G.O.(Ms)No.768, Issue of Mortgage of Lands by Public Trusts, 2020
The Revenue and Disaster Management Department, Land Reforms Wing, issued G.O.(Ms)No.768 dated 15 December 2020 on applications by public trusts under section 37-B of the Tamil Nadu Land Reforms (Fixation of Ceiling on Land) Act, 1961. It directs that a trust may receive permission to hold land mortgaged while its application was pending, where the mortgage supports development of an educational institution or hospital run by the trust, subject to an undertaking and a No Objection Certificate from the bank.
What the government order covers
G.O.(Ms)No.768 dated 15 December 2020 addresses land held by public trusts that run educational institutions or hospitals. It deals specifically with applications seeking government permission under section 37-B of the Tamil Nadu Land Reforms (Fixation of Ceiling on Land) Act, 1961, where all or part of the land was mortgaged while the application was pending.
The Revenue and Disaster Management Department, Land Reforms Wing, issued the direction after considering the opinion of the Advocate General of Tamil Nadu and the report of the Additional Chief Secretary and Commissioner of Land Reforms.
Main decision
The Advocate General of Tamil Nadu advised that the government cannot reject an application, or recommend its rejection, solely because the land was mortgaged during the application process for legitimate business activity.
Based on that opinion, G.O.(Ms)No.768 provides that:
- Permission shall be granted to a public trust under section 37-B to hold the land even if it was mortgaged while the application was pending.
- The mortgaged land must be connected with development of an educational institution or hospital run by the trust.
- An undertaking must be obtained from the trust, educational institution or hospital.
- A No Objection Certificate must be obtained from the bank concerned.
- Permission must not compromise the purpose of the Tamil Nadu Land Reforms (Fixation of Ceiling on Land) Act, 1961.
Who is affected
G.O.(Ms)No.768 is relevant to public trusts, educational institutions and hospitals seeking section 37-B permission for land that has been mortgaged during the application process. It is also relevant to banks providing the mortgage because the bank concerned must issue a No Objection Certificate.
The Additional Chief Secretary and Commissioner of Land Reforms must send proposals complying with these conditions to the Government for permission under section 37-B. District Collectors and the listed government departments were also sent the government order.
This summary is generated from the source document to help you find what is relevant. The PDF above is authoritative. For advice on your own property, use LandLens One or speak to a qualified professional.
Common questions
Can a public trust's section 37-B application be rejected only because its land was mortgaged while the application was pending?
No. The Advocate General of Tamil Nadu stated that an application cannot be rejected, or recommended for rejection, solely on that ground when the mortgage was for legitimate business activity.
What documents are required before permission is granted for mortgaged trust land?
G.O.(Ms)No.768 requires an undertaking from the trust, educational institution or hospital and a No Objection Certificate from the bank concerned.
Does G.O.(Ms)No.768 cover trusts running educational institutions and hospitals?
Yes. It covers public trusts seeking permission to hold mortgaged land used for developing an educational institution or hospital run by the trust.
Who sends the proposal to the Government for section 37-B permission?
The Additional Chief Secretary and Commissioner of Land Reforms must send a proposal that complies with the conditions in G.O.(Ms)No.768.
