RCA's Public Trust Application Sparks Controversy: Legality Under Fire

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RCA's Public Trust Application Sparks Controversy: Legality Under Fire

Synopsis

The Rajasthan Cricket Association's application for public trust registration has ignited controversy amidst questions from the Opposition about its legality and timing. This move may have significant financial repercussions for the association.

Key Takeaways

RCA's application for public trust registration has sparked controversy.
The move aims to secure tax exemptions following an Income Tax notice.
Critics argue that an ad-hoc committee cannot make such significant decisions.
Potential financial implications could arise if tax liabilities are imposed.
The situation raises questions about governance in sports and political interference.

Jaipur, March 13 (NationPress) The Rajasthan Cricket Association (RCA) has ignited a new debate after submitting an application to be recognized as a public trust with the Devasthan Department of the state, raising concerns from the Opposition regarding the appropriateness and legality of this action.

As per the documents presented, Deendayal Kumawat, the Convenor of the RCA Ad-hoc Committee, has filed for the cricket organization to be classified as a public trust in accordance with the Rajasthan Public Trusts Act of 1959, designating himself as the principal trustee.

In a conversation with IANS, Kumawat explained that the primary goal of this application is to secure tax exemptions. This initiative comes after a notice from the Income Tax Department dated February 19, which questioned why the RCA had not registered under the state's public trust regulations, given its claim to be a charitable entity.

The notice highlighted that the RCA lacks oversight from a state government authority and does not have tax-exempt status due to the absence of an official notification. It recommended that the Association pursue registration under the Rajasthan Public Trusts Act, 1959, if it wishes to enjoy the benefits provided to charitable organizations under the Income Tax Act of 1961.

Kumawat referenced the Supreme Court's directives indicating that societies, trusts, and NGOs desiring income tax exemptions under Sections 12 and 80G are required to register with the appropriate authority, such as the Charity Commissioner.

He stated that given the existing regulatory framework in Rajasthan through the Devasthan Department, the RCA's registration is essential for claiming tax advantages.

However, this development has prompted a political and legal discussion, with critics asserting that the RCA—a democratic, member-driven sports organization—cannot be transformed into a trust without the consent of its General Body and other required authorities.

Reports indicate potential financial implications, as the Board of Control for Cricket in India (BCCI) reportedly owes the RCA approximately Rs 65 crore. Experts warn that if the Association is not recognized as a charitable organization, it could incur nearly Rs 20 crore in taxes once the funds are disbursed.

Leader of the Opposition Tikaram Jully brought this issue to light in the Rajasthan Assembly, questioning how a temporary ad-hoc committee could make decisions that might fundamentally change the Association's structure.

"The governance of the Rajasthan Cricket Association is the prerogative of its General Body, which holds the exclusive power to decide on its structure, assets, or existence. Deendayal Kumawat's application to register the RCA as a public trust under the Rajasthan Public Trusts Act, 1959, while claiming himself as the acting trustee and categorizing RCA assets as trust property is illegal and exceeds his authority, as a cooperative society cannot be converted into a trust without dissolution and formal approvals," he asserted.

Jully has demanded an investigation, an FIR, and the preservation of the current status of RCA's assets and administration.

In his conversation with IANS, Jully also questioned whether this situation indicates appropriate sports governance or political meddling and sought clarification from the state government regarding the matter.

Point of View

Highlighting the complexities of regulatory frameworks in the sports sector.
NationPress
4 Jul 2026

Frequently Asked Questions

What prompted the RCA to apply for public trust registration?
The RCA applied for public trust registration primarily to secure tax exemptions following a notice from the Income Tax Department questioning their charitable status.
Who filed the application for the RCA's registration?
Deendayal Kumawat, the Convenor of the RCA Ad-hoc Committee, filed the application.
What are the consequences if the RCA is not recognized as a charitable entity?
If the RCA is not recognized as a charitable entity, it may face substantial tax liabilities, potentially amounting to Rs 20 crore on disbursed funds.
What concerns have been raised by the Opposition regarding this application?
The Opposition has raised legal concerns about the authority of an ad-hoc committee to alter the structure of the RCA without approval from its General Body.
What does the Rajasthan Public Trusts Act, 1959 entail?
The Rajasthan Public Trusts Act, 1959 governs the registration and regulation of public trusts in the state, outlining the requirements for trusts seeking tax benefits.
Nation Press
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