WELFARE DEPARTMENTS

CHARITY COMMISSIONER

Bombay Public Trusts Act.

PRIOR TO 1950, THE RELIGIOUS AND CHARITABLE TRUSTS in the State were governed by various enactments, Central as well as Provincial, based on religion. In 1950, a composite legislation called the Bombay Public Trusts Act (XXIX of 1950) was passed, which can be made applicable to all public trusts without distinction of religion. This Act defines 'public trust' as an express or constructive trust for either a public religious or charitable purpose or both, and includes a temple, a math, a wakf, a dharmada or any religious or charitable endowment and a society formed either for a religious or charitable purpose or for both and registered under the Societies Registration Act (XXI of 1860).

The State Government is empowered to apply this Act to any public trust or class of public trusts and on such application the provisions of previous Acts cease to apply to such trust or class of trusts. The Act has been made applicable to the following classes of public trusts with effect from 21st January, 1952:—

(1) temples;

(2) maths;

(3) wakfs;

(4) public trusts other than (1), (2) and (3) above, created or existing solely for the benefit of any community or communities or any section or sections thereof:

(5) societies formed either for religious or charitable purposes or for both registered tinder the Societies Registration Act, 1860;

(6) dharmadas, i.e., any amounts which, according to the custom or usage of any business or trade or agreement between the parties relating to any transaction, are charged to any party to the transaction or collected under whatever name as being intended to be used for a charitable or religious purpose; and

(7) all other trusts, express or constructive, for cither a public religious or charitable purpose or for both.

The Act has not been made applicable to the charitable endowments vested in the Treasurer of Charitable Endowments under the provisions of the Charitable Endowments Act (VI of 1890).

A Charity Commissioner with headquarters at Bombay has been appointed to administer the Act. The first Charity Commissioner was appointed on 14th August,.1950. An Assistant Charity Commissioner has been appointed for the Poona Region with Poona as headquarters which consists of the districts of Poona, Talgaon, Dhulia, Nasik, Ahmadnagar and Sholapur. The Assistant Charity Commissioner is directly responsible to the Charity Commissioner.

Duties of Trustees.

The Act imposes a duty on the trustee of a public trust to which the Act has been applied to make an application for the registration of the trust within three months of the application of the Act or its creation, giving particulars specified in the Act, which include—(a) the approximate value of movable and immovable property owned by the trust, (b) the gross average annual income of the trust property, and (c) the amount of the average annual expenditure of the trust. No registration is, however, necessary in the case of dharmadas which are governed by special provisions of the Act in certain respects. Trusts registered under any of the previous Acts are deemed to be registered under this Act,

The following statement furnishes statistics relating to the Public Trusts in Jalgaon district registered in the Public Trusts Registration Oflice, Poona Region, Poona, till 30th June 1958:—

PUBLIC TRUSTS IN JALGAON DISTRICT Property, Income and Expenditure.

A registration fee ranging from Rs. 3 to Rs. 25 is levied depending on the value of the property of the public trust. An annual contribution at the rate of 2 per cent of the gross annual income is also recovered which is credited to the Public Trusts Administration Fund created under the Act. The contribution does not form part of the general revenues of the State. Public trusts functioning exclusively for the purpose of advancement and propagation of secular education or medical relief and public trusts having a gross annual income of Rs. 300 or less are exempted from the payment of contribution. Deductions from the gross annual income for computing contribution are allowed in respect of amounts spent on the advancement and propagation of secular education, medical relief, donations, grants received from Government or local authorities, interest on depreciation or sinking fund, taxes to be paid to Government or local authority, etc. The contribution is levied on the net annual profits in the case of public trusts conducting a business or trade.

Every trustee has to keep regular accounts of the trust which have to be audited annually by Chartered Accountants or persons authorised under the Act. A Chartered Accountant can audit accounts of any public trust but other persons authorised under the Act are permitted to audit accounts only of public trusts having a gross annual income of Rs. 1,000 or less. The auditor has to submit a report to the Deputy or Assistant Charity Commissioner of his region on a number of points, viz., whether accounts are maintained according to law and regularly, whether an inventory has been maintained of the movables of the public trust, whether any property or funds of the trust have been applied on an object or purpose not authorised by the trust, whether the funds of the trust have been invested or immovable property alienated contrary to the provisions of the Act, etc. The public trusts having gross annual income of Rs. 500 or less have, however, been exempted from the provisions of audit on condition that the trustees should prepare and furnish to the Deputy or Assistant Charity Commissioner of the region concerned a full and true statement of income and expenditure in the forms of Schedules IX-A and 1X-B of the Bombay Public Trusts Rules, 1951, duly signed and verified by all the trustees.

If on consideration of the report of the auditor or of an officer authorised under Section 37, the accounts and explanation, if any, furnished by the trust or any other persons concerned, the Deputy or Assistant Charity Commissioner is satisfied that the trustee or any other person has been guilty of gross negligence, breach of trust or misapplication or misconduct resulting in a loss to the trust, he has to report to the Charity Commissioner who, after due inquiry, determines the loss, if any, caused to the trust and surcharges the amount on the person found responsible for it. No sale, mortgage, exchange or gift of any immovable property and no lease for a period exceeding ten years in the case of agricultural land or building belonging to a public trust is valid without the previous sanction of the Charity Commissioner. The trustee of a public trust is bound to invest the surplus funds of the trust in public securities or first mortgage of immovable property on certain conditions. For making an investment in any other form, the permission of the Charity Commissioner must be obtained.

Application of funds by cypres.

If the original object of a public trust fails wholly or partially, if there is surplus income or balance not likely to be utilised, or in the case of a public trust other than a trust for religious purpose, if it is not in the public interest expedient, practicable, desirable, necessary or proper to carry out, wholly or partially, the original intention of the author of the public trust or the object for which the public trust was created, an application can be made to the District Court or City Civil Court, Bombay, as the case may be, for application cy pres of the property, or income of the public trust or any of its portion.

If there is a breach of trust or if a declaration is necessary that a particular property is the property of a public trust, or a direction is required to recover the possession of such property, or for the administration of any public trust, two or more persons, having an interest in the trust, or the Charity Commissioner, can file a suit in the District Court, or City Civil Court, Bombay, as the case may be, to obtain reliefs mentioned in the Act. If the Charity Commissioner refuses his consent to the institution of the suit, an appeal lies to the Bombay Revenue Tribunal constituted under the Bombay Revenue Tribunal Act (XII of 1939). The Charity Commissioner can also file such a suit on his own motion. The Charity Commissioner may, with his consent, be appointed as a trustee of a public trust by a Court or by author of a trust provided his appointment is made as a sole trustee. The Court is, however, not empowered to appoint the Charity Commissioner as a trustee of a religious public trust. In such cases, the Charity Commissioner may levy administration charges on these trusts as prescribed in the rules framed under the Act.

Inquiries by Assessors.

Inquiries regarding the registration of a public trust or regarding the loss caused to a public trust or public trusts registered under the previous Acts, in consequence of the act or conduct of a trustee or any other person, have to be conducted with the aid of assessors not less than three and not more than five in number. The assessors have to be selected, as far as possible, from the religious denomination of the public trust to which the inquiry relates. The presence of assessors can, however, be dispensed with in inquiries where there is no contest. A list of assessors has to be prepared and published in the Official Gazette every three years.

Charity Commissioner and Charitable Endowments.

The Charity Commissioner is deemed to be and has always been the Treasurer under Charitable Endowments Act, 1890.

Punishment.

Contraventions of the Act amount to offences and are punish- able with maximum fines ranging from Rs. 500 to Rs. 1,000 depending on the nature of contravention. The Charity Commissioner is the sole authority for launching prosecutions in the case of such contraventions.

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