Public trust per mptact 1950
p phipson
(Querist) 04 August 2018
This query is : Open
I am a member of a Public Trust situated in Mumbai covered under Mumbai Public Trust Act. We have 2 Halls in our owned premises which we have been giving out to Individuals for them to hold their functions- members, their families , neighbors and local persons (for birthdays, weddings, other family functions). In 2015 a new Committee took over and they decided that the Halls could be given out to "so called middlemen" at a near 50 pct discount, to what is charged from members, and these middlemen were allowed to commercially exploit the Halls. This has resulted in a huge loss to the Trust ( member charged 1200/- per hour- after 20 pct discount- against these middlemen being charged approx 750/- per hour). Non members, neighbors and local persons charged 1500/- per hour. These middlemen have in 2016/2017 used the Halls for close to 750 hours and paid the Trust Rs 6.75 lakhs only. Checking what they charged Third parties, advertised in newspapers, magazines, internet, book-my-show, etc show that on an average they have sold tickets (passes, entry coupons, etc) for 300/- per head and have had an average of 50/60 persons attending for a 4-5 hr function. Another way is to offer third parties a package deal of lump sum amount, against payment to the Trust on a per hour basis. Trust is just showing the reduced per hour rate in the books of accounts; but some members allege that much more is paid to the Managing Committee. Is it true that permission must be taken per the Public Trust Act every time the Trust permits a third party to gain from using the Trust premises under pain of heavy penalty of Rs 10,000 (Section 41C). Can some light be thrown on this by your esteemed members.
