House Building Advance Rules 2017 – 7th Pay Commission HBA Order

| May 17, 2018

House Building Advance Rules 2017 – New rules set in supersession of old Rules

House Building Advance Rules 2017 – 7th Pay Commission HBA order – Ministry of Housing and Urban Affairs OM dated 09.11.2017


Government of India

Ministry of Housing & Urban Affairs

Housing-III Section

Nirman Bhawan, New Delhi,

Dated 09.11.2017


Subject: House Building Advance Rules (HBA) — 2017.

The following House Building Advance Rules is in supersession of existing rules on the subject:

1. 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 the Ministry of Housing & Urban Affairs (erstwhile Ministry of Urban Development). These rules are as under:

2. 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 spouse, either jointly or individually.

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.

viii. Existing employees who has already taken Home Loans from Banks and others Financial Institutions are allowed to migrate to this scheme , subject to fulfillment of extant conditions.

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

3. 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  and North East Frontier Agency.

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,

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 are both eligible for grant of House Building Advance, the advance will be admissible to both of them jointly/ separately.

4. Cost Ceiling Conditions –

l.      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.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.

5. 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.

Category: Seventh Pay Commission

About the Author ()

Comments are closed.