CHANDIGARH, May 7: The First National Trustee Company (India), a company having arrangement with the First National Trustee Company of England is entering the Timeshare Trusteeship in India for which it tied up with Asia Resorts Limited.

As per the agreement, the FNTC (India) has been appointed as "custodian trustee" for the forthcoming venture Timber Trail Manali resort being built by the Asia Resorts Limited, promoters of Timber Trail Timeshare schemes at various locations in Himachal Pradesh.

Asia Resorts have been one of the first Indian developers to recognise the importance of providing consumer protection to the Timeshare Purchasers and keeping in that they have appointed the First National Trustee Company as their resort trustee, claimed company's chairman RK Garg.

He said that having emerged as one of the most lucrative industries in terms of returns on investment, the property industry particularly the Timeshare industry had invited its share of unscrupulous developers eroding the faith of people.

Garg said that it was in this context that the appointment of reliable trustee was essential for protecting the rights of the timeshare purchaser. Under the arrangements, the property is entrusted to the possession of an independent third party that is a trustee for safeguarding and protecting the property for the benefit of a beneficiary.

MNTC director of operations Manoj Gupta who was here in Chandigarh said that First National Tourist Company had been set up to provide that needed security to the purchaser of the timeshare unit or week by protecting the property and guaranteeing the right to use of property, during the occupancy period.

It makes appropriate checks to ensure that the property is legally vested with the developer and the project was viable. The subsequent Memorandum of Understanding ensures that the trustee controls the timeshare property by legally creating a charge over the property either through a mortgage or lease in its favour.

In addition, the MNTC holds the title deeds in a safety deposit locker thereby preventing the developer from being able to create a second or additional charge on the property.

Gupta said that as trustees the First National Trustee Company would give a guarantee to the timeshare purchaser, the occupancy at the resort during the holiday period which the purchaser owns.

As at present the First National Trustee Company is the leading timeshare trustee in the world with over $800 million of assets under management. It is offering services to over 160 resorts around the globe at present.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.