
Government under section 56E in respect of any endowment or endowments, and the State
Government is of opinion that for better management and administration of the endowments,
the management of the said endowments should be taken over temporarily by the State
Government and then should be governed by a scheme or schemes framed by the Charity
Commissioner or should be handed over again to the committee as reconstituted, the State
Government may, by notification in the Official Gazette,— (a) terminate the appointment of all
the existing members of the committee (including the Chairman and the Treasurer) , even
before the expiry of their term of office of five years, on and from such date as may be
specified in the notification, whereupon they shall be deemed to have vacated their office
on that date; (b) appoint a Government officer, from time to time, as the Administrator of
the Committee, for such period not exceeding three years as may be specified in the
notification, which may be extended by like notification, from time to time, so, however, that
the total period shall not exceed five years:Provided that, if during the said period, the
committee is reconstituted, the Administrator shall cease to hold his office from the day the
committee is reconstituted or as and when any scheme is framed by the Charity
Commissioner in respect of any endowment, the Administrator shall cease to function in
respect of that endowment from the day of scheme comes into operation. (2) During the
period the Administrator is holding his office, all the powers, duties and functions of the
committee and its members and subcommittees (if any) , under this Act or any other law
for the time being in force, shall be exercised, performed and discharged by the
Administrator and he shall be deemed to be the sole trustee in respect of the endowments
under his management under section 56D. (3) The Administrator may delegate any of his
powers, duties and functions to any officer or servant of the committee or, with the previous
approval of the State Government, to any other Government officer. (4) The Administrator
and any other Government officer to whom he may have delegated any of his powers,
duties and functions shall receive such salary and allowances from the Management Fund

42
and be subject to such other conditions of service as the State Government may, by
general or special order, determine.

56S. Power to make regulations.––

(1) The committee may, with the approval of the State Government make regulation not
inconsistent with this Act or the rules made thereunder for carrying out its functions under
this Act. (2) In particular but without prejudice to the generality of the foregoing provision,
such regulations may provide for all or any of the following matters, namely:— (i) despatch
of day-to-day proceedings and routine business of the committee under section 56J; (ii) the
manner in which any person who is not a member of a committee, or sub-committee may
be associated with such committee or sub-committee as the case may be, under section
56K; (iii) terms and conditions of service of the servants of a committee under section 56M.

56T. Non-application of certain provisions of this Act to endowments.––

Except so far as is expressly provided in the provisions of this Chapter, nothing in sections
18,19, 20, 21, 47, 50, 59, 66 and 67 shall apply to the endowments to which this Chapter
applies:Provided that, the provisions of this Chapter shall cease to apply to any such
endowment in respect of which a scheme has been framed under section 50A, and upon
framing of such scheme, the other provisions of this Act, except sections 18, 19, 20, and
21 shall apply to such endowment.

Chapter VIII Public Trust Administration Fund

57. Public Trusts Administration Fund.––

(1) There shall be established a fund to be called the Public Trusts Administration Fund.
The Fund shall vest in the Charity Commissioner. (2) The following sums shall be credited
to the said Fund, namely:— (a) fees leviable under section 18; (b) contributions made under
section 58; (c) the amount from the funds or the portion thereof credited under section
61;(d) any sum received from a private person; (e) any sum allotted by the State
Government or any local authority; and (f) any other sum which may be directed to be
credited by or under “the provisions of this Act or the Inter-State Corporation Act, 1957 or
the Bombay Statutory Corporations (Regional Reorganization) Act, 1960.

58. Contribution by public trusts to Public Trusts Administration Fund.––

43
 (1) Subject to the provisions of this section, every public trust shall pay to the Public
Trusts Administration Fund annually such contribution at a rate or rates not exceeding five
per cent, of the gross annual income, or of the gross annual collection or receipt, as the
case may be, as may be notified, from time to time, by the State Government, by order
published in the Official Gazette. The contribution shall be paid on such date and in such
manner as may be prescribed. The contribution payable under this section shall— (i) in the
case of a dharmada, be fixed at a rate or rates on the gross annual collection or receipts
of the dharmada; (ii) in the case of other public trusts, be fixed at a rate or rates on the
gross annual income of such public trust.Explanation 1.—For the purposes of this sub-section
―gross annual collection or receipt‖ or ―gross annual income‖ does not include any donations
received by any dharmada or public trust from another dharmada or public trust registered
under this Act.Explanation 2.— (a) For the purpose of this sub-section ―gross annual income‖
means gross income from all sources in a year (including all donations and offerings) , but
does not include any payment made or anything given with a specific direction that it shall
form part of the corpus of the public trust, nor include any deductions which the State
Government may allow by rules:Provided that, the interest or income accruing from such
payment made or thing given in the years following that in which they were given or made
shall be taken into account in calculating the gross annual income. (b) Where a public trust
conducts a business or trade as one of its activities for the purpose of assessing the
contribution as respects that activity, the net annual profits of such business or trade shall
be treated as the gross annual income of the business or trade. (2) The State Government
may exempt from payment of contribution public trusts which are exclusively for the purpose
of the advancement and propagation of education, or exclusively for the purpose of water
conservation, or exclusively for the purpose of development of forest, horticulture or
agriculture, or exclusively for the purpose of welfare of the Schedule Castes, Schedule
Tribes, Denotified Tribes, Nomadic Tribes or Women, or exclusively for the purpose of
medical relief or veterinary treatment of animals, or exclusively for the purpose of relief of
distress caused by scarcity, drought, flood, fire or other natural calamity, and may also
exempt from the payment of contribution any donations forming part of the gross annual
income and which are actually spent on the relief of distress caused by scarcity, drought,
flood, fire or other natural calamity. If any question is raised whether a trust falls in any
exempted class of trusts or whether any donations are donations which qualify for
exemption from contribution under this subsection, the decision of the State Government on
the question, obtained in the manner prescribed, shall be final. (3) The State Government
may, by order published in the Official Gazette, reduce, whether prospectively or
retrospectively, the rate or rates at which the contribution fixed under sub-section (1) is

44
payable by any class of public trusts and may in like manner remit the whole of such
contribution or any part thereof, regard being had to the nature of the objects of the class
of public trusts, or the smallness of the income thereof. (4) In determining the rate or rates
of contribution to be notified under sub-section (1) , the State Government shall take into
consideration the balance available in the Public Trusts Administration Fund and the
estimated income and expenditure (including any capital expenditure) of the Charity
Organization and ensure that the levy has reasonable correlation with the services rendered
or to be rendered or any expenditure incurred or to be incurred for carrying out the
purposes of this Act. For this purpose, the rates of contribution may be increased or
decreased, or reductions or remissions may be granted, from time to time, prospectively or
retrospectively, by the State Government, by an order or orders made as provided in this
section and published in the Official Gazette. (5) Notwithstanding anything contained in the
foregoing provisions in this section, on and after the commencement of the Bombay Public
Trusts (Amendment) Act, 1983, every trustee of a public trust liable to pay contribution
shall, while filing a copy of the balance sheet and income and expenditure account under
sub-section (1A) of section 34, pay in advance the whole amount of the annual contribution
of the public trust computed at the rate fixed under sub-section (1) of this section,
according to specified percentage of the gross annual income, or of the gross annual
collection or receipt, as the case may be, as shown in the balance sheet and income and
expenditure account, in such manner, and subject to such adjustments to be made after the
contribution payable is assessed, as may be prescribed.

59. Penalties as recovery of contribution.––

(1) If the trustee of a public trust (other than the Charity Commissioner) or the person
charging or collecting dharmada fails to pay the contribution under section 58 he shall be
liable to penalties provided in section 66. (2) The Charity Commissioner may also make an
order directing the bank in which or any person with whom any money belonging to the
public trust are deposited to pay the contribution from moneys as may be standing to the
credit of the public trust or may be in the hands of such person or may from time to time
be recovered from or on behalf of the public trust by way of deposit by such bank or
person and such bank or person shall be bound to obey such order. Every payment made
pursuant to such order shall be a sufficient discharge to such bank or person from all
liability to the public trust in respect of any sum or sums so paid by it or him out of the
moneys belonging to the public trust so deposited with the bank or person. (3) Any bank or
person who has been ordered under sub-section (2) to make the payment may, appeal to

45
the State Government, and the State Government may after making such inquiry as it thinks
fit, confirm, modify or cancel such order.

60. Application of Public Trusts Administration Fund.––

(1) The Public Trusts Administration Fund shall, subject to the provisions of this Act and
subject to the general or special order of the State Government, be applicable to the
payment of charges for expenses incidental to the regulation of public trusts and generally
for carrying into effect the provisions of this Act. (2) The custody and investment of the
moneys to be credited to the Public Trusts Administration Fund and the disbursement and
payment therefrom shall be regulated and made in the prescribed manner.

61. State Government to direct crediting of funds constituted under any Act in
Schedule to Public Trusts Administration Fund constituted under this
Chapter.––

On the application of this Act to any public trust or class of public trusts which may have
been registered under any of the Acts specified in Schedule A or Schedule AA, the State
Government may direct that the Charity Commissioner shall recover any arrears due under
any such Act and that the amount of any fund or for the administration of public trusts
constituted under the said Act for the region or sub-region in which such public trust or
class of public trust was registered or any portion thereof including the arrears recovered by
the Charity Commissioner shall be credited to the Public Trusts Administration Fund
constituted under this Chapter.

Chapter IX * * *

Chapter X Offences and Penalties

66. Penalties.––

Whoever contravenes any provision of any of the sections mentioned in the first column of
the following table shall, on conviction, for each such offence, be punished with fine which
may extend to the amount mentioned in that behalf in the third column of the said
table.Explanation.—- The entries in the second column of the said table headed “Subject” are
not intended as the definitions of offences described in the sections mentioned in the first
column or even as abstracts of those sections, but are inserted merely as references to the
subject of the sections, the numbers of which are given in the first column:—

Section Subject Fine which may be

46
 imposed

1 2 3

Section 18, sub-sections Duty of trustee to make an application to Deputy Rs. 10,000
(1) and (4) or Assistant Charity Commissioner for registration
of public trust within time.

Section 18, sub-section (7) Duty of trustee to send memoranda of movable Rs. 10,000
property to certain officers and authorities within
time

Section 22 Failure to report a change Rs. 10,000

Section 22B Failure to make an application within the time Rs. 10,000
provided for

Section 22C Failure to send memoranda within the time Rs. 10,000
provided for.

Section 29 Duty of an executor to apply for the registration of Rs. 10,000

a public trust within the time provided for.

Section 32 Duty to keep regular accounts. Rs. 10,000

Section 35 Failure or omission to invest money in public Rs. 10,000

securities.

Section 59 Failure to pay contribution under section 58 by a Rs. 10,000

trustee (other than the Charity Commissioner) or
by a person charging or collecting dharmada.

66A. Punishment for contravention of provisions of Section 36.––

Whoever alienates or attempts to alienate any immovable property of the trust without the
previous sanction of the Charity Commissioner in contravention of the provision of section
36 shall, on conviction, be punished with simple imprisonment, which may extend to six
months or with fine, which may extend to rupees twenty-five thousand, or with both.

66B. Punishment for contravention of provisions of section 41AA.

47
Whoever fails without reasonable cause to comply with any directions issued under section
41AA shall, on conviction, be punished with simple imprisonment, which may extend to
three months or with fine which may extend to rupees twenty thousand, or with both.

67. Other offences.––

Whoever contravenes any of the provisions of this Act or the rules for which no specific
penalty has been provided by this Act or fails without reasonable cause to comply with any
order passed or direction issued under any of the provisions of this Act by the Charity
Commissioner, Joint Charity Commissioner or Deputy or Assistant Charity Commissioner
shall, on conviction, be punished with fine which may extend to Rs. 10,000.

67A. Compounding of offence.––

(1) The officer not below the rank of Assistant Charity Commissioner under whose direction
the complaint has been lodged may, either before or after the institution of proceedings for
any offence punishable under this Act, on receipt of composition amount, which he deems
fit, having regard to the nature of the default, past and present conduct of the accused and
other relevant factors, may authorize compounding of offence:Provided that, the composition
amount shall not exceed one-fourth of the maximum amount of fine provided under the
respective sections. (2) The amount of composition of offences so recovered shall be
credited to the Public Trust Administration Fund.

Chapter XI Functions of Charity Commissioner, Procedure, Jurisdiction and Appeals.

68. Duties, functions and powers of Deputy or Assistant Charity

Commissioner.––

For the purposes of this Act, the following shall be the duties and functions to be
performed and powers to be exercised by the Deputy or Assistant Charity Commissioner for
the region or sub-region for which he is appointed, namely:— (a) to keep and maintain such
books, entries and other documents as may be prescribed under section 17; (b) to hold an
inquiry under section 19 or 22 for any of the purposes mentioned in the said section; (c) to
record entries in the register kept under section 17 and to make amendments in the said
entries or the cancellation of the entries under section 22; (cc) to send a memorandum
under section 28/A; (d) to enter on and inspect any trust property, to call for and inspect
any proceedings of a trustee and to call for any return, statement, account or report from

48
trustees or any person connected with a public trust under section 37; (e) to permit
inspection of any statement, notice, intimation, account, audit note or any other document;
(f) * * * (g) to exercise such other powers and to perform such duties and functions as
may be prescribed.

69. Duties, functions and powers of Charity Commissioner.––

For the purposes of this Act, the following shall be the duties to be performed and powers
to be exercised by the Charity Commissioner, namely:— (a) the general superintendence of
the administration and carrying out the purposes of this Act under section 3; (b) power to
entertain and dispose of appeals from the findings of a Deputy or Assistant Charity
Commissioner under section 20, 22 or 28; (c) power to determine which of the Deputy or
Assistant Charity Commissioners shall proceed with an inquiry relating to the registration of
any public trust under section 25; (d) power to direct a special audit of the accounts of a
public trust under section 33; (e) power to require an auditor to forward to him a copy of a
balance sheet and income and expenditure account under section 34; (f) power to permit a
trustee to invest money of a public trust in any manner other than in public securities under
section 35; (g) power to sanction a sale, mortgage, exchange, gift or lease of immovable
property belonging to a public trust under section 36; (h) power to enter on and inspect any
trust property, to call for and inspect any proceedings of a trustee, and to call for any
return, statement, account or report from trustees or any person connected with a public
trust under section 37; (i) power to hold an inquiry in regard to any loss caused to a public
trust under section 40, and to order a surcharge under section 41; (j) power of the Charity
Commissioner, to act as the Treasurer of Charitable Endowments under the Charitable
Endowments Act, 1880, under section 43; (k) power to act as trustee of a public trust; (l)
power to file suit under section 50; (ll) power to frame, or modify scheme under section
50A; (m) power to give or refuse consent to the institution of a suit under section 51; (n)
power to give notice to trustees for the cypres application of the trust, money and to make
an application to the Court under section 55; (p) to exercise such other powers and perform
such other duties and functions as may be prescribed.

70. Appeals from findings of Deputy or Assistant Charity Commissioner.––

(1) An appeal against the finding or order of the Deputy or Assistant Charity Commissioner
may be filed to the Charity Commissioner in the following cases:— (a) the finding and order,
if any, under section 20; (b) the finding under section 22; (b-1) the finding under section
22A; (c) the finding under section 28; (d) the order under sub-section (3) of section 54; (e)

49
an order confirming or amending the record under section 79AA. (2) No appeal shall be
maintainable after the expiration of sixty days from the recording of the finding or the
passing of the order, as the case may be. (3) The Charity Commissioner may, after hearing
the appellant or any person appearing on his behalf for reasons to be recorded in writing
either annul, reverse, modify or confirm the finding or the order appealed against or he may
direct the Deputy or Assistant Charity Commissioner to make further inquiry or to take such
additional evidence as he may think necessary or he may himself take such additional
evidence.

70A. Charity Commissioner to call for and examine records and proceedings
before Deputy or Assistant Charity Commissioner.––

(1) The Charity Commissioner may in any of the cases mentioned in section 70, either
suomotu or on application call for and examine the record and proceedings of such case
before any Deputy or Assistant Charity Commissioner for the purpose of satisfying himself
as to the correctness of any finding or order recorded or passed by the Deputy or Assistant
Charity Commissioner and may either annul, reverse, modify or confirm the said finding or
order or may direct the Deputy or Assistant Charity Commissioner to make further inquiry or
take such additional evidence as he may think necessary or he may himself take such
additional evidence:Provided that the Charity Commissioner shall not record or pass any
orders without giving the party affected therby an opportunity of being heard. (2) Nothing in
sub-section (1) shall entitle the Charity Commissioner to call for and examine the record of
any case— (a) during the period in which an appeal under section 70 can lie against any
finding recorded by the Assistant or Deputy Charity Commissioner in such case, or (b) in
which an order has been passed either in an appeal made under section 70 or 71 or on
an application under section 72.

71. Appeal to Divisional Commissioner.––

(1) The appeal to the Divisional Commissioner under sub-section (2) of section 51 against
the decision of the Charity Commissioner refusing consent to the institution of the suit shall
be filed within sixty days from the date of such decision in such form and shall be
accompanied by such fee as may he prescribed. (2) The Divisional Commissioner after
making such inquiry as it thinks fit may confirm, revoke or modify the decision of the
Charity Commissioner. (3) The decision of the Divisional Commissioner shall be final and
conclusive.

50
72. Application from Charity Commissioner’s decision under section 40, 41,
41C and 43 (2) (a) and (c) , 50A, 70 or 70A, etc.––

(1) Any person aggrieved by the decision of the Charity Commissioner under section 40,
41, 41C and 43 (2) (a) and (c) , 50A, 70 or 70A or on the questions whether a trust exists
and whether such trust is a public trust or whether any property is the property of such
trust may, within sixty days from the date of the decision, apply to the court to set aside
the said decision. (1A) No party to such application shall be entitled to produce additional
evidence, whether oral or documentary, before the Court, unless the Deputy or Assistant
Charity Commissioner or the Charity Commissioner has refused to admit evidence which
ought to have been admitted or the Court requires any document to be produced or any
witness to be examined to enable it to pronounce judgment or for any other substantial
cause the Court thinks it necessary to allow such additional evidence:Provided that
whenever additional evidence is allowed to be produced by the Court, the Court shall record
the reason for its admission. (2) The court after taking evidence if any, may confirm, revoke
or modify the decision or remit the amount of the surcharge and make such orders as to
costs as it thinks proper in the circumstances. (3) Pending the disposal of an application
under sub-section (2) , all proceedings for surcharge shall be stayed if the person aggrieved
makes out a prima facie case for a stay order. (4) An appeal shall be to the High Court,
against the decision of the court under sub-section (2) as if such decision was a decree
from which an appeal ordinarily lies.Explanation.— In this section, the expression “decision”
shall include a scheme framed or modified under section 50A.

73. Officers holding inquiries to have powers of civil court.––

In holding inquiries under this Act, the officer holding the same shall have the same powers
as are vested in courts in respect of the following matters under the Code of Civil
Procedure, 1908 in trying a suit— (a) proof of facts by affidavits, (b) summoning and
enforcing the attendance of any person and examining him on oath, (c) ordering discovery
and inspection, and compelling the production of documents, (d) issuing of commissions.

73A. Power of inquiry officer to join persons as party to proceedings.––

In any proceedings under this Act, any person having interest in the public trust may be
joined as a party to such proceedings on an application made by such person on such
terms and conditions as the officer holding the inquiry may order.

74. Inquiries to be judicial inquiries.––

51
All inquiries and appeals under this Act shall be deemed to be judicial proceedings within
the meaning of sections 193, 219 and 228 of the Indian Penal Code.

74A. Charity Commissioner, Joint Charity Commissioner, Deputy Charity

Commissioner, etc., to be deemed civil court within sections 480 and 482 of
Criminal Procedure Code.––

When the State Government so directs, the Charity Commissioner, Joint Charity
Commissioner or Director of Accounts or any Deputy or Assistant Charity Commissioner
shall be deemed to be a civil court within the meaning of sections 480 and 482 of the
Code of Criminal Procedure,
1898.

75. Limitation.––

In computing the period of appeal under this Chapter, the provisions of sections 4, 5,12 and
14 of the Indian Limitation Act, 1908, shall apply to the filing of such appeals.

76. Civil Procedure Code to apply to proceedings before Court under this
Act.––

Save in so far as they may be inconsistent with anything contained in this Act, the
provisions of the Code of Civil Procedure, 1908, shall apply to all proceedings before the
court under this Act.

77. Recovery of sums due under section 18, 20, 41, 79A, 79C or 79CC or
rules.––

All sums payable under section 18, 20, 41, 79A, 79 C or 79CC or under any rule, if not
paid shall notwithstanding anything contained in any law be recoverable as an arrear of
land revenue.

Chapter XII Miscellaneous

78. Charity Commissioner and other officers to be public servants.––

The Charity Commissioner, Deputy and Assistant Charity Commissioners, the Director and
Assistant Director of Accounts, Inspectors and other subordinate officers appointed under

52
this Act shall be deemed to be public servants within the meaning of section 21 of the
Indian PenalCode.

79. Decision of property as public trust property.––

(1) Any question, whether or not a trust exists and such trust is a public trust or particular
property is the property of such trust, shall be decided by the Deputy or Assistant Charity
Commissioner or the Charity Commissioner in appeal as provided by this Act. (2) The
decision of the Deputy or Assistant Charity Commissioner or the Charity Commissioner in
appeal, as the case may be, shall, unless set aside by the decision of the Court on
application or of the High Court in appeal be final and conclusive.

79AA. Power to finalize reconstructed record.––

(1) Whenever any record kept in any Public Trust Registration Office is damaged or
destroyed due to any cause whatsoever and is reconstructed, the Assistant or Deputy
Charity Commissioner may by notice in the prescribed form published in the Official
Gazette, and also in any newspapers with wide circulation in the region concerned,
announce the fact of the reconstruction of the record, and call upon all persons having
interest in the public trusts which are entered in such reconstructed record to show cause
in writing within a period of thirty days from the publication of the notice in the Official
Gazette, why such record should not be treated as final and conclusive. A copy of such
notice may be sent also to the trustees of such public trusts. (2) On the expiry of the
period of thirty days aforesaid, the Assistant or Deputy Charity Commissioner shall, after
hearing the trustees and persons having interest, if any, and after duly considering the
objections and documents produced, if any, and if necessary, after making an inquiry,
record his findings with the reasons therefor, and either confirm or amend the record
including any entries therein accordingly. The record so confirmed or amended shall, subject
to the provisions of this Act, be final and conclusive, as if such record was made or
maintained under this Act.

79A. Recovery of costs and expenses incurred on legal proceedings by Charity

Commissioner, etc.––

All costs, charges and expenses incurred by the Charity Commissioner or the Deputy or
Assistant Charity Commissioner as a party to, or in connection with, any legal proceedings
in respect of any public trust shall, notwithstanding anything contained in section 79B, be
payable out of the property or funds of the public trust, except in cases where the liability

53
to pay the same has been laid on any party or other person personally and the right to
reimbursement under this section has been negatived in express terms.

79B. Costs of proceedings before Courts including High Court.––

The costs, charges and expenses of and incidental to any suit, appeal or application to any
court including the High Court under this Act shall be in the direction of the court, which
may, subject to the provisions of section 79A, direct the whole or any part of such costs,
charges and expenses to be met from the property or funds of the public trust concerned
or to be borne and paid in such manner and by such persons as it thinks fit.

79C. Costs of proceedings before Charity Commissioner, etc.––

The costs, charges and expenses of and incidental to any appeal, application or other
proceeding, before the Charity Commissioner or the Deputy or Assistant Charity
Commissioner shall be in his discretion and he shall have full power to determine by whom
or out of what property or funds and to what extent such costs, charges and expenses are
to be paid.

79CC. Compensatory costs for frivolous or vexatious proceedings before

Charity Commissioner, etc.––

(1) If in an inquiry under the provisions of this Act, the Charity Commissioner or the
Deputy or Assistant Charity Commissioner is of opinion that the application on which such
inquiry was commenced was either frivolous or vexatious, the Charity Commissioner, the
Deputy or as the case may be, Assistant Charity Commissioner, may at the request of the
person against whom such application was made (hereinafter referred to as “the opponent”)
call upon the person making the application (hereinafter referred to as “the applicant”) to
show cause why the applicant should not pay compensation to the opponent and if the
applicant is not present, direct the issue of a summons to him to appear and show cause
aforesaid. (2) If the Deputy or Assistant Charity Commissioner or the Charity Commissioner,
as the case may be, is satisfied that the application was either frivolous or vexatious he
may, after recording reasons, order that compensation to such amount not exceeding five
hundred rupees as he may determine be paid by the applicant to the opponent. (3) An
appeal shall lie against an order awarding compensation under sub-section (2) if made by
the Deputy or Assistant Charity Commissioner to the Charity Commissioner and if made by
the Charity Commissioner to the Maharashtra Revenue Tribunal and the provisions of
sections 70 and 71 shall mutatis mutandis apply to such appeal.

54
79D. Court fee to be paid as prescribed by Schedule ‘B’.––

Notwithstanding anything contained in the Court-fees Act, 1870, the documents described in
columns 1 and 2 of Schedule B hereto shall bear a Court-fee stamp of the value specified
in column 3 thereof.

80. Bar of jurisdiction.––

Save as expressly provided in this Act, no Civil Court shall have jurisdiction to decide or
deal with any question which is by or under this Act to be decided or dealt with by any
officer or authority under this Act, and in respect of which the decision or order of such
officer or authority has been made final and conclusive.

81. Indemnity from suits and proceedings.––

No suit, prosecution or other proceeding shall be instituted against the State Government or
any officer or authority or representative of the Charity Commissioner in respect of anything
in good faith done or purporting to be done under this Act.

82. Trial of offences under this Act.––

No court inferior to that of a Presidency Magistrate or a Magistrate of the First Class shall
try an offence punishable under this Act.

83. Previous sanction of Charity Commissioner necessary for prosecution.––

No prosecution for an offence punishable under this Act, shall be instituted without the
previous sanction of the Charity Commissioner.

84. Rules.––

(1) The State Government may make rules for the purpose of carrying into effect the
provisions of this Act. (2) In particular and without prejudice to the generality of the
foregoing provision, such rules may be made for all or any of the following matters,
namely:— (a) the manner of publishing the notification under sub-section (4) of section 1;
(aa) the qualifications of the Director, and Assistant Directors of Accounts appointed under
section 6; (b) the powers, duties and functions of the officers other than the Charity
Commissioner, Deputy and Assistant Charity Commissioners appointed under this Act in

55
addition to those provided for in this Act; (c) the powers, duties and functions of assessors
in addition to those provided for in this Act; (d) the limits of regions and sub-regions to be
prescribed under subsection (1) of section 14; (e) the books, indices and registers to be
kept and maintained in Public Trusts Registration Office and the particulars to be entered in
such books, indices and registers under section 17; (f) the form in which an application for
the registration of a Public Trust is to be made and the fee to be paid for the same, the
other particulars to be entered therein and the manner in which an application for such
registration to be signed and verified and the value and kind of trust property in respect of
which it shall not be necessary to give particulars under section 18; (g) the manner in
which an inquiry has to be made by the Deputy or Assistant Charity Commissioner under
sections 19 and 39; (h) the form in which the trustee has to make a report regarding the
change under sub-section (1) , and the manner of holding inquiry under sub-section (2) of
section 22; (i) the book in which the Deputy or Assistant Charity Commissioner shall make
an entry under section 23; (j) the form of memorandum to be sent by trustees and Deputy
and Assistant Charity Commissioners for registration and the manner in which the
memorandum shall be signed and verified; (j-1) the inquiry to be made under sub-section
(1) of section 28; (j-2) the amount of annual income of a public trust exceeding which it is
liable to prepare and submit budget, and the form or forms of such budget, under sub-
section (1) of section 31A; (k) the particulars to be entered in the accounts under sub-
section (2) of section 32 and the fee to be paid for special audit under section 33; (k-1) the
manner of payment of expenses under sub-section (5) of section 41B; (l) * * * (m-1) the
manner of making an application under sub-section (1) of section 50A; (n) the form of
account to be submitted under sub-section (2) , and the manner of passing order under
sub-section (3) of section 54; (o) the time within which trustees may apply to the Court for
directions under sub-section (1) of section 55; (o-1) the conditions and restrictions subject to
which the committee shall deal with property under sub-section (2) of section 56E; (o-2) the
honorarium or fees and allowances to be paid to chairman, treasurer and members of a
committee under sub-section (2) of section 56I and the manner in which such honorarium,
or fees and allowances shall be paid; (o-3) the interval at which a committee shall meet
and the procedure it shall follow under section 56J; (o-4) the terms and conditions as to
service on which secretaries and officers of a committee are appointed under section 56M;
(o-5) the manner in which the custody and investment of, and the disbursement and
payment from the Management Fund and the audit of accounts of the Fund shall be
regulated under section 56QQ; (p) the date on which and the manner in which every public
trust shall pay the annual contribution under section 58 and the deductions to be allowed
under the explanation to sub-section (1) and the manner of obtaining the decision of the

56
State Government on whether or not a trust falls in any of the exempted class of public
trusts under sub-section (2) of that section and the manner in which the custody and
investment of and the disbursement and payment from, such fund shall be made under
section 60; (q) * * * (r) * * * (s) the other powers, duties and functions to be exercised
and performed by a Deputy or Assistant Charity Commissioner under section 68; (t) the
other powers, duties and functions to be exercised and performed by the Charity
Commissioner under section 69; (u) the form of appeal and the fee to be paid for filing
such appeal under section 71; (v) the custody and investment of the money to be credited
to the Public Trusts Administration Fund and the disbursement and payment therefrom; (v-1)
the form of notice in respect of reconstructed record under sub-section (1) of section 79AA;
(w) any other matter which is to be or may be prescribed under this Act. (3) All rules made
under this section shall be subject to the condition of previous publication. (4) Every rule
made under this section shall be laid, as soon as may be after it is made before each
House of the State Legislature while it is in session for a total period of thirty days which
may be comprised in one session or in two successive sessions and if before the expiry of
the session in which it is so laid or the session immediately following both Houses agree in
making any modification in the rule or both Houses agree that the rule should not be made
and notify such decision in the Official Gazette, the rule shall from the date of such
notification have effect only in such modified form or be of no effect, as the case may be ;
so however, that any such modification or amendment shall be without prejudice to the
validity or anything previously done or omitted to be done under that rule.

85. Repeal

(1) The Religious Endowments Act, 1863, is hereby repealed. (2) On the date of the
application of the provisions of this Act to any public trust or class of public trusts under
sub-section (4) of section 1 (hereafter in this section referred to as the said date) the
provisions of the Act specified in Schedule A which apply to such trust or class of trusts
shall cease to apply to such trust or class of trusts. (3) Save as otherwise provided in this
section such repeal or cessation shall not in any way affect— (a) any right, title, interest,
obligation or liability already acquired, accrued or incurred before the said date, (b) any
legal proceedings or remedy in respect of such right, title, interest, obligation or liability, or
(c) anything duly done or suffered before the said date. (4) Notwithstanding anything
contained in sub-section (5) all proceedings pending before any authority under the
MussalmanWakf Act, 1923 (as amended by the MussalmanWakf (Bombay Amendment) Act,
1935) , the Bombay Public Trusts Registration Act, 1935, or the Parsi Public Trusts

57
Registration Act, 1936, immediately before the said date shall be transferred to the Charity
Commissioner and any such proceedings shall be continued and disposed of by the Charity
Commissioner or the Deputy or Assistant Charity Commissioner as the Charity
Commissioner may direct. In disposing of such proceedings the Charity Commissioner, the
Deputy Charity Commissioner or the Assistant Charity Commissioner, as the case may be,
shall have and exercise the same powers which were vested in and exercised by the Court
under the MussalmanWakf Act, 1923 (as amended by the MussalmanWakf (Bombay
Amendment) Act, 1935 and by the Registrars under the Bombay Public Trusts Registration
Act, 1935) , and the Parsi Public Trusts Registration Act, 1936, and shall pass such orders
as may be just or proper. (5) All records maintained by the authority or Court under any of
the Acts referred to in sub-section (4) shall be transferred to the Charity Commissioner or
to the Deputy or Assistant Charity Commissioner as the Charity Commissioner may direct.

86. Further repeals and savings consequent on commencement of Bombay

XXIX of 1950 in other areas of State.––

(1) On the commencement of this Act in that area of the State to which it is extended by
the Bombay Public Trusts (Unification and Amendment) Act, 1959 — (i) the Religious
Endowments Act, 1863, as in force in the Saurashtra and Kutch areas of the State, (ii) the
Madhya Pradesh Dharmadaya Funds Act, 1951, as in force in the Vidarbha Region of the
State, and (iii) any law relating to public trusts to which Chapter VII-A applies, to the extent
to which it corresponds to the provisions of this Act, shall stand repealed. (2) On the date
of application of the provisions of this Act to any public trust or class of public trusts under
sub-section (4) of section 1 (hereinafter in this section referred to as the said date) , the
provisions of the Acts specified in Schedule AA which apply to such trust or class of trusts
shall cease to apply thereto. (3) Save as otherwise provided in this section, such repeal or
cessation shall not in any way affect— (a) anything duly done or suffered under the laws
hereby repealed or ceasing to apply before the said date; (b) any right, title, interest,
obligation or liability already acquired, accrued or incurred before the said date under the
laws hereby repealed or ceasing to apply; (c) any legal proceedings or remedy in respect of
such right, title, interest, obligation or liability:Provided that, if on the said date, any legal
proceeding in respect of any public trust is pending before any court under any enactment
specified in Schedule AA to which the State Government, Commissioner, Registrar or any
officer of the State Government is a party, the Charity Commissioner, shall be deemed to
be substituted in those proceedings for the State Government, Commissioner, Registrar or
as the case may be, the officer, and such proceedings shall be disposed of by such

58
court:Provided further that, every proceeding pending before any criminal court under the
Madhya Pradesh Dharmadaya Funds Act, 1951 shall abate on the repeal of that Act under
sub-section (1). (4) Notwithstanding anything contained in sub-section (3) , all proceedings
pending immediately before the said date before any authority (other than a court) under
any enactment specified in Schedule AA shall be continued and disposed of by such
authority under that enactment as if the Bombay Public Trusts (Unification and Amendment)
Act, 1959, had not been passed. (5) Notwithstanding the cessation of any enactment
specified in Schedule AA all arrears of contributions and other sums payable under any
such enactment shall be recoverable under the provisions of this Act, as if they had been
recoverable under the provisions of this Act. (6) All records maintained by Registrars under
the Madhya Pradesh Public Trusts Act, 1951, shall be transferred to the Charity
Commissioner or to the Deputy or Assistant Charity Commissioner as the Charity
Commissioner may direct.

87. Act not to apply to certain wakf to which Act XXIX of 1954 applies or to
Gurudwara governed by Hyderabad Act XXXVII of 1956.––

Nothing contained in this Act shall apply to— (a) those Wakfs in certain areas of the State
to which the provisions of the Wakf Act, 1954, have continued to apply; or (b) the
NandedGurudwara, the administration of which is governed by the Nanded Sikh
GurudwaraSachkhand Shri HazurApchalnagar Sahib Act, 1956.

88. Provision for removal of difficulties.––

If any difficulty arises in giving effect to the provisions of this Act, the State Government
may by an order published in the Official Gazette, do anything not inconsistent with the
provisions of this Act which appears to it to be necessary or expedient for the purpose of
removing the difficulty.

59
 SCHEDULE A
(See sections 28, 61 and 85) (1) The Charitable and Religious Trusts Act, 1920. (2) The
MussalmanWakf Act, 1923, as amended by Bombay Act XVIII of 1935. (3) The Bombay Public
Trusts Registration Act, 1935. (4) The Parsee Public Trusts Registration Act, 1936. (5) The
Baroda Public Institutions Act (Baroda Act No. VI of Samvat 1961). (6) The Religious
Endowments Act, 1863 as applied to the Jamkhandi State in 1890. (7) The Deosthan Rules, 1912
of the Jamkhandi State as amended by Jamkhandi Act No. 1 of 1948.

SCHEDULE AA
(1) The Charitable and Religious Trusts Act, 1920, in its application to the areas of the State
other than the area comprised in the pre-Reorganization State of Bombay. (2) The Savantwadi
Devasthan Act, 1932. (3) The (Hyderabad) Endowment Regulation, 1349, Fasli. (4) The Madhya
Pradesh Public Trusts Act, 1951.
Schedule B

Section Description of Documents Value

1 2 3

18 (1) Application for the registration of a public trust Rs. 100

22 (1) Report of any change or proposed change in any of the entries recorded in Rs. 100
the register kept under section 17

25 (1) Application of any person having interest in a public trust to the Charity Rs. 100
Commissioner to determine which of the Deputy or Assistant Charity
Commissioner shall proceed with an inquiry under section 19 or 22 in regard
to any public trust.

29 Application by the executor of a Will for the registration of a public trust Rs. 100
created by such Will.

35 Application for permission of Charity Commissioner for investing trust

money in any other manner--

(a) where the amount to be invested does not exceed Rs. 5,000: Rs. 50

(b) where the amount to be invested exceeds Rs. 5,000 but does not Rs. 100
exceed Rs. 15,000:

60
 (c) in any other case where the amount to be invested exceeds Rs. 15,000 Rs. 150

36 (1) Application for sanction of the Charity Commissioner for--

(a) sale, exchange or gift of an immovable property--

(i) where the value of the property involved does not exceed Rs. 5,000; Rs. 50

(ii) where the value of the property involved exceeds Rs. 5,000 but does not Rs. 100
exceed Rs. 15,000

(iii) in any other case where the value of the property involved exceeds Rs. Rs. 250
15,000

(b) Lease of immovable property--

(i) where the average annual rent recovered does not exceed Rs. 500; Rs. 25

(ii) where the average annual rent recovered exceeds Rs. 500 but does not Rs. 50
exceed Rs. 1,000;

(iii) in any other case where the average annual rent recovered exceeds Rs. Rs. 100
1,000;

(c) Authorising trustees to dispose of immovable property--

(i) where the value of the property involved does not exceed Rs. 5,000; Rs. 25

(ii) where the value of the property involved exceeds Rs. 5,000 but does not Rs. 100
exceed Rs. 15,000;

(iii) in any other case where the value of the property involved exceeds Rs. Rs. 150
15,000.

36 (2) Application for revocation of sanction given by the Charity Commissioner Rs. 100
under clause (a) or (b) of sub-section (1) of section 3d.

36A (3) Application by a trustee to borrow money--

(i) where the amount to be borrowed does not exceed Rs. 5,000; Rs. 25

(ii) where the amount to be borrowed exceeds RS. 5,000 but does not Rs. 50
exceed Rs. 15,000;

61
 (iii) in any other case where the amount to be borrowed exceeds Rs. Rs. 100
15.000.

41B (1) Application containing a complaint by a person having interest in a public Rs. 100
trust to institute an inquiry

41P (1) Application for removal or dismissal of a trustee. Rs. 100

41E (1) Application for temporary injunction for the purposes specified in section Rs. 100
41E (1)

47 (1) Application under sub-section (1) of section 47 Rs. 100

47 (5) Appeal to the High Court Rs. 100

50A Application to the Charity Commissioner for framing or modifying a scheme Rs. 100

51 (A) Application to the Charity Commissioner for consent to file a suit of the Rs. 100
nature specified in section 50

55 Application to the court for directions Rs. 100

56A Application to opinion, advice or direction Rs. 100

59 (3) Appeal to the State Government against the order of the Charity Rs. 100
Commissioner for the payment of contribution by a bank or person from the
money standing to the credit of the public trust with such bank or person.

70 (1) Appeal to the Charity Commissioner against the finding of Deputy or Rs. 100
Assistant Charity Commissioner under section 20, 22 or 28 or order under
sub-section (3) of section 54.

70A Application under section 70A. Rs. 100

71 (1) Appeal to the Divisional Commissioner against the decision of the Charity Rs. 100
Commissioner refusing consent to the institution of a suit.

72 (1) Application to the court against the decision of the Charity Commissioner Rs. 100
under section 40, 41, 41C, 43 (2) (a) and (c) or 70 or on the question
whether a trust exists and whether such trust is a public trust or whether
any property is the property of such trust.

72 (4) Appeal to the High Court against the decision of the court under sub-section Rs. 100

62
 (2) of section 72.

73A Application by a person having interest in a public Trust for joining as a Rs. 10
party to proceedings under this Act.

Mukhyarnama or Vakaldatnama when presented for the conduct of any Rs. 10

inquiry, appeal or other proceeding to the Charity Commissioner or the
Deputy or Assistant Charity Commissioner.

Application to the Charity Commissioner or the Deputy or Assistant Charity Rs. 5

Commissioner for copies under the Act.

Any other application or petition presented to the Charity Commissioner or Rs. 10

the Deputy or Assistant Charity Commissioner.

63
 FAQ ON THE MAHARASTRA PUBLIC TRUSTS ACT, 1950

Q. What is a trust?

1. As per Section 2(13) BPT Act, 1950 Trust means an express or constructive trust for either a public
religious or charitable purpose or both and includes a temple, math, a wakf, church, synagogue, agiary
or other place of public religious workship, a dharmada or any other religious or charitable endowment
and a society formed either for a religious or charitable purpose or for both and registered under the
Society Registration Act, 1860. Section 3 of the Indian Trusts Act defines a trust as “an obligation
annexed to the ownership of property and arising out of a confidence reposed in and accepted by him
for the benefit of another”.

Q. What are the mode of creation of trust?

A. A trust is created by a Deed of trust or by a Will or by scheme framed by a court or by written constitution.

Q. Is trust registration mandatory?

A. According to section 18 sub clause 1 of BPT Act, 1950 it shall be the duty of the trustee of a public trust to
get the registration of the trust for which this act has been applied to make an application for registration of
public trust. Public Trust

Q. What about the applicability of The Indian Trusts Act, 1882?

A. The Indian Trusts Act, 1882 is applicable to private trusts. The principles of this Act are applied in States that
do not have a Public Trusts Act in force. The Bombay Public Trust Act, 1950 is applicable to the whole of
Maharashtra.

Q. What is the geographic jurisdiction of the Bombay Public Trusts Act, 1950?

A. It is applicable in the states of Maharashtra and Gujarat, albeit with certain variations in the provisions in the
two States.

Q. Is it necessary to register a trust as a Society under the Act of 1860?

A. Where there is no settler and 7 or more people come together, the registration is done under the Societies Act.
However, in Maharashtra and Gujarat State, all Societies registered under the Act of 1860 are also required to
register as a trust under the BPTA 1950.

Q. What is the difference between a Public and a Private trust?

A. A public charitable trust is, where for the purpose of its objects, the beneficiaries are general public at large,
whereas, in a private trust the beneficiaries are known and certain.

Q. How can public purpose be ascertained?

A. In ascertaining whether a purpose is public or private, one has to see if the class to be benefited, or from
which the beneficiaries are to be selected, constitute a substantial body of the public. Hence, trusts which lack
the public element, such as trusts for the benefit of workmen or employees of a company, however numerous,
have been held not to be “public charitable”.

64
Q. If a trust has members of the same family on the board of trustees, does it lose its public character and
become a private trust?

A. The management of a trust or, rather, who manages the trust (i.e., members of one particular family, etc.)
does not determine the public nature of a trust. What is essential is whether the purpose of the trust and the
application of its income and property are for the benefit of the public, not who controls it.

Q. Who is a Trustee?

A. Trustee means a person in whom either alone or in association with other persons, the trust property is vested
and includes a manager. One who has accepted trusteeship and undertake to administer the trust, should know
what is expected of him. He must in the first instance examine and study the instrument of trust. A trust is
created by a Deed of trust, or by a Will or by a Scheme framed by a Court or by a written constitution.

Q. Is trust the only option for advancing public charitable purpose?

A. The legal framework in India gives non-profits a choice to register either as a trust, society with the office of
the Charity Commissioner or section 25 company with R.O.C.

Q. Is trust registration mandatory?

A. Under Section 18 sub clause 1 of B.P.T. Act, 1950, it shall be the duty of the trustee of a public trust to which
this Act has been applied to make an application for the registration of the public trust. The mode of making
application and the necessary contents are mentioned in Section 18 of B.P.T. Act, 1950.

Q. What are the advantages of registering as a public trust?

A. With regard to simplicity and ease in registration procedures, trust offers the best choice. One needs just two
trustees to start (societies require a minimum of seven), the paper work is less elaborate and in certain states
where there is no charity commissioner; the trust deed can be easily registered with the sub-registrar’s office.

Trusts also offer autonomy in management/administration. One may remain a trustee for life and new trustees
may be selectively appointed over a period of time. On the other hand, in a society or section 25 company, there
is need for a general body of members, periodic elections and annual general meetings. The set-up is more
democratic. A section 25 company is more stable than a society but less rigid than a Trust.

Q. With whom should public charitable trusts be registered?

A. With the Deputy or Assistant Charity Commissioner of the region in the State. In Mumbai it can be registered
at the office of the Charity Commissioner which is at Worli Naka, Mumbai-400 018.

Q. Are all Societies trust?

A. In view of definition of Public Trust under section 2 (13), public trust includes society formed either for a
religious or charitable purpose or for both and registered under the Societies Registration Act, 1860. All
societies registered under the S.R. Act, 1860 are converted into public trust under B.P.T.Act, 1950 after
necessary inquiry and following the procedure under B.P.T. Rules, 1951.

Q. What are the purposes for which a trust may be created?

A. According to section 9(1) of the BPTA, public charitable trusts may be registered with the office of the
charity commissioner for any one or more of the following purposes:

1. relief of poverty or distress;

2. education;

65
 3. medical relief;
4. provision for facilities for recreation or other leisure time occupation (including assistance for such
provision), if the facilities are provided in the interest of social welfare and public benefit;
5. advancement of any other object of general public utility, but does not include a purpose which relates
exclusively to religious teaching or worship.

Q. Is it necessary for a trust to have property?

A. A public charitable trust is generally floated with some property (movable or immovable) which legally vests
in the trustees. A trust may be settled with a token property of, say, ₹ 100/-.

Q. Who is a Settler and can he/she be a trustee?

A. A Settler is an individual or institution who creates or settles the trust and entrusts the trust and the trust
property to a trustee or trustees. Yes, settler can be a trustee if his / her name is added in the preamble as a
trustee.

Q. What is the minimum and maximum number of trustees required to constitute a Board of trustees?

A. The Act is silent in this regard and therefore by inference even a single trustee can be on the Board.
However, this is not a good or desirable practice. At the time of registration, the charity commissioner usually
insists on minimum of three trustees to start and run a trust. In law, there is no maximum limit to the number of
trustees on the Board of a trust. The minimum and maximum number of trustees should be clearly stated in the
trust deed.

Q. Is trusteeship for life?

A. Yes, unless a term of office is specified in the trust deed or a trustee decides to voluntarily resign, or the
charity commissioner or a court frames a scheme in this regard.

Q. How can new or additional trustees be appointed?

A. The surviving trustees may appoint new trustees (up to the limit prescribed in the trust deed) by resolutions
and filing change report with the charity commissioner.

A new or additional trustee can be appointed by the surviving trustees as per the provisions mentioned in the
trust deed.

Q. If trustees are not working properly, whom should be approached?

A. If trustees are found not to be working properly as per the constitution of the trust, then any person having an
interest can approach the competent authority i.e. Deputy or Asst. Charity Commissioner for redressal under
various provisions of B.P.T. Act, 1950.

Q. In whom is trust property vested?

A. All the properties (movable and immovable) of the trust legally vest in the trustees.

Q. How can trustees avoid conflict of interest in matters of property?

A. In principle, a trustee cannot buy the property of the trust himself and he cannot sell any of his properties to
the trust either - the mischief in both the cases being the likelihood of a conflict between his interest and his
duties as a trustee.

Q. What is the liability of a trustee?

66
A. In law, a trustee can be held personally liable. Also, all trustees are jointly and severally responsible and
liable.

There can be a criminal and or civil liability imposed including prosecutions in some cases on the trustees on
account of misappropriation, fraud, etc.. of the trust property.

Q. Can a foreigner or NRI be a trustee?

A. Foreigners or persons who are not citizens of India or a Non Resident Indians, are not specifically debarred
under the provisions of the Bombay Public Trusts Act or the Indian Trusts Act from taking up office of a trustee.

Q. Can a trustee delegate his powers?

A. A trustee cannot delegate any of his duties, functions and powers to a co-trustee or any other person though,
as a general rule, executive acts may be delegated. However, where a trustee has to exercise discretion, he must
exercise the discretion personally and cannot delegate it.

Q. Can a trustee be removed from office?

A. The charity commissioner (only in the state of Maharashtra) has powers under section 41D of the Bombay
Public Trusts Act to suspend, remove or dismiss any trustee of a public trust if:

i. there is persistent default in the submission of accounts, report or return;

ii. willful disobedience of any lawful order issued by the department;
iii. continuous neglect of duty or breach of trust;
iv. misappropriation or improper use of trust property;
v. if the trustee is convicted of an offence involving moral turpitude.

Q. What is the procedure for registering a trust?

A. The application for registration of a public charitable trust should be submitted at the office of the charity
commissioner having jurisdiction over the region/sub-region of the state in which the trust is to be registered.

The application should be made within 3 months from the date of execution of trust deed, in the prescribed form
(Schedule II) providing details regarding name of the trust, names and addresses of the trustees, mode of
succession, etc.

The trust deed should be executed on non-judicial stamp paper, the value of which would depend on the
valuation of the trust property.

In Maharashtra state, the trustee applying for registration is also required to submit an affidavit, and all co-
trustees are required to sign a consent letter. A nominal registration fee is also charged. The DCC/ACC, before
making certain enquiries for registration may order the applicant to issue a public notice for any objection from
public.

Q. In case of complaint about trust, trustee or trust property, who must be approached?

A. In case of any grievance about administration of trust, trust properties or functioning of a trustee, complaint
can be filed by any person to the Deputy or Asst. Charity Commissioner within whose jurisdiction the trust is
situated.

Q. Can any citizen get information about any trust?

67
A. Yes. Any person can get information about any trust from the concerned P.T.R. Office on depositing the
necessary charges for inspection or obtaining the certified copies. The right to get information is now also
governed by Right to Information Act, 2005.

Q. Who is supervising authority of trust?

A. Deputy or Asst. Charity Commissioner is the supervising authority of the trust situated within his territorial
jurisdiction. Charity Commissioner is the head of organization for entire Maharashtra. Joint Charity
Commissioners are the head of offices of regional level and Deputy or Asst. Charity Commissioners are the
head of offices at District level.

Q. Can information be gathered about funds of any trust?

A. Every trust is required to submit audited statement of accounts with the office of Assistant Charity
Commissioner. The information about the income and expenditure of the trust for annual year can be gathered
from the audited statements submitted to the authority.

Q. Is it necessary to record or inform any change to the authority?

A. Yes. It is mandatory to inform any change which occurs in the trust in respect of the trustees, moveable or
immovable properties etc. within a period of 90 days from the change as provided under section 22 of the B.P.T.
Act, 1950. The change so informed is necessary to be recorded on satisfaction of its legality and validity to the
authority. It is the duty of trustee to inform the change and also substantiate the same with record about its
legality and validity.

Q. Are trusts required to convene Annual General Meetings and periodic elections?

A. Unlike societies, trusts generally do not have a general body of subscribing members and, as such, there is no
legal necessity for annual general meetings or annual reports for members or periodic elections.

Q. How many meetings should the trust convene during a year and is there a procedure for it?

A. The statute books do not lay down the minimum number of times Board members must meet. The Board of
trustees may meet as often as required or as prescribed in the trust deed. Ideally, the board may meet four to six
times a year. However, this may vary. Procedures for calling and conducting meetings are usually laid down in
the trust deed. Fifteen days prior notice is generally adequate. The chairman presides over all meetings of the
Board and usually enjoys a casting vote.

Q. Are trusts allowed to generate profit?

A. Yes. Trusts are often referred to as “non-profit organizations”. The term “non-profit” or “not-for-profit”
means “non-profit distributing”. “Non-profit” does not mean the trust should not generate a profit and run in
perpetual loss. Profit, if any, should be ploughed back into the organization for “charitable purposes” and not
distributed by way of dividends, etc., to trustees or members of the organizations.

Q. What are the sources of income for a trust?

A. A trust may have the following sources of income:

1. donations from individuals, companies, trusts/foundations, government, foreign agencies, charity cash
box, etc.;
2. interest/dividends On short/long-term investments;
3. sale of products: usually prepared by beneficiaries of the trust;
4. rent: If the trust leases out its property like office space, hall, etc.;
5. membership fees/subscriptions.

68
Q. Can a trust receive corpus donation?

A. Yes. Provided the donor gives such a direction to the trust in writing.

Q. Can a trust receive anonymous donations?

A. From the financial year 2006-07, anonymous donations to charitable trusts and institutions will be taxed.
However, anonymous donations to religious trusts and institutions will not be taxed. Anonymous donations to
trusts and institutions having both religious and charitable objects will not taxed as long as they are given for
religious purpose.

Q. Can a trust give a corpus donation to another trust?

A. Yes. However, under the Income Tax Act, as amended a few years ago, one trust can donate to another trust
only from its current income and not from its accumulated funds. Yes one trust can give corpus donation to
another trust from the current income and not from the accumulated income, otherwise it will not be treated as
application of income.

Q. Can a trust sell, alienate, lease or gift immovable property?

A. Permission of the Charity Commissioner is necessary prior to sale, exchange, lease or gift of immovable
property of the trust u/s 36 of the Act.

Q. Is there a provision in the Act to prevent waste or damage to trust property?

A. Section 41E of the BPTA also empowers the charity commissioner to grant temporary injunction or to pass
any other order with the intent of staying and preventing waste, damage or improper alienation (transfer) of trust
property.

Q. Should changes in the Board of trustees be reported to the charity commissioner?

A. Under section 22 of the Bombay Public Trusts Act, whenever a change in any moveable or immovable
property or names of trustees, etc., takes place, a change report should be filed with the department in the
prescribed Schedule III.

Q. Are trusts required to contribute two per cent of the income to the charity commissioner?

A. According to section 58 of the Bombay Public Trusts Act, “Every public trust shall pay to the Public Trusts
Administration Fund annually such contribution at a rate or rates not exceeding 5% of the gross annual income,
or of the gross annual collection or receipt, as the case may be, as may be notified, from time to time, by the
State Government”. Gross annual income does not include corpus donations or deductions allowed by Rule 32
of the Bombay Public Trusts Rules, 1951.

Public trusts exclusively for secular education, medical relief, veterinary treatment of animals, and relief of
distress caused by natural calamity are exempted from payment of contribution. In the case of multi-purpose
trusts, deductions are allowed for the portion of the gross income or collection or receipt spent for any one or
more of the aforesaid purposes.

Various deductions are also permitted as mentioned in rule 32 out of the gross income of the trust.

The rate of contribution since April 1, 1989 has been 2% of the income chargeable to contribution calculated as
per rule 32.

Presently in response to a P I L filed against the Charity Commissioner the Mumbai High court has stayed the
collection of the contribution since 2009. In response to the said interim order the office of the C.C. is accepting

69
the accounts without payment of contribution subject to the final decision of the High Court or any amendment
or any instruction or notification of the Govt.

Q. Is amalgamation of trusts possible?

A. Section 50A(2) of the Bombay Public Trusts Act allows two or more public trusts to be amalgamated or
merged into one single legal entity by framing a common scheme of management or administration.

Q. What is the procedure for amalgamation?

A. The procedure for amalgamation requires a proper application with court fee stamp to be made to the charity
commissioner who, in turn, may also require the trustees to publish a notice in this regard in a newspaper. There
should be proper justification for the amalgamation, and the consent for amalgamation should preferably be
unanimous on the part of the trustees of all the trusts to be amalgamated.

After the final order is passed by the charity commissioner, those trusts which are amalgamated cease to exist as
separate legal entities and instead, a new legal entity in the form of a new amalgamated trust emerges with a
new registration number and scheme of management.

Q. What can be done if the objects of a trust become obsolete?

A. In case it becomes difficult to carry out the obsolete objects of the trust, the doctrine of cy pres (i.e., changing
the objects as close to the original as possible) can be applied for changes. Such an order can be obtained from a
civil court.

Q. Can a trust be dissolved?

A. A trust may be extinguished or terminated if “its purpose becomes unlawful” (vide section 77 of the Indian
Trusts Act, 1882). However, when a public charitable trust is properly and completely constituted, it becomes
irrevocable, even though it is voluntary. Accordingly, there is no provision under the various Public Trusts Acts
(including the Bombay Public Trusts Act, 1950) to legally terminate or dissolve a valid public charitable trust.

Q. Can a duplicate Certificate of Registration be obtained?

A. Yes. In case the Certificate of Registration is lost, destroyed or defaced the DCC/ACC on an application may
issue a duplicate certificate on payment of a nominal fee. Along with the FIR from the police station.

Q. What is a Register of public trust?

A. The office of Charity Commissioner maintains certain details of every public trust in a Register as required
by the Section-22 of the B.P.T. Act. Any change in any of the particulars recorded in this register is to be
reported by the trustee in the form of Schedule III (Change Report). It is advisable for every trust to obtain a
certified copy of the Schedule I for their record.

Q. Can we inspect the entries made in the public trust register?

A. Yes. Subject to certain conditions and on payment of a nominal fee with an application, any person having
interest or permitted on this behalf is allowed to inspect any entry or portion thereof in the register of public
trust or any statement, notice, intimation, account, audit report or any other document filed under the Act.

Q. Can copies of the entries made in the public trust register be obtained?

A. Again, on payment of a nominal fee with an application any person having interest or is permitted on this
behalf can obtain certified copies of any entry made in the register or any statement, notice, intimation, account,
audit report or any document filed under the Act, proceedings of any inquiry, appeal before charity
commissioner or any certificate issued by C.C. / DCC / ACC.

70
Q. Is it compulsory for every trust to file a budget for the next year?

A. A trustee of a Public Trust which has an annual income exceeding ₹ 5000/- for public religious trust and ₹
10,000/- in other cases, shall at least one month before the commencement of each accounting year, prepare a
budget in the form of Schedule VII-A showing the probable receipts and disbursements of the trust and submit
them to the office of the Charity Commissioner. From last one year it as become compulsory to file the budget
and also law provides that the trust needs to file the budget.

Q. Who is responsible to maintain the accounts and to get them audited?

A. Every trustee of a public trust shall keep regular accounts of all the receipts, movable and immovable
properties and of all encumbrances created and all payments and alienations made. The accounts are to be kept
in a manner which will facilitate preparation of the final accounts in the prescribed form of Schedule VIII
(Balance sheet) and IX (Income and expenditure A/c) and preparation of statement of income chargeable to
contribution in Schedule IXC.

Q. Within what time limit the accounts should be audited and submitted to the office of the C.C.?

A. The accounts are required to be audited within six months from the last date of the accounting period and
AUDITOR shall forward a copy of balance sheet and the income expenditure account along with his audit report
and Schedule IXC to the office of the C.C. within a fortnight of the audit. The Auditor will forward the audited
accounts along with the audit report to the trustees who in turn will forward the same to the office of CC. Only if
the office of CC specifically requires the Auditor to file the audited accounts, than only it is the responsibility of
the Auditor to file the audited accounts in the Office of CC.

Q. For how many years a trust has to keep accounts and other related papers?

A. There is no such time limit prescribed in the B.P.T. Act. In that case one view can be taken that the accounts
are to be maintained since the inception of the trust.

Q. Creation of trust outside India regarding property lying in India, whether possible?

A. For moveable property it is possible, but for immoveable property it is not possible.

Q. Can a minor act a trust?

A. No, minor cannot act as a trustee, as he/she is not competent to enter into contract.

Q. Whether Section 25 company needs to be registered under the BPT Act, 1950?

A. The question is debatable as one of the case law which was decided on 16-9-1971 in the High Court of
Mumbai, clearly states that the if a company registered under the Companies Act, 1956 is authorized by its
objects clause in its Memorandum of Association to hold property for public, religious or charitable purposes,
its ownership of property for such purposes forms a public trust and as such the trust is liable to be registered
under the Bombay Pubic Trust Act, 1950 and the Company as a trustee, “AkhilDeshasthaRigvedi Brahmin
Madhyawarti Mandal v. Jt. Charity Commissioner, Maharashtra State, 74 Bom.L.R.337 : AIR 1972 Bom.313.
As per the definition of Public Trust u/s.2 (13) it is clearly stated in the Bombay Public Trust Act, 1950 that
“The BPT Act, 1950 however does not apply to a company registered under sec.25 of the Companies Act,
1956.”

Q. What are the conditions necessary for creation of a valid Trust?

A. The following conditions are necessary for creation of a valid Trust,

1. Intention to create a trust.

2. The purpose or object of the trust.

71
 3. The beneficiary of the trust.
4. The trust property.

Q. What is the procedure for obtaining permission u/s.36 of the BPT Act, 1950 for Alienation of
Immovable Property of Public Trust?

A. S.36. Alienation of Immovable Property of Public Trust: The procedure for sanction of alienation is as under

1. First you need to check the sort of alienation of immovable property is being requested for (i.e. whether
sale, gift, transfer or lease?)
2. The Necessity of alienation is required as an affidavit.
3. Particulars of concrete proposal, if any on hand, such as the name of the purchaser / lessees / transferee,
etc. and consideration he has offered
4. Clarification of how the proposal is in the interest of the Trust.
5. Trustee’s resolution in favour of alienation passed unanimously or by required majority under the trust
deed.
6. How the property to be alienated was acquired by the trust. Clarification along with the document of
transfer will need to be seen.
7. A copy of the document creating the trust to check what provisions with regards to alienation of
immovable property have been mention and whether trust deed contains any prohibition of alienation.
8. Certified copy of the Schedule – 1 to check out that whether the property in question is on the record of
the Charity Commissioner or not.
9. The offers of lease or sale should be invited by way of advertisements in two prominent news papers –
the offers should be received in sealed envelopes to be opened in the presence to the bidders who
should be then be given a chance to enhance their offers.
10. Valuation report of experts such as Architects, Engineers, etc., showing detailed - working out of the
current market value of the property in question. In case of agricultural lands valuation report of talathi,
patwari or Gram – Panchayat, etc.
11. A copy of draft lease in case of Lease, draft Sale deed in case of Sale.
12. Whether the property in question is involved any litigation or in subject-matter of any suit or whether
any person has professed any claim on the property.
13. In case of the agricultural land to obtain an exemption certificate under section 88B of the Bombay
Tenancy and Agricultural Lands Act, 1948.

Q. Can Trust borrow money and what documents are required to be submitted at the Office of Charity
Commissioner?

A. Yes, a trust can borrow money after following the provisions mentioned u/s.36A of the BPT Act, 1950. The
following details/clarifications are required to the Office of the Charity Commissioner for obtaining sanction for
borrowing money for a trust

1. Whether the instrument of trust contains any directions with respect to borrowing of money ( whether
by way of mortgage or otherwise)
2. What is the necessity of the proposed borrowing?
3. Whether all the trustees are unanimously in favour of the proposed borrowing?
4. The name of the person / institutions from whom monies are to be borrowed and their relation with
trust or trustees, if any.

72
5. Loan amount
6. Banks approval letter to advance of loan containing terms and conditions of the loan etc.
7. File an affidavit in support of the application along with the undertaking that the loan will be used only
for the purpose it is being raised
8. What is rate of interest?
9. State whether accounting reports are filled up-to date or not?
10. How the loan is proposed to be repaid?
11. If the loan is being raised for the construction of the building then the estimation cost of the
construction
12. Whether copy of the budget scheme is submitted in the office of the charity commissioner or not?
13. What is the cadastral Survey Number along with the full schedule of the property address I any
immovable property has to be mortgaged
14. What is the present net annual income from the property?

73