Bombay Public Trusts Act
Hemant Dalal
(Querist) 22 February 2010
This query is : Resolved
My client, who is a non resident indian, wishes to establish a public charitable trust in Surat, Gujarat. Our application is being rejected by the Asst. Charity Commissioner on the ground that since my client is a Non Resident Indian and is not having any permanent residential house in India, he can not become a trustee in the proposed Trust.
The Asst. Charity commissioner is pleading on the ground that there is a provision in the Trust Act that a trustee has to take Charity commissioner's permission to remain out of india continuously for more than 6 months and it is implied that only a resident person can become a Trustee
Please advise as to whether this contention is right? This is a bit urgent, since the application is pending for more than one year.
Thanks
A V Vishal
(Expert) 22 February 2010
47. Power of Charity Commissioner to appoint, suspend, remove or discharge trustees and invest property to new trustees :
(1) Any person interested in a public trust may apply to the Charity
Commissioner for the appointment of a new trustee, where there is no trustee for such trust or the trust cannot be administered until the vacancy is filled; or
for the suspension , removal or discharge of a trustee, when a trustee of such
trust,
(a) disclaims or dies.
(b) is for a continuous period of six months absent from India without the leave of the Charity Commissioner or the Deputy or Assistant Charity Commissioner of the officer authorised by the State Government in this behalf ;
(c) leaves India for the purpose of residing abroad;
(d) is declared as insolvent;
(e) desires to be discharged from the trust.;
(f) refuses to act as a trustee;
(g) becomes in the opinion of the Charity
Commissioner unfit or physically incapable to act in the trust or accepts a position which is inconsistent with his position as
trustee;
(h) in any of the cases mentioned in Chapter III, is not available to administer the trust; or
(i) is convicted of an offence punishable under this act or an offence involving moral turpitude.
A V Vishal
(Expert) 22 February 2010
Your client can be a settlor, it will be legal and convienient, he can name his other indian friends/relatives as trustees.
Hemant Dalal
(Querist) 22 February 2010
But as a settlor, will he be able to observe the disposal of the trust funds in proper manner? He wants to be active in trust's day to day matter. He will transfer the funds here and then manage the same for the charitable purposes. and many thanks for such early reply.
A V Vishal
(Expert) 22 February 2010
Yes as a settlor he can reserve rights/powers to oversee that the funds are employed and utilized for the acheivement of the objects of the trust.
