Maharashtra Public Trusts Act, 1950 – Interplay of Sections 33 & 36(1)(a) – Permission for sale of immoveable property of Osho Trust in Pune & Order for special audit
On 20.7.2020, in view of the financial situation of the Trust, the resolution in the governing body was passed to alienate the property for adequate cash flow, maintain its properties, upkeep its various premises, staff and salary.
On 1.9.2020, tender notice was published in Sakal and Financial Express. Simultaneously, valuation report was obtained.
On 30.10.2020, meeting of three bidders was held to reconsider and enhance their offers. The offer of Rs.107 crores was found suitable and accepted by the Resolution dated 30.11.2020. On 8.12.2020, MOU was executed and the bidder had paid earnest money of Rs.50 crores.
By the said application No.2 of 2021, the petitioner Trust had sought permission for alienatio of immoveable property at Koregaon Park, Pune, for Rs.107 crores.
By the order dated 7.12.2023 of the Joint Charity Commissioner, Mumbai, the application of the petitioner filed under Section 36 of the Maharashtra Public Trusts Act, 1950 (MPT act) was rejected. Moreover, the petitioner was directed to refund earnest money of Rs.50 crores and also to conduct special audit of the accounts.
On 16.3.2022, an order was passed granting liberty to the persons having interest in the tRust to file appropriate applications under Section 73A of the MPT Act. In all 26 interveners were impleaded as objectors.
HELD the grounds for consideration were if the Trust has made genuine and compelling necessity to alienate its property and secondly, if sale price is reasonable, in the benefit, interest and protection of Trust and its beneficiaries. The Joint Charity Commissioner has powers to order special audit in the proceedings under Section 36. There is a finding recorded that the petitioner had sufficient resources to generate more cash flow on its own. However, the Trustees had diverted the funds to several private limited companies to show losses. Thus, when during the course of adjudication of Section 36 application, if substantial material was available sufficient to form an opinion of a need for special audit, there was nothing wrong for the Joint Charity Commissioner to order special audit. It the Joint Charity Commissioner was not to adopt such approach this would amount to abdicating his powers to pass appropriate orders in the interest of better of administration of the trust and its properties.
Judgment dated 8.4.2024 in W.P.No.63 of 2024 in Osho International Foundation Vs. Kishor Raval alias Swami Anandi and others
