Trusts, beware!

It is reported in the print media that the government of Maharashtra is contemplating amending the Bombay Public Trusts Act, 1950.

The ostensible reason given for amendment is that the government has received complaints of mismanagement and irregularities by the trusts.

The real reason is the bankrupt state with a present deficit of one lakh crore of rupees has cast its eyes on some 3.5 lakh trusts spread across the state. Many of these trusts are rich as the trusts’ humongous treasure chests run into thousands of crores of rupees.

If the amendments come into force:

The government will appoint an executive officer to all trusts having an annual income of five lakh rupees each. It will be the virtual chief executive officer of the trust.

Every trust will have to draw up a constitution, apart from its own instrument of trust. It will be based on the Public Trusts Act and override the instrument of the Trust.

Every trust must be thrown open to membership. A majority of the trustees will have to be elected, instead of appointed. Thus, charitable trusts will become like clubs and political parties.

If the amendments come into force, many of our community’s charitable trusts would come under the scanner of the government.

The Bombay Parsi Punchayet (BPP) has under its wing hundreds of charitable trusts. The trustees should guide the BPP and other Parsi trusts when the matter comes to pass.

BHIKHAJI M. ADENWALLA

The subject was discussed at the Federation of Parsi Zoroastrian Anjumans of India meeting in June last year — Editors