(1) It shall be the duty of every auditor auditing the accounts of a public trust under section 33 to prepare a balance sheet and income and expenditure account and to forward a copy of the same to the Deputy or Assistant Charity Commissioner of the region or sub-region or to the Charity Commissioner, if the Charity Commissioner required him to do so.
(2) The auditor shall in his report specify all cases of irregular, illegal or improper expenditure or failure or omission to recover moneys or other property belonging to the public trust or of loss or waste of money or other property thereof and state whether such expenditure, failure, omission, loss or waste was caused in consequence of breach of trust, or misapplication or any other misconduct on the part of the trustees, or any other person.
35. 59[(1)] Where the trust property consists of money and cannot be applied immediately or at any early date to the purposes of the public trust the trustee shall be bound 60[(notwithstanding any direction contained in the instrument of the trust) to deposit the money in any Scheduled Bank as defined in the Reserve Bank of India Act, 1934, in the Postal Savings Bank or in a Cooperative bank approved by the State Government for the purpose or to invest it in public securities]:
Provided that such money may be invested in the first mortgage of immovable property situate in 61[any part of India] if the property is not leasehold for a term of years and the value of the property exceeds by onehalf the mortgage money:
Maintenance of accounts.
Balancing and auditing of accounts.
XXXVIII of 1949.
Auditor's duty to prepare balance sheet and to report irregularities, etc.
II of 1934.
Investment of public trust money.
1950: Bom. XXIX] Bombay Public Trusts Act, 1950 21 of 53
Provided further that the Charity Commissioner may by general or special order permit the trustee of any public trust or classes of such trusts to invest the money in any other manner.
62[(2) Nothing in sub-section (1) shall effect any investment or deposit already made before the coming into force of the Bombay Public Trusts (Amendment) Act, 1954, in accordance with a direction contained in the instrument of the trust:
Provided that any interest or dividend received or accruing from such investment or deposit on or after the coming into force of the said Act or any sum 63[so invested or deposited] on the maturity of the said investment of deposit shall be applied or invested in the manner prescribed in sub-section
(1).]
36. 64[(1)] 65[Notwithstanding anything contained in the instrument of trust-]
(a) no sale, mortgage, exchange or gift or any immovable property, and
(b) no Lease for a period exceeding ten years in the case of agricultural land or for a period exceeding three years in the case of non-agricultural land or a building, belonging to a public trust, shall be valid without the previous sanction of the Charity Commissioner.
66[(2) The decision of the Charity Commissioner under sub-section (1) shall be communicated to the trustees and shall be published in such manner as may be prescribed.
(3) Any person aggrieved by such decision may appeal to the Gujarat Revenue Tribunal within thirty days from the date of its publication.
(4) Such decision shall, subject to the provisions of sub-section (3) be final.]
CHAPTER VI.
CONTROL.
37. 67[(1)] The Charity Commissioner, the Deputy or Assistant Charity Commissioner or any officer authorised by the State Government by a general or special order shall have power-
(a) to enter on and inspect or cause to be entered on and inspected any property belonging to a public trust;
(b) to call for or inspect any extract from any proceedings of the trustees of any public trust and 68[any books of accounts or documents in the possession, or under the control, of the trustees or any person on behalf of the trustees];
(c) to call for any return, statement, account or report which he may think fit from the trustees or any person connected with a public trust:
Provided that in entering upon any property belonging to the public trust the officers making the entry shall give reasonable notice to the trustee and shall have due regard to the religious practices or usages of the trust.
69[(2) It shall be the duty of every trustee to afford all reasonable facilities to Bom. LIX of 1964.
Alienation of immovable property of public trust.
Power of inspection and supervition.
[1950: Bom. XXIX Bombay Public Trusts Act, 1950 any officer exercising any of the powers under sub-section (1) and the trustees 70[and person referred to in sub-section (1)] shall comply with any order made or direction issued by such officer in exercise of the power conferred upon him by or under sub-section (1).]
38. On receipt of a report of the auditor under section 34 71[or of a report, if any, made by an officer authorised under section 37] the Deputy or Assistant Charity Commissioner to whom the report is submitted shall require the trustee or any other person concerned to submit an explanation thereon within such period as he thinks fit.
72[39. On considering the report referred to in section 38, and the accounts and explanation, if any, furnished by the trustees or any other person, and after holding an inquiry in the prescribed manner, the Deputy or Assistant Charity Commissioner shall record his finding as to whether the trustees or any other person have been guilty of gross negligence, a breach of trust, misapplication or misconduct which has resulted in loss to the public trust and make a report thereof to the Charity Commissioner.]
40. The Charity Commissioner shall, after considering the report of the Deputy or Assistant Charity Commissioner, giving an opportunity to the person concerned and holding such inquiry as he thinks fit, determine-
(a) the amount of loss caused to a public trust;
(b) whether such loss was due to any 73[gross negligence, breach of trust,] misapplication or misconduct on the part of any person;
(c) whether any of the trustees, or any other person was responsible for such loss;
(d) the amount which any of the trustees or any other person is liable to pay to the public trust for such loss.