IBC Code: Complete Overview and Drafting Workshop. Register Now!
LCI Learning

Share on Facebook

Share on Twitter

Share on LinkedIn

Share on Email

Share More

Raj kumar (Manager)     15 October 2010

Fraud by Trustee of Public trust

There is a public charitable trust with 4 trustees. One trustee who is President called a meeting which no trustee except himself attended. As per a clause in the Rules and regulations he dismissed all the three trustees and appointed his relatives as trustees. Now he is committing fraud by taking underhand money and alienating the property by giving it away on rent. All rents that he has received ,he fritters them away on himself. He is an advocate. How to stop this fraud. Will a case in court take tears during which time he will eat away the trust. What civil and criminal effective action can be taken against him.


 3 Replies

M. A. Khan (advocate)     15 October 2010

Mr. Raj your remedies will be depending upon under what Act the trust is registered.  If it is under Bombay Public Trust Act, and the trust is in Mah. than you should challange the change report, on the grounds that all the family members have been added as trustees in the trust, by filing appeal before charity commissioner.  So far as suit is concerned, you need to take permission of commissioner.  you can file criminal  complaint, pointing fraud from the account books.  No one can sale property of Trust, unless it is in the interest of trsut.  therefore, you can challange the alienation of trust property, if it is done for the interest of trustees.

Raj kumar (Manager)     16 October 2010

1. We are registered in Haryana.

2. Why should we accept that we have been terminated. Has the President the authority to terminate all the trustees but himself and appoint his friends. His game plan ,being an advocate, is to let the case drag in the court and during that time to allot open spaces to tenants, or legalize subletting and earn Lakhs of Rupees till the case drags on

3. My request is to help in saving this puiblic Dharamshala. He has taken all the rent sfrom the tenants of the dharamshala by taking 30% less and giving receipts for the full amount. The money so earned, he will show that all that has been consumed on the lawyers who have taken their fees. It is open dacoity. So, first I wish to institute cases against tenants for not paying the rents. Second to lodge an FIR. Will permission be required to lodge FIR. Is there no way to get a stay order and stop him from collecting huge sums. Can we give away the Dharamshala property to the govt,. I mean can the Deputy Commissioner take it from us and then he might be able to stop the fraud.

4. Time is running out. He is getting into agrements with tenants and will misappropriate large money unless some action can be taken. Then I feel he has no right to sack us.


Kindly do help to save a public charitable trust.


Regards Raj kumar   

Advocate Ravinder (Advocate/Attorney)     14 June 2017

You can file Civil suit against the above said person and take injunction to take custody of the property and rents derived thereof. You can stop all further transactions. 

Simultaneously, you can file criminal cases against him for committing fraud, cheating and criminal breadh of trust, mis using of funds. If local police is not responding meet Commissioner of Police/Superintendant of Police. For further clarifications contact me. 


Leave a reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Post a Suggestion for LCI Team
Post a Legal Query