3 Answers
Dear Sir,
Regarding your idea of forming a new trust: you are free to create a charitable trust under the Indian Trusts Act, 1882 (for private trusts) or as a public charitable trust under state law. You can also seek tax registrations like 12A and 80G. However, you cannot simply shift the old society’s property into the new trust unless the transfer is legally valid and authorized. Since the society is effectively defunct, the correct legal route is not informal conversion, but a structured process.
Dear Client,
Under Tamil Nadu and general Indian law, a defunct registered society and a new trust are separate legal entities, so you cannot simply “convert” the old society into a trust just by starting a new trust deed at the same address. Instead, the old society (if still registered but inactive for decades) may be treated as defunct, and its assets should be wound up or clarified by the Registrar of Societies or court, after which the land can be transferred to a new public/private trust only by a proper registered conveyance or settlement deed (gift/sale), not by mere resolution or internal decision. If the patta is now in your father’s name through heir‑certificate, he can legally donate or transfer the land to the new trust by a registered gift/sale‑deed and subsequent mutation, and then the trust can seek 12A & 80G registrations. However, if the land still stands only in the society’s name, you must first ensure the society is formally closed and its property‑disposal sanctioned (often via court/Registrar), because direct self‑transfer without lawful procedure can later be challenged and may be treated as invalid or as concealment of title.
In your case, the safest next step is to collect all papers (1968 society‑deed, 1975 registration, 1996 Nathan‑patta, all heir‑certificates, EB/tax‑receipts, and by‑laws) and go with them to a local civil/property‑law advocate in Cuddalore or Chennai, so he can examine whether the society is legally defunct, whether the title truly vests in your father, and then draft a clear, court/BIR‑compliant scheme for transferring the land to your new trust (with 12A/80G‑compliant structure) without committing any offence or creating future title‑disputes, and advise on stamp‑duty, registration, and mutation requirements under Tamil Nadu law.
I hope this helps and if you have any further issues do not hesitate to contact us.
Your father does not automatically become the owner of the society property merely as the legal heir, because the property legally belongs to the registered society and not to individual members. You may legally create a new Public Charitable Trust at the same address and continue the social service activities with proper 12A and 80G registrations. However, the existing society property should not be directly treated as personal family property or transferred to the trust without legal regularization. First, verify the society status with the District Registrar, issue a public notice regarding deceased/untraceable members, and then seek proper dissolution or court approval for transfer of assets. Patta transfer alone is not conclusive proof of ownership. It is advisable to proceed through a civil lawyer experienced in Tamil Nadu society and trust laws to avoid future disputes or allegations regarding charitable property.