“Confusion over...”

Recently two public spirited gentlemen, Manharbhai and Girishbhai Shah, trustees of the Bombay based Sheth Vadilal Sarabhai Derasarji Trust, managed to obtain valuable facts and figures from the office of the Charity Commissioner under the Right To Information Act ("Confusion over contribution,” Parsi­ana, June 7, 2007).

According to the data provided by the office of the Charity Commissioner (Maharashtra state) contributions collected over the years from various public charitable and religious trusts for the Public Trusts Administration Fund aggregating Rs 155,47,83,162 (as on March 2006) have been invested in fixed deposits of various banks and the return on this investment is Rs 8,73,92,316. The Shahs calculated that based on the information received, between the financial years 1996-97 and 2005-06 the office of the Charity Commissioner has collected ‘excess contribution’ (levy of contribution beyond the expenditure incurred) amounting to Rs 165,15,61,770. Interest income on the excess contribution alone amounts to Rs 69,30,20,912, while the annual office expenditure amounts to Rs 9,29,44,893. The Shahs are of the view that "the interest and other income alone are sufficient to meet expenses of the Charity Commissioner’s office. Any shortfall can easily be made up from the surplus funds.”

Despite media coverage as also appeals sent to the Charity Commissioner and the State Ministry for Law and Judiciary, Maharashtra state, the government has not passed any order to stop collecting the ‘contribution’ let alone refund the previous collections based on the Supreme Court’s judgment passed more than three decades ago. Until such an order is passed, charitable and religious trusts will have to continue paying the contribution.

However, the Jain Temple Trusts, Public Concern for Governance Trust and Centre for Advancement of Philanthropy have now decided to file a writ petition in the Bombay High Court.

The Shahs have taken the lead in this matter. We plan to mobilize as many trusts as possible as petitioners in order to make a strong case as well as to reduce legal expenses.

Public charitable trusts and societies registered under the Act of 1860 in Maharashtra state will be required to formally give their consent for legal action in the matter and authorize the Shahs to include their trust’s name as applicant for the proposed writ petition. Participating trusts will also be required to confirm that they will share all expenses that are incurred in this matter. For more details please contact Manhar­bhai Shah (tel: 20611893) or Girishbhai Shah (mob: 9324318972) e-mail: manhar@mtnl.net.in

NOSHIR H. DADRAWALA

Centre for Advancement of Philanthropy