Section 30 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Section 30 of the Rajasthan Public Trusts Act, 1959 tells the working trustee of a public trust in Rajasthan where idle money may go. Money that cannot be applied soon to the trust's purposes must be deposited in a scheduled bank, a Postal Savings Bank or a registered co-operative bank, or invested in public securities, whatever the trust deed says.
This article explains section 30 of the Rajasthan Public Trusts Act, 1959 (Rajasthan Act 42 of 1959) as amended up to the date of the English text published by the Devasthan Department, Government of Rajasthan, consulted on 3 October 2026; that copy does not state the date of its last amendment. Check the current text with the State's Devasthan Department before relying on it.
Where trust money cannot be applied immediately or at an early date to the trust's purposes, the working trustee is bound, even against a contrary direction in the trust instrument, to deposit it in a scheduled bank, a Postal Savings Bank or a co-operative bank registered under the Rajasthan Co-operative Societies Act, 1953, or to invest it in public securities. Two provisos allow a first mortgage of immovable property in India on the terms printed, and investment in another manner with the Commissioner's permission. Chapter VI applies only to classes notified under section 1(4).
The notification point
Section 30 is in Chapter VI, which comes into force only for the class or classes of public trusts notified under section 1(4). The notifications are not part of the text consulted, so no class of trusts is named here. Advice on investment policy and the trust's treasury records can be had through a compliance advisory engagement.
Sub-section (1): the rule
The rule applies where "any property belonging to public trust consists of money and such money cannot be applied immediately or at any early date to the purposes of the said public trust". In that case the working trustee is bound, "notwithstanding a direction to the contrary contained in the instrument of trust, if any", to do one of the following:
| Option | What the section says |
|---|---|
| Deposit in a scheduled bank | A Scheduled bank as defined in the Reserve Bank of India Act, 1934. |
| Deposit in a Postal Savings Bank | A Postal Savings Bank account. |
| Deposit in a co-operative bank | A Co-operative Bank registered under the Rajasthan Co-operative Societies Act, 1953 (Rajasthan Act 4 of 1953). |
| Invest in public securities | As defined in section 2(10). |
The words "notwithstanding a direction to the contrary" mean the statute overrides the trust deed for money covered by this section. The Reserve Bank of India Act, 1934 and the Rajasthan Co-operative Societies Act, 1953 are older laws quoted as printed; check the current text of each before relying on the reference.
What counts as public securities
Section 2(10) defines public securities as securities of the Central Government or any State Government; stocks, debentures or shares in railway or other public-sector companies whose interest or dividends the Central or a State Government has assured; and securities expressly authorised by an order of the State Government. A security outside this list is not a "public security" for section 30.
First proviso: mortgage of immovable property
Money may also be invested "in the first mortgage of immovable property situated in India if the property is not lease-hold for a term of three years and the value of the property exceeds by one half the mortgage money". The proviso is quoted as printed. Three elements appear: a first mortgage, immovable property in India, and a margin of value over the mortgage money, with a condition about leasehold property. The published wording is compressed, and a trustee thinking of using this route should read the official text and take professional advice on how the margin is measured, because the Act does not give a formula.
Second proviso: the Commissioner's permission
The Commissioner may, "by general or special order", permit the working trustee of any public trust or class of such trusts to invest the money "in any other manner". The permission is an order of the Commissioner. A trustee wishing to rely on it should have the order, whether special to the trust or general to a class, on the trust's file. The text consulted does not list any such orders.
Sub-section (2): earlier investments
Nothing in sub-section (1) affects any investment or deposit made before the commencement of the Act in accordance with a direction in the instrument of trust. The proviso adds that any interest or dividend received or accruing from such an investment on or after the commencement, and any sum realised on maturity, must be applied or invested in the manner prescribed in sub-section (1). So an old investment may stay as it is, but the proceeds join the section 30(1) regime.
Where section 30 fits with sanction and audit
Section 30 deals with idle money. The sale, gift, exchange or long lease of property is a separate matter requiring the Assistant Commissioner's previous sanction; see section 31. The auditor's duty to report irregular expenditure and loss of trust money is in section 34. Decisions on investment may also be tested in the audit. Section 30 itself prescribes no penalty. A general penalty for contravening the Act is in section 70, covered in our article on sections 67 to 70.
Worked example
An invented temple trust, Shri Charbhuja Mandir Nyas, Rajsamand, receives a large offering in cash which it will not need for building work until next year. Its working trustee, Mr Bhanwar Singh, cannot choose another home for it, whatever an old trust resolution says. Under section 30(1) he may deposit it in a scheduled bank or a registered co-operative bank, or invest it in public securities. If a bank deposit receipt from before the Act was made under a direction in the trust deed, it stays, but the interest on it must now go the section 30(1) way.
Practical points
- Separate money needed soon from money that "cannot be applied immediately or at any early date".
- Keep the bank's status (scheduled bank, co-operative bank registered under the Rajasthan Act) on file.
- If the trust wants to use a different investment, obtain the Commissioner's order first.
- Record in the minutes why money was treated as idle and where it was placed.
- Show the investments in the accounts for audit.
Need help with trust investments?
Where trust money is placed is a question both for the Act and for the auditor. Our team can review your trust's deposits and investments against section 30 and set out what should change. Ask for a compliance advisory review of your treasury arrangements.
Key takeaways
- Idle trust money must be deposited in a scheduled bank, a Postal Savings Bank or a registered co-operative bank, or invested in public securities.
- The statutory rule overrides a contrary direction in the trust instrument.
- A first mortgage of immovable property in India is allowed on the terms printed in the first proviso.
- The Commissioner can permit another manner of investment by general or special order.
- Older investments made under the trust deed are preserved, but their proceeds follow the section 30(1) rule.
- Chapter VI applies only to classes notified under section 1(4).
Read next
- Section 31 of the Rajasthan Public Trusts Act, 1959: previous sanction for transfers
- Section 2 of the Rajasthan Public Trusts Act, 1959: definitions
- Sections 32 to 34 of the Rajasthan Public Trusts Act, 1959: accounts and audit
Disclaimer: Based on the English text of the Rajasthan Public Trusts Act, 1959 published by the Devasthan Department, Government of Rajasthan, as consulted on 3 October 2026; that copy does not state the date of its last amendment. Later amendments, State notifications and current fees should be checked with the State authorities. This article is general information, not legal advice; check the official text before acting.