G.O.(Ms) No.115, Constitution of Real Estate Regulatory Fund
The Housing and Urban Development [UD1(2)] Department of the Tamil Nadu Government issued Government Order (Ms.) No. 115 on 22 June 2017, approving the constitution of the Tamil Nadu Real Estate Regulatory Fund under the Real Estate (Regulation and Development) Act, 2016. The order provides an initial loan from the Chennai Metropolitan Development Authority, identifies permitted uses of the fund and establishes procedures for its administration and accounting.
What the government approved
Government Order (Ms.) No. 115, issued by the Housing and Urban Development [UD1(2)] Department on 22 June 2017, approves the constitution of the Tamil Nadu Real Estate Regulatory Fund under section 75 of the Real Estate (Regulation and Development) Act, 2016. An earlier government order dated 22 June 2017 had approved the Tamil Nadu Real Estate (Regulation and Development) Rules, 2017.
The Member-Secretary of the Chennai Metropolitan Development Authority is directed to provide an initial corpus of Rs.1 crore to the fund as a loan. A copy of the loan agreement between the Chennai Metropolitan Development Authority and the Real Estate Regulatory Authority of Tamil Nadu must be furnished to the Government.
Administration and permitted expenditure
The Tamil Nadu Real Estate Regulatory Fund is administered by a committee of members headed by the Chairman of the Real Estate Regulatory Authority of Tamil Nadu.
The fund may be used for:
- Salaries and allowances of the Chairperson, other members and the adjudicating officer.
- Salaries and allowances of officers and employees of the Real Estate Regulatory Authority of Tamil Nadu and the Appellate Tribunal.
- Administrative expenses of the Authority and the Appellate Tribunal.
- Other expenses connected with the Authority's functions and the purposes of the Real Estate (Regulation and Development) Act, 2016.
Accounting and oversight
Government Order (Ms.) No. 115 creates accounting arrangements for receipts, transfers and expenditure relating to the fund. Collections are credited under the specified Urban Development receipt head and transferred to a non-interest-bearing reserve fund in the Public Account.
Key controls include:
- Expenditure sanctioned for the Tamil Nadu Real Estate Appellate Tribunal is booked under the specified Urban Development expenditure head.
- Expenditure met from the fund is adjusted against the reserve fund through the prescribed inter-account transfer heads.
- The Secretary to Government, Housing and Urban Development Department is the estimating, reconciling and controlling authority for the new account heads.
- The relevant Pay and Accounts Officers must open the new account heads.
- At the close of each financial year, the Chairman of the Real Estate Regulatory Authority must provide the Accountant General with details of amounts credited to the fund and expenditure met from it.
Relevance to property buyers and professionals
Government Order (Ms.) No. 115 does not set property transaction charges or impose a stated payment obligation on buyers or owners. Its relevance is institutional, because it funds the Real Estate Regulatory Authority of Tamil Nadu, its staff, its adjudicating officer and the Appellate Tribunal responsible for carrying out real estate regulation.
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
Does Government Order (Ms.) No. 115 require property buyers to pay a new fee?
The order does not specify any new fee payable by property buyers. It establishes and regulates the administration and accounting of the Tamil Nadu Real Estate Regulatory Fund.
Who administers the Tamil Nadu Real Estate Regulatory Fund?
A committee of members headed by the Chairman of the Real Estate Regulatory Authority of Tamil Nadu administers the fund.
Is the Rs.1 crore initial corpus a grant from the Chennai Metropolitan Development Authority?
No. The order directs the Member-Secretary of the Chennai Metropolitan Development Authority to provide Rs.1 crore as a loan, with a copy of the loan agreement to be furnished to the Government.
What expenses can be paid from the Tamil Nadu Real Estate Regulatory Fund?
The fund can meet salaries, allowances and administrative expenses of the Real Estate Regulatory Authority of Tamil Nadu and the Appellate Tribunal, as well as other expenses connected with the Authority's functions and the purposes of the Act.
