G.O.(Ms) No.115, Constitution of Real Estate Regulatory Fund, 2017
The Housing and Urban Development [UD1(2)] Department issued G.O.(Ms) No.115 on 22.06.2017, approving the constitution of the Real Estate Regulatory Fund under the Real Estate (Regulation and Development) Act, 2016. It provides for an initial loan of Rs.1.00 crore from the Chennai Metropolitan Development Authority, identifies how the fund may be used and establishes accounting and oversight arrangements.
What the government order does
G.O.(Ms) No.115 of the Housing and Urban Development [UD1(2)] Department creates the Real Estate Regulatory Fund under the Real Estate (Regulation and Development) Act, 2016. It follows the approval of the Tamil Nadu Real Estate (Regulation and Development) Rules, 2017 through G.O.(Ms).No.112, dated 22.6.2017.
The fund supports the administration and work of the Real Estate Regulatory Authority of Tamil Nadu and the Tamil Nadu Real Estate Appellate Tribunal.
Funding and administration
The financial and administrative arrangements are:
- The Member-Secretary of the Chennai Metropolitan Development Authority must provide an initial corpus of Rs.1.00 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 at an early date.
- A committee of members headed by the Chairman of the Real Estate Regulatory Authority of Tamil Nadu will administer the fund.
Permitted uses
The Real Estate Regulatory Fund may be used for:
- Salaries and allowances of the Chairperson, other members and the adjudicating officer.
- Administrative expenses, including salaries and allowances of officers and employees of the Real Estate Regulatory Authority of Tamil Nadu and the Appellate Tribunal.
- Other expenses connected with the Authority's functions and the purposes of the Real Estate (Regulation and Development) Act, 2016.
Accounts and financial oversight
G.O.(Ms) No.115 opens new government account heads for receipts, transfers, expenditure and adjustments connected with the fund. The Pay and Accounts Officers concerned are asked to open these account heads.
The Secretary to Government, Housing and Urban Development Department is designated as the Estimating, Reconciling and Controlling authority. At the end of each financial year, the Chairman of the Real Estate Regulatory Authority must provide the Accountant General (A&E), Chennai-18, with particulars of amounts credited to the fund and expenditure met from it.
Who is affected
G.O.(Ms) No.115 primarily affects the Real Estate Regulatory Authority of Tamil Nadu, the Tamil Nadu Real Estate Appellate Tribunal, the Chennai Metropolitan Development Authority and the government officers responsible for managing and accounting for the fund. It establishes institutional funding arrangements and does not specify any property transaction fee, approval requirement or payment payable by an individual buyer or owner.
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Common questions
Does G.O.(Ms) No.115 create the Real Estate Regulatory Fund?
Yes. The Housing and Urban Development [UD1(2)] Department approved the constitution of the Real Estate Regulatory Fund under the Real Estate (Regulation and Development) Act, 2016.
Who provides the initial money for the fund?
The Member-Secretary of the Chennai Metropolitan Development Authority must provide Rs.1.00 crore as a loan. The loan agreement with the Real Estate Regulatory Authority of Tamil Nadu must be furnished to the Government.
What can the Real Estate Regulatory Fund pay for?
It can meet salaries, allowances and administrative expenses of the regulatory authority and Appellate Tribunal, as well as other expenses connected with the Authority's functions and the purposes of the Act.
Does the government order require property buyers to pay a new fee?
G.O.(Ms) No.115 does not specify a new fee payable by property buyers. It deals with the fund's initial corpus, permitted expenditure, accounting and oversight.
