Master Circular: Leasing/Hiring of Private Houses for Residential Use

No.2005/LMB/12/Master Circular, dated 05.05.2006

 

Sub: Leasing/hiring of private houses for residential use of Railway Officers/ staff – Master Circular.

Under Para 1917 of the Engineering Code (1999 Edition), hiring by administration of a private building, for use as residence by a Gazetted Officer, requires prior sanction of the Railway Board. Various instructions/ clarifications on the subject have been issued from time to time and there is need to consolidate the same for convenience. Accordingly, in supersession of all previous orders on the subject, instructions contained hereinafter may be followed:-
Policy Guidelines for Leasing/Hiring of Private Accommodation for Residential Use of Railway Officers
1. Period Of Lease:-
1.1 The period of lease must be for at least three years. The intention of the aforesaid provision is that the rents for houses once leased should not be increased at least for a period of three years.
1.12 Extension of lease beyond the period of three years on same terms and conditions may, however, be considered for shorter period also, if necessary.
1.13 Lease agreement may provide for termination of lease by administration on a stipulated notice. This is to cover the cases of transfer etc. of officers when the houses may be no longer required.
1.14 The actual clauses to be provided in the agreement may, however, be decided in consultation with the Law Officer keeping the Railway’s interest protected within the broad framework of these instructions.

[Authority: No.1992/LMB/22/1, dated 08.05.1992]

2. Ceiling Limit Of Rent:-
2.1 Following ceiling limit would be applicable for various grades of officers posted on new Zones viz. East Central Railway, East Coast Railway, North Central Railway, North Western Railway, South East Central Railway, South Western railway and West Central Railway, depending upon the places.

[Authority: No.2003/LMB/12/02, dated 13.12.2005]

Grades/ Designation of officers	A-I Class cities Rs.	A Class cities Rs.	B-I Class cities Rs.	B-II Class cities Rs.	C Class cities Rs.
Member/RCT	9450	8100	7425	6750	5400
SAG & above	8775	7425	6750	6075	4725
JAG & SG	7425	6750	6075	5400	4050
Sr./Jr.Scale & Group ‘B’ Officers	6750	6075	5400	4725	3375

2.2 Following ceiling limits would be applicable for various grades of officers posted on Railways other than the above, depending upon the places.

Grades/ Designation of officers	A-I Class cities Rs.	A Class cities Rs.	B-I Class cities Rs.	B-II Class cities Rs.	C Class cities Rs.
Member/RCT	7000	6000	5500	5000	4000
SAG & above	6500	5500	5000	4500	3500
JAG & SG	5500	5000	4500	4000	3000
Sr./Jr.Scale & Group ‘B’ Officers	5000	4500	4000	3500	2500

[Authority: No.1992/LMB/22/1, dated 08.05.1992]

2.3 The above ceilings are the uppermost limit within which the actual rental should be fixed by the Railways in consultation with their Finance.
2.4 Excess over the ceiling limit, if any, shall be borne by the officers (for whom the houses are taken on lease) and recovered from their salary, in addition to the prescribed 2.5% of the revised basic pay of the officer subject to the ceiling limits laid down vide Board’s letter No.F(X)I-95/11/2, dt. 09.09.1998.
3. Payment of Advance Rent:-
3.1 In no case, any brokerage will be payable by the Railways.
3.2 Payment of advance rent should be discouraged.
3.3 However, if payment of advance rent becomes inescapable, it should be limited up to maximum of three month’s rent, subject to adjustment before last three months of expiry of the leasing period, with concurrence of FA&CAO and approval of General Manager.
4. General Guidelines:-
4.1 Approval of the proposal for leasing of accommodation for any new location for the first time would be issued from the Board on proposals being received from the Railways duly vetted by their Finance. Please see also para 10 below.
4.2 The proposals formulated by Railways should invariably indicate the following and justification for the same:

(a) The actual number of houses to be taken on lease at a particular station,
(b) The quantum of House Rent Allowance payable to different categories of officers at the station in question vis-a-vis rent proposed.
(c) Actual rentals to be paid, keeping in view the provisions of para 2.2 under Ceiling limits of rent above, local factors and the relative importance of the locations.

Limit For Extension of Leased Houses:
5. Number of Houses to be Leased:-
5.1 Number of number of houses to be leased should be limited to the barest minimum at the Zonal/ Divisional Headquarters. Proposal for these stations should clearly indicate the following in addition to that given and para 4.2 of general guidelines above.

(a) Total actual number of residences available for officers.
(b) Number of units under construction (specifying as to when they would be completed and available for allotment).
(c) Total number of officers requiring such accommodation in each category; and
(d) The shortfall indicating how this has been met in the immediate past.

6. Once such a proposal is approved by the Board as regards number of house being leased at a specific ceiling in a particular place, the railway may continue to hire houses at such stations provided that the ceiling, in respect of number of houses and rent, as approved by the Board for these places, are not exceeded. While sanctioning such a hiring, the railway will critically examine the proposal in consultation with their local Finance so as to ensure that need for such hiring still exists.
7. Limit for Extension of Lease Houses:
Issue of extension of leased private houses by the Zonal Railways was reviewed and it was decided that in cases where extension of private leased house is required beyond six years (entire period of leasing), permission of the Board must be obtained.

[Authority: No.2003/LMB/12/20, dated 30.12.2003]

8. Leasing of private houses owned by railway servants and/or members of their family:
The matter has been considered and it has been decided that it should not be permitted. For this purpose, the family has been has the same meaning as defined in the Railway Servants (Pass) Rules and also includes father/ step father and mother/ step mother.

[Authority: No.1996/LMB/12/10, dated 09.09.1996]

9. Hiring of Private Houses for the Use of Non-Gazetted Railway Servants:
In respect of non-gazetted Railway servants, General Managers are empowered to hire such accommodation in terms of para 1917 of the Engineering Code (1999 Edition).

[Authority: No.1996/LMB/12/10, dated 09.09.1996]

10. Prior Approval of Board for Leasing Private Houses for Railway Officers:
It is clarified that prior approval/ sanction of the Board’s office is needed before resorting to hiring/leasing of private accommodation for residential use of gazette officers at new locations for the first time and not for this cases where sanction already exists.

[Authority: No.1997/LMB/12/23, dated 10/17.07.1998]

11. Members of Railway Claims Tribunal & Railway Rates Tribunals:
Members of Railway Claims Tribunal (RCT) and Railway Rates Tribunal (RRT) are entitled to Railway accommodation of Type-V or Type-IV (SPL) and this can be allotted to them. If Railway accommodation is not available, leased accommodation may be arranged for them.

[Authority: No.2001/LMB/10/21, dated 15.05.2002]

12. Retention of Leased/Hired Accommodation on Transfer/ Retirement/ Deputation/ Death etc:
In order to deal with exigencies of transfer, deputation, retirement, death, etc., the following instructions may be followed for the purpose of retention of hired/leased private accommodation for the use of Railway Officers.
12.1 Transfer (Permanent):
Retention of leased accommodation may be allowed for a period of 2 (two) months on payment of normal license fee plus additional 2 (two) months on payment of double the license fee.

[Authority: No.1998/LMB/12/18, dated 09.12.1998]

12.2 Transfer (Temporary):
Retention of leased accommodation may be allowed for full period as per Railway Rules on payment of normal license fee.
12.3 Deputation (Abroad):
Retention of leased accommodation may be allowed for a period of 2 (two) months on payment of normal license fee.
12.4 On Training:
Retention of leased accommodation may be allowed for full period of training on payment of normal license fee, subject to a maximum of 12 (twelve) months.
12.5 Medical/ Maternity/ Paternity Leave:
Retention of leased accommodation may be allowed for full period on payment of normal license fee.
12.6 Death:
Retention of leased accommodation may be allowed for a period of 6 (six) months or till end of educational session of the children of the deceased officer whichever is earlier on payment of normal license fee.
12.7 Retirement:
Retention of leased accommodation may be allowed for a period of 4 (four) months on payment of normal license fee. No further retention of leased/hired accommodation beyond above permissible limit may be allowed. The option of extending the period by another 4 (four) months at double the normal license fee should not be extended in such cases.
13. Extension of Retention of Leased Accommodation by Railway Officers:
No further retention of leased accommodation may be allowed beyond the permissible period on payment of normal license fee in cases of transfers (temporary and permanent), deputation (abroad), Training, Medical/ maternity/ paternity leave and death cases. For retention of the leased accommodation beyond permissible limits, over retention may be treated as un-authorized and double the charges being paid by the Railway to the land lord may be recovered from the Railway Officers.

[Authority: No.1998/LMB/12/18, dated 09.12.1998]

14. Power of the General Manager of Zonal Railways to Hire/ Lease Private Houses for Residential Use of Railway Officers of New & Old Railway Zones:
In relaxation of the provisions contained in para 1917 of Engineering Code, General Managers of the new Zones are authorized to hire/ lease 50 (fifty) or such higher number in certain cases of private houses and General Managers of the Zones are authorized to hire/lease 25 (twenty five) private house for residential use of railway officers, subject to usual terms and conditions.
14.1 Justification for leasing in each case would be looked in to by the FA&CAO before approval is accorded by the General Manager.
14.2 For leasing/hiring residential accommodation for railway officer in excess of the above limits, prior approval of the Board may be obtained as required vide para 1917 of Engineering Code.

[Authority: No.2001/LMB/12/16, dated 31.07.2002,
No.2001/LMB/12/12 (Pt), dated 01.08.2003]

15. Powers of the General Managers of Zonal Railways to Hire/Lease Private Houses for Residential Use of Railway Officers of Newly Created Divisions:
In relaxation of provisions contained in 1917 of Engineering Code, General Managers of the Railway concerned are authorized to hire/ leased 15 (fifteen) number of private houses for residential use of Railway Officers of newly created Division, subject to usual terms and conditions.
15.1 Justification for leasing in each case would be looked into by the FA&CAO before approval is accepted by the General Manager.
15.2 For leasing/hiring residential accommodation for Railway Officers in excess of the above limits, prior approval of the Board may be obtained as required vide para 1917 of Engineering Code.

[Authority: No.2003/MB/12/01, dated 28.02.2003]

This issues in consultation with the Finance Directorate of the Ministry of Railways.

Download Railway Board Circular Master Circular 05.05.2006

Forward reference ⇒RBE No. 06/2016