Appendix 8 — GFR

APPENDIX - 8 [See Rule 286. (3) and Rule 311] CHARITABLE ENDOWMENTS AND OTHER TRUSTS I. CHARITABLE ENDOWMENTS 1. The duties of the Treasurer of Charitable Endowments for India are prescribed in the Charitable Endowments Act, 1890 (Act VI of 1890), and the rules framed thereunder, which are printed as an Annexure hereto. 2. Under sub-section (1) of Section 3 of the Charitable Endowments Act, the Deputy Secretary/Director (Budget) in the Ministry of Finance, Department of Economic Affairs, nominated for the purpose, has been appointed ex officio to be the Treasurer of Charitable Endowments for India with effect from the 1st April, 1954. All the property of Charitable Endowments, the objects of which extend beyond a single State or which are objects to which the executive authority of the Central Government extend, vest in him. The Treasurer of Charitable Endowments for India is authorized to employ the agency of the Treasurer of Charitable Endowments of a State, with the consent of the State Governments, for discharging any of the functions assigned to him under the rules referred to in Paragraph 1 above. 3. When a copy of a vesting order is received by the Treasurer of Charitable Endowments for India, he should at once place himself in communication with the persons who appear from the order to be the holders of the documents of title relating to the property or of the securities mentioned in the order, and request them to forward the Title Deeds, or securities in a registered cover and to insure the cover for Rs. 100. These do not require to be endorsed, as the vesting order operates to transfer the securities to the Treasurer. 4. At every change of Office of the Deputy Secretary/Director (Budget) in the Ministry of Finance, Department of Economic Affairs nominated for the purpose, a formal transfer of charge of the Treasurer of Charitable Endowments for India should also take place and as separate charge report, supported by a statement of the total of the balances of the Funds vested in the Treasurer, duly signed by the relieved and the relieving Treasurers should be sent to Government. A list of receipts granted by the Reserve Bank in acknowledgement of the securities forwarded to it for safe custody as also of the securities kept in the custody of the Treasurer should also be prepared and signed by the relieved and the relieving Treasurers, and sent to Government along with the charge report. NOTE. -Whenever there is a change in the Office of a Treasurer of Charitable Endowments of a State who has been acting as an agent of the treasurer of Charitable Endowments for India, a charge report prepared in the manner indicated in this paragraph should be furnished to the latter. II. MISCELLANEOUS TRUST ACCOUNTS 5. If, under any general or special orders of Government, an Audit Officer / Accounts Officer or any other Government officer is required to act in his official capacity as a Trustee or Depository of any public or quasi- public fund, which does come within the scope of the accounts of Government, or of any Charitable Endowment and is not a Government security held in trust under the rules in Chapter IX of the Government Securities Manual, such an officer should endeavour to have the trust vested, if possible, in the Treasurer of Charitable Endowments for India; but, if that course is not possible, he should open an account with the State Bank of India, or with any other approved Bank, for the deposit of moneys received by him on account of Trust. Full and clear record of all transactions relating to the trust fund should be kept in the books of accounts in his personal custody in a form complying with the terms and conditions of the Trust. The securities, if any, deposited with him should be dealt with in accordance with the instructions contained in Chapter IX of the Government Securities Manual. 6. The books of accounts should be supported by a short statement descriptive of the nature and obligation of the Trust, with reference to the documents bearing upon it, so that any other Government officer on receiving charge may know by reference to it exactly what his obligations are in the matter. NOTE. -The receipt and disposal of interest should be recorded in these accounts which are meant for the principal of the Trusts only. 7. The accounts should be balanced and closed every 31st day of March. They should also be balanced and closed when the Government officer acting as the Trustee makes over charge of his office to a successor or substitute, a balance sheet being appended to the charge report and signed both by the officer receiving and the officer giving over charge. 8. The accounts will be subject to such audit check as may be prescribed by Government.

THE CHARITABLE ENDOWMENTS (CENTRAL) RULES, 1942 1. Short Title. - which the executive authority of the Central Government extends. 2. Interpretation. - In these rules -

ANNEXURE [See Paragraph 1 of Appendix -8] In exercise of the powers conferred by Section 13 of the Charitable Endowments Act, 1890 (VI of 1890), and in supersession of the late Home Department Notification No. 1569 - Judicial, dated the 24th October, 1890, the Central Government is pleased to make the following rules and forms :- (1) These rules may be called the Charitable Endowments (Central) Rules, 1942. (2) They apply to charitable endowments the objects of which extend beyond a single State or are objects, to

(a) “the Act” means the Charitable Endowments Act, 1890;

(b) “Treasurer” means the Treasurer of Charitable Endowments for India for the time being, appointed under sub-section (1) of Section 3 of the Act, and includes such other officer as the Treasurer may appoint to discharge any of the functions assigned to him under these rules;

(c) “Form” means a form appended to these rules. 3. Previous publication of vesting orders and schemes.-On cases in which private persons apply for a vesting order or a scheme or modification of a scheme, and in all cases in which it is proposed to depart in any respect from the ascertained wishes or presumable intentions of the founder of an endowment, there shall ordinarily, and unless the Central Government otherwise directs, be precious publication of the proposed vesting order or scheme or modification. 4. Mode of previous publication. (1) Unless the Central Government is of opinion that a proposed vesting order or proposed scheme or modification of a scheme may be made or settled without previous publication, it shall publish a draft of the proposed order, scheme or modification or a sufficient abstract thereof, for the information of persons likely to be affected thereby. (2) The publication shall be made in the Official Gazette and in such other manner as the Central Government may direct. (3) A notice specifying a date on or after which the proposed order, scheme or modification will be taken into consideration by the Central Government should be published with the draft or abstract. (4) The Central Government shall consider any objection or suggestion which it may receive from any person with respect to the proposed order, scheme or modification thereof before the date specified in the notice under sub-rule (3). 5. Costs. The cost of the previous publication under Rule 4 of any proposed order, scheme or modification of a scheme, and any other costs incurred or which may be incurred in the making of the orders or in the settlement of a scheme or modification of a scheme, shall be paid by the applicant for the order, scheme or modification, as the case may be, and, if the Central Government so directs may be paid by him out of any money in his possession pertaining to the trust to which his application relates. 6. Securities which may vest in the Treasurer.-No securities for money except the securities mentioned in Clauses (a), (b), (bb),

(c) and

(d) of Section 20 of the Indian Trusts Act, 1882 (II of 1882), shall be vested in the Treasurer. 7. Accounts of trusts consisting of immovable property.-In the case of property vested in the Treasurer other than securities for money, the person acting in the administration of the trust and having, under sub-section (3) of Section 8 of the Act, the possession, management and control of the property and the application of the income thereof, shall in books to be kept by him, regularly enter or cause to be entered full and true accounts of all moneys received and paid respectively on account of the trust, and shall, on the demand of the Central Government, submit annually to such public servant as the Central Government may appoint in this behalf, in such form and at such time as the Central Government may prescribe, an abstract of those accounts and such returns as to other matters relating to the administration of the trust as the Central Government may from time to time see fit to require. 8. Fees. (1) The following are prescribed as the fees to be paid to the Central Government in respect of any property vested under the Act in the Treasurer :-

(i) In the case of property other than securities for money, the actual charge incurred by the Treasurer in the discharge of his functions in respect of the property.

(ii) In the case of securities for money, at the rate of one Paisa for every rupee of interest collected. The fee shall be charged on interest by rounding off the amount to the nearest rupee, fractions of a

General. rupee below fifty Paisa or more being reckoned as one rupee. (2) The Treasurer may deduct any fees payable to the Central Government under this rule on account of any endowment from any money in his hands on account of such endowment. If he holds no such moneys the amount shall be claimed form the administrators of the endowment. 9. Vesting orders how filed. - All copies of vesting orders received by the Treasurer shall be filed together and shall be numbered in consecutive order of their receipt; when a sufficient number have been received they shall be bound in volumes. A note shall be made on each vesting order of any entries in the registers prescribed under these rules relating to the property vesting in the Treasurer under the order. 10. Registers of securities. - On the receipt of any securities for money, or on their purchase by himself, the Treasurer shall record their receipt in a register in Form 1. He shall also keep a separate account for each endowment in Form 2, in which he shall record all receipts including any amount sent for investment, and all disbursements. In the cash account in Part - II of Form 2 the Treasurer shall record only his own transactions (such as the payment of the money to the administrator), and not the transactions of the administrators of the endowment fund. 11. Stock Disposal Register. - The Treasurer shall enter all securities returned or sold by him in a register in Form 3. Returns shall also be entered in Form 2, where the amount returned will be deducted from the capital of the endowment concerned. 12. Custody of Securities. - On the issue of a vesting order under Section 4 of the Act in respect of any securities for money, the person authorized under Section 6 of the Act to make the application for such vesting order shall, as soon as practicable, forward to the Treasurer the said securities. The Treasurer shall, after recording the receipt of the said securities in the registers kept under Rule 10, take steps, as soon as practicable, to have them converted into stock and keep the stock certificate in his custody. After conversion, entries shall be made in the Treasurer’s Stock Register in Form 7. A consolidated register showing the securities (e.g., Promissory Notes and the Stock Certificates) in the custody of the Treasurer shall also be maintained in Form 8. 13. Accounting of Interest. - The Treasurer, on receipt of any interest securities, shall pass it through his General Trust Interest Account under a special Sub-Head “Interests on Charitable Endowments under Act VI of 1890”. The interest will then be distributed to the various ledger accounts in the register in Form 2, in which the gross amounts shall be shown, any deductions for fees, etc., being shown as a charge, and the payment of the balance to the administrators being shown as a disbursement. The Treasurer shall maintain personal, ledger account in the Reserve Bank and shall make payment to the administrators by cheques. The entries in the ledger of interest received shall be taken out and agreed annually with the total amount of the interest drawn. 14. Balance Sheet. -The registers in Form 1 shall show all securities vested in the Treasurer as such. In order to prove the balance actually held by the Treasurer in his own hands, a balance sheet in Form 4 shall be made out actually and agreed with the actual securities in the Treasurer’s possession. Such agreement shall be certified on the balance sheet. 15. Publication of accounts. -A list of all properties vested in the Treasurer and an abstract of the accounts of the interest and the annual agreement of balance shall be published in the Official Gazette on the 15th June of each year. 16. Register of property other than securities. -The Treasurer shall enter in a register in Form 5 any property other than securities which becomes vested in him, and shall record in the same register against the original entry a note of any property of which he is divested. 17. Form of publication of list and abstract. -The list of properties vested in the Treasurer to be published annually under Rule 15 shall be in Form 6. Part - I will relate to properties other than securities; Part - III will relate to securities and will also contain the abstract of accounts required by the Act to be published. The Treasurer shall demand and receive acknowledgements of the correctness of the balances when so published, from the administrators of endowment funds or from any one or more of their body who may have been authorized by the administrators to give such acknowledgements and such acknowledgements shall be furnished within 3 months from the date of publication of accounts in the Official Gazette. 18. Audit. -Arrangements for annual audit of the Treasurer’s accounts shall be made by the Comptroller and Auditor

REGISTER OF SECURITIES HELD UNDER ACT VI OF 1890 SI. No. Date of Receipt Number or brief No. and date of forwarding received description of letter Charitable Endowments