AAP Tax Law - Indian legal information

Section 75 of RERA 2016: Constitution of the Real Estate Regulatory Fund

Section 75 of the Real Estate (Regulation and Development) Act, 2016 establishes the Real Estate Regulatory Fund and specifies its sources of money, permitted expenditure, administration and use. The provision appears in Chapter IX, dealing with finance, accounts, audits and reports.

Meaning and purpose of Section 75

The Real Estate Regulatory Fund is a statutory fund constituted by the appropriate Government to support the functioning of the Real Estate Regulatory Authority and expenditure expressly permitted under the Act. Under the Real Estate (Regulation and Development) Act, 2016, the term appropriate Government is defined in Section 2(g), depending on the territory and circumstances concerned. The Authority is the Real Estate Regulatory Authority established under Section 20.

Section 75(1): Constitution of Fund and receipts

The appropriate Government shall constitute a fund called the Real Estate Regulatory Fund. The following amounts are credited to the Fund:

  1. Section 75(1)(a): All Government grants received by the Authority.
  2. Section 75(1)(b): Fees received under the Act.
  3. Section 75(1)(c): Interest accrued on the amounts specified in clauses (a) and (b).

The Fund therefore receives the statutory categories of grants, fees and interest; it is not an unrestricted account for every receipt arising under RERA. In particular, the treatment of penalties is separately addressed by Section 76.

Section 75(2): Purposes for which the Fund may be used

The Fund shall be applied towards:

  1. Section 75(2)(a): Salaries and allowances of the Chairperson, other Members and adjudicating officer; administrative expenses, including salaries and allowances of officers and other employees of the Authority and the Appellate Tribunal.
  2. Section 75(2)(b): Other expenses of the Authority connected with discharging its functions and carrying out the purposes of the Act.

The provision links expenditure to the statutory work of the Authority and the specified personnel and institutions. It does not give a general power to use the Fund for unrelated governmental expenditure.

Section 75(3): Administration of the Fund

The Fund is administered by a committee consisting of such Members of the Authority as the Chairperson may determine. Thus, the statute places administration with a committee of Authority Members, rather than leaving the Fund without a designated administrator.

Section 75(4): Spending from the Fund

The committee appointed under sub-section (3) shall spend money from the Fund for carrying out the objects for which the Fund was constituted. Expenditure must accordingly remain connected to those objects and the purposes specified by the Act.

How Sections 73 to 77 operate together

Sections 73 and 74 empower the Central Government and State Government, respectively, to provide grants and loans subject to the applicable legislative appropriation. Section 75 deals with the constitution and use of the Regulatory Fund. Section 76 addresses crediting sums realised by way of penalties to the relevant Consolidated Fund, while Section 77 governs budgets, accounts and audit.

Practical significance

Section 75 establishes a framework for financing RERA institutions, specifying what is credited to the Fund, what may be paid from it, and who administers it. State and Union Territory rules and financial procedures may provide additional implementation details, but cannot displace the statutory requirements.

Official legislative reference

For the authoritative text and applicable amendments, consult India Code: Real Estate (Regulation and Development) Act, 2016 and the Ministry of Housing and Urban Affairs. Check the applicable State or Union Territory RERA rules for local administration.