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ganesh pattabhiraman   24 July 2016

Merger of trusts and vesting of properties

Dear Folks,

Seeking clarification on Merger of Trusts assuming this is the appropriate forum. Here it goes.

We have Trust A and Trust B, both are non-profit irrevocable registered Trusts. Trust A has merged with Trust B and with approval from IT department. As per unregistered memorandum of understanding between the Trusts, all the assets and liabilities of Trust A have been transferred to Trust B. Now the questions are as follows.

1. Is Trust A defunct or dissolved? 

2. If not, can it, with approval of Trust B, enter into leasing its property to a third party?

3. In case Trust A is dissolved, since the land sale deeds are still in the name of Trust A, do we need to get it formally transferred to name of Trust B? In which case, will it necessitate re-registration with Registrar, stamp duty on current market price of property etc.? 

Thanks in anticipation for your reply.

ganesh

 

 



Learning

 2 Replies

Rama chary Rachakonda (Secunderabad/Highcourt practice watsapp no.9989324294 )     24 July 2016

it was the duty of the Charity Commissioner or Deputy Charity Commissioner to formulate the grounds for proposed amalgamation of the two trust and indicate at least broadly the material in his possession on the basis of which the requisite opinion was formed so as to initiate the suo motu inquiry under Section 50-A(2) of the Act prima facie conclusion of the Charity 'Commissioner in this behalf must be backed by facts and objective analysis of the material sought to be relied upon howsoever brief. Such factual formulation must be set out at least broadly in the show cause notice issued to the trustees of the two trust

adv.bharat @ PUNE (Lawyer)     24 July 2016

Which is your state. Agreed with expert opinion.


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