The Bombay High Court has delivered a key ruling on the contributions levied by the State Government of Maharashtra on public trusts under the Maharashtra Public Trusts Act, 1950. In the case of Devendra Prakash Shah & Others v. State of Maharashtra, the Court addressed challenges to the mandatory contributions to the Public Trusts Administration Fund (PTA), which had been temporarily stayed due to surplus funds with the Charity Commissioner.
The High Court clarified that while the interim stay was justified at the time, the current depletion of PTA funds necessitates reassessment, allowing the State Government and Charity Commissioner to determine fresh contribution rates based on statutory parameters. This decision provides clarity for public trusts regarding their prospective liability and emphasizes that contributions will now be assessed on current financial realities, rather than historical orders.
