Chapter: 2.4 Power of Charity Commissioner to Issue Directions to Hospital Trusts of the Trust Act

Power of Charity Commissioner to issue directions to Hospital Trusts
Several hospitals are started and run by charitable trusts registered under the Bombay Public Trust Act. These trusts avail of facilities and assistance in some conditions on such big trust hospitals to provide medical services to poor or not so well off persons. The Bombay Public Trust act was therefore suitably I amended in 1985.

As per the provisions:
The Charity Commissioner or any other competent authority has power to direct public trusts maintaining hospitals, nursing homes, maternity hospitals, dispensaries or any other center for medical relief, to provide medical facilities to poorer classes either free of charge or at confessional rates.

These directions could be:
(a) To reserve and earmark ten percent of the total number of operational beds and ten percent of the total capacity of patients treated for medical examination and treatment for indigent persons (persons whose total annual income does not exceed three thousand and six hundred rupees or such other limit as the State Government may specify from time to time) free of charge.
(b) To reserve and earmark ten percent of the total number of operational beds and ten percent of the total capacity of patients treated for medical examination and treatment for weaker sections of people (person whose annual income does not exceed rupees fifteen thousand or limit specified by Government from time to time) for whom rates will be charged as determined by the State Government.

The officers authorized by State Government, or representatives of the Charity Commissioner will be entitled to verify the implementation of the above requirements by Hospital Trusts by visiting and inspecting and also by called information and returns periodically.

Any public trust, which is exclusively for medical relief and maintains a hospital, dispensary or any other center for medical relief and has

•    Received any grant of land or building or any nominal or confessional rate from the State / Central Government or any local authority.

Or

•    Has been given any exemption or permission by the State Government to continue to hold any vacant land as per Sec. 20 or 21 of the Urban Land Ceiling Act.
•    Has been given any concession / exemption or relaxation of a substantial nature from Development Control Rules for trust purposes.
•    Has received or is receiving any loan or guarantee or any non-recurring grant-in-aid or financial assistance from the state / Central Government or any other local authority will be liable to follow the requirements of the provisions mentioned regarding reservation of specified numbers of patients for free treatment or at concessional rates.
•    Trustees' right to receive re-imbursements of expenses

As per Indian Trust Act, trustees are not entitled to receive any remuneration for the services rendered by them as they are supposed to act gratuitously. However, if there is a provision in the trust deed permitting trustees to receive remuneration, they can receive so. It is therefore advisable to insert an - appropriate clause in the trust deed regarding remuneration of trustees. Similarly, the provisions regarding re-imbursements of expenses incurred by the trustees should also to be specifically included so as to avoid complications later.