Sections 15 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 15 to 17 of the Madhya Pradesh Public Trusts Act, 1951 are the audit chapter of the Act in Madhya Pradesh. They require the working trustee or manager of every public trust to keep regular accounts, require the accounts to be balanced and audited every year by a qualified person, allow a special audit, and require the auditor to prepare a balance sheet and report irregularities.
This article explains sections 15 to 17 of the Madhya Pradesh Public Trusts Act, 1951 (M.P. Act No. 30 of 1951) as amended up to the date of the English text consulted on 3 October 2026 (published without amendment footnotes; bracketed words show that the State has amended it). Check the current text with the State's Devasthan Department or Registrar of Public Trusts before relying on it.
Section 15: the working trustee or manager keeps regular accounts of all movable and immovable property, in the form the Registrar approves. Section 16: accounts are balanced each year on 31 March (or another day the Registrar fixes) and audited annually by a qualified person; the Registrar may direct a special audit, and the fee is payable from trust property. For a trust with gross annual income not above one thousand rupees (as printed), a person approved by the Registrar may audit. Section 17: the auditor prepares a balance sheet and income and expenditure account, sends a copy to the Registrar and reports irregularities. Contravening section 15 is punishable under section 33(1).
Section 15: maintenance of accounts
Sub-section (1). "The working trustee or manager of a public trust, shall keep regular accounts of all movable and immovable property." The duty is not limited to income and expenditure: it extends to all property.
Sub-section (2). "Such accounts shall be kept in such form as may be approved by the Registrar and shall contain such particulars as the Registrar may fix after hearing the working trustee." The form is therefore approved by the Registrar, and the particulars are fixed by him after he has heard the working trustee. The Rules prescribe the books in rule 10, covered in rules 10 to 14. Section 33(1) of the Act names section 15 among the sections whose contravention is punishable with a fine up to one thousand rupees, as printed in the published copy.
Section 16: balancing and auditing of accounts
Sub-section (1). The accounts kept under section 15 "shall be balanced each year on the 31st day of March or such other day, as may be fixed by the Registrar".
Sub-section (2). "The accounts shall be audited annually in such manner as may be prescribed", by one of the following:
| Who may audit | As printed |
|---|---|
| (a) | A holder of a certificate granted under section 144 of the Indian Companies Act, 1913 (VII of 1913) |
| (b) | A member of an institution or association whose members have been declared under that section to be entitled to act as auditors of companies |
| (c) | Such persons as may be authorised by the State Government |
| (d) | For a public trust whose gross annual income does not exceed one thousand rupees, a person approved by the Registrar by general or special order |
The Indian Companies Act, 1913 is an old law named in the text, and it is quoted as printed. Check the law now in force on who may act as an auditor and, for the qualified-auditor categories, confirm with the Registrar's office whom he accepts. The one-thousand-rupee limit is as printed in the published copy.
Sub-section (3). "Every auditor acting under sub-section (2) shall have access to the accounts and to all books, vouchers, other documents and records in the possession of, or under the control of the working trustee or the manager."
Sub-section (4). "Notwithstanding anything contained in sub-sections (1) and (2) to the contrary, the Registrar may direct a special audit of the accounts of any public trust whenever in his opinion such special audit is necessary." Sub-sections (2) and (3) apply so far as applicable. "The Registrar may direct the payment of such fee as may be prescribed for such special audit and the working trustee or the manager shall be liable to pay the same from the trust property." The fee is set in the Rules; see rules 10 to 14. The Act itself prints no amount.
Section 17: the auditor's duty
Sub-section (1). "It shall be the duty of every auditor auditing the accounts of a public trust under Section 16 to prepare a balance sheet and income and expenditure account and to forward a copy of the same to the Registrar within whose jurisdiction a public trust has been registered."
Sub-section (2). The auditor "shall, in his report specify all cases of" the following, and state whether each was caused in consequence of a breach of trust, misapplication or other misconduct on the part of the trustees or any other person:
- irregularities;
- illegal or improper expenditure;
- failure or omission to recover monies or other property belonging to the trust; and
- waste of money or other property (the printed text reads "waste of money or other properly", a typing slip).
The auditor's report is the starting point for the Registrar's procedure under sections 22 to 24: under section 23, if the report shows material defects in the administration, the Registrar may require an explanation. A trust that wants its books set up and checked against these sections can use our books of accounts compliance service.
The three sections at a glance
| Section | Subject | Rule in short |
|---|---|---|
| 15 | Accounts | Regular accounts of all movable and immovable property; form approved by the Registrar |
| 16 | Balancing and audit | Balanced each 31 March or another day; audited annually by a qualified or approved person; special audit by the Registrar; fee from trust property |
| 17 | Auditor's duty | Balance sheet and income and expenditure account to the Registrar; report irregularities |
Worked example
An invented trust, Shri Chhindwara Sanatan Dharma Sabha, keeps a journal and ledger, as the Registrar has approved, and balances its accounts on 31 March. Its manager, Mr Hemraj Uikey, appoints a qualified auditor, Mr Sunil Mishra, who has access to all the books and vouchers. The auditor prepares a balance sheet and an income and expenditure account, sends a copy to the Registrar and notes in his report that a payment for repairs had no voucher and that rent due from a tenant was never recovered. The Registrar later considers the report and, in his opinion, directs a special audit, for which the fee is payable from the trust property.
Practical points
- Keep accounts of all movable and immovable property, not just cash.
- Use the form the Registrar approves, and ask him to fix the particulars after hearing you.
- Balance the accounts on 31 March unless the Registrar has fixed another day.
- Appoint an auditor within the categories in section 16(2) and give full access to the books.
- Expect the auditor to report every irregularity, including unrecovered dues.
Need help with trust accounts and audit?
Accounts that are regular and complete give a trust its strongest protection against a surcharge, but they take planning. We can set up your books, support the audit and review the report. Begin with our books of accounts compliance service.
Key takeaways
- The working trustee or manager keeps regular accounts of all movable and immovable property (section 15).
- Accounts are balanced each 31 March, or another day the Registrar fixes, and audited annually (section 16).
- Only the persons listed in section 16(2) may audit; a trust with gross annual income not above one thousand rupees, as printed, may use a person the Registrar approves.
- The Registrar may direct a special audit, with the fee payable from trust property.
- The auditor sends a balance sheet and income and expenditure account to the Registrar and reports irregularities (section 17).
Read next
- Sections 13 and 14 of the Madhya Pradesh Public Trusts Act, 1951: investment and sanction for sale of trust property
- Sections 18 to 21 of the Madhya Pradesh Public Trusts Act, 1951: budget, inspection, copies and returns
- Rules 10 to 14 of the Madhya Pradesh Public Trusts Rules, 1962: accounts, audit and special audit fee
Disclaimer: Based on the English texts of the Madhya Pradesh Public Trusts Act, 1951 and Madhya Pradesh Public Trusts Rules, 1962, as consulted on 3 October 2026; those copies do not state the date of their last amendment. Later amendments, State notifications and current fees should be checked with the State authorities. This article is general information, not legal advice; check the official text before acting.