Gujarat studies Maharashtra model to tackle nearly 100,000 defunct trusts

The Gujarat government has begun studying Maharashtra's legal and technological reforms as it prepares to amend its public trust law to better regulate dormant trusts and strengthen oversight of charitable institutions.

Gujarat has around 100,000 trusts that are either dormant, defunct or no longer carrying out the charitable activities for which they were established.

A delegation from the Gujarat government, led by the state’s secretary (law), spent two days at the Maharashtra Charity Commissioner’s office this week to examine the amendments made to the Maharashtra Public Trusts Act and the state’s technology-driven model of trust administration.


According to officials, the issue of inactive and non-functional trusts dominated the discussions.

Among the key provisions discussed were Sections 30A and 50B of the Maharashtra Public Trusts Act. Officials exchanged views on the implementation of these provisions, their practical impact and how they have strengthened governance and accountability in the charitable sector.

The delegation also discussed the legal framework governing inactive trusts and the safeguards built into Maharashtra’s regulatory regime.

The issue of perpetual trusteeship also figured during the interactions.

The Gujarat delegation sought details on Maharashtra’s recent legislative changes governing the appointment and tenure of trustees, including provisions recognising perpetual and tenure-based trustees.

Officials discussed the rationale behind these amendments, which seek to bring greater clarity to trust governance, enhance accountability and ensure smoother succession in the administration of public trusts.

Gujarat is understood to be examining whether similar provisions can be incorporated into its own legislation.

Beyond the legal reforms, the delegation studied Maharashtra’s digitisation of trust administration, an area that has significantly transformed the functioning of the Charity Commissioner’s office. The discussions covered online registration of trusts, digitisation of trust records, electronic filing and tracking of change reports, online availability of trust documents and appeal records, and the integrated digital platform that enables stakeholders to access trust-related information without visiting government offices.

Gujarat is keen to adopt similar technology-driven systems to improve transparency, reduce delays and make regulatory services more accessible.

“We were happy to host the delegation. The exchange pertained to the amendments made to the Trust law and the technology that is being used by the Maharashtra Charity Commissioner’s office,” said Amogh Kaloti, Maharashtra Charity Commissioner. “We are hopeful that the discussion would help them in carrying out their amendments.”

The Gujarat government is expected to draw upon Maharashtra’s experience while finalising amendments to its public trust legislation. The proposed reforms are likely to focus on strengthening governance of charitable institutions, modernising trust administration through technology and, most importantly, addressing the long-pending challenge of regulating nearly 100,000 dormant and defunct trusts that remain on the state’s register.