Soon, government nod to be necessary to seek donations

Mumbai: Seeking donations for causes such as religious occasions, charity, natural disasters, war relief, riots or accidents will be difficult in the near future as the Maharashtra government has proposed the amendment of the Public Trusts Act. The state will also ensure that — as per the high court’s directions — funds collected for the Dahi Handi festival are not misused.

Aiming to curb malpractices via fundraising for various purposes, the proposed amendment in the Act has made it compulsory to seek permission from the charity commissioner and submit an audit of the collected funds. If the charity commissioner finds any fault in the fund collection, the individual can get three months’ imprisonment and fine.

A bill in this regard, the Maharashtra Public Trusts Act 2017, will be tabled in the Assembly during ongoing monsoon session of the legislature. The bill said “no person (other than public trust) shall collect any money, contribution, subscription or donation in cash or any kind for religious, charitable purposes without seeking prior permission of the assistant charity commissioner or the deputy charity commissioner. In the exigencies for aiding, assisting or giving relief to the persons affected by natural disaster, war, riots, accidents or similar cause, the collection may be made by giving intimation in the form of prescribed to the assistance charity commissioner.”

The charity commissioner will have an online system where permission can be sought and will give his nod in seven to 15 days. The approval will be valid for six months only.

Also, an individual should submit audited accounts of the collections and receipts of the contribution within two months. If the process is not followed, the person will be “liable for “punishment with simple imprisonment for a term, which may extend to three months or with fine which may extend to one and half times the amount or contribution collected without seeking prior permission”. CM Devendra Fadnavis who heads the law and judiciary department said in a statement, “The Maharashtra Public Trusts Act regulates and makes better provisions for the administration of public and religious and charitable trusts.”