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CHAPTER
XI ADVANCES 1101. Rules
governing the grant of various
Advances and withdrawals permissible to railway 1102.
Purposes for which Advances can be sanctioned (i) For purchase of conveyance. (i) (a) For purchase of personal computer. (ii) For construction/purchase of
house/Flat etc. (iii) For purchase of table fan. (iv) For purchase of warm clothing. (v) Advances of pay on transfer. (vi) Advances of T.A.
on tour/transfer/retirement. (vii) On proceeding on deputation
abroad/return to (viii) As leave salary. (ix) Advance for meeting losses due to
natural calamities like floods etc. (x) For law suits. (xi) For treatment of Cancer. (xii) For festivals. 1103.
Interest will be charged on the types of Advances mentioned at items (i) to
(iv) of 1104.
General Conditions for grant of Advance for the purchase of Motor Car/Motor
Cycle/ (1)
A Head of Department under whom the railway servant is for the time
being employed may sanction an advance for the purchase of conveyance. The
advance will be granted only when the said authority is satisfied that the
railway servant has the capacity to repay the advance. (2)
An advance shall not be granted to a
railway servant who has already purchased the conveyance and paid for
it, unless the conveyance has been purchased within a period of three months
from the date of the advance was applied for and has been paid for by raising a temporary loan. (3)
Meaning of the word
'Pay'-—For the purpose of these rules 'pay' shall mean pay as Defined in Note : In the case of a Government/Railway
servant who has not opted for the revised scale (4)
Interest :—Simple interest at
such rates as may be fixed by
government from time
to time shall be charged on
advances granted to railway servant for the specified items. Such interest
shall be calculated on balance
outstanding on the last day of each month. (5) Conditions of Eligibility: A
Government / Railway Servant may be granted an advance for the purchase
of a Motor Car/Personal Computer / Motor -Cycle / Scooter / Moped provided
that : i)
The advance for the purchase of a
Motor Car/Personal Computer shall be granted to those government /Railway
Servants having pay of Rs.19530/- or more
excluding grade pay, per
month in the pay band. The secretary of an administrative Ministry /
Deptt. Shall be competent to relax this condition in deserving cases. ii)
The advance for the purchase of a
motor -cycle /Scooter / Moped shall be granted to those government / Railway
Servant
having pay of Rs.
8560/- or more excluding grade pay, per month in the pay band
. The
authority competent to sanction this advance may, however relax this condition
in deserving cases. (Authority Board's letter NO. F(E)SPL. 2008/ADV.2/4 dated
26-02-2009) 1105.
Purchase of Motor Car—(1) Amount of Car Advance—The total amount of advance
which The quantum of advance that may be
granted on the second or subsequent occasions for the purchase of a Motor- car Such second or subsequent advances for
the purchase of a motor car will be admissible only after four years reckoned
from the date of drawl of the last advance have elapsed, provided that this
restriction of four years shall not apply in the following cases :— (a)
where an advance has been allowed earlier for the purchase of a motor
cycle/scooter (b)
where he disposes of his motor car in (c)
where he is appointed to a regular post abroad and does not take
his motor car Note. 1 The world
"price" used in the above sub rules includes the Registration money 2—Where a Government/Railway servant
desires to keep two vehicles of different Rule 201 of GFR (Swamy's Compilation) (2) Recovery of Advance—The advance
granted, either for the first time or on subsequent occasions shall be
recovered in such number of equal monthly installments as the railway servant
may elect, not exceeding 200 installments. The railway servant may at his option
repay more than one installment in a month. 1105(a) Purchase of Personal Computer: The authority competent to sanction an
advance for the purchase of Motor car may sanction an advance not exceeding
Rs.80,000/- (Rs. Eighty Thousand) on the first occasion and Rs.75,000/- (Rs.
Seventy Five Thousand) on the second
or subsequent occasions, or the anticipated price (excluding customs duty, if
any), whichever is less to a Railway Servant who is otherwise eligible for
the grant of Motor Car advance in terms of existing Rule, for the purchase of
a personal computer.
(b)However, an advance not. exceeding Rs.30,000/- or the anticipated price (excluding customs duty, if, any) whichever is less, may be sanctioned to Railway servants for purchase of personal computer whose pay is Rs.8560/- or more excluding grade pay, per month in the pay band and who are otherwise not eligible for grant of Computer Advance under existing provisions.
CONDITION OF SANCTION: 1.
The Railway Servant , who has already drawn an
advance for the purchase of a personal computer and a period of 3 years has
not elapsed from the date of drawal of the earlier advance, shall not be
eligible for the grant of second and subsequent advance for the purchase of a
personal computer. 2.
An application for the grant of
advance for the purchase of a personal computer shall be required to be made
in GFR FORM-27. 3.
No advance for the payment of
custom duty on the personal computer shall be sanctioned. 4.
The personal computer will be
required to be mortgaged in the name of the President and for this purpose
GFR FORM-24 may be used by substituting the words, "Motor
Vehicle" with the words 'Personal Computer". Similarly GFR FORMS of agreement for
drawing an advance for the purchase of Motor Car may be used by substituting
the words "Motor Vehicle" with
the words "Personal Computer" Make and Model of the personal computer may
be entered in the Mortgage deed. RECOVERY OF ADVANCE: 5.
The advance sanctioned for the
purchase of a personal computer shall be recovered in such number of equal
monthly installments as the Railway servant may elect, but not exceeding 150. 6.
Total recoveries on account of all
advances including computer advance, taken by a Railway Servant shall not
exceed 50% of the total emoluments. INTEREST. 7.
Simple interest at such rates as
may be fixed by Government from time
to time for the Motor Car advance shall be charged on advance granted to
Railway Servant for the purchase of Personal computer. 8. All other conditions laid down in the Rules regulating the sanctioning of motor car advance will apply to the advance which may be sanctioned for the purchases of a personal computer. FROM G.F.R. 27 A. Application
Form for the Purchase of Motor Car/Motor Cycle/Personal Computer. 1. Name
of the Applicant. 2. Applicant's
designation. 3. District
and station. 4. Basic
Pay. 5. Anticipated
price of motor car/Motor Cycle/Personal Computer. 6. Amount
of Advance required. 7. Date
of superannuation or retirement or date of expiry of contract in case of a
contract officer. 8. Number
of instalments in which the advance is desired to be repaid. 9. Whether
advance for similar purpose was obtained previously and if so — (i) date of drawal of the advance. (ii) the amount of advance and/or interest thereon still outstanding, if any, 10. Whether the intention is to purchase — (a) a new or an old Motor Car/Motor Cycle/Personal Computer. (b) if
the intention is to purchase Motor Car/Motor Cycle/ Personal Computer through
a person other than a regular or reputed dealer or agent, whether previous
sanction of the competent authority has been obtained as required under rule
15(2) of the Central Civil Services (Conduct) Rule, 1964. 11. Whether the Officer is on leave or is about to proceed on leave (a) . The date of commencement of leave. (b) The date of expiry of leave. 12. Are any negotiations or
preliminary enquiries being made so that delivery may be taken of the motor
car/motor cycle/Personal Computer within one month from the date of drawal of
the advance? 13. (a) Certified that the
information given above is complete and true. (b) Certified that I have not
taken delivery of the Motor Car/Motor Cycle/Personal Computer on account of
which I apply for the advance that I shall complete negotiations for the
purchase of, pay finally and take possession of the same before the expiry of
one month from the date of drawal of the advance.
Applicant's Signature Date: (Railway Boards letter No. F(E)Spl./ 95/ADV/4/1 dated 26-09-96) 1106.
Purchase of Motor Cycle/Scooter/Moped etc. The quantum of advance that may be granted
on the second or subsequent occasions for the purchase of a
motor-cycle/scooter/moped shall be restricted to Rs. 24,000/- (Rs.Twenty
four thousand ) or three months basic pay and dearness pay taken together,”)
or the anticipated price of the motor cycle/scooter/moped whichever is the
least. The amount of advance will be recovered
in such number of equal monthly installments as he may elect but such number
shall not be more than seventy. (2)
The railway servant concerned should furnish a certificate to the
effect that he has not drawn any advance earlier for the purchase of
conveyance of the same type. The sanctioning
authority should also verify the correctness of the
certificate given. (3)
In the case of second or subsequent occasions, the amount of advance
will be less the profit earned on the sale of the previous scooter/motor
cycle/moped, i.e. the excess of sale proceeds over the purchase price paid by
the railway servant at the time of its purchase. No. F (E) Spl./87/(l) adv. 2/8 dt.
31-8-87 (4) Notwithstanding the condition stated in Para 1104 (5) (ii) of IREM an advance upto Rs.20.000/- or the anticipated price, whichever is less, may be sanctioned by the competent authority for purchase of Moped to Railway Servants having pay below Rs.8560/- excluding grade pay per month in the pay band. 1107.
Cycle Advance—(1) A Government / Railway Servant
whose grade pay does not exceed Rs.2,800/- (Rupees Two thousand eight hundred) may be granted an advance for the purchase of a
bicycle provided that : (i) The amount of such
advance shall not exceed Rs.3,000/- (Rs.Three thousand) and shall be Note- Since cycle advance is now an interest free advance, Para 1108 (6) relating to recovery of interest would not be applicable to cycle advance. (NO.F (E) Spl. 2008/ADV.2/2, dated 07/11/2008.)-acs no. 204 (ii) the amount of such advance shall be
recovered in equal monthly installments not Authority
Board's letter NO. F(E)SPL.
97/ADV./2/2 dated 4-3-98 and 1.11.04) (2)
An advance for the purchase of bicycle should not ordinarily be
granted within three years of a previous advance unless satisfactory evidence
is produced by the railway servant concerned to the effect that the bicycle
purchased with the help of the earlier advance has been lost or has become
unserviceable. F(E)Spl./81. Adv. 2/2 Dt. 23-7-1981. NOTE : Priority may be given to the
requests of the railway servants who have not drawn an (3)
The Railway servant should furnish cash receipt for the purchase
within one month of drawing the advance. 1108.
Other conditions for grant of advance to purchase conveyances. (1)
'Actual price' of conveyance includes (i) Sales Tax and the cost of such
items e.g. spare wheels, tyre and Tube or pillion seat. It does not cover the
cost of certain accessories such as radio in a car, plastic covers. It
includes registration money paid for in advance by the Railway/Government
servant to the dealer while booking for the new car
and which is (ii) the cost of transportation of the conveyance up to the place of duty of the railway servant at the time of purchase irrespective of whether the transport is arranged by the distributors or by the railway servant himself; and (iii) the octroi charges actually paid. (2)
Necessary provision exists in the
Budget for grant of such
advance. (3)
While there is no objection to
the grant of advance to temporary/contract officers,
it must be stipulated that the amount of advance
together with interest thereon is recovered at the time of issue of last pay
to the railway servant concerned. These advances should be granted subject to
the production of surety of a permanent railway servant of comparable or
higher status not governed by the Payment of Wages Act. (4) The railway servant shall not sell
or transfer the conveyance so long as the amount of advance together with the
interest on such amount is not completely repaid except with the permission
of the competent authority. (5) Unless the railway servant who is
sanctioned an advance for the purchase of the conveyance completes the
purchase of and pays for the conveyance within one month of the date on which
he draws the advance, he shall refund forthwith the full amount of advance
drawn together with interest thereon for one month. Note-- (i) A
competent authority, may in exceptional cases, extend the period of one month
prescribed in this rule up to two months. (ii) Where a railway servant refunds the
full amount of the advance before the end of (iii) The conditions in this rule should
be mentioned in all sanctions for the advance. (6)
Penal interest Where the amount of advance is retained beyond one
month in contravention of the provisions in sub-para (5) above interest will
be charged in the manner indicated below : (i) The period of one month laid down in
clause (5) above should be a calendar month from (ii) For the first month or where the
period is extended by the competent authority for (iii) For period in excess of item (ii)
above, interest should be calculated on the balances GFR M.F. OM No. F-16(R)E/II(A)/73 (7)
Agreement and mortgage bonds—A railway servant shall, before he draws
an advance for the purchase of motor car executes an agreement on the forms
prescribed separately for initial purchase of conveyance and already
purchased conveyance as the case may be hypothecating the conveyance (motor car) to the President as security
for the advance. Note: Where only
advance is sanctioned, i.e. for the purchase of motor car or for payment of
the customs duty or where only one advance is sanctioned for both the
purposes of payment 2. Failure to execute mortgage bond in
time will render the railway servant to refund forthwith GIMF No. F. 16 (4) E-II (A) 64 dt.
4-1-1965 (8)
The sanctioning authority should discharge the responsibility of
scrutinizing the cash receipt to ensure that the advance has been utilized
for the purchase of the conveyance within the prescribed period and that the
actual price is not less than the amount of advance. (9)
A Railway servant who is on leave or about to proceed on leave and for
whom an advance for the purchase of motor car/motor cycle/scooter has been
approved, may be allowed to draw the advance at any time during the currency
of leave, if he receives the intimation regarding the availability of the
conveyance while he is on leave. G.I.M.F. (Swamy's Compilation of GFR) Note. Provisions of
this clause will apply to the railway servants who are on earned leave
including study leave but will not apply to those who are proceeding on
extraordinary leave for long periods. (Board's letter No. F (E) Spl. 80 Adv.
2/1 Rule 1104 (7) of IREM. (10) Recovery of advance—Recovery will
commence with the first drawal of pay after the advance is drawn. The
authority sanctioning the
advance may permit recovery to be made in lesser number of
installments if the railway servant so desires. The amount of interest will
be recovered in one or more installments each such installment being not
appreciably Note.—The amount to be recovered monthly
should be fixed in whole rupees except in the case of last installment when
the balance including any fraction of a rupee should be recovered. (11)
Except when a railway servant proceeds on leave other than leave on
average pay not exceeding four months, or retires from service or is transferred to an
appointment, the duties of which do not render the possession of motor
car/motor cycle/scooter necessary, the previous sanction of the Railway Board
or the General Manager, as the case may be, is necessary to the sale by the
railway servant of the vehicle purchased with the advance which with the
interest accrued has not been fully repaid. If the railway servant
wishes to transfer such a conveyance to another officer who performs the
duties of a kind that render the possession of a motor car necessary, the
sanctioning authority may permit the transfer of the liability attaching to
the vehicle to the latter officer, provided that he records a declaration
that he is aware that the vehicle transferred to him remains subject to the
mortgage bond and that he is bound by its terms and provisions. Rule 1104 (a) IREM (12) In all cases in which a conveyance
purchased out of the advance granted is sold before the advance with interest
accrued has been fully repaid, the sale proceeds must be applied, so far as
may be necessary towards the repayment of such outstanding balance provided
that when the conveyance is said only in order that another conveyance may be
purchased, the sanctioning authority may permit a railway servant to apply
the sale proceeds towards such (a)
the amount outstanding shall not be permitted to exceed the cost of
the new conveyance; (b)
the amount outstanding shall continue to be repaid at the rate
previously paid; (c)
the new car must be insured and mortgaged to government as required by
these rules Note : A fresh advance will not be
sanctioned to a railway servant who is permitted to (13)
An advance for the purchase of conveyance shall not be granted to a
railway servant who is under suspension and if an advance has already been
sanctioned to him before he was placed under suspension, he shall not
be permitted to draw such advance
during the period of his suspension. Rule 200 of GFR (14) The interest on advance mentioned in clause (5) of Rule 1104(A) above will be calculated by applying the following formula : (i) When principal is repaid in equal
installments from month to month: Interest = N(
N + 1 x X x
Y ) 2 12
100 Where n number of installment of repayment. X
amount of each installment of repayment r
rate of interest. (ii) When a portion of the principal is
paid in equal monthly installments and the balance is paid in lump sum:- interest n (a+1) x r
x l 2 100x12 Where n number of installments of
repayment including last installment of lump sum payment, l last balance for which interest is due r
rate of interest. (iii) Repayment is not regular : the
balance as outstanding or the last date of each month should be added up. Then interest total interest bearing balance into l x 1 x y 12 100 where r rate of interest. l last balance. Note : The Railway employee, who, having
applied for the advance for the purchase of a conveyance as admissible under
the rules could not be sanctioned such advance due to non-availability of
funds or in whose case due to anticipated delay in sanctioning the advance,
there is an obvious need for raising temporary loan to purchase the
conveyance, should obtain prior permission from the prescribed authority
under the relevant Conduct Rules applicable to him for raising a temporary
loan to meet the expenditure on the purchase of conveyance and if this
authority is different from the advance sanctioning authority, he should keep
the Rules (No. F(E) Spl/87 Adv|2|l dt.
26-3-1987). 1109.
ADVANCE ON PROCEEDING ON TOUR (1) A Head of Office may sanction to a
railway servant under his administrative control, who is required to proceed
on tour including a prolonged tour in the interior, an advance to cover his
personal traveling expenses for a period not exceeding 30 days as well as his
expenses on contingent charges arising out of the tour. (2) Advance under this rule to heads of Offices, who are not their own controlling officers may be sanctioned by the respective Controlling Officers. (3)
An Officer who is declared .o be his own Controlling Officer for the
purpose of Traveling Allowance may
sanction the grant of an Advance under this rule to himself. Note.—"Personal traveling
expenses" mean steamer, rail or air fare, incidental charges, road 1110.
An advance of Traveling Allowances to a temporary non-gazetted railway
servant may be sanctioned at the following scales: (i) At the scale applicable to permanent
staff on production of a surety from a permanent (ii) Limited to one months' pay without
insisting on surety, provided he has completed one GFR R. No. 231 1111.
The advance should be treated as final charges, not as an advance recoverable
and should be drawn and accounted for as contingent charges or traveling
expenses of establishment as the case May be. Rule 233 of GFR 1112. A second advance cannot be made to a
railway servant under this rule until an account has been given for the first. 1113. A railway servant under orders of transfer,
whether he is on duty or on leave when he receives the orders of transfer,
may be granted, under the sanction of General
managers /Secretary, Railway Board and the Heads of Offices/Projects
working directly under the Railway
Board or any Officer so authorized by them, an advance up to an amount not
exceeding one month's pay plus the traveling
allowance to which he may be
entitled under the rules, in consequence of transfer. The advances should be recorded on the
last pay certificate of the railway servant concerned. Note 1. Advances to railway servants on
transfer to Foreign service may be sanctioned by the 2. A permanent railway servant
officiating in higher post may be allowed on transfer advance of pay to the
extent of the pay that he is in receipt of immediately before transfer, or
the pay that he will be entitled to after transfer, whichever is less. 1114. The advance of pay may be allowed by the
competent authority mentioned in
the above paragraph to be drawn at the
new station, soon after the arrival of the railway servant, there on the
production of the last pay certificate showing that no advance had been drawn
at the old station. 1115. The advance of pay should be recovered from
the pay of the railway servant in three monthly installments beginning with
the month in which a full month's pay is drawn after the transfer. The amount of advance to be recovered
should be fixed in whole rupees, the balance being recovered in the last
installment. The advance of traveling allowance should 1116. A railway servant may be allowed a second
advance to cover the traveling expenses of any member of his family who
follows him within six months from the date of transfer and in respect of
whom an advance of traveling allowance has not already been drawn. 1117. When a single lump sum is drawn to cover
the traveling expenses both of the railway servant himself and his family, it
may be adjusted by the submission of more than one bill if it so happens that
the members of the family do not actually make or complete the journey with
him. In such a case, the railway servant should certify on each adjustment
bill submitted by him that a further bill in respect of the traveling
allowance of the member of his family (to 1118. Advance of pay on transfer can be granted
to a temporary non-gazetted railway servant on the scale applicable to the
permanent railway servants provided the railway servant
concerned produces surety from
a permanent railway servant not governed Note 1. No advance of .pay should be
sanctioned is respect of mutual transfers as such transfers are made at the
request of the railway servants concerned. 2. No advance of pay is to be granted in
case of temporary transfer. GFR Rule 222 1119. (A) Advances to railway servant proceeding
on deputation abroad—Railway servants proceeding on deputation out of India
for a period not less than one month may be granted an advance of a month's
pay recoverable in not more than three monthly installments. In the case of
temporary railway servants, surety from a permanent railway servant is
obtained before the advance is recommended. (B) Advance of pay to railway servants
on transfer abroad. (i) Railway servants who are transferred
from (a)
The advance of pay may be drawn
in Indian Rupees in (b)
The railway servants will not be allowed additional foreign
exchange on account of grant of
advance of pay for two months instead of one month. (c) Procedure for repayment of advances
to railway servants by a foreign employer. (i) Advance of pay to a railway servant
on his reversion from foreign service should be (ii) The competent authority should
refund the total amount of advance of pay to the foreign 1120.
ADVANCES ON RETURN FROM LEAVE OR DEPUTATION OUT OF A railway servant returning from leave,
other than leave on average pay not exceeding four months, on deputation out of India, may be granted
by the Financial Adviser and Chief Accounts Officers concerned an advance not
exceeding two months' substantive pay or Rs. l,000, whichever is less, provided
no advance has been drawn under the preceding paragraph. The advance
admissible under this rule on return from leave may be granted in addition to
any advance made in 1121. Such advances, as well as similar advances
made in 1122. Special passage advances made in 1123. Para 1123 and 1123(A) Natural Clamity Advance :The provisions stand deleted as the advance in this regard has been abolished by the Seventh Pay Commission. (Authority: Railway Board's letter No. E(G)2017/AD 1-1 dated 30/05/2017)1124.
Advances for treatment of Cancer—Railway servants drawing pay upto Rs. 900/-
p.m. (old) may be granted advances for the treatment of cancer on the terms
and conditions mentioned below :— (1)
The advances would be admissible only in cases where a railway servant
or a member (2)
The application for advance should be supported by a certificate from
the Medical (3)
The advances should not, in
any circumstances, be allowed in a case where treatment is being obtained at the
residence of the railway servant
or at the consulting (4)
The amount of the advance will in each case be limited to four months
pay of the railway servant concerned, or Rs. 500 or such other amount as the
medical officer-in-charge
of the patient
may recommend whichever is the
lowest. (5)
Not more than one advance should be granted in respect of the same
illness. (6)
The amount of the advance should be adjusted against the
subsequent claim for (7)
In the case of temporary railway
servant the grant of an advance under these orders (8) The term
'pay' for this purpose shall be as defined in Rule 2003 (21)-R.II. 1125. Advance of Festival (Abolished) ( Railway Board’s letter No 2016/E(LL)/FA/1 dated 14.12.2016) 1126. These advances will on payment, be
debitable to "S Deposits and Advances—Part III— 1127. Deleted - 1128. Advance for law suits.— (i) Advances may also be granted for the
conduct of law suits to which Government is a (ii) To enable the railway servant to
meet the expenses of his defense in proceedings instituted by a private party
against him in respect of matters connected with his official (iii) In a case where a railway servant
may be required to vindicate his conduct in a court 2. The advance shall not exceed Rs.
500/- or substantive pay for 3 months whichever (iv) If the Railway servant resorts to
Court with previous sanction of the government to (v) No second advance for the same
proceeding is admissible. (vi) The recovery of the advance will be
made in not more than 24 monthly installments. (vii) A temporary railway servant may be
sanctioned the advance on furnishing surety of [No. E(G)63-LL-2-49 dated 1-7-1969] 1129.
Advance for purchase of warm clothing to railway servants transferred from
the plains to hill Station—Group 'C and 'D' railway servants posted at hill
stations whether on first appointment or on transfer from the plains to a
hill station on a permanent or long terms basis (i.e. for a period of not
less than 12 months) may be sanctioned advances for the purchase of warm
clothing irrespective of the fact whether they belong to hill tracts or not,
subject to the following conditions :— (i) an advance for the purchase of warm
clothing is admissible only once in three years. The Notes :1.—To obviate the risk of the
advance being paid again during the stipulated period 2.—Railway servants transferred from the
plains to stations where Compensatory (Hill) Allowance is admissible can be
allowed advance for the purchase of warm clothing. (ii) The advance may be claimed only
during the first six months of the posting at a (iii) Recovery of the advance will be
made by deducting monthly installments equal to one-twelfth part of the
advance from the pay bill of the railway servant concerned. It will commence
with the first issue of pay after the advance is drawn. The authority sanctioning
an advance may, however permit, recovery to be made in a smaller number of
installment if the railway servant receiving the advance so desires. While
the amount of the last monthly installment need not be in whole rupees, the
amount of the other monthly installments should be in whole rupees. (iv) The authority competent to sanction
the advance will be the Head of Department or (v) The surety of a permanent railway
servant of comparable or higher status not governed by the Payment of Wages
Act should be obtained before the advance is sanctioned to a temporary
railway servant. (vi) In deciding whether a place should
be treated as a hill station for the purpose of the advance, the
classification made by the State Government concerned should generally be
followed. (vii) The advance and its recovery
should be adjusted under "Sec. O-Loans and Advances by the Central
Government—Loans to Government Servants—Other Advance". (NO.F (E)
Spl. 2008/ADV.2/2, dated 07/11/2008.)--acs
no. 205 1130.
1132.
Advance for (1) Eligibility—House building advance
may be granted to the following categories of railway servants :— (a) Permanent Central Govt. railway
servants; (b) Temporary railway servants with 10
years continuous service, provided the
sanctioning authority is satisfied that they are likely to continue in the
service of the railway till the house is completely built and mortgaged to
government and in addition happen to be in possession of a developed
plot of land on which construction
can immediately commence on receipt of the advance applied for; and they do
not hold a permanent appointment under the State Government. (c) Officers who belong to All India
Services of the category, viz. IAS, IPS, IES etc. who Note: —Post-military service of
ex-servicemen may be counted for reckoning 10 years to [No. F(E) Spl. 87/Adv./3/6 dated 31-3-1987]. (d) Railway servants covered under
Payment of Wages Act provided the sanctioning authority satisfies
himself in consultation with the
legal authorities that : (i) the total amount of deduction (including house-building loan recovery) in terms of Section 7(2) of the Payment of Wages Act are not likely to exceed the limits stipulated in Section 7(3) of the Act; and (ii) it is possible, in terms of Section
12(A) of the Act to effect recoveries of house building loan in the usual
manner laid down in the House Building Advance Rules. (e)
If both husband and wife are railway servants, advances is admissible
to one of them. Where' a house-site is owned jointly by husband and wife,
amount will be sanctioned only if both agree to mortgage the same to government. (f)
If both husband and wife are employed in Central/State Govt./semi
government or (g)
Railway servants under suspension may be granted the advance on furnishing
collateral security in the shape of mortgage bonds from two permanent railway
servants. (2) Conditions to be fulfilled (a)
Neither the applicant, nor the
applicant's wife/husband/minor child must be the (b) The floor area of the house to be
constructed or purchased must not be less than 22 sq. meters. However, this
minimum may not be insisted upon in case of flats/tenements and houses
the plan of which has been approved by the Municipality. [No. F(E)Spl.Adv.3/7 dated 10-8-1981]. (c)
Advance for ready built house or flat is admissible for outright
purchase only. (d)
The Railway servant will have to fill up the promissory note
prescribed in Board's (e) The applicant should not have
availed of any loan or advance for the execution of [No. F(S)Spl. 75/Adv. III/5(ii) dt.
12-9-1975]. (f) The Railway servant must ensure that
the cost does not infringe the cost ceiling limit. The administrative Ministry is satisfied
on the merits of the case may relax the cost ceiling up to a maximum 25% of
the cost ceiling prescribed from time to time in individual cases. [No. F(E)Spl. 87/Adv. 3/12 dt. 9-7-1987]. (3) Purposes for which Advance may be
granted An advance may be granted for :— (i) Acquiring a plot and constructing a
house thereon; (ii) Constructing a new house on the
plot already owned by the railway servant or jointly with his/her
wife/husband; (iii) Getting a plot under co-operative
schemes and constructing a house thereon where Rule 3 of Min. of (iv) Enlarging living accommodation in
an existing house owned by the railway servant in (v) Outright purchase of new ready built
house or flat from Government, semi government or local bodies, Housing
Boards, Development Authorities etc. and from private parties; (vi) Outright purchase from joint venture of Authorities/Boards etc. approved under HBA Rules and Registered Private Builders. Authority: Railway Board's letter No. (F(E) Spl. 2005/ADV 3/5
dated 30-11-2005) (vii) Purchase of flat under
"Self-financing housing Schemes" and "Co-operative Group
Housing Societies". In respect of self financing scheme the cost ceiling
will be taken as inclusive of land and development charges; (viii) Repayment of a loan taken from
government/private source for house construction, even if the construction of
the house has already commenced; (ix) The advance may be granted to
eligible railway servant for the construction of only the residential part of
a building on a shop-cum-residential plot situated in a residential colony,
subject, inter-alia, to the following conditions :— (a)
For the purposes of the ceiling of the overall cost of the house, the
cost of the land and the cost of the superstructure (s) including the shops)
and the proposed residential portion
will be taken into account. Applicants should therefore submit
the plans of the shop(s) and the proposed houses aid
the estimates for the shop(s) and the
proposed houses, separately for scrutiny by the Government; (b)
The railway servant should mortgage the entire property, viz., the
plot including the shops) and the proposed residential portion in favor of
the President of India. (c) The railway servant will have to insure the whole building, including the shop(s), against fire, lightning and floods, as laid down in these Rules. (x) For purchase
of house/flats from
private parties provided- (a)
the flat/house is new and unlived in: (b)
the flat/house shall have to be got evaluated by registered values and
arrangement for this and fee for the same will be paid by the applicants. (c) “Private parties include registered builders, architects, house-building societies but not the private individuals.” (Authority: Railway Board's letter No. (F(E) Spl. 2005/ADV 3/5
dated 30-11-2005) Note :—The conditions of 'new and
unlived in mentioned can be ascertained by the following :— 1. The number and date of the approval
of the building plan issued by the Municipal authorities by seeing the
original plan. 2.
The date of commencement of
the construction and the date of the plan of the house by scrutinising
the plan of certificate issued
by Municipal authorities. 3.
The bill and receipt issued by the Municipality; and 4.
Enquiries with neighbor, if necessary. No. F(E)Spl.
78 Adv. 3/10 dated (4) Quantum of “(a) The maximum limit for grant
of HBA is revised to 34 months of basic pay and dearness pay taken together
in place of the existing limit of 50 months of basic pay subject to a maximum
of Rs. 7.5 lakhs or actual cost of the house or the repaying capacity which
ever is the least, for new construction/purchase of new house/flat. (b) The maximum limit for grant of HBA for enlargement of existing house is revised to 34 months basic pay and dearness pay taken together in place of the existing limit of 50 months basic pay subject to a maximum of Rs. 1.8 lakhs or cost of the enlargement or repaying capacity, which ever is the least.” “(c) In the case of construction of a house in rural area, the amount of advance will in no case exceed 80% of the actual cost of land and construction of the house or the actual cost of enlarging the living accommodation. In the case where the house falls on the periphery of a town or a city, the amount of advance is not restricted to 80%.” (5)
RATES OF INTEREST : Existing rates of interest on House Building Advance is as under:—
(6) REPAYING CAPACITY : The repaying capacity of applicant
Railway servant will be computed as under :—
(Authority: Railway Board's letter No. (F(E) Spl. 2005/ADV 3/5 dated 30-11-2005) The additional interest of 2 1/2%
above the prescribed rates of interest laid down will not be taken into
account for the purpose of computing the repaying capacity. (7)
COST CEILING LIMIT : The existing cost ceiling limits will be
readjusted asunder:— The Cost ceiling limit is revised to 134 times the basic pay and dearness pay taken together in place of the existing limit of 200 times the basic pay subject to a minimum of Rs. 7.5 lakhs and a maximum of Rs. 18 lakhs. (Authority: Railway Board's letter No. (F(E) Spl. 2005/ADV 3/5
dated 30-11-2005) Where the Administrative Ministry is
satisfied on the merits of the case, they may relax the cost ceiling up to a
maximum of 25% of the prescribed cost ceiling in individual cases. Notes :1. In case of 'Self-financing
scheme' the ceiling shall include the cost of land and development charges. [No. F(E)Spl.83 Adv.3/2 dt. 27-5-1983]. 2.
For enlargement of house ceiling shall include the cost of existing
house and proposed enlargement. [No. F(E)Spl.81/Adv.3/2 dt. 7-12-1981]. 3.
In case of Development Authority flats, the cost ceiling limit will be
the cost at the [No. F(E)Spl.82/Adv.3/2 dt. 26-4-1982]. (8) Disbursement and Security (a) (1) An advance required partly for
the purchase of land and partly for constructing a single stroreyed new house
or enlarging living accommodation in an existing house shall be paid as
follows :— (i) An amount not exceeding 40
per cent of the sanctioned advance will be payable to the (ii) An amount equal to 30 per cent of
the balance of the advance will be payable to the applicant on his mortgaging
in favor of the Government the land purchased by him along with the house to
be built thereon where such mortgage is permitted by the terms of the sale of
land. In cases where the terms of sale do not vest the title in the purchaser
till a house is erected on the land, the applicant shall execute an agreement
with the Government, in the prescribed form agreeing to mortgage the land,
together with the house to be built thereon as soon as the house had been
built and the title to the property is complete. (iii) An amount equal to 30 per
cent of the amount remaining after deducting from the (iv) Deleted(Authority: Railway Board's letter No. F(E) Spl. 2005/ADV 3/5 dated 30-11-2005) (2) An advance required only for
constructing a new house on a plot of land already owned by the applicant or
enlarging living accommodation in an existing house shall be paid in two
installments as under : (i) 50% of the sanctioned advance will
be payable to the applicant on his mortgaging, in favor of the Govt., the
land purchased by him along with the house to be built thereon and on
furnishing a personal bond. In cases where the terms of sale do not vest
title in the purchaser till a house is erected on the land or otherwise the
applicant shall execute an agreement with the government and shall furnish a
surety bond in the prescribed form, agreeing to mortgage the land together
with the house to be built thereon, as soon as the title to the property is
completed, along with other prescribed documents. (ii) Remaining 50% of the sanctioned
advance will be payable when the house has reached (iii) The competent authority should
satisfy themselves that the employee actually uses (iv) Other terms and conditions relating
to grant/recovery of (3) An advance required partly for the
purchase of land and partly for constructing a double-storeyed new house or
enlarging living accommodation in an existing house shall be paid as follows
:— (i) An amount not exceeding 30
per cent of the sanctioned advance will be payable to (ii) An amount equal to 35 per
cent of the balance of the advance will be payable to the applicant on his
mortgaging, in favour of the Government, the land purchased by him along with
the house to be built thereon, where such mortgage is permitted by the terms
of the sale of land. In cases where such mortgage is not permitted, the
provision as contained in the last sentence of sub-Rule (8)(a),
(i)(ii), will apply. (iii) An amount equal to 35 per cent
of the amount remaining after deducting from the sanctioned amount of
the advance, the installment given for the purchase of land, will be payable
when the construction of the house has reached plinth level (iv) Deleted(Authority: Railway Board's letter No. (F(E) Spl. 2005/ADV 3/5 dated 30-11-2005) (v) Deleted(Authority: Railway Board's letter No. (F(E) Spl. 2005/ADV 3/5
dated 30-11-2005) (4) An advance required only for
constructing a double-storied new house or enlarging living (i) An amount equal to 50 per
cent of the sanctioned advance will be payable to the applicant on his
mortgaging, in favor of the Government, the land purchased by him along with
the house to be built thereon, where such mortgage is permitted by the terms
of the sale of land. In cases where such mortgage is not permitted the
provisions as contained in the last sentence of sub-Rule (8) (a)(2)(i)
will apply. (ii) A further amount not exceeding 50
per cent of the sanctioned advance will be payable (iii) Deleted ( Railway Board's letter No. (F(E) Spl. 2005/ADV 3/5 dated 30-11-2005) (iv) Deleted (Railway Board's letter No. (F(E) Spl. 2005/ADV 3/5
dated 30-11-2005) (5)
An advance required for purchasing a ready built house shall be paid
as follows :— The Head of the Department may sanction
the payment of the entire amount required by, and admissible to, the
applicant in one lump sum on the applicant's executing an agreement in the
prescribed form for the repayment of the loan. The acquisition of the house
must be completed and, the house mortgaged to Government within 3 months of
the drawal of the advance, failing which the advance, together with the
interest thereon, shall be refunded to (6) An advance required for purchase/construction
of a new flat shall be paid as follows : (a) The Head of the Department may
sanction the payment of the amount required by and admissible to the
applicant, on the applicant's executing an agreement in the prescribed form
and comply with the provisions contained in sub-rule (8)(b)(2) for the
repayment of the loan. The amount may either be disbursed in one lump sum or
in suitable installments at the discretion of the Head of the Department. The
amount so drawn or the installment/s so drawn by the applicant shall be
utilized for the purpose for which it was drawn within one month of the
drawal of advance or the installment/s failing which the advance or part of
the advance so disbursed together with interest thereon shall be refunded to
Government forthwith, unless an extension of this time-limit is specifically
granted by the Head of the Department. (b) (1) In addition to their executing
the agreement/mortgage deed referred to in sub-para (a) above, the following
three categories of applicants shall also be required to furnish the surety
of an approved permanent Central Government servant in the prescribed form
before the sanctioned advance or any part thereon is actually disbursed to
them: — (i) all applicants who are not permanent
Railway servant; (ii) all applicants who are due to
retire from service within a period of 18 months following the date of
application for the grant of an advance; (iii) all applicants who are permanent
Railway servants but not covered by sub-para (ii) (b) (2) In addition to the compliance
with the provisions contained in sub-Para (a) and (b)(i), the applicant for
constructing or purchase of ready-built flats should furnish adequate
collateral security as laid down under Rule 274 of the Compilation of the
General Financial Rules (Revised and Enlarged) 1963, to the satisfaction of
the Head of the Department, wherever the land on which the flats stand is not
mortgaged by the owner of land in favor of the President of India as a
security towards repayment of the advance. Notes : (i) The liability of the surety
will continue till the house built/purchased is mortgaged to Government or
till the advance together with the interest due thereon is repaid to
Government, whichever happens earlier. (ii) Utilization of the advance for a
purpose other than that for which it is sanctioned shall render the
Government servant liable to suitable disciplinary action under the RS
(D&A) Rules, 1965 or under any other rules of service applicable to
the Government servant. He (9) TIME LIMITS FOR UTILIZATION OF THE
ADVANCE. (i) In the case of purchase of land :
The land should be purchased and the mortgage deed (ii) In the case of purchase of house :
Acquisition of the house with the advance sanctioned and mortgage of the same
to the government should be completed within 3 months of receipt of the
advance amount. However, extension of time limit may be granted by the
sanctioning authority depending on the circumstances as explained by the
loanee. (iii) In the case of
purchase/construction of new flat : The railway servant should utilize the (10) INTEREST (i) The advance carry
simple interest at the rate prescribed from time to time from the date of
payment of the first installment or lump sum as the case may be and is
calculated on the balance outstanding on the last day of each month. (ii) While issuing the sanction for
grant of advance, sanction should invariably stipulate a higher rate of
interest at 2½% above the prescribed rates with the stipulation that if
condition attached to the sanction, including those relating to recovery of
amounts, are fulfilled completely to the satisfaction of the competent
authority, rebate to the extent of 12½% will be [No. F(E)Spl.87/Adv. 3/5 dated
27-4-1987]. (11)
Construction, Maintenances, etc.— (a) The construction of the house or
additions to living accommodation in an existing house, as the case may be,
shall be— (i) carried out exactly in accordance
with the approved plan and specifications on the basis of which the amount of
the advance has been computed and sanctioned. The plan and specifications must not be departed from without
the prior concurrence of the sanctioning authority. The railway servant shall
certify, when applying for installments of advance admissible at the plinth/roof level, that
construction is being carried out strictly in accordance with the plan and
estimate furnished by him to the Government of India, that the construction
has actually reached plinth/roof level, and that the amount already drawn has
actually been used on the construction of the house. The Head of Department
may, if necessary, arrange to have inspections carried out to verify the
correctness of the certificates. (ii) completed within 18 months of the
date on which the first installment of the advance is paid to the railway
servant concerned. Failure to do so will render the railway servant liable to
refund the entire amount advanced to him (together with interest thereon)
calculated as in sub-paragraph (10) above in one lump sum. In those cases
where the work is delayed due to circumstances beyond his control an
extension of the time-limit may be allowed up to one year by the Head of
Department and for longer period by the Ministry of Urban Development. The
date of completion must be reported to the Head of the Department concerned
without delay. (b) Immediately on completion or purchase
of the house, as the case may be, the railway servant concerned shall insure
the house, at his own cost, for a sum not less than the amount of the advance
and shall keep it so insured, against damage by fire, flood and lightning,
till the advance is fully repaid to Government. A certificate to the effect
that the house has been insured shall be furnished to the sanctioning
authority. Note—Heads of Departments are also
required to obtain a certificate annually in the month (c)
The house must be maintained in good repair at his own cost by the
railway servant concerned. He shall also keep it free from all encumbrances, and shall continue
to pay all the Municipal and other local rates and taxes regularly until the
advance with interest has been repaid to Government in full. The railway
servant shall furnish an annual certificate to this effect to the Head of
Department. Note-Furnishing a false certificate will
render the railway servant concerned liable to suitable disciplinary action
under the rules. He may also be called upon to refund to Government
forthwith, the entire advance drawn by him together with interest accruing
thereon in accordance with para 1132(5). (d)
After the 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 with interest has been repaid in full. The railway servant
concerned shall afford necessary facility for these inspections to the
officers designated for the purpose. (12) Repayment of the Advance (a) The advance granted to a
railway under these paragraphs together with the Note—1. The amount to be recovered
monthly shall be fixed in whole rupees, except in 2.
Recovery of advance granted
partly for purchase of land for constructing a new house or enlarging
living accommodation in an existing house shall commence from the pay of the
month following the completion of the house or the pay of
24th month after the
date on which the first installment of the advance for
purchase of land is paid to the railway servant, whichever is earlier. 3.
In the case of advances taken for purchasing a ready built house
recovery shall commence from the pay of the month following that in which the
advance is drawn. Recovery of advance granted for construction of a new house
or enlarging living accommodation in
an existing house shall commence from the pay of the month following the
completion of the house or the 4. In order to avoid undue hardship to a
railway servant who is due to retire within 20 years of the date of
application for the grant of an advance and under the previous rules
applicable to him is eligible for the grant of a gratuity or
death-cum-retirement gratuity, government contribution and or special
contribution in the case of subscriber to S.R.P.F. (contributory), 5.
In case the railway servant does not repay the balance of the advance due to Government on or before
the date of his retirement, it shall be open to Government to enforce the
security of the mortgage at any time thereafter and recover the balance of
the advance due together with interest and cost of recovery, by sale of the
house or in such other manner as may be permissible under the Law. 6.
The date of retirement for the
purposes of this rule may normally be taken as 60 (b)
Recovery of advance shall be effected through the monthly
pay/leave salary/subsistence
allowance bills of the railway servant concerned by the Head of the
Office or the Accounts Officer concerned, as the case may be. The recoveries
will not be held up or postponed except with the prior concurrence of the
Railway Board. In the event of subsistence allowance payable being reduced on
prolonged suspension of the railway
servant the recoveries may be suitably (c)
If a railway servant ceases to be in service for any reason other than
normal retirement/superanuation, or if
he/she dies before repayment of the
advance in full, the entire outstanding amount of the advance shall become
payable to Government forthwith. The Railway Board may, however, in deserving
cases permit the railway servant concerned, or his (d) The property mortgaged to Government shall be reconvened to the railway servants concerned (or his successors in interest, as the case may be), after the advance together with the interest thereon has been repaid to Government in full. (e) Railway servants who are granted advance for the construction of
house (including acquisition of suitable land for the purpose) do not find themselves
in a position to undertake the actual construction of the house after they
have drawn the first instalment of loan and purchased the plot of land for (i) As soon as it becomes known that due
to circumstances beyond the control of the (ii) In cases where the Ministry or Head
of the Department is satisfied that the individuals concerned are not in a
position to pay back the loan amount due in one instalment, they may permit
at their own discretion the recovery of the amount and the accrued interest
in suitable installments each of which should not be less than 33 per cent of
the individuals basic pay a further condition should be imposed to the effect
that if the plot of land purchased by the individuals is sold out by him, the
sale proceeds should first be utilized to clear off the amount due to
Government on the date, of sale in one lump-sum. (f) The railway servant who dies before
repaying the advance availed of by him under the house building advance Rules
and in whose case 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
advance thus adjusted against death-cum-retirement gratuity beyond the date
of death of the railway servant. (13) Procedure for Dealing with Applications (a) Applications should be submitted by
the railway servants to the Head of Department in prescribed Form through
proper channel. The following documents should accompany the applications :— (i) a declaration in regard to house
property, if any, owned by the applicant or the (ii) If the advance is required for
enlarging living accommodation in an existing house, an attested copy of the
sale-deed as well as of other documents, if any, establishing that the
applicant possesses indisputable title to the property in question. A site
plan should also be furnished. (iii) In cases where applicants happen
to be in possession of land and desire to build a (iv) In cases, where the applicant
desires to purchase land, an attested copy of a letter (v) In cases where the applicant desires
to purchase a flat, an attested copy of a letter from the seller of the fiat
to the effect that subject to settlement and payment of the price, he is in a
position to hand over the vacant possession of a clearly distinguishable flat
to the applicant within a period of two months from the date of his letter,
may be forwarded. (b)
The Heads of Departments will scrutinize the application and satisfy
themselves of the correctness of the facts, etc. stated therein.
They will also examine the title deeds, etc.
furnished in compliance with clauses (ii) and (iii) above (in consultation with their Law Officers and
the Revenue and Registration authorities, if necessary) to make sure that "It is certified after
investigation from the records of the Sub-Registrar............and the
relevant revenue and court records and from the information gathered from the
sworn declaration made by .............. and ................... that the plot No
...........measuring..............
sq. yds. at ......within the
limits of..........is the absolute property of Shri............s/o Shri...... The said property is free from
encumbrances and attachments and Shri
...................... Note : The expenditure incurred by the
Railway servants for obtaining certificates from the (c)
The Head of Dept. will examine the applications, with reference to the
priorities etc., if any laid down for dealing with them. Subject to funds
being available, the applications will be returned to the Heads of
Departments concerned indicating — (i) the amount of advance that may be
sanctioned by the Head of Departments where (ii) the monetary limit up to which the
grant of an advance could be considered in due (d) On the approval of the Government:— (i) formal sanction to the grant of an
advance in the cases covered by sub-paragraph (c) (i) above will be accorded.
The Head of the Department shall also arrange to complete the prescribed
formalities such as execution of the Agreement, Mortgage, Deed, Surety, Bond,
etc. in the prescribed forms (in consultation with appropriate legal
authorities, where necessary) and then authorize disbursement of an
appropriate amount out of the sanctioned advance (ii) The Heads of Department -shall
instruct applicants desirous of constructing a new (e)
The Head of Department shall also attend to all formalities as
explained in sub-paragraph (d) (i) above, and then authorize disbursement of
the first installment of advance for
construction purposes to the applicant. The payment of the remaining
installments of advance may be authorized by the Head of departments direct
on the basis of certificate to be furnished by the applicants as prescribed
in subparagraph (8) (a) and such inspections at may be deemed
necessary. It should also be
verified, before disbursing the last installment of the advance, that
development of the site has been completed. (f)
The Head of the Department shall also ensure that the
transaction/construction of the house
is completed within the period prescribed in the Rules, and that — (i) in cases of advances required partly
for purchase of land and partly for constructing a single storied new house
or enlarging living accommodation in an existing house (excepting cases
involving enlargement of living accommodation in existing houses), the
agreement in the prescribed form is duly executed by the Railway servant
concerned before disbursement of (ii) in cases of advance required for
construction of additional accommodation on first (iii) In case of advances required for
purchasing a ready-built house, and in cases where the terms of sale of land
do not vest the title in the railway servant till a house is erected on the
land, the agreement in the prescribed form is executed and deposited with the
Head of the Department before disbursement of the sanctioned advance or any
portion thereof. Immediately on purchase of the house or immediately after
vesting of the title in favor of the railway servant on erection of the
house, the mortgage deed in the prescribed form shall be executed and
registered in the office of the Registrar of Assurances. The registered deed,
together with the original document of title to the land/house, shall be
deposited with the (iv) in cases where the applicant is
required to furnish the surety of an approved permanent railway servant's
surety, bonds in the prescribed form are furnished by approved permanent
Railway servants before disbursement of the sanctioned advance or any portion
thereof; (v) In all the aforesaid cases, the
railway servant establishes his marketable title to the property in
accordance with procedure prescribed by the Government before execution of
the mortgage deeds. In cases where the terms of sale do not vest the title to
the land in favor of the railway servant till a house is erected on the land,
it shall be ensured, before execution of the agreement in the prescribed form
that the railway servants will be in a position to acquire (vi) mortgage deed (and reconveyance
deed on release or reconveyance of property (vii) the house is insured in the manner
indicated in these rules immediately on its purchase/completion and that the
premium receipts are regularly produced for inspection; (viii) the house is maintained in good
repair and that the necessary insurance premia and (ix) monthly recovery of installments of
repayment of the advance commences from the (x) in the case of railway servants
likely to retire within 18 months of the date of their application for the
advance, the amount of their Gratuity will be adequate to cover the (xi) any amount drawn in excess of the
expenditure incurred is refunded by the railway (xii) the property mortgaged to
Government is released or reconvened immediately on the (14) INSURANCE OF THE HOUSE/FLAT (i) Immediately on
completion or purchase of house/flat, as the case may be, the railway servant
to whom a house building advance has been granted, shall insure the
house/flat at his own, cost for a sum not less than the amount of advance,
with any of the four Nationalized General Insurance companies of their
choice, irrespective of its location in India.
(Authority: Board's letter No. F(E)SpI.2007/ADV./3/5 dated
5.9.2007 & 07-12-2007) (iii) With a view to ensuring that all
houses constructed /purchased with the help of house building advance granted
by Govt. are properly secured by insurance, the Heads of Departments will obtain a certificate in
the prescribed form annually in the month of July before disbursement of the
pay for the month of June from each and every Govt. servant (Authority: Railway
Board's letter No. (F(E) Spl. 2005/ADV 3/5 dated 30-11-2005) (15) Recovery of Advance from
railway servants permanently absorbed in Public Sector Undertaking/Central
autonomous/statutory bodies where pension scheme is in operation : (i) Since on the date of absorption of a
railway servant in an autonomous body, the Government will discharge its
pensionary liability etc. by paying in. one lump sum, the amount of outstanding
amount of House Building advance along with interest shall be deducted out of
the total amount payable by the Government to the concerned railway servant
who is being absorbed in the autonomous body. (ii) Thereafter, if any balance is
outstanding against the employee, it will be recovered in installments 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 the
advance including interest thereon in monthly installments from the employee
and remit it to the Accounts Officer concerned on the Railway who may watch
its recoveries. (Board's letter No. F(E) Spl. 80 Adv
3/11 dt. 17-10-86). (16) Procedure in case of railway servants death/cessation from service
before repayment of the advance : (i) When a railway servant ceases to be
in service or dies before repayment of the advance, the entire outstanding
amount of the advance become repayable to government forthwith. In the event
of death, in deserving cases the successor-in-interest of the, deceased
railway servant are allowed to repay the outstanding amount together with
interest thereon in suitable installments on execution of a
surety bond by the successor-in-interest binding a permanent railway servant
to ensure repayment of the outstanding amount of the advance in the
prescribed form. (Board's letter No. F(E) Spl. 86/Adv.3/5
dt 28-5-1986). (17) In case of failure to repay the advances : If the railway servant fails to repay the balance of advance on or before the date of retirement, Government shall enforce recovery from the death-cum-retirement gratuity and by sale of the house or in any other manner as considered necessary. (Authority: Railway Board's letter No. (F(E) Spl. 2005/ADV 3/5
dated 30-11-2005) *********----------------------******* |
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