Under the Maharashtra Public Trusts Act, 1950 (MPTA), formation of a public trust in Maharashtra requires structured documentation and statutory compliance before the Office of The Charity Commissioner. Lets outline the important points below:
A. Section 18 – Registration of Public Trusts.
1. When and Where to Apply
- Timeline: You must apply for registration within three months of creating the trust.
- Authority: The application must be made to the Deputy or Assistant Charity Commissioner of the region or sub-region where the trust’s administration office is located or where a substantial portion of its property is situated.
2. Required Information (Particulars)
The application must be in writing and include the following details:
- Name of the Trust: The designation by which the public trust is or will be known.
- Trustees & Managers: Names and addresses of all trustees and the manager with KYC .
- Succession Plan: The rules for how new trustees will be chosen (mode of succession).
- Property List: A list of all movable and immovable property with enough description to identify each item.
- Valuation: The approximate value of both movable and immovable property.
- Financial Estimates:
- The estimated gross average annual income (based on the last three years or the time since the trust was created).
- The estimated average annual expenditure.
- Contact Info: An address where communications for the trust or manager should be sent namely address of the Trust
3. Necessary Documents
- Instrument of Trust: A copy of the “instrument of trust” (commonly known as a Trust Deed)
- Signature & Verification: The application must be signed and verified by the trustee or their specially authorized agent.
- Registration Fee: The application must be accompanied by the prescribed fee (for example, Schedule B lists the fee for a standard application under Section 18(1) as ₹100).
4. Special Requirements for Property
- Memorandum for Immovable Property: If the trust owns land or buildings, the trustee has a duty to send a memorandum in the prescribed form to the Sub-registrar of the sub-district where the property is located.
- Timeline for Property Memo: This must also be done within three months of the trust’s creation.
B. Section 19 – Inquiry for Registration
After application under Section 18, the Charity Commissioner conducts an inquiry regarding:
- Whether a trust exists
- Whether it is a public trust
- Whether property belongs to such trust
- Names and addresses of trustees
- Origin, nature and object of the Trust
- Mode of succession
- the amount of gross average annual income and expenditure of the Trust and any other particulars as prescribed under section 18(5) of The Act
C. Entry in Register
On Completion of The inquiry provided for under section 19, recording of its findings and payment of fees, The Deputy or Assistant Charity Commissioner shall grant registration to the Trust and make entry in register kept under section 17 of This Act.
Bingo! Your Trust is registered now…
By CA Krishna Bhanushali
Email: cakrishnabhanu@gmail.com