Section 8(1)(iii) in Tamil Nadu Panchayats (Acquisition and Transfer of Immovable Property) Rules, 2000
(iii)No lease for a structure made of materials other than those mentioned in item (ii) or for a period exceeding twelve months, shall be granted by a panchayat except with the previous approval of the Collector who, in granting approval, may lay down such conditions as he may consider necessary subject to which the lease may be granted by the panchayat. The panchayat shall embody such conditions in the lease before it is granted. It must be expressly provided in every case that amount of the lease shall be paid to the panchayat in advance so long as the lease is in force and that in default of payment of such amount, the lease is liable to be cancelled.