Community society

Charity Commission removes two trustees from Hindu Community Society

The Commission concluded that misconduct and/or mismanagement by the trustees caused significant financial losses, from which the charity could not recover.

Mr Nathan Rahulan and Mrs Padma Rahulan had been trustees of the Hindu Community Society since its registration in 2010. But they mismanaged the charity’s finances by securing funding to buy property on terms the charity charity could not afford to repay, without consulting other trustees or seeking financial advice.

The Charity Commission investigation found that in 2012 the charity purchased property to be used as a temple base for the Tamil community in Coventry. The temple was purchased using donations from the local community and a commercial bridging loan, with interest totaling £5,000 per month. Over £500,000 in public donations were then used to build the temple.

But when the charity was unable to repay the loan, the property was repossessed. Mr Rahulan, again without consulting the other trustees, spent a further £46,000 of the charity’s money on legal advice in an unsuccessful bid to repossess the property.

The charity aimed to advance the Hindu religion and education in Hindu culture, as well as the relief of poverty, distress and disease in the Tamil community. He was unable to recover from the financial losses resulting from the misconduct of the Rahulans. As it is no longer in operation, the charity has been removed from the charitable registry.

Amy Spiller, Head of Investigations, Charity Commission, said:

The misconduct and mismanagement of the two former trustees caused significant losses to the charity and the local community it supported. Their behavior falls far short of what we expect of trustees and has hampered the work of the charity in the Tamil community.

Charities exist to do good, and it is important that individuals are not able to hinder this good work or misuse generous donations from the public.

The Charity Commission first opened an investigation into the Hindu Community Society in March 2017, after it failed to meet its legal filing obligations. The Commission exercised its powers to remove Mr. and Mrs. Rahulan as Trustees on March 24, 2020 and March 3, 2021 respectively. They are definitely disqualified from acting as trustees of charities.

Ends

Notes to editors:

  1. The Charity Commission is the independent, non-departmental government department that registers and regulates charities in England and Wales. Its goal is to ensure that charity can thrive and inspire trust so that people can improve lives and strengthen society.
  2. The Hindu Community Society (“the Charity”) was incorporated on June 24, 2010, with the following objectives: the advancement of the Hindu religion; the advancement of education, especially in Hindu culture; and relief from poverty, distress and disease.
  3. The charity was deregistered on 1 November 2021 and is recorded as a deregistered charity in the register.
  4. The full report can be viewed here.
  5. If you have any questions, contact: [email protected]