The Supreme Court on July 22, 2022 in the case of Khasgi (Devi Ahilyabai Holkar Charities) Trust Indore v. Vipin Dhanaitkar observed that a trust property cannot be alienated unless it is for the benefit of the Trust and/or its beneficiaries. The Trustees are not expected to deal with the Trust property, as if it is their private property. It is the legal obligation of the Trustees to administer the Trust and to give effect to the objects of the Trust.

In the instant matter, one of the issues raised in the appeal was whether the provisions of the Public Trusts Act apply to the Khasgi Trust. The court noted that the trust was created with the object of preservation and maintenance of the Trust properties which are charities and endowments. Thus, the court observed that the Khasgi Trust, is an express Trust for public, religious and charitable purposes. Under Section 4(1) of the Public Trusts Act, every such Trust requires compulsory registration. The court noted that all the alienations made by the Trustees of Khasgi Trust except one have been made without complying with the mandatory requirement of obtaining the previous sanction as required by sub Section (1) of Section 14. The Supreme Court, therefore, directed the Registrar under the Public Trusts Act, to conduct necessary investigations into such alienation of properties of Khasgi Trust.