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New Delhi, July 21 The Supreme Court on Thursday set aside the directions passed by the Madhya Pradesh High Court for a probe by Economic Offences Wing (EOW) against the trustees of Khasgi (Devi Ahilyabai Holkar Charities) Trust, Indore, where two of the trustee are daughter and son-in-law of late Yashwant Rao Holkar, Maharaja of Indore, who was the great-great grandson of Devi Ahilyabai Holkar.A bench of Justices A.M. Khanwilkar, Abhay S. Oka, and C.T. Ravikumar said: "The direction issued by the High Court proceeds on the erroneous assumption that the Trustees have made misappropriation of the government properties. There is no offence registered against the Trustees. Hence, Economic Offences Wing cannot be directed to hold an inquiry or investigation in connection with the subject matter of this proceeding."It noted that there was no warrant to direct inquiry through the EOW of the state government as there is no finding that there was mens rea on the part of the trustees. "No finding has been recorded by the high court based on material that the alienation made by the trustees has resulted in causing loss to the Trust and that the entire sale consideration being diverted for personal use," said the bench.The top court also put to rest the issue of ownership of the 246 properties that was subject matter of the litigation. Since 2012, the Khasgi Trust, has been embroiled in contentious litigation over the ownership of the 246 properties which was held by the Registrar of the Public Trusts which asserted that the ownership lies with the Madhya Pradesh.A single judge of the high court set aside the order of the Registrar of Public Trusts. The state government challenged this order before the division bench of the high court, and it, in October 2020, held that the ownership of the properties lies with Madhya Pradesh.It further directed the EOW to conduct a detailed investigation into the matter and take appropriate steps regarding sale and creation of third-party rights of some of the properties. The Khasgi Trust moved the apex court challenging this high court order.The top court said: "We hold that the direction issued by the high court to the Economic Offences Wing of the State Government to hold an inquiry was not warranted."However, partially allowing the appeals, it held that though the trust was owner of 246 properties, however Section 14 of the Madhya Pradesh Public Trust Act, 1951 will be applicable to the trust which simply states that prior permission of the Registrar, Public Trusts would be required in case of sale etc. of the property belonging to the public trust."Direct the Trustees to get the Khasgi Trust registered under the Public Trusts Act by making the necessary application within a period of one month from today. We hold that the properties described in Part 'B' of the Schedule to the trust deed, are properties of the said public trust. However, alienation of the said properties can be made only by taking recourse to Section 14 of the Public Trusts Act," said the bench, in its 71-page judgment.The top court also directed the Registrar, Public Trusts to hold a fresh enquiry into the sale of the properties sold by the Trust to ascertain, if by virtue of alienation made by trustees, any loss was caused to the public trust and to take necessary action in this regard.The Khasgi (Devi Ahilyabai Holkar Charities) Trust, Indore was represented by senior advocates Mukul Rohatgi, Dr. Abhishek Manu Singhvi, Amit Desai, and assisted by the team from Karanjawala and Co. led by advocate Ruby Singh Ahuja.Disclaimer: This post has been auto-published from an agency feed without any modifications to the text and has not been reviewed by an editor

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