Chennai: The Madras High Court has directed the Registrar of Companies to inquire into allegations of misuse of the assets of the Church of South India (CSI) Trust Association that has properties worth several trillions of rupees across southern India.
In his order, Justice R Mahadevan directed the registrar to conduct the inquiry strictly in accordance with law by giving the church association an opportunity to be heard between February 17 and 22. The Court also asked the registrar to file a detailed report with the federal Ministry of Corporate Affairs for deciding further course of action in two weeks.
Since the inquiry against the church association had not proceeded swiftly since 2011, the court has directed the federal government to take a call on the issue within three weeks after receiving the registrar’s report. In the order, the Court said, any further delay would be viewed seriously, the judge ordered departmental action against those responsible for the delay in the last 10 years.
In the order, it was stated CSI was a religious organisation inaugurated on September 26, 1947, pursuant to an agreement reached between Protestant churches of different traditions such as Anglican, Methodist, Presbyterian and Congregational. There were 24 dioceses under the CSI, the largest congregation of Protestant churches in Asia.
The church association was a registered company under the Companies Act and held the properties of CSI as a trustee. However, there were serious allegations such as unwarranted use of rent-free bungalows, luxury cars and free world tours by Bishops attached to some of the diocese by utilizing the money meant for charity. Many criminal cases had also been filed.
On the basis of a report filed by the Registrar of Companies in January 2016, the Centre ordered a probe by the Serious Fraud Investigation Office, in June 2016. In November 2017, the High Court in Hyderabad set aside the order and remitted the matter to the Centre for fresh consideration. Subsequently, the Centre took a similar decision in May 2018.
Following which, CSITA and its office-bearer have approached the Madras High Court in 2019, challenging the ROC’s December 2017 report, based on which the Centre took the May 2018 decision. Agreeing that principles of natural justice had not been followed scrupulously, the judge ordered that the Registrar’s report must be treated as a show cause notice.
https://www.business-standard.com/article/companies/madras-hc-asks-roc-to-probe-church-of-south-india-over-misuse-of-assets-121020201162_1.html