Trust property 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 31 of the Rajasthan Public Trusts Act, 1959 stops a public trust in Rajasthan from selling, giving away, exchanging or leasing long-term its property without the previous sanction of the Assistant Commissioner. A transaction without sanction is not valid, but silence by the Assistant Commissioner for two months is treated as sanction.
This article explains section 31 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.
Subject to the trust instrument and any court direction, no sale, exchange or gift of immovable property, or of movable property exceeding "five thousand rupees" in value (as printed in the published copy), and no lease for more than five years of agricultural land or more than three years of non-agricultural land or a building, is valid without the Assistant Commissioner's previous sanction (section 31(1)). If he passes no final order within two months, sanction is presumed, provided the application described the transaction with sufficient accuracy (section 31(3)). He may refuse only if the transaction is likely to be prejudicial to the trust and after hearing the working trustee (section 31(4)). Chapter VI applies only to classes notified under section 1(4).
The notification point
Section 31 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. A trust planning a disposal can have the transaction reviewed through legal due diligence before the application is made.
Sub-section (1): what needs sanction
The opening words are "Subject to the directions in the instrument of trust or any directions given under this Act or any other law by any court". Then:
| Clause | Transaction | Limit as printed |
|---|---|---|
| (a) | Sale, exchange or gift | Of any immovable property, or of movable property exceeding five thousand rupees in value |
| (b) | Lease | For a period exceeding five years in the case of agricultural land; for a period exceeding three years in the case of non-agricultural land or a building |
Property belonging to a public trust is covered. A transaction of this kind "shall not be valid without the previous sanction of the Assistant Commissioner". The five-thousand-rupee figure is as printed in the published copy, and the Rules and later amendments should be checked for any change. Three consequences follow:
- Every sale, exchange or gift of immovable property needs sanction, whatever its value.
- For movable property, the value threshold applies.
- A shorter lease (five years or less for agricultural land, three years or less for other land or buildings) falls outside clause (b) on its face.
The sanction must be "previous", that is, obtained before the transaction. Our article on registering a trust deed with the Sub-Registrar deals with registering documents, which is a separate step from the sanction under this Act.
Sub-section (2): the application
An application for sanction "shall be made in the prescribed manner and form". Rule 25 prescribes it; see our article on rule 25 of the Rajasthan Public Trust Rules, 1962.
Sub-section (3): deemed sanction
Where, on an application duly made, the Assistant Commissioner does not within two months of receipt pass final orders, "it shall be presumed that he has accorded sanction in respect of that transaction, provided that the application described the transaction, with sufficient accuracy". Two points deserve care:
- The period is two months from receipt of the application, and no date is computed here.
- The presumption depends on the application having described the transaction with sufficient accuracy. A vague application does not earn deemed sanction.
Sub-section (4): grounds for refusal
The Assistant Commissioner "shall not refuse to accord sanction" unless the transaction is, in his opinion, "likely to be prejudicial to the interests of the public trust". No order refusing sanction shall be passed unless the working trustee has had a reasonable opportunity of being heard. The test is the interest of the trust, and the hearing is a condition for a refusal.
The Committee's advice
Under section 14, the Regional Advisory Committee advises the Assistant Commissioner on matters arising under Chapters VI and VII, and he may not exercise powers in those matters otherwise than in accordance with the advice, except through the Board route in section 12. Section 31 is a Chapter VI power, so the Committee's advice is part of the process. The text consulted does not say how that fits with the two-month period in section 31(3); a trustee should ask the Assistant Commissioner's office about the timetable.
What the section does not say
- It does not say what use may be made of the sale proceeds. Investment of money is in section 30.
- It does not state the consequence beyond invalidity: a transaction lacking sanction is "not valid".
- It does not define "agricultural land" or "building".
- The instrument of trust and court directions come first: the section operates "subject to" them.
Worked example
An invented Hindu charitable trust, Shri Ram Janki Nyas, Bharatpur, owns a house and some farm land. The working trustee, Mr Prakash Tiwari, wants to sell the house, lease the farm land for seven years and let a shop for two years. The sale needs sanction because it is immovable property. The seven-year lease of agricultural land exceeds five years and needs sanction. The two-year shop letting does not exceed three years for a building and falls outside clause (b). He applies in the prescribed form describing each transaction accurately: the property, the buyer, the price and the term. If the Assistant Commissioner passes no final order within two months of receipt, sanction is presumed for the transactions described with sufficient accuracy.
Practical checklist
- Confirm the notification applies Chapter VI to your trust.
- List each proposed transaction and compare it with clause (a) or (b).
- Check the trust instrument and any court directions first.
- Describe each transaction fully and accurately in the application.
- Note the date of receipt by the Assistant Commissioner.
- If a refusal is proposed, ask to be heard.
Need help with a proposed transfer or lease?
A well-described application and a clean title picture make the sanction process shorter and safer for the trustees. Our team can examine the property papers, draft the application and prepare the trustees for the hearing. Speak to us about legal due diligence before you sign any agreement.
Key takeaways
- Sale, exchange or gift of immovable property, and of movable property above the printed value, needs the Assistant Commissioner's previous sanction.
- Leases over five years (agricultural land) or three years (non-agricultural land or building) also need sanction.
- A transaction without sanction is not valid.
- Silence for two months after a duly made application is presumed sanction, if the transaction was described with sufficient accuracy.
- Sanction may be refused only where the transaction is likely to be prejudicial to the trust, after a hearing.
- Chapter VI applies only to classes notified under section 1(4).
Read next
- Rule 25 of the Rajasthan Public Trust Rules, 1962: application for sanction
- Section 30 of the Rajasthan Public Trusts Act, 1959: investment of trust money
- How to Register a Trust Deed with Sub-Registrar
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.