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Section 50A: Framing a Scheme for a Public Trust or Merging Two Trusts in Maharashtra

When a trust's management breaks down, or two trusts with similar objects would work better as one, Section 50A of the Maharashtra Public Trusts Act lets the Charity Commissioner frame a scheme or amalgamate them. Who can apply, the procedure, what a scheme contains, the 2025 Rizvi Education Society ruling, and challenges.

Illustration: a woman advocate joining two trust buildings with a ribbon to show a merger

Many public trusts run for decades on a short deed written by the founders. When the founders pass away, the deed may say nothing about how new trustees are chosen, how decisions are taken or how disputes are settled. Other trusts become inactive, or exist alongside a sister trust with the same objects. Section 50A of the Maharashtra Public Trusts Act, 1950 gives the Charity Commissioner’s office a way to fix these problems without a full civil suit.

What Section 50A allows

Sub-section Power
50A(1) Frame a scheme for the management or administration of a public trust
50A(2) Amalgamate two or more public trusts by framing a common scheme
50A(3) Modify a scheme framed under (1) or (2), after hearing the trustees

The power is exercised by the Assistant or Deputy Charity Commissioner concerned.

Section 50A(1): a scheme for one trust

When it can be used

The Assistant or Deputy Charity Commissioner may frame a scheme where, in the interest of the proper management or administration of the trust, a scheme should be settled. This can happen:

  • on the office’s own initiative, where it has reason to believe a scheme is needed; or
  • on a written application by two or more persons having an interest in the trust, made in the prescribed manner.

Procedure

The trustees must be given a due opportunity to be heard, and the officer must be satisfied that a scheme is necessary or expedient.

What a scheme usually covers

  • the composition of the board of trustees and how vacancies are filled;
  • tenure of trustees, consistent with the 2025 amendment on tenure and perpetual trustees;
  • meetings, quorum and decision-making;
  • operation of bank accounts and investments;
  • maintenance of accounts and records; and
  • how the trust’s objects are to be carried out.

A scheme does not usually change the trust’s objects. Changing objects is a separate matter. See changing a trust’s name or objects.

Section 50A(2): amalgamating two or more trusts

Where the Assistant or Deputy Charity Commissioner is of the opinion that, in the interest of proper management or administration, two or more public trusts may be amalgamated, he may frame a common scheme. Before doing so, he must:

  1. publish a notice in the Official Gazette, and where he considers it useful, in a newspaper with wide circulation in the region where the trust is registered; and
  2. give the trustees and all other interested persons a due opportunity to be heard.

Amalgamation is often used where a trust has become inactive, or two trusts run by the same community have overlapping objects.

The 2025 Bombay High Court ruling

In Rizvi Education Society v. Brihan Mumbai Municipal Corporation (reported May 2025), the Bombay High Court upheld the amalgamation of two trusts with aligned objects. It held that:

  • the key question under Section 50A(2) is whether amalgamation serves the proper management or administration of the trusts;
  • objections raised to protect an outsider’s own commercial interest, such as a party to a property deal with one trust, were not relevant to that inquiry; and
  • keeping a defunct trust alive with depleting resources was not in its interest.

How to apply

  1. Identify the problem the scheme must solve, with evidence: a deadlock, no trustees, mismanagement, or overlapping trusts.
  2. Prepare a draft scheme setting out the proposed clauses.
  3. File the application with the Assistant or Deputy Charity Commissioner of the region where the trust is registered. See which Charity Commissioner office handles your trust.
  4. Serve notice as directed, and attend the hearing.
  5. After the scheme is framed, record the changes in the Public Trust Register through a change report. See Section 22 change reports.

Challenging a Section 50A order

An order under Section 50A can be challenged by an application to the court under the Act; in Mumbai, this goes to the City Civil Court. Act promptly, as time limits apply.

Section 50A or a suit under Section 50?

Section 50 provides for a civil suit (with the Charity Commissioner’s consent where required) for relief such as removing trustees or settling a scheme. Section 50A offers a faster route before the Charity Commissioner’s office. The right route depends on the dispute. See suits under Sections 50 and 51 and removing a trustee.

Frequently asked questions

Our trust deed has no provision for appointing new trustees. Can Section 50A help?

Yes. A scheme can lay down how trustees are appointed and how vacancies are filled.

Can a trust that has stopped working be merged with another trust?

Yes, under Section 50A(2), if the objects are compatible and amalgamation is in the interest of proper management. Deregistration is the other option for defunct trusts. See deregistration of defunct trusts.

See also: Charity Commissioner matters.

Consultations are by appointment. To fix a time, telephone +91 99301 50560 or send a message on WhatsApp.

This guide describes the law as understood in October 2026. It is not legal advice; every trust deed and dispute is different.

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