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Thursday, August 27, 2026







Govt Policies Do Not Reach the People

Why?

Information Deficiency, Selective Perception and the Failure of Public Communication


- Y Babji, Advocate / PR Educator


A government may formulate an excellent policy, launch a well-designed programme, issue detailed rules and spend substantial public money on implementation. Yet the intended benefit may not reach the intended beneficiary. The reasons may be poor implementation, corruption or administrative apathy. But there is another, less visible reason i.e. the information about the policy itself may not reach people in a manner they understand, remember and act upon.

The problem becomes more serious when people receive only fragments of information, interpret them according to their interests and ignore the conditions attached to the benefit. This can be explained through two important communication concepts: (1) Information Deficiency and (2) Selective Perception.

The Hyderabad warning

The recent collapse of a seven-storey under-construction building at Anjaiah Nagar in the Gachibowli–Kondapur area of Hyderabad illustrates the problem. The unauthorised building stood on a very small plot of about 50 square yards and the collapse resulted in the deaths of two workers. Following the incident, HYDRAA and the Cyberabad Municipal Corporation intensified enforcement against unauthorised constructions. In one drive, CMC identified 38 unauthorised under-construction buildings, issued notices and demolished several structures. It subsequently identified many more. Reports also indicated that more than 800 unauthorised constructions had been identified across CMC's three zones over the preceding year.

The episode raises a larger question: Why do government rules, permissions, exemptions and safety requirements fail to influence behaviour before a tragedy occurs?

Information Deficiency: Publication is not Communication

Information deficiency does not necessarily mean that the government has failed to publish information. Today, governments have websites, portals, notifications, FAQs, advertisements, apps and social-media platforms. But publication by itself is not communication.

A rule hidden in a Government Order or technical regulation is not necessarily useful information for an ordinary citizen. For information to become meaningful, the citizen must know that the rule exists, understand that it applies to him, know what he can and cannot do, understand the consequences of violation and know where to seek clarification. Failure at any of these stages creates an information deficit.

The Small-plot Exemption: what does the citizen actually understand?

The Hyderabad building controversy is particularly relevant to the exemption relating to small residential plots. The Telangana government's TG-bPASS information provides that, subject to applicable conditions, residential plots up to 75 square yards may have exemption from building-permission approval for ground or ground-plus-one construction, while registration is required. For larger individual residential buildings, instant approval is available within specified plot-area and height limits. The distinction is crucial.

The public may hear: "Up to 75 square yards, no building permission is required."

But the actual message is much narrower: "Specified residential construction, subject to registration and applicable building rules, may not require building-permission approval."

The first statement can easily be interpreted as an unlimited exemption.

Similarly, a 7-metre height provision does not mean that a 75-square-yard plot is entitled to seven floors. Following the Anjaiah Nagar incident, enforcement specifically targeted buildings on plots below 75 square yards where construction exceeded 7 metres.

Thus, plot size, number of floors, height, permission, registration and structural safety must be communicated together. Communicating only one element can produce dangerous misunderstanding.

Selective Perception

Information deficiency explains why people may not know the complete rule. Selective perception explains why they may remember only the part that suits them.

People do not receive every message objectively. They select information according to their interests, expectations, experience and immediate needs.

A property owner may remember: "No permission below 75 square yards."

But forget: "Only specified G/G+1 construction, subject to applicable rules."

A builder may remember the permissible height but disregard setbacks, structural safety, road width, drainage, parking and land-use requirements.

A tenant may see a cheap seven-storey accommodation facility and assume that its existence proves government approval.

Thus selective perception operates on both sides i.e. the person constructing and the person occupying the building.

Building rules are Life-safety rules

Building regulations are not merely bureaucratic requirements for obtaining permission. They are fundamentally life-safety regulations.

Telangana's building rules prescribe different requirements relating to plot size, road width, permissible height, setbacks and parking. Restrictions also apply to projections such as balconies and corridors into mandatory open spaces. Parking requirements vary according to the nature and size of the development.

High-rise construction is subject to an entirely different regulatory regime. The rules prescribe, among other requirements, a minimum plot size of 2,000 square metres for high-rise buildings, together with structural drawings, qualified structural-engineer certification and other safety requirements.

Therefore, a small-plot exemption cannot reasonably be interpreted as permission to convert a tiny residential plot into a miniature high-rise.

Nor is height the only safety consideration. Foundation design, soil conditions, columns and beams, construction materials, load calculations, setbacks, ventilation, emergency access, fire safety, drainage, road width, parking, land use, encroachment on nalas or water bodies, approved plans and compliance with the sanctioned plan are all relevant. TG-bPASS also provides for structural proof checking and applicable NOCs. Self-certification is not a licence to violate the rules; it is a declaration of conformity with the applicable regulations.

More Information can sometimes mean less Understanding

There is a paradox in modern governance: governments provide more information than ever, but citizens may understand less than they need to know.

A Government Order may run into dozens of pages; websites and portals may contain hundreds of pages. Yet a citizen may still ask: "Can I construct three floors on my 60-square-yard plot?"

If the answer technically exists somewhere but the citizen cannot find, understand and apply it, the communication system has failed. Information overload can therefore produce a form of information deficiency.

The same problem affects welfare schemes

The phenomenon is not confined to building regulations. A government may announce that financial assistance is available to eligible beneficiaries. But people may not know who is eligible, what the income limit is, what documents are required, where to apply, the deadline, whether registration is compulsory, whether the benefit is automatic or where to appeal against rejection.

The scheme exists. The government has announced it. Yet the beneficiary remains outside it. That is the information-deficiency gap.

Selective perception widens the gap. A farmer remembers the subsidy but forgets the eligibility condition. A student remembers the scholarship amount but misses the deadline. A senior citizen remembers the concession but not the procedure. A property owner remembers the exemption but ignores its conditions.

From Govt → Citizen to Government → Understanding → Action

Government information is also frequently transmitted through intermediaries: Government → official → middleman → builder → neighbour → WhatsApp group → citizen.

At every stage, information may be shortened or distorted. "G+1 under specified conditions" becomes "no permission below 75 yards"; "up to 7 metres" becomes "seven floors are allowed"; and finally the purchaser hears, "Government permits it." By then, the qualifying conditions have disappeared.

This is why enforcement after a tragedy is not enough. The regulatory objective should be: Detect → Inform → Warn → Stop → Correct → Enforce rather than: Permit/ignore → Construct → Occupy → Collapse → Demolish.

Housing demand must also be addressed

Hyderabad's rapid economic growth has created enormous demand for affordable accommodation among workers, students, IT employees and others. If legitimate accommodation is inadequate, demand will inevitably create informal supply.

Therefore, enforcement alone cannot solve the problem. The city needs affordable housing, rational building regulations, appropriate policies for rental and hostel accommodation, simplified permissions, strict structural safety and effective enforcement.

Information is itself a form of Governance

Every major government policy should answer, in simple citizen language:

What is it?
Who is entitled?
What exactly can I do?
What can I NOT do?
What happens if I violate the rule?

For building regulations, a sixth question is essential: Can my action endanger somebody else?

The answers should be communicated through simple language, diagrams, local-language explainers, short videos, FAQs, helplines and examples of permitted and prohibited activities. The government must communicate the whole rule, not merely its attractive part.

Because an exemption without its conditions becomes a loophole. A benefit without eligibility information becomes misinformation. A right without procedure becomes ineffective. And a regulation without public understanding becomes an invitation to violation.

Conclusion

The Hyderabad building collapse is a reminder that regulatory failure and communication failure can ultimately become human-safety failures.

Information deficiency creates ignorance. Selective perception creates partial understanding. Partial understanding creates selective compliance. Selective compliance creates violations. Unchecked violations create risk and risk can eventually become tragedy.

Good governance therefore requires not merely good policies but good policy communication. The ultimate destination of a government message is not the Government Order, website or office. It is the mind of the citizen.

And the ultimate test of communication is not whether the message was sent, but whether the intended citizen understood it and acted correctly. That becomes effective communication.

A government policy succeeds only when it travels the entire distance i.e. from the Government Order to the government office, from the office to the citizen, from the citizen's ear to the citizen's mind and finally from the citizen's mind to responsible action.

Until that happens, there will always be a gap between policy on paper and public life on the ground.

Monday, August 24, 2026

 

Trusts in India: From Private Wealth to Public Purpose

[creation, trusteeship, beneficiaries, registration, taxation and jurisdiction]

Y Babji, Legal Practitioner

A trust is one of the most versatile legal arrangements available in India for holding, managing and transferring property. It can be created to protect family wealth, provide for minors, manage assets for future generations or pursue charitable, educational, medical or religious objectives. Yet, “trust” is not a single legal category. A private family trust, public charitable trust, religious endowment and testamentary trust operate under different legal principles and regulatory frameworks.

What is it?

Section 3 of the Indian Trusts Act, 1882 defines a trust as an obligation annexed to ownership of property, arising out of confidence reposed in and accepted by the owner for the benefit of another. In simple terms, the settlor or author transfers or dedicates property to a trustee, who holds and administers it for the benefit of specified beneficiaries or for a legally recognised purpose.

The essential components are therefore intention, trust property, trustees and beneficiaries or lawful objects. The trust must have sufficient certainty regarding what property is involved and for whose benefit or for what purpose it is being held.

Who Can Create It?

Section 7 of the Indian Trusts Act broadly permits a person competent to contract and entitled to the property to create a trust. An individual, company or other legally competent entity may establish a trust, depending on the nature of the property and purpose.

A trustee must generally be capable of holding property; where the trust requires the exercise of discretion, contractual competence is also relevant. A beneficiary may be an individual, a minor, a class of persons or in the case of a public charitable trust, the public or a sufficiently identifiable section of it.

Private and Public

The most fundamental distinction is between a private trust and a public trust.

A private trust benefits identified persons or an ascertainable class, for example, a trust created by a parent for the education and maintenance of children and grandchildren. It is frequently used for succession planning, preservation of family assets and protection of beneficiaries who may be minors or otherwise unable to manage property.

A public trust, by contrast, serves the public or a sufficiently large section of the public. A public charitable trust may undertake activities relating to education, medical relief, poverty alleviation, environmental protection or other recognised charitable purposes.

The Indian Trusts Act, 1882 principally deals with private trusts and trustees and expressly preserves public and private religious or charitable endowments from its operation. Consequently, public charitable trusts cannot be understood solely by reference to the Indian Trusts Act.

Religious, Testamentary and Family Trusts

A religious trust is established for religious purposes and may be governed by special State legislation or principles of personal law depending on its character. 

A testamentary trust is created through a Will and comes into operation after the death of the testator. It is particularly useful where assets are intended to be managed over a period of time rather than distributed outright.

A family trust may be created during the settlor's lifetime to manage houses, investments, shares or other assets for family members. It can provide continuity and a structured mechanism for succession.

Trusts can also be classified as revocable or irrevocable, specific or discretionary and express or constructive, each having different legal and tax consequences.

The Trust Deed: The Foundation Document

A well-drafted trust deed is the foundation of a trust. It should identify the settlor, trustees, trust property and objects and prescribe the powers and duties of trustees.

It should also address appointment and removal of trustees, resignation, succession, meetings, quorum, banking, investment, accounts, audit, conflicts of interest, amendment of the deed and dissolution.

In a charitable trust, particular care is required in drafting the objects, application of income, related-party transactions and dissolution clause. Charitable assets cannot ordinarily be treated as the personal property of trustees.

Registration: One Trust, Several Regulatory Requirements

There is no single universal registration mechanism for every type of trust in India. The applicable authority depends upon the nature of the trust, the State law and the property involved.

Where registration of a trust instrument is required, particularly in relation to immovable property, the Registration Department/Sub-Registrar assumes importance. This, however, is distinct from registration under the Income-tax Act.

A charitable or religious trust seeking income-tax exemption generally has to comply with the Section 12AB regime. Approval under Section 80G, where available, provides eligible donors with tax benefits subject to statutory conditions. Foreign contributions are separately regulated under the Foreign Contribution (Regulation) Act, 2010 (FCRA).

Thus, trust registration, PAN, 12AB, 80G and FCRA are different legal compliances and should not be confused with one another.

Duties of Trustees

A trustee occupies a fiduciary position. Trust property cannot be treated as the trustee's personal asset. Trustees must administer the trust according to its instrument and applicable law, protect trust property, maintain accounts, exercise reasonable care, avoid improper personal benefit and act in accordance with the interests of the beneficiaries or the trust objects.

A trustee's powers are therefore accompanied by corresponding fiduciary obligations.

Jurisdiction: More Than One Authority May Be Involved

Trust disputes and regulatory matters may involve different jurisdictions. The Sub-Registrar may have jurisdiction concerning registration of an instrument or property. The Income-tax authorities deal with tax registration and exemption. Civil courts may determine disputes concerning trust property, beneficiaries or trustees, while special statutory authorities may have jurisdiction over particular religious or charitable institutions.

Therefore, the place where a trust is created, where its property is situated, where it is registered, where it is assessed for tax and where litigation may be instituted need not necessarily be the same.

Trust, Society or Section 8 Company?

A trust is generally trustee-centric, a society is broadly member-centric, while a Section 8 company has a corporate structure governed by the Companies Act, 2013.

A trust may be preferable for family succession or a relatively stable charitable institution. A society may be more appropriate where democratic participation by members is important. A Section 8 company may suit a larger institution requiring a formal corporate governance structure.

The choice should therefore be based not merely on ease of registration but on the organisation's objects, governance, funding, property, taxation and long-term plans.

Advantages and Limitations

Trusts offer important advantages: continuity, structured succession, professional management of assets, protection of vulnerable beneficiaries and a recognised framework for charitable activity. Eligible charitable trusts may also access tax exemptions and donor benefits subject to statutory compliance.

But a trust is not a shortcut to tax exemption or unrestricted control over property. Poorly drafted deeds can generate disputes; charitable trusts face continuing compliance requirements; trustees carry fiduciary responsibilities; and charitable assets cannot ordinarily be distributed for private benefit.

The Legal Takeaway

A trust is fundamentally about confidence, responsibility and dedicated property. Whether created for a family or for the public, its effectiveness depends on the precision of its deed, the integrity of its trustees and compliance with the applicable legal framework.

For practitioners and institutions in Telangana, the correct approach is to examine the trust deed, registration law, applicable State legislation, Income-tax Act, FCRA and sector-specific laws together. The right question is not merely, “How do I register a trust?” but rather, “What type of trust is appropriate, what legal regime governs it and how should its property, governance and tax obligations be structured?”

A carefully designed trust can become a durable legal vehicle for wealth succession, social welfare and public purpose but only when its legal architecture is sound from the beginning.