Telangana: Societies, trusts abusing funds; registration dept powerless

Hyderabad: The managements of many societies and trusts, registered under the Indian Societies Registration Act, including the president, secretary and other office bearers of cultural and recreational clubs, owning vast tracts of property, have been found to be misappropriating funds. The present Act gives no power to the Registration department to take any action.

Officials say that only a district court can intervene if irregularities are found. As per the Act, any citizen can set up a society for promoting art, culture, religion, sports, literature, science and other public purposes, and get it registered with a seven-member body for  a six-year term. The Act has made it mandatory for all societies to file amendments, annual lists etc, but no mention is made of what happens if they don't fulfil these requirements.

Once they have  formed a society, they are expected to file documents and returns within 30 days. Many societies, especially clubs, educational and  religious societies, do not comply with this norm. These organisations, which often have annual turnovers running into crores of rupees, have become centres that are alleged to be embezzling funds, with the members of governing bodies regularly making money through illegal means.

“Clubs run by societies registered for the promotion of culture and arts have become money making centres. The members of executive bodies abuse their position and issue illegal memberships, violating norms and earning money on the side,” a senior official said.

 Many registered societies are not serious about the purpose for which they were formed in the first place and become defunct: members flout the bye-laws and divert the funds at their disposal for other purposes. There is no mechanism in the government that would help to weed out such societies.

“In case of any serious violation being committed by such societies only a district court or a tribunal is competent enough to take action against them. This lacuna gives office-bearers a free hand to steal funds from the organisations,” the official added.