law commission report no. 191- regulation of funds collected for calamity relief, 2004

8/18/2019 Law Commission Report No. 191- Regulation of Funds Collected for Calamity Relief, 2004

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LAW COMMISSION OF INDIA

191ST REPORT

ON

REGULATION OF FUNDS COLLECTED FOR

CALAMITY RELIEF

DECEMBER, 2004

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Justice Law Commission of IndiaM. JAGANNADHA RAO Shastri BhawanChairman New Dehi!""# ##"

$e.% &''())*+ ,a-% #""/ &'#*'(0)1&''(((*#

2!mai% ch.c3s4.nic.in Residence "1JAN5A$H1 New Dehi $e.% &'#"6)0+

D.O.No.0'/(#/7#&!LCLS/ Decem4er "+1 #)

Dear Shri Bharadwa8 8i1

I ha9e :reat ;easure in ;resentin: the "6"st Re;ort of the Law Commission of

India on Regula!"g Fu"#$ %&' Cala(!) Rel!e% . $his is aso the si-th re;ort of the ;resent Se9enteenth Law Commission which came to 4e constituted with effect fromSe;tem4er "1 #'.

$he :enesis of the ;resent re;ort was an order dated Au:ust '#1 #" ;assed 4<the Na:;ur Bench of the Bom4a< Hi:h Court in Anand Narain Poharkar v. Lokmat Newspaper Charitable Trust. $his was a 5IL which hi:hi:hted the ;ro4em of contri4utions coected from the ;u4ic 4< a charita4e trust foated 4< a news;a;er for reief to 9ictims of the =ar:i confict. $he 5IL ae:ed that the funds coected had 4een

either misused or misa;;ro;riated. $he Hi:h Court o4ser9ed that a e:isation wasnecessar< to re:uate the contri4utions coected and monitor their utii>ation so that?the funds so coected rea< reach the 4eneficiaries.@ $he Ministr< of Defence whichwas a ;art< to the ;roceedin:s then referred the matter to the De;artment of Le:aAffairs DLA/ which in its turn referred it to the Law Commission.

A Consutation 5a;er was initia< ;re;ared 4< the Law Commission and wascircuated wide


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$he re;ort is di9ided into si- cha;ters. After discussin: the conce;t of e:atrusteeshi;1 the re;ort e-;ains the need to enact a se;arate aw1 detais the e-tent1commencement and sco;e of the ;ro;osed aw and concudes 4< hi:hi:htin: the saientfeatures of the ;ro;osed enactment. $he re;ort recommends the esta4ishment of a

Contri4ution Re:uator< Authorit< CRA/ com;risin: a Chair;erson and other ;art!timeMem4ers. $he Chair;erson woud 4e e-!officio a Secretar< to the Go9ernment of India.$his structure1 it is fet1 woud su4ser9e the need to ha9e a mechanism to dea withsituations as and when the< occur rather than ha9e a ;ermanent 4od< in ;acee-cusi9e< for the ;ur;ose. $he main tas of the CRA woud 4e to o9ersee thecoection and distri4ution of contri4utions and donations for caamit< reief and toensure that ;ro;er accounts are maintained 4< the ;ersons and a:encies coectin: fundsfor caamit< reief. $he CRA itsef wi ensure that its accounts are audited 4< theCom;troer and Auditor Genera of India. $he ;ro;osed e:isation maes mandator<the ;re!reuisite of re:istration of an< a:enc< or ;erson who desires to coectcontri4utions for caamit< reief. Since there ma< 4e situations where emer:enc< reief measures ma< 4e reuired1 it is ;ro;osed to em;ower the Coector to :rant ;ro9isionare:istration. S;ecific ;ro9isions ha9e aso 4een recommended for sus;ension or canceation of re:istration of those who either do not maintain ;ro;er accounts1misa;;ro;riate funds. It is aso ;ro;osed that where the funds remain unutii>ed 4<such ;ersons or a:encies1 such funds wi 4e transferred to the CRA or to the Coector for utii>ation for caamit< reief and other simiar ;ur;oses. hie it is aso ;ro;osed toem;ower the Coector and the CRA to e9< strin:ent ;enaties on the defautin:a:encies1 the crimina ;roceedin:s woud 4e 4efore the re:uar crimina courts. Ci9idis;utes concernin: the donations and contri4utions wi :o 4efore ci9i courtsdesi:nated for that ;ur;ose and the said courts wi 4e :o9erned 4< ;rinci;es of natura 8ustice and not 4< the Code of Ci9i 5rocedure or the Indian 29idence Act.

It is ho;ed that the recommendations contained in the re;ort wi he; addressin:the recurrent ;ro4em of misuse 4< ;ri9ate actors coectin: contri4utions from the ;u4ic for caamit< reief.

ith re:ards

ours sincere


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INDE*

C+ae' N&- T!le Page$

1- I"'u.!&" 0/ & 21

2- C&lle.!&" &% .&"'!u!&" I$ !" T'u$ 22& /

/- Nee# & +a3e a $e.!al la 'ela!"g &

.&"'!u!&"$ (a#e !" +e .&"e5 &%

.ala(!!e$ /6 & 42

4- P'&&$e# e"a.(e" Leg!$la!3e P&e',

I$ E5e", C&((e".e(e" a"# S.&e 4/ & 60

- Sal!e" %eau'e$ &% +e '&&$e# e"a.(e" 61 & 11

6- Su((a') &% Re.&((e"#a!&"$ 116 & 1/7

)

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C8APTER 1

INTRODUCTION

1-1 T+e Re%e'e".e

$he Law Commission too u; the su48ect reatin: to Fmisuse of

donations coected durin: disasters and caamities on a reference

recei9ed from the De;artment of Le:a Affairs1 Ministr< of Law and

Justice1 Go9ernment of India. $he De;artment of Le:a Affairs1 with the

a;;ro9a of Hon4e Minister of Law and Justice1 on "(th March1 #&1

referred this su48ect to the Law Commission for recommendin: an

a;;ro;riate e:isation to re:uate and monitor the coection of funds from

;u4ic in the name of the wefare of 9ictims of natura caamit< or wefare

and reha4iitation of 4erea9ed famiies of the sodiers ied in a war. $he

reference was made 4< the Ministr< as a conseuence to the order ;assed

4< the Hi:h Court of Bom4a< in .5. No.&"07#"1 A"a"# Na'a!"

P&+a'a' 9s. L&(a Ne$ae' C+a'!ale T'u$1 which stated that a

e:isation in this 4ehaf is necessar


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1-2 A$$!$a".e ) +e I"#!3!#ual$, O+e' &'ga"!:a!&"$,

I"e'"a!&"al !e$ %&' '&3!#!"g 'el!e% a"# 'e+a!l!a!&" &

+e 3!.!($ &% .ala(!);a' &' a' l!e $!ua!&"-

".&." hene9er a caamit


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1-2-/ Views of S.L. Goel and Ramkumar in their book on ‘Disaster

Management’:

In res;ect of the ;eo;es ;artici;ation in reief wor1 we ma<

re;roduce a ;assa:e from the 4oo FDisaster Mana:ement edited 4< S.L.

Goe and Ramumar. It is stated in Cha;ter I at ;a:e '# as foows%

?hene9er disasters strie1 the< do not discriminate or differentiate

4etween men and nations1 ;oor or rich1 ations1 in the

aftermath of the massi9e earthuae that hit Gu8arat in the


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he; and su;;ort has united the ;eo;e and 4rou:ht to surface the

inherent 9irtues and uaities of human 4ein:. $here has 4een an

e-em;ar< dis;a< of feowshi;1 co!o;eration1 mutua he; and o9e

from a o9er the word re:ardess of cass1 caste1 creed and cutura

differences. Not on< from within the nation1 4ut from a o9er the

word from different countries1 Go9ernment1 socia ser9ice

or:ani>ations and indi9iduas with reief materia in the form of

tents1 cothes1 medicines1 construction items for erectin: homes1

rescue machines etc. ha9e anded 4< shi;1 air;anes and other modes

of trans;ort. A inds of reief materia is throu:hout ;ourin: in

from different ;arts of the word.@ 5ara &/

His Lordshi; further o4ser9ed%

?Caamit< is a e9eer of rich and ;oor1 stron: and wea1 a are

sufferin: aie. $he fa!out of the earthuae is the fow of

:enerosit< for he; to the 9ictims from within the countr< and a

o9er the word. So much of reief materia and mone< has 4een

recei9ed that its mana:ement and distri4ution ;ose an u;hi tas to

the Go9ernment. In the ;ast few da


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".&.+ Monetar< contri4utions 4< these ;ersons or or:ani>ations is one of

the most im;ortant facets of the reief o;erations A;art from mone


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ii/ In the second su4!cate:or< of donors are ;ersons or or:ani>ations or

a:encies who contri4ute in cash or ind to intermediaries such as non!

:o9ernmenta 4odies1 ie NGOs or indi9iduas1 trusts1 etc. and in this

second su4!cate:or< too the donors are entities who do not undertae the

res;onsi4iit< of distri4utin: the monies or items amon:st the 9ictims of

the caamitations who1 a;art from :i9in: their

contri4utions1 aso ;ro9ide their ser9ices ;ersona< at the ;ace of

caamitations1 trusts1 :rou;s1 NGOs etc. who start

coectin: funds and donations from the ;u4ic for the ;ur;ose of

;ro9idin: reief and reha4iitation to the 9ictims of the caamited into two :rou;s%

i/ In the first :rou;1 there are ;ersons or or:ani>ations1 who on<

coect the donations in cash or ind from the indi9iduas or or:ani>ations

and after coectin: them1 the< send the said items to the Go9ernment or

other a:enc< which ;ro9ide the actua reief. ,or e-am;e1 news;a;er

;u4ishers and other a:encies of eectronic media start coections of funds

"#

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whene9er a caamit< occurs. $he funds so coected are usua< sent to a

reief fund set u; 4< the Go9ernment or other a:encies. Simiarations1 cu4s etc.

aso coect the donations in cash or ind from their students1 staff1 worers

or mem4ers of the ;u4ic. $hereafter1 the< de;osit them in one or other of

the funds mentioned a4o9e.

ii/ In the second :rou; of intermediaries are ;ersons1 NGOs1 trusts or

other or:ani>ations or a:encies1 which not on< coect the contri4utions

and donations from the ;u4ic or other or:ani>ations1 4ut aso who1 instead

of sendin: them to Go9ernmenta a:encies1 themse9es ;ro9ide ser9ice

;ersona< at the ;ace of caamit< instead of sendin: the monies to

Go9ernmenta ,unds or a:encies. Some of these entities aso :et

donations or :rants from the Go9ernment or from funds set u; 4< the

Go9ernments or from Internationa Communit< and Or:ani>ations.

1-4 C&"'!u!&" %'&( F&'e!g" S&u'.e= T+e F&'e!g" C&"'!u!&"

>Regula!&"? A., 1976

Contri4ution for ;ro9idin: reief to the 9ictims of caamit< is not

on< raised within the countr< 4ut from forei:n and Internationa sources

aso. $he enactment which re:uates the acce;tance and utii>ation of

forei:n contri4utions is the ,orei:n Contri4ution Re:uation/ Act1 "6*0.

Section 0"/ of this Act ;ro9ides that an< association other than an

or:ani>ation of a ;oitica nature/1 which is ha9in: definite cuture1

economic1 educationa1 rei:ious or socia ;ro:ramme1 sha not acce;t

""

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contri4ution in cash or in ind from a forei:n source uness a/ such

association is re:istered with Centra Go9ernment1 and 4/ a:rees to

recei9e such forei:n contri4ution on< throu:h such of the 4ranches of a

4an as s;ecified in its a;;ication for re:istration. A;art from this1 after

recei9in: the forei:n contri4ution1 e9er< re:istered association is aso

reuired to :i9e an intimation to the Centra Go9ernment as to the amount

of each forei:n contri4ution recei9ed 4< it1 source and manner in which

forei:n contri4ution was recei9ed1 and aso the ;ur;ose for which and the

manner in which such forei:n contri4ution was utii>ed. Moreo9er1 where

such association a/ o4tains an< forei:n contri4ution throu:h an< 4an

4ranch other than throu:h which it has a:reed to recei9e forei:n

contri4ution1 4/ fais to :i9e intimation or :i9es fase intimation1 the

Centra Go9ernment ma< 4< notification direct that such association sha

not acce;t an< forei:n contri4ution without ;rior ;ermission of the Centra

Go9ernment. 29en otherwise1 the Centra Go9ernment ma< in certain

circumstances1 reuire an< association to o4tain ;rior ;ermission. sec. "#/

As ;er su4!section "A/ of section 01 e9er< association of the nature

referred to a4o9e1 if it is not re:istered with the Centra Go9ernment ma


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cor;oration incor;orated in a forei:n countr


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e sha ne-t refer to misa;;ro;riation1 mismana:ement or

di9ersion of donations. As mentioned earier1 whene9er there is a natura

or other caamit< or war or war ie situation some ;u4ic and ;ri9ate

or:ani>ations1 institutions1 indi9iduas etc. start coectin: funds and other

items in cash and ind from the ;u4ic1 for the ostensi4e ;ur;ose of the

wefare and reha4iitation of the 9ictims of such caamit< thou:h in fact1

the< do not intend to do so. $he funds or materia coected do not reach

the actua 9ictims either in whoe or in ;art1 and instead1 are

misa;;ro;riated or misused. In some cases ;ersons1 NGOs1 or:ani>ations1

:rou;s start coectin: the donations from the ;u4ic or other institutions

for the ;ur;ose of sendin: them to the Go9ernment or an< fund set u; 4<

the Go9ernment ie 5rime Minister1 Nationa Reief ,und 5MNR,/1

Chief Ministers Reief ,und1 Nationa Defence etc. 4ut the< do not send

them to the Go9ernment fund either who< or in ;art1 and instead1 the<

misuse or misa;;ro;riate such donations.

$his conduct cear< amounts to 4reach of trust. 5eo;e and

or:ani>ations who :i9e contri4utions whoehearted< and :enerous< in the

4eief that the contri4utions wi 4e he;fu for the wefare of the ;ersons

affected 4< the caamit


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1.6.1 Lokmat Newspaper Trust case:

e sha refer to a few cases where serious ae:ations of

misa;;ro;riation ha9e 4een made and are under in9esti:ation.

One of such recent cases of ae:ed misa;;ro;riation and

mismana:ement of ;u4ic contri4utions is the su48ect matter of a writ

;etition in the Bom4a< Hi:h Court at Na:;ur Bench/ No. &"0 of #"

A"a"# Na'a)a" Ra& P&+a'a' 3- L&(a Ne$ae' C+a'!ale

T'u$, Nagu'/. It has 4een stated in the ;etition that a trust caed

FLomat News;a;er Charita4e $rust1 Na:;ur has coected donations

from the ;u4ic a;;ro-imate< amountin: to two crore ru;ees in the name

and stations s;rin:

u; ie mushrooms and a;;ea to the ;u4ic at ar:e 4< in9oin:

"+

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their sentiments and emotions which faciitate them to coect hu:e

funds and a;;ro;riate in the manner the< fee it ;ro;er. $here is no

Go9ernment A:enc< to re:uate the coection of such funds and to

monitor that the funds so coected rea< reach the 4eneficiaries@.

1.6.2 Tema u!ar "actor# cam

It was re;orted in F$he Indian 2-;ress1 New Dehi dated "st June1

#) that the Justice Sawant Commission of 2nuir< is ;ro4in: into the

char:es e9eed 4< a socia acti9ist Anna Ha>are a:ainst a State Minister

from Maharashtra.. $hese char:es incude 9arious irre:uarities in $ema

Su:ar Coo;erati9e ,actor< in Osmana4ad Maharashtra/. It was ae:ed

that Rs. +".6* ahs were coected from the farmer sharehoders of the

societ< in the name of F=ar:i and FGu8arat earthuae1 4ut were di9erted

for re9i9in: a sinin: su:ar factor


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sections of societ< within the nation and reief came from outside the

countrens re;resentin: different was of ife a retired Chief

Justice of the Gu8arat Hi:h Court1 an eminent aw


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refer this matter to the Law Commission for recommendin: a;;ro;riate

e:isation to re:uate and monitor the funds coected from the ;u4ic in

the name of the wefare and reha4iitation of 9ictims of caamities or

wefare and reha4iitation of the 4erea9ed famiies of the sodiers

ied7in8ured in war.

".*.& $he Law Commission has e-amined the issues reatin: to coection

and utii>ation of the funds as we as other items recei9ed in ind1 in the

name of ;ro9idin: reief etc. to the 9ictims of caamit< and the wefare of

4erea9ed famiies of the sodiers ied or in8ured in war or other

o;erations. $he Commission was of the tentati9e 9iew that there was an

ur:ent need to 4rin: into force a Centra enactment s;ecifica< intended to

re:uate the coection of contri4utions to com;e the maintenance of

;ro;er accounts and to monitor the distri4ution of contri4utions so

coected with a 9iew to su4ser9e the ;ur;ose for which the donations were

made and for their ;ro;er utii>ation and distri4ution.

1- La C&((!$$!&"$ C&"$ula!&" ae'

".(." In order to o4tain the 9iews of the Go9ernment at the Centre and

States1 and aso of the media1 NGOs1 and a sections of the societ


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concerned ;ersons and institutions. $he consutation ;a;er was aso

;aced on the Law Commissions we4site name


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Go9ernment and one Mem4er from the Indian Audit and Accounts

Ser9ice1 and fi9e Mem4ers from the :enera ;u4ic.

9/ $here shoud 4e com;usor< re:istration of those who recei9e the

contri4utions1 under the name1 Fauthori>ed ;erson or a:encation. Detais

of such accounts shoud 4e furnished to the Coector and Re:uator<

Authorit


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-i/ $he Re:uator< Authorit< and the Coector sha 4e in!char:e of the

o9era su;er9ision of distri4ution and mana:ement of the contri4utions.

In case of 9ioation 4< an< ;ersons or a:encies1 the Re:uator< Authorit<

and the Coector shoud tae a;;ro;riate action1 which action sha

incude sei>ure of the contri4utions. He coud initiate ci9i or crimina

;roceedin:s a:ainst an< ;erson or a:enced ;erson or a:enc< and to ;ass

a;;ro;riate orders on the com;aint.

-iii/ $he Judicia Authorit


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wecomed the ;ro;osa for enactin: a e:isation on the su48ect. Detaied

res;onse from the Maharashtra State Law Commission and the

Go9ernment of est Ben:a ha9e 4een recei9ed. $hese su::estions

woud 4e discussed at the a;;ro;riate ;ace in the Re;ort. So far as

Centra Go9ernment Ministries and De;artments are concerned1 the

Ministr< of Defence and the De;artment of 5ersonne and $rainin: and

the De;artment of Rura De9eo;ment ha9e res;onded on some ;articuar

issues. $he Go9ernments of Ettar 5radesh1 Orrisa1 Himacha 5radesh1

=eraa and 5ondicherr< 4rief< res;onded and were in tota a:reement with

the Law Commissions ;ro;osas. $he Go9ernment of Haren efare

Counci1 Ru; Na:ar1 5un8a4 which a:reed with the ;ro;osas.

".6 P'e$e" Re&'

$he ;resent Re;ort is 4ased on further stud< on the uestions

in9o9ed1 after tain: into account the su::estions made in the res;onses

recei9ed to the Consutation 5a;er. $hou:h1 the mana:ement of a caamit<

or disaster is a much wider su48ect1 the ;resent Re;ort deas on< with a

;articuar as;ect i.e. re:uation of coection and utii>ation of contri4ution

coected or recei9ed for the ;ur;oses of ;ro9idin: reief and reha4iitation

to the 9ictims of an< caamit< or for the wefare and reha4iitation to the

sodiers ied or disa4ed in war or other simiar o;erations. In the

su4seuent Cha;ters of this Re;ort the foowin: issues are discussed%

&&

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i/ hether a ;erson main: the coection or recei9in: the funds is

in the ;osition of the trusteeK

ii/ hether a new aw is rea< reuired to re:uate such

contri4utionsK Le:isati9e com;etence of the 5ariament to

enact such a aw.

iii/ hich are the inds of contri4utions which shoud 4e su48ected

to the ;ro;osed awK

i9/ In what manner coud the coection and utii>ation of such

contri4utions 4e re:uatedK

9/ Constitution1 ;owers1 and functions of Re:uator< Authorit< and

other officias.

9i/ Duties of ;ersons1 4odies or a:encies authori>ed to coect

contri4utions1 incudin: the manner of coection and utii>ation

thereof.

9ii/ $erritoria e-tent1 commencement and sco;e of the ;ro;osed aw.

9iii/ Desi:nated Court1 its ;rocedure and ;ower.

&'

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C8APTERII

C&lle.!&" &% C&"'!u!&"$ !$ !" 'u$.

2-1 Legal $au$ &% .&"'!u!&"$

As stated earier1 whene9er a caamit< occurs or a war or war ie

o;eration commences1 ar:e amounts of contri4utions and donations in the

form of cash and other items in ind are contri4uted or donated 4< 9arious

indi9iduas or:ani>ations1 cor;orate sector etc. for the ;ur;ose of

;ro9idin: reief and reha4iitation to the 9ictims of such caamit< or

wefare and reha4iitation of sodiers and their fami< mem4ers ied or

disa4ed. $hese contri4utions are made to the Go9ernment as we as to

other NGOs1 trusts1 other 4odies and indi9iduas. $he< ma< 4e in cash or

ind. In the hands of Go9ernment or NGOs1 or other or:ani>ation or

indi9iduas1 who recei9e them for the ;articuar charita4e ;ur;ose1 the

coections are in the nature of a Ftrust. $hose who donate to these

NGOs or indi9iduas1 do so out of faith1 trust and confidence that the

amounts wi reach the 9ictims of the disaster. $he reci;ient1 in each case1

is a trustee and the 9ictims of the disaster are the 4eneficiaries. $here is

o49ious< a fiduciar< reationshi; of Ftrusteeshi;.

&.& I"#!a" T'u$ A., 12= al!e$ &"l) & '!3ae 'u$$= +e".e,ge"e'al '!".!le$ &% E"gl!$+ la al) +e'e-

&)

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$he Indian $rusts Act1 "((& a;;ies on< to ;ri9ate trusts and not to

;u4ic trusts. Sec. " of the Act states that the Act does not a;;< to ;u4ic

or ;ri9ate charita4e ?endowments@.

As ;er section ' of the Act1 ?A trust is an o4i:ation anne-ed to the

ownershi; of ;ro;ert


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uness that aw or ;ractice is inconsistent with the rue or ;ractice of the

Courts in India. It is true that man< ;ro9isions of the $rust Act re;roduce

the :enera aw of trust as administered 4< the euit< Courts in 2n:and1

4ut that does not mean that the ;ro9isions of the Act shoud 4e a;;ied.

$hus1 a trust is an o4i:ation where4< the trustee is 4ound to

;erform or for4ear some act for the 4eneficiar


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trustee. A trust is a ;ure< euita4e o4i:ation and is enforcea4e

on< in a court in which euit< is administered.@

&.'.' As ;er a eadin: 8urist U"#e'+!ll1 FA trust is an euita4e o4i:ation1

4indin: a ;erson who is caed a trustee/ to dea with ;ro;ert< o9er which

he has contro which is caed the trust ;ro;erted or e-cused 4<

the terms of the trust instrument1 or 4< aw is caed a 4reach of trust.

Enderhis Law of $rust and $rusteeshi; "#th 2dn. at 5a:e '/

2-4 Pu'&$e &% T'u$ee$+!.

As ;er FSal(&"# on Juris;rudence ""th 2dn. B< Gan9ie iiam1 at

;a:e '#(/1 the ;ur;ose of trusteeshi; is to ;rotect the ri:hts and interests

of ;ersons who for an< reason are una4e effecti9e< to ;rotect them for

themse9es. It is further stated that the chief casses of ;ersons in whose

4ehaf the ;rotection of trusteeshi; is caed for are four in num4er.

Accordin: to the earned author1 amon: these four casses of ;ersons

which are as foows%!

?In the first ;ace1 ;ro;ert< ma< 4eon: to ;ersons who are not


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?In the second ;ace1 simiar ;rotection is reuired for the ;ro;ert< of

those who i9e under some inca;acit< in res;ect of the administration

of it1 such as infinit


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amon:st the 9ictims of caamit


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Simiar< it can 4e said that when such contri4utions or donations

are :i9en to an< ;ri9ate indi9idua or NGO1 the< 4ecome trustees of the

mone< or items recei9ed.

$here is an 2n:ish case which we woud ie to refer. $hat is1 Re

N&'+ De3&" a"# We$ S&(e'$a Rel!e% Fu"# T'u$$ 9. W'!g+ "6+'

&/ A. 2R "#'&. ,acts of the case were as foows%!

On Au:ust "+1 "6+&1 torrentia rain fe o9er a wide area in north

De9onshire and est Somersetshire1 causin: disastrous foods and

:reat dama:e and de9astation. On "(th Au:ust1 "6+&1 an a;;ea 4<

the Lords ieutenant was issued in these terms1 ?e in9ite not on<

the ;eo;e of the west countr


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;ro;ortion to their donation. W)"" Pa'') 2-6 Ol!ga!&"$ a"# #u!e$ &% e'$&"$ a"# age".!e$ +& .&lle.

.&"'!u!&"-

hen contri4utions and donations are coected 4< NGOs or some

other ;eo;e1 the< ee; such contri4utions in the nature of trust and when

there is a trust1 o49ious< there are o4i:ations and duties on the trustees to

e-ecute the wishes of the authors of the trust i.e. the donors. $hese

donations and contri4utions shoud reach the 4eneficiaries i.e. 9ictims of

the caamit< or war1 as the case ma< 4e. O4i:ation of the trustee towards

the 4eneficiar


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Go9ernment to ensure that the reief and reha4iitation materia

meant for uae 9ictims reaches them in time and hour of need. ,or

the same ;ur;ose the< ha9e caimed a ri:ht to demand account of

recei;t and e-;enditure of such reief and reha4iitation materia in

cash and ind@.

$he 4eneficiaries ha9e aso a ri:ht to demand that the trustees im;ement

the ;ur;oses of the trust effecti9e


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?But when S. )#+ which defines Fcrimina 4reach of trust s;eas of

a ;erson 4ein: in an< manner entrusted with ;ro;ert


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;erson tain: the ;ro;ert< so as to create a 8udicia reationshi;

4etween them.@

$he ri:hts of the ;ersons to whom ;ro;ert< is entrusted is e-;ained

4< the Su;reme Court in


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o48ect of :enera ;u4ic utiit


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an< e-;ress or constructi9e trust created for the ;u4ic ;ur;oses of a

charita4e or rei:ious nature 4< the Ad9ocate Genera or 4< two or more

;ersons with the ea9e of court.

)/ I".&(e Ta5 A., 1961 :rants e-em;tions in res;ect of an<

contri4ution or donations :i9en to a trust created for charita4e or

rei:ious ;ur;oses section (#G/. A:ain1 income from such trusts is aso

e-em;ted in certain circumstances section ""1"&1"&A and "'/.

+/ I"#!a" Pe"al Ce 160% It deas with offences reatin: to trusts

and ;unishment for such offence. Sections )#+ to )#6 deas with crimina

4reach of trusts.

0/ Sae leg!$la!&"$% A;art from the Centra e:isations there are

certain e:isation of State e:isature re:ardin: Charita4e trusts.

&.6 E5!$!"g $e.!al leg!$la!&"$ #& "& $e.!%!.all) .&3e' +e 'e$e"

!$$ue=

$he Centra e:isation and a ar:e num4er of State e:isations that

at ;resent :o9ern the functionin: of trusts1 are ;remised on the e:a

;rinci;e of trusteeshi; and of trusts ha9in: to e-;end the funds at their

dis;osa in a manner ;ermitted 4< these aws. Howe9er1 some of thesee:isations a;;< on< to e-;ress trusts and some to im;ied trusts 4ut the<

are too :enera in nature and co9er a t


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trusteeshi; must :o9ern these other or:ani>ations and indi9iduas who or

which ma< not 4e e-;ress trusts. It is ;ro;osed to mae detaied

re:uations to :o9ern a a:encies in reation to funds coected s;ecifica<

for Disaster or Caamit< Reief. $he need for a s;ecia detaied e:isation

on the su48ect need not 4e o9erem;hasi>ed.

e ha9e here to address two main issues i/ how to re:uate the

coection of contri4ution and ii/ how to chec the misa;;ro;riation and

di9ersion of funds so coected1 so that funds reach the rea 9ictims of

caamit< or 9ictims of war1 in time. In case of an< 9ioation of or 4reach

of trust a s;ecia and fast mechanism has to 4e ;ro9ided so that the 9ictims

as we as donors are a4e to mae an immediate com;aint 4efore an

a;;ro;riate authorit< and such com;aint is heard and dis;osed of uic


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C8APTER III

Nee# & +a3e a $e.!al la 'ela!"g & .&"'!u!&"$

(a#e !" +e .&"e5 &% .ala(!!e$

/-1 Nee# %&' .&('e+e"$!3e la &" .ala(!) .&lle.!&"$ a"#

'e3e"!&" &% (!$a'&'!a!&" +e'e&%-

As stated in the earier Cha;ters1 as of now there is no

com;rehensi9e aw either made 4< 5ariament or the State e:isatures to

re:uate coections made 4< ;ersons or or:ani>ations in times of caamit<

or disaster. Hence1 the need for a s;ecia com;rehensi9e aw.

'.& T+e 8!g+ P&e'e# C&((!ee Re.&((e"#a!&"= Cala(!)

(a"age(e" la=

$he Hi:h 5owered Committee H5C/ on Disaster Mana:ement1

a;;ointed 4< the Go9ernment of India fet that there is a need for ha9in: a

Disaster Mana:ement Le:isation. Conseuented the

'(

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draft of the Mode State Disaster Mana:ement Act. A co;< of this draft

Act was aso circuated to the State Chief Secretaries and Reief

Commissioners of a States and DGs of a State Administrati9e $rainin:

Institute for their comments1 su::estion and further foow u; actions.

$hese drafts were su4mitted as a ;art of Interim Re;ort I of the H5C1 and

were acce;ted 4< the Centra Go9ernment1 and circuated to a Chief

Ministers. $he drafts of the FNationa Caamit< Mana:ement Act and

FMode State Disaster Mana:ement Act are anne-ed in the fina Re;ort of

the H5C Octo4er1 #"/ as Anne-ure + and Anne-ure ( res;ecti9e


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of caamit< 4ut aso in re:ard to the coections recei9ed for the wefare

and reha4iitation of the sodiers and their famiies who ha9e 4een ied or

disa4ed in a war or other o;erations1 such as the =ar:i confict1 which

issue is ;endin: 4efore the Bom4a< Hi:h Court. $herefore1 there is a need

of a se;arate aw which deas with the issue of re:uation and monitorin:

the coection of funds and other items in the form of donation or

contri4ution 4< indi9iduas1 NGOs other or:ani>ation or trust for the

;ur;ose of ;ro9idin: reief and reha4iitation of the 9ictims of natura or

other caamit< and for wefare and reha4iitation of the sodiers and their

fami< ied or disa4ed in a war or war ie other o;eration.

'.'.' $he Bom4a< Hi:h Court in Lomat $rust case su;ra/ out of which

the ;resent reference arises1 has fet the need to ha9e a aw to re:uate

coection of contri4utions. In that case1 the Di9ision 4ench of the Hi:h

Court in its order ;assed on '#.(.#" o4ser9ed thus%

?4ut we fai to understand wh< the Go9ernment i.e. Centra as

we as State Go9ernment has not re:uated the coection of such

funds from the ;u4ic at ar:e. It has now 4ecome a common feature

that in case of an< caamit< man made or natura1 or:ani>ations

s;rin: u; ie mushrooms and a;;ea to the ;u4ic at ar:e 4<

in9o9in: their sentiments and emotions which faciitate them to

coect hu:e funds and a;;ro;riate in the manner the< fee it ;ro;er.

$here is no Go9ernment A:enc< to re:uate the coection of such

funds and to monitor that fund so coected rea< reaches the

4eneficiaries@. ;ara &/

)#

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$he court further o4ser9ed%

?..In our o;inion1 coection of funds for such causes 4< ;erson1

Institutions1 $rusts1 Cor;orate houses and NGOs shoud not 4e

aowed without ha9in: contro o9er it 4< the State1 which is

necessar< in ;u4ic interest. Otherwise1 its misa;;ro;riation woud

:o uncheced ea9in: the donor he;ess as after one donates1 it is

eft to the sweet choice of the coector of such funds how to

a;;ro;riate it@. ;ara +/

/-4La C&((!$$!&"$ 3!e !" +e C&"$ula!&" Pae'

$he Law Commission in its consutation ;a;er on this su48ect at

;ara '."/ had su::ested that there is ur:ent need to 4rin: into 4ein: a

Centra enactment s;ecifica< intended to re:uate the coection and

;ro;er accounts of contri4ution and donations and to monitor

contri4utions so coected with a 9iew to see that the< are ;ro;er< utii>ed

and distri4uted.

/-Re$&"$e$ & +e C&"$ula!&" Pae'

$he su::estions of the Law Commission made in the Consutation

5a;er ha9e 4een wide< acce;ted and wecomed in e9er< res;onse which

the Commission has recei9ed.

i/ $he Ministr< of Defence in its etter dated '# Se;tem4er1 #) has

a:reed with most of the ;ro;osed ;ro9isions 4ut su::ested that so far as

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the re:uator< authorit< is concerned1 a re;resentati9e of the Defence

,orces of the e9e of Ad8utant Genera or eui9aent ma< 4e incuded1 to

o9ersee the interests of the defence ;ersonne and their famiies. It is aso

for its 9iew that a re;resentati9e of the concerned State Go9ernment aso

4e co!o;ted. ith re:ard to 8udicia authorited

coection of contri4utions 4< non!:o9ernment a:encies under sef!st


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e:isation is in ;u4ic interest and the State Go9ernment accords its

a;;ro9a for enactin: such a aw.

9i/ $he Go9ernment of 5ondicherr< has stated that the ;ro;osa of the

Law Commission for a enactin: a aw1 is a:reed to.

9ii/ $he Go9ernment of est Ben:a has aso a:reed to the ;ro;osa of

enactin: a aw.

9iii/ $he Go9ernment of Har


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-i/ $he De;artment of Rura De9eo;ment1 under the Ministr< of Rura

De9eo;ment1 Go9ernment of India has stated that so far as the

De;artment of Rura De9eo;ment is concerned1 it a:rees with the 9iews

e-;ressed in the consutation ;a;er.

-ii/ Howe9er1 the Go9ernment of Madh


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C8APTER I

)+

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PROPOSED ENACTMENT LEGISLATIE POWER, ITS

E*TENT, COMMENCEMENT AND SCOPE

)." In Cha;ter III1 we ha9e recommended that a aw shoud 4e enacted

to re:uate the coection of contri4utions and donations in cash and ind1

which are coected or raised for the ;ur;oses of ;ro9idin: reief and

reha4iitation to the 9ictims of natura or other man!made caamities or for

wefare and reha4iitation of the sodiers and their fami< who are ied or

disa4ed in war or war!ie other o;erations and aso to monitor the ;ro;er

utii>ation and distri4ution of contri4utions so coected.

In this cha;ter1 we wi discuss certain ;reiminar< issues concernin:

e:isati9e com;etence of 5ariament to enact aw on this su48ect1 its

territoria e-tent1 commencement and sco;e of the enactment.

).& $he e9i of misa;;ro;riation of coections or contri4utions is not

confined to a ;articuar State or ocait


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4-/ Leg!$la!3e P&e' &% Pa'l!a(e" & e"a. la &" +e $ue.-

).'." It is necessar< to :o into the uestion whether 5ariament has

e:isati9e com;etence to enact a aw on the su48ect matter now under

discussion.

).'.& 2ntries in the Concurrent List% 2ntr< "# and &( of List III%

O48ect of the aw is the main criterion to ascertain the e:isati9e

;ower of an< ;articuar e:isature.

$he o48ect sou:ht to 4e achie9ed 4< the ;ro;osed aw is to cur4 the

misa;;ro;riation1 and misuse of the contri4utions and donations coected

or raised for the ;ur;oses of ;ro9idin: reief and reha4iitation to the

9ictims of an< natura or other man!made caamit


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charita4e ;ur;ose1 the ;erson or 4od


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;ro9isions reatin: to the State of Jammu and =ashmir. As ;er Artice '*#

"/4/ of the Constitution1 the ;ower of the 5ariament to mae aws for the

State of Jammu and =ashmir is imited to those matters of Enion ist and

Concurrent ist which are decared 4< the 5resident of India as

corres;ondin: to the Instrument of Accession. $he 5resident with the

concurrence of the State Go9ernment of Jammu and =ashmir can add and

decare other matters on which the 5ariament can enact the aw1 which

ma< 4e a;;ica4e to Jammu and =ashmir.

).).' As discussed a4o9e1 the su48ect matter of the ;ro;osed aw fas

under entr< "# and &( of ist III1 and in an< e9ent1 under residuar< ;owers

of the 5ariament under entr< 6* of ist I read with Artice &)( of the

Constitution.

In e-ercise of the ;owers conferred 4< Artice '*# "/ of the

Constitution1 the 5resident with the concurrence of the State Go9ernment

of Jammu and =ashmir1 has made the FConstitution A;;ica4iit< to

Jammu and =ashmir/ Order "6+)1 CO)(/. As ;er section & &&/ c / of

this Order1 entries "# and &( of the Concurrent List are not a;;ica4e to

Jammu and =ashmir. 5ro9isions of Artice &)( and entr< 6* of the Enion

ist which deas with residuar< of the 5ariament1 ha9e 4een su4stituted for

the Jammu and =ashmir 9ide sections &0/4/ and &&&/ a/ i9/ of the

Constitution Order "6+). It means the ;ro9isions of Artice &)( and entr<

6* of the Enion List1 as a;;ica4e to the rest of the India1 are not

a;;ica4e to the State of Jammu and =ashmir. $herefore1 the aw made 4<

5ariament under its residuar< ;owers1 are not a;;ica4e to Jammu and

=ashmir.

)6

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).).) In 9iew of the s;ecia ;ro9isions a;;ica4e to Jammu and =ashmir

and in order to a9oid contro9ers< it wi 4e more a;;ro;riate if the

;ro;osed Centra enactment 4e not made a;;ica4e to the State of Jammu

and =ashmir. As this enactment reatin: to ;re9ention of misa;;ro;riation

of funds coected durin: caamities and destruction is in the ;u4ic

interest1 it ma< 4e more a;;ro;riate that State Le:isature of Jammu and

=ashmir itsef enacts such a e:isation in this 4ehaf for that State.

).).+ O" +e a$!$ &% #!$.u$$!&" a&3e e 'e.&((e"# +a +e

'&&$e# la $+all e al!.ale & e"!'e e''!&') &% I"#!a e5.e +e

Sae &%


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into force of this ;ro;osed enactment. It was ;ro;osed that if the

re:istration is refused 4< the Coector1 a the unutii>ed contri4utions

sha 4e taen o9er 4< the Re:uator< Authorit< or 4< the Coector from

such ;erson or 4od< as stated a4o9e and thereafter the Authorit< and the

Coector wi ha9e a ri:ht to transfer it to some other authori>ed ;erson or

a:enc


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o& -P 1 AIR "60" SC "+')1 adao ,ahu(i v. %unicipal Committee

handwa1 AIR "60"SC ")(01 %P3 undaramnier and Co. v. tate o& AP 1

AIR "6+( SC )0(/. Com;etence to mae a aw for ;ast ;eriod on a

su48ect de;ends u;on ;resent com;etence to e:isate on that su48ect. see.

A! 0a(ee Abdul hukoor and Co. 3s. tate o& %adras AIR "60) SC "*&)/.

$he Courts ha9e a;;ied Art ") to strie down certain aws which are

retros;ecti9e.

Now1 we anae the ;ro;osa made in the Consutation 5a;er.

$hree ma8or ;oints were made in the consutation ;a;er. $hese are% i/ in

:enera1 the ;ro;osed aw sha 4e ;ros;ecti9e in nature ii/ ;ersons or

a:encies who had coected contri4utions in ;ast sha 4e deemed to ha9e

;ro9isiona< re:istered under the new aw1 howe9er1 the< wi 4e reuired

to mae a forma a;;ication for re:istration within a ;rescri4ed ;eriod1

and iii/ if re:istration is refused1 a unutii>ed contri4ution sha 4e taen

o9er 4< the Re:uator< Authorit< or Coector and the contri4ution so

reco9ered ma< 4e handed o9er to some other ;erson or a:encations who had coected contri4utions in ;ast

are reuired to a;;< for re:istration. If their a;;ication is acce;ted1 the<

wi 4e ei:i4e to coect contri4ution in future aso. And if their

a;;ication for re:istration is re8ected1 a unutii>ed contri4utions e;t 4<

them sha 4e taen o9er 4< the Re:uator< Authorit< or Coector. After

a1 the coections are not their ;ersona ;ro;ert


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$hese ;ersons or or:ani>ations cannot caim that the< are osin: an<

interest in the ;ro;erted contri4utions 4<

the Re:uator< Authorit< or Coector amounts to ;unishment or

;enat< fain: within the ;rohi4ition of Artice "/ of the

contri4utionK If so1 such ;ro9ision wi1 of course1 4e ia4e to 4e

hed utra 9ires. $he answer to this uestion ma< 4e traced in the

8ud:ment of the ,i9e Jud:e Bench of the Su;reme Court in Sae &%

We$ Be"gal 3- S-@- G+&$+, AIR "60' SC &++.

$he Su;reme Court hed%

?e are1 therefore1 of o;inion that forfeiture ;ro9ided in section "'

'/ in case of offences which in9o9e the em4e>>ement etc. of

Go9ernment mone< or ;ro;ert< is rea< a s;eedier method of

reai>in: :o9ernment mone< or ;ro;ert< as com;ared to a suit which

it is not dis;uted the Go9ernment coud 4rin: for reai>in: the

mone< or ;ro;ert< is not ;unishment or ;enat< within the

meanin: of Artice "/@.5ara ")/

).+.) F!"al 3!e &% +e La C&((!$$!&" = P'&&$e# A. & e'&$e.!3e=

hen the Law Commission su::ested in the Consutation 5a;er

a4out :i9in: retros;ecti9e o;eration of the ;ro;osed enactments1 it was

+'

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fet that there are ae:ations of misuse and misa;;ro;riation of

contri4utions which had 4een made durin: F=ar:i confict Maed. It was in those circumstances that such

a ;ro9ision was su::ested. But since then "666 and #"/1 a ot of time

has aread< ;assed and it ma< tae further time 4efore an< aw is fina<

enacted and is 4rou:ht into e-istence. B< that time the unutii>ed

contri4utions ma< not e9en 4e tracea4e. Moreo9er certain technica

difficuties ma< aso arise1 in searchin: for the unutii>ed contri4utions. In

re:ard to such ;ast coections1 the e-istin: aw can1 if so desired1 4e

awa


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4e a;;ica4e on< to those contri4utions or donations which ha9e 4een

coected 4< ;ri9ate indi9iduas1 4odies or a:encies.

4-6-2 P'&&$al$ !" +e C&"$ula!&" Pae' a$ & G&3e'"(e" %u"#$-

In the Consutation 5a;er1 it was ;ro;osed that a contri4utions or

donations coected or recei9ed either in cash or in ind1 4< an< ;erson1

association1 a:encations shoud come under the ;ur9iew of the ;ro;osed

enactment ;ara '.&."/. In the Consutation 5a;er1 contri4utions coected

or raised 4< the Go9ernment or their a:encies were e;t out of the ;ur9iew

of the ;ro;osed enactment1 4ut su::estions were in9ited on the uestion.

).0.' Re$&"$e$ & +e C&"$ula!&" Pae'-

).0.'."Some of the res;onses su::ested that contri4utions made out of the

State funds1 ie 5rime Ministers Reief ,und1 Chief Ministers Reief

,und1 and other caamit< Reief ,unds set u; 4< the Go9ernment/ shoud

aso 4e deat with 4< the ;ro;osed enactment for the ;ur;ose of

introducin: a measure of accounta4iit< in the administration of the a4o9e

funds. Of course1 some other res;onses su::ested that such funds need not

4e co9ered 4< the ;ro;osed aw1 as there were other safe:uards.

).0.'.&$he 5ondicherr< Go9ernment in its res;onse has stated that Chief

Ministers efare ,und of 5ondicherr


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rues and scheme framed under the Charita4e and 2ndowments Act1 "(6#.

5ro9isions ha9e aso 4een made for ;ro;er accountin: and auditin: of

utii>ation of the funds under the said scheme.

).0.'.'$he Ma+a'a$+'a Sae La C&((!$$!&" is of the 9iew that

5rime Ministers ,und and Chief Ministers fund shoud not 4e 4rou:ht

within the ;ur9iew of this Act.

4-6-/-4T+e Dea'(e" &% Ru'al De3el&(e", M!"!$') &% Ru'al

De3el&(e", G&3e'"(e" &% I"#!a1 has 4rou:ht in the notice of the Law

Commission a4out a centra< s;onsored scheme1 name< ?Sam;oorna

Grameen Ro>:ar o8ana SGR/ of that Ministration for the wefare

of 9ictims of natura and other caamities or war ie emer:ent situations.

Howe9er1 in the wae of natura caamities1 additiona assistance is

;ro9ided to the affected State Go9ernments in the form of food :rains

under the s;ecia com;onent of the SGR. $his assistance is ;ro9ided

on< on the 4asis of the decision of a $as ,orce headed 4< the De;ut<

5rime Minister. In addition to this1 + ;er cent of tota aocation is e;t

reser9ed for caamit< affected areas under the SGR and Indira Awas

o8ana.

4-6-/-T+e Se.'ea'), Ra)a Sa!"! B&a'#, 8a')a"a in its res;onse hasaso stated a4out another fund name< FHar


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re:istered under the Societies Re:istration Act with the Re:istrar of ,irms

and Societies1 Har


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,und of different States. A;art from these1 sometime a ;articuar fund is

set u; to dea with a ;articuar caamit< or other e9entuaities. ,or

e-am;e Chief Minister 2arth uae Reief ,und of Maharashtra1 was set

u; to dea Latur earthuae. e aso ha9e Andhra 5radesh Chief Minister

C


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Contri4utions to the fund can 4e de;osited in seect Ban 4ranches throu:h

cheues and 4an draft. A forma recei;t for the contri4ution is issued

from the ,und. $he ,und does not acce;t an< contri4utions in ind.

$he Nationa Defence ,und is intended to tae char:e of 9ountar<

donations in cash and ind recei9ed for the nationa Defence effort1 and to

decide on their utii>ation. $he ,und is 4ein: used for a ;ur;oses

connected with defences incudin: wefare of the mem4ers of the Armed

,orces and 5ara Miitar< ,orces and their de;endants. $he fund is

administered 4< an 2-ecuti9e Committee consistin: of the 5rime Minister

as Chairman1 and the Defence1 ,inance and Home Ministers as Mem4ers1

Joint Secretar< to the 5rime Minister is the Secretar< of the 2-ecuti9e

Committee. Dis4ursement from the fund are made after o4tainin: a;;ro9a

of a mem4ers. $his is a 5u4ic ,und1 and the account and 4aance are

e;t with the Reser9e Ban of India. Its accounts are audited 4< the

Com;troer and Auditor Genera of India. htt;%77;mindia.nic.in7funds

dated ".(.#&/.

Go9ernment of India has constituted a FNationa Caamit<

Contin:enc< ,und NCC,/ for the ;ur;ose of deain: natura caamit< of

se9ere nature. $he ,und is cassified in the ;u4ic account of the

Go9ernment of India. $he Centra Go9ernment ;ro9ided initia cor;us of

Rs. +## crores. A Nationa Center for Caamit< Mana:ement NCCM/ has

4een constituted 4< the Ministr< of Home Affairs1 which wi assess how

much of the fund 4e utii>ed for immediate reief and reha4iitation. $he

a4o9e recommendation of NCCM is reuired to 4e considered 4< the Hi:h

Le9e Committee on Caamit< Reief constituted 4< the Ministr< of Home

+6

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Affairs. As ;er the decision of the Hi:h Le9e Committee1 the ,und is

reeased to the State Go9ernment. $he Ministr< of Home Affairs sha

o9ersee that the mone< drawn from NCC, is a;;ied 4< the State

Go9ernment for the ;ur;ose for which the ,und was set u;. $he account

of NCC, is maintained 4< the Chief Controer of Accounts1 Ministr< of

,inance1 and audited annua< 4< the Com;troer and Auditor Genera

As stated a4o9e1 the Chief Ministers efare ,und of 5ondicherr<

is 4ein: administered under a scheme notified under the Charita4e and

2ndowments Acts1 "(6#. $he said scheme contains ;ro9isions for ;ro;er

accountin: and auditin: of the utii>ation of the funds.

$he a4o9e discussion maes it cear that so far as contri4utions and

donations coected 4< the Go9ernment or their a:encies are concerned1

there are ;ro9isions for ;ro;er accountin: and auditin: of those coections

and utii>ation. Sti1 in the i:ht of ,reedom of Information Act1 #&1

when it 4ecomes effecti9e on framin: Rues/1 citi>ens ma< 4e a4e to

o4tain necessar< information re:ardin: amount of coection and

utii>ation of these funds. It is aso ;ossi4e that e9en otherwise1 a ar:e

amount of information ma< 4e a9aia4e on the internet in the officia

we4site of the Go9ernment or their a:encies. Some of the ,unds set u; 4<

the Go9ernment are :enera funds which can 4e used in case of an<

e9entuait


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Nationa Caamit< Mana:ement Act Cause ")/ and Mode State Disaster

Mana:ement Act cause &"/ has aread< su::ested ;ro9isions for ci9i

ia4iit< for misuse of funds 4< the officia functionaries who are entrusted

with or en:a:e in an< reief or rescue o;eration. 5enat< can 4e im;osed

eui9aent to "+# ;er cent of the tota oss of ;u4ic mone< or dama:es to

;u4ic ;ro;ert< caused 4< such officias. $his ;enat< is a;art from the

crimina ;rosecution that ma< 4e aunched a:ainst him. Such a aw1 if

enacted1 wi1 in our 9iew1 sufficient< tae care of misa;;ro;riation of

funds1 if anation

of funds and materias. ,urther1 in our 9iew1 an e-hausti9e audit cannot 4e

done hurried< and es;ecia< when the reief and rescue o;erations are

:oin: on. $herefore1 if funds coected 4< Go9ernment or its a:encies are

to 4e omitted from the a;;ica4iit< of the ;ro;osed aw1 it can 4e treated

as a reasona4e 4asis of cassification 4etween two casses1 nameation of contri4utions and donations 4< the

Go9ernment and its a:encies1 and 4< the ;ri9ate indi9iduas 4odies1

NGOs1 trusts etc. $he a;e- court in 9arious 8ud:ments has hed that1 in

certain circumstances1 one aw ma< a;;< to non!state entities and a

different aw ma< 4e made for the State see a!ir Ahmed v. tate o& -P4

A/ 157 C 8294 ondala /ao v. A.P../.T.C.4 A/ 1561 C 924 Nav

/attamal v. tate o& /a(asthan4 A/ 1561 C 187.

0"

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F!"al 3!e &% +e La C&((!$$!&"

).0.+ In these circumstances1 the Law Commission is of the 9iew that the

;ro;osed enactment shoud 4e made a;;ica4e on< to those contri4utions

and donations which are recei9ed or coected 4< ;ri9ate indi9iduas1

4odies1 or:ani>ations1 trust or NGOs or other ;ri9ate entities. $he

contri4utions or donations coected or recei9ed 4< the Go9ernment or its

a:encies or 4odies esta4ish 4< the Go9ernment or for an< fund set u; 4<

the Go9ernment shoud 4e e;t out of the ;ur9iew of the ;ro;osed

enactment.

T+e'e%&'e, e 'e.&((e"# +a +e '&&$e# e"a.(e" $+&ul#

e (a#e al!.ale & all +&$e .&"'!u!&"$ &' #&"a!&"$ .&lle.e# &'

'e.e!3e#, e!+e' !" .a$+ &' !"#, ) a") e'$&", a$$&.!a!&", age".),

), !"$!u!&", %!'(, NGO, 'u$ &' &+e' &'ga"!:a!&"- T+e u'&$e

&% +e '&&$al$ !$ & 'egulae .&lle.!&"$ a"# '&3!#e 'el!e% a"#

'e+a!l!a!&" & +e 3!.!($ &% a") "au'al &' (a" (a#e .ala(!) &'

%&' el%a'e a"# 'e+a!l!a!&" & +e $&l#!e'$ a"# +e!' %a(!l) +& a'e

!lle# &' #!$ale# !" a a' &' a' l!e &+e' &e'a!&", +e"e3e' $u.+

.&lle.!&"$ a"# 'el!e% &' !$ ae" u ) "&"g&3e'"(e"al

&'ga"!:a!&"$- I !$ %u'+e' 'e.&((e"#e# +a .&"'!u!&"$ 'e.e!3e#

) +e '!3ae a'!e$ 'e%e''e# & a&3e %'&( +e G&3e'"(e" &' a")

%u"# $e u ) +e G&3e'"(e", $+all e '&ug+ !"& +e u'3!e &% +e e"a.(e"- 8&e3e', a") .&"'!u!&" 'e.e!3e# ) +e

G&3e'"(e", &' a") %u"# $e u ) a") g&3e'"(e", &' ) a")

au+&'!) &' age".) e$al!$+e# ) a") g&3e'"(e" $+all "& e

'&ug+ !"& +e u'3!e &% +e '&&$e# e"a.(e"-

0&

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Discussion and fina recommendation of the Commission made in

this cha;ter ma< 4e summari>ed as foows%

1? Pa'l!a(e" +a$ leg!$la!3e .&(ee".e & e"a. la

&" +e $ue.-

2? T+e '&&$e# la $+&ul# e (a#e al!.ale & +e

+&le &% I"#!a e5.e +e Sae &%


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C8APTER

SALIENT FEATURES OF PROPOSED LAW

+." In this cha;ter1 we sha discuss the manner in which coection of

contri4utions and donations can 4e re:uated and aso the manner in which

utii>ation of such contri4utions can 4e monitored and action taen. As

stated in the ;re9ious cha;ters1 the main ;ur;ose of re:uation is to ensure

that no contri4ution is misa;;ro;riated or misutiised and to ensure that it

reaches to the actua need< ;erson or ;ersons in time and ;ro9ides s;eed<

and efficacious remedies.

+.& E$al!$+(e" &% Regula&') Au+&'!)

+.&." In order to achie9e the a4o9e o48ect1 it is desira4e that there

shoud 4e a Re:uator< Authorit< to re:uate the coections and utii>ation

of the contri4utions. It has 4een su::ested that the said Re:uator<

Authorit< shoud 4e inde;endent and im;artia1 and has to 4e esta4ished

4< the Centra Go9ernment1 and shoud consist of ;ersons of hi:h

inte:rit


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:o9ernment mem4ers. ,or e-am;e1 there was FDistrict e9e Natura

Caamities Committee for the Districts of =aahandi and =ora;ut in the

State of Orissa1 consistin: of the District Coector1 other officias and

oca M5s and MLAs of districts. $he Committee was reuired to re9iew

the ;ro:ress of reief wor and the measures taen to meet the drou:ht

conditions from time to time. In =ishen 5attna


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nowed:e of accountin: and mana:ement of funds or :rants1 to 4e

a;;ointed 4< the Centra Go9ernment.

4/ A ,u time Mem4er Secretar


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ha9e retired from such ser9ice with effect from the date of his res;ecti9e

a;;ointment as such Chairman7Mem4er. Howe9er1 this ;ro9ision wi not

a;;< to the cases where the ;ro9isions in the statutes under which the

4od< is constituted contain a ;ro9ision contrar< to the aforesaid OM. $he

Do5$ has stated that ;rereuisite and other terms and conditions of

Chair;erson and other mem4ers shoud 4e strict< as ;er the a4o9e O.M.

$he O.M. further ;ro9ides that ;a< u;on such a;;ointment as

Chairman7Mem4er1 wi 4e re:uated in accordance with the ;re9aiin:

orders of Go9t. of India a;;ica4e to the reem;o


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further su::ested that a re;resentati9e of the concerned State Go9ernment

ma< aso 4e co!o;ted.

+.&.).)De;artment of 5ower1 Go9ernment of est Ben:a has su::ested

that a;art from the Centra Re:uator< Authorit


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Securit< and 2-chan:e Board of India S2BI/ under the S2BI Act "66&1

Centra 5oution Contro Board under the ater 5Co/ 5oution Act

"6*).

$hese Authorities :enera< consist of a/ Chairman 4/ ,u $ime

Mem4ers c/ 5art!$ime Mem4ers1 a;;ointed or nominated 4< the Centra

Go9ernment. $hese mem4ers ma< 4e officias of the Go9ernment or non!

officias aso. ,u time mem4ers and Chairman :et saar< and other

4enefits whie ;art!time mem4ers norma< :et aowances and fees.

+.&.+.&In 9iew of the O.M. of Do5$1 Go9t. of India1 it is now ;ro;osed that

the Re:uator< Authorities shoud consist of a/ Chairman 4/ One 5art!

time mem4er who is e-;ert in matters reatin: to reha4iitation who sha

4e from the Centra Go9ernment not 4eow the ran of Joint Secretar


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+.&.+.)$he 9iew of the Maharashtra State Law Commission that in the

;ro;osed Re:uator< Authorit


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a/ A Chair;erson1 ha9in: s;ecia nowed:e or ;ractica e-;erience

in res;ect of matters reatin: to reief and reha4iitation of

9ictims of caamities with adeuate nowed:e of aw1

accountin: and mana:ement of funds or :rants1 to 4e nominated

4< the Centra Go9ernment. $he Chair;erson wi 4e a ;erson

hodin: a ;ost not 4eow the ran of Secretar< to the Go9ernment

of India. $he Chair;erson sha hod this office in addition to the

;ost he is hodin:.

4/ One ;art!time mem4er ha9in: s;ecia nowed:e or ;ractica

e-;erience in res;ect of matters reatin: to reief1 wefare or

reha4iitation with adeuate nowed:e of accountin: and

mana:ement of funds or :rants to 4e nominated 4< the Centra

Go9ernment. He sha 4e a ;erson who is hodin: a ;ost not

4eow the ran of Joint Secretar< in the Centra Go9ernment.

c/ One ;art!time mem4er to 4e nominated 4< the Centra

Go9ernment from the mem4ers of Indian Audit and Accounts

Ser9ice not 4eow the ran of Accountant Genera.

d/ $hree ;art!time mem4ers to 4e nominated 4< the Centra

Go9ernment to re;resent the interest of :enera ;u4ic. $hese

ma< 4e NGOs1 media1 e:a or medica ;rofession1 Chartered

Accountants1 socia worers.

e/ If the caamit< in re:ard to which coections are made1 reates or

concerns Defence ,orces1 a ;art!time Mem4er from the Defence

,orces not 4eow the ran of Ad8utant Genera or eui9aent ma<

4e co!o;ted 4< the Re:uator< Authorit


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$he ;ace of the head office of the Re:uator< Authorit< ma< 4e

such as ma< 4e notified 4< the Centra Go9ernment. Howe9er1 under the

Act1 the Re:uator< Authorit< is to 4e em;owered to hod its sittin:s in the

form of a cam; or circuit at the ;ace where the natura or other man made

caamit< has occurred and aso at such other ;ace where su4stantia ;art

of contri4utions or donations are coected or are 4ein: distri4uted. $he

Centra Go9ernment sha aso ;rescri4e rues of ;rocedure which wi 4e

foowed 4< the Re:uator< Authorit< in re:ard to the transaction of

4usiness at its meetin: incudin: uorum. But the time and ;ace of

meetin: sha 4e decided 4< the Chairman.

+.&.( ,inances%

It is o49ious that the Re:uator< Authorit< wi reuire necessar<

funds to meet 9arious e-;enditure1 which incudes ;a


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+.&.6."As mentioned earier1 the main tas of the Re:uator< Authorit< is

to wor as watchdo: o9er the coection and distri4ution of the

contri4utions and donations and to o9ersee that ;ro;er accounts are

maintained 4< the ;ersons and a:encies who ha9e coected the funds.

It has aso to see that there is no misuse of the contri4utions1 and1

therefore it 4ecomes im;erati9e that the funds and accounts of the

Authorit< itsef are maintained ;ro;er< and in trans;arent manner.

$herefore1 we recommend that the Re:uator< Authorit< sha maintain

;ro;er accounts and other ree9ant records of its funds and sha aso

;re;are an annua statement of accounts1 in such form which ma< 4e

;rescri4ed 4< the Centra Go9ernment in consutation with the Com;troer

and Auditor Genera of India. $he accounts of the Authorit< sha 4e

audited 4< the Com;troer and Auditor Genera of India.

+.&.6.&In su4seuent ;ara:ra;hs1 we sha 4e referrin: to a ;ro;osa that

the Re:uator< Authorit< sha ha9e ;ower to sei>e an< contri4ution in

case it finds that an< ;erson or a:enc< is found misusin: or

misa;;ro;riatin: the contri4utions and donations.

+.&.6.'A these contri4utions and donations and amount reco9ered 4< the

Re:uator< Authorit< shoud not 4e mi-ed with the other amounts of the

Re:uator< Authorit< and shoud 4e e;t se;arate 4< the Authorit


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Authorit< 4e of the same character and wi 4e trust moneed1 or

reco9ered 4< it. $he Re:uator< Authorit< sha 4e em;owered to

distri4ute this contri4ution to an< other authorised ;erson or a:enced ;erson1 4od< or a:encation

does not re:ister and sti indu:es in coections and misa;;ro;riation.

But1 it must 4e noted that the ;resent effort is to mae a s;ecia aw to dea

s;eedi< with coections and donations made to ;ri9ate indi9iduas or

or:anisations durin: caamities and disasters. As of now1 in the wae of

an< caamit< or disaster anation. $here is no chec which ensure that

on< :enuine ;ersons or a:enc< can coect. It is ;ro;osed that coections

*)

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made 4< an< unauthori>ed a:enc< or ;ersons wi 4e an offence. In order

to sa9e dea


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ma< either re:ister the ;erson or 4od< or refuse to re:ister. 5rocedure

reuired to 4e foowed 4< the Coector for decidin: the a;;ication1 was

aso mentioned in the Consutation 5a;er. It was aso ;ro;osed that in

case the Coector re8ects the a;;ication for re:istration1 a::rie9ed ;art<

can ;refer an a;;ea to the Re:uator< Authorit


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In res;onse to the Consutation 5a;er1 there were on< few

su::estions made in res;ect of ;ro9isions reatin: to re:istration of

authorised ;erson or a:enc


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;ro;osa ma< ;ro9e to 4e sef defeatin: in as much as this wi undu<

dea< the whoe ;rocess of ;ro9idin: reief and distri4ution of reief

materias to the 9ictims1 which is o;;osed to the 9er< o48ect of raisin:

such reief fund. It was ur:ed that such ;ro9ision either ma< 4e omitted or

rea-ed in some :enuine cases.

+.'.0.)$he main ;ur;ose for aowin: ;ro9isiona re:istration is to aow

the coection of contri4ution without awaitin: fina orders on the

a;;ication for re:istration1 in case of ur:enc


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+.'.0.+$he Maharashtra State Law Commission has su::ested that

re:istration sha 4e for a ;eriod of three to fi9e


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+.'.0.(In re:ard to Commissions ;ro;osa for a;;ea 4efore the

Re:uator< Authorit< a:ainst the order of refusa of re:istration or

canceation of re:istration 4< the Coectors1 it has 4een su::ested 4< the

Maharashtra Law Commission that the said a;;ea shoud ie 4efore the

;ro;osed Judicia Authorit< and a re9ision ma< 4e ;ro9ided to the

Re:uator< Authorit


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sim;ified. e do not see how it can 4e made more sim;er1 without

sacrificin: ;u4ic interest. 5rocedure for re:istration su::ested 4< us is a

sim;e one. In fact1 the a4o9e De;artment has not come forward with a

sim;er ;rocedure.

+.'.0.""In another res;onse1 the De;ut< Commissioner1 amuna Na:ar

Har


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main: coections contrar< to the ;rohi4ition sha 4e :uit< of an offence

of coection without such re:istration ;unisha4e with im;risonment u;to

'


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ii/ An< ;erson1 4od


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9/ a/ E;on recei9in: the a;;ication for re:istration1 the Coector

sha enuire and 9erif< the correctness of the facts mentioned in the

a;;ication aon: with documents fied in su;;ort of a;;ication and

the affida9it. On the 4asis of the findin:s of such inuir


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re:istration of such ;erson or a:enc< is fina< refused1 a the

contri4utions coected 4< such ;erson or a:enc< sha 9est in the Coector

and he ma< mae a;;ro;riate orders for attachment of such contri4utions

and their sei>ure and their distri4ution.

Sus;ension or Canceation of Re:istration

9iii/ I. Re:istration of an< ;erson or a:enc< or or:anisation can 4e

canceed 4< the Coector

a/ If such ;erson is ad8ud:ed as inso9ent under Inso9enc< aw

a;;ica4e to him or

4/ If char:es ha9e 4een framed 4< an< court a:ainst such ;erson

for ae:ed in9o9ement in an offence in9o9in: mora tur;itude or

c/ If such ;erson is con9icted 4< an< court for committin: an

offence in9o9in: mora tur;itude or

d/ If such ;erson1 4od< or a:enc< does not com;< with the

directions issued 4< the Re:uator< Authorit< or Coector or

e/ If such ;erson1 4od< or a:enc< 9ioates an< ;ro9ision of the

;ro;osed enactment or an< rues made thereunder.

5ro9ided1 no re:istration sha 4e canceed1 uness an

o;;ortunit< of 4ein: heard is :i9en to such ;erson or a:enc


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III. $he Coector sha communicate his decision on re:istration1

;ro9isiona re:istration1 sus;ension or canceation of re:istration aon:

with reasons to such ;erson1 4od< or a:enced contri4utions1 ;ossessed 4< such ;erson1 4od< or a:enc<

sha stand 9ested in the Coector inasmuch as it is difficut to identif< the

indi9idua donors in reation to the uns;ent mone


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its we4site so that a District Coectors ma< chec the same to see if a

;erson or 4od< whose a;;ication has 4een re8ected is main: a;;ication

esewhere.

-i/ Once a ;erson or a:enc< is re:istered at an< ;ace1 it sha 4e awfu

for it to coect or recei9e contri4ution from an< ;art of the countr< or e9en

from outside the countr< and distri4ute the same 4ut those who ha9e

;ro9isiona< re:istered sha not 4e entited to dis4urse the same.

Howe9er1 coections from outside the countr< sha 4e in accordance with

the aws :o9ernin: remittances of monies from a4road.

-ii/ An< ;erson1 4od< or a:enc< whose a;;ication for re:istration is

re8ected 4< the Coector of an< district1 he or it sha not 4e ei:i4e to :et

it re:istered at an< other district. Howe9er1 this rue wi not 4e a;;ica4e

where a re:istration is refused for want of some technica formaities or

want of sufficient e-;erience in socia wor.

+.) N& .&lle.!&"$ & e (a#e !+&u a$$!"g 'e.e!$=

+.)." $here is a need to maintain financia disci;ine1 in coectin: the

contri4utions. A;art from the mandator< re:istration for coection of

contri4utions1 it is eua< necessar< that the authorised ;erson or a:enc<

whie recei9in: an< contri4ution in cash or ind1 shoud :i9e a ;ro;er

recei;t to the donor. Such recei;t sha 4e 9aid ;roof of donation1 in the

hands of donors. $he Authorised ;erson1 4od< or a:enc< who or which

has coected such contri4ution can 4e hed accounta4e for such

contri4ution on the 4asis of the a4o9e recei;t.

(*

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+.).& In the Consutation 5a;er1 it was ;ro;osed that e9er< authorised

;erson or a:enc< whie coectin: an< contri4ution1 sha issue a stam;ed

recei;t of its coection to the donor.

+.).' $he Commission has recei9ed few su::estions for main: this

;ro9ision more strin:ent. De;ut< Commissioner1 amuna Na:ar

Har


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name and fu address of authorised ;erson or a:enc


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+.+.& $he Maharashtra State Law Commission in its res;onse has stated

that the contri4utions shoud 4e de;osited in the name of the a:enc< in

the Schedue Ban on a da< to da< 4asis. But its withdrawa and

dis4ursement shoud 4e under the direction of the Coector in the

manner stated and consistent with the s;ecia and :enera directions of

the Re:uator< Authorit


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of in9o9ement of :o9ernment and administrati9e machiner< in the

;rocess of ;ro9idin: reief wi ead to red!ta;ism and deaed 4an1 where a monetar<

contri4utions sha 4e de;osited forthwith1 i.e. to sa< immediate<

after recei9in: the same.

ii/ 29er< authorised ;erson or 4od< or a:enc< shoud aso maintain

;ro;er accounts of a contri4utions coected and distri4uted or

s;ent 4< it1 in accounts 4oos maintained in the ordinar< course.

iii/ $he e:isation ma< ;ermit rues in re:ard to the foowin:% a/ A

re:ister must 4e maintained as to the manner in which the

donations are distri4uted. $he account 4oo sha 4e maintained

on a da

the accounts and the Re:ister. c/ $he detais of the distri4ution

must 4e such that there can1 if need 4e1 ;ro;er 9erification of the

distri4utions. d/ here the mone< is utiised for ;urchase of

cothes1 utensis or food items or other artices or :oods1 the 4is

must 4e ;reser9ed for 9erification. e/ Month< returns of the

account ha9e to 4e furnished to the Coector in!char:e of the

area where the office of the authori>ed ;erson1 4od


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i9/ 29er< authorised ;erson or 4od< or a:enc< shoud inform the

Coector immediate< a4out the recei;t of mone< or item in ind1

the name of the donors1 and other detais as ma< 4e ;rescri4ed.

9/ Annua audit of the accounts has to 4e conducted 4< a uaified

chartered accountant and the audit re;ort shoud aso 4e sent to

the Coector as we as to the Re:uator< Authorit< within such

time as ma< 4e ;rescri4ed.

9i/ $he concerned nationai>ed Ban where the de;osits are made

sha aso su4mit month< statements of account of the authorised

;erson1 4od< or a:enc< to the Coector and the Re:uator<

Authorited

4< authorised ;erson or a:enc< on< for the ;ur;ose for which it was

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coected or recei9ed. An< ind of di9ersion of fund wi amount to 4reach

of trust 4/ no authorised ;erson or 4od< or a:enc< sha1 in the matter of

distri4ution of the donations discriminate a:ainst an< ;erson on the :round

of caste1 rei:ion1 ran1 an:ua:e or se- c/ after ;ro9idin: reief1 if aned in the hands of an< authorised ;erson1

4od< or a:enced

contri4ution to an< fund set u; 4< the Centra or State Go9ernment or to

the Re:uator< Authorit< or Coector d/ e9er< Authorised ;erson1 4od<

or a:enc< sha co!o;orate and :i9e fu assistance to the Re:uator<

Authorit< and the Coector whie dischar:in: their duties ;rescri4ed under

the aw.

+.0.& On the uestion of ;rohi4ition of di9ersion of contri4utions1 the

Go9t. of est Ben:a1 Le:isati9e De;tt. has o;ined that a4soute and tota

;rohi4ition on di9ersion of contri4utions is not desira4e in as much as

such tota and a4soute restriction wi ;re9ent the we meanin:

or:anisation etc. from usin: or a;;ed funds toward the

wefare and reief of disaster 9ictims. $herefore1 it was su::ested 4< the

Go9t. of est Ben:a that instead of im;osin: a tota 4an on di9ersion of

unutii>ed contri4ution1 a rea-ation ma< 4e ;ro9ided 4< incor;oratin: a

;ro9ision to the effect that such di9ersion ma< 4e aowed su48ect to ;rior

;ermission of the Re:uator< Authorit


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;ro9idin: reief to the 9ictims of a ;articuar disaster such as an

earthuae1 the donations shoud 4e s;ent and utii>ed for :i9in: reief to

the 9ictims of that ;articuar earthuae. It shoud not 4e utii>ed for some

other reief o;eration1 sa< for construction of a schoo 4uidin: at another

;ace which is not affected 4< earthuae. Otherwise1 it wi 4e a 9ioation

of the ;ur;ose of the coection and aso of the wishes of the donors. It is

the ;aramount dut< of the authorised ;erson1 4od< or a:enc< which has

made the coection that it shoud honour the wishes of the donors. $he<

shoud utiise and distri4ute the coections in terms of the wishes of the

donors. After ;ro9idin: tota reief and reha4iitation in terms of the

wishes of the donors1 if an< amount or other items in ind are eft

unutii>ed1 it wi 4e necessaration for

reief in other caamities or disasters.

+.0.) C)'e$ D&.'!"e

+.0.)."In this connection we woud ie to refer to the FC


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4< the donor is not considered to 4e of the essence of the :ift and the aw

mae ;ro9ision for charita4e intention to 4e carried into effect. FC


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Reief ,und $rusts "6+'/ &/ ALL2R "#'& aread< referred to/ the ;u4ic

had res;onded :enerous< to an a;;ea for funds for the reief of the

9ictims of a food disaster. After a the 9ictims had 4een reati9e< a ar:e

sur;us was eft in the hands of the trustees of the fund.


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woud not1 when there is a :enera charita4e intention e-;ressed 4<

the setter1 aow the trust to fai 4ut woud e-ecute it Fc


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$he first ;riorit< shoud thus 4e to utii>e the coection on< for the

;ur;ose for which it was coected. An< ind of rea-ation to this rue as

su::ested 4< the Go9t. of est Ben:a cannot 4e acce;ted.

+.0.+ $herefore1 we recommend that1 a;art from the maintainin: ;ro;er

accounts etc.1 e9er< authorised ;erson1 4od< or a:enc< shoud ;erform the

foowin: other duties%

i/ 29er< authorised ;erson1 4od< or a:enc< shoud utii>e the

contri4ution e-cusi9e< for the ;ur;ose for which it was

coected. $here shoud not 4e an< ind of di9ersion of such

contri4ution for a different ;ur;ose.

ii/ 29er< authorised ;erson1 4od< or a:enc< sha utii>e the

contri4ution in the manner 4est suita4e for the ;ur;ose for which

it was coected.

iii/ 29er< authorised ;erson1 4od< or a:enced in the hands

of an< authorised ;erson1 4od< or a:enc< it sha hand o9er1 such

unutii>ed contri4ution either to the Coector or to the

Re:uator< Authorit< for 4ein: used for reief in an< other

caamit< or disaster.

9/ 29er< authorised ;erson or a:enc< sha ;ro9ide fu coo;eration

and assistance to the Re:uator< Authorit< and the Coector in

the dischar:e of their functions and duties under the aw. 29er<

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authorised ;erson and a:enc< sha aso foow their directions

and instructions.

+.*O+e' &e'$, %u".!&"$ a"# #u!e$ &% +e Regula&') Au+&'!)

a"# +e C&lle.&'

A;art from the ;owers reatin: to re:istration and canceation of

re:istration and reco9erin: the unutii>ed contri4utions from the ;erson1

4od< or a:enc


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$herefore1 it is recommended that an< ;erson interested1 as stated

a4o9e1 who has an< information that an< other ;erson or a:enc< is

coectin: or recei9in: contri4

law commission report no. 191- regulation of funds collected for calamity relief, 2004

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