Maharashtra Charity Acts and Rules: Complete Guide for Trusts, Societies and NGOs
Trustees and office-bearers must understand the legal framework governing registration, administration, accounts, audit, property, investments, changes and regulatory supervision. The Charity Commissioner Maharashtra portal’s Acts & Rules section brings together the principal legislation and administrative rules used by the organisation.
This article provides a practical overview. The exact statutory text, later amendments, notifications and judicial decisions prevail over any summary.
1. Maharashtra Public Trusts Act, 1950
The Maharashtra Public Trusts Act, 1950 is the principal State legislation regulating public religious and charitable trusts. Its framework includes:
- Establishment and powers of Charity Commissioner authorities
- Meaning and validity of charitable purposes and public trusts
- Registration of public trusts and inquiry into registration particulars
- Recording trustees, succession, objects and trust property
- Change reports and further inquiries
- Maintenance, balancing and audit of accounts
- Investment of trust money and restrictions relating to property
- Inspection, supervision, directions and surcharge proceedings
- Protection and administration of charities
- Appeals, judicial inquiries, offences and penalties
Important operational sections
Sections 18–21: Registration, inquiry, findings and entries in the public trust register.
Section 22: Reporting a change in registered particulars. The filing must be supported by valid governance records and evidence.
Sections 31A–34: Budget, accounts, audit and the auditor’s reporting responsibilities.
Section 35: Investment of public trust money. Trustees must follow permitted legal modes and protect trust funds.
Section 36: Prior sanction requirements concerning sale, exchange, gift or long-term lease of immovable trust property, subject to the statutory provision.
Sections 36A and 36B: Trustee duties, restrictions and property-register requirements.
Section 41A: Power to issue directions for proper administration.
Section 41C: Regulation of collection of money, subscriptions or donations by persons other than public trusts for religious or charitable purposes.
2. Maharashtra Public Trusts Rules, 1951
The Rules support implementation of the Act by prescribing forms, schedules, procedural requirements, registers, accounts, audit documents, applications and fees. Trustees should read the relevant rule together with the applicable section of the Act rather than relying only on a form name.
In practical compliance, the Rules are important for Schedule-I particulars, change reports, accounting formats, audit reports, property information and applications submitted to Charity authorities.
3. Societies Registration Act, 1860
The Societies Registration Act, 1860 provides the legal framework for registering eligible literary, scientific, charitable and other societies. The Memorandum of Association records the society’s name, objects and governing body, while the Rules and Regulations govern its internal administration.
Registration as a society does not eliminate obligations under the Maharashtra public-trust framework where that law applies. Office-bearers should check whether both legal registrations and corresponding annual compliances are required.
4. Societies Registration (Maharashtra) Rules, 1971
These Rules prescribe procedures and schedules for society registration and continuing records. The official registration checklist refers to a minimum of seven persons signing the Memorandum and provides model Schedules I, II and VI for the annual managing-body list, employee particulars and member register.
5. Rule 23
The portal separately provides Rule 23 material for reference. Because the legal effect depends on the version, context and amendment history, users should open the current official document and read it with the principal Rules and applicable notification before relying on it.
6. Bombay Financial Rules, 1959
The Bombay Financial Rules primarily govern public financial administration and office procedure. They may be relevant to departmental financial control, sanctions, expenditure, accounting and administrative operations within the Charity organisation. They should not be confused with a private trust’s own accounting duties under the Public Trusts Act and Rules.
7. Destruction and Preservation Rules Regarding Documents
Record-preservation rules determine how long official files and documents should be retained and when records may be destroyed under authorised procedure. Trusts and societies should independently preserve permanent constitutional documents, registration certificates, Schedule-I records, property documents, accepted change reports, audit reports, minutes and statutory registers for the legally appropriate period.
8. Financial Powers, 2015
This document concerns delegation and exercise of administrative or financial powers within the organisation. It helps identify the authority competent to approve particular departmental matters. Applicants should nevertheless follow the jurisdiction and authority stated in the relevant trust or society provision.
9. Maharashtra Akasmik Kharcha Niyam, 1965
These rules concern contingent expenditure in government administration. They are included in the portal’s Acts & Rules section for departmental reference. Public trusts should distinguish such government-office rules from the trust’s statutory accounting, audit and expenditure obligations.
10. Office Purchase Rule Book
The Office Purchase Rule Book relates to procurement and purchase controls for official administration. A trust or NGO may adopt its own transparent procurement policy, but must also comply with its governing document, trustee duties, donor conditions, grant terms and applicable law.
Core Compliance Responsibilities of Trustees
- Act only for the objects and benefit of the public trust.
- Maintain complete books, vouchers, minutes and statutory registers.
- Complete audit and statutory filings within time.
- Report changes in registered particulars through the prescribed process.
- Protect movable and immovable trust property.
- Invest money only after checking the permitted legal framework.
- Obtain prior sanction wherever the Act requires it.
- Avoid conflicts of interest and properly document related-party matters.
- Maintain consistency between the governing document, Schedule-I and actual administration.
Trust Property and Investment Controls
Trust funds and property cannot be handled like personal or commercial assets of trustees. Investment decisions should be supported by trustee resolutions, legal eligibility, risk assessment, bank or investment documents and accounting records. Property transactions may require valuation, public notice, competitive process and prior approval depending on the applicable provision.
Accounts, Audit and Reporting
Each trust should maintain books reflecting receipts, donations, corpus, grants, expenses, investments, assets, liabilities and restricted funds. The audit should be completed by an eligible auditor, and irregularities should be addressed promptly. Charity-law reporting is separate from Income Tax, GST, FCRA, labour or other statutory compliance.
Change Management
Election of trustees, resignation, death, appointment, address changes, changes in objects or rules and changes in property particulars may affect the public trust record. A legally valid meeting and resolution alone may not update Schedule-I; the prescribed Change Report process and acceptance order are also important.
Common Legal Mistakes
- Relying on an old copy of the Act without checking amendments
- Carrying out a property transaction without examining Section 36
- Keeping outdated trustees in Schedule-I
- Mixing corpus, restricted and general donations in the accounts
- Treating society registration, trust registration, Income Tax approval and FCRA registration as one approval
- Using trust money without a valid object, authority or supporting record
Official reference: Charity Commissioner, Maharashtra State – Acts & Rules
Disclaimer: This is a general educational overview and not legal advice. Always verify the latest amended Act, Rules, notifications and official forms before taking action.