Compendium of

House Building Advance (HBA)

Rules and FAQs

As on 31.07.2025
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 No. I-17011/13/2024-H.III (e-9185300)
Government of India
Ministry of Housing & Urban Affairs
(Housing-III Section)
*********

Nirman Bhavan, New Delhi

Dated: 6" August,, 2025
OFFICE MEMORANDUM
Subject: Compendium of the HOUSE BUILDING ADVANCE (HBA) Rules - reg.
The Ministry of Housing and Urban Affairs (MoHUA), as the Nodal Ministry for the
House Building Advance (HBA) scheme, oversees the policies, rules, and regulations
governing the provision of House Building Advance to Central Government employees.
Housing-III section is responsible for formulating these rules and addressing any
amendments or clarifications.

2. In this regard, it is stated that various OMs/Orders have been issued on the subject
by this Ministry from time to time since 1956. However, it has been observed that
there is no compilation of OMs/Orders available for Government employees for their
reference.

3. In view of the above, it has been decided to compile existing and relevant HBA
rules, OMS, and Orders into one cohesive document (ANNEXURE-I). This document
also features a set of Frequently Asked Questions (FAQs) based on common inquiries,
allowing employees to address their queries (ANNEXURE-II).
4. This issues with the approval of the Competent Authority.

(Sanjeet)
Joint Secretary & Financial Advisor (HUA)
Tel. No. 011-23062899

To

1. Secretaries of all the Ministries/Department of the Government of India

2. All the attached and subcrdinate offices of Ministry of Housing & Urban Affairs.
3. Union Territories of Andainan & Nicobar Islands, Chandigarh, Dadra and Nagar
Haveli and Daman & Diu, Lakshadweep.
4. Office of the Comptroller and Auditor General of India.
5. Registrar, Supreme Court of India.

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 COMPENDIUM OF HOUSE BUILDING ADVANCE (HBA) RULES AND FAQs
INDEX / TABLE OF CONTENTS

S. Section Title Page

No. No.
1 Introduction 1
2 Purpose 1
3 Eligibility 2
4 Cost Ceiling Conditions 2
5 Amount of Advance 3
6 Repayment Capacity 4
7 Applicable Rate of Interest and Methodology of Recovery 4
8 Disbursement 5
9 Recovery of HBA 6
10 Mortgage and Creation of Second Charge 7
11 Insurance 8
12 Migration 8
13 Repayment (for loans already taken from other sources) 9
14 Reconveyance Deed 9
15 Maintenance of Property 10
16 Order of Priorities for Sanction of HBA 10
17 Grant of HBA to Employees under Suspension 11
18 Other Extant Rules 11
19 Appendix A – Information Required in Cases of 13
Relaxation/Condonation of HBA Terms
20 Appendix B – List of Documents Required for 14
Condonation/Relaxation Cases
21 O.Ms and Orders pertaining to HBA 15-85
• Clarification (Para 2(i) of O.M dated 09.11.2017) regarding 15
House Building Advance
• House Building Advance Rules-O.M dated 09.11.2027 16-21
• Liberalization of House Building Advance scheme for 22-26
Central Govt. Employees
• Non-Practicing allowance for medical post-inclusion in 27
basic pay for HBA-clarification
• Rate of interest on HBA (F.Y. 2025-26) 28
• Rules to regulate the grant of advance-calculation of 29-30
interest
• HBA-repayment of advances-date of commencement of 31-32
repayment

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 • Rules to regulate advances-procedure for recovery of 33
advance against gratuity/death-cum-retirement gratuity
• Grant of HBA -recovery of advance and interest accrued 34-35
thereon
• Recovery of HBA from those who are absorbed in Central 36
Autonomous/Statutory bodies
• Stamp-duty on Mortgage Deed and Deed of Reconveyance 37
executed by Central Govt. Employees under scheme of HBA-
exemption of
• Interest bearing advances/Seventh Central Pay commission
recommendation on migration of existing employees who 38-39
have already taken home loans from banks/other financial
institution
• Grant of HBA to enable repayment of loans 40-43
• Financing of ‘Ownership Housing Scheme’ of Housing 44-45
agencies etc. by HUDCO out of funds of Group Insurance
Scheme
• Clarification reg. grant of HBA to enable repayment of loan 46
• HBA Rules- Reconveyance of properties after the advance,
with interest, has been recovered 47
48-70
• Revival of HBA
71-72
• Grant of HBA-Order of priorities
• Release of instalments of advance to officials under
73
suspension
• Release of instalments of advance to officials under 74
suspension after obtaining collateral security
• Small family norms in HBA 75
• Liberalization of HBA 76-77
• Insurance of houses/flats constructed or acquired with help 78-79
of HBA-condonation of the period of non-insurance
• Compliance with the terms and conditions attached with 80-83
sanction of HBA (O.M. dated 03.10.2024)
• Compliance with the terms and conditions attached with 84-85
sanction of HBA (O.M. dated 09.01.2003)
25 FAQs 86-91

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 ANNEXURE-I

COMPENDIUM OF THE HOUSE BUILDING ADVANCE (HBA) RULES

The consolidated and updated rules/guidelines on House Building Advance (HBA)

are as follows:

I. Introduction:

Grant of House Building Advance for Central Government employees is

regulated in terms of rules and regulations laid down from time to time by Ministry
of Housing & Urban Affairs (erstwhile Ministry of Urban Development).

II. Purpose:

House Building Advance (HBA) is admissible to an employee for only one of the
following purposes:-

i. Constructing a new house on the plot owned by the employee or the employee
and employee’s spouse jointly with clear title of the plot

(I-17011/6(3)/13/2018-H.III dated 01.08.2018).(pg15)

ii. Purchasing a plot and constructing a house thereon.

iii. Purchasing a plot under co-operative Schemes and constructing a house/flat

thereon or acquiring a house through membership of Cooperative Group Housing
Societies.

iv. Purchase/construction of house under the self-financing schemes of Delhi

Bangalore, UP, Lucknow etc.

v. Outright purchase of a new ready-built house/flat from Housing Boards,

Development Authorities and other statutory or semi-Government bodies and from
registered builders i.e., registered private builders, architects, house building
societies, etc., but not from private individuals.

vi. Expansion of living accommodation of an existing house owned by the

employee or jointly with spouse. The total cost of the existing structure (excluding
cost of land) and the proposed additions should not exceed the prescribed cost
ceiling under these rules.

vii. Repayment of loan or advance taken from a Government or HUDCO or private

sources even if the construction has commenced, subject to certain conditions.

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viii. Existing employees who have already taken Home Loans from Banks and
other financial institutions are allowed to migrate to this scheme, subject to
fulfillment of extant conditions.

ix. Constructing only, residential portion of the building on a plot earmarked for a
shop-cum-residential plot, in a residential colony, subject to prescribed cost ceiling.

III. Eligibility:

i. All permanent government employees.

ii. All other employees with at least 5 years of continuous service, provided they do
not hold permanent appointment under a State Government and the sanctioning
authority is satisfied about their likely retention in service till the house is built and
mortgaged.

iii. Members of All India Services deputed for service under the Central
Government/Company/Association/Body of individuals whether incorporated or
not, which is wholly or substantially owned or controlled by the Central
Government or an International Organization, and autonomous body not controlled
by Government or Private Body.

iv. Employees of Union Territories.

v. Staff/ Artistes of the All India Radio who fulfil the condition prescribed at (ii)
above and have been appointed in long term contracts extending to the age as per
extant rules.

vi. Central government employees governed by the Payment of Wages Act, 1936.

vii. Central government employees on deputation to another Department or on

Foreign Service, such cases to be processed by the Head of the Office of the Parent
Department.

viii. Extant rules for eligibility conditions of Ex-servicemen and of central

government employees under suspension remains unchanged.

Note: In cases where both the spouses are central government employees and
both are eligible for grant of House Building Advance, the advance will be
admissible to both of them jointly/ separately.

(OM No. I.17011/11(4)/2016-H-III dated 09.11.2017)(pg 16-21)

IV. Cost Ceiling Conditions:

Cost of the house to be built/purchased (excluding the cost of plot) should not
exceed 139 times of the basic pay of the employee subject to a maximum of Rs.

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1.00 crore (one crore) only. In individual cases, if the Administrative Ministry is
satisfied on the merits of the case, the cost ceiling may be relaxed up to a maximum
of 25% by the Head of the Department.

(OM No. I.17011/11(4)/2016-H-III dated 09.11.2017) (pg 16-21)

V. Amount of Advance:

i. Only one advance shall be sanctioned to the government servant during his/her
entire service.

ii. The maximum amount of advance shall be:

a) 34 months basic pay subject to a maximum of Rs. 25.00 lakhs only (Rs.
Twenty five lakhs), or cost of the house/flat, or the amount according to
repaying capacity, whichever is the least for construction/purchase of new
house/flat.

b) For expansion of existing house, the amount of HBA will be limited to 34

months basic pay subject to maximum of Rs. 10.00 lakhs only (Rs. Ten lakhs),
or the cost of the expansion, or the amount according to repaying capacity,
whichever is the least.

c) The amount of the advance shall be restricted to 80% of true cost of the land
and construction of house or cost of expansion of living accommodation in the
case of construction in rural areas. This can be relaxed and 100% can be
sanctioned if the Head of the Department certifies that the concerned rural area
falls within the periphery of town or city.

(OM No. I.17011/11(4)/2016-H-III dated 09.11.2017). (pg 16-21)

iii. In cases where both the spouses are central government employees and both
are eligible for grant of House Building Advance, the advance will be admissible to
both of them jointly/ separately subject to maximum amount of advance as
mentioned in above point separately to both of them.

iv. Family Pension at normal rates drawn by a Government servant will be clubbed
with Basic Pay in computing of House Building Advance as well as determining
the cost ceiling limit and repaying capacity.

(Order No. I/17015/6/83/H.III dated 07.04.1984 ).(pg 22-26)

v. Non-practicing allowance sanctioned for medical posts may be treated as ‘Basic

Pay’ for the purpose of House Building Advance.

(Order No. I/17011/3/86/H.III dated 01.08.1989). (pg27)

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VI. Repayment Capacity:

i. For the purpose of calculating the admissible loan amount, the repayment
capacity of the central government employee shall be calculated as below:

a) In cases of employee retiring after 20 years. 40% of basic pay.

b) In cases of employee retiring after 10 years but not Up to 40% of basic pay.
later than 20 years. 65% of DCR
Gratuity may also be
adjusted.
c) In cases of employee retiring within 10 years. Up to 50% of basic pay
DCR Gratuity up to 75%
can be adjusted.
(OM No. I.17011/11(4)/2016-H-III dated 09.11.2017). (pg 16-21)

VII. Applicable Rate of Interest and Methodology of Recovery of House

Building Advance:

i. The Interest on Housing Building Advance for the financial year 2024-25 shall be
7.44%.

(Order No. I-17015/2(2)/2024/H.III/30 dated 27.03.2025 ). (pg28)

ii. The interest rate shall be reviewed every Financial Year in consultation with
Ministry of Finance (As per present practice).

iii. All cases of subsequent tranches/instalments of HBA being taken by the

employee in different financial years shall be governed by the applicable rate of
interest in the year in which the HBA was sanctioned, in the event of change in the
rate of interest.

iv. The methodology of recovery of HBA shall continue as per the existing pattern
of recovery of principal first in the first fifteen years in not more than 180 monthly
instalments and interest thereafter in next five years in not more than 60 monthly
instalments.

v. The advance carries simple interest from the date of payment of first instalment.
Interest is calculated on the balance outstanding on the last day of each month

(Order No. 10/15/69-H.III dated 21.09.1970 ).(pg 29-30)

Note: The clause of adding a higher rate of interest at 2.5% (two point five percent)
above the prescribed rate during sanction of House Building Advance, as
reproduced below, stands withdrawn.

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"Sanction Order should stipulate the interest 2.5% over and above the scheduled
rates with the stipulation that, if conditions attached to the sanction including those
relating to the recovery of amount are fulfilled completely to the satisfaction of
competent authority, a rebate of interest of the extent of 2.5% will be allowed".

VIII. Disbursement:

i. Advance for purchase of ready built house/flat can be paid in one lump sum as
soon as the applicant executes an agreement in the prescribed form. The employee
should ensure that the house is purchased and mortgaged to the Government within
3 months of drawl of the advance.

ii. Advance for purchase ready built flat/construction of House may be paid either
in one lump sum or in convenient instalments at the discretion of the Head of
Department. The employee should execute the agreement in prescribed form before
the advance/first instalment of advance is paid to him/her. The amount drawn by
the employee should be utilized for the purchase of flat/ construction of house
within one month.

iii. Advance for construction/expansion of living accommodation, etc., shall be

payable in two instalments of 50% each. The first instalment will be paid after the
plot and proposed house/existing house is mortgaged and the balance on the
construction-reaching plinth level.

iv. Advance for expansion to be carried out on the upper storey of the house will be
disbursed in two instalments, first instalment on executing the mortgage deed and
the second instalment on the construction reaching roof-level.

v. In the case of advance for purchase of plot and construction of house thereon, the
advance will be disbursed as below:

(a)Single Storeyed House: After agreement in prescribed form is executed on

production of surety bond, 40% of the advance or actual cost will be disbursed for
purchase of plot. The balance amount will be disbursed in two equal instalments,
first after the mortgage is executed and second on the construction reaching plinth
level.

(b)Double Storeyed House: 30% of advance for cost of plot will be disbursed
on executing the agreement. The balance amount will be disbursed in two equal
instalments, the first on executing the mortgage deed and the second on
construction reaching plinth level.

(OM No. I.17011/11(4)/2016-H-III dated 09.11.2017). (pg 16-21)

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IX. Recovery of HBA:

i. The recovery should commence as follows:

a) In the case of advance for purchase of land and construction of house, from
the pay of the month following the completion of the house or from the pay of
24th month after the date on which advance for purchase of plot was paid,
whichever is earlier.

b) In a case of advance for construction of house, from the pay of the month
following the completion of the house or from the pay of 18 th month after the
date of disbursement of first instalment of the advance, whichever is earlier.

c) In the case of advance for purchase of ready-built house/flat, from the pay of
the month following that in which the advance is drawn.

(Order No. I/17011/9/72-H.III dated 24.03.1973).(pg 31-32)

ii. In such case where a Government servant dies while in service and a portion of
the outstanding balance of the advance is to be set off against the death-cum-
retirement gratuity admissible to his successor, no interest should be charged on the
amount of the advance thus adjusted against death-cum-retirement gratuity, beyond
the death of the Government servant.

(Order No. 10/15/59-HIV dated 15.04.1965 ). (pg 33)

iii. In such cases where amount of advance or the balance amount of advance, as
the case may be, is refunded in one lump sum, the recovery of interest commences
from the month following the month in which the advance is refunded in lump sum
and that the same is not postponed, under any circumstances, till the amount of
advance is worked out by the concerned authorities and intimated to the loanee, for
payment in one lump sum.

(Order No. I/17011/1/71-H.III dated 22.02.1971). (pg 34-35)

iv. If a Government servant ceases to be in service for any reason other than normal
retirement/superannuation or if he dies before repayment of the advance in full, the
entire outstanding amount will become payable forthwith

(Order No. I/17015/23/H.III/85 dated 03.09.1986 ).(pg 36)

viii. In such cases where employees are permanently absorbed in Public Sector
Undertakings where pension scheme is in operation, it has been decided that:

a) since on the date of the absorption of a Government servant in an

autonomous body, the Government will discharge its pensionary liability by
paying in one lump sum, as a onetime payment, the pro-rata pension/service

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 gratuity and DCRG for the service rendered by the Government servant, the
outstanding amount of HBA along with interest shall be deducted out of the
total amount so payable by the Government to the autonomous body.

b) Thereafter, if any balance is still outstanding against the employee it will be

recovered in instalments by the autonomous body for which an undertaking will
be given by the concerned organization/body saying that it will ensure the
recovery of balance of HBA including interest thereon, in monthly instalments
from the employee and remit it to the AO responsible for watching its
recoveries.

(Order No. I/17015/23/H.III/85 dated 03.09.1986 ). (pg36)

X.Mortgage and Creation of Second Charge:

i. House shall be mortgaged on the behalf of President of India. However, the

employee, if he wishes to take a second charge to meet the balance cost of the
house/ plot or flat from recognized financial institutions, then he/ she may declare
the same and apply for NOC at the time of the applying for HBA. NOC for second
charge will be given along with sanction order of HBA. The total loan form HBA
and from all other sources cannot be beyond ceiling cost of the house as defined
under para 4 above.

ii. In case if HBA is availed by both husband/wife jointly;

a) HBA Mortgage paper, insurance paper and other papers regarding property
shall be submitted to one of the loan sanctioning authorities of their choice.
b) A No Objection Certificate may be obtained from the 2nd loan sanctioning
authority.
c) The property mortgaged to behalf of President of India, shall be reconvened
on the prescribed form to the central government employee concerned (or their
successors in interest, as the case may be), after the advance together with
interest thereon, has been repaid to Government in full and after obtaining No
Demand Certificate in respect of HBA loan sanctioned by the 2nd loan
sanctioning authority.

iii. Stamp duty on Mortgage Deed and Reconveyance Deed, wherever charged, has
to be borne by the loanee Government servant and re-imbursement thereof is not
admissible.

(Order No. I/17015/4/89-H.III dated 28.02.1989). (pg37)

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XI. Insurance:

i. Immediately on completion of construction/purchase of house/flat, the employee

shall insure the house with the recognized institutions as approved by Insurance
Regulatory and Development Authority (IRDA), for not less than the amount of
advance and shall keep it so insured against damage by fire, flood and lightning till
the advance together with interest thereon is repaid in full and deposit the policy
documents with the Head of the Department (HoD). Renewal of insurance will be
done every year and premium receipts produced for inspection of the HoD
regularly.

ii. Penal interest of 2% over and above existing rate of interest will be recovered
from the employee for those periods which are not covered by insurance of the
house.

XII. Migration:

For government employees who have already taken home loans from
Banks/other Financial Institutions and wish to migrate to this scheme, following
conditions will be applicable:

i. Before granting such House Building Advance, the head of the Department;

a) should satisfy himself that the home loans were taken by the government
employee entirely for the purpose of construction/purchase of new house/flat.

b) should ensure that the House Building Advance sanctioned is limited to the
amount of loan still due to be repaid by the government employee.

ii. House Building Advance can be availed towards repayment of bank loan taken
for the purpose of construction /purchase of new house/flat.

iii. Employee shall be eligible for grant of House Building Advance on the date
he/she obtained loan from banks and other financial institutions, irrespective of
whether they applied for House Building Advance before raising loan.

iv. House Building Advance for repayment of loan shall be granted to the eligible
employee in one lump sum. However, the Government employee shall produce
HBA utilization certificate within one month from the date of release of HBA.

v. Employee has to satisfy the other existing provisions related to House Building
Advance.

(Order No. I-17011/11(4)/2016-H.III dated 31.01.2018). (pg 38-39)

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XIII. Repayment:

Government servant can utilize the amount of House Building Advance for
purpose of repayment of loan or advance taken from Government or HUDCO or
private sources even if the construction has commenced.

(i) Before granting such House Building Advance, the Head of Department;

(a) should satisfy himself that the other loans were taken by the Government
servant entirely for the purpose of construction/purchase of house/flat.

(b) should ensure that the House Building Advance sanctioned is limited to the
amount of loan still due to be repaid by the Government servant.

(ii) House Building Advance in such cases will be admissible only to those govt.
servants who before raising loan from non-govt. sources applied for HBA but could
not be sanctioned the same due to paucity of funds.

(iii) The Government servant has to satisfy himself the provisions of Conduct Rules
applicable to him. CCS (Conduct) Rules provide for declaration of sources of
finance for such purpose, with full details thereof, the Head of Department can
consult these declaration in this matter.

(Order No. I/17011/3/86/H.III dated 17.04.1989)(pg 40-41)

(Order No. I/17011/3/86/H.III dated 07.09.1990)(pg 42-43)

(Order No. I/17015/2/85-H.III dated 01.10.1991)(pg 44-45)

(Order No. I/17011/3/86/H.III dated 27.05.1992)(pg 46)

XXIV. Reconveyance Deed:

(i) After the advance, together with interest due thereon has been fully recovered,
the property mortgaged as security for the advance, should be reconveyed to the
Government employee as under:

(a) the Reconveyance Deed should be executed by the head of Department who
generally accepts the Mortgage Deed on behalf of the President of India;

(b) the Reconveyance Deed should be got registered as Registration is

compulsory under Section 17(1)(c) of the Registration Act, 1908;

(c) after the Reconveyance Deed has been executed and registered, the
Mortgage Deed, the Sale Deed and such other documents deposited by the
loaned should be returned to him and a receipt should be taken and kept on
record along with a copy of the Reconveyance Deed.

(Order No. 10/1/68-H.III (Pt) dated 10.10.1968).(pg 47)

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(ii) In case a Government servant dies intestate and House Building Advance taken
by him has been fully recovered from the gratuity or otherwise, the mortgaged
property should be reconveyed to one of the legal heirs of the deceased loanee,
provided that other legal heir(s) if any, submit affidavit to the effect that they have
no objection, if the mortgaged property is reconveyed to him/her.

XV.Maintenance of property:

i. The house/flat must be maintained in good repair by the Government servant at

his own cost. 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 repaid to the Government in full. The Government servant shall furnish an
annual certificate to this effect to the Head of the Department.

ii. After completion of the house, annual inspections 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 Government servant concerned shall afford necessary facility for these
inspections by the officer(s) designated for the purpose.

(Order No. H.II-27(5)/54 dated 12.04.1956 )(pg 48-70)

XVI. Order of priorities for sanction of HBA:

House Building Advances may be sanctioned within the allocated funds according
to the priorities as indicated below:

i. The first priority may be accorded to construction cases where commitments have
already been made, i.e., 1st instalment has been released for construction and 2 nd
and subsequent instalments have to be released at plinth and roof levels.

ii. The second priority may be for those applicants who are due to retire shortly-say
within next 5 years as any delay in their case will further reduce the period of
recovery, thereby affecting the quantum of advance.

iii. The next priority may be accorded to applications for purchase of ready-built
flats where the City Housing Boards, Development Authorities or even private
parties have fixed a time limit for payment, and non-payment by the due date is
likely to result in cancellation of allotment or offer to sell, in the case of latter, there
is the risk of earnest money paid by the applicant being forfeited.

iv. In the last category may fall applications not covered by above.

(Order No. I/17015/50/77-H.III dated 03.11.1978)(pg 71-72)

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XVII. Grant of HBA to employees under suspension:

i. An official under suspension is prevented from carrying out his normal duties but
continues to be a Government servant, and received subsistence allowance, his
other rights and obligations should not be affected. As such, the Central
Government Servants, who are placed under suspension, continue to be eligible for
advance and payment on this account can be made to them by the Head of the
Department subject to the condition that collateral security in the shape of mortgage
bond from two permanent Central Government Servants should be obtained so that
in the event of default or belated payment or insufficient money being available by
foreclosure etc. the shortage of recovery may be made up by collateral security

(Order No. I/17011/5/75-HIII dated 05.07.1975).(pg 73)

ii. The mortgagor of the required Deed that is permanent government servants who
mortgage their property as Collateral Security in order to make the Government
servant under suspension eligible for House Building Advance, will be required to
bear the stamp duty.

(Order No. I/17012/1/89/H.III dated 12.12.1989).(pg 74)

XVIII. Other extant rules:

i. Interest rebate available to HBA beneficiaries for promoting small family norms
stands withdrawn w.e.f. 01.07.2017.

(Order no. I-17011/11(4)/2016-H.III dated 31.01.2018).(pg75)

ii. An applicant for the House Building Advance, under these rules, shall not be
eligible for such advance, if the applicant or his/her spouse or minor son(s)
individually or jointly owns a house in the town/urban agglomeration in which a
house is proposed to be constructed/purchased by the applicant:

Provided that if the house already so owned by the applicant as mentioned above
is a coparcenary property belonging to HUF of which the applicant is a member or
a joint property in which the applicant has a share or interest together with persons
other than (or in addition to) his/her spouse or minor son(s), the applicant shall be
eligible to House Building Advance not exceeding 60 percent of the amount which
would otherwise have been normally admissible to him under these rules, for the
construction/purchase of a house with the advance from the Government. For the
purpose of this rule, ‘House’ will also include Flat.

(Order No. I/17015/6/83/H.III dated 08.01.1985). (pg 76-77)

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(iii) The Central Government employees who construct/acquire houses/flats with
the help of House Building Advance (HBA) are required to get these insured
against fire, flood and lightning soon after completion/acquisition. The Heads of
Department are empowered to condone the non-insurance for a period non
exceeding two years. Cases involving condonation period exceeding two years are
required to be sent to this Ministry for consideration.

(Order No. I/17015/12/85-H.III dated 16.06.1995).(pg 78-79)

(iv) All the Ministries and Department of the Government of India shall ensure that
all the terms and conditions attached with the sanction of House Building Advance
(HBA) to government employees under the rules including those relating to
insurance and mortgage are duly complied with by all the concerned loanee
government servants. Moreover, provisions have also been made for
condonation/relaxation of these terms and conditions in cases where the
circumstances are beyond the control of the loanee government servant and
supported with concurrence of Finance Division and specific recommendation of
the concerned Joint Secretary/Head of Department for condonation/relaxation of
the provisions of the HBA rules/sanction with all the details in the prescribed
proforma (ANNEXURE-I) along with all the supporting documents (ANNEXURE-
II) certifying that the circumstances leading to non-compliance of HBA rules are
beyond the control of the government servant
(O.M. No. I-17011/12/2002-H.III dated 03.10.2024). (pg 80-83)

XIX. Apart from above stated changes in relevant sections in the earlier version of
House Building Advance rules, all other extant rules shall continue to apply untill
further orders.

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 APPENDIX-A

Information required in cases of relaxation/condonation of terms and conditions of HBA

sanction:

S.NO. Requisite documents/Information Responses

1 HBA sanctioning Ministry/Department
2 i) HBA sanctioned amount

ii) Year of sanction

(copy of Sanction letter to be attached)

3 Property details:-
i) Type of property purchased and its address
ii) Name of details of the seller agency
iii) Date of completion of construction/date of
possession of the property

4 Possession letter of the flat or completion

certificate of the house (copy to be attached).
5 Is loanee still in service? Yes/No
6 Present employer of the loanee
7 All dues paid by loanee Government Servant?
(Advance with interest & penal interest)
Yes/No
[Certificate in this regard is to be attached]
8 Municipal taxes, if any, paid until the recovery
of HBA
9 Any other loans/advance exists for property in
question? Yes/No
10 Is Reconveyance Deed executed?
11 Period of non-mortgage and non-insurance with
details
12 Request of the loanee Government Servant for
condonation of the lapses with justification
supported by documents.
13. Views of the HBA sanctioning
Ministry/Department on justification for non-
compliance of HBA rules.
[A certificate in this regard is to be given by the
concerned Ministry/Department duly certifying
that the non-compliance of conditions of HBA
sanction were beyond the control of the loanee
Govt. Servant]

14. Is concurrence of Finance Division obtained?

Yes/No
15. Is the case approved by JS (Admn)? Yes/No

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 APPENDIX -B

Documents required in cases of relaxation/condonation of terms and

conditions of HBA:

i. HBA Sanction Order

ii. Possession letter of the property
iii. Mortgage Papers of the property
iv. Insurance papers
v. Reconveyance Deed
vi. Request letter of the loanee for condonation of the lapses with justification
supported by documents.
vii. Certificate regarding payment of all dues including interest and penal interest
by the loanee.
viii. Municipal tax receipts if the property was not insured during the recovery of
HBA.

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 |-17011/6(3)/1 3/2018-H.III
Government of India
Ministry of Housing & Urban Affairs
Housing-!ll Section
kkkk*

Nirman Bhawan, New Delhi,

Dated .08.2018.
OFFICE MEMORANDUM
Subject: Clarifications regarding House Building Advance - reg.
The undersigned is directed to say that in partial modification to the Ministry of
Housing &Urban Affairs OM No. I.17011/11(4)/2016-H.Il dated 09.11.2017 regarding
House Building Advance Rules - 2017, the competent authority has approved to
modify the provision of para 2(0) in place of the existing provision.
2 Para 20may be read as under:

"Constructing a new house on the plot owned by the employee or the

employee and theemployee's wife/husband jointly with the clear title of the
plot'.
3. All the other existing provisions in the said OM of even no. dated 09.11.2017
shall remain same.

(Shailendra Vikram Singh)

Director (|FD)
Tel:011-23062798
To

1. Allthe Central Government Offices/ Departments.

2. Copy to NIC to upload in the Ministry website.

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 No"I/17015/6/83/ II
Government of Indía
Ministry of Works and iou[i ng

Nos Delhi, dated the 74-19844

Ofiice ldemorauxit!
Subjecti- ibcra li gation of House Bui liing Avance Schene for Contrl
Guvernncnt Employe cse

The question of 1ibera li sation of the ters 2nd. coditions for

grant of House Bui lding Advance to Central Gcvernricnt Emoloyecs in view
Or rise in costs of nstruction and. other relevant factors, has bion
engaging theh ttention of the Government of India for. sna tim, After
Considering tho. rec anonde tions made by ¡n Intar-.nistori&l Group
Gonstituted for this purnose, the Presidont b$ plea sed to approve the
following' changes in the existing Scheme -
I. QANTUM QF HOUSE BUI IDI NG ADVANCES (HBA)
4) The pxi sting ma xirium linit of House Building Adiance (HBA )
viz. 75.mÍnths pay bfthe emp löyee or' s 70,000/ which¡ver
is less vi ll be raised to 100 months pay er Ro Ia25 làkas,
whichever is loss,. for construction/acqiisition of à houscr
B) Theexi sti ng limit of 75 tines nonth ly pay. cUbject toa
maxi n°n of i 25,000/- will be raised a t00: ttre ttly
paó subject to a maxi num of. ta 40,000/ for enlarçement gÉ
exi sting house.
In both cases the amount of advance actually admissible wiI! te.
limited to the repaying capacity of. the emplcyee or the actuaa cast cf
oonstruction/acquisition/ enlazgonent, whichever is less.
II" BERS OF COOPERA TVE dROUP HOJSING pCIETESI
Ccatrel Governent cmployees who acq1ire houses throuçh.
membershiTof CQ-opdzative Group Housirg Societies sha lial_o' becligibe
for grànt of Hoos¢ Building Adance upto thé. enhanced linit in para:I
abovee $uçh employees sha ll however be reg1ired to fuznish thÝ:
folloving document'in addition to Perscial Bond for drawings HBak
the_eisting ceiling linit of's70,000/
a) An agreement to mortgage the flat follosed by daposit c
title deed's. (£s and when avilable).
b) Prghts sory Note in rosect of the, amunt of thc princil
plu interest at,tho sped fiol,rates.
The doçints at(a) & above i11 bo in substitution cf
registored mortjages Whexe a promissory hote is given, Sety borcs.
will hot be nacoçsary"

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 IIl. REPAYTNG CA PACITY: employces
Government
anplicant
capaci ty of lhe
lhe re paying following basist
will be computd on th canaciy.
Slab of reDaYiO
Lenth efzefalningaQrvicei
50% of basic pays
aftor 20 ycars
a) Officia ls. 80% of
60% of basic paye adj:1gtede
b) Officials retiring a fter 10 years DCRG nay also
be
but not latur th£n 20 yearso, Go%
66/2/ ef be gic pay.
adýustede
c) .0fficia ls rotiring within
10 yearso ofDCR may a iso be

IV) COGT CEI LI NG LIMI TS: yide this

presçribed
ceiling limi ts as 1933, wi l1 be
Tho ex1oting cost
O,M-No.i/170ii/i/79III, da ted 23rd April,
Ministry's
readjusted as, uncer t
Cost Cang
CategoTYI
basic Ise lo 25 Lakhse
employees wiose 100 months
L) For
pay is upto tsa 80}a00/ .Ei200:2akhe

basic pey
whse 100 months Rsol,70,(000/a
2) For employees is upto
exceeds iss 80,000/ but
l00.months! basic pay
3)For eployees whose
excCeeds El,70,ÓÌ0/
V). RATES OF}NTEREST:
Avanc as
bgtes of interest on House Building 2th
Ei sting slàb OaMNTeI/17011//8 HEi, dated.
Ministry's
noti fied'vide this as undert
.May; 1981, wi ll' be revied
REte of Intere
Anount of Acance
anná
7 per cent per a n i s
For the first Rse 25,00 885 per centeT
For the next R 25,000 10.5 per cert per an
For the next s 25,000 12 per c t per airurDe
For the next Rs50,000
AS AYy
VI. REATING "FAAILY PENST QN
dran by a GoveTEITt -sevant
Family Pension at norma l. rates quantun of House Buildi ny
'in comuting
trill be clubbed with basic pay the cosi ceiling 4 mitand
epaying
determining
Advance as well:as for
capacity"
THE GUWENNENT BAPLCIERS WHO
VII. HOUSE BUI LOI GADNGE TO
ALREADY lN HOUSES
Res
in the Hou se Biilirg Adarce
Ihe existing stipu.lation.applicants wifohuaba1/ri horthil£
that .nei ther the applicant nor the

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 Should own a house in Urban area for the Gov ernmont servant
to become
subject to the
eligible"for IRA, has bren deletede This is hov!evcT, not
Condition thatthe applicant's v fe/husbend/mí nor thi ld should.hoiga
lomoration whcre the
a lreay own a house in the townurban agg avanco from .a
ProposCd to bè constructed or acqui rud .ivi th the

VIII DATE OF. EFFECT OF THE ORDERS

l41984 Hlowevet,
The so orders will-come into effect fromalroady been' sanctisnNgd
has
tho pa_t ca ses who re House Building Advancereviewed
but not drewn by the nployeo may also be .for erhanC çmcnt" ot
bcen-sanationed -añd
ayanco, if applicd fore In case vihere the HB. hes following cohd{ttonst
alo drawn, the erhancumert wil1 be subject to the
1). The Goyrnnsnt servants shou ld not have drawD the entir
amourt of HBA sanctioncd underthe earlier ordorsi
ii). "hãrevised: amount of HBA calculatod as. per the liberaliscd
Schcne 'shall ntbt exceed 50% of the HBA amount previous ly
s_rctioned.
Forra l. amendmernts tothe Nouse Building Advance Rules.will be
issucd in cue' cours0o.
This issues .with the concurçence of the Kinistry of Fiaance
vide. thoir- U.0, No. 1934I P/A, dated 24m3-1984" '.
In sofar.ás the persons serving in the, Indián Audit and
Acc aunts Deptt are concerhed; these ordorsi_sue in çonsultation wi th
the Comptrol ler and Audi tor General of Incia.

(S+T Veezt haghavan)

JOIN TSEÇRETARY(FINITE)
Encls as akovc.
To
India.
1" All the Ministries/ rartnents of the o v n t of
iinistrations o 2 a l . : 1 1 , i i h
2 Union Territory A
A a r Nic
LalkshGweé p, Da dr a ard Nagar Haveii at
Islan ds.

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Deo

- 4-

Copy f orwarde d to:

w1th
General of Inda, New De lhí. This has
l. Comptroler and Avdltor 6th At 11, 234,
442-TA.II/12.-84, dated
re ference tù is )oYiotO
Jecretary (AR), Deptt. of Purs
C1.&
23hr1 RPararagar, Addit ional
Delhi.
Adminlstrative R9fTns, New
tpt.
Secretary(Pers), Vinistry of F1nance,
3. Shri 8.C.Mahalik,'. Joint
of Expenditure, New Delhl.
Secretary( JCM), Deptt 0f Personnel & A ae
. Shri S-kristnan, Joint
Re forms, New DDlhi.
and Housing, New yelhi.
Hnance Ddvisio1 (WRE ), Ministry of Works
5.
ferenot
ure), New Delhi with re
Ministry of Finan ce (De ptt. of Sxpen dit
6
æ.0No.193-WiP/84, dated 24-3-1984.
to theír
7, PS to Ru/A.

8, P3 to Se cretary,
Works and Hous ing.
ies in the Ministry of
9. PS. to.Joint Sacretar
Officers/Sect ions in the Ministry.
10. Al1 officers/Desk
New. elhi (Shastri Bha wan) .
Ministry of W8H,
11. In formation 0fficer,
nder the Min, of H&H,
A11 atta ched.and Subor dinate. 0ffices
12.
with
JCA, Deptt. of Personnel
& A R., New Delhi (
13. Under Secretary,
copies ior ienbers of
JCM Nationa 1 Council,
50
copies). .
14. Sanction file ( 10
copies)
15. Spare copies folder (50

(PHOOL SINGI)
Un der Secretary a!II)o

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 e pra

(3 ro l osure to 'nistry of iWor ks usrg's

Ta, -17C15/6/85-H.III dated ).

Rev i se d Para VTI of this estry's Coof

even ru uber date d 7.4.1984.

VII. HOUSE BJI LD ING.1DV ACE TO THE GOVERFL}NT

Capplicart for the Hokse Buld4 rg Adva rce, u nder

thesë Rules, shall nat be elig ble frr Such 4dva rcE,.? the
lly
E pp Iis rt, r h is/her wfe/ husba nd 9r 4' nTr sor/s râ v dua
Or jo* ntly ow rs a house *n the town/urbar agg loue ration in
wh c!i 2 TOuse s pr opTsed to be cTnstructe a/purc ha sed by
t he a on 1 ' a rt .

Pr ov ded ta t if the hDuse alrea dy so Dw red by the

eppl'cirt a s Le nt ored above *sa opar cë rary pr operty
beiong z to UF of which t he appl'c nt *s a Lg çber, or a
i joi rt Ir
ntere st eparty
togethern -wi
w' th
'ch peYsons
the appl'ca
otherrt than
es 4 Orsh«re
n adr iton to)
h's/hur wife/usbs rå or u'nor so/s, ther the appl ica rt
sha l). be elg1ble to HÍuse Bu :ld ' rg Advs rce rot excee d ' ng
60 per cert of the a LOu nt whch wou là Tterwise have been
nr ua 1ly adui gsible to hL frou t he Goverrue nt u rdsr thee
ru les, ior the construct orpurc hase of a nu se with the
advace fro. ths Gover nuent. For the purpose of th's..
rule, "house" will nc lude flat.

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 No.I/17011/3/36,/h,111
Government of India
Ministry of Urban Dvelopmcnt
New De lhi, datcd the 1 August,89.
OFFICE MEORANDUM
Subject -Non-Practising A1lowanc¹ for Ncdial Posts-Inclusion /n
Basic Pay for house building advance -Clarification regarding.
1. Quantum of house building advanco is being regulatcd on. the
basis of basic pay reckoped on the ate of issue of original house
building advance orders.
2. Government havc sincá decided that Non-pract ising allowance
sanctioned for medical posts may bc treatd as 'Basic Pay for purposes
of house building advance.
3. Hindi Version i l 1 follOw .

(S Bal akrishnan
Under Sccretary to the Govt. of India

TO
1. A1l Ministrics/Dcptts. of Govt. of India.
2. Union Territory Administration of Delhi, Chandigarh,
Lakshadwecp, Dadra & Nagar Haveli & Andaman & Nicobar Islands.

Copy forwarded ta:

Ministry of Finance, Deptt. o£ 3xpenditure with refcrence to o M.
No.F,162)-.II(A) /89 t. 3.7.89.
2. Dirgctor, JCA, Deptt. of Pcrsonne l & Training, New De lhi (with
L00 Çopiçs for mombers ofJÇM National Council) e

3. Sanction £ile(10 copis).

4. 8par: Copics(50 çopies).

(S Balakrishnan)
Under Secretary ta the Govt, of India

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 I-17015/2(2)/2024/H.III (e-9126778) \69.
Government of India
Ministry of Housing & Urban Affairs
(Housing-III-Section)
Nirman Bhawan, New Delhi
Dated: 27th March, 2025

OFFICE MEMORANDUM
Subject: - Rate of Interest on House Building Advance (HBA) for
Central Government Employees for FY 2025-26-reg.

In purSuance of Department of Economic Affairs, Ministry of Finance

OM No 5(2)-B(PD)/2025 dated 24.03.2025, the interest rate applicable
on House Building Advance sanctioned to Central Government
Employees for the financial year 2025-26 (from 1st April 2025 to
31st March 2026) will remain unchanged at 7.44% until further
orders.

2. This issues with the approval of Competent Authority.

(Manoj Kumar Jha)

Under Secretaryto the Govt. of India
Tel: 23061476
Email ID: manojk.jha @nic. in
To

Allthe Central Government Ministries/Departments

Copy for information to:

1. PS to Hon'ble Minister, Ministry of Finance, North Block, New Delhi.
2. PS to Hon'ble Minister, Ministry of Housing & Urban Affairs, Nirman
Bhawan, New Delhi.
3. PS to Hon'ble Minister of State, Ministry of Housing & Urban
Affairs, Nirman Bhawan, New Delhi.
4. SO (IT Cell) with a request to upload it in e-office and on
website of
Ministry of Housing & Urban Affairs.

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 Noi/17015/2ioialjuü
Goverrment of Idia
Ministry of Urb¡n Development
Ngv Delhi, dated the 3rd 3...ci

OFFIGE ENORADUM
subject+-Recovory of houso bui lding acvance fram those Cntral Goyt. employre z
who are absorbed in Contral Autonomous/statto bödos.

Advance,
Under the existing procedure for rec overy of House Bui lding
sanctioning authcrity
the rec ovory is rnacde.as per schedule fixed by the BA etc of the concern3
Keeping in vi ev the length of service, repeying capacity
Govt. employceo However, if the icance Central Govte cmployee ceaseg to be
retirement/superannuation, 0r
1n serrice îcr an reason other than nornal
in full, the entire outstading
If he/she Cies betore raravment of the adv ance payable/verable forthvi the
a mourit of advance and intore st thoreon becomes enployees who happen to
In comnp .iance with these provisions the Contral Govto have to refund the
bodies
be cosored pTmanently in autononous/statuçory
vihole outstanding amcunt of HBA in ona lump sum.

With a vìew to avoid hardshin to the employe es who are permanent 1yY
operation,
absorbed in Public cctor Undertakincs vhere pension sbheme is in
1t has been deciced as undri
(i}since on the date of absorption of a govt. servant in an autonc.us
budy tho Govte wili discharge its pensi onary liabili.ty by paying in
ore iunp sun, as a one tine payment, the pro-rata pension/ service
gratuity and DCRG for the sorvico rendered by the govto servant, the
anount of outstanci ng amount of HBA 2longwi th the interest sha l1 be
deducted out of the totl amount so ayable by the govi. to the
autonomous body"
(ii)Thercafter, if any balance is still outstand ing against the
eployee it will be recovered in insta lments by thd autonomous body
for which an undertaking vill be given by the concerned organisation/
body saying that it wi1l ensure the rec overy of balance of HBA
including interest thereon, in monthly insta lments from the employee
and remit it to the PAO responsible for vatching its recovesies.
These provi sions shall form part of all future orders sancti oning HR A.
Hindi vexsion is enc losed.

(s.Balakrishnan)
Under Secretary to the Govte of India

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 b.I/1701s/4/89/t,I1I
Government of Indi a
Minl stry of Urbàn Development
New Delhi,datei tha 23 Pebru¡ry;89.
OFICE MEMORA NDJh
Subjects-St ap-duty on Mortgage Deed and De ed of Reconvey ance executed by
Central Goverment eapl oyees under the schene of Pou se Building Advance
exGnption ofe
The undersi gred is dlrected to say that the existing po sition with
regard to payment .of stap-tuty by the Gartral Govermgnt employees on the
registration of Mortgage deed and Reconveyanze Deed relating to hau se bui lding
advance_ end 1t relnbursenent by the Goverment wgs indicated in this Minis tr's
QsMeNb.I/170 14/4/T8/H,III dto 31e5,73, 7.34,79, 304o79 and 25.5.79.
20 Arumber of.reference s are bei ng receíved in.this Ministry. enqyiring
whether the l0anee.Cettral Govertnent servants are exenpted fzon paym erit of
st amp d°ty ch¡ged,n the regi stration of the afore said documents relat ing to
hou se buil ding &dvanceas.the pos tion.irdic ated in the 0ffíce Kemoranda re ferred
to above has undrrsone: change, in some States. Since sta u t y is a State
subject,the:Centtal Govertm gnt., employees are to be goveined by the rules
fomuleted by: the .concerned State Govt s inthis tegard Lt ls therefore,
clari fiedthat thà stp. uty on the afore said. documentss herevet charged;. has to;
be born by, thÇ, loanee Govt servants &reinbursemenit eo f is not scm 6sib1 e:
3 Mintst of Agacylture. ec. are. reque sted to bring the contents of this
O.Ne to the notice of ali çoncerned.

(SeBalakii shnan).
Under Secretary tó the Govte of India
To
1A11: M/iistibs/Deptt (s per
2.&A Ge 6F Inda New Dalhi. 11st attached)
3.uníon Teztitcris of Ariman & Nicobar Islands, Chandigarh, Dadra &
Haveli &1akehadeep &Diu Nagar
CopyfópsAntomation tos
Mlntétry ot nse(Budget Divitgion).Now Delhi.
ñistry of Finace(Plan Hnance), New Delhi.
PE tß Soórstárs(F).
inancsThvi sion(H&E)gt itjn, Ministryof Urb¡n,
US(AGn), MËni stry of Urb¡n Development, New Delhi. 'evelopment.
Délhi. Adnihi gtration, Delhi.
pure Copls(50 copie s).
(5Baläklshna
Under Sectet ary to.the Govt.
ofni

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 I-17011/11(4)/2016-H.I
Government of India
Ministry of Housing &Urban Affairs
Housing-| Section
Nirman Bhawan, New Delhi,
Dated:31.01.2018.

OFFICE MEMORANDUM
commission
advances/ Seventh Central Pay
Subject: Interest bearing government employees who have
recommendation on migration of existing
Banks/ other Financial Institutions - reg.
already taken Home Loans from
No. I
2(vii) of this Ministry's O.M.
Kind attention is invited to para
17011/11(4)/2016-H.|l dated 09.11.2017 on the
above mentioned subject regarding
conditions are clarified as follows.
fulfilment of extant conditions, the extant
Depatment;
Building Advance, the Head of the
a) Before granting such House
loans were taken by the government
i. Should satisfy himself that the home house/
construction/ purchase of new
employee entirely for purpose of
flat.
limited to
Building Advance sanctioned is
Should ensure that the House govermment employee.
the amount of loan still due to be repaid
by the
loan
availed towards repayment of bank
b) House Building Advance can be flat.
construction/ purchase of new house/
taken for the purpose of
House Building Advance on the date
Employee shallbe eligible for grant of institutions,
banks and other financial
hel she obtained loans from Building Advance before
irespective of whether they applied for House
raising the loan.
repayment of loans shall be granted
to the
House Building Advance for
However, the Government employee
eligible employees in one lump sum. date
Certificate within one month from the
shall produce the HBA Utilization
of release of HBA.
Employee has to satisfy the other provisions
of the House Building Advance
e)
Rules -2017.

(Shailendra Vikram `ingh)

DirectorIFD)
Tel:011-23062798

To,
All the Ministries and Departmentsof the Government of India, C&AG and
endorsement llst.
UPSC, etc. as per standard

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Copy íor information to,
1. PSto Mos(Wc), H&UA
2. PSO to Secretary
3. PPS to JS&FA
4. Budget Division
5. US (Admn.), MoHUA
6. IT- Cel for uploading in Ministry website
7. Hindi Section for Hindi version.

(Rajeév kumar)
Under Secretary (FD-)

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 No.I/1701/3/36/H. III
Goverment of Indi a
Mini stry of Urban Dgvel opment
New Delhi, dated the 17th hpril,1:

Subject-Grant of House Building Advance to enable rena ynen

of loans.
stry's orders
The under si gnd is direct ed to,say th¡t thi s Mini
February, 1972
contai ned in 0.A-Nb.I/17015/8/71/HIII dat ed the 14thayne í of loans for
pemitted sanctlon of Hou se Builing Advance for rep
withdrawn vi de this
construction of hou_eSe Thi s facility was, hoever,
Mini stry's 0oNo.I/17011/3/86/H,III dated 15th February, 1983.
funds placed at ihe
2. It has been repre sent ed that vith linited
di sposal of various Mini st ri es/Dep artnent s, it is not posssible for the se
to all prlicants and the
Dep rtment_ to sancti on Hou ge Buil i ng Advance ingtitutions
employees hgve perforce to rai se finance throuch various fingncial
intoreste W::4:3wal of the facility
and other agancias at higher tates of lon has thus resulted
of getting hou se builing avarce for rep aynent T
in h¡rdship to Governmert enloyaes.
Goverment
3 Theca rpresent ations have be en care fully consi dered.
amo unt of hou se
se the
have now docdei tht Govermert servants Can utili loans taken from non
building advsnc foT purTo se3 c zepayne nt of other The concession wil1
Govere nt source t.o build a hou52 0r aC ui re a flet
comencede
be alailabla even where the contruction has
Denartmen ti
4. Bafore granti ng suçh hou se buil di ng advance the Head of
(i)should satisfy himsel f that the other loans wero taken by the
Goverment servant entirsly for the purpose of construcio/
purchase of hou e/fl at;
(41) should en sure that the hou se buil i ng advance sanctioned is
1imited to the anount of lo¡n stil1 due to be reo gid by the
Govermsnt servant.

Since the Al1 I ndia Services and CCS(Ccondust) Rulys provi de for declaration
thereof, the Hoads
of sourCes of finance for such pup0se, with full details
se declatations in thi s matter.
of Departmant can consult the
5 The Governnent servant has to satisfy the ot her prOvi i cn of tho
hou se buil di n advance rules.
s
6 In so. far as the persons gervi ng in the Indian Auit ond Account
on with the
Dep arnent s are concern.d, the se ordors issue in consult ati
Gompt roller & Au tor Genoral of Ini ce
7. Ths0.Mo is in supersessi on of the O.M" of cvcn nunber dat.ed
15th Fbruary, 1988 on tho subjncte
8 i n i version is vnclocece

(s.D,lakri ghn¡n
Under Socrtory to the Govte of Indi a
40
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 -2

To Coverment of Inci,e
Minist ries/Deptt s. of
l" A1l
st.ration of Delhi, Ghendi garh, Lk sh¡cw.eD,
2. Union Terrd tory Acnini Andaman & licoba I sl2nds.
D¡dra & N¡gar Haveli
&

Copy fo rw rded to
refurenc o UCe
This is with
& Åudi tor Ganeral of Incia
Canptroller Vol.II KW dt. 27.3.8).
No.235 Audit/2to35
Traini ng, ew Delhi
S.K.Parthasarathy, JS(JC1),
Deptt. of Personnel &
2" Shi ture,
Nini st ry o f Fnance, Deptto of Ex ni
),
3 Shri BePVema JS(Pers
New D-lhi.
New Delhi.
Di vi sion (#&E), ini stry of Urb¡n DÍvclopmnt,
4. Finance
with reference
Fingn e(Dott. f
o Epandi ture), Ngw Delhi
5 Mini stry of dt. 15.6.87.
to U0.No. F. 19 (3)-E,II(A)/87
Urban
ary/Al1 Joint Secrotaries in the Mini sry of
6. PS to M/DM/Sacret
Dovelopm nt.
0fficers/Desk Officers/Sctions in tho Hini stry.
7. Al1
of Urban Dvàlopment; Ner Delhi.
88. Infomation 0fficer, Mini stry
Developmt
under the Mini stry of Uban
9 All atit ached & Subordinate 0ffices
Traini ng, New De lhi(vith
100
Personnel &
10. Dirgctor, JCA Deptte, of National Council).
JM
copies for members of

1l" Sanction filo (10 copies).

pare Copi as (50 copi es).

12.
talakail
(S-Balakri shnan)
Govt. of Ini
Under Secretary to the

41
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 -NaI0173/96 A,III
Gov2rnmen t of India
Minis t.ry of Urban Developnent
Ne: Delhi dated tho 7th Set $0
OPFI E MEKGRNOIA
to er.able Nçayncni of
Subjegt-Grent of House Bu:ld:lng Avance

for repayme:
mhe fabi)1ty of grnt: oT hoise buIlaian advnce
at wäS ext I:0E.E jn 0. M. c
ncL9e;E
cOisÝruc t i c c g u t s i t i o n c² this Kinistryls
ev2 N. d a t e 7 , 4 , i ) , Iwa3 lsO LIimated
Sector niertikings/
0, evon Ge atod 18,3.90 chat Pblic Euscst1 by he
Autoncnous 3 i e s ard other Recistertdi SLcieties
yCurces f : : the p:poe ci
!ovt. shculi£ be: tontad as nonegvt. Jatd 17,1.89,
sUNtioning houge buliding advance in temg p£ C,i,
ragard fxon Varisus
Soveral relerences have ben rcGei.ved in this The
riinistrics/eptts, seolig clarifica*lon on certain pointe.
pointsfdouibts raisod are clarified as under:

points/Daubt reised Clarifigatian.

(1) whether the goyt, servent should Yes
Do eligible for the grant of hcuse
hutliing àdyance on the ate he
chtainGA loans fron nun-govt, 3Mcese
(11)whethor the hause builaing 'L1) House 9lding nrlvance :
edvANce for rsayent of loan8 £or ropayneat.a£ .t3Ns i8
raised fron ncngoVt, source is C:dmissibia only t t:hDSe t

aimisuile to all the govt, servnts GOvte Servnu ho efoe

irrespective of hether they applied raisiRg the loa! raa nn
tor bouse building a vanc¹ cr not govt, sour3as apisd for
befarA iaising ithe loan. house buil:ilug avanne å t
Could not be sang timed
e dua o paucity
(i1L) uhether house building
Avance wil amiszible in a
case where a govt. BerTant hd ralsed
loan from a £inancial ngritutin by
croation of first charg of mcrtgage
und the said firancial instituti n
anes not allow the govt. servan: to
GLeate first charçe of mOrtgaga to
Che 2osidsnt' ¢£ TnaiA.
(iv) whother house builaing advarce
for repaynert of loens shai2 3: made (1v)Aause Builaing Adyance
in one iunp-SUn cr in instanen ts in such cas¢t slhcula be
<nd whether iti should te paid t the 9aið to the govt, ServNt
individual or to the finana:al HMEver,
Jrs tituticn. the covt.. sAvart may be
2cked to proUCe tho
11t1li3atin ccrtificate
Wihin cne month frcn the
date of rlease c iove
buii3ing advaze.

42
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 (v) - 2
whe ther ttue
are to take govt,
Ialsing prior pe servants (v) The Govt,
lÍans -£rm
SOuroc for mission or satis£y the servant (s) has to
non-govt
purpoSes. house building ules appiicprovisions
able to hin,of Corà°ct
(vi)
advancowhe
is
ther tha house
rep?y!G3nt ofadmissle forbui.lding
lcens where the
(vi) Yes.
he dGytt. HovevALE
cONetntlGn
been CC0ple c* ue hac t:ha tlhe loan
the Head of
has to satisty,
servt hos
e ar. thelreaiy wej rai.seA frOm ncth-qovt.itsel£
divinG lrea:y
ein,. govt, entirely fr tie Sc.
statcd ÜpCsO o prchasa a
purchase
of a house
o land afr
house/lat
(vi1) hat, sort oi construct
shorla bo prio¹ity
cases of attributd.tco
.graut of tho (vii)Such
Cammitted casos uy bo : treated
Llabilitios
edvmce£or rnaynent house building
-of loaris.
às
2:
HinAiyesicn ill £oll ats
To (s.Bal akrishian)"
Under Seorstary to the ovt "of
A12 'India
2Uniyn Ministribg/Deptt8. of Govt.
Torritorfas of Delni, ADdanan India.
of
and Nagar Hiveli, Lakshadye c and & Nicobar slands,
306ice of the 'c &A,G., New Dman & Diu. chanzigarh, Daa
54.Supreme Court of India, plhi.
Copy tot
1; Secretary, Stelf
ae:j Dulhi. Side, Naticnal Council
2,JA Divisica, Deptt, :f (JCM), 13-C, rerozshah
31S (:cl.), Minisiy or_oncl Road
&
cf Urbar D<velocn Zraining, New Delhi.
ent,: N Dulhi.

(S9r1 kriandn)
Under Seçretary ;o the Govt, o
India

43
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 NO.I/1 7015/2/85-H.III
GOVeriMentof India
pevelopment
Ministry of Urban

ootoberi1991
.NeW Del hi, the lst
OFFICE MENORANDUM

Scheme oE HOusing
subjcct;Financing of OWnership Housing
funds of the Group
Agencios eto. by HUDCO out of
buílding advance
Insurance SchimeGrant of house under
raised £rom HUDCO
£or, repayment of the loan
these 'schemes.

cven nunber dated.

Undor this Ministry ' s 0. M, of of the loan
avail.
20-5-85,. Central Govt, Employeos whoHousing Boards eto.) nder
(through Development Authori ties, Housing & Urban Development
the oWnership Housing scheme of
grant.of house building
Çorporation aro not eligible £or
advance HBA). This Ministry hüs
been ceceiving represen ta
that the government
tions from various Departments urgingthe said "Ownership
employees who are -beneficiaries of
Housing scheme of HUDCO sboul also be made eligible £or
âvance in'ord¹r. to cnable them to repay the
house building
loin taken nder thà said scheme
consultation with
.2. The matter has ben consilered in docided that house
the Ministry of Pinance and it. has beer
building áâvarce,. would' be ad tissiblo to the govemnent,
raised bY themndçs the
employees for repaynent of tho lo£nscheme!
above "0wnership Housing of HUDco for
mentioned truction of houses/£lats through
dOquiiton/cons the, evelopmen t
Authorities, Housing Boards e to. However, 'as proscritod in
this-Ministrys 0M. No,I/17011/3/86-H.III dated 17,489 and
7.9,90, before sanctioning house building advance to the
employees fo repayment of this loan, Ministrics/Dopartenttsi
shoula ènsure that.thoy wero eligible £or house builaing
advance on tha ato the Developnont Authoritics/HOUS0ngBoards/
co-operátive sooiotie[ eto, haa' raiscd the loan for them fron
HUDCO ausd they hal rcquss tca the Development Authorities,
Housing Bourds,eta for arrenging the loan Eor them only after
thÍy hd oppliea Eor house builiing advnce and the sumo was
not sanctioned to them due to paucity of funds. 'othor provi
sions of house builáing advence rles should aiso be satisfied,
3. A1l Ministries/Dapartments are reques ted to bring
the con tents of this 0,ie to the notice of 217 the gove ment
employces woking under,them.
2/

44
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 -2

Hindi version will follow.

slgalakrishnarr
Ul1Jur SHcretury to tlo,gbv t. ot Indlu,
TO
1. All Ministries/Departncnts of Govt, of: ndia
2. U.T. . of Dclhi,Andman & Nicobur Islands, chandigarh,
Dadra & Nagar Haveli, Lakhs adweep &Daman and piue:
3 offiçe of the comptroller and Auditor General of .ndia,
New Delhi,

4. Suprene court of Indla,

Copy to:
1, secretary staf£ Side, Naticnal council (JCM) 13-C
Ferozshah ROad, New Delhi.
2. JCA Division, pEptt. of persounel and Ttaining; NeW Delhi,
3, US (Adn) Min, of Urban Deteloprnon t, New Delhi, :
4. Housing-IISuçtion, Min, of Urban Dèvelopment;NCr DElhi.
5. Pile NO.I/17011/3/86-.III
'64 Deptt of Expondi ture-(E.II (A) scctíon). wa, t. their
D.M.No.F,19 (4) -EII A)-91, dated 13-9-91."

6
(s.Balakrishna
Under Secretary to the Govt, of Tndia.

45
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 No. I/17o1 y3/o&/H.III
Go vernn:nt of Lndi a
Ministry of Urban Developngrt
Nev Del hi, dat ed the 27h May92.
OFF CE NBIORANDUM
Subjecti-Clari fication regari ng grant of house buil i ng advance to
rep ament of loan. en¡ble

T he façility of grant of hou se buil di ig adv¡nce foT

rai sed fom nbn Govt, souTCes for the puspo Ten ayment of.lo ape
8e of construction/acqui
hou se/ flat was extendg dvi do this Mi ni st ry s OMe of stion of-a
even Nb.
Subsequently cerain cleriflcations were i ssued vi de Ooe of even o. t. 17,4.89,
79.90 to remove doû ts in this regard. In point(1) of dt
1* Was clari fi ed that for avai li ng" the fac1ity {he O dt 7930
rep ayne nt of loans rai sed from non-govt. sourcesothef holu se builing cyCo for
been eligible for grant of house buil di ng adv-gnce on govt. employ. should have
loans from non-Covte sourcese In point(ii) of he saidthe.date hg obtained
O:2 t n¡s clard fied
that hou se builing. advance for røpayment of loans is admi ssi ble
Covt. servants who be fore rd si ng the loan from non Govte only to thO se
sUrces
house building advance but: the samy could not b% Fanctiond due to applled for
fundsi pgUcity of
2. The Govt. have receivad a number of raptesamtrttong in this regird
The matter has ince been reconsi dered and it has ban dccË.ded in
corigultatiop
vth the Mini stry of Finance thet tha clard flcationil)8(11) coumuní ct ed vi de
ths Ani stry's O«Mi of ven ib. dt. 7.9.90 vål) be effective from 9.9a
36 Tbasse povi dons are al so Xtendato the repaynent of loans zai sed
under the Onnership Hougi ng Schem uf HUD0.
46 This kinistry's O.M. dt. 7.9.9 snd lo 1091 stand mod fled to the
ex tert sated abov3.

In far as : : psong soVÍ ng in th: I ni an Auat and counts Dertt.

are concorned these cigrs issu 1n congultation with C&a. of indas
6 indi vesion váli followe

(s Bolakydshnan)
Under Secret ary to the Govt. of indi
Telplb301869;
loA11 M nd strios/Deptt ee of Govte of Indi ae

46
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 No. 10//68-HIII(Pt)
Governnent of Ind ia
Ministry of W
ork s, Housing & Supply
(wepar tment of Work s & iou sing)
New Delhi, dated the/ti, Oc t.,1968.
Subjecti- Hause Duild ing 4àvance kules - Rec onveyance
of prop er ties aîter the advance, with interest,
ha s been recovered.

The uider signed 1s dw ected to invite an attention

to iule 8(a) of the Hou se Duiling tdvance tules waich pres
cr ibes that after the advanc e, together with interest due
ther eon, has been fully recovered, the proper ty nortgaged as
Secur ity for the advance, should be reconveyed to the Central
Governent Ser va nt in Forn No.7 appende to the Brochure on
the Rules. & question has been raised whether this neconvey
ance Deed shou ld be tegigter ed and 1f So, who shou ld bear the
expenses. Further, whether the nortgage Deed and Sa le Deed
ete. deposited by the loanee with his head of Departan ent sh ou là
be returned to him after the teconveya nc e Deed ha s peen executed
and whether any formal receipt thereof should be taken.
The ma tter has veen consiâered in c onsul ta tion vith
the Ministry of Law and 1t has been decided tna t
1) the ieconveya nce Deed shou ld be execu ted by the
Head of Departai 9nt whogenerally accepts the mor tgage
Deed on behalf of the Pres1dent;
2) the Rec onveyance Deed sho:là be got r eg 1stered as
degistration ls caapulsory under section 17(1)(c)
of the Registration Hct, 1908,
3) after the deconveya nca Deed has been executed and
registered, the mortgage deed, che sale Deed and
such other docuaelts deposited by the loanee shoula
be retu rned to nin end a rece-pt cher ef or sh ou ld be
taken and kept on record -lo.gu-ch a copy of the
dec onveya nce Deed.
4) the expenses in connection with the execution/
registration Of tue iec onveyance Deed shall have to
be borne by the oanee unlass the execution/
registration of such deeds by the Central Gover nnent
is exenpt.

(ia. Sriníva san)

Under Secretary to the Govt. of Ind ia,
To
l. &l1 Ministries of the Govt. .of Ing ía with 10
spare cop ies each.
2. Jpare copies 47
30C.
:_: www.staffnews.in :_:
AP/8.10.68
 2
S. No

Governnent of India,
Ministry cf Werks, Hous ing & Supply.

No, H,II-27(5)/54. New Delhi, the 12th April, 1956,

OFF ICE M0RANDUM.

Sub:- Revival of icuge-building_ádvances.

The undersigned is directed to ref er to 0ffice

Memcrandurn No. H, II-3(5)/54-Vc1. II, dated the 23rd
Nevenber, 1954, frcn this Ministry, inforning all
the Minis tries ctc, cf the Gcvernment cf Ind ia that
the terns cf assistarce, fcrm cf applicaticn etc, in
ccnnecticn with the 2rant cf loans to Central GCvern
ment servants under the Lrw Inccne Grcup Hous ing
Scheme, were being worked cut and that they wil1 be cam
-nunicated ta 2l1 ccncerned in due ccurse, It has
since been decided, instead, to revive the Hcuse-build
ing advances (which vere discCntinued in l937) fcr
the ben -fit of Central Gcvernment 'Servants.
Five
ccpies cf the Rules framed fcr regulat ing the grant cf
these advences and f the prcfcrma fer the submis sicn cf
applicaticns and th rnnccted specif icaticns end
estinates, arecenclCs , 2iiticnal copies, if
required, il1 be suppli. by this Ministry cn derit.:1,

2. 0 ther fcrms reguir cd in crnnecticn withthe Rules

(such as $urety Bond, ¢greern ent, Mcrtgage Deed, etc.)

are being drawn up and will be circulated to all
ccncerntd in due ccurse, The questicn as to whether
such cf the Central Gevernnent eploy ees: as are
not
eligible for the grant cf an advance under the abcve
Rules, shculd be alkewed te [vail cf.financial ss is..
tance frcm their respective State Gcvernments und er
48
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 -2

Scheme (subject to their

the Lcw Income Gro up H^using
Scheme), 1s also under
being eligible for aid und er that
ccnsideratirn separatoly.

pres
3, Rule 9 indicates the prcc edure that has been

cribed fcr deal ing with applicaticns which may be submitted

these
by thcse cligible fcr the grant cf advances under
Rules, $ ince, the funds for the grant of these advances are

limited, it has been decided that fcr the pres ent, appli
Cations frcrn cnly such Central Gcvernment servants shculd

be entertained as are permanent and in additicn, happen t.

be in pcsses sicn of a pltt of land cn which, ccns tructicn
Can ccmnence inmediat ely n receipt cf the advanc e applied
for, This restricticn will be relaxed as sron as circum
stances permit

4, The Minis tri es ef Hcne Affairs, ete, are requested tc

furnish a list cf the Heads cf Departments under them whc
will be sancticning these advances, to this Ministry with
the leastpcssible delay. The Heads cf Depar tments may also
be edvised that until printed f ^rms are made available,
applicetions may be submitted in the prescrib 6d prof crma
typewritten cn cne sidecf the paper cnly, and that all
cerrespcndence cn the subject with this Ministry shculd be
carried out thrcugh self cntained cfficial communicaticns
cnly.
5, The CcIiptrc1ler and Auditcr G eneral of India
has
ccncurred in the abcve Rules bcing mede applicanle to
the
emplcyees cf the Indian Audit Dpartment,

(1,N,Srivastava)
Under S écret ary tc the Gcvernment cf India .
To
A11 the Ministries cf the Gevernment cf India,
Fue C!
49
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lak.
P.T.0,
 -3

Gcpy fcrwarded to
India.
l, The Ccmptr:ller end Auditcr General cf

2, Supreme Curt,

3, U,P.S.C.
4, Cab in et Secretariat.
5, Planning Ccnissicn,
6, Department of Parliamentary Affairs,
7, Lck Sabha S ecret ariat4
8, Rajya Sanha Secretariat.
9, Prime Ministerls S cretariat.
l0, Partiticn Secretariat.
11, Military Secretsry tr the President.
l2. Electicn Ccmnissicn cf India,
13, Ccraunity Prcjucts Ldministraticn.
l4, Pr Cgramne Evaluati:n 0rganisaticn.
l3. Department cf itcmiq Energy.

(T.N.Srivastava)
Under Secretary te the Gevernment cf India,

C,epy alsc fcrwarded to -

TBospatche W d. A11 Attached and Subcrdin[te 0ffices directly
under the Ministry cf WHAS,
2. All officers and Secticns in the Ministry cf
Werks, Hous ing &Supply.

(T,N.Srivastava)
Und er S ecretary tc the Government cf India,

Ptsenee (orka Diviaie) wath retersde te their .G, B0,

avit autorities soneerned,

50
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 GOVERNMGNT OF INDIA

MINISTEY OF VORKS, HOUSING

AND STTPPLY

grant of a dvances to
Rules to regulate the
Central Government servants for huilding
etc. of houses.

1. Eligibility :
granted to the follow
House building advance may be
servants -
ing categories of Central Government
servants.
(a) Permanent Central Government
falling in
(b) Central Government servants not
Category (a) above who ha ve rendered at least

10 years! contÉnuous service, provi ded

(i) they do not hold a permanent appointment

under a State Government; and

(ii) the sanctioning authori ty is satisfied

that they are likely to continne in the
service of the Central Government at least
till the house for which the advance is

sanctioned, is built and/or mortgaged to

Government.

Noté (i):- The term "Central Government servant" as 1sed

in these Rules does not cover employees of Part
ICI States.
Note(ii):- In cases where both the husband and wife ha ppen
to be Cen tral Government servants and eligible
for the grant of advance, it shall be admi ssible
to only one of them,

2, Condi tions 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 acqisition of a house in the past from any
Government source (e.g", Ministry of Rehab1li ta
ti on, or a Central or State Housing scheme), or
drawn an advance or ma de a fina1 withdrawal from

his Provi dent Fund in connection wi th the

51
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 -:2:

acquisition of a house. Provided, however, whare

the loan or advance etc. alr ea dy ava iled of does

not exceed the amount a dmissible 1nder these rulés,
it would be open to the Goyernment servant concerned
to apply for an advance under these rles on
condi tion that he undertakes to repay the outstanding
loans, advances etc. together wi th interest (if any)
thereon7 forthwi th in one Lump Sm to the Mínistrias/
Departments concerned.
(b) Neither the applicant, nor the applicant's wife/
husbandminor child must he the owmer of a house.
However, thi s condition may he relaxed by Government
in exçeptional circmstances; for example, if the
appli cant or the appli cant's wife/hushand/minor chíld
owns a house in a village, and the applicant desires
to settle down in a town: or where an appli cant

happens to own a house jointly wi th other rela tions

etc. and he desires to hiuild a separate h011Se for his
bona fi de residential purpos es.
(c) The floor area of the house to he construeted or
purchasAd must not be less than 380 sq.ft.
3. Purp0ses for vhi ch advance may be granted: -
An advance may be granted for
(a) cons tructing a new house (inclnåing acq1ui si tion of
a siuitable plot of land for the piurpose), either at
the place of duty or at the place where th Govern
ment srvant propos es to settle after retirement.
Applications for advance for purcha sing a rea dy
.built house, or for raaVnnt of any outs tanding
amounts on account of loans exprassly taken for the
pur pose aforesaid befora the date of receipt of the
application for advance, may also he considered,
52
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Contd,..
 -:3:

existing house
(b) .enlarging living accommodation in an
oWned by the Governm ent servant concerned, provided
the total-cost of the propos ed a dditions and
extensions does not excsed Es. 10,000/-.
4, Amount of advance:
(a) Not more than one advance shall be sanction ed under
these Rules to a Government servant during his
entire service,

(b) Applicants may be granted an advance not exceeding

24 months! pay (including Dearness pay where a dmissi
ble) sub ject to a maximum of Ps, 25, 000 in cases
covered by rule 3(a) above and Ps. 10, 000 in cases
falling under rule 3(b) above. The actual amount of
a dvance to be sanctioned wil1 be determined by the
Ministry of Works, Housing and Supply on the basis
of plans and detailed specifica ti ons and estima tes
to be furnished by applicants justifying the amount
of advance appli ed for, and sha ll in no case exceed
the estimated cost of constructi on/purchase/
redemption wi thin the ceilings prescribed above.
5, Disbursement and Security :
(a) (1) Advance required -partly for pur cha se of land and
partly forconstr1c ting a naw house or enlarging
living accommodati on in an existing house shall
be paid as follows: -

(i) An amount not exceeding 20% of the sanctioned

advance will be pavable to the applicant for
purchasing a plot of land on his executing an
agreemnt in the prescribed form for the re
payment of the advance. In all cases in whi ch
part of the advance is given for the purchase
of land, the land must be purcha sed and the

sale-deed in resprct thereof produced for the

inspection of the Hoad of the Department
concern ed wi thin two nonths of th date on

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Contd,..
 -;4;
whi ch the above areunt of 20% is drawn, failing
whi ch the appli cant shall be liable to refund
at once the entire anont to Government
together with interest thereon,
(11) An amount egual to 30% of the balance of the
a dvance will be payable to the applicant on
his mortgaging in favour of the Governmnt
the land purcha s ed by him along with the
house to be built thereon here such mortgage
is permitted bv tho .tarms of the sale of land,
In cases where the torms of sale do not vest

title in the purcha sor till a house is erected

on the land, the appli cant shall execute an
agreement with the Gove rnmont in the pres cribed
form agreaing to mortgage the land together
with the ho11se tc be built thereon, as sOon

as the house has hoon built and the ti tle to

the property is compl ate.
(1ii)An amount equal to 40% of the,amount rema ining
after deductin: from thn sanctioned amount of

the advance, the instalment given for the

purcha se of land, will be payable when the

construction of tae house reaches plinth l-vel.
(iv) The balance of the sanc tioned advance will be
payable when th constrction of the house has
rea ched roof level, provided the Head of
Department is satisfied tha t the develo pment
of the area in which the house'is built is
complete in respect of amenitis such as

water supply, strost lighting, roa ds, draina ge

and sewerage
(2) Advance required only 0" constructing a new house
Or enlarging living aceormo de ti on in an existing
house shall be paid as tollws :
(i) An amont equal to 30% of th sancti oned
54
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 -:5: -

advance will be pavahle to the applicant on

his mortgaging in favour of the Governmen t

the land purchased by him along with the
house to be built thoroon 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 til1 a ho1se

!

is erected on the land the appli cant shall

execute an agrrenent wi th the Government
in the prescribed fo rm agreeing to mortgage
the land-together wi th the-house to be built
thereon, as soon as the house ha s been built
and the title to the property is complete.
(ii) A further amount not exceeding 40% of the
sanctioned advance will be payable when the
house has reached plinth level.
(111) The remaining 30 cf the sanctioned avance will
be payable when the house has reached roof
level, provided thc Haad of Department is
satisfied that tho development -of the area
in which the house is built is
complete in
respect of amenities such as water
supply,
street lighting, roa ds, drainage and
sewerage.
(3) Advance required either for purcha
built house or for repaying a loan sing a ready
appli cant for constructing or purchataken by the
shall be paid as follOwS : sing a house

The Head of Departnent may

sanction paym ent of
the entire amount required by, and
a dmissible to
the applicant in one lmp sum on
the appli cant's
executing an agreement im the pres cribed form
for
the repayment of the lan, The
acqiiisiti on of the
house must be completed, and the
ho1se mortgaged to
Government within 3 nonths of the drawal of the
advance, failing which thg advance together
wi th the
interest tharoon shall b ofunded to
Government
55
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 -:6; -

limit
oxtension of this time
th, unless an
forthwi
concerned.
Department

is granted bv the Head of

agreement/
executing the
addition to thoir
(b) In
sub-para (a) above,
mortgage referred
to in
thra categories of applicants
the following

reguired to furnish
the surety
shall also be
Government
Central
approved permanent
of an
form before the
servant in the pres cribed

sanctioned a dvance or
any part thereof is

actua1ly disbursed to
them :
are not permanen t
(1) all appli cants who
Central Government servants.

are due to retire from

(ii) all appli cants who
Service within a period of
18 months

cation for the

following the dato of appli
grant of an advance.

permanent Central
(iii) all applicants who are
Government servants biut not covered by

sub-para (ii) above if they require the

advance for purchase of a ready built

house or ropayment of earlier loan(s)

taken for cons tructing/ purchasing a house.

Note (i):- The liability of the surety will. continue till the
house built/pur cha sed/redemed is mortgaged to
Government or till the advance togethar with interest
due thereon is repaid to Government, whi chever
happens earlier,

Note (i1) ;- Utili sation of the advance fora purpose other than
that for which it is sanctioned shall render the
Government servnnt liable to disciplina ry acti on
under the C.C.& A. Rules, aprrt from his being called
upon to refund to Governmnt forthwi th the entire
advance draWn by him.
6. Interest:-
Advances granted under these rules shall carry simple
interest from the date of advance - the amont of interest being
calculated on the balances outstanding on the last dav of ea ch
month. The rate has been provisiona lly fixed at 4% per annum

and will be subject to revi ew.56

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7 Construction, maintenance ete. -

house or addi tions to living
(a) The construction of tho
accommoda tion in an existing house,
(as the case may

be) shall be
accordance wi th
(i) carried out eXA ctly in
cifications on
the approved plan and spe
the
the basis of which the amount of
sanctioned.
a dvance has been computed and
must not be
The plan and specifi ca ti ons
concurrenc
departed from without the prior

of the Ministry of Works, Housing and

The Government servant. shall
Supply.
certify, when applying for instalments
,of advance ami ssible at the plinth/roof
level, that construction is being carried
out strictly in accordance with the plan
and estimates furnished by him to the
Government of India, that the construc

ti on has actua lly reached plinth/roof

level, and that the amount already drawn
has actually been used on the construction

of the house. The Head of Department may,

1f neces sary, arrange to have inspection
carried out to verify the correctness of
the certifi cates.

(11) completed within l8 months of the a te on

which the first instalment of the a dvance
is paid to the Governm ent ervant conc^rned

Failure to do so will render the Governme:

Servant liable to refnd the entire amoint

advanced to him (together with interest

thereon calculatd as in rule 6 above),

in one lump sum. An extension of the

year
time 1imit may be allowed upto one
Cont o. o
57
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and for longer
by, the Head of Depa rtment,
poriod by Government, in those cases where

to circumstances
the wOrk is delayed due
beyond his c ontrol. The date of completion
Head of Department
must be reported to the
concerned wi thout delay.
purcha se of the houSe,
(b) Tmm ediately on completion or
be, the Government
or redemption as the case may
own
servant concerned sha l11 insure the house, at his
Compani es Associat
cost, wi th the Indian Insurance
the amount
ion Pool, Bombay. for a sum not less than

insured, against
of the advance and shal1 koep it so

ama ge by fire, flood or lightning, till the

a dvance is fully repaid to Government and deposit
the policy wi th Governm ent. The pr emia must be

paid regularly and the premi m, receipts produced

for inspection by the appropriate authority (Viz.
Hea d of 0ffice or Department concerned). The Head

of Department/Accounts officer will obtain from

the Government servant drawing the advance, a
letter to the Insurer with which the house is
insured, to notify to tho latter the fact that
Government is interested in the insirance policy
Secured, The Head of Department/Accounts 0fficor

will himself forward the letter to the Insurer

and ob tain his acknowl edgement. In the c¡se of

insurances effected on annual basis, this process

should be repeated every year until the advance has
been fully repaid to Government.
(c) The house must be maintained in good repair at hi3
own cost by the Government servant c on cerned. He

shall also keep i t free from all encumbrances, and

shall continue to pay all the Municipal and other

local.rates and taxes regularly until th9 advance has
58
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The Government
 -:9:
certificate
-servant sha1l furnish an annual
Department.
to this effect to the Head of

(a) After the complati on of the house, annual

authoris ed
inspection may be carried out bv any
officer under instructions from the Head of

Depar tment concerned, to ensure that it is

maintained in good repair until the advance

has been repaid in full, The Government

servant concerned shall afford full facility

for these inspections to the officer(s)

designa ted for the purpose.

Note : Furni shing of false certificates will render the Government
servant concerned liable to sui table dis ciplina ry action
apart from his being called upon to refund to Governmnt
forthwi th the entire advance drawn by him.
8, Repayment of the advance -
(a) The advance granted to a Government servant under
these rules, together wi th the interest th9reon
shall be repa id in full by monthly instalments
within a period not exceeding 20 y ears. First the
recovery of the advance shall be ma de in not more
than 180 monthly instalments, and then interest
shall be recovered in not more than 60 mon thly
instalments.

Note (1) : The amount to be recovered monthly shall be fixed

in whole rupees, except in the case of the last
instalment when the remaining ba lance including any
fraction of a rupee shall be recovered,

Note (ii);-Recovery of advance granted for constructing a new

house or enlarging 1iving accommoda tipn in an exi st
ing house. shall commence from the month following the
completion of the house or the l3th month after the
a te on whi ch the first instalmont of the advance is
paid to the Governmant sorvant, whi chever is earli er.
In the case of a dvances taken for purcha sing a ready
built house or for repnying earlihr loans (including
those from private partios) taken for pur chasing or
constructing a house; recoVAry shall commonce from
the pay of the mon th following that in whi ch the
a dvance is drawn.

Cont'd. ....

59
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servants to repay
open to Govrnment
Note (1ii):-It wi11 be shorter poriod if they
sO desire.
the amount in a advance must be repaid in
entire
In any case, the thnreon) before the da te on
full (wi th interest from Service.
rotire
whi ch they are d1e to
ha rdship to a Governmment
In order to avoid undueretire
Note (iv) : to within 20 years of the
servant who is due
grant of an advance,
date of application for the permit him to repay the
the Head of Departm ont may
convenient monthly instal
advance with interest in
sha1l not be less than
ments (the amount of whi ch
instalment on the basis of
the amount of monthly 20 years) during the
repayment within a period of provided he gives
remaining period of nis 3 en r o outstanding
an undertaking to repay th retircment by making a
balance before the da to of
Provident Fund in accordance
final withdra wal from his
Minístry of Finan ce 0ffice
with the provisions of the.. 25:l.55, and/or
Memoran dum No.F,37(1) -E,V/55, datedto deduct it from
authorises the disbursing oficer
gratuity that may be a dmi ssible
to hÉm.
any
does not repay the
In casSe the Government nrvant Govnrnment
Note (v): advance due to on or before
balance of the
the date of his retirement, it shall be open to
Government to nforce th: sccurity of the mortgage
at any tÉme therea ftar, and recover the balance of
tOgether with intarest and cost of
the advance due
recovery, by sale of the house or in such other manner
as may be prmissible nder the Law.

(b) Recovery of the advance _hall be effected

through the monthly pay/leave salary bills
of the Gov rnment servants c oncerned by the

Head of the 0ffice or the Accounts 0fficer

concerned, as the case may be. These

recoveries will not be held up or postponed

except with the prior corncurrence of
Governmnt.

(c) If a Government servant ceases to be in

sArvice for any rnason other than normal

retirement/superannuation, or if he/she
ies, before rep1ynent of the advance in
full, the entire outstanding amount of the

ndvance shal1 become payable to Government

forthwi th. Government may, however, in

deserving casas, permit the Government

servant concrned, or his successors in
interest as the case may be, or the siureties

60
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 -:1l:

if the house
in cases covered by rule 5 (b)
mortgaged to
has not been completed ana/or
Government by that, time, to repay the outstand

ing amount together with interest thereon

calculated as in rule 6 above, in sui table

instalments. Failure on the part of the

Government servant concerned or his successSors

(as the case may be) to repay the advance for

any rea son wha tsoever, will entitle the Govrn

ment of India to enforce the mortgage and take

such other action to effect recovery of the
outstanding amount as may be permissible.
(a) The property mortgaged to Government shall be
reconvey ed to the Governm ent servant concerned
(or his successors in interest as the case may
be), after the a dvance together with the interest
thereon has been repaid to Government in full.
2, Procedure for dealing wi th Applications 3
(a) Applications should be submitted by Government
servants to the Hea d of thair Departm ent in the
prescribed form (in uplicate) through proper channel.
The following docm en ts should accompany the
appli ca
tionS:

(1) a declaration in regard to house

property, if any,
own d by the appli cant or the applicant! s wife/
husband/minor children at. the time of application.
(1i) If the advance is required for enlarging
living
accommoda ti on in an existing house, Or for rapaying
earlier loans taken for constructing or pur chasing
a hous e, an attested copy of the sale deed as
well
as of other documents if any, establishing
that
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), authen tic evidence indi ca ting
61
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Cort
 -;12: -
the loan(s) in
the outstanding amount (s) of
question should also be furni shed.
happ en to be in
(iii)In cases where appli cants
land and desire to build
a new
possession of
sal deed or other
house on it, a copy of the

proof of the applicant ha ving clear title to

propos ed to be built,
land on which the house is
along with a site lan. If the land happens
copy of the lease
to be lease-hold, an attested
deed should also be anclosed.

the application
(b) The Heads of Departnrnts will scrutinise
facts
and satisfy themselves of the correctness of the
etc,, stated therein. They will also examine the
title deeds etc. furnished in compliance with sub
rules. (ii) and (iii) abova (in consulta ti on with

their Law 0fficers and the Revenue and Registration

authorities, if necessa ry) to make sure tha t the
applicant does, in fact, possess a clear title to the
property in questi on. After this has been done, the
Hea ds of Depar tm en ts will forward the applications to
the Ministry of Works, Housing and Supply al ong wi th
their recomrn enda t ions,

(c) The Ministry of Works, Housing and Supply will examine

the appli ca tions wi th rforence to the priorities etc.
if any, laid down for dealing with them. Subject to
funds being available, th applications wil1 be
returned to the Hea ds of Denartments concnrned
indi cating
(i) the amount of advance that may be sanctioned
by the Heads of Departments where it happens

to be required partly fo purcha sing a plot

of land for constructing a house (see also

sub-rules d(ii) and (e) below), or required

for repaying ea rlisr loan (s) taken for
constricting or urcha sing a house, or for
62 Contd e
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)
-:13:

purchasing a ready built house.

advance
(ii)the monetarv limit upto whi ch the grant of an
in other cases
could be considered, in due course,

(viz. for constructing a new house or for increasing

li ving accommoda tion in an existing house).

(d) On receipt of the approval ,of the Ministry of Works,

Housing and Supply

(1)formal sanction to the grant. of advance to applicants
Ln 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
author1 eB, where necessary), and then authori se
disburs em ent of an appropriate amont out of the
sanctioned advance to the applicant. Where land
or a ready built house is intended to be purchased

with the help of the advance, the Head of Depar tment

may, before authorising paym nt of the advance, also
require the Government servant concerned to certify
tha t negotiations for the purcha se ha ve rea ched
concluding stages, that the purcha se price is not
likely to be less than the amount of advance
sanctioned, and that he has satisfied himself. that
the transaction will enable him to acquire
indisput
able title to the land/hous e in questi on; in
such
cases the sale d9eds etc. should be examined
by
the Head of Department carefully (in
consultation
with legal and other authorities where
necessa ry) to
ensure that the Government Servant
concerned has
actual1ly acquired indisputable title to the
property
in question. It should also be verified that the
market value of the land/hous e purcha s ed is not
less
than the advance Sancti oned,
Cor td,...
63
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(11) the Hea ds of Departments sha 1l instruct

applicants desirous of constructing a new
house or enlarging living accommoda ti on in an
existing hous e, to furnish two copi es of plans,
as wel1 as specifications and estimates in
the prescribed proforma. The plans must be

got duly aprroved by the Municipality or

other local body concerned before submitting
them to Govornment.

(e) The plans, speeifications and esti mates referred

to ia sub-rule (a) (1i) above should be reforred
to the Ministry of Works, Housing and Supply wi th
reference to the earlier correspondence on the
sub ject. The Ministry of Works, Housing and
Supply 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
recomm en da ti ons of the Ministry of Works, Housing
and Supply, the Haad of Department wi1l
accord
forma 1 sanction to the grant of the
advance, or,
if necessary, amand the nriginnl
sanctions issued
in cases where the advance is
required partly for
purchasing a plot of land (see sub-rules (c) (i)
and (d) (i) above). The Hea d of Departn ent shall
also attend to all formalities as
explained in
sub-rule (d) (1) above, and then authorise
di sburs ement of the first
instalment of advance for
construction purposes to the applicant. The
payment of remaining twO instalments of
advance
may be authorised by the Heads of
Departments
direct on the basis of certifi ca tes
to be
furnished by the appli cants as prescribed in
rule 7(a) and such inspections as may be
deemed
Contd.
64
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 -:l5:

verifi ed, before

necessary. It should also be
instalment of the advance, that
i sbursing the last
has been completed
the development of the si te
(vi e rule 5(a) above).
ensure tha t the
(f) The Head of Department sha1] al3o
transaction/construction of the house is complet ed
that -
wi thin the period prescribed in the rules, and
(i) the prescribed mortgage deed is executed
immediately on completi on/redemption/pur chas e of
the house, and the docunent kept in safe custody
after registration.
(11) the house is insured in the manner indi cated in
rule 7(b) above, immediately on its purcha se/
completion/redemption, and that the pr emium
receipts are regularly produced for inspection.
(111) the house is ma intained in good repair and that
the necessary insurance parmia and Municipal
rates and taxes are paid regularly, and the
requi site certifi en te furnished rannually, until
the advance has baon repnid in full.
(iv) monthly recovery of instalments of repayment of
the advance commencos from the ue date and is
ma de regularly from the pay/leave salary bill of
the GOvernment servint concern ed thereaftor.
(v) in the case of Governm ent servants likely to rtiro
within 18 months of.the date of their appli caticn
for the advance (see rule 5(b) above), the amount
of their Provi dent Fund and gra tuity will be
adequate to cover th balance of the advance
outstanding agninst them just brforo the date
of their rtiremnt and thh t. in such
cases any
applications for advance/withdrawal from their
Provident Fund shs3cnt to the grant of house
building advances un i:r thoso rules, should not
65
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 -:l16:

entertained.
be ordina rily
gXpenditiure
(vi) any amount dra wn in excess of the
Government servant
incurred, is rofunded by the
forthwi th togethAr with
concern cd to Government

the interest, if any, due thereon.

Government is released
(vii) the property mortgaged. to
immediately on the repayment of
the advance and

the interest thereon in full.

Supply
(g) To enable the Ministry of Works, Housing and
to watch the disburs ement of funds and the progress

on the construction of hous es, ea ch Ministry of the

consolidated
Government of India will send them a

quarterly progress report (in respect of all. the

Departm ents and offices under it) by theend of

the month following the quarter to whi ch it relates,

in the prescribed proforma.

Bha tia RK
Ti.41956

66
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 (S-252)
GRANT OF ADVANCE FOR PURCHASE OF LAND OR PART/FULL CONSTRUCTION,
ENLARGEMENT, ETC.,OF AHOUSE

APPLICATION FORM
(To be filled by the applicant )
GENERAL

1. Name (in Block Letters)

2. Ministry/Ofice
3 Post beld
i) Permanent
i) Temporary
4. Length of Service on the date of applic ation
5. Present pay with pay scale
6. Whether governed by Pension Rules
7. Date of superanuation
8. Amount of Provident Fund/any other advance/inal withdrawal taken for purchase of land/
Construction (an attested copy of the sanction to be enclosed )

PARTICULARS RELATRING TO ADVANCE :

9. Ifadvance is needed for purchase of a plot and/or for construction of a new house, please give
the following information
A. PLOT

Location Rural/ Is it clearly Approximate a)Cost f not pur Unexpired

with address Urban demarcated area (n b)Amount chased portion of
and Sq. mtrs) actually when pro lease if Dot
developed paid posed to be freehold
acquired
2 6

...... 2

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 -2

B. CONSTRUCTION

Floor-wise area to be Estimated cost Amount of advance required No.of instalments for
constructed in (sq. mtrs.) (for land construction/both) repayment
9 10 1|

Gr. Floor

I Floor
I Foor

10. If advance is required for enlarging the existing house, please state :
Location Plinth Plinth Cost of Cost of Total Total Amount No.of
with area (in area pr0 construc- proposed plinth COst of insta
address sq.mtrs.) posed for tion/acq- Enlarge- area (4+5) advance ments for
enlarge uisition ment (2+3) required repay.
ment (in of ment
sq, mtrs) existing
House
2 3 6

(NOTE : If the enlargement s proposed on any floor other than ground floor, a certificate from an approved
Enginer to the effect that foundations of the existing structure can safely take the load of the pronsed
enlargement, should be enclosed.)

.../3

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 -3

I1. Ifadvance is required for purchasingarady-built house/flat, please state i

Location with Plinth When Price The agency Amount Amount No. of
constructed settled from whom a)Already of instalments
address arca
to be Paid advance for
(in sq4
mtrs.) purchased b)To be required repaynent
paid
1 2 3 5 6 8

MISCELLANEOUS

12. Ifyou or ay dependent member of your family already own(s) a house, please state >
Location with address Plinth arca (floor-wise) Present fair market value Reasons for acquiring
Rs. another house or
enlarging the existing
bouse

13. Have you cnclosed -a) the relevant construction plan

Approved by the Municipal authority concerned; and
b) dotailed construction estimates bascd on Contra/State
PWD Schedule, prevailing in the area corected as per
Relevant cost of index duly signed by qualified Engineer

.J4

69
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 -4

Declaration

various items indicated above is true to the

1. I solennly declare that the information furnished by me in reply to the
best of my knowledge and belief.
Government servants for purchase of land and
2. I have read the rules regulating the grant of advances to Centralterms and conditions stipulated therein.
Purchase/construction of buildings, etc., and agree to abide by the

3. I certifythat :
who is a Central Government servant,
i) my wife/husband is not a Central Goverment servanthny wife/husband
has not applied for and/or obtained an advance umder these nules;
any loan or advance for acquisitionof
i) neither Inor my wife/husband/minor childhas applied for andor obtained
Rehabilitation or under any Central or State
a house in the past from any Governnent source (e.g.,Ministry of
Housing Scheme);
iü yhe construction of the house for which the advance has been applied for, has not yet been commenced.

Station Signature of the Appicant

Dated Designaion
Emp. Code No.
Telepboneintercom No.

70
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 No.I/17:15/5/T:h. Ti2
Goverm Gnt of India
Ministry of Worko l: Houci ng
3.11,1973.
New DGlhi, datcd:
OFFICL MEMORANDUA
Ecntral Covto
Subjec t; Gran t of House Building Adyan co to
sOrvants - 0rder of priorities for

ding hdvan cos wre

Funds for sanctioning Hou se Buíl
Miristries/Departments in this Ministry' s
allo cate to variou s dated 18.5.78. Since asthen,
0ffi ce Memo. No.I/ 17015/50/77/H.III for additional funds
various Ministries have been asking
to be in-sufficiEnt to
"thc fun ds already allotted are statedfunds nave been given to
meet their ,requirGm6nt s. Additionalcase.to meet the pr6sslng
soiG Mini stries, as a very special available wi th this*
demands. The overall position of funds availa bility of some
Ministry is very tight and even, withthe this year, i t will
addi tional fun s in the Revi sGd Estimate for
additi onal funds only parti
be possi bl e to meet the demand for
ally.
se Building
In order to cn sure that expenditure on Hou Ministries
Advan ces is linit Gd to the allo cati ons made to the
caused to
and at the sam e time keepingin view the hardship
ruction of theit houses
! those appli cants who have comm enced const
and are awai ting release of second and subsequent instalm ent s,
it has been ecided that the House Buil ding Advan ces may be
sanc ti on ed within the allo cated funds according to the priori
ties, as in i cated beloW:
(i) The first priority may be accorded to construc
tion cases where commitments have already be en
made i.e. 1st instalment has been releasedfo
con struction an d 2nd and subsequent instalm ents
have to be rel eased at plinth and roof levels,
(ii) The second priority may be for- those appli cant s
who are due to retire sh0rtly - say within the
next 5 ycars-as any delay in their case will
further redçce the period of recovery, thereby
affecting thG quantun of advan ce.

(iii) The next priority may be accorded to applicati ons

for purc hasG of ready- built flats where the City
Housing Boards, Developm ent Authoriti es or even
rivate parties have fixed a time limit for pay
me nt, and non-payn Gnt by the due date is likelv
to re sult in cancellation of allotment or offer
to sell: in the case of latter, thre is the ri sk
o Garnsst monoy paid by the appcont being
foroi ted,

(iv) In the lagt categor y may fall appli catiuns not

covercd by above.
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Contdo.
 -2 -

All the Mini stries/ Departm en ts are requested to

keep the above priorities in vi ew while sanctioning the
House Building Advan ce. Sui table instructions, on these
1ines, may afso please be issued to all subordinate fo rma
tions to wh om powers to sanction House ,Buil ding Advance
have been del Ggated.

( A.P.Jeif )
Under Secre tary to the Govt. of Indía
To

1. All the Ministri es/Departr ent of the

Governm ent of India (As per li st),
2. Th6 Uni on Territories without l6gislature
(As per list).
Copy forwarded to:
1. Finance Divi si on( W&E), Ministry of Works &
Hou sing, New Delhi.
2. Mini stry of. Finan ce( Department of Exp endi ture),
New Delhi.

3. Ministry of Finance ( Departm ent of Econ Omi. c

Affai rs - Budget Divn. ), New Del hi .
4. P.S. to Sccretary/J.S.(F).
5. All 0fficers/ De sks/ Sections in the Mini stry of
Works & Housing.
6. Spare copies folder (10 copi es) .

UndGr Secretary to the Govt,

( A.Past
of india

LR/Z(p,2)

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 No.I/l7011/5/75-HIII
Government of India
Ministry of Works and Hous1ng
(Nirman Aur Awas Man tralaya)

New Delhi, dated the 5th July,

1975
OFFICE MEMORANDUM
Subject; House Bui lding Advance to Central
Release of instalmen ts of advance Government
to 0fficialsServants
Suspension. under

to
ation that In5tstsrom &artaij:
iX:R$enfe efyed
case some
DeDartangSAng
against a Cen tral Go vernment s ervant and/or heaction
linary, Is ending
iS placaã under
henctioe to Whether
or adVAn or
ce not the hquse building, adv¡nceaguld
has already been sanctioned,
Or not the instalmen ts of adyance should be
dis bur sed.
wnetner
Since there is no
House Building Advan ce RulesSpecific provision in the existing
as to whether or not the payment of
hÍus e building advance should be made to the
Pace the îndividuals who are
pe matter was
now been deçided,ofÍre,
ther referred to
wi th the MiHistry of Law has in onsutan
that an off)cial undér Suspension
prevented îr om carrying Qut hi_ no rmal duties
à GoV ernment servant, and receives butcon tÉnues. to be
subsistance
o ther rights and obligations should not be affected, Asallowan ce, his
Such the
Central Government Servan ts, who are placed under susp
continue to be eligible for advan ce and payment on this ension,
can be made to them by the Head of the Departnen t subjectaccount to the
condi tion that collateral security in the shape of
rgm, t wÍ permangnt Coniral GÍvernment Servant shoutd so ou
9btaingd,ao, that
Insufficient moneyÉn,being
the available
event.,o£, default or belatedetc,
COreclosure eaymgnt
the or
shortage of recovery may be made up by collater al'security,

( Y,V, Narana
Under Secretary to the Govt, of India
To
All the Ministries/Dep artnents of the Gov t, of India (as per
standard list).
2. Chief Secretaries/Administrators of State Govts.Union
Rarritories.
3, P.S. to H,M./DM/Se cretary.
Supreme Court of India
All 0fficers/sections in the Minis try of Norks General
Housing
of
Amen dment to Rules. 7. Comp troller & Auditor
8. Information 0fficer.
9. Spare copies 400.

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 No, I/17012/1/89/H, III
G 2) nt of India
of rban Development
Ministy
(Housng-IËÊ Section)
Dcember, 89.
New Delhi, dated the
QPFIÇE MEMORANDUM
12DEC10A9
hdvançe to
SbjectiRelease of nstalment of Houge Building
obttining Col]ateral
offi¢ialg under suspension after
Scårity"

The ndersigHed is directed

tÍ invite uttun tiçn to chis
it has
dt 5.7,75 wherein placed
Ministry's O, M. NO, I/17011/5/15 /H,.II who ure
been clarËfied that the ntral Govt, servants,
ui\ding advance
y eligible for hÍåse
nder suspengion, Gontinue to o them 'ay the Hesd of
t on this àgcount cn be made
and p2y:non y in
Deptt, subjeçt tÍ the gcnii tion that çollateral $çuri
the Gvt
frgm twÍ p¹m-nont Central default
the shape of iorteiage Bond the event of or
S r v n ts shoul 4 o c i n a d sÍ thzt in forecloqUFp
nelng vail:ble py
02let d peynent oa insuffiçient money maVe from Collat ral Security,
hortage or reçovery may be
etc. the
Ministry
have been received in this
In thnis regard referencês MÌTtgage for the purpose of
for drawing a standard fom of this purpos has
Collat ral Security, The fom of MOrtgage for of ;aw and the
with the Ministry
been drawn up in consultation
same is annexed to this O,M,
mortgagor of the
3, It is furth¹r clarified that the
_ervants who mortgage
requir d Deed that is the pefman nt govt. Qrder to, make the govt.
Security in
their property as Collateral house building advance, will
servant und r su_pension eligible for
be required to bear the stanp duty,
EncltAs above

(S.Balakrishnan)
Vnder gecr tary to the Govt, of India

Ministries/peptts. of Govenment of India,

1° A11
2. Union Territory cministration of Delhi, Chandigarh,
Lakshadweep Dadra & Nagar Haveli && Andaman & Nicobar Islands,

3 Comptroller &Auditor General of India, New Delhi,

Finançe Division (W&E) Ministry of Urban Development, New Delhi.
5; Spar Copies (50 copies),

74
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 |-17011/11(4)/2016-H.I!
Government of India
inistry of Housing&Urban Affairs
Housing-lllSection
Nirman Bhawan, New Delhi,
Dated 31.01.2018.
OFFICE MEMORANDUM

Subject: Small Family Norms in House Building Advance Rules-2017 as per the
recommendations of 7h CPC- reg.
The undersigned is directed to invite attention to Ministry of Finance's OM No.
12(4)/2016-Ell.A dated 7th July 2017 on the above mentioned subject and to say that
interest rebate available to HBAbeneficiaries for promoting small family norms shall
cease to exist with effect from 01.07.2017.

(Shailendra Vikram Singh)

Director(|FD)
Tel:011-23062798
To,
Allthe Ministries and Departments of the Government of India,C&AG and
UPSC, etc. as per standard endorsement list.
Copy for information to,
1. PS to MoS(lWc), H&UA
2. PSO to Secretary
3. PPS to JS&FA
4. Budget Division
5. US (Admn.), MoHUA
6. IT- Cellfor uploading in Ministry website
7. HindiSection for Hindiversion.

75
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 No.I/17015/6/e3/HIII
Government of Indi
Mini stry of Works & Housi ng
New Delhi, dated the 8th
Jansg85..
OFFICE MEMORANDUM
Subject-Liberali sation of
Govt. Empioyeese, Hou se Bui lding Advance Rules for Central

In this
provided that the Ministry's
existing
0 of even nunber
dated 7o4-84 it has been
Rules that neither the stipulati on in the House
child should own a housoapplicant nor the applicant's Euiwi
lding Advance
bec ome eligible for HBA, in Urban area for the Governmentfe/hu sband/mi nor
the condition that has been deleted. This
is hosever,
servant to
thapplicant
child should not already own or the applicart 's subjectto
where the house is proposed a house in the wife/husband/mi nor
from Govt. to be constructedt/Urb[i agglomeration
gr acquired with the
After the issue of, advance
Govte. servant; who is "a ordersa questigd arose whether
the same pl¡ce member of HðF vhich ons a a Central
Building Advanceshould :al_o be consi dered
cönstråct his house ateligible
hause situated at
ofHau se Building toAdvanc@. for grant of House
the same place with the
now been decid¹d that, After consideration help
cases restricting it to HouseBuilding Advance mayofbethe natter, it has
In other words, the 6% of what would have
been
grantdd in such
with the Rules and it normal entitlement admissible otherwi see
worked out. should be limçtcd should be
to EK of worked out in accordance
the entitlement so
3,. As a rsult of aboves
17015/6/83/H,
ampli fi ed daraIIIis dated 764.84
para VII of this
has been amp11fied.Ministry's OM No.I/
cnc losed för A copy of the
information and necessary
Hindi version of this -0 action:
is alsó enc losede
Encla
As abovee

Under Secretary(M oRto «RAO)

the Govte of India

76 77
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 2 ..

To
of the Govt. of India.
le All the Mini stries/Dgptts.
strations of Dolhi, Chandigarh,
Lakshadweop
2. Unior. Torritory Admi ni Andaman Nicobor Islandse
Dadra & Nagar Haveli &
Copy forwarded to

New Delhi.
l. Comptroller & AG. Of India,
(AR), D/0 Personngl &ARo
2. Shri R"Parame swar, Additional Sccretary
Nav: Dolhi.

Deptt. of Expend
3. Shri SeCoMahalik, JS.(Pers), Ministry of Finance,
iture, New Delhi.

4. Shri S.Krishnan, JS.(JCM), D/O Personnel & AoR" New Delhi.

5. Finance Division (W&E), /o Works & Hou sing, New "olhi.
6e. M/O, Finance (Deptt. of Exp enditure), New Delhi.
7. PS to B/DA.
8. PS to Secretary"
9. PS to JaSecretarics in the Ministry of Works &Housing.
10. A1l 0fficers/Desk Officers/Sections in the Ministry"
11. Information 0fficers M/o W&H , New De Ihi (Sha stri Bhavan).
12. All attached and subordinate offices under the M/O Works & Hous inge
13. UeS", JCA.g Deptt of Porsonnel & A Ro, New Dolhi (with 50 copies for
Members of JCM N¡tional Council).

14. Sanction File (10 Copies)"

15. Spare Copies folder (50 Copies).

(A R «RAO)
Under Scretary to the Govt. of India

79
77
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 70!5/l2/25- i-ILl
iNo. 1/
Government of India
Employment
Urban Affairs
and
Ministry of
(Housing- I I I Section)

16th June, 1995,

New Delhi, dated the

OFFIÇE KERORANDUNi

houses/flats
constructed or
Insurance of house building
Subject: acquired with the help
of
advance - Condonation of the period of
non-insurance.

governing the grTnt of

In accordance with thetherules
Central Government employees.
building advance to
housè
construct/acquire hou Ses/flats with. the help of house
who to get the same insured
building advance are. re quired completion/
lightning soon after the.
against fire,. flood and Departments were delegated powers to
acquisition. He ads of
upto a period of one
Condone the noninsurance of houses
Works and Housing
year under the erstwhile Ministry of
0.M. of even number dated 31,7.65,
number of
2. Ministry of Railways etc. having a large
gought
employees spread ell over the country, have regularisation
enhanc ement of the delegation Di regard to examined in been
of nor-insurance period. The matter has
this Viinistry and it has /been decided to enhance the powers
of the IHead of Departaments from the existing limit of one
year to twO years for condonation of the non-insurance of
houses by empl.oyees. Accordingly, the Aäninistrative
Ninistrics,'Dapart1nents will,. henceforth be competent to
condune the periods of non-insurance of houses/flats upto
two years. hile deciding individual cases the Head of
Departments shall satisfy themselves that the house had
not suffered any loss/damage etc. and irregul arity was not
delilberate on the part of the Governinent employees concerned
but was due to the circumstances beyond. his/her control.
3. Cases of non-insurance of houSes beyond tWo years
should te referred to this inistry.
4, In so far as the employees working in Indian Audit
and Ac Counts Departnant are Concened, this issues with
the concurrence of C&AG cf India.
5. Hindi version is enclosed.

( I.L Bansal )
Under Secrotary(H"0I
Tel. No. 30l869 1.
To
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All iäni strins/Departnonts of Covt, of India.
 - 2 -

2 e Wnion Territoy Chandigarh, Lakshaave}, dra & Nagar Haveli

& Andaman & Nicobar Island.
Copy fowarded to:

1C&À,G, of India, Wew Delhi,

2,Minis try of Finance (D/0 Expenditure) Division,
3 ,Deptt, of Personnel & Tmining, JCA
4.Supreme Court of Inaia,
5,Guard file.

(I.L.Bansal)
Undor. Seare tary (H,III)

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 83
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 No.l-17011/12/2002-H.III
Government of India
Ministry of Urban Development &Poverty Alleviation
(Housing III Section)
New Delhi, 9" January 2003
OFFICE MEMORANDUM
Subject: - Compliance with the tems andconditions attachcd with the sanction of
Housing Building Advance (HBA).

Instructions have becn issucd from time to tine to all the

Departments of the Government of India Ministries and
attached with the sanction of House to ensure that all the terrns and conditions
employees under the rüles Building Advance (HBA)
duly complied with by all including those relating to insurance and to government
have also been made for the concerned loance mortgaging are
government scrvants. Provisions
where the circumstancescondonation/relaxation of these
are beyond the control of theterms and conditions in cases
provided the request of the loance loanee government servant
tenms and conditions of HBA govemment, servant for condonation/relaxation
of
concerned Joint Secretary/1Head of rules are supported by recommendation of the
Department.
2. However, it has bceD, seen that lhe cases
non-moitgaging and non-imsurance periods, etc. involving condonation/relaxation of
a routine manner without are being referred to
have come to 'notice that adequate examination. Also, in the recent this Ministry in
even the cases where the past, instances
merely cited reason(s), which inarc not supported by loanec government servant has
Dn-compliance of the conditions any documentary
recommended and refered to this of morlgaging and insurance, etc.evidence, have
for
been
approval of the Ministry for
Ministry finds itconcerned Joint Secetary/fHead ofcondonation, with or without the
government servantdifficult to verify the veracity Departraent. In such cases, this
of the plea of the
Joint Secretary/Head and in the circumstances,
of Department assumes a the recommendation concemed
of the concemed
great significance in such
3. It is once again cases.
Government of India that theimpre_sed upon all th¹ Ministries/Departments
sbould be strictly monitored compliance of all the teims and of the
as well as the in the interests of
both the conditions of HBA rules
unfit casc. If Govermment
any
of lndia. There
should not beloanee goveriment employee
relaxation/condonation any
of provisions of hesitation in rcjecting an
HBA rules including
those

84
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 al, thic Adninistrative
of rnortgaging Hnd nsurance tequircd
salislied on the
Ministry/Depar1ment may thoroughly exanine the caseand ifthey are
Ministry withh the
Justitication/merit of the case, thcn only thc casc be rctened to this
lead of Depart1nent for
Specific rccommendation of the concerned Joint Secretarv/i the
condonation/relaxation ol the provisions of tlie HBA rules along with all
supporting documents certifying tlhat thc circunstances leading to non-compliance of
HBA rules are beyond the control of the governent servAnl.
4. Further, all the Ministries/Depariments are requested to keep a strict watcn
over compliance of the provisions of HBAnules by the loanee government cmployees
by means of inspections at regular intervals of time as is done in case of insurance
where review of insurancc policies is required to be undertaken cach ycar in the
month of June/Tuly followed byremedial action. While carying out such periodical
inspections, if any discrepancy with respect of mortgaging, recovery of HBA loan,
etc. is noticed, tlhe same should be taken un with the concerncd loanee government
Servant for necessary remedial aclion at his/her end so that there is no room left for
any violation/non-compliance of any of the provisions of HBA rules.
5. This issues with the approval of JS & FA.

(S.K. Grover)
Deputy Finance Adviser
Tel.No.2301-8691
To

All the Ministries/Departmenls of the

2. All the Govermment
Attached and Sub-ordinate Offics ofofIndia
Development && Poverty Alleviation. Ministry of Urban
3 Union Territories of Andaman & Nicobar
Nagar Haveli, Lakshadweep, Daman& Diu. Islands, Chandigarh, Dadra &
4 Office of the Comptroller & Auditor
General of India.
Supreme Court of India.

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 ANNEXURE-II

Frequently Asked Questions (FAQs) on

House Building Advance (HBA)

Q.1 What is House Building Advance (HBA)?

A.1 House Building Advance (HBA) is a scheme regulated by Ministry of Housing
& Urban Affairs that provides financial assistance to Central Government
employees for constructing, purchasing, or expanding a house.

Q.2 Who is eligible for House Building Advance (HBA)?

A.2 Any permanent Central Government employee and other employees with a
minimum of 5 years of continuous service, Employees on deputation, Members
of All India Services, Employees of Union Territories.

Q. 3 Can both spouses apply for HBA if they are both Central Government
employees?
A. 3 Yes, if both spouses are Central Government employees, HBA can be granted
to both of them either jointly or separately, provided both are eligible under the
rules.

Q. 4 What is the maximum loan amount under HBA?

A. 4 For constructing or purchasing a new house/flat: 34 months of basic pay, subject
to a maximum of ₹25 lakhs or the cost of the house, whichever is lower.

For expansion of an existing house: 34 months of basic pay, subject to a

maximum of ₹10 lakhs or the cost of expansion, whichever is lower.

Q. 5 What else other than ‘Basic Pay’ is part of ‘Pay’ in computing of House
Building Advance as well as determining the cost ceiling limit and repaying
capacity?
A.5 Family Pension at normal rates drawn by a Government servant
Non-practicing allowance sanctioned for medical posts

Q. 6 What is the cost ceiling for availing HBA?

A. 6 The cost of the house to be built or purchased should not exceed 139 times the
basic pay of the employee, subject to a maximum of ₹1 crore. The cost ceiling
can be relaxed up to 25% in certain cases with approval from the Head of the
Department.

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Q.7 How is repayment capacity calculated for HBA?
A.7 The repayment capacity is calculated based on the employee's remaining service
years:

o For employees retiring after 20 years: Up to 40% of basic pay.

o For employees retiring in 10-20 years: Up to 40% of basic pay,
and 65% of DCR Gratuity can be adjusted.
o For employees retiring in less than 10 years: Up to 50% of basic
pay, with 75% of DCR Gratuity adjustable.

Q. 8 What is the interest rate for HBA?

A. 8 The interest rate for HBA is 7.44% for the financial year 2024-25. The rate is
reviewed annually.

Q. 9 How is the HBA recovered?

A. 9 For purchasing a ready-built house: Recovery starts from the pay of the month
following that in which advance is drawn.

For constructing a house: Recovery starts from the pay of the month following
house completion or after 18 months from the first advance, whichever is earlier.

For purchasing land and constructing a house: Recovery starts from the pay of
the month after house completion or after 24 months from the purchase of the
plot, whichever is earlier.

Q. 10 What is the repayment period for HBA?

A. 10 The repayment period for HBA is 20 years, consisting of:
180 monthly installments (15 years) for repayment of the principal.
60 monthly installments (5 years) for repayment of interest.

Q.11 Can HBA be used to repay an existing home loan?

A. 11 Yes, HBA can be availed for repaying home loans taken from banks or other
financial institutions for the construction/purchase of a house/flat subject to
fulfillment of other extant conditions. However, the amount sanctioned will be
limited to the outstanding loan amount.

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Q. 12 What is the disbursement process for HBA?
A. 12
o For the purchase of a ready-built house, the advance is paid in
one lump sum.
o For construction/expansion, HBA is disbursed in two
installments: 50% initially and the balance when construction
reaches the plinth level.
o In the case of advance for purchase of plot and construction of
house:

Single Storeyed House:

Initial Advance: 40% of the advance
Subsequent Payments:

o First Instalment: 30% (after mortgage execution).

o Second Instalment: 30% (when construction reaches plinth
level).

Double Storeyed House:

Initial Advance: 30% of the advance
Subsequent Payments:

o First Instalment: 35% (after mortgage execution).

o Second Instalment: 35% (when construction reaches plinth
level).

Q. 13 What happens if an employee dies before repaying HBA?

A. 13 If an employee dies before repaying the advance, the balance is adjusted from
the death-cum-retirement gratuity (DCRG) and no interest is charged on the
amount of the advance thus adjusted against death-cum-retirement gratuity.

Q. 14 Can an employee apply for a second loan if the HBA isn't enough?
A. 14 Yes, employees can take a second loan from banks/other financial institutions
after obtaining a No Objection Certificate (NOC) for the second charge,
provided the total loan amount does not exceed cost ceiling of the house.

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Q. 15 Can I mortgage my house with another financial institution while
availing HBA?
A. 15 Yes, employees can declare a second charge to meet the balance cost of the
house/plot from a recognized financial institution. However, the total loan
from all sources should not exceed the cost ceiling defined under HBA rules.

Q. 16 Is insurance of the house mandatory?

A. 16 Yes, the employee must insure the house against fire, flood, and lightning
for atleast the amount of the advance until the loan is fully repaid. Failure to
do so will attract penal interest of 2%.

Q. 17 Can an employee under suspension apply for HBA?

A. 17 Yes, an employee under suspension can apply for HBA, but he/she must
provide additional collateral security from two permanent Central
Government employees.

Q. 18 Can I apply for a second HBA during my service?

A. 18 No, only one HBA is allowed to be sanctioned during the entire service
period of a government employee.

Q. 19 Can I apply for HBA for building a second house if I already own one?
A. 19 No, if an applicant or his/her spouse owns a house in the same town or urban
area, he/she not eligible for HBA. However, exceptions are made for
properties that are coparcenary or joint family properties, but the advance in
such cases is limited to 60% of the admissible amount.

Q. 20 Can HBA be used for the purchase of a flat from a private individual?
A. 20 No, HBA cannot be used to purchase a flat from private individuals. It can
only be used for flats purchased from recognized entities like housing
boards, development authorities, or registered builders etc.

Q. 21 Is there any priority for the sanction of HBA?

A. 21 Yes, priorities for sanctioning HBA are:
1. Construction cases where prior commitments have been made.
2. Employees nearing retirement.
3. Purchase of ready-built flats where delay could result in cancellation of
the offer or forfeiture of earnest money.

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Q. 22 Is HBA available for the renovation or improvement of an existing
house?
A. 22 No, HBA is not available for minor renovation, repair, or improvement of
an existing house. It is only available for expansion of living accommodation
of an existing house owned by the employee or jointly with spouse.

Q. 23 Can I use HBA for the purchase of a plot alone?

A. 23 No, HBA is not sanctioned for the purchase of a plot alone. The advance is
only provided for the purchase of a plot along with construction, or for
constructing a house on a plot that the employee already owns.

Q. 24 What happens if the construction is not completed within the stipulated

time?
A. 24 If the construction is not completed within the stipulated time, the
Government employee will be liable to refund the entire amount advanced
to him/her together with interest thereon in one lumpsum. An extension of
time limit may be allowed up to one year by Head of the Department and for
a longer period by Government in those cases where the work delayed due
to circumstances beyond the control of the Government employee.

Q. 25 Can I sell the house built or purchased with HBA before repaying the
loan?
A. 25 No, the house built or purchased using HBA cannot be sold or transferred
until the entire loan, including interest, is repaid in full. If an employee wants
to sell the house, prior permission from the competent authority is required,
and the outstanding amount must be cleared.

Q. 26 Can I apply for HBA after superannuation/retirement?

A. 26 No, HBA cannot be applied for after superannuation/retirement

Q. 27 Is there a provision for premature repayment of HBA?

A. 27 Yes, premature repayment of HBA is allowed.

Q. 28 Can I combine HBA with loans from banks or other financial

institutions?
A. 28 Yes, employees can combine HBA with loans from banks or financial
institutions to meet the total cost of construction or purchase, provided the
total amount does not exceed the cost ceiling. HBA will be treated as the
first charge on the property and additional loans will be treated as a second
charge.

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Q. 29 What is the process for mortgaging the property to the government?
A.29 Once the house is purchased or constructed, it must be mortgaged in favor
of the President of India as security for the repayment of the HBA. This
mortgage is required to be registered with the local registration authorities.

Q. 30 Can HBA be availed for the purchase of agricultural land?

A. 30 No, HBA cannot be used for the purchase of agricultural land. It is strictly
for the construction or purchase of residential houses/flats.

Q. 31 Can HBA be availed for construction of residential portion on a shop-

cum-residential plot?
A. 31 Yes, HBA may be grant for construction of only the residential part of the
building on a shop-com-residential plot situated in any residential colony
with the conditions that-

o For cost ceiling, cost of land and cost of superstructures

including the shop(s) and the proposed residential portion will
be taken into account.
o The Government employee will mortgage the entire property.
o The Government employee will have to insure the whole
building.

Q. 32 What happens if an employee is transferred after availing HBA?

A. 32 If an employee is transferred after availing HBA, the recovery of the
advance will continue from the new place of posting.

Q. 33 Who will bear Stamp duty on Mortgage Deed and Reconveyance Deed?
A. 33 Stamp duty on Mortgage Deed and Reconveyance Deed, wherever charged,
has to be borne by the loanee Government servant.

Q. 34 Is a Government employee eligible for HBA for the purpose of

repayment of home loan taken against purchase of resale property?
A. 34 No, HBA can be granted neither for purchase nor for repayment of home
loan taken against purchase of resale property.

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