Karnataka Public Trusts Bill, 2011

 
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[Bill No. 05 of 2011]

A Bill to provide for regulation of the administration of Public and Charitable Trusts in the State of Kamataka.-

Whereas, it is expedient to provide for regulation of the administration of Public and Charitable Trusts in the State of Karnataka for the purposes hereinafter appearing.

Be, it enacted by the Karnataka State Legislature in the sixty-second year of the Republic of India as follows.-

CHAPTER 1 PRELIMINARY

1. Short title, extent, commencement and application.-(l) This Act may be called the Karnataka Public Trusts Act, 2011.

(2) It shall extend to the whole of the State of Karnataka.

(3) The State Government may, by notification in the official Gazette, specify the date on which the provisions of this Act shall come into force.

(4) This Act shall not apply to.-

(i) Hindu Religious Institutions and Hindu Charitable Endowments governed by the Karnataka Hindu Religious Institutions and Charitable Endowments Act, 1997 (Karnataka Act No.33 of 2001); and

(ii) wakfs.

2. Definitions.-(1) In this Act, unless the context otherwise requires,-

(a) "Deputy Public trust Commissioner" means the Deputy Public trust Commissioner appointed under Section 4;

(b) "Inspector" means an Inspector appointed under Section 5;

(c) "Instrument of trust" means the instrument by which the trust is created by the author of the trust or any Memorandum of Association and Rules and Regulations of a society registered under the Societies Registration Act, 1960 (Karnataka Act 17 of 1960) and includes any scheme framed by a competent authority;

(d) "Manager" means any person (other than a trustee) who for the time being either alone or in association with some other person or persons administers the trust property of any public trust and includes in the case of the Society registered under any law in force, its governing body, whether or not the property of the society is vested in a trustee.

(e) "Person having interest" includes,-

(i) in the case of a society registered under the Societies Registration Act, 1960 (Karnataka Act 17 of 1960), any member of such society; and

(ii) in the case of any other Public Trust, any trustee or beneficiary;

(iii) in the case of an educational institution, member of such institution.

(f) "public securities" means.-

(i) securities of the Central Government or any State Government;

(ii) stocks, debentures or shares in Railway or other companies, the interest or dividend on which has been guaranteed by the Central or any State Government;

(iii) debentures or other securities for money issued by or on behalf of any local authority in exercise of the powers conferred by an Act of the Central or State Legislature;

(iv) a security expressly authorized by an order made by the State Government;

(g) "public trust" means an express or constructive trust for either a public or charitable purpose or both and includes agiary or other place of public, a dharmada or any other charitable trust and a society formed for charitable purpose and registered under any law in force;

(h) "Public trust Commission" means the Karnataka Public trust Commission constituted under Section 3;

(i) "Trustee" means a person in whom either alone or in association with other persons, the trust property is vested and includes a Manager;

(2) Words and expressions used but not defined in this Act and defined in the Indian Trusts Act, 1882, shall have the meanings assigned to them in the Indian Trusts Act, 1882 (Central Act No.2 of 1882).

3. Constitution of Public trust Commission.-(1) The State Government may, by notification, in Official Gazette constitute a Commission called the "Karnataka State Public trust Commission" (hereinafter referred to as Public trust Commission consisting of one Judicial Member who shall be the Chairman and one Administrative member.

(2) An Officer not below the rank of Group A senior scale as may be appointed by the Government, shall be the Secretary of the Public trust Commission.

(3) The head quarters of the office of Public trust commission shall be at Bangalore.

(4) A person shall not be qualified for appointment to the Public trust Commission.-

(a) as a Judicial Member, unless he had held the post of a Judge of a High Court or is qualified to be appointed as a Judge of a High Court within the meaning of Article 217(2) of the Constitution of India;

(b) as an Administrative Member, unless he is an officer of Senior IAS cadre and had held for at least two years the post of Secretary to the Government of Karnataka or any other post under the Central or State Government and carrying,the scale of pay which is not less that that of a Secretary to the Government of Karnataka'.

Provided that where a sewing government officer is appointed as administrative member, he shall be deemed to have retired from the service to which be belonged on the date on which he assume the charge as the administrative member. but his subsequent service as administrative member shall, at his option, be reckoned as a post retirement re-employment counting for pension and other retirement benefits in the service to which he belonged.

(5) The Public trust Commission shall subject to the general or special orders of the State Government exercise such powers and shall perform such duties and functions as are conferred by or under the provisions of this Act.

(6) The member of the Public trust Commission shall hold office for a term of five years from the date on which he assumes his office:

Provided that no Member shall hold office after he has attained the age of sixty five years.

(7) The member of Public trust Commission may by notice in writing under his hand addressed to the Government, may resign his office:

Provided that the member shall, unless he is permitted by the Government to relinquish his office sooner, continue to hold office until the expiry of three months from the date of receipt of such notice or until a person duly appointed as his successor enters upon his office or until the expiry of his term of office, whichever is earlier.

(8) A member shall not be removed from his office except by an order made by the Government on the ground of misbehaviour or incapacity after an inquiry in which such member had been informed of the charges against him and given a reasonable opportunity of being heard in respect of those charges.

(9) The salaries and allowances payable to, and the other terms and conditions of service (including pension, gratuity and other retirement benefits) of administrative member shall be such as may be prescribed by the Government.

Provided that neither the salary and allowances nor the other terms and conditions of service of a member shall be varied to his disadvantage after his appointment.

4. Deputy Public trust Commissioners.-(1) The State Government may appoint retired District Judge or who is eligible to be appointed as district Judge as Deputy Public trust Commissioner in each region or for such class of public trusts as may be necessary.

(2) The Deputy Public trust Commissioner shall exercise such powers and perform such duties and functions as may be pJ10vided by or under the provisions of this Act.

5. Officers and staff of the Public trust Commission.-For the purpose of carrying out the provisions of this Act, the State Government may appoint Inspectors and other subordinate officers and assign such powers, duties and functions, as may be prescribed. The method of recruitment and conditions of service of such officers shall be such as may be prescribed.

6. Public trust Commission and other officers to be servants of State Government.- The Chairman and the members of the Public trust Commission, the Deputy Public trust Commissioners, the Secretary, the Inspectors and other subordinate officers and servants appointed under this Act shall be the servants of the State Government and shall draw their pay and allowances from the Consolidated fund of the State.

7. Pay and allowances of Chairman and members of the Public trust Commission etc., to be reimbursed to Government out of the Public Trusts Administration Fund.- There shall be paid every year out of the Public Trusts Administration Fund to the State Government such cost as the State Government may determine on account of the pay, leave and other allowances of the Chairman and members of Public trust Commission, the Deputy Public trust Commissioners, the Secretary, the Inspectors and other subordinate officers and servants appointed under this Act.

8. Delegation of powers.-(1) The State Government may delegate any of its powers or functions under this Act other than the power to make rules to the Public trust Commission or any other officer subject to such conditions as it thinks fit.

(2) The State Government may also direct that any powers exercisable and duties or functions to be performed by any particular officer appointed under this Act may be performed by any other officer subject to such conditions as it thinks fit.

CHAPTER III

CHARITABLE PURPOSES AND VALIDITY OF CERTAIN PUBLIC TRUSTS

9. Charitable purposes.-(1) For the purposes of this Act, a charitable purpose includes.-

(a) relief of poverty or distress;

(b) education;

(c) Medical relief;

(d) Provision for facilities for recreation or other leisure time occupation (including assistance for such provision), if the facilities are provided in the interest of social welfare and public benefit; and

(e) the advancement of any other object of general public utility, but does not include a purpose which relates exclusively to religious teaching or worship.

Explanation.-For the purpose of this section, the facilities are provided in the interest of social welfare and public benefit means.-

(a) the facilities which are provided with the object of improving the conditions of lif~ior the persons for whom the facilities are primarily intended; and

(b) that.-

(i) those persons have need of such facilities as aforesaid by reason of their age, infirmity...

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