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