amit kadam 15 October 2022

Re : property of trust

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 viaregistered will and as per wish of founder trusty after his sad demise. Now one of the member of the 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 trust, are we eligible to pass such resolution to transfer/donate such property 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 of reject it ? (4) Is there any other source to make this transaction legal? KIndly guide us. Thank you.

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3 Replies

kavksatyanarayana (subregistrar/supdt.(retired)) 15 October 2022

Yes. After passing a resolution with the board of Trustees, you can gift some property to a person. The resolution copy and copy of the gift deed shall be submitted to the Commissioner of Income Tax. Consult a local CA.

Dr J C Vashista (Advocate) 16 October 2022

The title of the bequeathed property is yet to be transferred in the name of Trust since the Will executed by the deceased Testator is yet to be probated which is compulsory in Mumbai.

The Trust is stated to have been created for public charity and not for personal benefit, isn't it ? If so, it cannot be transferred to the trustee member.

If so, answer to all the 4 questions is negative,

However, it would be appropriate to contact and consult a local prudent lawyer for better appreciation of facts / documents, professional advise and necessary proceedings.