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Regulate fund-raising for social causes by private entities: HC

PTI Aug 16, 2013, 07.32PM IST
(Bombay High Court today…)

MUMBAI: Bombay High Court today expressed concern about private organisations collecting funds for social causes and directed Maharashtra government to formulate a mechanism to regulate such activities.

The division bench of Justices D Y Chandrachud and S C Gupte was hearing a PIL filed by social activist Sharad Patil in 2010, alleging that Kolhapur-based trust 'Warana Bhartiya Sena Madat Nidhi' and its member Vinay Kore, former state minister, sought donations for Kargil war martyrs' widows but the funds were not used for the stated purpose.

Earlier, upon the court's order, the trust had deposited over Rs 91 lakh with the High Court Registrar.

The petition also highlighted the dangers in allowing private organisations to collect money from public.

Observing that in the absence of a regulatory mechanism, such funds could be used for extraneous purposes, Justice Chandrachud said, "The state government cannot allow such a state of affairs by turning a blind eye.

"We are of the view that the Union and state government must come forward and formulate a policy to regulate collection of funds by private entities. Whether they should be allowed to collect funds? It needs to be ensured that sufficient regulatory mechanism is put in place to see to it that funds are released to those for whom they are collected," the court said.

The bench directed Principal Secretary, Law and Judiciary, to convene a meeting of concerned officials and inform the court of steps taken by October 18.

"Since the money is now in court, we direct that the Registrar shall, upon making due enquiry with the secretary of the Ministry of Defence, remit the cheque drawn in favour of the appropriate fund for benefit and rehabilitation of Kargil war widows and martyrs," the court ordered.

According to the trust, the funds were to be used for setting up training schools and hostels for children of soldiers.

"Prima facie it appears that the trust collected money in the name of Kargil war martyrs and their widows. However, the money was not used for that purpose," the court said.

The bench also directed the Charity Commissioner to audit the trust's accounts.