House Building Advance: RBE No.40/1988 – Enhancement of HBA
No.F(F)Spl.88/Adv.3/4, dated 03.03.1988
Sub: Liberalization of House Building Advance – Enhancement of the amount of advance sanctioned in the past.
1. Reference this Ministry’s letter No.F(E)Spl./87/Adv.3/12, dated 09.07.1987 (RBE No.369/1987) regarding liberalisation of House Building Advance Scheme for Central Govt./ Railway employees.
2. This Ministry is receiving a number of representations for reviewing para 3(a) thereof wherein it has been stated that enhancement will be admissible only to those past cases where entire amount of House Building Advance sanctioned earlier has not been drawn. The matter has been examined in detail and it has been decided that an enhancement of House Building Advance may be granted to those employees also who have drawn the entire amount of House Building Advance before issue of the letter dated 09.07.1987 referred to above on the following conditions:
(a) Pay for this purpose would be the national basic pay reckoned on the date of issue of the original House Building Advance order.
(b) The actual entitlement will be restricted to the repaying capacity computed on the basis of the formula laid down in this Ministry’s letter No.F(E)Spl./87/Adv. 3/12, dated 09.07.1987 (RBE No.369/1987). It should be ensured that the entire amount of advance with interest is recovered before the retirement of the Govt. servant.
(c) The revised amount of House Building Advance thus calculated shall not exceed 50% of the House Building Advance previously sanctioned.
(d) There will be no deviation from the approved plan of construction on the basis of which the original sanction for the House Building Advance was accorded.
(e) The original cost taken into account at the time of sanctioning the original house building advance would only from the basis. The Mortgage Deed, Personal Bond and Sureties will have to be drawn up afresh at the expense of the loanee.
(f) The revised advance will bear uniform rates of interest laid down in this Ministry’s letter No.F(E)Spl./87/Adv. 3/12, dated 09.07.1987 (RBE No.369/1987).
3. Such of those employees only as apply for the additional amount within three months to be reckoned from 15.02.1988 and in whose case the sanctioning authority is satisfied that he/she satisfied all the prescribed conditions would be eligible for the enhanced amount of advance.
4. It is also clarified that in all the cases of house building advance which are treated as past cases, the applicants would be eligible for only one enhancement.
5. These orders are in partial modifications of para 3 of this Ministry’s letter No.F(E)Spl./87/Adv.3/12, dated 09.07.1987 (RBE No.369/1987).
Download Railway Board Circular RBE No.40/1988
Forward reference ⇒ RBE No.