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Maharashtra Assembly passes amendment to Public Trusts Act

Maharashtra Assembly on Tuesday passed a bill to amend the Maharashtra Public Trusts Act which provides for de-registration of long-defunct trusts among other things.



Mumbai: Maharashtra Assembly on Tuesday passed a bill to amend the Maharashtra Public Trusts Act which provides for de-registration of long-defunct trusts among other things.

 After the Legislative Council passes it, the law would pave way for initiating action against about 3.5 lakh such charitable trusts (which is around 50 per cent of the total number of trust registered under the Trusts Act).

Action will also be taken in respect of the trusts whose trustees have defaulted on reporting the change of details or audited accounts or making other compliances in last five years.

The trusts liable to be de-registered include those whose "purpose of formation is either fulfilled or has become impossible to fulfil".

The bill provides for taking over of management of de-registered trusts and disposal of their properties by sale and depositing of proceeds in government treasury.

It also makes it compulsory for the trusts to take previous permission of the charity commissioner before borrowing money.

Minister of State for Law and Judiciary Ranjit Patil said the government was considering coming out with a road-map and organising workshops to ensure that the number of pending cases at the charity commissioner's level is brought to zero. 

From Zee News

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