Chapter: 2.3 Control of the Charity Comisioner of the Trust Act

Control of the Charity Commissioner

(a) The Charity Commissioner, the Deputy / Assistant Charity Commissioner have powers to enter on and inspect any property of a public trust and also to call for any books of accounts or documents in the possession of the trustees and to get explanation from the trustees.

All trustees are bound to provide all facilities to any such officer. It will then be assessed whether any trustee has caused breach of trust, misconduct or gross negligence. Any loss caused to the public trust, will be determined by the Charity Commissioner and the person causing such loss will be directed to pay the amount of loss.

(b) The Charity Commissioner is entitled to issue directions to the trustees or persons connected to the trust for proper administration of the trust property and income. The Charity Commissioner can also issue directions to ensure that income of the trust is properly appropriated towards the objects of the trust and that property of trust is not wasted or damaged.
(c) The Charity Commissioner has powers to suspend, remove or dismiss any trustee if the trustee

•    Makes persistent defaults in the submission of accounts.
•    Willfully disobeys any orders issued by the Charity Commissioner.
•    Continuously neglects his duty or commits any breach of trust.
•    Misappropriates any trust property.
•    Is convicted of any offense involving moral turpitude.

The instances of above will be when trustees assert a hostile title, is involved in misappropriation of trust funds, is living an immoral life, or involving the trust into unnecessary and protracted litigations. However, mere errors of judgment, small neglects of duty or wrong use of discretion are not considered as relevant for taking action under the above provisions.
The Charity Commissioner can also appoint new trustees under certain circumstances.

Suits relating to public trusts:
When there is a breach of a public trust or trust property is in danger, the Charity Commissioner or persons having interest in the trust can file a suit in the District Court after obtaining the consent of the Charity Commissioner for an appropriate action including that of removal of trustees. An order of injunction can also be obtained.

Contribution by public trusts to Public Trust Administration Fund:
All public trusts have to pay annually a contribution to the Public Trust Administration Fund. This contribution is at a rate not exceeding five percent of the gross annual income or receipts of the Trust. Some deductions are allowed while computing the income or receipts.

Offenses and penalties:
Trustees committing certain acts like not submitting application for registering a public trust, not sending a memoranda of immovable properties belonging to public trusts, failure to submit change reports, failure to keep regular accounts, failure to invest money as specified or failure to comply with any directions given by the Charity Commissioner are liable to get punishment of fine ranging from Rs. 100 to Rs. 2000.