Can a nri or foreign resident indian can become trustee in indian trust

Querist : Anonymous (Querist) 06 November 2011 This query is : Resolved
I WISH TO KNOW IF A NRI OR FOREIGN RESIDENT INDIAN CAN BECOME TRUSTEE IN A PUBLIC TRUST IN INDIA.

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N.K.Assumi (Expert) 06 November 2011
There was considerable confusion about a trust in which NRIs are trustees or beneficiaries. Recently, the Reserve Bank of India (RBI) has issued internal guidelines and cleared several applications on the following grounds:
1. Appointment of an NRI as a trustee in a trust in India does not require any approval under Foreign Exchange Management Act.
2. Revenue income of the trust, which belongs to NRI beneficiaries, can be remitted outside India after payment of necessary tax.
3. Any trust in which an NRI is a beneficiary or a trustee cannot enter into prohibited activities. In other words, such a trust cannot carry on agricultural activities and cannot trade in real estate.
4. RBI has not taken any decision in the matter of residential status of a trust.
Note:
The above observations have been made based on the permissions granted by RBI. We do not have the RBI guidelines in writing.

Querist : Anonymous (Querist) 06 November 2011
in india but as per trust act NRI can not become a trustee since he is out of jurisdiction of court for prosecution.

Shailesh Kumar Shah (Expert) 06 November 2011
When you knew the answer? why asking us?

Querist : Anonymous (Querist) 06 November 2011
i just got info. it says a non domiciled person can not become a trustee since he is out of jursdiction of civil court .can anyone inform more details.

Shailesh Kumar Shah (Expert) 06 November 2011
can you provide full details?

Rajeev Kumar (Expert) 06 November 2011
I agree with N.K. ASSUMI.

Shonee Kapoor (Expert) 06 November 2011
I also need clarification on this issue. If someone has definitive information, please share.

Regards,

Shonee Kapoor
harassed.by.498a@gmail.com

Querist : Anonymous (Querist) 07 November 2011
pl note .in section 60 sl no 4 under title RIGHT TO PROPER TRUSTEES SL NO 4-PERSONS DOMICILED ABROAD - the normal rule as regards
the appointment of a person as trustee is that he must be a person who is amenable to the jurisdiction of court.the reason behind the rule is that otherwise the court would not be in a position to exercise its supervisory jurisdiction over the administration of the trust.obviously a trustee out of jurisdiction will not be under the control of court.hence the general rule is that a person domiciled abroad is not a proper person to be appointed as a trustee.

Querist : Anonymous (Querist) 07 November 2011
pl refer indian trust act 1982 section 60 sl no.4.

Anuj Gupta (Expert) 05 October 2012
We can get further guidance from Sec 73 of the Indian Trusts act where it is provided that a new Trustee may be appointed in place of the existing trustee if he is continuously absent for a period of six months from India or leaves India for the purpose of residing abroad.

Querist : Anonymous (Querist) 08 April 2014
it is very very clearly stipulated in inian trust act 1882 and further amendments that a person who is not under jurisdiction of civil court of area where trust is situated and who is non domiciled person or alien in india can not become trustee of any trust. only a citizen of india can become trustee in any trust.pl refer section 10 0f indian trust act.

ajay sethi (Expert) 08 April 2014
we dont reply to anonymous queries

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