40. 1[Power of Charity Commissioner to issue orders on report received under section 39 or to remand matter, etc.].- 2[The Charity Commissioner may,] after considering the report of the Deputy or Assistant Charity Commissioner, giving an opportunity to the person concerned and holding such inquiry 3[as he thinks fit,-
(1) determine-]
(a) the amount of loss caused to a public trust;
(b) whether such loss was due to any 4[gross negligence,] breach of trust, mis-appropriation or misconduct on the part of any person;
(c) whether any of the trustees, or 5[any person connected with the public trust] was responsible for such loss ;
(d) the amount which any of the trustees or 6[any person connected with the public trust] is liable to apply to the public trust 7[for such loss, or],
8[(2) remand the matter for further inquiry to the officer, who made the report or to any other officer as he thinks fit or for reasons to be recorded in writing, compromise the matter or may drop the matter if a suit is instituted for obtaining a decree for a direction for taking accounts under section 50.]
(1) determine-]
(a) the amount of loss caused to a public trust;
(b) whether such loss was due to any 4[gross negligence,] breach of trust, mis-appropriation or misconduct on the part of any person;
(c) whether any of the trustees, or 5[any person connected with the public trust] was responsible for such loss ;
(d) the amount which any of the trustees or 6[any person connected with the public trust] is liable to apply to the public trust 7[for such loss, or],
8[(2) remand the matter for further inquiry to the officer, who made the report or to any other officer as he thinks fit or for reasons to be recorded in writing, compromise the matter or may drop the matter if a suit is instituted for obtaining a decree for a direction for taking accounts under section 50.]
Source footnotes
1. These words were substituted for the marginal note, by Mah. 20 of 1971, s. 27(g).2. These words were substituted for the words "The Charity Commissioner, shall" by Mah. 20 of 1971, s. 27 (a).
3. These words, brackets and figures were substituted for the words "as he thinks fit, determine-" by Mah. 20 of 1971, s. 27 (b).
4. These words were inserted by Mah. 20 of 1971, s. 27(c).
5. These words were substituted for the words "any other person" by Mah. 20 of 1971, s. 27(d).
6. These words were substituted for the words "any other person" by Mah. 20 of 1971, s. 27(e)(i).
7. These words were substituted for the words "for such loss" by Mah. 20 of 1971, s. 27(e)(ii).
8. Clause (2) was added by Mah. 20 of 1971, s. 27(f).
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Section 1 · Short title, extent, operation and application.Section 2 · Definitions.Section 2A · Deleted.Section 3 · Charity Commissioner.Section 3A · Joint Charity Commissioners.Section 4 · Qualifications for appointment of Charity Commissioner and Joint Charity Commissioner.Section 5 · Deputy and Assistant Charity Commissioners.Section 6 · Subordinate officers.India Code, Government of India. Text fetched 11 Oct 2026. Check the linked official text and subsequent notifications when applying a provision.