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PUBLIC, CHARITABLE AND RELIGIOUS TRUSTS

• As regards the public trusts, there is no Central Act applicable in all theStates. But various states such as Bihar, Madras, Madhaya Pradesh Orissa,etc, have enacted their own acts prescribing conditions and procedure forthe administration of public trusts. These Acts are more or less similar innature though there may be certain variations.

• For instance, the Bombay Public Trusts Act, 1950 provides machinery ofcharity commissioners to regulate the administration of public religiousand charitable trusts. It makes registration of all the public religiousand charitable trusts including the religious trusts created under HinduMuslim and Christian personal laws mandatory and prescribes certain normsfor the maintenance and audit of budget, and accounts of such trusts andfurther empowers the charity commissioners to inspect and supervise theproperty belonging to a public trust and as well the proceedings of thetrustees and books of accounts of such a trust.

• That apart, the act also creates certain restrictions on the investment ofpublic trust money and as well alienation of immovable property of such atrust.

PUBLIC SUPERVISION AND REGULATION

The working of the public trust and its trustees can be regulated andclosely supervised by the state and/or the beneficiaries of such a trust.In the case of any alleged breach of a public trust or where the directionof the court is deemed necessary for the administration of such trust,either the Advocate General or two or more persons having an interest inthe trust and having obtained the leave of the court can institute a suitto seek:

1. removal of a trustee

2. appointment of a new trustee

3. for vesting any property in a trustee

4. for directing a trustee who has been removed or a person who has ceased to be a trustee to deliver possession of any trust property in his possession to the person entitled to the possession of such property

5. For directing accounts enquiries

6. for seeking of declaring what proportion of the trust property or of theinterest therein shall be allocated me any particular object of the trust.

• In such a suit, the court may alter the original purpose of the trust andallow the property or income of such trust or any portion thereof to beapplied to different purpose or in a different manner for a similarpurpose, as nearly as possible according to the intentions of the author.

• Such an alternation can be sought where either the original purpose of thetrust is fulfilled or can not be carried out or where the original purposeof the trust provides a use for only part of the trust property or wherethe property of the trust can be used more effectively for another similarpurpose.

• The Court can also make alternation if the original purpose, inwhole in part, has been adequately provided for by other means or hasceased to be charitable or has become useless or harmful to community orhas ceased to provide a suitable and effective method of using the trustproperty as per the spirit of the trust.