Property of Trust re - run a Public charitable trust
1 year ago
Respected lawyers, We run a Public charitable trust registered under Mumbai Public Trust Act, 1950 and having two properties in the name of trust. Both the properties were received via registered will and as per wish of founder trusty after his sad demise. Now one of the member of trusty board insisting us to transfer/donate one of the property to close relative of founder trusty because founder's relative being poor and blood related. My question is that ---- (1) Being trusty members of Public charitable trust, are we eligible to pass such resolution to transfer/donate such propert in the name of close relative of founder trusty? (2) If we pass such resolution is it necessary to take approval of charity commissioner? (3) Will charity commissioner approve such resolution or reject it? (4) Is there any other source to make this transaction legal? Kindly guide us. Thanking you.
You cannot just transfer such properties of public charitable trust to someone. The trustees can sell the property (if it is provided in the trust deed) but the permission of the Charity Commissioner is necessary without which the sale cannot be completed and the sale deed would not be registered. It depends upon the facts and circumstances and your intention behind the act, upon this, the commissioner will decide.
You will definitely have to have to take permission and pass a resolution from all other trustees before acting upon it.