IREC Rule No.925(2): Final Withdrawal From Provident Fund For House site
925(2). Final Withdrawal From Provident Fund For House site:-
(a) Withdrawal may be either for the purpose of purchasing a house site for building a house thereon for his residence or for payment of any outstanding amount on account of a loan expressly taken for the purchase of a house site before the receipt of the application for the withdrawal.
[Authority: No.F(E)III/77PF-1/3, 27.05.1977]
Note: The provisions of this clause shall be deemed to cover acquisition of plots of land on lease from the central or State Governments.
[Authority: No.F(E)ML 73 PF-1/18, 20.10.1973]
(b) The amount of withdrawal shall not exceed;
(i) One-half of the amount actually subscribed by him along with interest thereon standing to his credit in the fund; or
(ii) The actual cost of the site,
Whichever is less.
Provided that in no case the maximum amount of withdrawal for the purpose specified in this Rule shall exceed the maximum limit prescribed from time to time under rules (2) (a) and 3(b) of the scheme of the Ministry of Works and Housing for the grant of advances for house building purposes;
Provided further that in the case of a subscriber who has availed himself of an advance under the Scheme of the Ministry of Works and Housing for the grant of advances for house-building purposes, or has been allowed any assistance in this regard from any other Govt. source, the sum withdrawn under this sub-rule together with the amount of advance taken under the aforesaid Government source shall not exceed the maximum limit prescribed from time to time under Rules 2(a) and 3(b) of the aforesaid Scheme.
If the amount withdrawn exceeds the actual cost of the site the excess shall be refunded to the Government forthwith in one lump sum together with interest thereon at the rate provided for in Rule 920 from the month of each withdrawal by the railway servant for being credited to his account. The actual expenditure incurred in this connection with the sale or transfer deeds may be reckoned as part of the cost of the site.
[Authority: No.F(E)III/80 PF-1/2, 31.07.1980]
(c) The amount of withdrawal may be allowed in one installment in cases of outright purchase of a house site or for repayment of a loan earlier taken for the purpose and in not more than three installments if payment for the site is to be made on an installment basis. The sanction will be issued for the entire amount of the withdrawal, the number of installments in which it is actually to be drawn being specified therein.
President’s Decision: In the case of house sites purchased from recognized house-building co-operative Societies where the cost of land is recovered in a number of installments and the total amount required is not susceptible of being firmly decided withdrawals may be made in installments as and when the society sends a requisition for the amount payable subject to the condition that the amount of the installment does not exceed 50% of the amount actually subscribed by the subscriber along with the interest thereon standing to his credit in the Fund at the time of each withdrawal.
[Authority: No.F(E)III /69 PF-1/4, 19.05.1969]
(d) The house-site purchased or proposed to be purchased by the railway servant shall be situated at the place of his duty or his intended place of residence after retirement.
(e) Withdrawal will be permitted for the purchase or redemption of one house-site only and will be admissible, where the railway servant does not already own a house at the place referred to in clause (d) above.
(f) The house-site shall be purchased within a period of one month of the withdrawal, or the withdrawal of the last installment, as the case may be. In fulfillment of this condition, the sanctioning authority may require the production of receipts issued by the seller, the house building society etc. in token of the amount of the withdrawal installments having been utilized for making payment towards purchase of the site.
(g) A railway servant shall submit an annual declaration in the prescribed form on or before the 31st December of each year and satisfy the sanctioning authority, if called upon to do so, by the production of tax receipts, title deeds, etc. that the house-site remains in his sole ownership and that while he is still in service, he has not parted with the possession thereof by way of transfer; sale, mortgage (other than mortgage to the President) gift, exchange lease etc. for a term exceeding three years or otherwise without the previous permission of the sanctioning authority in writing. Provided that such permission shall not be necessary for its being mortgaged in favor of a Housing Board, the Life Insurance Corporation or any other Corporation owned or controlled by the Central Government which advance loans for the construction of a new house or for making additions or alterations to an existing house.
[Authority: No.F(E)III/74-PF-2/6, 06.12.1974]
The amount withdrawn shall be repayable forthwith in one installment together with interest thereon from the month of such withdrawal by the railway servant if the house-site is sold or encumbered at any time before retirement without such permission.
(h) The Administrative Authority should satisfy;
(i) That the size and the cost of the house site are not disproportionate to the status of the railway servant concerned and the resources available in his Provident Fund Account.
(ii) That the amount is actually required for the purpose of purchasing the house site or for repayment of a loan expressly taken for the purpose, as the case may be, and
(iii) That the railway servant will acquire full title to the house site proposed to be purchased.
(i) Withdrawals for the purpose of eventual construction of a house on the site purchased may be permitted under the following terms and conditions;
(a) The withdrawal shall not exceed the amount actually subscribed by him together with interest thereon standing to his credit in the fund or the actual cost of construction of the house, whichever is less;
Provided that in the case of a subscriber who has availed himself of an advance under the scheme of the Ministry of Works and Housing for the grant of advances for house building purposes, or has been allowed any assistance in this regard from any other Govt. source, the sum withdrawn under this sub-rule together with the amount of advance taken under the aforesaid scheme or the assistance taken from any other Govt. source shall not exceed the maximum limit prescribed from time to time under rules 2(a) and 3(b) of the aforesaid Scheme.
[Authority: No. F(E)III 80 PF-1/2, 31.07.1980]
(b) The railway servant concerned should commence the construction of the house within a period of six months of the withdrawal of money and complete it within a period of one year from the date of commencement of the construction.
Note: The sanctioning authorities may at their discretion, relax the limit of 6 months for commencement of construction of the house to one year.
(c) The withdrawal will be permitted in installment not less than two and not more than four in number, the installments after the first being authorized by the sanctioning authority after verification regarding the progress of the construction of the house.
Note-1: Other conditions as mentioned in clauses (g) and (h) of sub-rule (I) will also apply.
Note-2: Notes 1 and 2 appearing at the end of sub-rule 925(1) (h) shall also apply in cases falling under this rule.
[Authority: No.F(E)III 77 PF-1/3, 27.05.1977 & 26.11.1977]
(j) Withdrawals may also be permitted within 6 months before the date of the Railway servant’s retirement, from the amount standing of his credit in the fund for the purpose of acquiring a farm land or business premises or both.
[Authority: No.F(E)III 77 PF-1/3, 27.05.1977]