The Madhya Pradesh government has initiated the process of returning 110 properties of the Khasgi Trust, also known as the Devi Ahilyabai Holkar Charities, after the Holkar royal family that owns the trust was given relief by the Supreme Court after a decade-long legal battle. The trust claims ownership rights of 246 properties across the country.
On Thursday, the Supreme Court set aside a November 2020 order issued by the Madhya Pradesh high court which had directed the state Economic Offences Wing to probe the matter of sale of six properties including Holkar Bada in Haridwar and asking the state government to oversee the running of Khasgi Trust properties in the state. While the EOW investigation will now be withdrawn, the Registrar of Public Trusts will look into the case, the court said.
A controversy erupted in 2012 when then Member of Parliament Sumitra Mahajan alleged that the trustees had sold some properties illegally. The Registrar of Public Trusts had then handed over the properties to the state government. In 2013, the Madhya Pradesh high court set aside this order, but a fresh petition was filed in October 2020. The court then directed EOW to probe the matter of the sale of properties and the state government to take over the properties. The state government issued a notice on 110 properties saying that these were owned by the state government, and could not be sold without their permission.
In its order on Thursday, the Supreme Court asked the Khasgi Trust to register themselves under the MP Public Trusts Act,1951 within a month. The Economic Offence Wing (EOW) has also initiated the process of disposing off the case. EOW director general Ajay Sharma said, “We will follow the honourable court’s order and will end the probe with immediate effect.”
Trust advocate Abhinav Malhotra said, “The trustees nominated by the Holkar family have always acted in cooperation with the state government. The decision was always taken in the past with the approval of the government trustees on the board. Even in the future, no decision will be taken with respect to any affairs of the trust without the approval and consent of all trustees including government trustees.”
“A problem arose with respect to the title of the properties of the trust in 2012. Before that, everything was going on smoothly. Now the Supreme Court has through its judgement decided the issue of title in favour of the trust. The properties of the trust are situated all across the country and it will be with the cooperation of the state government that these historical properties such as temples, ghats, chattris, monuments that are part of our national heritage will be protected for our future generations,” he added.
The state government, however, also said that the Registrar of Public Trusts will investigate the sale of properties that EOW was probing. “The Court also held that the property has been sold by the Khasgi Trust without obtaining the permission of the Registrar, Public Trust. So the Registrar, Public Trusts, will now investigate. Whatever property has been sold by the Khasgi Trust, all the records, and documents regarding the sale will be called and checked,” said a statement from the government.
“After making an inquiry, the Registrar will decide how much loss has been caused to the trust by the sale of the property of the Khasgi Trust and how this loss will be recovered from the trustees. Registrar of Public Trusts, if it is found in the investigation that the trust is not being operated by the trustees in the public interest and public interest is not being served, then he can remove the trustees, the appointment of new trustees,” it said.
