On 13th March 2012, Bombay High Court disbanded Sai Sansthan Trust. According to orders of Aurangabad Bench of Bombay High Court, the Shirdi Sai Sansthan Trust was disbanded. This news was unbelievable and shocking because the trust was looking after every aspect of Shirdi Sai Baba temple and other temples attached to it since a long period.
Shirdi Sai Sansthan Trust had the responsibility of taking care of the day to day activities of the Saibaba Samadhi temple. Various facilities for the devotees like accommodation, Prasad (Lunch at very reasonable rate), refreshments etc. were provided by the trust. The trust was also looked after hospitals, blood banks, schools and industrial training institutes. Apart from these routine responsibilities the trust has funded Rs. 15 lacs towards improvement of Shidi’s drinking water facilities. The trust has already constructed Sai Baba Bhakta Niwas. The building of Bhakta Niwas can accommodate around 3500 devotees with 560 self contained rooms and two halls. The huge hall called Prasadalaya was also built by sansthan to provide lunch and dinner to the devotees. The trust managed everything very easily include managing more than one thousand devotees at same time.
The Sansthan was under observation when allegations of misuse of funds were received by the authorities. Based on these allegations, local court at Rahata village near Shirdi had advised the police to conduct investigation and register a case against the alleged trusties. The charge on the three accused trusties was submitting fake bills and consequently cheating the Sansthan for Rs 1.67 lacs. In response to a Public Interest Litigation (PIL) filed by some social activists the court has directed district collector to supervise the formation of a new governing body.