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Thursday, October 14, 2010


D.G. Posts F. No. 12-03/2010-PAP dated 30th September, 2010.

The undersigned is directed to forward herewith a copy of the Ministry of Urban Development (Housing-III Section), New Delhi, OM No. I-17011/2/\(1)/2009-H.III dated 14th July,2010 on the subject cited above, for kind information and further necessary action.


(K. Ramesawara Rao)

Asstt. Director General (Estt.)

Copy of OM No. I-17011/2/\(1)/2009-H.III dated 14th July,2010 from Ministry of Urban Development (Housing-III Section) , New Delhi.

Sub: Interest bearing advance /Sixth Central Pay Commission recommendation on House Building Advance-enhancement in past – regarding

The undersigned is directed to invite attention to this Ministry's O.M. No. 1-17011/11(3\4)/2008-H.III dated 27th November, 2008 on the above subject and to say that it has been decided in consultations with Ministry of Finance to make the afore-said orders applicable with effect from 1st January, 2006. Accordingly, an enhancement of House Building Advance, if applied for, may be granted for an amount equivalent to the difference between the previously sanctioned amount and the new amount determined on the basis of pay in the pay band, in past case, where HBA was sanctioned on or after 1-1-2006 but before 27-11-2008 subject to complying following conditions:

(a) The Government servant 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 O.M. No. 1-17015/16/92-H.III. dated 17.10.2000. It should be ensured that the entire amount of advance with interest is recovered before retirement on the Government servant.

(e) Rate of Interest: The rate of interest chargeable in such cases would be as per the slab applicable to the total sanctioned amount i.e. amount already sanctioned on or after 1-1-2006 but before 27-11-2008 plus the enhanced sanction. 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 sanction 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. 7.50 lakh for the purpose of construction /purchase of new house /flat and Rs. 1.80 lakh would remain unchanged. In other words, the sum total of previously sanctioned HBA and the enhancement granted under these orders cannot exceed the aforesaid limits. In nay case, not more than one enhancement is admissible to Govt. employees.

3. The applications for enhancement HBA should be submitted within six months from the date of issue of this order.

4. Ministries/Departments whose branch offices are situated in the far flung areas like in case of Ministry of Defence, etc., are advised to give wider publicity to these orders through modern communication means like facsimile, e-mail, web-site, etc. so that there is no occasion for any representationfor extending the time limit of six months on the grounds of receiving these orders late.


(V.K. Gupta)

Deputy Financial Adviser

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