Land Reforms, Section 37-B, Grant of Permission to Public Trusts

What the guidance covers

The Tamil Nadu Government's Land Reforms guidance on Section 37-B applies to public trusts seeking permission to hold excess land for educational or hospital purposes. The Government is the authority that grants permission, and the stated ceiling limit is nil.

A public trust must apply in Form 38 within 180 days from the date on which it acquires the land through registered documents.

Conditions attached to permission

Permission granted under Section 37-B is subject to restrictions on how the public trust may use and deal with the land:

• The permitted land must be used only for educational or hospital purposes.
• The public trust must not sell, alienate or mortgage the permitted land.
• Land proposed to be acquired for an educational institution or hospital must be fully used to establish that institution or hospital within the period specified by the Government in the permission order.
• If the permission order does not specify a period, the land must be used for the establishment within five years from the date of the order granting permission.

Land used for agricultural produce

Section 37-B permission may cover land held by a public trust to raise agricultural produce for inmates of an educational or hospital trust. In that situation:

• Permission is granted for three years.
• The Government may extend the permission from time to time.
• Each further extension cannot exceed three years.
• A substantial portion of the produce must be used for the main or ancillary purpose of the public trust.

Cancellation for breach

The Tamil Nadu Government may cancel permission for any land granted under Section 37-B if the public trust breaches a condition specified by the Government. Public trusts and professionals reviewing trust property should therefore check the permission conditions, the permitted use, the application timing and whether the land has been sold, alienated or mortgaged.