Gujarat Public Trust Bill, 2011 (Proposed Act)
Sailent Features :
1. In any proceeding related to Trust in Court, Tribunal or Forum, C.C. is necessary party,
(Sec. 32). The cost of litigation incurred by C.C. shall be realized from the concerned
Trust. (Sec. 107, 109 & 110). It is an extra burden on Trusts.
2. Trusts have to submit budget, one month before of commencement of financial year
(See. 33). Income and expenditure of Trusts are fluctuating.
3. C.C. and Tribunal may direct Trusts regarding collection of fund and use thereof,
directions are binding. (Sex. 39). It is encroachment in the right of management of
Trust.
4. Power of Inspection and search. (Sec. 41) Harshest provision amongst all other similar
Trust Acts of States in India.
5. Assessment of loss suffered by Trust and realization thereof from person reponsible
including Trustee. (Sec 42 to 45). No such provision in any similarly situated Trust Acts.
6. On application in writing by two or more persons scheme may be framed for management
of Trust or order of amalgamation. (Sec. 54).
7. The fee calculated on the basis of audited balance sheet has to be deposited along with
submission of balance sheet, subject to assessment, (Sec. 82(2)), It is amendment in
practice prevailing.
8. Penalty for violations enhanced @ 10% to 50% i.e. Rs. 2000/- to Rs. 10,000/-
(Sec. 86). Violation of provisions of Act is congnizable offence and sentence up to 3
years imprisonment. (Sec. 87) Highest and harshest penalty vis-a-vis similarly situated
other Trust Acts. See chart for penalty prescribed in other State Acts.
9. Amalgamation or merger of Trust may be ordered in specified conditions.
(Sec. 88 to 92)
10. State Government may appoint Administrator for Trust in specified circumstances
(Sec. 93).
11. Trusts have to file quarterly return of Income and expenditure. (Sec. 94). It is extra
burden on management.
12. Constitution of Trubunal having Appellate and Original Jurisdiction. expenses incurred
on Trubunal shall be realized from Public Trust Fund. (Sec. 96 to 105).
DEMANDS OF PROVISIONS
1. In any proceeding related to Trust in any Court, Tribunal of Forum, C.C. is necessary
party, in his absence order/judgment deemed to be void. (Sec. 32). The entire cost of
litigation incurred by C.C. or Tribunal shall be realized from the concerened Trust.
(Sec. 107, 109 & 110). It is an extra burden on Trusts and contrary to the fundamental
principle of bearing coast of litigation.
2. Trust have to submit budget, one month before commencement of financial year (Sec.
33). So far Trusts are concerned incomes and expenditures are fluctuating, depends
upon the prevailing circumstances.
3. C.C. and Tribunal may direct Trusts regarding collection of fund and use thereof, the
object of Trust and directions are binding. (Sec. 39). An encroachment upon the right
of management of the Trust.
4. Power of Inspection and search. (Sec. 41) Harshest provision amongst all other similar
Trust Acts in India.
5. Assessment of loss suffered by Trust and realization thereof from Trustees. (Sec. 42 to
45). No such provision in any similarly situated Trusts Acts.
6. On application in writing by two or more persons interested in the Trust, scheme may be
framed for management of Trust or order of amalgamation or merger. (Sec. 54).
7. Penalty for violations enhanced varying between Rs. 2000/- to Rs. 10,000/- (Sec. 86).
Violation of provisions of Act is congnizable offence and sentence up to 3 years
imprisonment (Sec. 87). Highest and harshest penalty vis-a-vis similarly situated other
Trust Acts. Please see enclosed chart for penalty prescribed in other State Acts.
8. Amalgamation or merger of Trust may be ordered in specified conditions. The property
of Trust may vest in State. (Sec. 88 to 92).
9. State government may appoint Administrator for Trust in specified circumstances. (Sec.
93).
10. Trusts have to file quarterly return of Income and expenditure. (Sec. 94). It is extra
burden on management. No such provision in other Trust Acts.
11. Constitution of Tribunal having Appellate and Original Jurisdiction. Expenses incurred
on Tribunal shall be realized from Public Trust Fund. (Sec. 96 to 105).
Aforesaid are few exemplary provisions, which on face of it shows that in the event
provisions of Bill becomes operative, it would be difficult rather impossible for the Trusts
to carry on their operation in the State. It is worth to point out that majority of Trustees of
the Public Trusts are are working honorary with sole objective to serve humanity and
leaving beings.
1. Charitable and Religious Endowments Act, 1920 - NO penalty. Default or violation civil
wrong.
2. Charitable and Religious Trusts Act, 1920 - No penalty. Default or violation civil wrong.
Note : In many states including State of Uttar Pradesh provisions of these Acts are
applicable.
3. Andhra Pradesh Charitable and Hindu Religious Institutions and Endowments Act,
1987 - Fine up to Rs. 200/- (Sec. 147).
4. Bihar Hindu Religious Trusts Act, 1950 - Fine up to Rs. 500/- on failure to pay fine
simple imprisonment which may extend up to 2 months (Sec. 67)
5. Bombay Public Trust Act, 1950 - Fine up to Rs. 2000/-. (Sec. 66 and 67).
6. Karnataka Hindu Religous Institutions and Religious Endowments Act, 1997 - No penal
provision.
7. Kerla - Travanchore - Cochin Hind Religious Institutions Act, 1950 - No penal provision.
8. Madhya Pradesh Public Trusts Act, 1951 - Penalty up to Rs. 1000/- (Sec. 33).
9. Orissa Hindu Religious Endowments Act, 1969 - Fine u to Rs. 500/- and in default to
pay fine up to Rs. 50/- each day. (Sec. 70).
10. Rajasthan Public Trusts Act, 1959 - Fine up to Rs. 500/- (Sec. 70).
11. Tamil Nadu Hindu Religious and Charitable Endowments Act, 1959 - No penal provision.
Rather Trustee impose fine or suspend office holder or servant of Trust (Sec. 56).
Encroacher and unlawful possessor of Trust property be sentenced imprisonment up to
3 months (Sec. 79 B).
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