CHENNAI: Now foreign nationals or those convicted by a criminal court cannot become trustees of a public trust. The government has come out with Tamil Nadu Public Trusts Act 2020 on Wednesday to regulate public trusts, including its registration, disqualification of a trustee, maintenance of accounts by trusts and its audit and control over the administration of trusts.
The legislation was passed after the High Court in its order on July 5, 2018 asked the government to consider the representation of advocate M Gandhi to frame scheme or guidelines and form supervisory panel for proper functioning of Public Trusts.
Similarly, another representation from Dr P R Subas Chandran in the Supreme Court where he sought a direction to the Centre to debar convicted persons from holding office of trustee of a public trust, was also taken into account. Subas was asked by the court to submit representation before the state where there is no law that the trustee of a public trust shall not be a convicted person. Following which the representation was made before the Chief Secretary, according to the Bill that was passed.
Currently, public trusts of a charitable nature other than Hindu Religious Endowments and Auqafs are governed by Charitable and Religious Trusts Act 1920, which provides only for certain limited purposes. As per the Act, every public trust should be registered. Those already in existence will have to apply for registration within three months from the date when the Act was passed.
Any trust which is not registered in the next four months will cease to carry out its business unless it has applied for registration before the registrar in the district where such application is disposed. The application, with a fee of Rs 5,000, should include origin, nature and object of the public trust, place where the principal office or place of business is located and names and addresses of working trustees.