Endowments minister Ponnala Lakshmaiah sprang a surprise by claiming that the Sai Trust was registered under the Endowments Act in 1976 itself. This claim surprised many as everybody was under the impression that the Trust was an indendent body with no control of government or any statutory regulation.

Warning that the government is watching the latest developments in the Sathya Sai Central Trust, the minister said, "When the Trust was registered as per the government norms, it is the government's responsibility to scrutinise its affairs if something goes wrong." He said, because of service-oriented activities carried out by the Trust all these years, the government has not involved itself in its activities. But after the demise of Sai Baba, several allegations have been made on the Trust and its activities. The government had asked for a complete factual report from the Trust. "We will act once we receive the report. We have given them 10 days time," he said.