Civil Judge R V Jatale passed the order last week on an appeal filed by Mehta against the April 5 order of Joint Charity Commissioner.
The Commissioner had passed the order on the ground that Prabodh had been convicted for fraud, forgery and money laundering by a Belgium Court, the offences which amounted to "moral turpitude" under the Bombay Public Trust Act.
"The message should be clear to all and sundry that the persons who are tainted would not be allowed to stand prominently in the public institute and participate therein. In fact, their presence would be a menace to the public trust, public property and public life," the judge said.
Mahesh Jethmalani, Charu Mehta's lawyer, had contended that as Prabodh had been convicted in a fraud case in Belgium, his acts fell under the definition of the term "mischief" in the Bombay Public Trust Act.
Whereas Prabodh's lawyer P K Pandit had argued that the offence was not committed in India and an Indian Court could not take cognisance of it. Further, the Belgium court had later passed 'rehabilitation order', which almost nullified the effect of conviction. Also, the conviction was not related to trust property, he had argued.