The Maharashtra Public Trusts (Second Amendment) Act, 2017 inserted Sections 22(3A) and 22(3B), which allow a trust that no longer functions to be removed from the register.
Key facts
- Law
- Sections 22(3A) and 22(3B), Maharashtra Public Trusts Act (inserted in 2017)
- Grounds
- The purpose is fulfilled, has become unlawful, or is impossible to fulfil
- Who acts
- Trustees can apply; the Deputy or Assistant Charity Commissioner can also act on his own
- Not automatic
- An inactive trust stays on the register until an inquiry and order
- Remaining property
- Can be taken over and disposed of, with proceeds paid into the Public Trusts Administration Fund
Grounds
- The purpose of the trust has been fulfilled
- The purpose has become unlawful
- It has become impossible to fulfil the purpose
Procedure
The Deputy or Assistant Charity Commissioner can hold an inquiry on an application or on his own motion before ordering de-registration.
Property of the trust
Under Section 22(3B) the officer can take over the management of the remaining property and dispose of it, and the proceeds are paid into the Public Trusts Administration Fund.
Frequently asked questions: de-registration
Can the trustees ask for de-registration?
Yes. The officer can act on an application or on his own motion.
Is a trust that has no activity automatically removed?
No. It remains on the register until an inquiry is held and an order is made under Section 22(3A).
What happens if there is property left?
Section 22(3B) allows the officer to take over its management and dispose of it, with the proceeds going to the Public Trusts Administration Fund.
Is there an alternative to closing a trust?
Where the objects can still be pursued, the trust can continue and bring its records and filings up to date.
Related
See the page on change reports before the Charity Commissioner for the full procedure.
If you need assistance with this matter, you may contact this office through the Contact page.
Related service: Public Trust Accounts, Audit and Compliance in Mumbai