Nagpur, Dec 8 (NationPress) On Monday, the state government presented a Bill aimed at amending the Maharashtra Public Trusts Act. The primary objectives are to standardise trust administration, minimize litigation, and guarantee regular oversight and accountability among Board members of trusts.

The Bill proposes inserting a new section, 30A, which addresses the appointment of tenure trustees and perpetual trustees in cases where the trust instrument lacks specific provisions.

Additionally, the current definition of “trustee” in Section 2(18) will be updated to categorize trustees based on their term: tenure trustees and perpetual trustees.

The Maharashtra Public Trusts Act was established to manage and regulate public, religious, and charitable trusts throughout the state.

“It has been observed that many trust instruments lack clarity regarding the appointment of perpetual or permanent trustees and their respective tenures. This ambiguity has resulted in numerous litigations before both the Charity Commissioner and the courts, adversely impacting trust operations, beneficiary welfare, and the public at large,” the Bill states.

The proposed legislation stipulates that the number of perpetual trustees (those serving for life) in any public trust cannot exceed 25% of the total Board of Trustees.

If a trust deed does not define a specific term for a trustee's appointment, they will now automatically be classified as tenure trustees, typically serving a term of up to five years.

The Bill also suggests amending subsection (6) of Section 18 of the Act to require that any application for trust registration must include documentation proving ownership or interest in the trust's immovable property. This measure is designed to prevent fraudulent claims over trust properties during registration.

Furthermore, the Bill proposes to enhance penalties for violations of specific provisions of the Act, including unauthorized sales or leases of immovable property and failures to reserve hospital beds for underprivileged patients.

It now mandates that proof of ownership or interest in any immovable property associated with a public trust be submitted during the registration process.

According to the Bill, public trusts, which include significant temples and charitable organizations, will now be authorized to invest up to 50% of their total corpus in designated market-linked securities without needing individual approvals from the Charity Commissioner.