23 December 2010
I am planning to purchase a property for building apartments. but the problem is that the land is held under a trust. my query is that can the trustee ( who wishes to) transfer such land to me.. if no then is there any other alternative because on selling the apartment registration would have to be done in the name of the owner. the trust deed provides that the land can be used for the purpose of building a school or a hospital..
24 December 2010
I think, trust property can not be sold without the permission of Charity Commissioner. Charity Commr would give permission only if the proposal to sale the turst land is in line with the objectives of the trust.
24 December 2010
I presume it is a public trust registered with the Charity Commissioner. Sec 36 of Bombay Public Trust Act requires any sale/transfer/pledge of immovable property of trust to be pre-approved by the Charity Commissioner. The procedure for sale is public auction wherein open tenders are floated thru newspapers and the highest bidder gets the immovable property. Moreover, if the land has Agricultural status, then collector' approval is also required.
The above also holds good for Trusts registered in Gujarat.
If the trust is to be revoked, the immovable properties will be disposed in accordance with the above section and the money will go to the revenue department (district collector).
25 December 2010
Hi Rasesh, Thanks for the concern.. But it is a private trust with all the trustees being the family members. They are wanting to dispose of the land with minimal outflows in the shape of capital gains.. but the first and the foremost thing is that is it allowed for a trust to sell of its immovable property.. Are there any provisions through which i can take over the trust in my hands or change the objectives of the trust to include selling of residential plots. My ultimate purpose is to build apartments on the land and register it in the name of the customers.This land as on date is under a trust and is in U.P. How am i gonna do that is what i needed help on. I hope the picture is clear to you now. if there is anything you could help me with i'd be thankful..
CAclubindia
