I-17011/11(4)12016-H.III
Government of India
Ministry of Housing & Urban Affairs
Housing-III Section
Government of India
Ministry of Housing & Urban Affairs
Housing-III Section
Nirman Bhawan, New Delhi,
Dated . 29.06.2018.
Dated . 29.06.2018.
Subjec
: Interest bearing advances / Seventh Central Pay commission
recommendation on House Building Advance – enhancement in past cases
regarding.
The undersigned is directed to invite attention to this Ministry’s OM No. I-17011/11(4)/2016-H.III dated 09.11.2017 on
the above-mentioned subject and to say that it has been decided in
consultation with Ministry of Finance to make the aforesaid orders
applicable with effect from 1st January, 2016. Accordingly, it has been
decided that an enhancement of House Building Advance, if applied for,
would be granted to government employee for an amount equivalent to the
difference between the previously sanctioned amount and the new eligible
amount determined on the basis of basic pay as per 7th CPC, in past
cases, where HBA was sanctioned on or after 01.01.2016 but before
09.11.2017 subject to complying following conditions:
a) The Government employee should not have drawn the entire amount of
HBA sanctioned under earlier orders and/ or where construction is not
completed/full cost towards acquisition of house/ flat is yet to be
paid.
b) There will be no deviation from the approved plan of construction on
the basis of which the original sanction of House Building Advance was
accorded. The revised cost of the original plan can, however, be
considered for determining the additional amount, subject to the
prescribed maximum limits.
c) Supplementary Mortgage Deed. Personal Bond and Sureties will be drawn and executed at the expense of the loanee.
d) The actual entitlement will be restricted to the repaying capacity
computed on the basis of the formula laid down in this Ministry’s OM No
I-1701/1/11(4)/2016-H.III dated 09.11.2017. It should be ensured that
the entire amount of advance with interest is recovered before
retirement of the Government servant
e) Rate of interest: The
rate of interest will be at 8.50% from the financial year 2017-18
onwards. This will be reviewed every three years to be notified in
consultation with Ministry of Finance. However, the new rate of interest
would be chargeable only on collective amount that would remain
outstanding on grant of enhancement of HBA. i.e., the unpaid portion of
previously sanctioned HBA plus the enhancement so granted. Thus. the
amount of HBA that has already been re-paid on old rates will not
attract the fresh interest charges.
2.
However, the existing limit of maximum admissible amount of Rs. 25
lakhs for the purpose of construction/ purchase of new house/ flat and
Rs. 10 lakhs for expansion of existing house/ flat would remain
unchanged. In other words, the sum total of previously, sanctioned House
Building Advance and the enhancement granted under these orders cannot
exceed the aforesaid limits. In any case, not more than one enhancement
is admissible to a Government employee.
3.
The applications for enhanced House Building Advance should be
submitted within six months from the date of issue of this order.
4.
Ministries/ Departments with branch offices in the far-flung
areas are be advised to give wider publicity to these orders through
modern communication means so that there is no occasion for any
representation for extending the time limit of six months on the grounds
of late receipt of these orders.
5. This issues in supersession of all the earlier orders on the subject.
(Shailendra Vikra Singh)
Director (IFD)
Director (IFD)
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