Section 37 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.
This article explains the Maharashtra Public Trusts Act, 1950 as it applies in the State of Maharashtra, formerly the Bombay Public Trusts Act, 1950. Section 37 is the Charity Commissioner's inspection clause. It lets the Charity Commissioner, the Deputy or Assistant Charity Commissioner or an officer authorised by the State Government enter and inspect trust property, call for proceedings, books and returns, and take explanations in writing, and it obliges trustees to cooperate.
This article explains section 37 as amended up to Maharashtra Act No. XXXVI of 2018 (in force 21 May 2018), per the official text of the Law and Judiciary Department modified up to 19 December 2018. Maharashtra amended the Act again in 2019, 2020, 2024 and 2025; the amending texts consulted do not change this section, but the current text should be checked on the Charity Commissioner's website before relying on it.
The Charity Commissioner, the Deputy or Assistant Charity Commissioner, or an officer authorised by the State Government by general or special order may enter and inspect trust property, call for and inspect proceedings, books and documents, call for returns, statements, accounts and reports, and get a trustee's explanation reduced to writing. Entry needs reasonable notice and due regard to religious practices or usages. Trustees must afford reasonable facilities and comply with orders. If loss through gross negligence, breach of trust, misapplication or misconduct is noticed, a report goes up the line.
Who may use the powers
Sub-section (1) names three groups: "The Charity Commissioner, the Deputy or Assistant Charity Commissioner or any officer authorised by the State Government by a general or special order". Section 37 was renumbered as sub-section (1) by Bom. 6 of 1960, s. 21, as the footnote prints. An officer who is not the Charity Commissioner or a Deputy or Assistant Charity Commissioner must hold an authorisation order from the State Government; a trustee is entitled to ask to see it. For the officers' status and powers more widely, see Section 69 and Section 68.
The four powers in sub-section (1)
| Clause | Power | Detail from the text |
|---|---|---|
| (a) | Enter and inspect property | "to enter on and inspect or cause to be entered on and inspected any property, belonging to a public trust" |
| (b) | Call for and inspect records | "any proceedings of the trustees of any public trust, and any book of accounts or document in the possession or under the control of the trustees or any person connected with the trust" (clause substituted by Mah. 20 of 1971, s. 24(1)(a)) |
| (c) | Call for returns | "any return, statement, account or report which he may think fit from the trustees or any person connected with a public trust" |
| (d) | Take explanations | "to get the explanation of the trustee or any person connected with the public trust and reduce or cause to be reduced to writing any statement made by him" (clause inserted by Mah. 20 of 1971, s. 24(1)(d)) |
Two points on reach. First, the powers extend to "any person connected with the trust", not only trustees; an accountant, manager or caretaker who holds the records is within the clause. Second, clause (c) lets the officer call for whatever return or statement he "may think fit"; the Act sets no list.
The proviso: notice and respect for usage
"Provided that, in entering upon any property belonging to the public trust the officers making the entry shall give reasonable notice to the trustee and shall have due regard to the religious practices or usages of the trust." For a temple or a math, this means the officer should give notice and plan the visit around worship and rituals, for instance not entering the sanctum during a ritual. The words "reasonable notice" are not defined. Trustees who have a visit scheduled and want the papers ready can use compliance advisory support.
Sub-section (2): the trustee's duty
Sub-section (2), added by Bom. 6 of 1960, s. 21, says: "It shall be the duty of every trustee to afford all reasonable facilities to any officer exercising any of the powers under sub-section (1) and the trustees or any person connected with the public trust shall comply with any order made or direction issued by such officer in exercise of the power conferred upon him by or under sub-section (1)." The words "any person connected with the public trust" were substituted for "any other person in charge of the public trust" by Mah. 20 of 1971, s. 24(2). So the duty is twofold: afford facilities (keys, access, records, a place to sit) and comply with orders and directions made under sub-section (1).
Sub-section (3): report of loss
Sub-section (3), added by Mah. 20 of 1971, s. 24(3), deals with what an inspection may reveal: "that there is a loss caused to the public trust on account of gross negligence, breach of trust, misapplication or misconduct on the part of a trustee or any person connected with the trust". Then "the Deputy or Assistant Charity Commissioner may submit a report thereof to the Charity Commissioner; and the officer so authorised, to the Deputy or Assistant Charity Commissioner."
So the route is: an authorised officer reports to the Deputy or Assistant Charity Commissioner; the Deputy or Assistant Charity Commissioner may report to the Charity Commissioner. What happens next is in the following sections: an explanation is called for under Section 38, findings and a report follow under section 39, and the Charity Commissioner can act under Section 40.
Illustration. The Assistant Charity Commissioner gives a Thane temple trust written notice that an Inspector authorised by the State Government will visit on a stated day, avoiding the festival days. The Inspector inspects the premises, asks for the minute book and the cash book, and calls for a statement of donations received. A trustee gives a written explanation about a gap in the cash book, which the Inspector records. The trustees give all reasonable facilities and comply with the Inspector's direction to produce the donation receipts the next day. If the Inspector notices a loss that appears to arise from misapplication, he reports to the Assistant Charity Commissioner, who may report to the Charity Commissioner.
Practical tips for trustees
- Keep the minute book, cash book, property register and receipts where they can be produced quickly.
- Ask for the officer's identity and, if he is an authorised officer, the authorisation order.
- Give written explanations carefully; they are reduced to writing and may be used later.
- Comply with directions made under sub-section (1), and record in writing any difficulty you have in complying.
Need help preparing for an inspection?
Our team can review the trust's records, organise the registers and returns, and prepare trustees for an inspection or a call for explanation. Reach out for compliance advisory support.
Key takeaways
- The Charity Commissioner, the Deputy or Assistant Charity Commissioner and officers authorised by the State Government can enter and inspect trust property, call for records and returns, and take explanations in writing.
- Entry requires reasonable notice and due regard to the trust's religious practices or usages.
- Trustees and persons connected with the trust must afford reasonable facilities and comply with orders and directions.
- If an inspection shows loss from gross negligence, breach of trust, misapplication or misconduct, a report goes to the Deputy or Assistant Charity Commissioner and on to the Charity Commissioner.
- Clauses (b) and (d) and sub-sections (2) and (3) come from the 1960 and 1971 amending Acts.
Read next
- Sections 38 and 39: explanation on the audit report and the report to the Charity Commissioner
- Section 41B: inquiries into charities on complaint or suo motu
- Section 40: the Charity Commissioner's orders on the report
- How to file annual accounts of a trust with the Charity Commissioner
Disclaimer: Based on the Maharashtra Public Trusts Act, 1950 as modified up to 19 December 2018 in the official text of the Law and Judiciary Department, Government of Maharashtra, as consulted on 3 October 2026. Maharashtra amended the Act again in 2019, 2020, 2024 and 2025; the current text, the Maharashtra Public Trusts Rules and the Charity Commissioner's circulars should be checked. This article is general information, not legal advice; check the official text before acting.