Charity Commissioner Rejects Wilson School Redevelopment Application Over Statutory Lapses

· Free Press Journal

Mumbai: The Charity Commissioner's office in Mumbai has rejected an application seeking permission to redevelop and alienate the historic Wilson High School property at Girgaon, holding that the applicant failed to satisfy the statutory requirements under the Maharashtra Public Trusts Act, 1950.

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Order passed on July 9 by Joint Charity Commissioner Mahesh Lambe

In an order passed on July 9, Joint Charity Commissioner Mahesh Balkrishna Lambe dismissed the application filed by the United Church of Northern India Trust Association (UCNITA) under Section 36(1)(a) of the Act.

The application, filed on behalf of UCNITA by former Wilson College principal Dr Vishwas J. Sirwaiya, sought permission to redevelop the 3,824.45 sq m Wilson High School property in Girgaon. Under the proposed arrangement, the developer would have retained the free-sale residential and commercial components of the new building while constructing a new school building and paying ₹35.50 crore to the trust.

Former principal Sirwaiya to challenge order in Bombay High Court

Sirwaiya said he would challenge the order in the Bombay High Court. He said the school building dates back to 1854.

"How many more years can it last? The school needs to be redeveloped. It is a wooden structure and has survived because of this. Concrete would not last for more than 60 years," Sirwaiya said.

No compelling need or fair market value established, order states

In his order, the Joint Charity Commissioner held that UCNITA had failed to establish that it was lawfully entitled to invoke Section 36 for the redevelopment of the property. He further observed that tenants and other occupants of the property were necessary parties to the proceedings and that their non-joinder was fatal to the application.

The order also concluded that the applicant had failed to demonstrate a genuine and compelling need for redevelopment, that the proposal was in the interest of the trust and its beneficiaries, or that the consideration offered reflected the property's fair market value.

Case involved authority, valuation, tender transparency questions

"The inadequacy of the consideration warrants rejection of the present application. The proposed alienation is likely to adversely affect, rather than advance, the interest, benefit and protection of the Trust and its beneficiaries. The applicant has, therefore, failed to satisfy the statutory requirements for grant of sanction under Section 36(1)(a) of the Trust Act," the Joint Charity Commissioner said.

The order further held that the proposed transaction was neither fair nor transparent and was likely to adversely affect the interests of the trust and its beneficiaries.

Dara says order will help stop illegal church property sales

The Commissioner also noted that the case involved substantial questions relating to the applicant's authority to seek sanction, the legality of the proposed redevelopment, the adequacy of the valuation, the transparency of the tender process, and the overall benefit of the transaction to the trust.

Church activist and Christian Reform United People Association (CRUPA) secretary Advocate Cyril Dara welcomed the ruling, describing it as a landmark order that would help safeguard church properties.

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"The order has given big relief to the Christian community because various Christian trusts have been disposing of church properties illegally.

"We hope that, in view of this landmark order, the Christian community and the church beneficiaries will now be able to put a stop to the illegal sale of church properties that are not in the interest of the church beneficiaries and congregation members," Dara said.

"We wholeheartedly appreciate the Charity Commissioner's office for delivering justice to the Christian community by rejecting the application seeking sanction for the redevelopment and sale of Wilson High School. Through this landmark order, even other church properties could be saved permanently," he added.

Sirwaiya denied the allegations.

"These groups that are publicising the court order are lying. Even the Charity Commissioner's office does not know about the trust. Let the High Court decide," he said.

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