Maharashtra Public Trusts Act, 1950
Maharashtra Public Trusts Act, 1950 as amended by Maharashtra Public Trusts
(Second Amendment) Act, 2017.
Charity Commissioner (C.C.)
Documents to be filed |
Period |
Prescribed Form |
Procedures |
Application for registration of the Trust (Sec. 18, Rule 6) |
Within 3 months of creation of the Trust |
Schedule II |
- Application in the prescribed form;
- Instrument (Trust Deed);
- Affidavit;
- Consent letter;
- No objection for use of address
and address proof;
- Notice in Newspaper;
- List of all the Trustees
and their identity proof
|
Application for registration of the Society under the Societies
Registration Act, 1860 and Maharashtra Public Trust Act, 1950 |
Within 6 months of creation of the Trust |
Schedule II |
UNDER THE SOCIETY REGISTRATION ACT, 1860:
- Memorandum of
Association and Rules & Regulations;
- Resolution of all the members.
- Consent Letter of members;
- Authority letter;
- NOC of the
Owner of the premises to use the same as the registered address of the
captioned Society;
- Affidavit;
- Schedule I;
- Schedule II;
- Schedule VI;
- List of Managing Committee
members with their ID and Address proof.
UNDER THE MAHARASHTRA PUBLIC TRUSTS ACT, 1950:
- Schedule II;
- Memorandum of Association and Rules &
Regulations;
- Consent Letter;
- Authority Letter;
- Letter of exemption from publication;
- Resolution of all members;
- NOC of the Owner of the premises to use
the same as the registered address of the captioned Society;
- Affidavit;
- List of Managing Committee members with their ID and
address proof.
|
Application for registration of a trust created by will (Sec. 29) |
Within 1 month of granting of probate/within 6 months of testator's
death whichever is earlier. |
Schedule II |
Application must be signed and affirmed by the applicant, and to be
accompanied by a true copy of the Will and above procedures must be
followed |
Memorandum of particulars of immovable properties [Sec. 18(7), Rule
6(7)] |
Within 3 months of creation of the trust |
Schedule II-A |
Memorandum to be signed and affirmed by a trustee |
Change (Sec. 22 and Rule 13) |
Within 90 days of the occurrence of change |
Schedule III |
To be signed and affirmed by a trustee. It must be ensured that
changes are communicated within 90 days and thereafter it is the
responsibility of the trustee to follow-up and get the order of the
changes. Changes for the appointment of the new trustees will be filed
along with the notice of meeting, resolution, attendance sheet for the
meeting, invitation letter, consent letter and affidavit as well as for
deletion of name of trustee to be filed with letter of resignation,
death certificate, affidavit, no objection letter and other relevant
documentary evidence. Please note that the change report to be filed is
to be approved by the Superintendent and only thereafter the change
report can be filed |
Change (Section 22(1A), Rule 13(1A)) relating to immovable property |
Within 90 days of the occurrence of change |
Schedule III-A |
Change schedule to be signed and affirmed by a trustee along with
relevant documents of the property, how the property has come to the
trust, name and address of previous owner, publication in newspaper,
Copy of 7/12 of the property, evidence affidavit and audited accounts
for last three years |
Budget (Sec. 31A, Rule 16A) |
At least 1 month before commencement of each accounting year |
Schedule VII-A |
If annual income exceeds ₹ 5,000/- for public religious trusts
and ₹ 10,000/- for other trusts, then to file budget by making adequate
provisions for carrying out the objects of the trust, and for the
maintenance and preservation of the trust property |
Accounts and Audit (Secs. 32, 33(2), 33(4), 34, Rules 17, 21) |
Accounts to be audited within 6 months from close of accounting year |
Schedule VIII for Balance Sheet and Schedule IX for Income &
Expenditure Schedule IX-C for Statement of Contribution |
Trust exempted from requirements of audit is required to file
accounts in Schedules IX-A & IX-B. It is auditors duty to prepare
Balance Sheet and Income & Expenditure A/c and forward the same along
with a copy of his report to the trustee who in turn will forward the
full set of audited accounts in the Office of Charity Commissioner
within the fortnight of completion of audit. The trust having an annual
income of ₹15,000/- or less is exempt from audit |
Power of Assistant or Deputy Charity Commissioner to frame the
scheme for proper management or administration (S. 50A(1)) |
|
|
- Application u/s. 50A of the MPT Act, 1950
- Notice of the meeting, certified by the trustee
- Minutes of the meeting, certified by the trustee
- Copy of the scheme
- Comparative statement
- Audited accounts of last three years
|
Investments (Section 35)
Public trust can invest its funds in any of the following modes :
- Scheduled Bank as defined in Reserve Bank of India
Act, 1934.
- Postal Savings Bank.
- Co-operative bank approved by the State Government.
- Public Securities (Sec. 2(12)) (Units issued by the Unit Trust of India
are declared as Public Securities).
- First mortgage of immovable property situated in India provided the
property is not leased for a term of years that is lease for 50 or 99 or
999, it must be in perpetuity and for an indefinite period.
- Any other investments permitted by CC by a special or general order. CC
is bound to decide on the application within 3 months from date of receipt
of such application or record reasons for not doing so. CC circular provides
that investment made pursuant to such order should not exceed 50% of total
investments.
Immovable Property (Section 36)
Investment in immovable property requires CC's permission. No permission is
necessary for development of immovable property to fulfil objects of the trust;
e.g., construction of school building, library, etc. However, the trustee needs
to file change report for addition of building u/s. 22 of the Maharashtra Public
Trusts
Act, 1950.
Sale, exchange, lease or gift of any immovable property of a public trust is
invalid unless previously approved by the CC. Lease exceeding a period of 3
years requires prior permission of the Charity Commissioner. CC shall not
sanction any lease for a period of more than 30 years. Memorandum of
Understanding/Sale Deed in case of sale and Lease Deed in case of lease has to
be enclosed, as the case may be. No sanction shall be
revoked after conveyance, unless the same was obtained after fraud.
CC may grant a post facto sanction in respect of property in extra
ordinary situations where a prior sanction results in hardship to the trust, a
large body of persons or a bona fide purchaser for value, provided he
is satisfied that:
- there was an emergent situation which warranted such transfer,
- there was compelling necessity for the said transfer,
- the transfer was necessary in the interest of trust,
- the property was transferred for consideration which was not less than
prevalent market value of the property so transferred, to be certified by the
expert,
- there was reasonable effort on the part of trustees to secure the best
price,
- the trustees actions, during the course of the entire transaction, were bona
fide and they have not derived any benefit, either pecuniary or otherwise,
out of the said transaction, and
- the transfer was effected by executing a registered instrument, if a
document is required to be registered under the law for the time being force
Contribution (Section 58, Rules 32 & 33)
Every public trust not exempt having gross annual income exceeding ₹ 25,000/-
has to pay contribution to Public Trust Administration Fund at rates notified by
State Government from time-to-time. For last 21 years, the rate notified has
been 2%. Stay has been granted by Hon'ble Bombay High Court in
CA No. 1 of 2009 and PIL Nos. 40, 1780 and 1864 of 2007, order dtd. 25-9-2009.
Gross annual income means gross income from all sources including donations
and offerings, but excluding corpus donations. Contribution is payable at the
prescribed rate on the gross annual income after making deductions prescribed in
Rule 32.
The following trusts are exempt from payment of contribution.
- Small trusts having annual income of ₹25,000/- or less.
- Public trusts exclusively for advancement/propagation of
*education/medical relief/veterinary treatment.
*(till 5th August, 1997 the law provided deduction for secular education.)
- Recognised Public Libraries and Reading Rooms.
- Public Trusts exclusively for the purpose of relief of distress caused
by scarcity, drought, flood, fire, or other natural calamity.
Recently Bombay High Court has by an interim order stayed the payment of
contribution in response to a PIL. The office of the Charity Commissioner is
accepting the accounts from the
year 2009 without payment of contribution subject to the final order.
Borrowing Powers of Trustees (Section 36A)
No trustee shall borrow moneys (whether by way of mortgage or otherwise),
even from banks, for purpose of or on behalf of the trust 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.
The trust has to give the names of the prospective lenders and their consent
letter along with the application.
CC may grant an ex post facto sanction to borrow money from a
nationalized bank or Scheduled bank by the trustee under exceptional and
extraordinary situations where obtaining the previous sanction results in
hardship to the trust, beneficiary or bona fide third party.
CYPRESS (as amended on 1-9-2017) (Section 55)
Assistant or Deputy Charity Commissioner suo motu or upon an
application made to them shall pass appropriate orders and make a report to CC
(who may direct that the property or income of the public trust or any portion
thereof to be applied cypress
to any other charitable or religious objects) if they are of the opinion that:
- the original object for which the public trust was created has failed;
- the income or any surplus balance of any public trust has not been
utilized or is not likely to be utilized;
- 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
- 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 Charity Commissioner are necessary
CC may give directions and in giving such directions, he shall give effect to
original intention of the author of the public trust or purpose or object for
which such trust was created. In doing so, it shall be lawful for the CC 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.
An appeal against such an order may be made within 60 days from date of
receipt of the order.
It is pertinent to note that there is no provision to afford an opportunity
of being heard to the trust or the trustee before passing such an order.
However, section 69(n) provides power to CC to give a notice to the trustees for
cypres application of trust money.
Penalties (as amended on 18-5-2009) (Section 66)
Section |
Subject |
Fine which may be imposed (₹) |
Ss. 18(1), 18(4) |
Duty of trustees to apply to Deputy/ Assistant CC for registration
of Public Trust within time |
10,000/- |
S. 18(7) |
Duty of trustee to send memoranda of immovable property to certain
officers/ authorities within time |
10,000/- |
S. 22 |
Failure to report a change |
10,000/- |
S. 22B |
Failure to make an application within the time provided for |
10,000/- |
S. 22C |
Failure to send memoranda within the time provided for |
10,000/- |
S. 29 |
Duty of an executor to apply for registration of a public trust
within the time provided for |
10,000/- |
S. 32 |
Duty to keep regular accounts |
10,000/- |
S. 35 |
Failure or omission to invest money in public securities |
10,000/- |
S. 59 |
Failure to pay contribution u/s. 58 by a trustee or by a person
charging or collecting dharmada |
10,000/- |
Section 66A: Whoever alienates or attempts to alienate immovable property in
contravention of Section 36 shall be punishable with imprisonment up to 6 months
or with fine of ₹ 25,000/- or with both.
Section 66B: Whoever fails to comply with direction u/s. 41AA as regards
medical centres shall be punishable with imprisonment up to 3 months or with
fine up to ₹ 20,000 or with both.
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