KARNATAKA REAL ESTATE REGULATORY AUTHORITY v. NONE

The learned counsel Sri I S Devaiah, appearing for the petitioner/Authority would contend that the petitioner is being 5 treated as a wing of the Government by the State. It is an independent statutory authority created under the Act. The Act directs that the financial autonomy should be at the hands of the Authority. The Authority is empowered to collect fee for the service it provides which constitutes major source of income to the Authority and the said fee gets into the consolidated Fund of the State Government. If it gets into the consolidated Fund of the State, it does not earn any interest. Therefore, the submission is that the funds collected by the Authority should earn interest and all of which should be permitted to be operated by the Authority. It is submitted that every other State Government has framed Rules to operate the Fund and have given financial autonomy to the respective Authorities under the Act in each of the States.

Per contra, the learned Additional Advocate General would contend that, if the submission of the petitioner is accepted, every amount coming to the consolidated Fund of the State will become an interest bearing amount which would have catastrophic effect upon running of the economy of any State. It is his submission that collection of fee and that getting into the consolidated Fund of the 6 State is what the Act itself indicates. What the Act indicates is that the appropriate Government shall constitute a Fund. The Fund is constituted and as and when bills are raised by the Authority, no questions are asked and everything is cleared. Therefore, the learned Additional Advocate General would submit that what is the prejudice caused to the Authority is not even projected. He would contend that there would be no delay in payment and it is not the allegation that the State does not process papers and clear the bills submitted by the Authority. He seeks dismissal of the petition.

I have given my anxious consideration to the submissions made by the respective learned counsel and have perused the material on record.

The afore-narrated facts would lead to the issue being in a narrow compass. What is necessary is, noticing of the statutory provision. Section 75 of the Act reads as follows: “75. Constitution of Fund.—(1) The appropriate Government shall constitute a Fund to be called the 'Real Estate Regulatory Fund’ and there shall be credited thereto,— 7 (a) all Government grants received by Authority; (b) the fees received under this Act; (c) the interest accrued on the amounts referred to in clauses (a) to (b). (2) The Fund shall be applied for meeting— (a) other Members, the salaries and allowances payable to the Chairperson adjudicating officer and the administrative expenses allowances payable to the officers and other employees of the Authority and the Appellate Tribunal; including salaries (b) the other expenses of the Authority connection with the discharge of its functions and for the purposes of this Act.

The issue is, whether the Fund so constituted should be permitted independently to be operated by the Authority. Therefore, it becomes germane to notice the impugned order. The impugned order is dated 26-03-2021. It reads as follows: “PÀ£ÁðlPÀ ¸ÀPÁðgÀzÀ £ÀqÀªÀ½UÀ¼ÀÄ «µÀAiÀÄ: PÀ£ÁðlPÀ jAiÀįï J¸ÉÖÃmï ¤AiÀÄAvÀæt ¥Áæ¢üPÁgÀPÉÌ §rØ ¸À»vÀ gÉÃgÁ ¤¢ü SÁvÉ §zÀ¯ÁV ºÉƸÀzÁV §rØ gÀ»vÀ “«ÄøÀ®Ä ¤¢ü” SÁvÉAiÀÄ£ÀÄß ¯ÉPÀÌ ²Ã¶ðPÉ “8235-00-200-0-22” vÉgÉAiÀÄĪÀ §UÉÎ. - - - - - - NzÀ¯ÁVzÉ:

¸ÀPÁðgÀzÀ DzÉñÀ ¸ÀASÉå:ªÀE4 gÉÃgÁ 2017, ¢£ÁAPÀ: 22.05.2018. 11

¥ÀæzsÁ£À ªÀĺÁ¯ÉÃR¥Á®gÀÄ (J. ªÀÄvÀÄÛ E.), PÀ£ÁðlPÀ, ¨ÉAUÀ¼ÀÆgÀÄ gÀªÀgÀ ¥ÀvÀæ ¸ÀASÉå: Deposit I / B/2020-21/52, ¢£ÁAPÀ: 08/09.02.2021. ¸ÀPÁðgÀzÀ C¢üãÀ PÁAiÀÄðzÀ²ð, DyðPÀ E¯ÁSÉ (ªÉZÀÑ – 3 ªÀÄvÀÄÛ 9), ¨ÉAUÀ¼ÀÆgÀÄ gÀªÀgÀ C£À¢üPÀÈvÀ n¥Ààt ¸ÀASÉå:DE 48 ªÉZÀÑ – 9/2021, ¢£ÁAPÀ:02.03.2021. ¥Àæ¸ÁÛªÀ£É: ªÉÄÃ¯É NzÀ¯ÁzÀ (1) gÀ ¸ÀPÁðgÀzÀ DzÉñÀzÀ°è jAiÀįï J¸ÉÖÃmï (¤AiÀÄAvÀæt ªÀÄvÀÄÛ C©üªÀÈ¢Þ) C¢ü¤AiÀĪÀÄ, 2016gÀ PÀ®A 75(1) gÀ ¥ÀæPÁgÀ PÀ£ÁðlPÀ jAiÀįï J¸ÉÖÃmï ¤AiÀÄAvÀæt ¥Áæ¢üPÁgÀzÀ ºÀtPÁ¹£À ¤ªÀðºÀuÉUÁV “PÀ£ÁðlPÀ jAiÀįï J¸ÉÖÃmï ¤AiÀÄAvÀæt ¤¢ü” ºÉ¸Àj£À°è §rØ ¸À»vÀ ¤¢ü SÁvÉAiÀÄ£ÀÄß ¯ÉPÀÌ ²Ã¶ðPÉ “8342-00-120-0-02” gÀr ¤AiÀĪÀiÁ£ÀĸÁgÀ ¨ÉAUÀ¼ÀÆgÀÄ £ÀUÀgÀ f¯Áè ReÁ£ÉAiÀÄ°è vÉgÉAiÀÄ®Ä ¸ÀPÁðgÀzÀ C£ÀĪÉÆÃzÀ£ÉAiÀÄ£ÀÄß ¤ÃqÀ¯ÁVzÉ. ¸ÀzÀj DzÉñÀzÀ°è, C£ÀÄzÁ£ÀUÀ¼ÀÄ, ±ÀÄ®ÌUÀ¼À£ÀÄß gÉÃgÁ ¤¢üUÉ dªÀiÁ ªÀiÁqÀvÀPÀÌzÉÝAzÀÄ ºÁUÀÆ EzÀgÀ ªÉÄð£À §rØAiÀÄÆ ¸ÀºÀ ¤¢üAiÀÄ ¨sÁUÀªÁVgÀĪÀÅzÀjAzÀ, ¹éÃPÀÈw ¯ÉPÀÌ ²Ã¶ðPÉ “0216-02- 800-0-01” gÀrAiÀÄ°è ¸ÀAUÀæºÀªÁUÀĪÀ ±ÀÄ®ÌUÀ¼À£ÀÄß gÉÃgÁ ¤¢üUÉ dªÀiÁ ªÀiÁqÀĪÀAvÉ ¸ÀÆa¸À¯ÁVzÉ. ¥ÀæzsÁ£À ªÀĺÁ¯ÉÃR¥Á®gÀÄ, PÀ£ÁðlPÀ, ¨ÉAUÀ¼ÀÆgÀÄ gÀªÀgÀÄ DyðPÀ E¯ÁSÉUÉ «¼Á¹¹ §gÉzÀ ªÉÄÃ¯É NzÀ¯ÁzÀ (2) gÀ ¥ÀvÀæzÀ°è, ¸ÀzÀj PÀbÉÃjUÉ DyðPÀ E¯ÁSÉAiÀÄÄ §gÉ¢gÀĪÀ ¥ÀvÀæ ¸ÀASÉå: DE 331 ªÉZÀÑ-9 / 2020, ¢£ÁAPÀ:03.02.2021 £ÀÄß G¯ÉèÃT¸ÀÄvÁÛ ºÁUÀÆ CzÀgÀ°è gÉÃgÁ ªÀåªÀºÁgÀUÀ¼À£ÀÄß ¤ªÀð»¸À®Ä ¯ÉPÀÌ ²Ã¶ðPÉ “8235” gÀr §rØ gÀ»vÀ «ÄøÀ®Ä ¤¢ü SÁvÉAiÀÄ£ÀÄß vÉgÉAiÀÄ®Ä PÉÆÃjgÀĪÀÅzÀ£ÀÄß ¥Àæ¸ÁÛ¦¸ÀÄvÁÛ, §rØ gÀ»vÀ «ÄøÀ®Ä ¤¢ü SÁvÉAiÀÄ£ÀÄß ¯ÉPÀÌ ²Ã¶ðPÉ “8235-00-200-0-22” gÀrAiÀÄ°è gÉÃgÁ ªÀåªÀºÁgÀUÀ¼À£ÀÄß ¤ªÀð»¸À®Ä ªÀĺÁ¯ÉÃR¥Á®gÀ PÀbÉÃjAiÀÄ°è vÉgÉAiÀÄvÀPÀÌzÉÝAzÀÄ w½¹gÀÄvÁÛgÉ. EzÀPÁÌV ªÉÄÃ¯É ºÉüÀ¯ÁzÀ «ÄøÀ®Ä ¤¢ü SÁvÉ eÉÆvÉUÉ oÉêÀt ¯ÉPÀÌ ²Ã¶ðPÉ “8342-00-120-0-02” gÀ°è ®¨sÀå«gÀĪÀ ¨ÁQUÀ¼À£ÀÄß «ÄøÀ®Ä ¤¢üAiÀÄ ¯ÉPÀÌ ²Ã¶ðPÉ “8235-00-200-0-22” UÉ ªÀUÁð¬Ä¸À®Ä O¥ÀZÁjPÀ ¸ÀPÁðj DzÉñÀªÀ£ÀÄß ºÉÆgÀr¸ÀĪÀAvÉ PÉÆÃjgÀÄvÁÛgÉ ºÁUÀÆ ¸ÀPÁðgÀzÀ DzÉñÀªÀÅ ¹éÃPÀÈvÁªÁzÀ §½PÀ ¸ÀzÀj «ÄøÀ®Ä ¤¢ü SÁvÉAiÀÄ£ÀÄß ªÀÄÄA¢£À gÉÃgÁ ªÀåªÀºÁgÀUÀ½UÉ ¸ÀA§A¢ü¹zÀAvÉ vÀªÀÄä PÀbÉÃjAiÀÄ°è vÉgÉAiÀįÁUÀĪÀÅzÉAzÀÄ w½¹gÀÄvÁÛgÉ. ªÉÄÃ¯É NzÀ¯ÁzÀ (3) gÀ C£À¢üPÀÈvÀ n¥ÀàtÂAiÀÄ°è, ¸ÀzÀj ¸ÀPÁðj DzÉñÀ ºÁUÀÆ ¥ÀæzsÁ£À ªÀĺÁ¯ÉÃR¥Á®gÀ ¥ÀvÀæªÀ£ÀÄß G¯ÉèÃT¸ÀÄvÁÛ, ¥Àæ¸ÀÄÛvÀ gÉÃgÁ ¥Áæ¢üPÁgÀPÉÌ ¸ÀÈf¸À¯ÁVgÀĪÀ “PÀ£ÁðlPÀ jAiÀįï J¸ÉÖÃmï ¤AiÀÄAvÀæt ¤¢ü” (¯ÉPÀÌ ²Ã¶ðPÉ 8342-00-120-0-02)SÁvÉ §zÀ¯ÁV «ÄøÀ®Ä ¤¢ü (Reserve Fund) (“8235-00-200-0-22”) C£ÀÄß ¸ÀÈf¸À®Ä ªÀĺÁ¯ÉÃR¥Á®gÀÄ ¸ÀºÀªÀÄw ¤ÃrgÀÄvÁÛgÉ JAzÀÄ ¸ÀPÁðgÀzÀ C¢üãÀ PÁAiÀÄðzÀ²ð, DyðPÀ E¯ÁSÉ (ªÉZÀÑ-3 ªÀÄvÀÄÛ 9), ¨ÉAUÀ¼ÀÆgÀÄ gÀªÀgÀÄ w½¹gÀÄvÁÛgÉ. ªÀÄÄAzÀĪÀgÉzÀÄ, CzÀgÀAvÉ gÉÃgÁ ¥Áæ¢üPÁgÀPÉÌ ¤¢ü SÁvÉ (¯ÉPÀÌ ²Ã¶ðPÉ “8342-00- 120-0-02) §zÀ¯ÁV ªÉÄøÀ®Ä ¤¢ü SÁvÉAiÀÄ£ÀÄß ºÉƸÀzÁV ¯ÉPÀÌ ²Ã¶ðPÉ “8235-00-200-0- 12 22” gÀr §rØ gÀ»vÀ «ÄøÀ®Ä ¤¢ü SÁvÉAiÀÄ£ÀÄß vÉgÉAiÀÄĪÀAvÉ ºÁUÀÆ ¥Àæ¸ÀÄÛvÀ ¤¢ü SÁvÉAiÀÄ°è ¸ÀAUÀæºÀªÁVgÀĪÀ ±ÀÄ®Ì ªÀÄvÀÄÛ §rØAiÀÄ£ÀÄß ºÉƸÀzÁV ¸ÀÈf¸À¯ÁUÀĪÀ “«ÄøÀ®Ä ¤¢ü” SÁvÉUÉ ªÀUÁð¬Ä¸ÀĪÀAvÉ DzÉñÀ ºÉÆgÀr¸À®Ä ªÀ¸Àw E¯ÁSÉUÉ w½¹gÀÄvÁÛgÉ. ºÁUÀÆ DzÉñÀ ºÉÆgÀr¹zÀ £ÀAvÀgÀ gÉÃgÁ ¥Áæ¢üPÁgÀPÉÌ ¯ÉPÀÌ ²Ã¶ðPÉ “0216-02-800-0-01” gÀr ¥ÁªÀw¹PÉƼÀÄîªÀ ±ÀĮ̪À£ÀÄß gÉÃgÁ ¥Áæ¢üPÁgÀzÀ «ÄøÀ®Ä ¤¢üUÉ ªÀUÁðªÀuÉ ªÀiÁqÀĪÀAvÉ ºÁUÀÆ ªÉÄîÌAqÀAvÉ ¸ÀPÁðj DzÉñÀªÀ£ÀÄß PÀÆqÀ¯Éà ºÉÆgÀr¸ÀĪÀAvÉ ªÀ¸Àw E¯ÁSÉAiÀÄ£ÀÄß PÉÆÃjgÀÄvÁÛgÉ. CzÀgÀAvÉ, F PɼÀPÀAqÀAvÉ DzÉò¹zÉ. ¸ÀPÁðgÀzÀ DzÉñÀ ¸ÀASÉå:ªÀE 39 gÉÃgÁ 2021, ¨ÉAUÀ¼ÀÆgÀÄ, ¢£ÁAPÀ:26.03.2021. ¥Àæ¸ÁÛªÀ£ÉAiÀÄ°è «ªÀj¹gÀĪÀ CA±ÀUÀ¼À »£É߯ÉAiÀÄ°è, PÀ£ÁðlPÀ jAiÀįï J¸ÉÖÃmï ¤AiÀÄAvÀæt ¥Áæ¢üPÁgÀPÉÌ ¯ÉPÀÌ ²Ã¶ðPÉ “8342-00-120-0-02” gÀr vÉgÉAiÀįÁVgÀĪÀ §rØ ¸À»vÀ PÀ£ÁðlPÀ jAiÀįï J¸ÉÖÃmï ¤AiÀÄAvÀæt ¤¢ü” SÁvÉAiÀÄ §zÀ¯ÁV ºÉƸÀzÁV ¯ÉPÀÌ ²Ã¶ðPÉ “8235-00-200-22” gÀr §rØ gÀ»vÀ “«ÄøÀ®Ä ¤¢ü” SÁvÉAiÀÄ£ÀÄß F PɼÀPÀAqÀ ¸ÀÆZÀ£ÉUÀ½UÉƼÀ¥ÀlÄÖ vÉgÉAiÀÄ®Ä ¸ÀPÁðgÀzÀ C£ÀĪÉÆÃzÀ£ÉAiÀÄ£ÀÄß ¤ÃrzÉ:- (1) (2) ¥Àæ¸ÀÄÛvÀ PÀ£ÁðlPÀ jAiÀįï J¸ÉÖÃmï ¤AiÀÄAvÀæt ¥Áæ¢üPÁgÀzÀ ¤¢ü SÁvÉAiÀÄ°è ¸ÀAUÀæºÀªÁVgÀĪÀ ±ÀÄ®Ì ºÁUÀÆ §rØAiÀÄ£ÀÄß ºÉƸÀzÁV ¸ÀÈf¹zÀ “«ÄøÀ®Ä ¤¢ü” SÁvÉUÉ ªÀUÁð¬Ä¸ÀvÀPÀÌzÀÄÝ; ºÁUÀÆ gÉÃgÁ ¥Áæ¢üPÁgÀPÉÌ ¯ÉPÀÌ ²Ã¶ðPÉ “0216-02-800-0-01” gÀr ¥ÁªÀw¹PÉƼÀÄîªÀ ±ÀĮ̪À£ÀÄß ¸ÀºÁ ºÉƸÀzÁV ¸ÀÈf¹zÀ gÉÃgÁ ¥Áæ¢üPÁgÀzÀ “«ÄøÀ®Ä ¤¢ü” SÁvÉUÉ ªÀUÁð¬Ä¹PÉƼÀîvÀPÀÌzÀÄÝ.

F DzÉñÀªÀ£ÀÄß, DyðPÀ E¯ÁSÉAiÀÄ C£À¢üPÀÈvÀ n¥Ààt ¸ÀASÉå: DE 48 ªÉZÀÑ - 9/2021, ¢£ÁAPÀ: 02.03.2021 gÀ£ÀéAiÀÄ ºÉÆgÀr¸À¯ÁVzÉ. PÀ£ÁðlPÀ gÁdå¥Á®gÀ DzÉñÁ£ÀĸÁgÀ ªÀÄvÀÄÛ CªÀgÀ ºÉ¸Àj£À°è, ¸À»/- (ºÉêÀiÁªÀw) ¸ÀPÁðgÀzÀ C¢üãÀ PÁAiÀÄðzÀ²ð-1, ªÀ¸Àw E¯ÁSÉ.” The Government Order indicates that the amount in deposit of what is received into the coffers of the Authority would earn no interest. 13

It now becomes germane to notice identical rules framed by respective State Governments again exercising their power under the Act. The Government of Chhattisgarh has notified Chhattisgarh Real Estate Regulatory Fund Rules, 2017. The said Rules read as follows: “Chhattisgarh Real Estate Regulatory Fund Rules, 2017 Naya Raipur, the 13th November 2017 Notification No. F1-22/2017/32-In exercise of the powers conferred by Section 84 read with Section 75 and sub-clause (iv) of clause (g) of Section 2 of the Real Estate (Regulation and Development) Act, 2016 (16 of 2016), the State Government, hereby, makes the following rules relating to the Chhattisgarh Real Estate Regulatory Fund, namely:-

1. Short title and Commencement.- RULES (1) These rules may be called the Chhattisgarh Real Estate Regulatory Fund Rules, 2017. (2) It shall come into force from the date of its publication in the Official Gazette.

2. Definitions. In these rules, unless the context otherwise requires,- (a) "Act" means the Real Estate (Regulation and Development) Act, 2016 (16 of 2016): (b) 'Authority' means the Chhattisgarh Real Estate Regulatory Authority: 14 (c) "Chairperson" means the Chairperson of Chhattisgarh Real Estate Regulatory Authority, (d) Regulatory Fund; "Fund" means the Chhattisgarh Real Estate (e) "Rule" means the Chhattisgarh Real Estate Regulatory Fund Rules, 2017.

3. Establishment of the Fund.- (1) The following shall be deposited in the fund, namely:- (a) grants and loans received from the Central Government and the State Government: (b) fees received under the Act; (c) interest received on the amount referred to in clause (a) and (b); (d) any other amount received by the order of the State Government. (2) Authority shall open a bank account in any Scheduled Bank for the operation of the fund. The fund shall be administered by a Committee of such members of the Authority, as may be determined by the Chairperson. (3) The Committee shall utilize the Fund to carry out the objects for which the fund has been constituted.

4. Utilization of the Fund.- Fund shall be utilized.- (a) for payment of salaries and allowances to the Chairperson, members, officers, employees of the Authority: (b) for payment of salaries to the officers and employees of the Appellate Tribunal; (c) for payment of administrative expenses of the Appellate Tribunal; 15 (d) for payment of any other expenses accrue in discharging the functions of the Authority for the purpose of the Act.

5. Preparing the Budget.- (1) The Authority shall prepare an annual budget to meet the expenses to be incurred in the financial year. (2) The Authority shall maintain a proper account of the budget and shall maintain record thereof. (3) The Authority shall maintain an annual statement of accounts in such form as may be prescribed by the State Government in consultation with the Auditor General of India.

6. Budget, Accounts and Audit.- (1) The Authority shall prepare a budget, maintain proper accounts and other relevant records and prepare an annual statement of accounts in such prescribed form as may be prescribed by the State Government in consultation with the Auditor General of India. (2) The accounts of The Authority shall be audited by the Comptroller and Auditor General of India or such Authority as may be specified by him. (3) The Authority shall prepare an annual report in which a description of the activities of the conderned year shll be included. The Annual report along with the audited annual accounts of the Authority shall be submitted to the State Government it before the State Legislative Assembly. laying

7. Power to make Regulations. The Committee may may make regulations for the purposes carrying out the provisions of these rules.

8. Dissolution of the Fund.- In the event of dissolution of the Fund, the Government shall be the successor of all assets of the Fund at the time of dissolution. 16

9. Power to remove difficulties. The State Government, may issue instructions not inconsistent with the provisions of these rules, from time to time, with a view to remove anomalies, doubts and difficulties.” (Sic) The Government of Himachal Pradesh has also notified Rules for the purpose of administration of the Fund, as found in Section 75 of the Act. It reads as follows: “(Authoritative English this Department Notification No. HSG-A(3)-7/2020 dated 7th May, 2022 as required under Clause (3) of article 348 of the Constitution of India) text of GOVERNMENT OF HIMACHAL PRADESH HOUSING DEPARTMENT No. HSG-A(3)-7/2020 Dated: Shimla-2, the 7th May, 2022. NOTIFICATION In exercise of powers conferred by clause (zf) of sub- section (2) of section 84 read with section 75 of the Real Estate (Regulation and Development) Act, (Act No. 16 of 2016) the Governor, Himachal Pradesh, is pleased to make the following rules for the constitution of the "Himachal Pradesh Real Estate Regulatory Fund", namely:-

1. Short title and commencement:- (1) These rules may be called constitution and manner of application of "Himachal Pradesh Real Estate Regulatory Fund, Rules, 2022. (2) These rules shall come into force from the date of publication in the Rajpatra (e-Gazette), Himachal Pradesh. 17

2. Definitions:- In these rules, unless the context otherwise requires,- (a) "Act" means Development) Act, 2016; the Real Estate (Regulation and (b) "accounting period" means the period for which the accounts have to be prepared by the Authority and shall be concurrent with the Financial Year; (c) "Drawing and Disbursing Officer" (DDO) means officer authorized by the Authority or the committee constituted as per the provisions of sub-section (3) of section 75 of the Act to draw money from the Fund and make authorized payments on behalf of the Authority; (d) "expenses" means the expenses to be incurred by the Authority in the discharge of its functions under the Act; (e) "employees" means the employees of the Authority; (f) "Fund" means the Himachal Pradesh Real Estate Regulatory Fund to be constituted as per provisions of sub- section (1) of section 75 of the Act; (g) "Financial Year" means a period not exceeding twelve calendar months commencing from 1st April of a year and concluding on 31st March of the next year; (h) "Government" means the Government of Himachal Pradesh; and (i) "Remuneration" means the remuneration to be paid to the Chairperson, Members, and Officers and employees of the Authority; (2) Words or expressions used in these rules and not defined herein but defined in the Act shall have the same meaning(s) as respectively assigned to them in the Act.

3. Constitution of Fund:- (1)The Government hereby constitutes a Fund to be called the Himachal Pradesh Real Estate Regulatory Fund in terms of the provisions of sub-section (1) of section 75 of the Act. (2) The Fund shall comprise of, 18 (a) all Government grants received by the authority; (b) fees received by the Authority under the Act; (c) the interest accrued on the amounts referred to in clause (a) and (b).

4. Application of Fund The fund shall be applied for meeting the following expenses:- (i) The salaries and allowances payable Chairperson, Members, the Adjudicating Officer and the administrative expenses including the salaries and allowances payable to the officers and other employees of the Authority and the Appellate Tribunal. The Authority will meet expenditure for only those posts which are approved by the Government of Himachal Pradesh under section 28 of the Act (Act No 16 of 2016). (ii) Honorarium to be paid to the members of Advisory Committee constituted by the Authority. (iii) Administrative and general expenses. (iv) Repairs and maintenance of office premises and payment of rent etc for hiring premises as per approved norms. (v) (vi) Consultancy expenditure. Legal expenses, which include the payment of fees to the counsels engaged by the Authority. (vii) Loans and advances to the staff. (viii) Contribution to staff welfare measures. (ix) Statutory deposits. (x) Purchase of assets and other capital items, etc. (xi) Fees for the audit of the accounts of the Authority. 19 (xii) The expenses of the Authority in discharge of its functions under section 34 and 35 of the Act. (xiii) Miscellaneous and other expenses.

5. Operation of the Fund.-(1) The Fund shall be administered by the Authority through a committee of such members as may be determined by the Chairperson. (2) The grants allocated by the Government under budgetary provisions shall be arranged to be drawn and deposited into the Fund by the Drawing and Disbursing Officer of the committee constituted under sub-rule (1). (3) All funds received shall be deposited into the Authority's account in the bank and shall not be withdrawn except on approval by the officers authorized by the committee. (4) The officer designated shall be responsible for monitoring the proper transactions of receipts and payments on behalf of the committee constituted by the Authority.

6. Closure of Fund (1) The Fund shall remain operational as long as the relevant provisions of the Act remain in force. (2) The remaining balance under the fund or when the fund is no longer required shall be remitted into the Government Account within three months from the date of closure of the fund. By order (Akshay Sood) Secretary (Housing) to the Government of Himachal Pradesh” The State of Madhya Pradesh has also framed Rules viz., Real Estate Regulatory Fund Rules, 2017. It reads as follows: 20 “REAL ESTATE REGULATORY FUND RULES, 2017 PREAMBLE In exercise of the powers conferred by section 84 read with sub- clause (iv) of clause (g) of section 2 of the Real Estate (Regulation and Development) Act, 2016 (16 of 2016), the State Government, hereby, makes the following rules relating to Real Estate Regulatory Fund, Rules, namely:- CHAPTER-I PRELIMINARY Toc

1. Short title and Commencement.- (1) These rules may be called the Real Estate Regulatory Fund Rules, 2017. (2) They shall come into force from the date of its publication in the Madhya Pradesh Gazette. Toc

2. Definitions.- (1) In these rules, unless the context otherwise requires,- (a) "Act" means the Real Estate (Regulation and Development) Act, 2016 (16 of 2016); (b) "Authority" means the Madhya Pradesh Real Estate Regulatory Authority; (c) "Chairperson" means the Chairperson of the Estate Regulatory Pradesh Real Madhya Authority; (d) "Fund" means the Madhya Pradesh Real Estate Regulatory Fund; 21 (e) "Rule" means the Madhya Pradesh Real Estate Regulatory Fund Rules, 2017. Toc

3. Establishment of the Fund.- (1) The following shall be deposited in the fund- (a) The Grants received from the Central Government and the State Government. (b) The fees received under the Act. (c) The interest received on the amount referred to in clause (a) and (b). (d) Any other amount received by the order of the State Government. (2) Authority shall open a bank account in any Scheduled Bank for the operation of the fund. The fund shall be administered by a Committee of members of the Authority as may be determined by the Chairperson (3) The Committee shall utilize the Fund to carry out the objects for which the fund has been constituted.

4. Utilization of the Fund The fund shall be utilized for the following purposes:- (a) for the payment of salary and allowances to the Chairperson, member officers, employees of the Authority; (b) for the payment of salary to the officers and employees of the Appellate Tribunal; (c) for the payment of administrative expenses of the Appellate Tribunal; 22 (d) for the payment of any other expenses accrued in discharging the functions of the authority for the purpose of the Act. Toc

5. Preparing the Budget- (1) The Authority shall prepare an annual budget to meet the expenses to be incurred in the financial year. (2) The authority shall maintain a proper account of the budget and shall maintain record thereof, (3) The authority shall maintain an annual statement of accounts in such form as may be prescribed by the State Government in consultation with the Auditor General of India. Toc

6. Budget, Accounts and Audit.- (1) (2) (3) The Authority shall prepare a budget, maintain proper accounts and other relevant records and prepare an annual statement of accounts in such prescribed form as may be prescribed by the State Government in consultation with the Auditor General of India. The accounts of the Authority shall be audited by the Comptroller and Auditor General of India or such Authority specified by him. The Authority shall prepare an annual report in which a description of the activities of the concerned year shall be included. The Annual report along with the audited annual accounts of the Authority shall be submitted to the State Government for laying it before the State Legislative Assembly. Toc

7. Power to make Regulations.- The Committee may by publication of notification in the Official Gazette, may make regulations 23 for the purposes carrying out the provisions of these rules. Toc

8. Dissolution of the Fund.- In the event of dissolution of the Fund, The Government shall be the successor of all assets of the Fund at the time of dissolution. Toc

9. Power to remove difficulties.- The State Government, may issue instructions not inconsistent with the provisions of these rules from time to time with a view to remove anomalies, doubts and difficulties. Toc” The State of Maharashtra has also framed its Rules, the features of which are as follows:

Annexure to the Government Resolution No REA 2016/C.R.No.135/DVP-2 dated 18th March, 2017 of the Housing Department Constitution and Operations of Real Estate Regulatory Fund Constitution of Fund In exercise of the powers conferred by sub-section (1) of section 75 of the Act, the State Government hereby constitute a Fund to be called as "Real Estate Regulatory Fund

and directs that the bank account of the Authority existing on the date of 24 Amounts to be credited to the Fund commencement of these rules shall stand converted as the main account of the Real Estate Regulatory Fund. Following amounts shall be credited the Real Estate Regulatory Fund: (a) all Government grants received Authority: (b) the fees received under the Act; (c) all sums realised by way of penalties, imposed by the Maharashtra Real Estate Appellate Maharashtra Real Estate Regulatory Authority Tribunal (d) the interest accrued on the amounts referred in clause (a), (b) and (c) 2) Objects of the Fund The Funds shall be applied for meeting- (a) the salaries and allowances payable to Chairperson and other Members, adjudicating officers and administrative expenses salaries allowances payable to officers and other employees of the Authority and the Appellate Tribunal; including (b) the other expenses of the Authority in connection with operation of the Fund: 25 the discharge of its functions and for the purposed of this Act.

The 3) (a) Fund administered by a Committee of Members of the Authority as may be determined by Chairperson. (b) The Fund shall be operated jointly under the signature of two Members of the Authority as are authorised in witting by the Chairperson. (c) The Authority may open and maintain and operate account in any scheduled Commercial Bank headquarter of the Real Estate Regulatory Authority; is situated near (d) Any sum received by the Authority shall be credited to the Fund as early as possible but in any event not later than the next working day. (e) Withdrawals or expenditures from the Fund shall be done only against authorisation and after sanction from the Chairperson. (f) All sums realised, by way of imposed by penalties, Appellate Tribunal Authority, shall be credited to such accounts as specified by the State Government.” 26 The State of Tamil Nadu has also created a Fund and permitted the Authority to operate the Fund, the details of which are as follows: “Sub: TNRERA-Request for furnishing of details regarding monitoring of Real Estate Regulatory Authority Fund- Regarding. Ref: Your letter No.K-RERA/Accounts/13/2021-22/4507, dated 16.10.2021. - - - With reference to your letter cited regarding utilisation and administration of RERA fund the following replies are furnished in respect of Tamil Nadu Real Estate Regulatory authority.

1. The fund is under the control of TNRERA.

2. The TNRERA fund is kept in the bank and operated by TNRERA.

3. The fund is utilised for operational expenditure ie. Pay and allowances, rent, office maintenance and other contingent expenditure of Tamil Nadu Real Estate Regulatory Authority and Tamil Nadu Real Estate Appellate Tribunal.” The Government of Gujarat has also created a Fund and permitted its operation by the Authority. It reads as follows: “Government of Gujarat Urban Development and Urban Housing Department Resolution No. MIS/102017/978/L 27 Sachivalaya, Gandhinagar Dated: 22/3/2017 Read: (1) Ministry of Law and Justice, Government of India, New Delhi's Notification dated: 26th March, 2016 (2) Urban Development and Urban Housing Department Notification No.GH/V/92 of 2017/MIS-102017- 328145-L,, dated: 4th May, 207 Pre-amble: The Government of India has published the Real Estate (Regulation and Development) Act, 2016 vide Notification dated: 26th March, 2016 as referred at Sr. No. (1) hereinabove and the same has come into force in Gujarat State with effect from 1st May, 2017. As provided in Section 84 of the aforesaid Act, the Government of Gujarat has published the Gujarat Real Estate (Regulation and Development) (General) Rules, 2017 vide Urban Development and Urban Housing Department's Notification dated: 4th May, 207 as referred at Sr. No. (2) hereinabove. As provided in Section 75 of the Real Estate (Regulation and Development) Act, 2016, the constitution the Real Estate Regulatory Fund was under consideration of the State Government. After careful consideration the State Government resolves as under:- RESOLUTION

1. Constitution of the Fund: The fund is hereby constituted as required under Section 75 of the Act, the present bank accounts of the commission shall stand converted to the fund with immediate effect.

2. Contribution to the Fund: The Fund shall consist of the following (1) All grants and loans received by the Authority from the State Government under Section 74 of the Act. 28 (2) All fees received by the Authority under the Act, Rules and Regulations. (3) All sums realised by way of penalties under sub section (2) of the section 76 of the Act for the period of 2 years from 1st June 2017. However, the credit of receipts under sub-clause (3) above to the Gujarat RERA Fund will be re- evaluated by the Gujarat Government after completion of two years from the Inception of this Fund. (4) The interest accrued on the amounts referred to in 1,2 and 3 above.

3. Application of the Fund: (1) The fund shall be applied for meeting all the expenses referred to in subsection(2) of Section 75 of the Act. (2) The expenses for the purposes authorised by the Act.

4. Operation of the Fund! (1) (2) The Fund shall be administered by a Committee of such Members of the Authority as be determined by the Chairperson. The Fund shall be operated by the Drawing and Disbursing officer of to be so nominated by the Secretary of the Authority. the Authority (3) Any receipt of the Authority shall be credited to the Fund. (4) Withdrawal from the Fund shall be only against proper authorisation and after sanction from the appropriate authority.

5. Place of Operation: 29 The Fund shall be operated in any nationalized bank at the Headquarter of the Authority,

6. Budget of Authority: The Authority shall prepare its budget, for the next financial year in accordance with Rule 13 of Gujarat Real Estate (Regulation and Development) (Matters relating to Real Estate Regulatory Authority) Rules, 2016 and Section 77 of the Act.

7. Rules of expenditure: All expenditure from the Fund shall be governed in accordance with conform to the provision of the Gujarat Financial Rules, 1977 amended from time to time:

8. Investment of Surplus: Authority shall invest surplus funds available in the Fund from time to time in gainful short term or long term deposits in any nationalized bank or financial Institutions promoted by the Government of India or the Government of Gujarat, in order to ensure suitable returns on surplus funds. The incidental charges like brokerage, commission etc. shall be accounted for as a charge on the Fund.

9. Area of Applicability: Any amount credited to the Fund shall not be utilized for any purpose other than the purposes specified at point no. 3.

Accounts and Audit: (1) All the amounts received by the Authority shall be credited to the Fund against which all expenditure shall be debited. (2) The Authority shall maintain proper accounts and records and prepare annual relevant 30 statements of accounts in accordance with Rule 13 of Gujarat Real Estate (Regulation and Development) (Matters relating to Real Estate Regulatory Authority) Rules, 2016 and will comply with provision of Section 77 of the Act.

Closure of the Fund: (1) (2) The Fund shall remain operative so long as the relevant provisions of the Act remain in force. At the time of closure of the Fund when the Fund is no longer required, all the unspent balance under the Fund shall be remitted the Government Treasury. By order and in the name of the Governor of Gujarat”, The Punjab Real Estate Regulatory Authority has also constituted a Fund by way of Rules and the information furnished to the petitioner by the Punjab Real Estate Regulatory Authority is as follows: “…. …. …. This is in reference to the letter referred above. The point wise reply is as under: S. No. 1. Information Asked Whether strictly under the control Government. RERA Reply RERA, Punjab. Fund is under the control A committee is constituted to administer the Real Estate Regulatory Fund under section 75(1) of the Act. 31

2. Whether the fund is kept in the bank and operated by RERA. Govt. Punjab, Department of Finance has given approval to open the bank account purpose of creation of Real Estate Regulatory Fund under section 75(1) of the Act. (Translated copy of approved note attached)

3. The purpose for which the fund is utilised. The fund is utilised strictly as described under section 75(2) of the Act. salaries (a) allowances payable to the Chairperson Members, the adjudicating officer administrative expense including the salaries and allowances payable to the officers & other employees of the Authority and the Appellate Tribunal. Encl: As Above (b) the other expenses of the Authority in connection with the discharge of its functions and purpose of this Act. Secretary RERA, Punjab” It is indicative of the fact that the Fund is under the control of Real Estate Regulatory Authority and the Authority therein has constituted a Committee to administer the Fund. Government of 32 Punjab, Department of Finance therein has given its approval to open Bank account for the purpose of creation of the Fund. The utilization of the Fund is under several heads. The demand is that the utilization should be left to the Authority as is done by every State Government referred to supra.

10. The State of Karnataka has not fallen in line with those Governments. Though Rules are framed for administration of the Fund, the Fund is completely controlled by the State Government. If every State Government has framed Rules under the Act for implementation and execution of Section 75 of the Act, the State Government here should now retrace its steps to fall in line with what other State Governments have done, so that financial autonomy to the Authority would emerge. A caveat, this Court is not directing complete autonomy for the Authority. The expenditure shall be audited and controlled by the Government. If every State Government has permitted opening of an independent Bank account for the deposit of all the moneys received by the Authority and that amount is earning interest in every other State, the State 33 of Karnataka shall, as well deliberate or ponder upon such action being done by it also.

11. The learned counsel for the petitioner projects that salary bills are not cleared despite passage of a month or even 45 days of their submission. If that is so, the said practice has to stop forthwith. The State shall brook no delay in the bills submitted if they are for the purpose of payment of salary and shall be cleared by it without any loss of time. I deem it appropriate to dispose of the petition, by directing the State to consider it to fall in line with all the Rules framed by other State Governments and consider framing of such Rules in an identical manner, as the present Rules are completely divergent to what is found in the Rules of other States, since all the States have framed those Rules only under Section 75 of the Act.

For the aforesaid reasons, the following:

O R D E R (i) Writ Petition is disposed. 34 (ii) The State Government is directed to consider notifying the Rules in tune with the Rules of other State Governments. Till such time the impugned Rules shall continue to operate. (iii) The State Government shall conclude this exercise within six months from the date of receipt of a copy of this order, if not earlier. Ordered accordingly. BKP CT:MJ Sd/- (M. NAGAPRASANNA) JUDGE