Chapter- I

Research Design: Introduction Chapter -1 Research design: Introduction

Chapter Title of the Chapter No Part-I 1.1 Review of literature 1.2 Review of legislation 1.3 Chapter Scheme 1.4 References

Part-II

11.1 Research Methodology

11.2 Primary Data

11.3 Secondary Data

11.4 Importance of study

11.5 Scope and aim of the study

11.6 Limitations of the study

11.7 Reference period of primary data collection

11.8 Objectives of the study

11.9 Hypothesis of the study Chapter I - Research Design

Introduction :

Administration is the force which lays down the object for which an organization and its management strive and the broad policies under which they are to operate. The term Administration is used mostly in Government or Public Sector.

Administration is the function in industry concern in the determination of policy, co-ordination of finance, production and distribution, the settlement of the compass of the organization and the ultimate control of the two executives.

The Science of Business Administration has gradually evolved with the Growth of trade, commerce and industry. Prior to industrial revolution, (which took place some time in the middle of the IS**^ Century.) the scope of Business Administration was limited due to self sufficient economy. But after the Industrial Revolution, the concept of business was totally changed and factory system is developed very drastically. At beginning of the 20*^ Century, the Business Administration evolved and stood in more clearly defined position than ever before. Today in the 21^^ Century Business Administration is emerging as the directing force of Industries, Institutes and Sansthas. In the era of Globalization it becomes a very key factor for the success or failure of any business.

Administration is beneficial to each and every aspect of business activities. There are various special branches of administration i.e. financial administration etc.

The great Indian philosopher of ancient , Kautilya, wrote ''All undertakings depend upon finance. Hence keen attention shall be paid to the treasury. Finance is the core of administration and unsound financial administration may blast the prospect of running business Institute or charitable trust. Financial administration becomes an inseparable part from every walk of life

The administration of a business consists of the performance or management of business operations and thus the making or implementing of a major decision. Administration can be defined as the universal process of organizing people and resources efficiently so as to direct activities toward common goals and objective.

Financial Administration:

In the developed countries where the market is vagaries in nature, for it has led to an enlarged scope of financial administration, which is for deficit budget, massive public debt and deficit financing.

In the developing countries where the government has assumed the role of facilitator of development, the financial management has played vital role for determining the fiscal policies and also for the administration of the set up of multiple objectives such as stability, development, self reliance, reduction in interpersonal inequalities in income and wealth and balanced regional development.

These countries also utilize the same instrument of action. Even though political ideologies, or economic doctrines are in crucial position in management of the affairs of the state. There are certain fundamental objectives of financial administration which are as follows.

Management of the finances of individual household. Implementation of projects and programs. Provision for public goods and social services. Growth, employment and price stability Capital formation Achievement of equity and equality. 1. Management of the finances of individual household :

As in an individual household, the public authorities are concerned with the satisfaction of human wants and their major problem is to ensure the best application of limited means to secure given ends.

In the context, a financial manager focuses his or her attention on mobilization of resources and their rational deployment in conformity of the rising expectations of the people.

2. Implementation of Projects and Programs :

The financial administration related to ensuring optimal public investment decisions through project formulation, appraisal and implementation.

The emphasis has shifted from expenditure control to implementation of projects within the stipulated time schedule and expenditure ceiling.

3. Provision of public good and social service: Provision of public goods like public parks, social services like public health, sanitation cannot be left to the private sector which is motivated by profit rather than service to the people.

Hence budgetary support for such services becomes a legitimate concern for fiscal policy makers.

4. Growth, Employment and Price Stability:

Now-a-days the present Government is expected to focus attention on socially desired rate of economic growth, i.e. high employment and a reasonable degree of price level stability. Achievement of these objectives cannot come about automatically. There is need for policy initiatives on the part of public authorities.

5. Capital fornnation: Economic development of a nation, to a great extent, depends upon the capital formation through increased savings. No amount of State's coercive power can achieve this objective.

Appropriate financial and fiscal measures such as discriminatory taxation and monetary policy in instruments may be employed to accomplish the objectives.

6. Achievement of equity and equality :

The distribution of income and wealth depends upon the distribution of factors through the market mechanism. It also depends upon the transmission of property rights through inheritance as well as personal earning ability.

Equity however has to be achieved through an evolutionary process without giving scope for class conflicts and large scale violence.

There should be a progressive reduction in the concentration of economic power. At the same time equal opportunities for every one in every sphere will have to insure non - occurrence of fresh inequalities.

To some of, the objective of financial administration can broadly categorized as stability, equity and growth and the effect of these objectives is very important to bring about socio - economic transformation in a desirable direction. Part-I -

1.1 Review of Literature 1. Smt. Ramadevi (1982) a Researcher (Department of Public Administration, S. V. University, Andhra Pradesh) submitted her Research Thesis on Tirupati Tirumala Tirupati Devasthan (T.T.D.) The objective of study included critical examination of the structure of T.T.D. Administration, organizational set up, administrative procedure and other related aspects.

The main source of information was documentary analysis. The study found that the income of the temple had almost incredibly rose from Rs.10.99 cores to Rs 18.50 cores during the period 1970 to 1980. The total receipt of the T.T.D. was Rs 18.58 crore during 1979 to 1987 where the expenditure for the above mentioned period was Rs 13.58 crore.

The activities of the T.T.D. were not basically commercial in nature but were religious in character. The study suggested few effective steps for security and safety of the pilgrims from the unsocial element.

2. Mr.Sathi A.B.(1994) another Researcher (Department of Commerce S. V. University, Andhra Pradesh) submitted his study report on Income and Expenditure of Tirumala Tirupati Devasthan (T.T.D.) for the periods from 1984-85 to 1994-95.

The objective of study was to analyze the composition and behavior of the income and expenditure of (T.T.D.), and to suggest the improvement in the working of T.T.D. This analysis was related to revenue receipts only. The study gave the brief notes on the T.T.D. administration, its accounts procedure and budgetary pattern.

The study suggested a suitable revision of charges for" Arjitha Sevas." It suggested that there should be a proper evaluation of work load requirement of regular and temporary employees, the period of employment in order to reduce the salary bill and increase total surplus. 3. Mr. Subhash Jagannath Deshmukh -(2006) (Yashvantrao Chavan Open University, Nasik) has highlighted; Infrastructural developments Contributed by the Registered Religious Public Trust in Taluka for the period from the year 2001 to 2006.

He has also focused on the role of Religious Trust in development of infrastructure particularly Road & Water Supply. He has concluded in his research paper that the trusts should Increase their income, more attention be provided towards Infrastructural Investment, priority be fixed towards investment projects, basic facilities be provided to the devotees.

He has recommended that, proper co-ordination is essential. Rural entrepreneurs should be engaged for the development. Involvement of local citizens, traders, businessmen, devotees are essential. He also suggested that out of the total income, at least minimum 50% of amount should spend for infrastructural development. 4. Mr.Vikas Godhaji Antre (2008):

He has focused on Economical development of Tourist centre in District in his research paper for the period 2004 to 2008. He has studied mostly four prominent religious trusts of namely, Shani Shinganapur, Sonai MohataDevastan, Pathardi, Shri.Sai Baba Sansthan, KanifnathDevisthan, Madhi.

The study also focused on the contribution of religious trust in social development of area. He has quoted his observations as

Lack of management and planning. Political interference in designing policies. Insufficient facilities provided to the devotees. He further strongly recommends to take proper steps to make sufficient facilities, the annual reports of the trust should also be published in the interest of Devotees.

5. Mr. Ravindra Nalawade (2009) A study on administration and the working of Public Charitable Trust in Pune City was done for the period from the year 2009. The study focuses on the administration and working of selected Public Charitable Trust in Pune City and the role of public charitable trust as vehicle of social change and social mobilization. It has suggested that charitable trusts plays important role in education, social & medical activities for society and trusts activities should be involved in the nation building to forge national unity and proper integrants

6 .Mr. Mohan Yadav, (2010) Public Relation Officer of Shri Sai Baba Sansthan, Shirdi published an article on 28.01.2010 wherein he has mentioned the steps taken up towards future projects by Shri Sai Baba Sansthan Shirdi. He has also brought out in his articles, the facilities provided by Shri Sai Baba Sansthan Shirdi to the pilgrims. They are as follows;

1) Sai Ashram 100 crores

2) Bus stand 8 crores

3) Super specialty hospital 70 crores

4) Sai Garden 40 crores

5) Airport —

7. Dr. P R. Velapure (2007) has submitted his Research Thesis on ''Business Management of Devasthan of various holy places in Maharashatra." He has covered almost 25 prominent Devasthan's some of them are, • Gajanan Maharaj Mandir, Shegaon, • Vitthal Rukmini Mandir, Pandharpur, • SiddhiVinayak Ganpati Mandir, Mumbai

He has focused on the area of personnel management, financial management, the administrationorganization of Devasthan. He has highlighted the following points ; a) These are registered trusts & the main aims of them are to perform religious activities, to provide sufficient amenities to devotees & safeguard the assets and property. b) There is huge number of manpower in the services of the trusts. c) Uncountable devotees and visitors visit the Devasthans. d) These trusts book value of assets is more than Rs. 1400 crore e) These trust's annual revenue receipts are around Rs. 32.28 crore per year. f) Their annual expenditure is around Rs.29.53 crore per year. g) Tremendous financial turnover took place around the area of devasthan.

Taking into consideration the above situation the researcher has suggested and recommended that,

1. Special provisions in the Act for recruiting the trustees be made according to the devotion and social work of the members and free from politics.

2. Representation of around 50% should be reserved to the devotees on the Board of the trustee. 3. Clarity among the official authorities should be determined and further the duties and responsibilities should be demarked.

4. An international, national and regional level of organization required to be set up for the vy/ellbeing of these trusts.

8. Mr.Sukhtankar D.M. (2010) (Ex. Chief Secretary to the Govt, of ) had recently published his article in 'loksatta "on 30*^ May 2010 ''on the issue whether the management of Registered Religious Public Trust in the State of Maharashtra be controlled by the Government."

He has highlighted some of his observations and raised the questions; i) Why for the Management of only Hindu Temples be controlled?

11) Why the Gurudwara , Majjids , Churches, the temples of Buddha and Jain are exempted? iii) Whether the misappropriation or corruption is only in Hindu Temples not in other religious temples?

He has pointed out that the Richest Trusts like Shri Sai Baba Sansthan Shirdi Trust, the Siddhi Vinayak Trust, had already been brought under the control of government.

He has questioned Even in this situation, whether the business of above two trusts are alright? On this background he has suggested and recommended that, it would not be proper on the part of Government to take any kind of new responsibilities upon its shoulder. He further suggested that before making any legislation in this regard Govt, may publically discuss and call the recommendations, opinions and suggestions on this issue. He has further advised to the authorities of Govt, of Maharashtra not to hesitate to take any stern decision.

10 9. Dr. Madhav Godbole: (2011) (Ex. Chief Secretary to the Union and State Government of Maharashtra).

He has published his article in "Loksatta" and reacted on the decision declared by the Law and Judiciary Minister regarding'' to control over the Registered Religious Trusts in Maharashtra."

He has mentioned in his article that according to the Indian constitution there should be a wall between government and the religion. He has said that according to Indian constitution Government should not discriminate among the people on religious basis. He further warned that if Government decided to acquire the Hindu Temples under the control of Govt., then it is the prime responsibility of the Govt, to take over the charge of Majjids, Vihars, Gurudwara , Churches. There after it would be the Government's duty to administer and run the business of these religious trusts. He questioned when Govt, is discharging its own responsibility throughout sourcing in every sector, then why the responsibility of registered religious trusts of Hindus has been taken up by the Govt.?

He has further warned to the Govt, that if this kind of discrimination is made then Govt, has to face to the public. If this kind of decision is taken then the responsibility of capital as well as repair and maintenance expenditure also be taken up by the Govt. The action of Govt, would be contradictory to the Indian Constitution. 10. Dr.Jayant Salgaonkar: (2011) An eminent newspaper writer has commented in" Reputed News Paper Loksatta." on the decision of Govt, to take over the charge of Hindu Temples under the control of Govt, of Maharashtra.

He has pointed out that Govt, has no authentic information about the Hindu Temples in Maharashtra. It is said that, there are around two lakh temples, but in fact the numbers of prominent Temples in Maharashtra

11 would not be more than two hundred. Now during these days if income and expenditure are taken into account, there would not be much more balance in individual temples account. If Govt, takes the above decision then the employees of these Temples would be the Govt, employees and they have to be paid as per Govt, rules. Naturally the expenditure will increase and the responsibility would have to be borne by the Govt. Therefore he has suggested that it is not the responsibility of Govt, to look into the daily matter of administration of religious trusts and temples. This job should be kept as per the present code of conduct. Hence, Govt, should not interfere in the religious matter.

11. Dainik Sarwamat (2009) a leading daily news paper of Ahmednagar District, published special edition on Monday 26*^ January 2009 (page no 8) the history of Sai Baba. The historical places in Shirdi e.g. Dwarkamai, Lendibag , etc. The Principles of Sai Baba, messages from Sai Baba, Sai Baba's miracles, are also published for the information of devotees.

12 1.2 Review of Legislation : - Other-

Statutory provision of Public Trust / Religious Trust

1. Societies Registration Act 1860 : Initially the Societies Registration Act 1860 was enacted for improving the legal condition of societies established for the promotion of literature, science or the fine arts, or for the dissemination of useful knowledge or for charitable purposes.

Any seven persons or more than that associated for any literacy, scientific or charitable purpose or for any such purpose as is described in section 20 of this Act form themselves into a society under this Act.

Thereafter the Religious Endowment Act 1863 was made applicable to the temples and hermitages.

2. Religious Endowment Act 1863 : This Act was made applicable to the Temples & hermitages in North Kama . Those societies purely engaged in religious and charitable work, registered under the Religious Endowment Act 1863. 3. Indian Trust Act 1882 : The Indian Trusts Act come into force on the 1^^ day of March 1882. It extends the whole India except the State of Jammu and Kashmir. This Act covers the subject of private trusts, purports to define and amend the law relating to such trusts. Religious or Charitable endowments are excluded from the operation of the Indian Trust Act.

4. Tirumala Tirupati Devasthan Act 1932 : The aforesaid Act was followed in 1933 by a special Act in 1951. The administration of Tirumala Tirupati Temple was under the control of the Andhra Pradesh State Government.

13 5. Bombay Public trust Act 1950 : This Act was passed to regulate and make better provision for the administration of public religious and charitable trust in the state of Maharashtra (then Bombay)

6. The Trust Act for Gujarat State : The Bombay Public Trust Act 1950 was also applicable to the state of Gujarat up to the year 1960 when the erstwhile Bombay province was bifurcated into Maharashtra & Gujarat in 1960, both the States adopted the very law to govern the trust and other charitable institutions falling in their jurisdiction.

7. Shree Siddhi Vinayak Ganpati Temple trust (PrabhadevI) Act, 1979 : The Government of Maharashtra after considering the importance and popularity of the trust enacted a separate law to reconstitute the trust and to provide for management by a committee directly under Government supervision to enable the trust to give more facilities for the devotees and to undertake wider welfare activities from its surplus funds for general public.

8. The Pandharpur Temples Act, 1973 : The Pandharpur Temples Act,1973 was enacted 3'^'^ April 1974 to provide the better administration and governance of these temples their endowments and the amalgamation of the trusts and to provide for matters connected which the purposes mentioned in the earlier Act. Further the Act is also amended in the year 1975 and 1979 respectively.

9. The Shri Sal Baba Sansthan Trust (Shirdi) Act.2004 : The Maharashtra Government has enacted a separate Act in 2004 known as Maharashtra Act. No. XIV of 2004 . The Act received the assent of the government on the 14^*^ August 2004. To re-constitute a public trust of Shri Sai Baba Sansthan Shirdi, registered under Bombay Public Trust Act 1950 under the name ''Shirdi Sansthan of Shri Sai Baba at Shirdi, District Ahmednagar," to provide the better management, administration.

14 governance and control the trust to undertake wider welfare activities for public.

The government of Maharashtra has re-constituted the Sai Baba Sansthan Trust taking into consideration large properties, the trust's popularity and the number of devotees all over India and abroad and also to avoid litigation and to provide for efficient management of the same by a committee directly under the supervision and control of the state government and to enable the trust to give more facilities for its devotees and to undertake wider welfare activities from its surplus funds for general public law/act.

The above mentioned law has 35 Sections a. Section 5 related for constitution of committee of management of Shri Sai Baba Sansthan Trust, Shirdi. b. Section 13, 14 related for provisions for executive officer and other of committee and duties of officer of committee. c. Section 17 has provision duties and power of committee. d. Section 20, 21, 22 has details about trust fund utilization of trust.

1.3 Chapter Scheme:

The Thesis consists of seven chapters, they are as follows:

Chapter 1

The chapter has been divided in two parts.

First Part is connected with the past literature and legislation regarding public trust.

Second Part is related with the Research Methodology of the research.

Chapter 2

This chapter briefly covered the information of Registered Religious Public Trusts in India and preferably in the State of Maharashtra.

15 Chapter 3

This chapter has detailed about Registered Religious Public Trusts in Ahmednagar District.

Chapter 4

This chapter presents a comprehensive detailed Profile of Shri. Sai Baba Sansthan, Shirdi.

Chapter 5

This chapter presents a brief summary about acquisition and utilization of funds by Sai Baba Sansthan Shirdi for the period of five years i. e. from the year 2000 to 2005.

Acquisition of funds includes the different sources of income, increase in liabilities and decrease in assets for the specific period.

In the utilization of funds it focuses on the various types of expenditure and funds used for the different purpose and objects of the trust.

Chapter 6

This chapter is devoted to the detailed analysis and interpretation of financial administration particularly acquisition and utilization of funds by Sai Baba Sansthan, Shirdi.

Chapter 7

This chapter presents a brief summary of the study and contained the conclusions on the basis of different tables, charts and field work carried out. It also gives recommendations on the basis of conclusions. The study will open new avenues of research in the field.

16 Chapter-1

Part II

II. 1 Research Methodology of the study:

The approach of the study of financial administration of Sai Baba Sansthan, Shirdi is related to the acquisition and utilization of funds for the period from the year 2000 to 2005.

The study is based on both the Primary and Secondary data. The required information is collected through following sources.

II. 2 Primary Data:

A. Informal Discussion: For gaining deeper information into the topics of investigation the researcher relied on informal discussion. The researcher discussed with; a. The Joint Charity Commissioner of Ahmednagar, b. The President of Shri Sai Baba Sansthan, Shirdi. c. The Chief Executive Officer of Shri Sai Baba Sansthan, Shirdi. d. The Administrative officer of Shri Sai Baba Sansthan, Shirdi.

The researcher has discussed with the above mentioned dignitaries regarding the administration of acquisition of fund and the utilization of fund, according to the statutory provision of Bombay Public Trust Act.

B. Interview: The information regarding statutory provision according to Bombay Public Trust Act. 1950 relating to acquisition and utilization of fund was collected through interview of the Joint Charity Commissioner of Ahmednagar Zone. The information regarding the acquisition and utilization of fund was also collected through the office bearers of Shri Sai Baba Sansthan, Shirdi.

17 II. 3 Secondary data:

For discussion of the theoretical aspects of the topic, the researcher has intensively used a. Books, b. Journals, c. Periodicals, d. News papers e. Annual reports f. Published & Unpublished documents of private and public institutions, g. Trust gazettes h. Annual report by Shri Sai Baba Sansthan Shirdi i. Websites

II. 4 Importance of study:

The present study is most significant because it throws light on many important aspects related to the Registered Religious Public Trust. Specially Shri Sai Baba Sansthan, Shirdi. Nowadays this Holy place has become the global centre for devotees.

This Religious Public Trust is playing very important role for religion and society. This area is totally neglected for research and has remained unexplored. It was with a view to fill up the gap. The present study will certainly prove to be one of the major contributions to the area of Charitable Trust.

18 11.5 Scope of the Study -

• The study pertains to the Sai Baba Sansthan, Shirdi in Ahmednagar District of Maharashtra • Financial analysis is related to Acquisition and Utilization of funds by Sai Baba Sansthan, Shirdi.

• The study is for a period of five years i.e. FY 2000 to FY 2005.

II. 6 Limitations of Study -

It specially covers the study of financial administration of funds by Shri Sai Baba Sansthan, Shirdi only.

• The study is limited to the span of five years i.e. from FY 2000 to FY 2005.

• The study covers only the acquisition and utilization of the funds of Shri. Sai Baba Sansthan, Shirdi in particular and

The study of , (Sonai), & Devsthan, Madhi, Pathardi) in general

II. 7 Reference Period of Primary Data Collection:

The reference period for the primary data is confined to a period of one financial year. For this study the investigation period was of five years i.e. from the years 2000 to 2005.

19 11. 8 Objectives of study : 1.

1. To study the origin and development of registered religious public trusts in India.

2. To study the administrative rules regarding acquisition of funds by

religious trusts, which are prescribed by the Indian Trust Act 1882

and Bombay Public Trust Act 1950

3. To study the origin and development of Sai Baba Sansthan, Shirdi, the registered religious public trusts Ahmednagar District in the State of Maharashtra.

4. To Study the various sources of funds by Sai Baba Sansthan, Shirdi,

5. To observe the acquisition of funds by Sai Baba Sansthan Shirdi, for the year FY 2000 to FY 2005.

6. To observe the utilization of funds by Sai Baba Sansthan, Shirdi, for the year 2000 to 2005)

7. To Study the impact of functioning of the Sai Baba Sansthan, Shirdi on the Regional Development, mostly in the sector of Health Education and Infrastructure.

8. To Study the monitoring mechanism of Charity Commissioner regarding the acquisition and utilization of funds by registered religious public trusts.

9. To suggest measures for improving the acquisition and utilization of funds by public trusts

20 11.9 Hypothesis:

1. Donations (in different kinds) offered by devotees is the main source of Funds of Sai Baba Sansthan Shirdi, of Ahmednagar District.

2. The Sai Baba Sansthan Shirdi, follows all the regulations prescribed by the act regarding Acquisition of funds.

3. The Sai Baba Sansthan Shirdi, follows all the regulations prescribed by the act regarding Utilization of funds.

21 1.4. References:

1. Smt.Ramadevi: a Researcher (Department of Public Administration, S. V. University, Andhra Pradesh) ,(1982) 2. {Mr. Sathi A.B : a Researcher (Department of Commerce S. V. University, Andhra Pradesh) (1994) 3. Mr. Ravindra Nalawade : A study on administration and the working of Public Charitable Trust in Pune city (2009) 4. Mr.Subhash Jagannath Deshmukh : Yashvantrao Chavan Open University, Nashik (2006) 5. Mr.Vikas Godhaji Antre (2008) : focused his research paper on Economical development of Tourist centre in A'nagar District 6. Mr. Mohan Yadav : Public Relation Officer of Sai Baba Sansthan Shirdi (2010) 7. Dr. P R. Velapure : Research Thesis on'' Business Management of Devsthan of various holy places in Maharashatra. (2007) 8. Mr.Sukhtankar D.M : (Ex. Chief Secretary to the Govt, of Maharashtra) (2010) 9. Dr. Madhav Godbote: (Ex. Chief Secretary to the Union and State Government of Maharashtra). (2011) 10. Dr.Jayant Salgaonkar: An eminent news paper writer His comments in Loksatta, regarding Govt, decision (2011)

11. Dainik Sarwamat: a leading daily news paper of Ahmednagar

District

21b