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Chapter 11

November 20, 2011

CHAPTER XI

ADVANCES  

1101. Rules governing the grant of various� Advances and withdrawals permissible to railway servants from the Consolidated Fund of India and Provident Fund are given in the Indian Railway Administration and Finance and Indian Railway Establishment Code Vol. I respectively. Details regarding the grant of advances from the Consolidated Fund of India are given below for guidance.

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 India.

(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 Para 1102.

1104. General Conditions for grant of Advance for the purchase of Motor Car/Motor Cycle/ Scooters/Moped

(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.

Rule 196 of FR (Civil Services)

(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 ����Rule 1303(FR. 9)(21)(a)(i)/R-II (Sixth Edition).  

Note : In the case of a Government/Railway servant who has not opted for the revised scale  of pay in terms of the Railway Services (Revised Pay) Rules, 1997, ‘Pay’ for the purpose of these rules shall mean basic pay as drawn in the existing scale and shall include  Dearness Allowance upto AICPI 1510 and Interim Relief I & II as were admissible as on 31-12-95.  

(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) —acs no.207

1105. Purchase of Motor Car�(1) Amount of Car Advance�The total amount of advance which may be granted to a Government/Railway servant for the purchase of a motor car for the first occasion shall not exceed Rs.1,80,000/- (Rupees one lakh eighty thousand) or eight  months basic pay and dearness pay of the Government servant taken together  or the anticipated price of the Motor-car to be purchased by the Government/Railway servant, whichever is the least. If the actual price of the Motor- car purchased by the Govt./Railway servant is less than the amount of advance, then he shall refund the balance to the Government forthwith.

The quantum of advance that may be granted on the second or subsequent occasions for the purchase of a Motor- car shall not exceed Rs. 1,60,000 (Rupees one lakh sixty thousand) or eight  months basic pay and dearness pay of the Government servant taken together  or the anticipated price of the motor car to be purchased whichever is the least.

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 but if desired to draw the advance�� for motor car.

(b)�� where he disposes of his motor car in India prior to his posting/deputation/training abroad lasting more than one year and return to Indiawithout a motor car.

(c)� where he is appointed to a regular post abroad and does not take his�� motor�� car along with him.

Note. 1 The world “price” used in the above sub rules includes the Registration money paid for in advance by the Government/ Railway Servant to the dealer while booking for the new car and which is later adjusted by the dealer on allotment/delivery towards the price of the new car.

2�Where a Government/Railway servant desires to keep two vehicles of different types i.e. a Motor Car and a Motor Cycle/Scooter and has purchased one type of vehicle with the advance drawn from the Government/Railway and wants to have advance for purchasing a different types of vehicle, he may be sanctioned the same under the provisions already existing in Indian Railway Establishment Manual, as amended from time to time, without being required to sell the previous vehicle, provided he repays the outstanding amount of advance with interest before drawing the fresh advance. An advance given in such a case will be treated as second advance.

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 bandand who are otherwise not eligible for grant of Computer Advance under existing provisions.

(Authority Board’s� letter NO. F(E)SPL. 2008/ADV.2/4 dated 26-02-2009) —acs no.207

 

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 beused 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. (1)�� The amount�� of�� such advance for the first occasion shall not exceed Rs. 30,000/-(Rs. thirty Thousand )or or four months basic pay and dearness pay taken together,�  or the anticipated price of the motor cycle/scooter/moped, whichever is the least.

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.

(Authority Board’s� letter NO. F(E)SPL. 2008/ADV.2/4 dated 26-02-2009) —acs no.207

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  restricted to the anticipated price inclusive of sales tax of the bicycle. If�� the�� actual price of the bicycle paid by the Government/Railway servant is less than the amount of  advance sanctioned, he shall refund the balance to the Government forthwith.  

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 exceeding twenty-five.    

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 advance during the last two years.

(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 later adjusted by the dealer on allotment/delivery to-wards the price of the new car.

(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 the month in which it was drawn, the interest may be recovered for the actual period the advance was retained by the railway servant.

(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  the date of drawl of the advance.

(ii) For the first month or where the period is extended by the competent authority for such extended period, on the amount of advance at the rate applicable.

(iii) For period in excess of item (ii) above, interest should be calculated on the balances outstanding for the actual period in excess of one month (including fraction of a month) or where the period is extended by the competent authority in excess of such extended period and not on the monthly balances, at the higher rate stipulated.

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 for motor car and payment of customs duty, the mortgage bond should be executed in Form Prescribed. Where an advance for the payment of customs duty is sanctioned after the motor car has been purchased with an earlier advance, a bond in the prescribed should be executed.

2. Failure to execute mortgage bond in time will render the railway servant to refund forthwith the whole of the amount of advance with interest accrued thereon.

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. OM No. F (23) I-E-II (A)/76 dt. 5-1-1977

(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 dt. 26-9-1980.).

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 greater than the installments by which the principal was recovered.�� The recovery of interest will commence from the month following that in which the whole of principal has been repaid.

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 purchase subject to the following conditions :�

(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 sell his old car/motor cycle scooter in order to purchase a new until the outstanding balance of the advance in respect of the old conveyance together with interest thereon has been fully repaid.

(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           100×12

Where n number of installments of repayment including last installment of lump sum payment, a� amount of principal.

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   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 advance sanctioning authority informed of the permission obtaining under the Conduct

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 kilometerage and Daily Allowance for a period not exceeding thirty days in cases falling under this rule and for a period not exceeding six weeks in cases of railway servant who is required to proceed on tour to places in the interior or to places which are difficult of access.

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  railway servant not governed by Payment of Wages Act; and ��

(ii) Limited to one months’ pay without insisting on surety, provided he has completed one year of service and is not likely to be discharged within 3 months from the receipt of advance. –

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.

A railway servant who has taken an advance under this rule may not take payment of� traveling allowance or other bills drawn in respect of the same journey while the advance or any portion of it remains unadjusted.

  ADVANCES ON TRANSFER 

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 authorities that are competent to sanction the transfer. The reimbursement of the advance to Government by the Foreign Employer should be made in a lump sum by sending a Cheque or Demand Draft in favor of the Accounts Officer in whose books the advance is originally booked.

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 be recovered, in full, on submission of the railway servant’s traveling allowance bill.

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 be specified) who have not yet completed the journey will be submitted in due course and is expected�� to include an amount not less than the balance of the advance left unadjusted in that bill.

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 by the Payment of Wages Act, provided also that the circumstances of a case warrant the advance being sanctioned.�� Temporary railway servants with�� three years service or more need not be required to produce a surety.

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 India to posts abroad or from a post in one country to a post in another country abroad may be permitted to draw, at the time of their transfer, an advance upto an amount not exceeding two months’ pay. This will not apply in cases of transfer from abroad to India. The amount of advance will be determined on the basis of the officer’s pay which he is in receipt of immediately before transfer or the pay that he will be entitled to after transfer whichever is less. The recovery may be made in not more than 6 equal monthly installments in the case of advance of 2 months’ pay. In respect of an officer drawing only one month’s advance of pay recovery may be made in not more than 3 equal monthly installments.

(a)� The advance of pay may be drawn� in Indian Rupees in India, in Sterling in the U.K. in local currency of the country of previous or new assignment or in any�� other�� soft�� currency�� in�� a neighboring country from which essential goods are to be imported.

(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  granted by the foreign employer only after consultation with the authority competent to sanction the transfer of the railway servant to foreign service.

(ii) The competent authority should refund the total amount of advance of pay to the foreign employer by means of a bank draft on account of repayment of the advance, immediately on receipt of a demand from the Foreign Employer duly supported by the Cash receipt obtained from the officer concerned at the time of the payment of the advance. The recovery of the advance should be watched in the manner as in the case of advance of pay sanctioned to a railway servant under paragraph 1006-G.

1120. ADVANCES ON RETURN FROM LEAVE OR DEPUTATION OUT OF INDIA. 

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 England.

1121.� Such advances, as well as similar advances made in England, should be recovered in�� monthly installments of one-third of pay fixed in whole rupees. The recovery of an advance made under the Military Leave Rules to a military officer in civil employment subject to the Military Leave Rules is regulated�� by those rules. ��

1122.� Special passage advances made in England by the High Commissioner for India at his discretion to enable railway servants to return to duty will be recoverable in thirty-six monthly installments and bear interest at the rate prescribed for such advances.

1123.� Advances under special circumstances�The general Manager may sanction an advance�� of one month’s pay to non-gazetted railway servants under very special circumstances e.g. if the railway servants camp is burnt, or if serious damages are caused�� to his belongings due to floods, etc. such an advance must be recovered in three equal monthly installments beginning with the month in which a full month’s pay is drawn after drawal of the advance.

(A) Advance in cases of natural calamities of exceptional severity.�After the Government have declared a particular natural calamity as one necessitating the grant of the concession of an advance of pay, it may be sanctioned by the General Managers concerned provided the application is made in this prescribed Form (Form No. 102-Estt. Forms) (No. E(G)80 AD 1-12 dated 3-6-1981) subject to the following conditions :�

(i) The advance is admissible only to non-gazetted railway servants whose property movable or immovable has been substantially affected or damaged by the natural calamity.

CS No. 115 under E(G)78 AD 1-12 dt. 7-12-1978

(ii) The advance will be interest-free and will be repayable in not more than twenty-four equal monthly installments commencing from the second issue of pay after the drawal of the advance.

(iii) The maximum amount of the advance should not exceed three months pay of the railway servants, or Rs. 500/- whichever is less.

(iv) In the case of a temporary railway servant, surety from a permanent railway servant not governed by the payment of wages Act should be obtained before the advance is sanctioned.

(v) Normally a second advance on this account should not be sanctioned if an earlier advance for the same purpose remains unadjusted. If, however, the grant of a second advance become necessary, the quantum of the second advance plus the outstanding balance of the first advance should not exceed the limit prescribed in clause (iii) above.

(vi) No sanction to an advance under these orders should be accorded to a railway servant who fails to apply for the relief within three months of the issue of the Government orders.

(vii) This advance will not be in addition to the advance of one month’s pay admissible under the preceding paragraph. If a railway servant has already been sanctioned an advance of one month’s pay for the same calamity, it would be adjusted against the amount of the advance sanctioned under this paragraph.

These advances are debitable to “S-Loans and Advances by the Central Government-Loans to Government servants-Other advances.”

(viii) A railway servant applying for a natural calamity advance shall also be required to give a declaration showing the details of the movable and immovable property damaged due to the natural calamity along with his application. In case the declaration given by him is not found true at any stage, he shall be liable to disciplinary action in terms of Rule 6 of DAR-1968. (CS No.120 under Letter No. E(G)80 AD-1-12 dated 5-1-1981).

The procedure that is being followed in the matter of advances for the purchase of conveyances will be followed mutatis mutandis in this case, also in regard to drawal of funds, watching of recovery, etc. etc. The General Manager while sanctioning such advances should furnish a certificate to the Audit that arrangements will be/or have been made to provide necessary funds for covering the payment involved.

It will be the duty of the General Manager to make recommendations for the application of these rules as soon as a natural calamity of unusual severity has occurred. When making such reports, they should also indicate the action, if any, taken by the State or other local� authorities in respect of their staff.

When the sanction of the second or subsequent advance become necessary, the quantum of such advance will be arrived at as under :�

(a)� The amount of second�� advance�� shall be increased by 50%� subject to a ceiling of Rs. 500/- or 3 months pay whichever is less.��

(b)� The amount of second advance so increased will be compounded with the balance�� of  the advance and the total amount treated as a fresh advance, e.g.

1. Amount of advance sanctioned in�� previous year Rs. 500
2. Amount of advance already recovered Rs. 300
3. Balance yet to be recovered Rs. 200
4. Amount of second advance admissible under existing rules and can be drawn, say, on November Rs. 300
5. Amount of advance to be increased� by 50%(subject to a ceiling of Rs. 500/-) Rs. 450
6. Amount to be treated on fresh advance .�� ��������� Rs. 650
7. No. of installments in which fresh advance is to be recovered � No. 24

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 of his family is�� being� treated�� as an inpatient in one of the�� recognized hospitals for Cancer.

(2)�� The application for advance should be supported by a certificate�� from�� the Medical Officer-in-Charge that the patient is being treated as an in-patient in the hospital. Such a certificate should also indicate the probable duration of stay of the patient in hospital and the anticipated cost of treatment, which would otherwise be reimbursable under the rules and be also countersigned by the authorized medical attendant.

(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 room of the authorised�� medical attendant or as an outpatient at a hospital.

(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 reimbursement of the expenditure as admissible under the�� medical�� attendance and treatment rules, and the�� balance, if any, recovered from the pay of the railway servant concerned in two equal monthly installments after the�� discharge� of�� the patient from the hospital.

(7)� In the case of temporary railway�� servant the grant of an advance under these orders would be subject�� to�� the production of surety from a permanent railway servant not governed�� by the� Payment�� of Wages Act.

(8)     The term ‘pay’ for this purpose shall be as defined in Rule 2003 (21)-R.II.

1125. ADVANCES FOR FESTIVALS

Non-gazetted railway servants (including workshop staff whose grade pay does not exceed Rs. 4800/- (Rupees four thousand eight hundred only) per month may be granted an advance on the eve of important festivals subject to the following terms and conditions .

(i) The advance may be granted to Group �C� railway servants (including skilled and highly skilled staff) and to Group �D� railwayservants (including semi-skilled and unskilled staff). The amount of advance will be Rs. 3,000/- (Rupees Three Thousand only). The rate of advance shall be increased by 25% every time dearness allowance on revised pay bands increases by fifty percent.

(Railway Boards letter No. E(LL)2008/FA/1 dated 05.05.2009) –acs no.208

(ii) The advance must be drawn before the festival concerned. It is admissible only to those on duty or on leave on average pay or privilege leave at the time the advance is drawn as also to female railway employees on maternity leave at the time of the drawal of the advance.

(iii) The advance will be recovered in not more than ten equal monthly installments, the first recovery commencing with the next pay bill. The amount of each installment should be rounded off to the nearest rupee, any balance being recovered in the last installment.

(iv) The advance will be admissible only on one occasion in a calendar year for members of each community serving in an establishment. The occasions on which it may be granted will be fixed by the General Manager, after taking into consideration the importance attached locally to such festivals, or in consultation with Staff Councils and/ or recognised Unions or Associations or Workers, where such bodies exist. No member of any establishment should be granted more than one such advance in a financial year. Republic Day and Independence Day may be treated as festival occasions for the purpose of grant of festival advance.

(v) Before these advances are sanctioned to temporary railway servants, sureties from permanent railway servants or any other form of security considered adequate by the sanctioning authority should be obtained. The authorities competent to sanction these advances may, at their discretion, dispense with this requirement in the case of temporary railway servants, who have completed three years of continuous service and are likely to continue in service till the adjustment of the advance.

(vi) The advance should not be paid to temporary railway servants, who are not likely to continue in service for period of at least six months beyond the month in which the advance is paid.

(vii) To obviate the risk of the advance being paid again during the stipulated period mentioned above to a railway servant who has drawn the advance and fully refunded it, with interest, if any, prior to his transfer from one establishment to another and happens to apply to the latter for the grant of a second advance, the railway servant should be required to furnish in his� application for the advance a certificate to the effect that he had not drawn the advance applied for prior to his transfer within the stipulated period mentioned above. This certificate may be test-checked if considered necessary.

(viii) (a) A second festival advance should not be sanctioned until the earlier advance sanctioned for the same purpose has been recovered in full.

(b)�� In case a�� festival falls twice in a calendar year the advance will be admissible only on one occasion.

(c)�� The authorities competent to sanction these advances will be the officers of the Senior Scale or Assistant Officers in independent charge of each Division, workshop, etc., to whom the General Managers might have delegated�� their powers in this regard.

1126.� These advances will on payment, be debitable to “S Deposits and Advances�Part III� Advances not bearing interest�Departmental Advances�Railway Advances”. A record of such advances will be maintained in the same form as for Flood Relief Advances, etc.

1127.� The orders regarding the grant of the advances on festivals will remain in force till further orders.

1128.� Advance for law suits.�

(i) Advances may also be granted for the conduct of law suits to which Government is a party; but no advance should be made to a railway servant for the legal proceedings against whom have been taken at the instance of the railway administration. The amount of advance should be such as is absolutely necessary for the conduct of the law suit and should be drawn and accounted for as contingent charges

(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 duties or position. Government may sanction at their discretion an interest free advance, not exceeding Rs. 500 or the railway servants’ substantive pay for three months whichever is greater after obtaining from him a bond. The amount advanced would be subject to adjustment against the amount, if any, to be reimbursed.

(iii) In a case where a railway servant may be required to vindicate his conduct in a court of law when specific allegations are made against him in Press, an interest free advance on execution of the bond prescribed by the Administration, may be granted.

2. The advance shall not exceed Rs. 500/- or substantive pay for 3 months whichever is less.

(iv) If the Railway servant resorts to Court with previous sanction of the government to vindicate his conduct arising out of, or connected with his official duties or position though not required to do so, by government, he will not ordinarily be entitled to any assistance, but in deserving cases, advance as above may be sanctioned, but no part of expenses will be reimbursed even if he succeeds in a Court.

(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. The recovery will start on the first issue of pay/subsistence allowance/leave salary following the month in which the advance is given.

(vii) A temporary railway servant may be sanctioned the advance on furnishing surety of a permanent railway servant not governed by Payment of Wages Act.

[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 second and subsequent advances may be sanctioned subject to the condition that the interval between the drawal of the fresh advance and the last advance is not less than�� three�� years.��The advance will be INTEREST FREE and should not exceed Rs.3,000/- (Rupees Three thousand) in each case.

Notes :1.�To obviate the risk of the advance being paid again during the stipulated period mentioned above to a railway servant who has drawn the advance and fully refunded it, with interest, if any, prior to his transfer from one establishment to another and happens to apply to the latter for the grant of second advance, the railway servant should be required to furnish in his second advance, application for the advance a certificate to the effect that he had not drawn the advance applied for prior to his transfer within the stipulated period mentioned above. This certificate may be test checked if considered necessary.

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 hill station.

(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 the Divisional Railway Manager. He should certify in each case that the advance is in respect of a railway servant who is likely to stay at the hill station for the entire period of repayment of the advance and that the members of his family are residing with him at the hill station.

(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”. The procedure that is followed in the matter of grant of advances for the purchase of conveyances should be followed mutatis mutandis in this case in regard to drawal of funds, watching of recovery, etc. In particular, an advance should not be sanctioned until a certificate is obtained from the Accounts Officer that the necessary funds for the purpose are available in the year in which the payment of advances to be made.

(NO.F (E) Spl. 2008/ADV.2/2,   dated   07/11/2008.)–acs no. 205

1130.� Deleted.– (Authority: Board’s letter No. F(E)Spl.2005/ADV./6/l Dated 25-08-2009)�ACS NO. 211

1131.� – Deleted.   (No.F(E)Spl.2008/Adv.2/2, dated 07/11/2008.) -ACS NO.206

1132. Advance for House Building or Purchase of a ready built house or repayment of loan expressly taken for that purpose.

(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 are on deputation to the Railway continuously for 6 years.

Note: �Post-military service of ex-servicemen may be counted for reckoning 10 years to become eligible for sanction House Building Advance provided they have not drawn the advance during military service and recovery of advance with interest is ensured during re-employed service.

[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 local bodies, the pay of both of them�� will be taken into consideration for calculating the ceiling;

(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 owner of a house.�� However, this condition may be relaxed by the Ministry of Works Housing and Supply in exceptional circumstances; as for example, if the applicant or the applicant’s wife/husband/minor child owns a house in a village, and the applicant desires to settle down in a�� town or where an applicant happens to��own�� a house jointly with other relations, etc. and he� desires� to� build� a� separate� house� for his bonfide residential purposes.

(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  letter No. F(E) Spl. 84/Adv. III/2�� dated 17-12-1984 (Appendices….).

(e) The applicant should not have availed of any loan or advance for the execution of the house from any other Government Department concerned e.g. the Department of Rehabilitation or Central or State Housing Scheme etc. provided, however where the loan or advance etc. already availed of by an applicant does not exceed the amount admissible in these rules, it would be open for him to apply for advance under these rules on the condition that he undertakes to repay the outstanding loan/advances etc. together with interest, if any, thereon forthwith in one lump sum to the Government. Where a Railway servant makes a final withdrawal from his provident fund in connection with construction/acquisition of a house or residential plot in addition to availing an advance under these rules, the total amount of advance sanctioned and that withdrawn from provident fund should not exceed the total amount under these rules.

[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 title will vest on the railway servant after the house is built;

Rule 3 of Min. of U.D. House Building Advance Rules.

(iv) Enlarging living accommodation in an existing house owned by the railway servant in own name or jointly with spouse;

(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 28-7-1978].

(4) Quantum of House Building Advance (HBA):

(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:�

S. No.

Amount of Advance

Rate of interest

1

Up to Rs. 50,000/-

5%

2

Up to Rs. 1,50,000/-

6.5%

3

Up to Rs. 5,00,000/-

8.5%

4

Up to Rs. 7,50,000/-

9.5%

(6)�� REPAYING CAPACITY :

The repaying capacity of applicant Railway servant will be computed as under :�

(a) Officials retiring after 20 years 40% of (basic pay + stagnation increment + NPA)
(b) Officials retiring after 10 years but not later than 20 years Up to 40% of (basic pay + stagnation increment +NPA). 65% of DCRG may be adjusted.
(c) Officials retiring within 10 years Up to 50% of (basic pay + stagnation increment +NPA). DCRG up to 75% can be adjusted.

(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 time of registration and not at the time of handing over of the flat.

[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 applicant for purchasing a developed plot of land on which construction can commence immediately on receipt of the loan, on his executing an agreement in the prescribed form. In all cases in which part of the advance is given for the purchase of land, the land must be purchased and the sale deed in respect thereof produced for the inspection of the Head of the Department concerned within two months of the date on which the above amount of 40 per cent is drawn or within such further time as the Govt./Head of the Department may allow in this behalf, failing which the applicant shall be liable to refund at once, the entire amount to Government, together with interest thereon.

(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 sanctioned amount of the advance, the installment given for the purchase of land, will be payable when the construction of the house reaches plinth level.

(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 plinth level.

(iii) The competent authority should satisfy themselves that the employee actually uses the advance for construction of house by arranging site inspections at appropriate intervals.

(iv) Other terms and conditions relating to grant/recovery of House Building Advance &� completion of construction etc. will remain unchanged.

(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 the applicant for purchasing a developed plot of land on which construction can commence immediately on receipt of the loan on his executing an agreement in the prescribed form for the repayment of the advance, in all cases in which part of the advance is given for the purchase of land, the land must be purchased and the sale deed in respect thereof produced for the inspection of the Head of the Department concerned within two months of the date on which the above amount of 30per cent is drawn, or within such further time as the Government/Head of the Department may allow in this behalf, failing which the applicant shallbe liable to refund, at once, the entire amount to Government, with interest thereon.

(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 accommodation in an existing house shall be paid as follows :�

(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 when the house had reached plinth level.

(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 Government forthwith, unless an extension of this time limit is granted by the Head of the Department concerned.

(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) above, if they require the advance for the purchase of a ready-built house.

(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 may also be called upon to refund forthwith to Government the entire advances drawn by him together with interest accruing thereon in accordance with Rule 6 of these Rules, (iii) The period for producing the sale deed in respect of the developed plot of land referred to in sub rules (a) (1) (i) and (a) (3) (i) may be extended by the Head of the Department by a reasonable time after satisfying himself that the applicant has either already paid the cost of the land or is likely to pay it immediately; that the extension of time will enable him to acquire the title leasehold rights to the land and that he has every intention of building a house and will be in a position to complete the construction of the house by the 18th month after the date of the drawal of the first installment of the advance or in such period by which the time for the completion of the house is extended under Sub Rule (16) (a) (ii).

(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  produced by the railway servant to the sanctioning authority within 2 months of receipt of the amount, failing which the advance should be refunded in lump sum with interest.

(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 amount or the installment paid as advance within one month of receipt of the amount, unless extension of time is granted taking into account the circumstances explained by the loanee.

(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 2�% 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 12�% will be allowed. The competent authority to decide whether the payments have been made punctually will be the sanctioning authority, who will decide that the conditions attached to the sanction including those relating to the recovery of the amount are fulfilled completely to the satisfaction of the competent authority.

[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 of July before disbursement of pay for June, from each railway servant concerned to the effect that the insurance of house/ flat has been got done/renewed.

(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   interest thereon, shall be repaid in full by Monthly installments within a period not exceeding 20 years. First recovery of the advance shall be made in not more than 180 monthly installments, and then interest shall be recovered in not more than 60 monthly installments.

Note�1. The amount to be recovered monthly shall be fixed in whole rupees, except in the case of the last installment when the remaining balance including any fraction of a rupee shall be recovered.

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 pay of the 18th month after the date on which the first installment of the advance is paid to the Railway servant whichever�� is earlier.

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), the Head of the Department may permit him to repay the advance with interest in convenient monthly installments (the amount of which shall not be less than the amount of monthly installments on the basis of repayment within a period of 20 years) during the remaining period of his service, provided he agrees to the incorporation of a suitable clause in the prescribed Agreement & Mortgage Deed form to the effect that the Railway Administration shall be entitled to recover the balance of the said advance with interest remaining unpaid at the time of his retirement or death proceeding retirement from the whole or any specified part of the gratuity, government contribution and or special contribution in the case of subscriber to S.R.P.F. (Contributory) that may be sanctioned to him.

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 years in the case of all railway servants, other than those to whom special conditions . are applicable in terms of para 2 of Board’s letter No. PC-62/RT-1 dated 5-12-1962.

(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 reduced by the Head of the Department, if considered necessary, after obtaining the�concurrence of the Railway Board.

(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 successors in interest, as the case�� may be, or�� the sureties in cases where the applicants are temporary railway servants or due to retire within 18 months of the date of application, or permanent railway servants who require the advance for ready-built house, if the house has not been completed and/or mortgaged to Government by that time, to repay the outstanding amount together�� with interest�� thereon, in suitable installments. Failure on the part of the railway servant concerned or his successors (as the case may be) to repay the advance for any reason whatsoever will entitle the Government of India to enforce the mortgage and take such other action to effect recovery of the outstanding amount as may be permissible.

(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 construction of houses, may be allowed to refund the loan amount due from them in more than one installment.�� All such cases should�� be dealt�� with as under :�

(i) As soon as it becomes known that due to circumstances beyond the control of the Government servant concerned, it would not be possible for him to undertake construction of the house, he should be asked to refund the entire amount drawn by him together with interest in one lump-sum, as the rules do not contemplate the grant of loan assistance for the purchase of land only.

(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 applicant’s wife/husband/minor children at the time of applying.

(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 new house on it, a copy of the sale-deed or other proof of the applicant having a clear title to land on which the house is proposed to be built, along, with a site plan. If the land happens to be lease-hold, an attested copy of the lease-deed should also be enclosed.

(iv) In cases, where the applicant desires to purchase land, an attested copy of a letter from the seller of the plot to the effect that subject to the settlement and payment of the price, he is in a position to hand over the vacant possession of a clearly demarcated developed plot of land to the applicant within a period of two months from the date of his letter may be forwarded.

(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 the applicant does, in fact, possess a clear title to the property in question.�� In cases where it is considered necessary to consult the Ministry of Law also in the matter, before referring such cases to�� the Ministry of Law, the Head of Departments should call upon the railway servants concerned to obtain certificates from the Government Pleader and failing that certificates from the Revenue Officer of the place where the property is located certifying after investigation from the records of the Sub-Registrar, Revenue authorities and the Court and from the information gathered from the railway servant and others, that the property in the hands of the railway servant is� absolute� and� not� joint family property� and� is free from� encumbrances and attachments and that the holder has a clear and marketable title�� to�� the property. The certificate may be in the following form :�

“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…… …………�� and not joint family property.

The said property is free�� from�� encumbrances and attachments and Shri� …………………. has a clear and marketable title to the property.”

Note : The expenditure incurred by the Railway servants for obtaining certificates from the Government Pleaders or the Revenue Authorities in connection with the verification of the title to the property should be borne by the Railway servant applying for the grant of a house building advance, as it is for him to satisfy his Head of the Department that he possesses a clear title to the plot of land, etc.

(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 it happens to be required partly for purchasing a plot of land for constructing a house [see also sub-paragraphs (d) (ii) . and (e) below], or for purchasing a ready built house;

(ii) the monetary limit up to which the grant of an advance could be considered in due course, in other cases (viz., for constructing a new house or for increasing living accommodation in an existing house).

(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 to the applicant. Where land or a ready built house is intended to be purchased with the help of the advance, the Head of Department may, before authorizing payment of the advance, also require the railway servant concerned to certify that negotiations for the purchase have reached concluding stages, that the purchase 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 indisputable title to the land/house in question. In such cases, the sale deeds, etc. should be examined by the Head of Department carefully (in consultation with legal and other authorities where necessary) to ensure that the railway servant concerned has actually acquired indisputable title to the property in question. It should also be verified that the market value of the land/house purchased is not less than the advance sanctioned.

(ii) The Heads of Department -shall instruct applicants desirous of constructing a�� new house or enlarging living accommodation in an existing house, to furnish two copies of plans, as well as specification and estimate in prescribed Forms. The plans must be got duly approved by the Municipality or other local body concerned before submitting them to Head of the Department.

(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 the first installment of advance and that after purchasing the land the mortgage deed in the prescribed form is executed and duly registered in the Office of the Registrar of Assurances and the registered deed, together with the original documents of title to land, is deposited with the Head of the Department before drawing the second�installment of the advance;

(ii) in cases of advance required for construction of additional accommodation on first floor of the existing single-storied house or constructing a double-storied new house and in all cases involving enlargement of living accommodation in existing houses, the mortgage deed in the prescribed form is executed and registered in the office of the Registrar of Assurances and that the registered deed, together with the original documents of title to and/house, is deposited with the Head of the Department before drawing the first installment of advance;

(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 Head of the Department within three months of the drawal of the advance in cases of purchase of ready-built house and in other cases where the terms of sale do not vest the title in the railway servant till a house is erected on the land, within three months of the date of vesting of title in favor of the railway servant and the time required for the registration of the mortgage deed

(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 a clear and marketable title free from all encumbrances and attachments on erection of the house.

(vi) mortgage deed (and reconveyance deed on release or reconveyance of property from mortgage) is duly registered within four months from the date of its execution as required by section 23 of the Indian Registration Act (16 of 1908) and all documents deposited by the railway servant in pursuance of these provisions are kept in safe custody till the release or re conveyance of the property from mortgage. (Registration is not necessary in the case of Surety Bonds and Agreements prescribed in these Rules);

(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 Municipal rates and taxes are paid regularly, and the requisite certificate furnished annually, until the advance has been repaid in full;

(ix) monthly recovery of installments of repayment of the advance commences from the due date and is made regularly from the monthly pay/leave salary/subsistence allowance bills of the railway servant concerned thereafter;

(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 balance of the advance outstanding against them just before the date of their retirement and that in such cases any applications for advance/withdrawal from their Provident Fund subsequent to the grant of house-building advance under these paragraphs should not be ordinarily entertained;

(xi) any amount drawn in excess of the expenditure incurred is refunded by the railway servant concerned to Government forthwith together with the interest, if any, due thereon; and

(xii) the property mortgaged to Government is released or reconvened immediately on the repayment of the advance and the interest thereon in full and the mortgage deed duly cancelled and returned together with the original documents of title of the land property to the railway servant concerned.

(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.

1.� Western Zone comprising the States of Maharashtra and Gujarat & Union Territories of Goa, Daman & Diu, Dadra� & Nagar Haveli. 1. New India Assurance Co. Ltd., 87, Mahatma Gandhi Rd., Fort, Bombay.
2. Eastern Zone comprising� the States of Assam, Bihar� Manipur, Meghalaya, Nagaland, Orissa, Tripura & West Bengal, the Union Territories of Andaman, Nicobar Islands, Arnnachal Pradesh & Mizoram. 2. National Insurance Co. Ltd., 18, Rabindra Sarani,Calcutta
3. Narthern & Central Zones comprising the States of Madhya Pradesh & Uttar Pradesh and Union Territories of Delhi & Chandigarh and States of Jammu & Kashmir, Haryana, Himachal Pradesh, Punjab and Rajasthan. 3. Oriental�� Fire�� &�� Central Insurance Co. Ltd., Oriental Building,� Mahatma Gandhi Rd.,Bombay-400001. (Oriental Bldg., 88, Janpath, New Delhi.
4.� Southern Zone comprising the states of Andhra Pradesh, Kerala, Mysore and Tamil nadu and the Union Territories of Minicoy & Amindiv Islands & Pondicherry. 4. United India Fire & General Insurance Co. Ltd., Indian Overseas Bank Bldg. 151, Mount Road, Madras-2.

5.       Any other Private Insurance Company approved by Insurance Regulatory Development Authority (IRDA) for the purpose of insurance of the Houses/flats constructed/purchased with the help of House Building Advance”.

(Authority: Board’s letter No. F(E)SpI.2007/ADV./3/5 dated 5.9.2007 & 07-12-2007)

(ii) Insurance policies relating to the properties acquired by govt. servants with the help of house building advance shall be retained by the Heads of Department, both in the case of gazetted as well as non-gazetted Central Govt. servants. The Heads of Deptt. shall furnish to. the Audit Officer/Accounts Officer, as the case may be, a certificate that the borrower has insured the house for an amount not less than the amount of advance taken for the purpose and the Insurance Company has been notified about the interest of Govt. in the Policy. In the case of Insurance affected on annual basis, this procedure shall be repeated every year until the advance together with the interest thereon has been fully repaid to Govt. The Insurance Policies shall be made available for verification to the Local audit inspection to the Audit office/Accounts Officer.

(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 concerned, who has been granted house building advance, to the effect that the insurance of the house/ flat has been got done/renewed. The Heads of Department shall also, while issuing the Last Pay Certificate, make an entry regarding the insurance of the house/flat stating for what period it has been insured and when the insurance thereof should be renewed. Non-furnishing or furnishing of a false certificate by Govt. servant concerned will render him liable to suitable disciplinary action under the Rules of Service applicable to him and a serious view would be taken in such cases. Cases involving condonation of irregularity in not having insured for a period  beyond two years will be referred to the Ministry of Urban Dev. for condonation. In dealing with the cases involving condonation of irregularity of non-insurance for a period up to two years, the Heads of Department shall satisfy themselves that the irregularity was not deliberate on the part of the Govt. servant concerned and was due to circumstances beyond his/her control.

(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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