A Public Charitable Trust is a legal entity that is created for the benefit of the general public or a section of the public. A Public Charitable Trust can own and manage property for its charitable objects and purposes. A Public Charitable Trust can also transfer its property to another Public Charitable Trust by way of gift, sale, exchange, lease, or any other mode of transfer, subject to certain conditions and restrictions.
Some of the conditions and restrictions for transferring an asset by a Public Charitable Trust to another Public Charitable Trust are as follows :
- The transfer must be in accordance with the provisions of the trust deed and the objects and purposes of the trust. The transfer must not be contrary to the intention of the settlor or the donor of the property.
- The transfer must be in the interest of the trust and its beneficiaries. The transfer must not result in any loss or detriment to the trust or its beneficiaries.
- The transfer must be authorized by the trustees or the managing committee of the trust. The transfer must be approved by a resolution passed by a majority of the trustees or the managing committee members present and voting at a meeting duly convened for that purpose.
- The transfer must be registered with the appropriate authority under the relevant law. The transfer must also comply with the applicable stamp duty and registration charges.
- The transfer must be reported to the Income Tax Department and other concerned authorities. The transfer must also satisfy the conditions for exemption from income tax and other taxes.
In your case, since your grandfather’s trust transferred an asset to your father-in-law’s trust by way of gift deed, you have to check whether these conditions and restrictions were followed or not. If they were not followed, then you may have a chance to challenge the validity and legality of the transfer in court. You may also have to prove that the transfer was made without your consent or knowledge, and that it was done with fraud, coercion, undue influence, misrepresentation, mistake, or any other defect.
You should also check whether your grandfather’s trust deed had any clause regarding your rights as an adopted child or as a beneficiary of the trust. You should also check whether your father-in-law’s trust deed had any clause regarding your rights as a relative or as a beneficiary of the trust. You should also check whether you have any other legal claim over the property based on inheritance, succession, partition, etc.
You should take some steps to protect your rights and interests in the property. You can do the following:
- File a suit for declaration and cancellation of the gift deed in the civil court having jurisdiction over the property. You should also seek an injunction to restrain your father-in-law’s trust from alienating or encumbering the property until the suit is decided. You should also seek damages for the loss and injury caused by their fraud and misrepresentation.
- File a complaint with the police against your father-in-law and his trust for cheating, forgery, criminal breach of trust, and criminal intimidation. You should also mention that they have taken possession of the original deed of the property and refused to return it.
- File a complaint with the Charity Commissioner and other concerned authorities against your father-in-law and his trust for violating the rules and regulations governing Public Charitable Trusts. You should also mention that they have failed to report and pay taxes on the transfer of property.