In Brief
The B.C. Batliwala Agiary Trust (a Parsi fire temple) sought sanction to sell and lease valuable property at Tardeo, Mumbai through a joint venture arrangement. The property was located at a prime location with an estimated much higher market value. The Charity Commissioner granted sanction for a price of Rs. 2.95 crores. The Supreme Court held that the Charity Commissioner failed in statutory duties under Section 36 of the Bombay Public Trusts Act, 1950, to protect the trust's interests by ascertaining market value and inviting public offers. The transaction lacked transparency and collusion between trustees and developer was evident. The Court set aside both the Charity Commissioner's sanction and the High Court's dismissal, directing the trust to repay the developer.
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