This paper seeks to examine the issues emerging from the crafting of institutional arrangement for the management of village common lands. This has been done by analysing six tree growers' co-operatives (co-ops) formed by the National Tree Growers' Co-operative Federation in India. These co-ops are involved in the rehabilitation and management of degraded village common lands. The study revealed that the various issues confronted by co-ops in the management of village plantations are encroachment of plantation sites: distribution of benefits accruing from the plantations; and geographical configuration of hamlets and plantation sites. It was also found that the formation of co-ops is hampered by the problems in acquiring degraded village common lands de jure owned by the government. These issues are also affecting the Joint Forest Management programmes in India. The paper argues that there is a need to clearly define the role of implementing agency and the government agencies, and also that the co-ops should be provided more flexibility to tackle these issues.