The charity tribunal has rejected two appeals seeking to overturn decisions made by the Charity Commission.
The regulator welcomed the judgment upholding its decision to appoint new trustees to the Birmingham-based Mohiuddin Trust.
The regulator made the decision as part of its statutory inquiry into the charity, which was set up to advance of Islam and relieve poverty, that concluded in March this year.
It found misconduct and/or mismanagement at the charity that resulted from a protracted dispute between previous trustees.
The appeal sought to challenge the commission’s decision to appoint two out of the five trustees but it was turned down by a tribunal judge who upheld the regulator’s decision in full.
A second appeal was brought by London-based charity The Knightland Foundation.
The grant-maker challenged the commission’s decision to appoint interim managers as part of its ongoing inquiry.
The commission opened an inquiry into the charity in May following unresolved concerns around insufficiently documented loan agreements and transactions to connected companies.
Two interim managers were appointed when the inquiry began.
A tribunal judge dismissed the appeal after finding the commission was warranted in appointing interim managers on the basis “of a long-standing failure by the trustees to document decisions and decision-making processes, particularly around the use of the charity’s funds”.
The commission said the interim managers remained in place and its inquiry was ongoing.