Section 67A 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 67A lets an officer not below the rank of Assistant Charity Commissioner accept a composition amount and authorise the compounding of an offence under the Act, before or after proceedings begin, with a limit of one-fourth of the maximum fine.
This article explains section 67A 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 officer, not below the rank of Assistant Charity Commissioner, under whose direction the complaint has been lodged, may, before or after proceedings begin for any offence under the Act, authorise compounding on receipt of a composition amount he deems fit. He has regard to the nature of the default, past and present conduct of the accused and other relevant factors. The composition amount shall not exceed one-fourth of the maximum fine provided under the section concerned, and the amount is credited to the Public Trust Administration Fund.
Where the section comes from
Section 67A was inserted by Mah. 20 of 2009, s. 4, as the footnote prints. It sits in Chapter X, after the penalty sections explained in Sections 66C and 67. The same 2009 Act raised the general fine in section 67 to the figure printed there.
Sub-section (1): who may compound, when and how much
"The officer not below the rank of Assistant Charity Commissioner under whose direction the complaint has been lodged may, either before or after the institution of proceedings for any offence punishable under this Act, on receipt of composition amount, which he deems fit, having regard to the nature of the default, past and present conduct of the accused and other relevant factors, may authorise compounding of offence:"
| Element | What the text says |
|---|---|
| Who | "The officer not below the rank of Assistant Charity Commissioner under whose direction the complaint has been lodged" |
| Offences | "any offence punishable under this Act" |
| When | "either before or after the institution of proceedings" |
| Condition | "on receipt of composition amount, which he deems fit" |
| Factors | "the nature of the default, past and present conduct of the accused and other relevant factors" |
| Result | He "may authorise compounding of offence" |
Several points come from the text. The officer is the one "under whose direction the complaint has been lodged"; it is the same officer whose direction started the complaint, and he must be of the rank of Assistant Charity Commissioner or higher. So a Deputy Charity Commissioner or the Charity Commissioner, if he directed the complaint, may compound. The power is available at either stage, before or after the institution of proceedings. And the word "may" means compounding is a discretion, not a right of the accused.
The three factors named are the nature of the default, the past and present conduct of the accused and "other relevant factors". A first-time, minor, technical default by a trustee who then corrects it stands differently from a repeated or wilful default. The section does not give a scale of amounts or a list of offences that cannot be compounded.
Trustees facing a complaint can seek legal dispute resolution advice on whether to approach the officer for compounding.
The proviso: the one-fourth limit
"Provided that, the composition amount shall not exceed one-fourth of the maximum amount of fine provided under the respective sections."
The limit is tied to "the respective sections", that is, the section that punishes the offence. For an offence under section 67, where the fine is printed in the 2018 text as Rs. 10,000, one-fourth of the maximum fine is the ceiling; for other sections the ceiling follows from their own printed fines. This article does not work out any figure for sections that are not explained here. The ceiling applies to the composition amount, so the officer may take less. The fines themselves are those of the 2018 official text and should be checked against the current law.
An offence for which the section provides imprisonment as well as a fine, for example section 66C (up to three months, or fine, or both), has a "maximum amount of fine" in the section, and the composition amount is a fraction of that fine. The text does not say that compounding replaces the imprisonment; it says the officer "may authorise compounding of offence".
Sub-section (2): where the money goes
"The amount of composition of offences so recovered shall be credited to the Public Trust Administration Fund." This is the fund established by Section 57, here written "Public Trust Administration Fund" as printed. The money is not paid to the officer or to the complainant.
How this fits with sanction for prosecution
A prosecution cannot start without the previous sanction of the Charity Commissioner: see Section 83. Compounding gives a route that does not go to trial. The text does not say what the effect of compounding is on a case already in Court; it says only that the officer may authorise compounding after proceedings are instituted. The sub-section does not mention the Court's permission.
Illustration. A trustee in Akola has failed, without reasonable cause, to comply with a direction of the Deputy Charity Commissioner, an offence for which the fine may extend to the figure printed in section 67. The Deputy Charity Commissioner had directed the complaint. The trustee corrects the default and approaches him; having regard to the nature of the default and the trustee's past conduct, the Deputy Charity Commissioner receives a composition amount below one-fourth of the maximum fine and authorises the compounding. The amount is credited to the Public Trust Administration Fund.
Need help with a complaint or compounding?
If a complaint has been lodged against a trustee or a trust, early advice helps. Our team can prepare the approach to the officer and represent the trustee through legal dispute resolution services.
Key takeaways
- An officer not below the rank of Assistant Charity Commissioner, under whose direction the complaint was lodged, may authorise compounding.
- It can be done before or after proceedings begin.
- The composition amount is what he deems fit but cannot exceed one-fourth of the maximum fine under the respective section.
- The amount is credited to the Public Trust Administration Fund.
- The section lists no offences excluded from compounding.
Read next
- Sections 66C and 67: offences under section 41C and other offences
- Section 83: previous sanction for prosecution
- Section 57: the Public Trusts Administration Fund
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.