Sections 10 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Sections 10 to 12 of the Charitable Endowments Act, 1890 set the limits of the Treasurer of Charitable Endowments' powers, provide for the continuance of his office when it is renamed or abolished, and let the Central Government move property from one Treasurer to another. They protect the charity's property from being dealt with outside the Act.
This article explains sections 10 to 12 of the Charitable Endowments Act, 1890 as amended up to the Jammu and Kashmir Reorganisation Act, 2019 (34 of 2019), per the consolidated text consulted on 3 October 2026. Later amendments, State notifications under section 1 and the State law on public trusts should be checked before relying on it.
Where a State law governs public trusts (for example the Maharashtra Public Trusts Act, 1950, the Rajasthan Public Trusts Act, 1959 or the Madhya Pradesh Public Trusts Act, 1951), that State law must be checked first.
The Treasurer is "always a sole trustee"; he takes or holds property only under the Act and transfers it only on a decree divesting him or on a direction from the authority by whose order the property vested in him (section 10(1)). A direction may require him to sell the property and, with sanction, invest the proceeds (section 10(2)). When he is divested, the property vests in the persons administering the trust on the same trusts (section 10(3)). If his office is abolished or renamed, the appropriate Government may appoint a successor office (section 11). The Central Government may direct that property vest in another Treasurer (section 12).
Section 10: limitation of functions and powers
Sub-section (1). "A Treasurer of Charitable Endowments shall always be a sole trustee, and shall not, as such Treasurer, take or hold any property otherwise than under the provisions of this Act, or, subject to those provisions, transfer any property vested in him except in obedience to a decree divesting him of the property, or in compliance with a direction in that behalf issuing from the authority by whose order the property became vested in him."
Three limits appear:
- He is always a sole trustee, so no co-trustee shares the title with him.
- He takes or holds property only under this Act.
- He transfers property only in obedience to a decree divesting him, or in compliance with a direction from the authority that vested the property in him.
Sub-section (2). "Such a direction may require the treasurer to sell or otherwise dispose of any property vested in him, and, with the sanction of the authority issuing the direction, to invest the proceeds of the sale or other disposal of the property in any such security for money as is , or in the purchase of immovable property." The direction can therefore require a sale or other disposal, and then, with that authority's sanction, the investment of the proceeds in a security specified in the direction or in immovable property. The words "specified in the direction" are in square brackets in the copy, which shows an amendment.
Sub-section (3). "When a Treasurer of Charitable Endowments is divested, by a direction of under this section, of any property, it shall vest in the person or persons acting in the administration thereof and be held by him or them on the same trusts as those on which it was held by such Treasurer." On divesting, the property goes back to the persons administering the trust, on the same trusts, so the charitable purpose is unchanged.
This control also explains the Act's design: the property can leave the Treasurer only through a court decree or the Government's direction, never by the Treasurer's own choice. A trust that wants to bring a vested property back to the trustees, or to sell it, should seek a direction rather than act itself; our legal consultation team can help frame the request.
Section 11: continuance of the office
"If the office held by an officer of the Government who has been appointed to be Treasurer of Charitable Endowments is abolished or its name is changed, the may appoint the same or another officer of the Government by the name of his office to be such Treasurer, and thereupon the holder of the latter office shall be deemed for the purposes of this Act to be the successor-in-office of the holder of the former office."
Because the Treasurer is appointed by the name of an office under section 3, a change in the office's name or its abolition could leave vested property without a holder. Section 11 prevents that: the appropriate Government appoints the same or another officer, and that officer is the successor-in-office of the earlier one for the purposes of the Act. The vested property therefore stays with the Treasurer's office without a break.
Section 12: transfer of property from one Treasurer to another
The section is in square brackets in the copy, showing that it was added by amendment. "If by reason of any alteration of areas or by reason of the appointment of a Treasurer of Charitable Endowments for India or for any State for which such a treasurer has not previously been appointed or for any other reason it appears to the Central Government that any property vested in a Treasurer of Charitable Endowments should be vested in another such treasurer, that Government may direct that the property shall be so vested and thereupon it shall vest in that other treasurer and his successors as fully and effectually for the purposes of this Act, as if it had been originally vested in him under this Act."
| Reason for transfer | Who decides |
|---|---|
| Alteration of areas | The Central Government |
| Appointment of a Treasurer for India, or for a State that had none | The Central Government |
| Any other reason | The Central Government |
The effect is that the property vests in the other Treasurer and his successors "as fully and effectually" as if originally vested in him. The power sits with the Central Government even where the Treasurer is a State officer.
The three sections at a glance
| Section | Subject | Rule in short |
|---|---|---|
| 10(1) | Limits | Always a sole trustee; property only under the Act; transfer only on a decree or a direction |
| 10(2) | Direction to sell | Sale or disposal; sanctioned investment of proceeds |
| 10(3) | Divesting | Property vests in the persons administering the trust on the same trusts |
| 11 | Continuance | Same or another office appointed; successor-in-office |
| 12 | Transfer | Central Government may vest property in another Treasurer |
Worked example
An invented fund, the Shri Kalyan Sahayata Nidhi, has government securities vested in the State's Treasurer. Its administrators need the money for a building and ask the appropriate Government for a direction. The Government directs the Treasurer to sell the securities and, with its sanction, to invest the proceeds in immovable property for the charity. The Treasurer acts only in compliance with that direction. Later the State renames the Treasurer's office; the appropriate Government appoints the renamed office as Treasurer, and its holder is the successor-in-office. When a new Treasurer for another area is appointed, the Central Government directs that the fund's property vest in that Treasurer.
Practical points
- Do not expect the Treasurer to sell or release property on request; he acts only on a decree or a direction.
- Seek a direction from the authority that vested the property if you need it sold or returned.
- Note that divested property returns to the persons administering the trust on the same trusts.
- If the Treasurer's office is renamed, check the notification appointing the new office.
- Keep copies of every direction under section 10 or 12 with the trust records.
Need help with a direction or a transfer?
A direction under section 10 or 12 changes who holds the property, so it should be framed with care. We can review the vesting papers and prepare the request. Contact us through legal consultation to begin.
Key takeaways
- The Treasurer is always a sole trustee and holds property only under the Act (section 10(1)).
- He transfers only on a decree divesting him or a direction from the authority that vested the property.
- A direction may require sale and sanctioned investment of the proceeds (section 10(2)).
- Divested property vests in the persons administering the trust on the same trusts (section 10(3)).
- The Central Government may direct property to vest in another Treasurer (section 12).
Read next
- Sections 8 and 9 of the Charitable Endowments Act, 1890: the Treasurer as a bare trustee and the annual list
- Sections 13 to 15 of the Charitable Endowments Act, 1890: rules, indemnity and savings
- Sections 3 and 3-A of the Charitable Endowments Act, 1890: the Treasurer and the appropriate Government
Disclaimer: Based on the Charitable Endowments Act, 1890 and the Charitable and Religious Trusts Act, 1920 as amended up to the Jammu and Kashmir Reorganisation Act, 2019, as consulted on 3 October 2026. State laws on public trusts and religious endowments, State notifications under the 1920 Act and later amendments should be checked. This article is general information, not legal advice; check the official text before acting.