He then referred to the Directive Principles of Public Policy enshrined in Part IV of the Constitution of India.
Since the subjects of Charities, Charitable Institutions, Charitable and Religious Trusts and Religious Institutions are listed as Entry No. 28 in the Concurrent List of Schedule 7 of the Constitution of India, the Court concluded that both the Central and State Legislatures are competent. legislates and regulates charitable organizations
He further noted that the legislative framework governing charities in India is very complex due to the plethora of legislation.
“This highlights the inevitable need for central legislation to regulate charities and their operations.“, the court noted.
Therefore, the Court found it appropriate to require the Central Government to explore the possibility of enacting a central unified legislation to regulate the functioning of such institutions, as well as the creation of a central agency for the same purpose.
“I may also request the Central Government to explore the possibility of a single central legislation regulating the functioning of charitable organization/institution and religious institutions as mentioned in entry No. 28 of the parallel list of Schedule VII of the Constitution of India, including the Constitution of India. solving problems of income, expenditure, acquisition and disposal of assets of the centralized body. The possibility of setting up a centralized force/body for this purpose may be explored by the Central Government“in the order stated.