CHENNAI: Justice K P Sivasubramaniyan, a retired judge of the Madras High Court and noted advocate S Doraisamy, both former students of the Pachaiyappa’s College, have moved the High Court, questioning the alleged commercial activities of the trustees, who are administering the properties of the Trust. They prayed to the court to suggest suitable amendments to the scheme framed in 2008 by the High Court for the management of the Trust.
Justice K Kalyanasundaram, before whom the applications came up for hearing, ordered notice last week to the Trust Board led by its interim administrator Justice P Shanmugam, a retired judge of the High Court.
The judge posted further hearing on the applications after four weeks. The applications sought to constitute an empowered authority consisting of three eminent persons, whose decisions should be binding on the management of the Trust Board.
The Trust was managed by an elected Board of Trustees and presently under the management of the interim administrator Justice Shanmugam appointed by the High Court. The main objective and purpose of the Trust was to administer the charities and running the educational institutions. However, it was noticed in the recent past that the Board had deviated from the main objective and was involved in commercial activities contrary to the purpose of the formation of the Trust, petitioners alleged.
Kalyana mandapams (wedding halls) were constructed on the campus of C Kandaswamy Naidu and Pachaiyappa’s Colleges by utilising the funds of the Trust and the charities and fixed deposits. They were leased out for 20 years for disproportionately low rents. Several other buildings were permitted to be demolished and no objection certificates were issued for putting up new constructions. All these activities amounted to alienation of the properties without the High Court’s permission, they added.
The internal auditors of the Trust had released a report for 2017-18, observing that the Trust Board was in financial difficulties and lacked financial discipline. The interim administrator’s reports also found various irregularities and illegalities and suggested measures to safeguard the Trust, charities and institutions.
“In the absence of punitive provisions for the failure to provide income and expenditure and violations of the budgetary provisions and lack of proper auditing, the management of Pachaiyappa’s Trust appears to have manipulated the income of the Trust by putting up commercial buildings”, they added and suggested eight modifications/amendments to the existing scheme.