House Building Advance Rules [1]

1.0. Eligibility
House Building Advance may be granted to the Company Employees on regular
appointment after completion of minimum 5 years’ service excluding probationary
period.[2]

Note:
(i) In case where both the husband and wife happen to be company employees
and eligible for the grant of advance, it shall be admissible to only one of them.

(ii) In respect of employees of Govt. Organizations/Public Sector Undertaking

joining CIL as a fresh appointee after serving lien from the previous
employees, the permanent status earned by them in that organization and/or
the period of continuous services rendered by them in said organizations
immediately before joining CIL shall also be counted for the purpose of this
rule for grant of House Building Advance to them. In such cases, no further
examination of the documents pertaining to the properties against which loan
has been advanced by their erstwhile employers will be necessary. However,
the employee will be required to create a fresh mortgage of the concerned
property in favor of CIL as per HBA rules of CIL. In such cases payment will
be made directly to the previous employer from whom the advance was taken
and not to the employee.

2.0. Conditions to be fulfilled

An applicant for the grant of an advance must satisfy the following conditions:

(A) He must not have availed of any loan or advance for acquisition of the house
in the past from any government source (e.g. Ministry of Rehabilitation or a
Central or State Housing Scheme), or drawn an advance or made a final
withdrawal from his provident fund in connection with the acquisition of a
house, provided, however, where the loan or advance, already availed of does
not exceed the amount admissible under these rules it would be open to the
company’s employee concerned to apply for an advance under these rules one
condition that he undertakes to repay the outstanding loans, advances, together
with interest (if any) thereon forthwith in one lump sum to the
Ministries/Departments concerned.

(B) Neither the applicant, nor the applicant’s wife/husband/minor child must be
the owner of a house. However, this condition may be relaxed by the company
in exceptional circumstances, for example, if the applicant’s
wife/husband/minor child owns a house in a village, and the applicant desires

1
Approved by Coal Mines Authority Limited (CMAL) Board on 26.07.1974. Amendments upto 09.01.1990
was communicated in a Book form.
2
Amended vide OM No. CIL/C5A(PC)/HBA/2828 dated 08.05.2018.
P a g e | 481
 to settle down in a town or where an applicant happens to own a house jointly
with other relatives, and he desires to build a separate house for his bonafide
residential purposes.

(C) The floor area of the house to be constructed or purchased must not be less
than “22 Sq. m.”

(D) No employee will be eligible for House Building Advance if:[3]

1. He is superannuating within 60 months.

2. He is on deputation from Central or State Government or other
Organization.
3. The purchase of the land/house is made from any family member/relative
who is dependent upon him.

3.0. Purposes for which advance may be granted

An advance may be granted for:

(a) Constructing a new house (including acquisition of a suitable plot of land for
the purpose), either at the place of duty or at the place where the company
servant purposes to settle after retirement. Application for advance for
purchasing a ready built house or for repayment of any outstanding amounts
on accounts of loans expressly taken from Govt. Organizations/Public Sector
Undertakings together with interest accrued thereon subject to the overall
ceiling limit of the House Building Advance for the purpose aforesaid before
the date of receipt of application for advance, may also be considered.
(b) Enlarging the living accommodation in the existing house owned by the
Employee or owned jointly with his/ her wife/ husband and the total cost of
the additions and extensions of which does not exceed for Rs. 6,00,000/-
provided the Employee has minimum 3 years of service left.[4]

4.0. Amount of Advance

(a) Not more than one advance shall be sanctioned under these rules to a company
servant during his entire service.
(b) The amount of House Building Advance would be limited to 75 months’ pay
(including Dearness Pay, Personal Pay and Special Pay, Special DA and VDA
where admissible) or ₹30.0 lakhs, whichever is less. This will subsume the
advance amount under “CIL Furniture and Household Goods Purchase
Scheme” for the following purposes: [4]

3
Incorporated vide OM No. CIL/C5A(PC)/HBA/2828 dated 08.05.2018.
4
Amended vide OM No. CIL/C5A(PC)/HBA/2828 dated 08.05.2018.
P a g e | 482
 (i) Construction of a new house on the plot owned by the employee or the
employee and his/her wife/husband jointly provided they mortgage the
house jointly.

(ii) Purchasing a plot and constructing a house thereon.

(iii) Purchasing a plot under co-operative schemes and constructing a house

thereon.

(iv) Outright purchase of a new and unlived in ready built house/flat from
Housing Boards, Development Authorities and other statutory or, semi
Govt. bodies, co-operatives and also from private parties.

(v) Repayment of loan and/or advance taken by the applicant for constructing
or purchasing a house.

(vi) Acquiring of flats/houses through membership of co-operative group

housing societies, subject to the following conditions:

(A)

(i) The applicant shall execute a personal bond in the prescribed

form and also furnish two sureties in the prescribed from. The
surety bond shall be executed jointly by two sureties who are
permanent employees of Coal India and its Subsidiaries of same
status as that of the applicant or of higher status having sufficient
length of service upto the period of recovery of advance with
interest from the loanee.
(ii) The surety should not be husband/wife of member or the same
joint family and should not have stood surety for anyone else.
(iii) The amount of advance shall not exceed 75 months pay
(including Dearness Pay, Personal Pay and Special Pay, Special
DA and VDA where admissible) or ₹30.0 lakhs [5] or the cost of
the flat whichever is the least, as admissible under the rules.
(B) The amount of house building advance sanctioned to an employee
shall be disbursed in the following manner:
(i) A sum equal to 30% of the advance sanctioned shall be payable
to the applicant on his executing the bond and on furnishing two
sureties in the prescribed form.
(ii) The remaining amount of the house building advance sanctioned
to an employee shall be disbursed in suitable installments as fixed
by the sanctioning authority at the time issue of sanction, on the
basis of the payment schedule of the flat furnished by the

5
Due to enhancement of the advance limit vide OM No. CIL/C5A(PC)/HBA/2828 dated 08.05.2018.
P a g e | 483
 concerned co-operative group housing society. For each
disbursement the employee shall produce a demand letter from
the housing society indicating the progress of the construction,
the correctness of which may be verified by the sanctioning
authority by arranging inspection of premises.
(iii) The original agreement between the housing society and the
applicant, the share certificate issued by the society, the letter
from the society allotting a flat to the members and original
receipts for payment should be produced for verification by the
loanee.
A certificate that the co-operative society is registered with the
Registrar or Co-operative Societies of the concerned State shall
also be produced.
(C) On transfer of the ownership of the flat in favour of the employee, the
employee will mortgage it to the company as surety for the loan
obtained from the company.
Subject to the provision that the employee (i.e. Borrower) is in a
position to make a personal investment not less that 5% of the total
estimated cost of the house or of the land and the house taken together
in cases covered by rule 3 (a) above. The actual amount of advance to
be sanctioned will be determined by the Sanctioning Authority on the
basis of plans and the detailed specifications and estimates to be
furnished by applicants justifying the amount of advance applied for,
and shall in no case exceed the estimated cost of
construction/purchase and/or redemption within the ceiling
prescribed above.
Note: Pay at the time of Competent Authority’s approval and no
subsequent increase by way of promotion, transfer, increment etc. will be
taken into consideration.

(c) Repaying Capacity

The advance shall be restricted to the amount which the employee may be
expected to be in a position to repay by convenient, monthly deductions from
his/her pay before the date of his/her superannuation under the rules of the
company and partly if necessary from the Gratuity that the employee may be
eligible for under the service rules of the company.
For this purpose, it shall be taken that an employee shall commence repayment
of advance 18 months after the payment of advance by the competent authority
and that installment calculated upto 50% of pay will be within his paying
capacity.

P a g e | 484
 Provided that in respect of employees governed by the payment of Wages Act,
the repaying capacity would be assessed taking into consideration the limits
deductions stipulated in Section 7(3) of the said Act.

Clarification:
The house building advance should be restricted to amount which the
employee is in a position to repay before the date of his superannuation taking
his monthly repaying capacity to be 50% of his pay. In the cases where the
recovery of the total advance cannot be effected within the stipulated time for
unforeseen reasons such as long leave without pay, termination of service,
voluntarily retirement, resignation, death, etc, the amount of outstanding house
building advance is to be recovered from the gratuity of the employee.
(d) Subject to the provisions contained in Clause 4(c), the maximum amount of
additional loan can be obtained by an employee from the Financial Institution
is as under:[6]

Basic Pay Maximum ceiling of

additional loan
Upto ₹2700/- ₹1.00 Lakh
₹2701/- to ₹4500/- ₹1.50 Lakhs
₹4501/- & above ₹2.00 Lakhs

5.0. Disbursement & Security

1. Advance required partly for purchase of land and partly for constructing a new
house or enlarging living accommodation in an existing house shall be paid as
follows:
(i) An amount not exceeding 20 percent of the admissible amount will be
payable to the applicant for purchasing a plot of land on his executing an
agreement in the prescribed form for the repayment of the advance. In all
cases in which part of the advance is given for the purpose of land, the land
must be purchased and the sale-deed in respect thereof produced for the
inspection of the Head of the department concerned within two months of
the date of which the above amount of 29% is drawn failing which the
applicant shall be liable to refund at once the entire amount to the company
together with interest thereon.
(ii) An amount equal to 30% of the balance of the advance to the applicant on
his mortgaging in favour of the company the land purchased by him along
with the house to be built thereon where such mortgage is permitted by the
terms of the sale of land. In cases where the terms of sale do not vest title
in the purchaser till a house is erected on the land, the applicant shall
execute an agreement with the company in the prescribed form agreeing to

6
Incorporated vide OM No. CIL/C-5A(vi)/50724/V/166 dated 11.11.1997.
P a g e | 485
 mortgage the land together with the house to be built thereon, as soon as the
house has been built and the title to the property is completed.
The mortgage can also be effected by the employee concerned by simple
deposit of the title deeds/documents accompanied by written memorandum
(Equitable Mortgage) determining the scope and extent of the Security in
notified areas.
(iii) An amount equal to 40% of the amount remaining after deducting from the
sanctioned amount of the advance the installment given for the purchase of
land will be payable when the construction of the house reaches plinth area.
(iv) The balance of the sanctioned advance will be payable when the
construction of the house has reached roof level provided the Head of the
Department is satisfied that the development of the area in which the house
is built is complete in respect of amenities such as water supply, street
lighting, roads, drainage and sewerage.
2. Advance required only for constructing a new house or enlarging living
accommodation in an existing house shall be paid as follows:
(i) An amount equal to 30% of the sanctioned advance will be payable to the
applicant on his mortgaging in favour of the company the land purchased
by him along with the house to be built thereon where such mortgage is
permitted by the terms of the sale of land. In cases where the terms of sale
do not vest title in the purchaser till a house is erected on the land the
applicant shall execute an agreement with the company in the prescribed
form agreeing to mortgage the land together with the house to be built
thereon, as soon as the house has been built and the title to the property is
complete.
The mortgage can also be affected by the employee concerned by simple
deposit of the title deeds/documents accompanied by written
memorandum (Equitable Mortgage) determining the scope and extent of
the security in notified areas.
(ii) A further amount not exceeding 40% of the sanctioned advance will be
payable when the house has reached plinth level.
(iii) The remaining 30% of the sanctioned advance will be payable when the
house house has reached roof level provided the Head of the Department
is satisfied that the development of the area in which the house is built is
complete in respect of amenities such as water supply, street lighting,
roads, drainage and sewerage.
3. Advance required either for purchasing a ready built house or for repaying a loan
taken by the applicant for constructing or purchasing a house shall be paid as
follows:
(a) The Head of department may sanction payment of the entire amount required
by, and admissible to the applicant in one lump sum on the applicant’s
P a g e | 486
 executing an agreement in the prescribed form for the repayment of the loan.
The acquisition of the houses must be completed, and the house mortgaged
to company within 3 months of the drawal of the advance, failing which the
advance together with the interest thereon shall be refunded to company
forthwith, unless an extension of this time limit is granted by the Head of the
Department concerned.
(b) In addition to executing the agreement/mortgage, referred to in sub-
paragraph (a) above, the applicant is required to furnish surety of a
permanent employee in the prescribed form before the sanctioned advance
or any part thereof is actually disbursed to them.[7]

Note:
(i) The liability of the surety will continue till the house
built/purchased/redeemed is mortgaged to company or till the advance with
the interest due thereon is repaid to the company whichever happens earlier.
(ii) Utilization of the advance for a purpose other than that for which it is
sanctioned shall render the company employee liable to disciplinary action
under the company’s conduct and discipline rules, apart from his being
called upon to refund to company forthwith the entire advance drawn by
him (together with interest thereon calculated as in Rule 6).

6.0. Interest [7]

The interest rate for the advance would be as per the prevailing rate fixed by
Government of India on House Building Advance from time to time.

7.0. Construction, Maintenance, etc.

(a) The construction of the house or additions to living accommodation in an

existing house, as the case may be shall be:
(i) Carried out in accordance with the approved plan and specifications on the
basis of which the amount of advance has been computed and sanctioned.
The plan and specifications must note be departed from without the prior
concurrence of the Managing Director(s)/Functional Director(s). the
company employee shall certify, when applying for installments of advance
admissible at the plinth/roof level, the construction is being carried out
strictly in accordance with the plan and estimates furnished by him to the
company that the construction has actually reached plinth/roof level, and that
the amount already drawn has actually been used on the construction of the
house. The head of the Department may, if necessary arrange to have
inspection carried out to verify the correctness of the certificates; and

(ii) Completed within 18 months of the date on which the first installment of the
advance is paid to the company employee concerned. Failure to do so will

7
Amended vide OM No. CIL/C5A(PC)/HBA/2828 dated 08.05.2018.
P a g e | 487
 render the company employees liable to refund the entire amount advanced
o him (together with interest thereon calculated as in Rule 6 above), in one
lump sum. An extension of the time limit may be allowed upto one year by
the head of Department, and for no longer period by the company, in these
cases where work is delayed due to circumstances beyond his control. The
date of completion must be reported to the Head of Department concerned
without delay.

Clarification:

1. In terms of rule 7 (a) (i)of the House Building Allowance Rules, the loanee
has to satisfy the Head of Department regarding correctness of the
certificates produced by the loanee of construction at various stages of
release of installments of advance.

2. Instances have come to notice in which carrying out of inspection of the

premises takes considerable time particularly when employee constructs
house in far off places. As a result of this, the loanee experience difficulties
in drawal of subsequent installments of house building advance.

3. The matter has been examined and in order to remove the difficulties it has
been decided that in such exceptional cases, the installments of the house
building advance at various stages of construction may be released on the
basis of certificated issued by qualified and registered Engineers/Architects
regarding house having reached upto plinth/roof level.

(b) Immediately on completion or purchase of the house or redemption, as the case

may be, the company employee concerned shall insure the house, at his own
cost, with the National Insurance Company (A Govt. of India Undertaking) for
a sum not less than the amount of the advance and shall keep it so insured,
against damage, fire, flood or lighting, till the advance is fully paid to company
and deposit the policy with his Head of Department. The premium must be paid
regularly and the premium receipts produced for inspection by the appropriate
authority (viz. Head of Office or Department concerned).the Head of
Department/Accounts Officer will obtain from the company employee drawing
the advance a letter to the insurer with which the house is insure to notify to the
letter the fact that the company is interested in the Insurance Policy secured. The
Head of Department/Accounts Officer will himself forward the letter to the
insurer and obtain his acknowledgement. In the case of insurances effected on
annual basis, this process should be repeated every year until the advance has
been fully repaid to company.
(c) The house must be maintained in good repair at his own cost by the company
employee concerned. He shall also keep it free from all encumbrances, and shall
continue to pay all the Municipal and other local rates and taxes regularly until
the advance has been paid to company in full. The company employee shall
furnish an annual certificate to this effect to the Head of Department.

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 (d) During the continuance of mortgage and so long as the loan or any part thereof
or interest due thereon shall remain unpaid, the company employee shall not
create any change, lien, encumber transfer or otherwise alienate mortgaged
property.
However, in the event the company employee is in need to have additional loan
from any Financial Institutions, in order to complete the House or Flat by
creation of a second mortgage, the company may grant permission on
application by the employee subject to compliance of the following conditions
to satisfaction of the company.
i) The Financial institutions from which the employee proposed to obtain an
additional loan is recognized by Reserve Bank of India.
ii) The second mortgage proposal to be created by the employee shall not in
any way effect and/or prejudice the financial interest of the company and
the mortgage created by the employee in favour of the company shall
continue to remain first charge on the mortgaged property.
iii) The amount of additional loan intended to be obtained by the company
employee from the Financial Institution does not exceed the maximum
ceiling provided in Clause 4 (d).
iv) The amount to be paid by the employees towards servicing of the loan
drawn from the company and servicing of the additional loan should not
exceed the permissible limit of remaining capacity of the employees as
provided in Clause 4 (c).[8]
(e) After the completion of the house, annual inspection may be carried out by any
authorized officer under instructions from the Head of Department concerned,
to ensure that it is maintained in good repair until the advance has been repaid
in full. The company employee concerned shall afford full facility for those
inspections to the officer(s) designated for the purpose.[9]

Note:
Furnishing the false certificate will render the company employee concerned
liable to suitable disciplinary action apart from his being called upon to refund
to the company forthwith the entire advance drawn by him.

8.0. Repayment of Advance

(a) The advance granted to a company employee under these rules, together with
the interest thereon shall be repaid in full by monthly installments within a
period not exceeding 20 years.

8
Incorporated vide OM No. CIL/C-5A(vi)/50724/V/166 dated 11.11.1997.
9
Amended vide OM No. CIL/C-5A(vi)/50724/V/166 dated 11.11.1997.
P a g e | 489
First the recovery of the advance shall be made in not more than 180 monthly
installments and then interest shall be recovered in not more than 60 monthly
installments.
Note:

(i) The amount to be recovered monthly shall be fixed in whole rupees, except
in the case of the last installment when the remaining balance including any
fraction of a rupee shall be recovered.
(ii) Recovery of advance granted for constructing a new house or enlarging
living accommodation in an existing house shall commence from the month
following the completion of the house or 18 months after the date on which
the first installment of the advance is paid to the company servant,
whichever is earlier. In the case of advances taken for purchasing a ready
built house or for repaying earlier loans (including those from private
parties) taken for purchasing or constructing a house, recovery shall
commence from the pay of the month following that in which advance is
drawn.
(iii) It will be open to company employee to repay the amount in a shorter period
of they so desire. In any case, the entire amount must be repaid in full with
interest thereon before the date on which they are due to retire from service.
(iv) In order to avoid undue hardship to a company employee who is due to
retire within 20 years of the date of application for the grant of an advance,
the Head of Department may permit him to repay the advance with interest
in convenient monthly installments (the amount of which shall not be less
than the amount of monthly installments on the basis of repayment within
the period of 20 years) during the remaining period of his service provided
he gives an undertaking authorizing the company to recover the entire
outstanding amount from the gratuity that may be payable and any other
retirement benefits that may be sanctioned to him or in the event of his death
to realize the outstanding balance from any benefit that may be payable to
his estate. In any event the company will have liberty to enforce the deed of
mortgage which will be executes by the employee in favour of the company.
(v) In case the company employee does not repay the balance of the advance
due to the company on or before the date of hi retirement, it shall be open
to the company to enforce the security of the mortgage at any time
thereafter, and recover the balance of the advance due together with interest
and cost of the recovery, by sale of house or in such other manner as may
be permissible under the law.
(vi) While issuing the L.P.C. in the case of transfer of an employee from one
Subsidiary to another Subsidiary Company the incidence of H.B.A. drawn
by the employee concerned should clearly be spelt out and also separate
communication be sent to the concerned Subsidiary Company where the
employee has been transferred, for regular recovery of the advance from the
employee concerned by them as done in the case of P.F. and other advances.
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 The amount of monthly installment of the advance so recovered should be
regularly remitted to the Subsidiary where from the advance had been
drawn.
(b) Recovery of the advance shall be effected through the monthly pay leave salary
bills of the company employee concerned by the Head of the Office or the
Accounts Officer concerned, as the case may be. These recoveries will not be
held up or postponed except with prior concurrence of the company.
(c) If a company employee ceases to be in service for any reason other than normal
retirement/superannuation, or if he/she dies, before repayment of the advance in
full, the entire outstanding amount of the advance shall become payable to the
company forthwith. The company may however, in deserving cases, permit the
company employee concerned, or his successors in interest, as the case may be
or the sureties in cases covered by Rule 5(b) if the house has not been completed
and/or mortgaged to the company by that time, to repay the outstanding amount
together with interest thereon calculated as in Rule 6 above, in suitable
installments. Failure on the part of the company employee concerned or his
successors, as the case may be, to repay the advance for any reason whatsoever,
will entitle the company to enforce the mortgage and take such other action to
effect recovery or the outstanding amount as may be permissible.
(d) The property mortgaged to the company shall be reconveyed to the company
employee concerned (or his successors in interest, as the case may be) after the
advance together with the interest thereon has been repaid to the company in
full.

9.0. Sanctioning Authority:[10]

The following authorities are authorized to approve the advance after satisfying
themselves that the employee has the capacity to repay the same in the stipulated
period:

i) CMD, CIL/ Subsidiary.

ii) FDs & CVOs of CIL/ Subsidiary for EDs, GMs, HoDs and employees working
directly under him/ her.
iii) EDs, GMs/ HoDs of CIL/ Subsidiary for all employees working under his/ her
administrative control.

Functional Directors of CIL & its Subsidiaries are authorized to approve the advance
after satisfying themselves that the Employee has the capacity for repaying the
advance in the stipulated period.
The application for House Building Advance is to be decided within one month and
the status of the application is to be uploaded on the website of the Company.

10
Amended due to letter No. CIL/XI(D)/04027/2021/26915 dated 20.07.2021. Earlier incorporated vide OM
No. CIL/C5A(PC)/HBA/2828 dated 08.05.2018.
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10.0. Procedure for dealing with applications:[11]

(a) Applications should be submitted by the company employee to the Head of their
Department in the prescribed form (in duplicate) through proper channel. The
following documents should accompany the applications:
(i) A declaration in regard to the house property, if any, owned by the applicant
or the applicant’s wife/husband/minor children at the time of application.
(ii) If the advance is required for enlarging living accommodation in an existing
house, or for repaying earlier loans taken for constructing or purchasing a
house, an attested copy of the sale deed as well as of documents if any,
establishing that the applicant possesses indisputable title to the property in
question. A site plan should also be furnished where advance is required for
repayment of earlier loan(s) authentic evidence indicating the outstanding
amount(s) of the loan(s) in question should also be furnished; and
(iii) In cases where applicants happen to be in possession of land and desire to
build a new house on it, a copy of the sale deed or the other proof of the
applicant having clear title to land on which the house is proposed to be
built, along with a site plan. If the land happens to be lease-hold, an attested
copy of the lease deed should also be enclosed.
(b) The Head of Departments will scrutinize the application and satisfy themselves
of the correctness of the facts, etc. stated therein. They will also examine the title
deeds, etc. furnished in compliance with sub rules (ii) and (iii) above (in
consultation with their law officers and revenue and registration authorities, if
necessary) to make sure that the applicant does, in fact, possess a clear title to
the property in question. After this has been done, the Head of Department will
forward the application to the Sanctioning Authority [12] along with their
recommendations.
(c) The Sanctioning Authority [12] will examine the applications with reference to
the priorities, etc. if any, laid down for dealing with them. Subject to funds being
available, the application will be returned to the Head of the Department
concerned indicating:
(i) The amount of advance that may be sanctioned by the Head of the
Department where it happens to be required partly for purchasing the plot of
land for constructing a house (see also sub rules d(ii) and (c) below), or
required for repaying earlier loan(s) taken for constructing or purchasing a
house, or for purchasing a ready built house, and
(ii) The monetary limit upto which the grant of an advance could be considered
in due course, in other cases (viz. for constructing a new house or for
increasing living accommodation in existing house).

11
Clause No. amended due to OM No. CIL/C5A(PC)/HBA/2828 dated 08.05.2018.
12
Amended due to OM No. CIL/C5A(PC)/HBA/2828 dated 08.05.2018.
P a g e | 492
 (d) On receipt of the approval of the Sanctioning Authority [12]:
(i) Formal sanction to the grant of advance to applicant in cases covered by sub
rule (c) (i) above will be accorded by the Head of Department concerned
who shall also arrange to complete the prescribed formalities, such as
execution of agreement, mortgage deed, surety bond, undertaking etc in the
prescribed forms (in consultation with appropriate legal authorities where
necessary), and then scrutinize disbursement of an appropriate amount out
of the sanctioned advance to the applicant. Where land or ready built house
is intended to be purchased, with the help of the advance, the Head of the
Department may, before authorizing payment of the advance, also require
the company employee concerned to certify that the negotiations for the
purchase have reached concluding stages, that purchase price is not likely to
be less than the amount of advance sanctioned, and that he has satisfy himself
that the transaction will enable him to acquire indisputable title to the
land/house in question in such cases, the sales deeds, etc. should be
examined by the Head of the Department carefully (in consultation with
legal and other authorities where necessary) to ensure that the company
employee concerned has actually acquired indisputable title to the property
in question. It should also be verified that the market value of the land/house
purchased is not less than the advance sanctioned; and
(ii) The Head of Department shall instruct applicants desirous of constructing a
new house or enlarging living accommodation in an existing house, to
furnish 2 copies of plans, as well as specifications and estimates in the
prescribed proforma. The plans must be got duly approved by the
Municipality or other local body concerned before submitting them to the
Head of the Department.
(e) The plans, specifications and estimates referred to in sub-rule (d) (ii) above
should be referred to the Sanctioning Authority [13] with reference to the earlier
correspondence on the subject. The Managing Director/Functional Director will
after examining all these details inform the Head of Department of the maximum
amount of advance that could be granted to the applicant concerned. On receipt
of the recommendations of the Managing Director/Functional Director, the Head
of Department will accord final sanction to the grant of the advance or if
necessary amend the original sanctions issued in cases where the advance is
required partly for purchasing a plot of land (see sub-rule (c) (i) and (d) (i)
above). The Head of Department shall also attend to all formalities as explained
in sub-rule (d) (i) above, and then authorize the disbursement of the first
installment of advance for construction purposes to the applicant. The payment
of remaining two installments of advance may be authorized by the applicants
as prescribed in rule 7 (a) and such inspections may be deemed necessary. It
should also be verified before disbursing the last installment of the advance, that
the development of the site has been completed (vide rule 5 above).

13
Amended due to OM No. CIL/C5A(PC)/HBA/2828 dated 08.05.2018.
P a g e | 493
(f) The Head of Department shall also ensure that the transaction/construction of
the house is completed within the period prescribed in the Rules and that:
(i) The prescribed mortgage deed is executed immediately on completion/
redemption/ purchase of the house, and the document kept in safe custody
after registration;
(ii) The house is insured in the manner indicated in Rule 7 (b) above
immediately on its purchase/completion/redemption, and that the premium
receipts are regularly produced for inspection;
(iii) The house is maintained in good repair and that necessary insurance premia
and municipal rates and taxes are paid regularly, and the requisite certificate
furnished annually, until the advance has been repaid in full;
(iv) Monthly recovery of installments of repayment of the advance commences
from the due date and is made regularly from the pay/leave salary bill of
the company employee concerned thereafter;
(v) In the case of the company employee likely to retire within 18 months of
the date of their application for the advance (see Rule 5 (b) above), the
amount of their gratuity will be adequate to cover the balance outstanding
against them just before the date of their retirement;
(vi) Any amount drawn in excess of the expenditure incurred, is refunded by the
company employee concerned to the company forthwith together with the
interest if any due thereon; and
(vii) The property mortgaged to the company is released immediately on the
repayment of the advance and the interest thereon in full.
(g) To enable the Managing Director/Functional Director to watch the disbursement
of the funds and the progress on the construction of houses, Head of Department
will send to him a consolidated quarterly progress report (in respect of all the
Department to which it relates, in the prescribed proforma. In order to enable the
Head of Department to furnish the progress report to the Managing
Director/Functional Director in time, all the Company’s Administrative
Departments including the attached and subordinate offices to the Company will
send them a consolidated quarterly progress report (in respect of all departments
and offices under it) by the 15th of the month following the quarter to which it
relates in the prescribed proforma.

P a g e | 494
 Annexure I

Application form for advance for building etc. of houses.

1.
(a) Name (in block letters) …………………………………EIS no…………………
(b) Designation……………………………………………………………………...
(c) Scale of pay……………………………………………………………………...
(d) Present pay (excluding of allowances/ perks but including Dearness Pay if any)
………………
2.
(a) Department of office in which employed…………………………………………………
(b) Station where posted……………………………………………………………………...

3. Please state:

Whether Do you hold a Date of Date on which Is your spouse a

you are a permanent birth & you will attain company
permanent appointment under present age the age of employee? If so,
employee Central or a State superannuation give the name,
and the Govt. if so, give designation,
length of particulars. office etc.
service
rendered

1 2 3 4 5

4. Do you or does your spouse/ minor child already own a house? If so, please state:

Station where it Floor area Its Reasons for desiring to own another
is situated with (in sq. ft.) approximate house, or enlarging living
address valuation accommodation in an existing
house, as the case may be

1 2 3 4

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5. a) Do you require the advance for building a new house? If so, please indicate:

Approx. floor area Estimated cost Amount of No. of yrs. in which

of the house advance the advance with
proposed to be required interest is proposed to
constructed (in sq. Cost of Cost of Total be repaid
ft.) land building

1 2 3 4 5 6

Note: Entries in columns 2 to 4 will have to be supported by specifications, estimates (in the
enclosed form) and plan at the appropriate state.

b) Whether you are already in possession of land? If so, please state:

Name of the city Whether you wish Area of the Name of the municipality or
or town where it to settle there after plot (in sq. other local authority (if any) in
is located superannuation yds.) whose jurisdiction it is located

1 2 3 4

c) If no plot is already in your possession, how and when do you propose to acquire one? State
the approximate plot area (in sq. yds.) proposed to be acquired.

6. Do you require the advance for enlarging living accommodation in an existing house, if so,
please state:

No. of Total If an Particulars of additional Amount No. of

room in floor additional information desired of yrs. in
the house area of storey is advance which the
(excluding the proposed desired advance
lavatory, room to be added No. of Floor Estimated with
bath room (in sq. is the rooms area cost interest is
& kitchen) ft.) foundation (in sq. proposed
strong ft.) to be
enough repaid

1 2 3 4 5 6 7 8

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 Note: A plan on the existing house should accompany the application.

7. Do you require the advance for repaying loans taken earlier for purchasing/ constructing a
house? If so, please state:

Location Floor area Plinth Total cost Names and Amount No. of
of the of the area of of the addresses of of years in
house house in the house house parties from advance which the
sq. ft. in sq. ft. (including whom loans required advance
land) were taken with
& the interest is
amount proposed
outstanding to be
in their repaid
favour on
the date of
application

1 2 3 4 5 6 7

Note: A plan of the house and specification used in construction should accompany the
application

8. Do you require the advance for purchasing a ready built house?

(a) (i) if so, and in case you already have a house in view, please state:

Locatio Floor Plint Approx Municipa Name Approx. Amoun No. of

n of area h . age of l value of & price t of years in
house of area the the house addres expecte advanc which
hous of the house s of the d to be e advance
e (in house owner paid require with
sq. (in d interest
ft.) sq. is
ft.) propose
d to be
repaid

1 2 3 4 5 6 7 8 9

P a g e | 497
 (b) If you do not already have a house in view, how, when and where do you proposed to
acquire one indicate:

The approximate amount The approximate amount of No. of years in which the
up to which you will advance required advance with interest is
prepare to buy a house proposed to be repaid

Note: Details specified against item 8 (a) above should be furnished in this case also as soon
as possible and in any case before the full amount of advance can be drawn.

(ii) Have you satisfied yourself that the transaction would result in your acquiring an
indisputable title to the house?

Note: A plan for the house should accompany the application.

(b) If you do not already have a house in view, how, when and where do you proposed to
acquire one indicate:

The approximate The approximate amount of No. of years in which the

amount up to which advance required advance with interest is
you will prepare to buy proposed to be repaid
a house

Note: Details specified against item 8 (a) above should be furnished in this case also as
soon as possible and in any case before the full amount of advance can be drawn.

9. If the land on which the house stands, or proposed to be constructed, free hold or lease hold?
If lease hold, state:

The term How much of the Whether Premium paid Annual rental of
of the term has already conditions of the for the plot the plot
lease expired lease permit the

P a g e | 498
 land being
mortgaged to the
company

1 2 3 4 5

Note: A copy of the lease/ sale deed should accompany the application

10.
(a) Is your title to land/ house undisputed and free from encumbrances?

(b) Can you produce, if required, original documents (sale or lease deed) in support of your
title? If not, state the reason indicating what other documentary proof, if any, you can
furnish in support of your claim?(See items 5(b), 6 and 7 above).

(c) In case you have, does the locality in which the plot of land/ house is situated possess
essential services like roads, water supply, drainage, sewerage, street lighting, etc.? (Please
furnish a site plan with complete address).

11. In case you happen to be due to retire from service within 20 years of the date of this
application, do you undertake to repay the outstanding balance of the advance by making a
final (House Building) withdrawal from your provident fund and/or authorized the company
to adjust the remaining balance against any gratuity that may be admissible to you?

12. Is Rule 5(b) applicable to your case? If so, State:

(i) the name, designation, scale of pay, office/ department, etc. of the permanent company
employees who is willing to stand surety for you and;
(ii) The date on which the proposed surety is stand due to attain the age of superannuation.

DECLARATION

I SOLEMNLY DECLARE THAT the information furnished by me in reply to the various items
above is true to the best of my knowledge and belief.

I HAVE READ THE RULES REGULATING the grant of advances to employees for building
etc., of houses and agree by the terms and conditions stipulated therein.

I CERTIFY THAT:

(i) My wife/ husband is not a company employee.

(ii) My wife/ husband who is a company employee has not applied for and/ or obtained an
advance under these rules; and

P a g e | 499
 (iii) Neither I nor my wife/ husband has applied for and/ or obtained an advance or loan from
any other Government source for the acquisition of a house.

………………………………………..

(Signature of the applicant)

Station: Designation…………………………..

Date: Department/ office in which employed

………..………………………………..

*Strike out the alternative(s) not applicable.

(To be completed by the applicant’s head of department)

No……………………………………Station…………………………Dated……………………
forwarded to the sanctioning authority. The facts stated in the application have been verified and
found correct.

It is recommended that an advance of ₹…………………………may be granted to the applicant. I

have satisfied myself, on the basis of monthly deductions, etc., made from the applicant’s salary
that this amount is well within his/ her repaying capacity.

Signature………………………………

Designation……………………………

Name of Department……….………….

Name of the signing officer should also be indicated in block letters below his signature.

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 Form No. 1

Abstract of cost of original estimates and detailed specifications (based on details in Form
No. 2) for grant of advance.

Amount (₹).……………………………………………………….

Name……………………………………………………………..

Designation……………………………………………………….

Locality and address in which the house is proposed to be constructed……………………………

Item. Up- heads of items of work Quantity Rate Amount Total

No. QR No. per

I Earthwork 1000 C.
Ft.
(Earthwork excavation for foundations and
disposing of surplus earth etc.)

II Concrete work 1000 C.

Ft.
(Foundation concrete with cement of lime
using stone or brick ballast either below
floors or for footing)

III Damp Proof course

(Concrete on rich cement mortar or

bitumbastic compound)

IV Roofing work

(R.C.C. or any other type of suitable roof)

V Reinforced cement concrete

VI Masonry

(Brick, stone, concrete blocks walls etc.)

VII Wood work

P a g e | 501
 (For doors and windows, wooden
scantlings for roofs etc.)

VIII Steel work

(For reinforcement holdfast, window bars,

etc.)

IX Flooring

(Concrete, stone or marble chip etc.)

X (Plastering, pointing, colour or

whitewashing, painting etc.)

XI (Like Rain water pipes, sholves jails,chulas,

pogs, hooks for fans etc.)

XII Sanitary installation

(Closets, connections pipes, manholes,

drains etc.)

XIII Water Supply

(Tap water meters, water tanks G.I. pipe

etc.)

XIV Electricity

(Electric points, meters, connections, lines

etc.)

Total
Cost

…………………………………

(Signature of applicant)

Date……………………………

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 Form No. 2

Detailed estimate for advance for the building of a house

(Detailed estimate sheet to support the quantities given in Form 1)

Name……………………………………………………………..

Designation……………………………………………………….

Office to which attached…………………………………………

Locality and address in which the house is proposed ……………………………………………

Sl. Details of work No. Measurement Quantities

No. Length Breadth Height
I. Earthwork
1. Earthwork in excavation in all
soils for foundation and other
trenches and depositing the same
within one chain bed and up to
5’0” lift
Front wall 1 19 ½ 1½ 2 59

Rear verandah retaining wall 1 19 ½ 1½ 1½ 44

Outside wall 1 20 ½ 1½ 2 62

Common walls between rooms 1½ 12 ½ 1½ 2 56

W.C. front and rear 2 3¾ 1 1½ 11

W.C. front and side 1½ 4¾ 1 1½ 11

Steps in front and rear 2 4½ 1½ ½ 7

Total earthwork 250

2. Refilling the excavated earth etc.

continue details for all items as
given in sample Form No. 1
………………………….

(Signature of applicant)

Date…………………….

Note: The entries made in columns 3 to 7 against Item 2 above are just to explain how the entries
form is to be prepared

P a g e | 503
 Annexure II

(To be executed on a non-judicial stamp paper of appropriate value)

DECLARATION

Re: In the matter of housing loan of ₹……………………. lent and advance and/ or to be lent
and advanced by the company in the matter of declaration of equitable mortgage by deposit of
the title deeds of the immovable properties situated at………………………………
…………………………………………………………….. created on the
……………………….. day of ……………………………………………………..

1. I,………………,son of…………,aged………,at present residing at…………………….do

solemnly affirms and state and declare as follows:

2. I am an employee of Coal India Limited/ subsidiary (hereinafter called ‘Company’) and am

working at present as………………………………………..

3. With a view to secure the housing loan of ₹…………………………..interest and other

moneys lent and advanced and/ or to be lent and advanced by company to me, I have created
as and by way of security an equitable mortgage by deposit of title deeds, a mortgage in
favour of the company on the …………………………..day of……………………

4. I confirm and declare that (save and except the said equitable mortgage in favour of the
company), my property described in the schedule is free from all encumbrances claims and
demands and I am the full and absolute owner, thereof, and no other person has any right,
title, interest, claim or demands whatsoever thereof.

5. I further confirm and declare that my said property is not affected by any litigation,
attachment, process of the court, lispendens or otherwise, howsoever, and there was no
impediment in my creating the equitable mortgage in favour of company as stated above.

SCHEDULE OF PROPERTY

Solemnly declare at………………………………………

By the within named…………………………………….. Signature of the borrower

This…………………………….day of……………….20……..

Before me

(To be affirmed before on this commissioner/ chief metropolitan magistrate/ magistrate/ notary
public)

P a g e | 504
 Annexure IIA

From: (Name & address of the borrower) Dated…………………………20………….

………………………………………………

………………………………………………

………………………………………………

To (Name & address of the concerned company)

Sub: Housing loan of ₹………………………....

1. Pursuant to your sanction no………………………..dated…………….wherein you have

agreed to lend and advance to me a sum of
₹…………………(Rupees………………………) inter alia on the terms and conditions of
repayment with interest, cost, charges and expenses on creation of mortgage in favour of the
company as and by way of security for the said amount. I hereby agree to create an equitable
mortgage by deposit of title deeds of the immovable property situated
at………………………………..

(i)

(ii)

2. I am the absolute owner and registered holder of the above mentioned property and the same
is free from any encumbrance, hypothecation, lien, claim or demand, attachment, lispendens
or litigation and I agree not to create any charge or lien thereon so long as the loan obtained
by me from you is and the interest due thereon outstanding.

3. During the continuance of this security and so long as the said loan or any part thereof or any
interest due thereon will remain unpaid to you by me, you will be at liberty to have the said
property agreed to be mortgaged and pledged to you as aforesaid, transferred to your name
or names of your nominee or nominees, and all costs of and incidental to such transfer
including stamp, registration transfer fee etc. will be borne and paid by me forthwith on
demand and until such payment the same will be secured and will deemed to have been
secured by these presents.

4. If any default is made by me in payment of the said loan or interest or costs, charges and
expenses of any part thereof as may be incurred by you for the recovery of the said loan
and/or interest, you will be at liberty to sell and dispose of the said property and to apply the
net proceeds of such sale in satisfaction so far as the same will extent towards liquidation of
the amount due for principal and interest together with all costs, charges and expenses
incurred by you and I agree and undertake to accept your account of such sale duly signed
by you as sufficient proof of the erectness of the amount released by you and the costs
charges and expenses in connection with such sale.
P a g e | 505
5. I will also pay to you all costs, charges and expenses as pay be reasonably incurred by you,
of an incidental to or in connection with this security as well as for the protection or defense
of your rights as for the protection and security of the said property and for the payment,
realization and recovery of the amount of the said loan, interest, costs, charges and expenses
and other moneys agreed to be secured as aforesaid and the same will be paid on demand, by
me at……………………….(place) immediately on the same having been so incurred.

6. I agree to do and execute in your favour all acts matters, deeds, registration, assurances and
things as may be necessary or requisite for effectually carrying out the provisions of these
presents.

Yours faithfully,

Signature…………………………….

………………………………………..

Full name (in capital) of the borrower

Designation……………………
……

Department
etc…..………………….

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 Annexure IIB

Draft of the letter to be given by the borrowing employee after the equitable mortgage is
created

From: (Name & address of the borrower)

…………………………………………..

………………………………………….

………………………………………….

To (Competent officer of the concerned company)

Dear Sir,

Re: Housing loan for Rs …………….. covered under agreement dated …………….

AND

Equitable mortgage by deposit of title deeds to my property situated at ……………

This is to record and confirm that with intent to secure the housing loan of Rs…………. together
with interest and other moneys payable by me to the company in terms of the agreement dated
………….., I have delivered and deposited with Shri ………………………., being the duly
authorized officer of the company on the …………….. day of …………… the following title deeds
and the documents of my immovable properties situated at……………..

Yours faithfully,

Signature…………………………….

………………………………………..

Full name (in capital) of the borrower

Designation etc…..………………….

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 Annexure IIC

MEMORANDUM OF ENTRY

Pursuant to the sanction order no……………………………….. issued by the ……………

………………………………….. Shri………………………………….. (hereinafter referred to as

borrower) deposited with Shri………………………………… of the company the following title
deeds and documents relating to:

1. List of title deeds with brief description.

2. At the time of making such deposit, the borrower stated that he has deposited the said title
deeds with intent to create a security in favour of the company as and by way of equitable
mortgage by deposit of title deeds in respect of the said property for securing due repayment
by the borrower to the company of the housing loan of Rs……………………..
(Rupees………………………………………………) sanctioned by the company together
with interest thereon and all such costs, charges and expenses and other moneys payable by
the borrower to the company under the said agreement.

3. The borrower further assured and declared to the company that the title deeds so deposited
were the only title deeds of the said land/ house/ flat and that he was the absolute owner
thereof and that he had a marketable title thereto free from all encumbrances, claims and
demands and that there was no mortgage, charges, lien, encumbrance or attachment on the
said land/ house/ flat or any part thereof.

4. Shri………………………………………………… of the company accepted from the

borrower the said deposit of the title deeds on behalf of the company the purpose aforesaid.

5. The above was read over by Shri…………………………………….. to the borrower in the

presence of Shri…………………………………………. dated this ………………………
day of ………………………………………20…….

Signature of the witness……………………………

Name in full ………………………………………

Designation ……………………………………….

Signature of the borrower…………………………

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 Annexure IID

From:

………………………………………………

……………………………………………… (Designation of the authorized officer)

………………………………………………

To

Shri…………………………………………

(Name of the employee)

Designation ………………………………..

Department/ location……………………….

Sub: Mortgage of housing property purchased from loan assistance of the company

Dear Sir,

We confirm having received the title deeds and the covering letter detailed below:

S. No. Details of title deeds Covering letter detail

Signature

P a g e | 509
 Annexure III

FORM OF SURETY BOND TO BE EXECUTED IN RESPECT OF EMPLOYEES WHO

WANT TO DRAW DUE INSTALLMENTS EXCEPTING LAST INSTALLMENT FOR
CONSTRUCTION OF BUILDING BEFORE CREATION OF MORTGAGE BY
DEPOSIT OF TITLE DEED

KNOWN ALL MEN BY THESE PRESENTS THAT we, Sri…………………………….., son

of………………………………..a resident of ………………………………………………….in
the district of…………………………………………… at present employed as a permanent
employee as ………………………………………………………… EIS no ………….
(Designation)
in……………………………………………………(hereinafter called “The First Surety”) and
Sri…………………………………………………… son of …………………………………… a
resident of……………………………………………… in the district of ………………………
at present employed as a permanent employee as……………………………………EIS no
(Designation)
in…………………………………………………(hereinafter called “The Second Surety”) are
jointly and severally held and firmly bound unto…………………………………………………
(insert the name of the company) a company registered under the Companies Act., 1956 having its
registered office at………………………………………………………………(insert the address
of the company) in the ……………………….………………………………………..referred to as
“The Company” (which expression will unless excluded by or repugnant to the subject or context
include its successors and assigns in the sum of
Rs………………….(Rupees……………………………..) only to be paid to the company For
Which Payment to be well and truly made we hereby jointly and severally bind ourselves, our
heirs, executers, administrators and representatives firmly by these presents. As witness we set our
hands this day of…………………….. and WHEREAS Sri……………………….. a resident of
…………………………………………..in the district of …………….......................... at present
an employee of the……………………………..(hereafter called (insert the name of the company)
“The Borrower”) applied to the company for an advance Rs………………...
(Rupees…………………………………..) only for construction of building on the plot of land
a………………………….….P.S………………..District……………
AND WHEREAS the company sanctioned the payment of
Rs…………….…….(Rupees…………………………………………………) only under the
Rules framed by the company to regulate the grant of advance to company’s employees for building
of house (hereinafter referred to as the “Said Rules”).

AND WHEREAS the borrower has undertaken to repay the said amount in
……………………..monthly installments. AND WHEREAS the borrower has agreed to deposit
certified copy of the sale deed duly certified by the registrar and original registration receipt for
drawal of all the installments excepting the last installment of the sanctioned advance.

AND WHEREAS the borrower has further undertaken to mortgage the land and house by
depositing original title deed for the said amount before drawal of last and final installment of the
sanctioned advance but also within 18 months from the date of registration of the sale deed or
within further period of time as may be allowed by the company and to observe the provision of
the said rules. AND WHEREAS in consideration of the company having agreed to grant the
aforesaid advance to the borrower the Sureties have agreed to execute the above bond with such
condition as hereunder written.

P a g e | 510
NOW THE CONDITION OF TH ABOVE WRITTEN BOND OR OBLIGATION is such that
if the said borrower will while in the employment of the company duly and regularly pay or cause
to be paid to the company, the amount of the aforesaid advance owing to the company by
installments until the said sum of Rs……………………
(Rupees……………………………………………………………………...) only together with
interest thereon as per the rules of the company will be duly paid or mortgage to the company the
said land and building referred to above, whichever event happens earlier, then this bond will be
void otherwise the same be and remain in full force and virtue. BUT SO NEVERTHELESS that
if the borrower will die or become insolvent or at any time cease to be in the service of the company,
the whole or so mush of the said principal sum of Rs ………………
(Rupees…………………………………...............) only together with the interest as will then
remain unpaid will immediately become due and payable to the company and recoverable from the
sureties in one installment by virtue of this bond. We the above named first and second surety
jointly and severally undertake to pay full amount of advance and interest thereon on demand in
case the borrower Shri……………………………………………. fails to create mortgage by
deposit of the original title deed in favour of the company within specified time as stipulated in the
agreement executed by the borrower on………………….. for drawal of due installment of the
sanctioned advance. The obligation undertaken by the sureties will not be discharged or in any way
be affected by extension of time or any indulgence granted by the company to the said borrower.

Signed and delivered by

Shri………………………………......... Shri…………………………

(Signature of first surety) (Signature of second surety)

Designation…………………………… Designation……………

Office to which attached…………….. Office to which attached

The said first and second surety at………………………………in presence of:

1st witness…………………………….. 1st witness…………

Address……………………………….. Address……………
Occupation……………………………. Occupation………

2nd witness…………………………….. 2nd witness…………

Address……………………………….. Address……………
Occupation……………………………. Occupation…………

(Accepted by Shri………………………………………on behalf of company)

*strike out/ off whatever is not applicable.

N.B.:

1. This bond is to be executed on a non-judicial stamp paper of appropriate value as per

rules of the state in which this will be executed.
2. The signatures of the witnesses should be given in detail.
3. Two witnesses are required for each signature separately.

P a g e | 511
 Annexure IV

FORM OF SURETY BOND TO BE EXECUTED IN THE CASE OF ACQUIRING OF

FLATS/ HOUSES THROUGH MEMBERSHIP OF CO-OPERATIVE GROUP HOUSING
SOCIETIES

KNOWN ALL MEN BY THESE PRESENTS THAT WE, Sri…………………………….. son

of ……………………………………….. a resident of ………………………………………… in
the district of…………………………………………… at present employed as a permanent
employee as ………………………………………………………………………………………...
(Designation)
in……………………………………………………(hereinafter called “The First Surety”) and
Sri…………………………………………………… son of ………………………… a resident
of……………………………………………… in the district of …………………………………
at present employed as a permanent employee as………………………………………………
(Designation)
in…………………………………………………(hereinafter called “The Second Surety”) are
jointly and severally held and firmly bound unto……………………………………………
(insert the name of the company)
a company registered under the companies act, 1956 having its registered office
at……………………………………………………………………………………………………
(insert the address of the company)
in the ………………………………………..referred to as “The Company” (which expression will
unless excluded by or repugnant to the subject or context include its successors and assigns in the
sum of Rs………………….(Rupees……………………………………………………..) only to
be paid to the company FOR WHICH PAYMENT to be well and truly made we hereby jointly
and severally bind ourselves, our heirs, executers, administrators and representatives firmly by
these presents. As witness we set our hands this day of……………………..AND WHEREAS
Sri……………………….. a resident of ………………………………………………..in the
district of......................... at present an employee of the……………………………..(hereafter
called……………………………………………………………………………………………….
(insert the name of the company)
“The Borrower”) applied to the company for an advance Rs…………...(Rupees……………..) only
for purchase of a flat/ house situated at……………….................from
the…………………………………..society.

AND WHEREAS the borrower has undertaken to do and perform under the bond dated
the………………..day of……………………..20….., executed in favour of the……….................
(name of the company)
NOW THE CONDITION OF THE ABOVE WRITTEN BOND OR OBLIGATION is as
follows:

That we the First and Second Surety do hereby guarantee that the borrower will do and perform all
that he has undertaken to do and perform under the bond, dated the……………….day
of…………..20….. executed by him in the favour of the…………………………………… and
(name of the company
do hereby bind ourselves jointly and severally to pay the company a sum of
₹…………………………….. (in words) ₹………………………………………………….) only
being the amount due and payable by the borrower under the said bond or such sum as the company

P a g e | 512
will deem to be sufficient to cover any loss or damage, the company may have sustained by reason
of default of the borrower.

That we jointly and severally do hereby further agree that the company, may without prejudice of
any other rights and remedies, recover from us, the said sum, and we hereby further agree that any
forbearance in enforcement of the terms of the said bond or any other indulgence granted to the
borrower or any variation of the terms of the said bond or any time given to the borrower or any
other conditions or circumstances under which in law a surety would be discharged, will not
discharge us from our liability to pay the said sum and for the purpose of enforcement of this bond,
our liability under this bond will be as principal debtors and joint and several with that of the
borrower.

Dated this……………………… day of……………………. 20……….

Signed and delivered by

Shri………………………………......... Shri……………………………………..

(Signature of first surety) (Signature of second surety)

Designation…………………………… Designation……………

Office to which attached……………... Office to which attached……

The said first and second Surety at………………………………in presence of:

1st witness……………………………. 2nd witness……………..

Address……………………………….. Address……………

Occupation……………………………. Occupation………

Accepted by Shri……………………………………… for and on behalf of company.

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 Annexure V

FORM OF PERSONAL BOND TO BE EXECUTED IN THE CASE OF ACQUIRING

FLATS/ HOUSES THROUGH MEMBERSHIP OF GROUP HOUSING SOCIETIES

KNOW ALL MEN BY THESE PRESENTS THAT I, son of…………………………………

(hereinafter referred to as “the Bounden”) am held and firmly bound unto Coal India Limited/
subsidiary having its registered office at 10, Netaji Subhas Road, Kolkata-700001, hereinafter
called “the Company” (which expression will unless excluded by or repugnant to the subject or
context, include its successors and assigns) in the sum of ₹…………………… to be paid to the
company for loan of ₹………………. (hereinafter referred to as “the said loan”) for the purpose of
residential flat/houses situated at……………………………………………………………..and
more particularly described in the schedule hereunder written and which flat/ house on completion
of the construction is to transferred shortly to the bounden by the
………………………………………… society ltd., a co-operative having its registered office
(Name of the Society)
…………………………………………….(hereinafter referred to as “the Society”), which has
been duly sanctioned by the company, on the terms and conditions inter alia that the Bounden do
execute in favour of the company, a bond in the manner hereunder contained.

NOW THIS BOND IS CONDITIONED TO BE VOID IF THE Bounden:

(a) Duly pays to the company, the aid sum of ₹…………………………… within a period of
……………… years from the………………… day of………….20…….. by equal monthly
installments of ₹…………….. each, payable in each calendar month, the first such
installments to be paid in the month of ………….. 20….. and the subsequent installments to
be paid in each and every succeeding calendar month thereafter and after the Bounden had
duly paid the principal amount of the said loan in regular installments as hereinbefore
provided, the Bounden duly pays to the company within a further period
of……………………years. Thereafter, the amount of interest, on the diminishing balances
of the said loan until payment, at the rate of…….. percent per annum, such interest to be paid
by………… equal monthly installments of ₹………….. each, to be the interest that the entire
loan and interest thereon will be repaid within a period of……. YEARS FROM
THE………… day of……………… provided however, that if the Bounden fails to pay any
installments of principal and/ or interest on its due date, then and in every such case, the
amount of such installment of principal or interest so in arrears, will bear higher rate of
interest at the rate…………. percent per annum and the amount of each of the said
installments of interest, will be proportionately increased PROVIDED FURTHER that
nothing herein contained will be construed as relaxation of the Bounden’s obligation to duly
and punctually pay the said installments of principal and interest, on their respective due
dates or otherwise any right or remedy of the company.

(b) Within the time as will be granted by the company from the date of these presents, utilizes
the entire amount of the said loan in the purchase of a residential flat/ house situated at
…………………………………… and more particularly described in the Schedule
hereunder written and in the purchase of such shares and/ or debentures of the Society as
may be required to be purchased as qualification of membership of the said Society and
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 products to the company all requisite documents of the title concerning the completion to be
purchased as qualification.

(c) On transfer being executive in favour of the Bounden of the house/ flat, he would mortgage
it to the company as security for the loan obtained from the company.

(d) If the actual price of the said flat/ house and shares/ debentures required to be purchased as
aforesaid, is less that the amount of the said loan, repay the excess to the company forthwith.

(e) Does not transfer, assign, underlet the said flat/ house or any interest thereon part with
possession thereof for transfer or otherwise alienate the said shares/ debentures without the
previous consent writing of the company.

(f) So long as the said loan and interest or any part thereof is outstanding and if so required by
the company, hand over the said shares/ debentures to the company, along with properly
signed loan transfer forms, as further security for the said loan.

(g) IT IS HEREBY AGREED by the Bounden as under:

1. The said loan or the balance thereof for the time being due by the Bounden to the company
and all other moneys due under these presents, will become immediately payable to company
in each and every of the following events:

(i) If the Bounden fails to pay any installments or repayments of principal on its due date
as and when become due and payable.
(ii) If the Bounden makes default in payment of any installments of interest on its due date
as hereinabove provided.
(iii) If any distress or execution will be levied upon any property of the Bounden or a
receiver thereof be appointed.
(iv) If the Bounden commits a breach of any of the said covenants or provision and on his
part to be observed and performed.
(v) If the Bounden dies or retires from or ceases to be in the service of the company.
(vi) If the Bounden presents a petition for being adjudged insolvent or is adjudicated
insolvent.

2. The company will have the absolute right and full liberty to deduct every month from the
Bounden’s salary, the amount of monthly installments and appropriate the same towards the
said monthly installments, in repayment of principal and interest, and for the purpose
aforesaid, the Bounden hereby irrevocably authorizes the company, to make such deductions
without the necessity of any further consent or concurrence of the Bounden.

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3. In the event of the retirement or death before retirement of the Bounden, company will be
entitled to recover the entire unpaid balance of the said loan remaining unpaid, at the time
such retirement or death, and all unpaid interest thereon, from the gratuity, if any, that may
be sanctioned to the Bounden under the service rules applicable to him.

4. Whenever any installment of the principal or interest or any other sum, due and payable by
the Bounden under these presents, will be in arrears. The company will be entitled to recover
the same, PROVIDED ALWAYS THAT this clause will not affect any other rights, power
and remedies of the company.

IN WITNESS WHEREOF THE Bounden above mentioned has hereto set his hand the day and
year first herein above written.

THE SCHEDULE ABOVE REFERRED TO

Signed and delivered by Shri………................... Signature of the Bounden…………

The Bounden within Named…

Designation……………………………

Office to which attached…………

In the presence of……………………………...

1st witness…………………………….. 2nd witness……………

Address……………………………….. Address………………

Occupation……………………………. Occupation……………

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 Annexure VI

FORM OF AGREEMENT TO BE EXECUTED BY AN EMPLOYEE OF THE

COMPANY WHO IS NOT IN A POSITION TO CREATE MORTGAGE BY DEPOSIT
OF TITLE DEED DUE TO NON-AVAILABILITY OF ORIGINAL TITLE DEED FROM
REGISTERING AUTHORITY BEFORE DRAWAL OF DUE INSTALLMENT

AN AGREEMENT MADE THIS………………….DAY OF…………….20….. BETWEEN

Shri……………………………………………….,son of…………………………………..at
present serving as…………………………………………………hereinafter called “the
Borrower” (which expression will unless excluded by or repugnant to the subject or context include
his heirs, legal representatives, executors and administrators) of the ONE PART
and……………………………………............................................................................................

(insert the name of the

company)

Having its registered office at……………………………………………….hereinafter called “the

Company” (which expression will unless excluded by or repugnant to the subject or context include
its successors and assigns) of the OTHER PART.

WHEREAS the borrower desires to construct a residential building on the plot of land at
Village……………………………..P.S……………………………………Dist…………………
……….. fully described in the schedule hereunder written and WHEREAS the borrower has under
the provisions of the rules framed by the company to regulate the grant of advance to the company’s
employee for building and construction of house (hereinafter referred to as “the said rules” which
expression will where the context so admits include any amendment thereof or addition thereto for
the time being in force) applied to the company for an advance of
₹………………………….(Rupees…………………………..) only and the company has
sanctioned an advance of ₹………………………….(Rupees…………………………………)
only to the borrower vide company’s letter no………………………….dated……………… a copy
of which is annexed to these presents for the purpose aforesaid on the terms and conditions set
forth therein.

AND WHEREAS the borrower is unable to create mortgage by deposit of original title deed within
the stipulated time in terms of the sanction order in view of the difficulty being faced by the
borrower in obtaining the registered Original Title Deed from the Registering Authority.

NOW IT IS HEREBY AGREED BY AND BETWEEN THE PARTIES here to as follows:

1. In consideration of the sum of ₹………………………..(Rupees……………….............….)

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(insert full amount)

to be paid by the company in the manner provided in the letter of sanction after the execution
of this agreement for construction of a residential building at
Village…….P.S….....Dist……… to the borrower as provided in the said rules the borrower
hereby agrees with the company:

(a) To repay the company the said amount of ₹……………….(Rupees……………………...)

(insert full amount sanctioned) with interest calculated in accordance with the said Rules for
the time being in force by……………………….. (number to be filled in) monthly
installments of ₹………………………(Rupees………………..) only from his pay
commencing from the month of ……………… 20….. and the borrower hereby authorizes
the company to make such decisions from hi/her monthly pay and leave salary bills.

(b) To execute a document mortgaging the said land and building to be constructed in favour of
the company as security for the amount advanced to the borrower under these presents as
also for the interest payable for the said amount in the form provided by the said rules.

2. AND IT IS HEREBY further agreed that the borrower will furnish two sureties of the like
amount from permanent employees of the company not below the status of the borrower.
The liability of the sureties will continue, until the mortgage is created by the borrower or
till the entire amount of advance is fully repaid by the borrower.

3. AND IT IS HEREBY FURTHER AGREED AND DECLARED THAT if the land and
house are not mortgaged within 18 months from the date of registration of title deed/sale
deed or within further time as the company may allow in this behalf or if the borrower
becomes insolvent or quits the services of the company or dies the whole amount of advance
together with interest accruing thereon will immediately become due and payable to the
company and company may ask the sureties to deposit the entire amount at a time.

4. It is hereby agreed that the certified copy of the original title deed/sale deed duly certified by
the registrar and original registration receipt issued by the registrar will be submitted for
grant of……………………………….installment of the sanctioned advance.

5. It is further agreed that the borrower will create Mortgage by deposit of original title deed in
favour of the company before drawal of the last installment.

6. AND IT IS HEREBY LASTLY AGREED AND DECLARED that the company will be
entitled to recover the balance of the said advance with interest remaining unpaid at the time
of his/ her retirement or death preceding retirement from the whole or any specified part of
the gratuity that may be sanctioned to him/ her.

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7. Without prejudice to any other right of the company in that behalf if any amount becomes
refundable or payable by borrower to the company, the company will be entitled to recover
the same by deducting from pay of the borrower such amount as will deem reasonable.

The schedule above referred to:

IN WITNESS WHEREOF THE BORROWER has hereunto set his hand and Shri………… for
and on behalf of the company set his hand the date and year first before write.

SIGNED BY THE SAID BORROWER AT………………………in presence of:

…………………………………..
(full signature of the borrower)

1st witness ………………………………… 2nd witness ………………………

Address …………………………………… Address ………………………
Occupation…………………………………… Occupation………………………

SIGNED BY Shri……………………………..
(for & on behalf of the company) (insert name of the company)
at…………………………………………………………………………………)

In the presence of…………………………………….

1st witness ………………………………… 2nd witness ……………

Address …………………………………… Address ……………………
Occupation………………………………… Occupation…………………

N.B:

(1) This bond is to be executed on a non-judicial stamp paper of appropriate value as per
rules of the state in which this will be executed.
(2) The signatures of the witnesses should be given in full.
(3) The schedule of the land on which house will be constructed should be given in detail
by borrower.
(4) The letter of sanction of the company to be annexed.

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 Annexure VII

FORM OF RE-CONVEYANCE FOR HOUSE BUILDING ADVANCE

(in case of Registered Mortgage)

THIS DEED OF RECONVEYANCE IS MADE THIS …………… day of …………………..

20……. BETWEEN COAL INDIA LIMITED, a company registered under the Companies Act,
1956 having its registered office at 10, Netaji Subhas Road, Kolkata (hereinafter called the
mortgagee which expression will unless excluded by or repugnant to the subject or context include
its successors and assigns) of the one part and……………………………………… of
……………………………………….. (hereinafter called the mortgagor which expression will
unless excluded by or repugnant to the subject or context include his/ hers, executors,
administrators, representatives and assigns) of the other part.

WHEREAS by an Indenture of mortgage, dated the………………………day…………………

of…………….. 20…….. and made BETWEEN the mortgagor of the one part and he mortgagee
of the other part and registered at……………………..in book……………………………..
volume………………………………….pages……………….to…………..as on……………….
For…………………………(hereinafter called PRINCIPAL INDENTURE). The mortgagor by
the said principal indenture mortgaged the property at………………………………. and more
particularly described in the schedule hereunder written to the mortgagee to secure an advance of
Rs………………………………………….made by the mortgagee to the Mortgagor.

AND WHEREAS ALL MONEY due and owing on the security of the PRINCIPAL
INDENTURE have been fully paid and satisfied and the mortgagee has accordingly at the request
of the mortgagor agreed to execute re-conveyance of the mortgaged premises as is hereinafter
contained Now THIS INDENTURE WITNESSETH that in pursuance of the said agreement and
in consideration of the premises the mortgagee doth hereby grant, assign and re-convey unto the
mortgagor ALL THAT THE piece of land situated at…………………………. and comprised in
the said principal indenture and more particularly described in the schedule hereunder written with
their rights, easements and appurtenances as in the PRINCIPAL INDENTURE expressed and all
the estates right, title, interest property claim and demand whatsoever of the mortgagee into out of
or upon the said premises by virtue of the PRINCIPL INDENTURE to have and to hold the
premises here before expressed to be hereby granted assigned and re-conveyed unto and to the use
of the mortgagor, for over freed and discharged from all moneys intended to be secured by the said
PRINCIPAL INDENTURE and from all actions, suits, accounts, claims and demands for, or in
respect of the said moneys or any part thereof, for or in respect of, the PRINCIPAL INDENTURE
OR of any-thing relating to premises AND THE mortgage hereby convenants with the mortgagor
that the mortgagee has not done or knowingly suffered or been party thereof re or privy to anything
whereby the said premises or any part thereof are/ is or can be impeached encumbered or effected
in title estate of otherwise howsoever, IN WITNESS whereof the mortgagee has caused
…………………… on its behalf to set its hand the day and year first above written.

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 SCHEDULE ABOVE REFERRED TO

SIGNED BY ……………………………… for and on behalf of the mortgagee ………………

In the presence of

1st witness……………………………

Address………………………………

Occupation…………………………... ………………………………….
(Signature) (Signature)

For and on behalf of the company

2nd witness……………………………

Address………………………………

Occupation…………………………...

(Signature)

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 Annexure VIII

MEMORANDUM RECORDING MORTGAGE BY DEPOSIT OF TITLE DEEDS

WHERE THERE IS ALREADY AN EQUITABLE MORTGAGE

To (Name and address of the concerned company)

Further loan of ₹. . . . . . . . . . . . in addition to the loan of Rs. . secured by Equitable Mortgage
dated …………………………………………………………………….. .

On the ……………………………………. day of ……………………….I, Shri ………..…….....

…………………………………………………residing at No. . . . . . . …………………………..

(full name)

having my office at No. ………......................................................................................................

delivered to you at No …………………………………………………………………………….

(indicate full address)

the documents of title specified in Schedule "B' hereto annexed relating to the immoveable
property being No.
…………………………………………………………………………………………………

fully described in the Schedule 'A' hereto annexed including all buildings and structures standing
thereon or to be erected thereon with intent to create a security thereon in your favour nemely a
mortgage by deposit of title deeds within the meaning of Section 58(f) of the -Transfer of Property
Act. for securing due repayment of all moneys advanced or to be advanced to me by you by way
of House Building Loan together with all interest costs charges and expenses as between attorney
and client which you may incur or be put to for protection and preservation of the said security or
recovery of the amount or any part thereof. The said mortgage by deposit of title deeds has been
duly recorded.

In consideration of the
…………………………………………………………………………………….

(Name of the concerned company)

agreeing to grant me further loan upto Rs. . . . . . ………………. . . . . . . . . . (Rupees. .

…………………. ……………………………………………………………………………) for
House Building I Shri. . . . . . . .. . . . . . . . . . . . place on record that it has been agreed that the title
deeds specified in Schedule 'B' hereto annexed relating to the promises No.
…………………………. . including building and structures thereon which have been delivered
to your Company at No. ……………………………………………..

(indicate address)

on the. . ………………….day of. . …………………... . with intent to create a Security on the

said equitable mortgage together with all buildings and structures thereon or to be constructed

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 thereon shall be held by your Company as security in respect of further loan of Rs.
………………………………..

I further agree that all the terms, conditions and covenants relating to mortgage by deposit of title
deeds created on. . . . . . . . . . . . . . . . . shall be applicable to the mortgage by
deposit of title deeds also for the repayment of the said further loan of Rs.
……………………………………
Dated, this. . . . . . . . . . . . . . . . . . . . . . . . . .day of. . . . …………...20

SCHEDULE "A" ABOVE REFERRED TO

Particulars of Property

SCHEDULE "B" ABOVE REFERRED TO

List of Title Deeds

Signature. . . . . ………………………………
....

……………………………………………
………

Full Name (In Capital) of the Borrower

Designation. . . . .
……………………………... . .
Department etc. . . . ………….. . . . . . . . . . . . . . . .

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References

1 House Building Advance Rules – Amendments upto 09.01.1990.

2 OM No. CIL/C-5A(vi)/50724/V/166 dated 11.11.1997.

3 OM No. CIL/C5A(PC)/HBA/2828 dated 08.05.2018.
4 Letter No. CIL/XI(D)/04027/2021/26915 dated 20.07.2021.

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