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  "title": "PUNJAB CHARITIES ACT 2018",
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  "text": "THE PUNJAB CHARITIES ACT 2018  \r\n(V of 2018) \r\nCONTENTS \r\n  \r\n1. Short title, extent and commencement \r\n \r\n2. Definitions \r\n \r\n3. The Commission \r\n \r\n4. Chairperson of the Commission \r\n \r\n5. Chief Executive Officer \r\n \r\n6. Functions of the Commission \r\n \r\n7. Power to call for record of charities, etc \r\n \r\n8. Power to appoint charity trustee \r\n \r\n9. Enquiry \r\n \r\n10. Employees \r\n \r\n11. Appointment of advisers, consultants etc  \r\n \r\n12. Charities to be registered  \r\n \r\n13. Exemption \r\n \r\n14. Register of charities  \r\n \r\n15. Application for registration \r\n \r\n16. Register to be public document \r\n \r\n17. Cancellation of registration \r\n \r\n18. Registering authority \r\n \r\n19. Sanctioning authority \r\n \r\n20. Prohibition on collection \r\n \r\n21. Powers of sanctioning authority \r\n \r\n22. Residuary powers of the Commission \r\n \r\n23. Periodic evaluation of charities \r\n \r\n24. Administrative actions  \r\n \r\n \r\n \r\n25. Reports \r\n \r\n26. Obligations of charity trustees \r\n \r\n27.  Fiduciary responsibilities of charity trustees \r\n \r\n28. Accounting records of a charity \r\n \r\n29. Accounting of charitable funds \r\n \r\n30. Audit and Inspection \r\n \r\n31. Misapplication of funds \r\n \r\n32. Penalty \r\n \r\n33. Cognizance and summary trial \r\n \r\n34. Compounding of offence \r\n \r\n35. Confiscation \r\n \r\n36. Appeal  \r\n \r\n37. Application of other laws \r\n \r\n38. Rules \r\n \r\n39. Regulations \r\n \r\n40. Indemnity \r\n \r\n41. Revision \r\n \r\n42. Repeal and savings \r\n \r\n43. Repeal \r\n \r\n \r\n \r\n \r\nTEXT \r\n1\r\nTHE PUNJAB CHARITIES ACT 2018 \r\n(V of 2018) \r\n[7 March 2018] \r\nAn \r\nAct \r\nto register and regulate charities and collection of charitable funds. \r\nIt is nec essary to make effective provisions for the registration, administration and \r\nregulation of charities, fund -raising appeals and collection of charitable funds for \r\ncharities and other institutions; and, for other purposes. \r\nBe it enacted by the Provincial Assembly of the Punjab as follows: \r\n1. Short title, extent and commencement .– (1) This Act may be cited as the \r\nPunjab Charities Act 2018. \r\n(2)  It extends to whole of the Punjab. \r\n(3) It shall come into force at once. \r\n2. Definitions.– In this Act: \r\n(a) “Act” means the Punjab Charities Act 2018; \r\n(b) “Assistant Commissioner” means the executive officer incharge \r\nof a Tehsil; \r\n (c) “charitable fund” includes the money and goods collected for a \r\nlimited period of time for charitable purpose by a person or \r\norganization not registered as a charity; \r\n (d) “charitable purpose” means the purpose which is for: \r\n (i) prevention and relief of poverty;  \r\n (ii) promotion of education and learning;  \r\n (iii) provision of health and lifesaving services;  \r\n (iv) community development;  \r\n (v) promotion of arts, culture and heritage;  \r\n (vi) promotion of human rights, conflict resolution and \r\nreconciliation activities; \r\n (vii) promotion of religious and racial harmony;  \r\n (viii) promotion of diversity and tolerance;  \r\n (ix) environmental protection and environmental \r\nimprovement;  \r\n (x) relief of those in need of it by reason of youth, age, ill \r\nhealth, or disability; and   \r\n (xi) such other purposes as the Commission may determine. \r\n                                                 \r\n1This Act was passed by the Provincial Assembly of the Punjab on 28 February,  2018; assented to by the Governor of the \r\nPunjab on 7 March 2018; and, was published in the Punjab Gazette (Extraordinary), dated: 8 March 2018, pp. 6329-6336 \r\n \r\n \r\n (e) “charity” means any association of persons which is established \r\nfor a charitable purpose and includes the following:  \r\n(i) an organization registered under the Voluntary Social \r\nWelfare Agencies (Registration and Control) Ordinance, \r\n1961 (XLVI of 1961); \r\n(ii) an organization registered under the Societies \r\nRegistration Act, 1860 (XXI of 1860); \r\n(iii) an organization registered under the Companies Act, \r\n2017 (XIX of 2017)  or under any other law for the time \r\nbeing in force;  \r\n(iv) an organization registered for charitable purposes under \r\nany law for the time being in force; and \r\n(v) a public or private trust. \r\n  (f) “charity trustee” means the person or persons having the \r\ngeneral administration, control and management of a charity; \r\n  (g) “collect” or “collection” means appealing for, receiving, collecting \r\nor attempting to collect any donations whether in mone y or in \r\nkind; \r\n  (h) “collector” means a person actually engaged in collecting \r\ndonations for a charitable purpose; \r\n  (i) “Commission” means the Charity Commission established under \r\nthe Act. \r\n  (j) “declaration” means a declaration made by the charity or \r\npromoter of a charitable fund, stating: \r\n(i) the names and addresses of the charity or promoter or \r\npromoters of the fund; \r\n(ii) the proposed value of the donation; \r\n(iii) the names and addresses of the collectors of the fund; \r\n(iv) the names and addresses of the recipients of the fund; \r\n(v) the objects and purposes for which the fund shall be \r\nutilized;  \r\n(vi) the names of the banks or the persons in whose custody \r\nthe collection shall be kept; and \r\n(vii) any other prescribed information. \r\n(k) “Deputy Commissioner” means the executive officer incharge of \r\na district or any other person appointed by the Government as \r\nDeputy Commissioner for purposes of the Act; \r\n(l) “Government” means Government of the Punjab; \r\n(m)  “prescribed” means prescribed by the rules or regulations made \r\nunder the Act; \r\n(n) “promoter” means a person, other than a charity, responsible for \r\ncollection, custody, administration and accounting of the \r\ndonations for a charitable fund or a charitable purpose; \r\n \r\n \r\n(o) “recipient” means an individual, institution, association, society \r\nor undertaking for whose benef it a charitable fund is or shall be \r\ncollected; \r\n(p) “registering authority” means the registering authority mentioned \r\nin section 18 of the Act; and \r\n(q) “sanctioning authority” means the authority mentioned in section \r\n19 of the Act. \r\n3. The Commission.– (1) The Commi ssion shall consist of not less than three \r\nand not more than five Commissioners including the Chairperson, as the \r\nGovernment may determine. \r\n(2) A Commissioner shall be a person who is known for integrity, \r\nexpertise, experience and eminence in the field of law, administration, social work or \r\nany other related field. \r\n(3) The Government may appoint Commissioners from amongst serving or \r\nretired civil servants, retired judges and private sector on such terms and conditions \r\nas may be prescribed and until so prescribed as the Government may determine.  \r\n(4) Subject to the provisions of the Act, the Commission shall discharge its \r\nfunctions, exercise its powers and conduct its proceedings in the prescribed manner \r\nand until so prescribed in the manner the Commission may determine. \r\n (5) The term of the office of a Commissioner shall be two years.  \r\n(6) A Commissioner shall perform such functions as may be prescribed or \r\nassigned by the Commission. \r\n4. Chairperson of the Commission.– (1) The Government shall appoint one of \r\nthe Commissioners as the Chairperson of the Commission but a Commissioner shall \r\nnot be appointed as Chairperson for more than two consecutive terms. \r\n(2) The Chairperson and the Commissioners shall be responsible for the \r\ndue discharge of the mandate of the Commission. \r\n5. Chief Executive Officer.– (1) The Government shall, in consultation with the \r\nCommission, appoint the Chief Executive Officer of the Commission on such terms \r\nand conditions as may be prescribed and until so prescribed as the Government may \r\ndetermine. \r\n(2) The Chief Executive Officer shall be responsible for the day to day \r\nadministration of the Commission and shall perform such other functions as may be \r\nprescribed or assigned by the Commission.  \r\n6. Functions of the Commission .– (1) The Commission  shall perform such \r\nfunctions as may be necessary for accomplishing the purposes of the Act. \r\n (2) Without prejudice to the generality of the foregoing powers, the \r\nCommission shall: \r\n(a) maintain public trust and confidence in charities;  \r\n(b) register charities;  \r\n(c) protect charities and the beneficiaries thereof; \r\n(d) ensure that charities and promoters comply with their legal \r\nobligations in exercising control and management of the \r\nadministration of the charitable funds; \r\n \r\n \r\n(e) issue necessary advice to the charities and charity trustees; \r\n(f) ensure effective use of charitable funds; \r\n(g) institute a mechanism for effective monitoring and accountability \r\nof charities, promoters, collectors and recipients; \r\n(h) hold, if necessary, an enquiry into the affairs of a charity or \r\ncharitable fund; \r\n(i) alter or set aside sanction of collection accorded by a Deputy \r\nCommissioner; \r\n(j) receive and examine annual audit report of a charity or \r\ncharitable fund; \r\n(k) conduct or cause to be conducted a special audit of a charity or \r\ncharitable fund; \r\n(l) issue guidelines for proper ac counting, management and \r\nutilization of a charity or charitable fund; \r\n(m) issue such directions to the Deputy Commissioners and \r\nAssistant Commissioners as may be necessary for the due \r\ndischarge of the functions under the Act; and \r\n(n) perform such other related fun ctions as the Government may \r\nassign. \r\n7. Power to call for record of charities, etc .– (1) The Commission may call for \r\nany record, data or information about a charity, a charity trustee, the beneficiaries of \r\na charity, a charitable fund and expenditure on charity by a corporate entity. \r\n(2) The Commission may seek verification of the financial records from \r\nfinancial institutions and may utilize the services of a law enforcing agency for the \r\npurpose. \r\n8. Power to appoint charity trustee .– (1) The Commission may appoint a \r\ncharity trustee or any officer or office -bearer of a charity if such charity fails to \r\nremove a trustee or appoint a new trustee or officer where:  \r\n(a) a trustee or officer has been convicted of an offence involving \r\nmoral turpitude, dishonesty or deception; or \r\n(b) a trustee has been adjudged bankrupt; or  \r\n(c) the conduct  of a trustee or officer is detrimental to the cause of \r\nthe charity owing to mismanagement or other reasons as may \r\nbe determined by a court or the Commission. \r\n(2) The Commission shall provide an opportunity of defence and hearing \r\nto the charity or the person likely to be affected by the decision of the Commission. \r\n9. Enquiry.– (1) The Commission, on its own motion or on receipt of a request \r\nfrom the Government or a complaint from any person, ma y hold an enquiry into the \r\naffairs of a charity to ascertain whether any charitable funds have been misapplied or \r\nmisappropriated or there is any breach of trust. \r\n(2) If as a result of enquiry under sub -section (1), the Commission finds \r\nthat an offence has been committed under any law or any trust has been breached, it \r\nmay move a reference to the Government to proceed further in accordance with law. \r\n \r\n \r\n10. Employees.– (1) The Commission may, from time to time, employ persons to \r\nassist the Commission in the performance of its functions.  \r\n(2) The employees of the Commission shall be paid such remuneration \r\nand allowances and shall hold their employment on such terms and conditions as \r\nmay be prescribed. \r\n11. Appointment of advisers, consultants etc.– The Commission may, with the \r\napproval of the Government, employ such consultants, or technical professionals or \r\nadvisers as may be necessary for the due discharge of its functions under the Act, \r\non such terms and conditions as may be prescribed and until so prescribed, a s the \r\nGovernment may determine.  \r\n12. Charities to be registered .– (1) Every charity shall get itself registered with \r\nthe Commission not later than such date as the Government may, by notification, \r\ndetermine.  \r\n(2) A charity shall not collect charitable fund s or seek collection of the \r\ncharitable funds unless it is registered under the Act.  \r\n13. Exemption.– The Government may, after recording reasons, exempt an \r\norganization or charity from the provisions of section 12 of the Act, but an \r\norganization which is n ot registered as a not -for-profit company shall not be so \r\nexempted. \r\n14. Register of charities .– (1) The Commission shall maintain a Register of \r\nCharities in such manner as may be prescribed and until so prescribed as the \r\nCommission may determine.  \r\n (2) The Register shall contain: \r\n(a) the name of every registered charity; and \r\n(b) such other particulars of, and such other information relating to, \r\nevery such charity as may be prescribed or as the  Commission \r\nmay determine.  \r\n15. Application for registration .– (1) Every organization required to be \r\nregistered under the Act shall provide to the registering authority the information \r\nregarding the objectives of the charity, the source or sources of income of the charity \r\nand the nature of its spending, and such other documents or information as may be \r\nprescribed.  \r\n (2) The Registering Authority may, for reasons to be recorded in writing, \r\nrefuse registration of an organization if in its opinion the objects of charity stated in \r\ndeclaration are not in consonance with the charitable purpose or for any other \r\nreasonable cause. \r\n16. Register to be public document .– (1) The Register of Charities shall be a \r\npublic document and shall be open to public inspection at all reasonable times. \r\n  (2) A person may obtain copies of particul ars of Register of Charities or \r\ndocuments supplied by a charity subject to payment of such fee as may be \r\nprescribed. \r\n (3) The Commission shall publish on its website such information in the \r\nRegister as may be necessary to create general awareness about the  work and \r\nconduct of charities. \r\n \r\n \r\n17. Cancellation of registration .– The Commission may, after affording an \r\nopportunity of hearing, suspend or cancel the registration of a charity if the \r\nCommission is satisfied that: \r\n(a) the organization or association of pe rsons is not furthering any \r\ncharitable purpose; or \r\n(b) the charity has committed a serious violation of the provisions of \r\nthe Act or the rules. \r\n18. Registering authority .– (1) The Commission shall be the registering \r\nauthority when the operation of a charity extends to the whole of the Punjab or two or \r\nmore districts. \r\n (2) The Deputy Commissioner shall be the registering authority when the \r\noperation of a charity does not extend beyond the district. \r\n (3) The Assistant Commissioner shall be the registering aut hority where \r\nthe operation of a charity extends only to a Tehsil. \r\n19. Sanctioning authority.– (1) The Commission may sanction the collection of \r\ncharitable funds if the collection is proposed to be made from the whole of the \r\nPunjab or two or more districts or for a period of more than twelve months. \r\n (2) Subject to subsection (1): \r\n(a) the Deputy Commissioner may sanction the collection of \r\ncharitable funds if the collection is to be made from within a \r\ndistrict; and \r\n(b) the Assistant Commissioner may sanction the collection of \r\ncharitable funds if the collection is to be made from within a \r\nTehsil. \r\n20. Prohibition on collection.– (1) A promoter shall not make or solicit collection \r\nfor any charitable fund unless before the start of the collection, he makes a \r\ndeclaration in respect of the intended collection and delivers the declaration to the \r\nsanctioning authority, and the sanctioning authority sanctions, in writing, the \r\ncollection. \r\n (2) The sanctioning authority may refuse to sanction the collection under \r\nthis section if it is not satisfied with regard to good faith of the promoter or persons \r\nproposing to make the collection, or if the authority is not satisfied with regard to the \r\nproper custody of the fund or the due administration of the fund for the purpose for \r\nwhich it is to be collected. \r\n (3) The sanctioning authority may sanction the collection subject to such \r\nconditions as it may consider necessary for ensuring the proper custody of the fund \r\nand its due administration and utilization for the objects and purpo ses of the \r\ncharitable fund. \r\n (4) If the sanctioning authority sanctions the collection, it shall issue or \r\ncause to be issued a certificate for a specified period, to the promoter in such form \r\nand manner as the Commission may, by regulations, prescribe, aut horizing him to \r\nmake the collection through identified collectors and for identified recipients. \r\n (5) The Deputy Commissioner may alter or set aside a sanction of \r\ncollection accorded by an Assistant Commissioner in the district. \r\n \r\n \r\n21. Powers of sanctioning a uthority.– The sanctioning authority may, at any \r\ntime, for sufficient reasons and after affording opportunity of hearing, cancel or alter \r\nany order made or direction given by it under the Act . \r\n22. Residuary powers of the Commission .– The Commission may is sue such \r\ndirections to the Deputy Commissioners and Assistant Commissioners as may be \r\nnecessary for achieving the objectives of the Act. \r\n23. Periodic evaluation of charities .– The Commission shall undertake a \r\nperiodic evaluation of the charities to review the performance of the charity trustees \r\nunder the Act. \r\n24. Administrative actions.– (1) If, after evaluation or audit, the Commission is \r\nsatisfied that any charity has failed to comply with the obligations envisaged under \r\nthe Act, the Commission may: \r\n(a) suspend or cancel the registration of that charity under the Act; \r\nand \r\n(b) impose fine, not exceeding one million rupees, on the charity or \r\norganization. \r\n(2) The Commission shall not take any action under sub -section (1) unless \r\nthe charity or organization is aff orded a reasonable opportunity of hearing and \r\nshowing cause against the proposed action.  \r\n25. Reports.– The Commission shall, from time to time, publish reports, \r\nhighlighting the areas of operations carried out by the Commission and other \r\nadministrative actions taken during the period under report. \r\n26. Obligations of charity trustees.– (1) A charity trustee shall:  \r\n(a) comply with the terms and conditions of the governing \r\ninstrument which envisages the establishment of the charity \r\ntrustee with the relevant authority; \r\n(b) coordinate with the other charities operating in the respective \r\ndomain for purposes of consolidated efforts at achieving the \r\nobjectives and targets under the Act; and \r\n(c) immediately inform the Commission about any change in the \r\nconstituent document of the charity. \r\n27.  Fiduciary responsibilities of charity trustees .– A charity trustee shall be \r\nresponsible for: \r\n  (a) controlling the assets of the charity; \r\n  (b) protection, proper investment and utilization of the charitable \r\nfund;  \r\n  (c) ensuring that the charitable funds are not used for any purpose \r\nother than the declared purpose; \r\n  (d) ensuring that the charitable funds or property is not misused or \r\nallowed to go waste as a result of mismanagement or for any \r\nother reasons;  \r\n  (e) the sale, l ease or other disposal of the charity property and \r\ninsurance of the charity property; and \r\n \r\n \r\n  (f) ensuring that no unnecessary encumbrances are created on the \r\ncharity property. \r\n28. Accounting records of a charity .– (1) The charity trustees shall ensure that \r\naccurate accounting records are maintained in respect of the charity. \r\n (2) The accounting records shall mention all the transactions of the charity \r\nand shall also reflect on the financial position of the charity. \r\n (3) The accounting records shall in particular contain: \r\n(a) entries pertaining to  all sums of money received and expended \r\nby the charity each day;  \r\n(b) matters in respect of which the receipt and expenditure takes \r\nplace; and \r\n(c) the details of assets and liabilities of the charity. \r\n (4) The chari ty trustees shall preserve the accounting records for such \r\nperiod as may be prescribed. \r\n (5) The charity trustee shall prepare annual statement of accounts. \r\n (6) If the amount given to a charity in a calendar month exceeds fifty \r\nthousand rupees, the charit y shall deposit the amount in a dedicated bank account \r\nand shall provide information of the bank account to the sanctioning authority or the \r\nregistering authority, as the case may be. \r\n \r\n29. Accounting of charitable funds .– The charity trustees shall ensure that \r\naccounting records of a charitable fund are maintained as required under section 28. \r\n30. Audit and Inspection .– (1) The Commissioner or the sanctioning authority \r\nmay, for reasons to be recorded, direct that the accounts of a charity shall be audited \r\nor re-audited by a specified auditor at the expense of the charity or the person who \r\nhas applied for the special audit of the charity. \r\n(2)  The Commission or sanctioning authority may inspect or cause to be \r\ninspected any accounts maintained under the Act or the rules. \r\n31. Misapplication of funds .– (1) A charity, promoter, collector or recipient of a \r\ncharitable fund shall not use the fund for any purpose or object other than the \r\npurpose or object for which it was collected except with the prior permission of the \r\nCommission. \r\n (2) A person authorized to hold charitable fund shall not transfer the \r\ncustody of the charitable fund to any other person except with the prior approval in \r\nwriting of the Commission or the sanctioning authority. \r\n (3) If any part of any donations collected for any charitable fund is used for \r\nany purpose or object other than that for which it was collected, or is otherwise \r\nmisapplied or misappropriated in any manner, every person concerned with the \r\ncollection or administration of the fund, wh ether as a promoter, collector or a \r\nrecipient, shall unless he proves that the misuse, misapplication or misappropriation \r\noccurred without his knowledge and that he had used all due diligence to prevent \r\nsuch misuse, misapplication or misappropriation, shal l be deemed to have \r\ncommitted the misuse, misapplication or misappropriation of the charitable fund. \r\n \r\n \r\n32. Penalty.– (1) Any person who dishonestly or fraudulently tampers with, \r\nconceals or destroys any records pertaining to the collection of any charitable fund to \r\nwhich the Act applies shall be deemed to have contravened the Act. \r\n (2) A person who contravenes any provision of the Act or the rules or of \r\nany order made, direction given or condition imposed under the Act shall be liable to \r\npunishment of impriso nment for a term which may extend to six months but which \r\nshall not be less than fifteen days and fine which shall not be less than twenty five \r\nthousand rupees or more than one hundred thousand rupees. \r\n33. Cognizance and summary trial .– (1) An offence unde r the Act shall be \r\ncognizable and non-bailable.  \r\n (2) A Magistrate of the first class shall conduct the trial of an offence under \r\nthe Act in accordance with the provisions of Chapter XXII of the Code of Criminal \r\nProcedure, 1898 (V of 1898) relating to the summary trials. \r\n34. Compounding of offence .– (1) Subject to subsection (2), the  \r\nCommission or any person specifically authorized in this behalf by the Commission \r\nmay, at any stage, compound an offence under the Act subject to the deposit of \r\nadministrative penalty which shall not be less than twenty five thousand rupees.  \r\n (2) The offence under the Act shall not be compoundable if the accused \r\nhad been previously convicted under the Act or his previous offence had been \r\ncompounded by the Commission or the officer authorized by the Commission. \r\n35. Confiscation.– A court trying an offence under the Act may order the \r\nconfiscation or recovery of any fund wrongfully collected or misapplied by any person \r\nin contravention of the Act. \r\n \r\n36. Appeal.–  (1) Any person agg rieved by an order or direction of the \r\nCommission, may within thirty days of the order, prefer an appeal to the Appellate \r\nCommittee. \r\n (2) The Government shall, by notification, constitute the Appellate \r\nCommittee consisting of the Chairperson and such members as it may determine. \r\n (3) The Committee shall perform its functions in the prescribed manner \r\nand until so prescribed, the Committee shall regulate its own procedure.  \r\n37. Application of other laws .– The provisions of the Act shall be in addition to \r\nand not in derogation from any other law. \r\n38. Rules.– (1) The Government may, by notification, make rules to carry out the \r\npurposes of the Act. \r\n (2) Without prejudice to the generality of the foregoing powers, the rules \r\nmay provide for: \r\n(a) the form and conten ts of declarations and the verification of \r\nstatements made in a declaration; \r\n(b) the period for which declarations shall remain in force and the \r\nmanner in which the period may be extended or terminated; \r\n(c) the form and manner in which receipts for donatio ns may be \r\ngiven and the maintenance of proper vouchers for purposes of \r\nthe accounts; \r\n \r\n \r\n(d) the maintenance of proper books of account and the auditing of \r\nthe accounts; \r\n(e) the periodical submission of statements of accounts; \r\n(f) the supervision, inspection and examination of accounts; and \r\n(g) the payment of charges for forms of declarations and \r\ncertificates. \r\n39. Regulations.– Subject to the Act and the rules, the Commission may, by \r\nnotification, frame regulations to give effect to the provisions of the Act. \r\n40. Indemnity.– No prosecution, suit or other legal proceedings shall be instituted \r\nagainst any person in respect of anything which is, in good faith, done or intended to \r\nbe done under the Act. \r\n41. Revision.– Subject to section 36, the Government may, at an y time, on its \r\nown motion or on the application of any aggrieved person, revise any decision or \r\ndirection of the Commission and pass such order in accordance with the Act as it \r\nmay deem proper. \r\n42. Repeal and savings .– (1) The Charitable Funds (Regulation of Collections) \r\nAct, 1953 (XXXI of 1953) is hereby repealed. \r\n (2) Notwithstanding the repeal of the Charitable Funds (Regulation of \r\nCollections) Act, 1953 ( XXXI of 1953 ), anything done or action taken under the \r\nrepealed Act, shall have the effect as if the  thing is done or action is taken under the \r\nAct. \r\n43. Repeal.– The Punjab Charities Ordinance 2018  (I of 2018) is  hereby \r\nrepealed.",
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