Sections 73 and 74 of RERA 2016: Grants and Loans by Central and State Governments

Sections 73 and 74 of the Real Estate (Regulation and Development) Act, 2016 (RERA) govern the provision of grants and loans to the Real Estate Regulatory Authority by the Central Government and the State Government, respectively. Both provisions require the relevant legislature to authorise the expenditure through appropriation before public money is provided.

Section 73 - Grants and loans by Central Government

The Central Government may, after due appropriation made by Parliament in this behalf, make to the Authority grants and loans of such sums of money as that Government may consider necessary.

Meaning: Section 73 permits, but does not compel, the Central Government to provide financial assistance to the Authority. The amount is determined by the Central Government, subject to funds being duly appropriated by Parliament. The word may signifies an enabling power rather than an automatic entitlement to a grant or loan.

Section 74 - Grants and loans by State Government

The State Government may, after due appropriation made by State Legislature by law in this behalf, make to the Authority, grants and loans of such sums of money as the State Government may think fit for being utilised for the purposes of this Act.

Meaning: Section 74 authorises the State Government to make grants and loans to the Authority after the State Legislature has made the necessary appropriation by law. Such assistance is intended for purposes of RERA. The State Government determines the amount it considers appropriate within the authorised budgetary framework.

Important legal terms

Appropriation

Appropriation is legislative authorisation to withdraw and spend public funds for specified purposes. Sections 73 and 74 make this authorisation a prerequisite for grants and loans under the respective provisions.

Grant and loan

A grant is financial assistance generally not intended to be repaid, subject to applicable conditions. A loan is financial assistance that ordinarily carries an obligation of repayment under its terms. Neither section itself specifies a fixed amount, interest rate, repayment schedule or entitlement to funding.

Authority

The Authority refers to the Real Estate Regulatory Authority established under the Act. Section 20 provides for the establishment and incorporation of the Authority to exercise the powers and perform the functions assigned by RERA.

How these provisions connect with Section 75

Section 75 requires the appropriate Government to constitute the Real Estate Regulatory Fund. Government grants received by the Authority, fees received under the Act and interest accrued on the specified amounts are credited to that Fund. The Fund is used for statutory administrative expenses and functions, subject to Section 75.

Sections 73 and 74 therefore concern the power to provide financial assistance, while Section 75 concerns the fund into which grants are credited and the purposes for which money may be applied.

Central and State Government funding: key distinctions

Section 73: Funding by the Central Government requires appropriation by Parliament.
Section 74: Funding by a State Government requires appropriation by the State Legislature by law and must be used for the purposes of RERA.
Both provisions: Allow grants and loans at the respective Government's discretion; neither mandates a particular payment or quantum.

Official statutory source

Read the Real Estate (Regulation and Development) Act, 2016 - official India Code text or consult the India Code Act record for the Act, its provisions and related legislative materials.