Section 4 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.
Section 4 of the Charitable Endowments Act, 1890 is the working section of the Act. It lets the appropriate Government, on application, order by notification in the Official Gazette that property held, or to be applied, in trust for a charitable purpose be vested in the Treasurer of Charitable Endowments on terms agreed with the applicants. The vesting does not make the Treasurer the administrator of the trust.
This article explains section 4 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.
Where property is held or is to be applied in trust for a charitable purpose, the appropriate Government, if it thinks fit, may on application order, by notification in the Official Gazette, that the property be vested in the Treasurer of Charitable Endowments, on terms agreed with the applicants for applying the property or its income; it then vests (section 4(1)). The Treasurer is entitled to all documents of title (section 4(2)). The order does not require him to administer the property or make him a trustee for its administration (section 4(4)). Sub-section (3) is shown as omitted.
Sub-section (1): the vesting order
"Where any property is held or is to be applied in trust for a charitable purpose, the , if it thinks fit, may, on application made as hereinafter mentioned, and subject to the other provisions of this section, order, by notification in the Official Gazette, that the property be vested in the treasurer of Charitable Endowments on such terms as to the application of the property or the income thereof as may be agreed on between the and the person or persons making the application, and the property shall thereupon so vest accordingly."
The sub-section can be read in steps:
| Element | What the words say |
|---|---|
| Property | Held, or to be applied, in trust for a charitable purpose (the meaning in section 2) |
| Who decides | The appropriate Government, "if it thinks fit" |
| Trigger | An application made as mentioned in section 6 |
| Form of order | Notification in the Official Gazette |
| Terms | Agreed between the appropriate Government and the persons making the application, as to the application of the property or the income |
| Effect | The property "shall thereupon so vest accordingly" |
Four points follow. First, the Government has a discretion ("if it thinks fit"); an application does not give a right to a vesting order. Second, the order is made on agreed terms, so the applicants' consent is part of the scheme of the section. Third, the order is by notification in the Official Gazette, which makes the vesting public. Fourth, the vesting is automatic on the order: the property "shall thereupon so vest". The property may already be held in trust or may be about to be applied in trust, so a donor who is about to settle property can also apply. Which Government is the appropriate Government is explained in sections 3 and 3-A. A trust that wants to examine whether vesting is the right course can ask for a legal due diligence review of its deed and title.
The Act prints no fee for a vesting order; section 13 lets rules prescribe fees, and no rules are held, so this article states none.
Sub-section (2): documents of title
"When any property has vested under this section in a Treasurer of Charitable Endowments, he is entitled to all documents of title relating thereto." The documents follow the property to the Treasurer.
Sub-section (3): omitted
The consolidated copy prints "[ *]" where sub-section (3) would be. The asterisks show that the sub-section was omitted by an amendment, and this article does not say what it provided.
Sub-section (4): the Treasurer does not administer
"An order under this section vesting property in a treasurer of Charitable Endowments shall not require or be deemed to require him to administer the property, or impose or be deemed to impose upon him the duty of a trustee with respect to the administration thereof."
Together with section 8, covered in sections 8 and 9, this means the vesting changes who holds the legal title, not who runs the charity. The persons acting in the administration of the trust continue to manage the property, and the administration may be governed by a scheme under section 5.
Worked example
An invented public charitable trust, the Shri Kanchan Vidya Nidhi, holds government securities to fund a school. Its trustees apply to the State Government, the appropriate Government because its objects lie within one State, to vest the securities in the Treasurer of Charitable Endowments and agree the terms on which the income will be applied to the school. The Government, thinking fit, orders by notification in the Official Gazette; the securities vest in the Treasurer, who becomes entitled to the documents of title. The trustees continue to run the school. If a State law on public trusts applies to the trust, the trustees check it first.
Practical points
- Confirm that the purpose is a charitable purpose within section 2.
- Identify the appropriate Government before applying.
- Agree the terms for applying the property or income, because the order follows them.
- Expect the documents of title to go to the Treasurer once the property has vested.
- Do not assume that vesting makes the Treasurer manage the charity; sub-section (4) says it does not.
Need help with a vesting order?
A vesting order changes legal title, so the deed, the property and the terms must be right. We can review title, the trust deed and the proposed terms before you apply. Begin with our legal due diligence service.
Key takeaways
- The appropriate Government may, on application and if it thinks fit, vest property held for a charitable purpose in the Treasurer by Gazette notification (section 4(1)).
- The terms of application of the property or income are agreed between the Government and the applicants.
- The Treasurer is entitled to all documents of title (section 4(2)).
- The order does not require him to administer the property or make him a trustee for its administration (section 4(4)).
- Where a State law governs public trusts, check it first.
Read next
- Sections 3 and 3-A of the Charitable Endowments Act, 1890: the Treasurer and the appropriate Government
- Section 5 of the Charitable Endowments Act, 1890: schemes for administration of vested property
- Section 6 of the Charitable Endowments Act, 1890: how to apply
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.