The Hindu Business Line : Of charitable institutions and control over their kitty

AN increased presence of Government-appointed officers on the boards of charitable institutions in Maharashtra could trigger a flight of social activity and capital out of the State, industry representatives have cautioned.

The concern comes in the wake of a recent report from the Maharashtra Law Commission that recommends, among other things, a Government-appointed executive officer on the boards of charitable institutions of all hues - hospitals, educational and religious. Ostensibly for reigning in the management of charitable institutions, industry representatives however feel that the fuss is over the funds they have at their disposal.

"Some of our members have indicated that if such an amendment is made in the Act (Bombay Public Trusts Act 1950), they could look to move their headquarters outside the State. But that would be disastrous, since about 80 per cent of the healthcare provided is by the private sector. At a time when the Government is looking for more private participation in healthcare, it would not be prudent to bring Government presence on board a charitable institution," Mr Nanik Rupani, President, Indian Merchants' Chamber, told Business Line.

Public perception, however, has been that charitable institutions are "expensive," despite the fact that they get subsidies and tax benefits from the government. Responding to the allegation, an Association of Hospitals (AoH) official said: "There is a charity commissioner who runs periodical checks that ensures genuine philanthropy. So, if there is a mismanagement of funds, one should clean up the existing system rather than bring in Government interference."

According to Mr M.L. Bhakta, President of AoH, "Over 60 per cent of the hospitals in the city and State are run by trusts. And the Government's attempt to impinge on the independence of these philanthropic healthcare institutions is likely to severely impact the day-to-day working of hospitals. ... It may well be the proverbial nail to an already overstressed healthcare delivery system."

Further, he said, it is not clear what the real intention of the Government is or who the real target - religious institutions or hospitals. But if they implement the recommendation, it would adversely impact the philanthropic activity in the State, he cautioned.

Industry sources point out that charitable institutions have always sparred with the Government - be it in Kerala with the Guruvayoor temple or Andhra Pradesh with the Tirupati temple authorities. Although unrelated, in New Delhi too, the Escorts Heart Institute was in the spotlight following a family tug-of-war. And as a consequence, issues related to corporatisation of charitable institutions and control of the hospital's funds came to the fore. An indication that the last word is far from heard on charitable institutions per se and who will control their kitty.

Meeting with Law Minister today

A DELEGATION comprising representatives from IMC and AoH, besides other parties likely to be affected, are scheduled to meet the Law Minister, Mr Govindrao Adik, on Monday. They will seek more clarity on the State Law Commission's recent report, besides urging restraint on its implementation, IMC top-brass said.

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