Self-governed social and religious trusts cannot be subjected to “overarching state control” as it would undermine the principle of autonomy and democratic decision-making and would reduce the fundamental right of freedom of association “an empty husk”, the Supreme Court said on Friday.
The verdict dealing with the right of the state instrumentalities over the affairs of registered social and religious trusts came on an appeal of Parsi Zoroastrian Anjuman, Mhow, which was denied the nod by the Registrar of the society to sell its five properties in Madhya Pradesh despite following the due procedures.
“The impugned judgment and the decision of the Registrar are hereby set aside,” a bench comprising justices U U Lalit, R Ravindra Bhat, and Bela M Trivedi said and permitted the Parsi trust to implement its decision to sell its five properties after fresh valuation of each of the properties.Justice Bhat, writing the judgement, acknowledged the state's power to monitor the affairs of registered social and religious trusts to ensure that their properties are not frittered away, but said it cannot control the decision-making process of self-governed societies.
The verdict said the role of designated state officials like the commissioner or registrar is to ensure that accounts are properly maintained and monies are expended in accordance with the aims and objects of the endowments.
“Such regulation does not mean that the state is allowed to appropriate monies which rightly belong to the endowment..The aim of public control is to ensure that the trust is administered efficiently and smoothly,” it
said.