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Section 41D of the Maharashtra Public Trusts Act, 1950: grounds and procedure for suspending, removing or dismissing a trustee

The Charity Commissioner may suspend, remove or dismiss a trustee on an application of a trustee or any person interested, on a report under section 41B, or suo motu, on grounds...

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Trust Registration
Published
October 3, 2026
Last updated
Oct 6, 2026
Reading time
8 min
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Last updated: October 2026Verified against: Government sources

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 41D allows the Charity Commissioner to suspend, remove or dismiss a trustee of a public trust on six grounds, lays down a procedure of notice, reply, charges and a reasoned order, allows interim suspension, provides for a fit person where the trust cannot function, and gives a right of appeal to the Court within sixty days.

This article explains section 41D 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.

Who can start the process

Sub-section (1) says the Charity Commissioner may act "either on application of a trustee or any person interested in the trust, or on receipt of a report under section 41B or suo motu". So there are three starting points: an application by a trustee or any person interested; a report after an inquiry under Section 41B; or the Charity Commissioner's own motion. Section 41D was inserted by Mah. 20 of 1971, s. 29, as the footnote to sections 41A to 41E prints. Trustees on either side of such a proceeding can take legal dispute resolution advice at the notice stage, when the reply is due in fifteen days.

The grounds (sub-section (1))

ClauseGround, as printedPlain reading
(a)"makes persistent default in the submission of accounts report or return"Repeated failure to file accounts, reports or returns
(b)"wilfully disobeys any lawful orders issued by the Charity Commissioner under the provisions of this Act or rules made thereunder by the State Government"Deliberate disobedience of lawful orders
(c)"continuously neglects his duty or commits any mal-feasance or misfeasance, or breach of trust in respect of the trust"Neglect of duty, wrongful or improper acts, or breach of trust
(d)"misappropriates or deals improperly with the properties of the trust of which he is a trustee"Misuse of trust property
(e)"accepts any position in relation to the trust which is inconsistent with his position as a trustee"A conflicting role
(f)"if convicted of an offence involving moral turpitude"Conviction of that kind

The section has six grounds, (a) to (f). Several turn on words like "persistent" and "continuously", so a single lapse may not be enough on clauses (a) and (c); clauses (b), (d) and (f) are worded differently and should be read on their terms.

The Indian Trusts Act, 1882 has its own grounds for the removal of trustees by a court, in a different Act that does not apply to public charitable or religious trusts; see trustee removal grounds and process under the Trusts Act for that Act.

The procedure (sub-section (2), substituted in 2017)

Sub-section (2) was substituted by Mah. 55 of 2017, s. 10(a). Its steps:

  1. Prima facie material. The Charity Commissioner may issue notice "only when he finds that there is prima facie material to proceed against the said person" (clause (a)).
  2. Reply in fifteen days. The trustee "shall submit his reply thereto within fifteen days from the date of receipt of notice" (clause (b)).
  3. Charges. If there is no reply or the reply is not satisfactory, the Charity Commissioner "shall frame charges against the said person within fifteen days of the filing of the reply or the default in the filing of reply" (clause (c)).
  4. Opportunity and evidence. He gives the person "an opportunity of meeting such charges" and considers "the evidence adduced against him and in his favour".
  5. Order within three months. He "may pass order regarding suspension or removal or dismissal within three months from the date of framing of charges". If it is not practicable to issue notice, frame charges and pass final orders within the stipulated time, "he shall record reasons for the same".
  6. Reasoned order. The order "shall state the charges framed against the trustee, his explanation, if any, and the finding on each charge with reasons therefor" (clause (d)).

Interim suspension, fit person, appeal and finality

  • Interim suspension (3). "Pending disposal of the charges framed against a trustee the Charity Commissioner may place the trustee under suspension."
  • Fit person (4). If the order removes or suspends a sole trustee, or the remaining trustees under the instrument "cannot function or administer the trust without the vacancy being filled", the Charity Commissioner "shall appoint a fit person to discharge the duties and perform the function of the trust", who holds office only until a trustee is duly appointed according to the instrument of trust.
  • Sub-section (5) was deleted by Mah. 55 of 2017, s. 10(b).
  • Appeal (6). Sub-section (6), substituted by Mah. 55 of 2017, s. 10(c), says "An appeal shall lie to the Court against the order made under sub-section (1), as if such decision was a decree of a district court as a court of original jurisdiction from which an appeal lies, within sixty days from the date of the order." The meaning of "the Court" is given in the definitions section, which is not set out in this article.
  • Finality (7). "The order of the Charity Commissioner shall, subject to any order of the Court or in appeal, be final."

When trustees are removed and new ones are needed, the Charity Commissioner also has the appointment power in Section 47. Appeals from findings of Deputy and Assistant Charity Commissioners are under Section 70.

Illustration. The trustees of a Latur education society have not filed accounts for several years despite reminders, and one of them has refused to produce the vouchers the Charity Commissioner ordered. A member of the society applies under section 41D. The Charity Commissioner finds prima facie material and issues notice. The trustee replies within fifteen days but unsatisfactorily. Charges are framed within fifteen days of the reply, the trustee leads evidence, and an order is passed within three months of the charges, setting out each charge, his explanation and the finding with reasons. Pending the final order, the Charity Commissioner places him under interim suspension. The trustee appeals to the Court within sixty days.

Need help in a removal proceeding?

Whether you are a trustee defending a notice or a person interested seeking removal, our team can assess the grounds, prepare the reply or application, and plan the evidence and appeal. Contact us for legal dispute resolution support.

Key takeaways

  • Six grounds, (a) to (f), allow suspension, removal or dismissal of a trustee by the Charity Commissioner.
  • Proceedings may start on application, on a section 41B report or suo motu.
  • Notice only on prima facie material; reply within fifteen days; charges within fifteen days; order within three months of charges; reasons recorded if time cannot be kept.
  • Interim suspension is possible; a fit person is appointed where the trust cannot function.
  • Appeal to the Court lies within sixty days from the date of the order.
  • Sub-sections (2) and (6) were substituted, and (5) deleted, by Mah. 55 of 2017.

Read next

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.

Quick recapKey facts & short answers

Key Facts About Section 41D

  • Applies in: All states across India, under the relevant central law.
  • Mode: Mostly online via the official government portal.
  • Typical timeline: Ranges from a few days to a few weeks depending on the case.
  • Non-compliance: May attract penalties, interest or late fees.
  • Expert help: TaxClue completes the entire process end to end for you.

On what grounds can a trustee be removed under section 41D?

Persistent default in submitting accounts, reports or returns; wilful disobedience of lawful orders; continuous neglect, malfeasance, misfeasance or breach of trust; misappropriation or improper dealing with trust property; accepting an inconsistent position; and conviction of an offence involving moral turpitude.

How long does a trustee have to reply to the notice?

Fifteen days from the date of receipt of the notice.

Do not copy last year's filing without checking whether last year's law still applies.

— TaxClue Compliance Desk

Section 41D: a key compliance topic in Indian tax and corporate law that businesses and individuals must understand to remain compliant.

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Disclaimer: This article is for general informational purposes only and does not constitute professional tax, legal or financial advice. Laws, rates and due dates change and can vary by individual case — always verify with the relevant government source (e.g. mca.gov.in, incometax.gov.in) or consult a qualified professional before acting. TaxClue accepts no liability for decisions taken based on this content.

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Questions, answered

Short, direct answers to the 6 questions readers ask most on this topic.

Persistent default in submitting accounts, reports or returns; wilful disobedience of lawful orders; continuous neglect, malfeasance, misfeasance or breach of trust; misappropriation or improper dealing with trust property; accepting an inconsistent position; and conviction of an offence involving moral turpitude.

Fifteen days from the date of receipt of the notice.

Yes. Under sub-section (3), pending disposal of the charges he may place the trustee under suspension.

The Charity Commissioner must appoint a fit person to discharge the duties until a trustee is duly appointed according to the instrument of trust.

Sixty days from the date of the order, to the Court.

Yes. It must state the charges, the explanation, if any, and the finding on each charge with reasons.