• Trust Property

I had become a trustee of a charitable trust in the year, 2013 and the same was registered with the authorities. There are a total of nine trustees in the said trust that was established with an aim to promote education in the region. The first step towards achieving the goal was to establish a private Dental College and accordingly, the requisite land was purchased and necessary paperwork was carried out in connection with the establishment of the Dental College cum Hospital. To achieve the preliminary requirements, four of us (trustees) contributed considerable amounts to the trust. However, the Secretary in connivance with the treasurer has deliberately avoided producing any accounts or balance sheets of the Trust ever since its inception. No audit of the accounts either internal or external has been carried out till date. We have repeatedly requested both the settlor as well as the secretary to call for a meeting over the last two years, but none of them have responded and have avoided doing such a thing. In such a context, 
	i.	What are the options available to the four of us? 
	Ii	Is there any way to make the secretary hand over the project to us?
	iii.	Is there any way by which we can claim back the money that we contributed to the 			trust in case we do not want to remain trustees any more?
Asked 7 years ago in Property Law
Religion: Hindu

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5 Answers

1. Since the trust is formed for public purposes the conduct of office bearers are subject of strict scrutiny of court.

2. So if there is misuse of office or defalcation of funds you can file civil suit for removal of errirng office bearers.

3. Do note that in such events even a third party can bring suit.

4. So you being trustee of the property has every right to bring such proceedings.

5. However chances of return of money is very bleak.

Devajyoti Barman
Advocate, Kolkata
22920 Answers
498 Consultations

5.0 on 5.0

The account of trust need to be audited and annual return of income filed

2) you can complain to charity commissioner if accounts are not furnished by the secretary

3) charity commissioner may direct special audit of accounts of trust

Ajay Sethi
Advocate, Mumbai
95205 Answers
7607 Consultations

5.0 on 5.0

Yes ,through the court of law.

Devajyoti Barman
Advocate, Kolkata
22920 Answers
498 Consultations

5.0 on 5.0

A meeting of the all the trustees to be held and decide about the next course of action agaisnt the secretary or other people who are indulging in such undesirable activities or refer to the bye law of the trust in this regard for an action to be initiated as per the provisions.

If the secretary is found to have misappropriated the funds or embezzled a police complaint for cheating and breach of trust and all other offences may be lodged and also a civil recovery suit to be filed to recovering money from him on the basis of evidences against him.

T Kalaiselvan
Advocate, Vellore
85404 Answers
2236 Consultations

5.0 on 5.0

Now that there are virtually two factions within the trust, is it possible for the four of us to make changes in the management committee of the trust?

The rivalry among the trustees or feuds among the trustees would not help to solve the issues amicably hence approaching court of law would provide you releif and solace to overcome the crisis.

T Kalaiselvan
Advocate, Vellore
85404 Answers
2236 Consultations

5.0 on 5.0

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