Daijiworld Media Network - Nagpur

Nagpur, Dec 8: The Maharashtra government on Monday introduced a Bill to amend the Maharashtra Public Trusts Act, aiming to streamline trust administration, reduce litigation, and ensure regular oversight and accountability among Board members.

The Bill proposes the insertion of a new Section 30A to regulate the appointment of tenure and perpetual trustees when trust instruments lack specific provisions. It also seeks to amend the definition of “trustee” under Section 2(18), clearly distinguishing between trustees appointed for a fixed tenure and those appointed for life.

“The lack of clarity regarding the tenure of trustees in many trust instruments has led to frequent litigations before the Charity Commissioner and courts, affecting the functioning of trusts and the welfare of beneficiaries,” the Bill stated.

Under the new rules, the number of perpetual trustees in any public trust cannot exceed 25% of the total Board. Trustees without a specified term in the trust deed will be considered tenure trustees, typically serving up to five years.

The Bill also amends subsection (6) of Section 18, requiring trust registration applications to include proof of ownership or interest in immovable property. This measure aims to prevent fraudulent claims over trust assets.

Penalties for violations of certain provisions, such as unauthorized sale or lease of trust property and failure to reserve hospital beds for indigent patients, are proposed to be increased.

Additionally, the Bill allows public trusts, including major temples and charitable organisations, to invest up to 50% of their corpus in specified market-linked securities without seeking individual approval from the Charity Commissioner.

Overall, the amendments are designed to improve governance, ensure transparency, and protect the interests of beneficiaries and the public.