Yes, you can create public trust.
I am thinking about setting up a public trust in Maharashtra based on Maharashtra Public Trust Act by contributing my agricultural land as a corpus fund of the trust. Here is my idea: I will act as a settlor without any rights in the management of the trust, my two friends (all of them are agriculturists) will become trustees and they will utilize the land, and the general public in the community will become beneficiaries. The purpose of the trust will be to promote people's welfare through charitable/social/educational/religious activities. After settig up the trust, I plan to transfer the land to the trust on practical base (7/12 ownership change, mutation entry) at an appropriate timing. Is this plan feasible?
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1)you can contribute agricultural land as corpus
2) trust deed should specify the public, religious, or charitable objects of the trust, the details of the agricultural land being contributed, the names and addresses of the trustees, and the mode of succession.
3)if the trust's objective requires non-agricultural use of the land, initiate the process to get the land use converted to non-agricultural status with the local revenue authorities/District Collector.
Yes, it is legally possible, but not automatic. You must follow some key conditions under Maharashtra Public Trusts Act, 1950 and Maharashtra Tenancy & Agricultural Lands Laws.
Agricultural land can be given to a public trust, but the trust itself must be treated as an “agriculturist”.
Since your trustees are agriculturists, this requirement is generally satisfied.
You must execute a Trust Deed clearly stating:
You are the settlor
Land is being given for charitable public purpose
You will not retain control or benefit
Register the Trust with the Charity Commissioner under Section 18 of the Maharashtra Public Trusts Act.
Transfer of agricultural land to a trust requires permission under:
Section 36 (disposal of trust property) – handled by Charity Commissioner
Maharashtra Tenancy & Agricultural Lands Act – the Collector may need to approve the transfer / mutation.
After approvals, apply for Mutation Entry (7/12 extract change) to record trust as owner.
Under Section 63 of the Maharashtra Tenancy and Agricultural Lands Act, 1948:
Agricultural land cannot be transferred to a person who is not an agriculturist, or to a body that is not primarily meant for agricultural purpose, without prior permission of the Collector.
However, the proviso to Section 63(1)(c) allows exceptions, the State Government may permit transfer to a trust or institution for an educational, religious, or charitable purpose, even if the transferee is not an agriculturist.
You may:
1. Prepare draft trust deed with objects and land description.
2. Register trust under MPT Act,
3. Apply to Collector for permission under Section 63(1)(c).
4. After approval ,you may have to execute registered gift deed and then apply for mutation in 7/12.
Dear Client,
You can establish a public charitable trust in Maharashtra and be the settlor but transferring agricultural land to a trust requires seeking prior permission from the Collector. This is because, post the trust is established as a legal entity the Trust does not necessarily qualify as an agriculturist under the Maharashtra Tenancy and Agricultural Lands Act, even though the trustees may qualify as agriculturists. Given that the trust is established, you will have to obtain approval of the gift of land to the trust, after the trust is registered with the Charity Commissioner before executing the transfer and mutation (7-12 entry). If the land is to be used for "charitable infrastructure" (school, temple, community activity) NA conversion may also be required. You can follow this process (for the agricultural land usage), but you will need to seek statutory permissions for the agricultural land transfer.
I hope this response is useful. Please let us know if you have additional questions.
Yes, your plan is feasible. Under the Maharashtra Public Trusts Act, 1950, you can create a public trust by contributing agricultural land as corpus, appoint trustees, and designate the public as beneficiaries. However, ensure the land transfer complies with revenue laws, obtain Charity Commissioner registration, and make mutation entries after registration.
Your plan to set up a public charitable trust in Maharashtra and contribute your agricultural land as corpus is legally feasible, provided certain conditions and procedures are followed carefully.
There is no restriction under the Maharashtra Public Trusts Act, 1950 or the Maharashtra Tenancy and Agricultural Lands Act that prevents a settlor from donating agricultural land to a public charitable trust. A public trust is not treated as a non-agriculturist for the purpose of landholding, and since your proposed trustees are agriculturists, the trust can lawfully hold agricultural land. The trust must genuinely serve charitable purposes and not operate as a private arrangement for personal benefit.
You can act as the settlor without being involved in the management of the trust. The law permits a settlor to create a trust and leave all administrative powers to the trustees. This strengthens the character of the trust as a public charitable trust. Your intention to benefit the general public through welfare, educational, social or religious activities fully aligns with recognized charitable purposes under the MPT Act.
To establish the trust, you will need a properly drafted Trust Deed containing details of the settlor, trustees, charitable objects, powers and duties, a clear irrevocability clause, and the clause regarding the initial corpus. The application for registration is then filed with the Charity Commissioner of Maharashtra along with required documents, after which the trust receives its registration number.
You may transfer the agricultural land to the trust after it is registered. This can be done through a registered gift or settlement deed, followed by an application for mutation so the 7/12 records reflect the trust as the owner. It is permissible to create the trust with a nominal initial corpus first and transfer the land later, as you plan.
There are important compliance requirements to keep in mind. The land must be used strictly for charitable purposes and cannot be enjoyed personally by trustees or any individual. Any sale, lease or alienation of trust property requires prior permission from the Charity Commissioner under Section 36 of the MPT Act. Once you donate the land, you cannot derive any benefit from it, directly or indirectly.
Overall, your idea is workable, practical and legally allowed. It is a commonly adopted structure in Maharashtra for charitable, social and community-oriented trusts.
If you would like, I can draft the Trust Deed, the clauses for the corpus land transfer, or guide you on the application process in detail.
If you wish to contact us, you may do so on https://qrco.de/syslaw