RCA Seeks Public Trust Registration For Tax Exemption, Opposition Questions Legality

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newspoint|13-03-2026

According to documents submitted to the department, RCA Ad-hoc Committee Convenor Deendayal Kumawat has filed an application seeking to register the cricket body as a public trust under the Rajasthan Public Trusts Act, 1959, naming himself as the acting or principal trustee.

Speaking to IANS, Kumawat said the application was submitted primarily to obtain tax exemptions. He said the move followed a notice issued by the Income Tax Department on February 19, asking why the RCA had not registered under the state’s public trust law despite presenting itself as a charitable organisation.

The notice reportedly pointed out that the RCA was not administered by any authority under the control of the state government and had not been granted tax exemption through any specific notification. It advised the Association to register under the Rajasthan Public Trusts Act, 1959, if it intended to claim benefits available to charitable institutions under the Income Tax Act, 1961.

Kumawat also cited directions of the Supreme Court, stating that societies, trusts and NGOs seeking income tax exemptions under Sections 12 and 80G must obtain registration with the relevant authority, such as the Charity Commissioner.

He said that since such a regulatory framework exists in Rajasthan through the Devasthan Department, registration was necessary for the RCA to claim tax benefits.

However, the development has triggered a political and legal debate, with critics arguing that the RCA -- an elected, member-based sports body -- cannot be converted into a trust without approval from its General Body and other statutory authorities.

Sources said the issue could also have financial implications. The Board of Control for Cricket in India (BCCI) reportedly has dues of around Rs 65 crore payable to the RCA. Experts say that if the Association is not treated as a charitable entity, nearly Rs 20 crore could be levied as tax on the funds once they are disbursed.

Leader of Opposition Tikaram Jully raised the issue in the Rajasthan Assembly, questioning how an ad-hoc committee -- meant to be a temporary arrangement -- could take a decision that may fundamentally alter the structure of the association.

"The Rajasthan Cricket Association can be governed only by its General Body, which alone has the authority to make decisions regarding its structure, assets or existence. Deendayal Kumawat had applied to register the RCA as a public trust under the Rajasthan Public Trusts Act, 1959, while declaring himself acting trustee and listing RCA assets as trust property. This move is illegal and beyond jurisdiction, as a cooperative society cannot be converted into a trust without dissolution and approvals."

Leader of Opposition Tikaram Jully raised the issue in the Rajasthan Assembly, questioning how an ad-hoc committee -- meant to be a temporary arrangement -- could take a decision that may fundamentally alter the structure of the association.

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Speaking to IANS, Jully also questioned whether the development reflected proper sports administration or political interference, and sought clarity from the state government on the issue.

Article Source: IANS