GAIL House Building Advance Rules Rules.pdf4.1 Housing Building Advance shall be granted to regular...

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GAIL House Building Advance Rules

1. SHORT TITLE

These rules may be called the ‘GAIL (INDIA) LIMITED HOUSE BUILDING ADVANCE RULES’, short form: ‘GAIL HBA RULES’ (hereinafter called the ‘Rules’) and shall come into force with immediate effect.

2. APPLICABILITY

a) These rules shall apply to all regular employee of the Company for seeking advance for construction of a house or enlargement of the house or purchase of land and construction of the house or a ready built-house/ flat or reconstruction or alteration/ enlargement in flat acquired through his own means/ resources, on the terms and conditions mentioned hereinafter.

[No. Co/HR/Pol/P-4, dated 14.3.2000] b) Masculine gender also refers to feminine gender.

3. DEFINITIONS

In these Rules, unless the context otherwise requires:- a) ‘Company’ means the GAIL (INDIA) LIMITED including the Projects/ Units/ Offices

under its management. b) ‘Competent Authority’ means the authority empowered to sanction House Building

Advance in accordance with the powers delegated under the delegation of Powers. c) ‘Committee’ means a Committee as may be constituted under these Rules. d) ‘Employee’ means a person employed in the regular establishment of the Company

but does not include: i) a lien holder/ probationer ii) a deputationist on foreign service terms iii) a person appointed on contract iv) a muster roll/ daily-rated/ Ad-hoc/ casual employee v) an Apprentice/ Trainee

e) ‘Family’ means an employee’s spouse and minor children including legally adopted children.

f) ‘House’ means a house, flat or a tenement. g) ‘Pay’ means Basic pay, Special pay and any other Salary Component, which is

specifically classified as Basic pay by the Company. 4. ELIGIBILITY

4.1 Housing Building Advance shall be granted to regular employees of the Company who have put in a minimum of 5 year’s continuous service or have completed 10 years total service including the service rendered in Government/ Public Sector Undertaking even through they have not completed the initial probation.

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Provided that the above stipulation shall not be applicable in respect of such employees of Government/ Public Sector Undertaking/ Statutory Corporations/ Quasi-Government Bodies who, in continuation of their deputation/lien are absorbed in the services of the Company or have joined the Company from such organisations after applying through proper channel and apply for an advance for the purpose of repayment of the balance amount of House Building Advance drawn from their parent organisations/ department and interest accrued thereon.

4.2 The period of training in respect of all those employees who are absorbed in the Company’s regular service immediately after successful training will be counted for the purpose of eligibility of the Advance provided there is no break in training/ service.

4.3 In respect of Ad-hoc employees who have been appointed to the Company’s regular service, their period of ad-hoc employment will be counted for the purpose of eligibility for the Advance provided there is no break in their ad-hoc appointment and their regular appointment is in continuation of their ad-hoc appointment without any break.

4.4 In case both husband and wife are employed in the Company, and are otherwise eligible for the grant of the Advance, only one of them shall be eligible for the grant of Advance, at their option.

4.5 In respect of GAIL employees who have and/ or will become members of the GAIL Employees Cooperative Housing Society Limited, Sector – 56, Gurgaon; GAIL Sehkari Awas Samiti Limited (formerly known as GAIL Welfare and Cultural Society), Sector – 62, NOIDA (Distt. Gautam Budh Nagar); and GAIL Karamchari Sehkari Awas Swas Samiti Limited, Sector – Pi, Greater Noida, (Distt. Gautam Budh Nagar), the eligibility condition for drawal of loan under the rules shall be 3 years service in GAIL or 8 years total service in Govt./ PSU(s) including GAIL.

[No. CO/Pers/Pol/P-4, dated 9.3.1995; No. CO/HR/Pol/P-4,

dated 1.9.1998 and 2.1.2001]

5. COVERAGE 5.1 The House Building Advance may be granted to the eligible employees for the

following purpose : 5.1.1 Acquisition and purchase of land (freehold or leasehold) and construction

of house thereon (the tile of the land should be clear) in his/her own name or jointly with his/her spouse.

5.1.2 Construction of new house on land already owned/ purchased/ acquired by an employee in his/her own name or held jointly with his/her spouse. (The title to the land should be clear.)

5.1.3 Outright purchase of a ready built flat/ house from a Public Housing Agency including a Cooperative Housing Society or purchased from a reputed Private Party in his/her own name or jointly with his/her spouse.

5.1.4 Extension/ enlargement of an existing house owned by the employee either in his/ her own name or jointly with his/ her spouse for which house building advance had not been earlier.

5.1.5 Outright purchase of ready built old house/ flat in his/her own name or jointly with his/her spouse.

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5.1.6 Purchasing/ construction of house under the Self-Financing Scheme promoted by Central Government/ Central Government Agencies/ State Government/ State Government Agencies in his/her own name or jointly with his/her spouse.

5.1.7 Purchasing a plot under Cooperative Group Housing Scheme and constructing a house thereon or acquiring house through membership of Cooperative Group Housing Schemes in his/her own name or jointly with his/her spouse.

5.1.8 Repayment of loan or advance taken from a Government or Private source for construction of house in his/her own name or jointly with his/her spouse. In such cases advance will be admissible even for the construction of the house already commenced.

5.1.9 Repayment of the balance amount of House Building Advance together with interest thereon, directly by the Company to his parent organisation, in the case of an employee covered under the provision of Para 4.1.

5.1.10 Providing woodwork and other facilities in a built-up house/ flat purchased from Government Agencies and/or Cooperative Group Housing Societies or a private builder or self-constructed house in his/her own name or jointly with his/her spouse in cases where the cost estimate does not provision for the basic woodwork as identified below :

(a) Woodwork in wire mesh doors/ windows (b) Wooden pelmets above doors and widows (c) Wood for door/ windows frame (d) Wooden doors (e) Wooden inbuilt almirah in room walls (f) Cupboards/ shelves in Kitchen (g) Show cases in the drawing cum dining room

[No. Co/HR/Pol/P-4, dated 2.11.1999] 5.2 The Advance for the case covered in sub-rules 5.1.1 to 5.1.8 and 5.1.10 shall be

granted only if the employee and his spouse jointly owning land/ house, execute a mortgage deed for the same in favour of the Company. 5.2.1. Advance for purchase of property from a family member/ relative who is

not dependent upon him, shall be allowed subject to following conditions: (a) The property is free from encumbrances (b) The property is self-acquired (c) The seller has a clear, indisputable and marketable title to the

property in question [No. CO/HR/POL/P-4, dated 27.11.2001]

5.3 The Advance will be admissible for construction/ purchase/ enlargement of house, as the case may be, anywhere in India.

5.4 The advance will be sanctioned to an employee for the purpose of registering himself/ herself for allotment of a plot of land and/or house/ flat under various Group Housing Societies/ Development Schemes of the Central/ State Government subject to the following conditions :

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5.4.1 The employee should be otherwise eligible for grant of House Building Advance.

5.4.2 The registration amount may be allowed up to 10 month’s Basic pay plus Dearness Allowance or 10% of HBA entitlement, whichever is lower.

5.4.3 The registration amount along with interest thereon @5% per annum may be recovered in 30 installments (10% of the total 300 installments in which HBA and interest are recovered).

[No.CO/HR/Pol/P-4, dated 20.5.2004] 5.4.4 The recovery for the registration amount may begin after two months of

the drawal of the Advance (Normal recovery starts after 1½ or 2 years). 5.4.5 Any interest that accrues towards this amount may be refunded to the

Company. This is in addition to the normal interest @5% per annum as chargeable on the registration amount.

[No.CO/HR/Pol/P-4, dated 20.5.2004] 5.4.6 In the event of allotment, HBA may be sanctioned as per existing rules by

working out the entitlement as on the date of application for the full HBA. 5.4.7 In case the employee is successful in allotment of flat/ plot, House Building

Advance would be worked out after adjustment of the registration amount and revised installment shall be fixed for recovery. In case registration amount paid by the employee is more than registration amount drawn from the company, his/ her final HBA would be made in respect of the registration amount drawn from the Company only.

5.4.8 The registration amount may be adjusted against the HBA to be sanctioned on allotment of Plot/ Land/ Flat. The cost of the flat/ plot will be worked out after reducing the registration amount earlier allowed, even if, fully paid back.

5.4.9 There may be objection to an employee registering himself/ herself in more than one scheme for purpose of allotment/purchase of residential accommodation within the ceiling as at 5.4.2 above and subject to satisfying other conditions as specified above.

5.4.10 Employees will be required to fulfill all formalities relating to Agreement, Surety, declaration, etc. as required under the rules for grant of the HBA.

[No. CO/Pers/Pol/P-4, dated 24.8.1992] 5.5 Employees who have obtained House Building Advance from the Company may

also be permitted to create second charge on the property to raise additional loan subject to the following terms and conditions : 5.5.1 Before creating second charge on the property, concerned employee

should obtain prior permission from the Company. 5.5.2 The Draft Deed of second mortgage should be submitted to the Company

for scrutiny. 5.5.3 A second charge will be create by the employee only in respect of loan to

be granted for meeting the balance cost of house/ flat for which loan has been given by the Company.

5.5.4 Before applying for permission to the Company for availing loan on second charge basis, the concerned employee should ascertain the

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willingness of the financial institution concerned to accept a second change.

5.5.5 The expenditure on registration of the mortgage deed etc. in such case will be borne by the employee.

5.5.6 For the purpose of second charge, the following financial institutions will be considered as recognised by the Company :

(a) Banking Institutions including Cooperative Banks. (b) Financial Corporations set up by the State Governments which

provide loans for house construction/ acquisition. (c) Apex Cooperative Housing Finance Institution such as Delhi

Cooperative Housing Finance Society. (d) Public companies formed and registered in India with the main object

to carry on the business of providing long term finance for construction or purchase of houses in India for residential purposes, like the Housing Development Finance Corporation Limited.

5.5.7 GAIL will keep the original documents e.g. mortgage deed, agreements etc. even after allowing the employees to raise further loan from financial institutions by creating second charge.

5.5.8 The second charge will be allowed on Pari Passu basis but GAIL will continue to keep the original documents/ deed etc. under its custody. Inter-se Agreement regarding Pari-Passu charge, Memorandum of confirmation of Pari-Passu arrangement, General Conditions of Pari-Passu arrangement forming part of such memorandum and any other documents required by the financial institution should be submitted to the Company by the employee in advance for scrutiny.

5.5.9 Consequently, in case where the mortgage covenants to create a second mortgage in favour of any other financial institution as above, the Mortgage Deed of the House Building Advance paid by the Company will be modified so as to provide that he shall not do so without obtaining prior permission the Company and on the consent being given, the draft of the second mortgage will be submitted to the Company for approval.

5.6 An advance under these Rule may also be sanctioned to an employee who may seek to buy a plot of land for construction of house by participating in an auction conducted by Government agencies subject to the following conditions: (a) Advance allowed shall not exceed 10% of the entitled amount of House

Building Advance. (b) Applicable rate of interest under these rules will be charged from the date of

drawal of the Advance. (c) If unsuccessful in the auction the amount together with interest shall be

deposited back by the employee with the Company within one week’s time. (d) The employee shall be otherwise eligible for grant of HBA and he is required

to fulfill all other related formalities. (e) In case of being successful in the auction, Company’s assistance will be

limited to the entitled amount of HBA as per these rules. (f) The employee will be required to fulfill all formalities relating to agreement,

surety declaration etc. as required under the Rules for grant of HBA.

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[No. CO/Pers/Pol./ADVH, dated 8.8.1990] 6. AMOUNT OF ADVANCE

6.1 Subject to Para 4 and 5, the maximum amount of advance admissible to an employee will be the least of the following : 6.1.1 FOR CONSTRUCTION OF HOUSE OR PURCHASE OF LAND AND

CONSTRUCTION THEREON OR PURCHASE OF NEW READY BUILT FLAT/ HOUSE Maximum amount of advance admissible to an eligible employee for construction of house or purchase of land and construction thereon or purchase of new ready built flat/ house, would be the least of the following : i) 100 months’ basic pay plus Dearness Allowance admissible to the

employee on the date of application for advance; or ii) actual cost of property; or iii) the following ceilings, whichever is less :

Grade/ Level HBA Ceiling (Rs. in Lac)

S-0 to S-7 10 E-1 to E-3 12 E-4 to E-6 14

E-7 and above (including CMD and Functional Director)

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6.1.2 FOR ENLARGEMENT OF LIVING ACCOMMODATION IN AN

EXISTING HOUSE: Deleted as it is covered in Sub-para - 6.3 6.1.3 FOR WOODWORK AND AMENITIES FOR READY BUILT HOUSE/

FLATS PURCHASED FROM GOVT. AGENCIES LIKE D.D.A. AND CO-OPERATIVE GROUP HOUSING SOCIETIES OR PRIVATE BUILDER OR SELF-CONSTRUCTED HOUSE With a view to facilitate employees in carrying out quality woodwork in their houses/flats, the admissible ceiling of HBA towards woodwork/ amenities within the grade-wise ceilings stipulated in para 6.1.1:

Grade/ Level HBA Ceiling for Woodwork/ Amenities

(Rs. in lac) S-0 to S-7 1.25 E-1 to E-3 1.50 E-4 to E-6 1.75

E-7 and above, including CMD and Functional Director

2.00

6.1.4 FOR STAMP DUTY, REGISTRATION OF DEEDS/ DOCUMENTS ETC.

AND CONVERSION OF PROPERTY FROM LEASEHOLD TO FREEHOLD

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(a) Within the overall ceiling of HBA as mentioned in Sub-para - 6.1.1, the eligible employees shall be entitled to seek advance towards Stamp Duty, Charges of Registration of Deeds/Documents, etc to the extent of actual expenses incurred thereon subject to maximum of Rs.1 lac.

(b) Employees, on their request, will be allowed expenses towards conversion of the leasehold property to freehold as per actuals but within the overall ceiling of Rs. 1 lakh admissible towards stamp duty, charges for registration of deeds/ documents etc. at (a) above. This quantum of advance will be allowed subject to fulfillment of other requisite conditions and the employee shall be required to submit within one month of drawal of advance, adequate proof of having utilised the funds for the said purpose, failing which disciplinary action will be taken, apart from being liable for refund of the amount in lump-sum with penal interest.

[No. Co/HR/Pol/P-4, dated 23.8.2000] 6.1.5 Employees will be allowed one time lease rent and initial development

charges within the HBA ceilings as stipulated in Sub-para 6.1.1 in respect of property purchase from GAIL Karamchari Sehkari Awas Samiti Limited as also from other Housing Societies subject to fulfillment of all other conditions.

[No. Co/HR/Pol/P-4, dated 16.5.2002] 6.2 The actual amount of advance to be sanctioned to an employee will be

determined by the Company on the basis of the plans, detailed specification and estimates to be furnished by the employee, within the ceiling limit of Advance as prescribed above.

6.3 ADDITIONAL HBA : 6.3.1 With a view to mitigate the hardship being faced by the employees in

procuring a dwelling unit commensurate with their requirements, it has been decided to allow additional HBA within the overall ceiling as above subject to following stipulations :

(a) Additional HBA will be admissible to an employee for purchase of a better/ bigger house/ flat, or for enlargement of the existing house/ flat.

(b) Additional HBA will be admissible only after a period of 3 years from the date of sanction of the previous HBA.

[No. Co/HR/Pol/P-4, dated 12.5.1999] (c) In cases where the existing house/ flat purchased earlier with HBA

assistance from the Company is sought to be enlarged, such enlargement should be for increasing the original carpet area and not for enclosing balconies or other alterations and modifications. Further, HBA/ additional HBA will also be admissible for enlargement/ alterations/ reconstruction of a house/ flat acquired by the employee from his own means/ resources, provided a clear marketable title for the said property vests in the employee and the same is not mortgaged/ charged to any other agency/ financial institution.

[No. Co/HR/Pol/P-4, dated 14.3.2000]

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(d) As in case of initial advance, sanction of additional HBA towards reimbursement of expenses incurred for enlargement of an existing house (undertaken before completion of waiting period of 3 years between 2 advances) is allowed to the extent that the additional HBA sought was for repayment of loans taken from a Housing Finance Agency/ Bank or a CPF advance/ own resources i.e. personal savings. This will be allowed only after the employee completes the eligibility criterion and subject to satisfying all other conditions as provided in the HBA rules.

[No. Co/HR/Pol/P-4, dated 14.3.2000] (e) In case of enlargement of existing house/ flat, complete details of

such enlargement will be submitted by the employee. (f) In case of acquisition of a new property, the quantum of additional

HBA will be limited to outstanding Principal loan at the time of refund/ adjustment of earlier loan, plus the difference between the amount of HBA sanctioned earlier and the ceilings as stipulated in para 6.1.1. The additional HBA in such cases will be allowed only after full refund/ adjustment of the outstanding HBA (principal + interest) either through sale of property earlier acquired or through other sources. In the event of adjustment of previous outstanding advance including accrued interest out of the additional advance, the property acquired earlier shall be demortgaged only after the advance released in respect of the old property is fully recovered/ realised.

[No. Co/HR/Pol/P-4, dated 24.2.1999 and 28.5.1999] CLARIFICATION For purposes of working out the entitlement of an employee for additional HBA in respect of second property, the monthly instalments already recovered from the employee, will not be taken into consideration.

[No. Co/HR/Pol/P-4, dated 28.5.1999] (g) In case of enlargement of existing property, the quantum of additional

HBA will be limited to the difference between the employee’s current maximum HBA entitlement and the amount of HBA drawn earlier, or the cost of enlargement, whichever is lower.

(h) The employee will be required to mortgage the new/ enlarged property to the company as per the requirement under the HBA rules.

(i) The additional HBA comprising the refunded amount (i.e. the amount refunded on sale of previous property) plus increased loan entitlement admissible in case of purchase of a new property, or the increased loan entitlement in case of enlargement of existing property, will be disbursed to the employee on his completing the necessary formalities required under the HBA rules.

(j) Whereas the agreement for the additional HBA will be for the total amount disbursed to the employee, which includes the refunded amount comprising of Principal plus Interest, only the portion of principal amount included in the additional HBA will attract the applicable rate of interest under the HBA rules.

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(k) In such cases, where the refunded amount comprises principal plus interest only the portion of principal amount included in the additional HBA will attract the applicable rate of interest under the HBA Rules.

[No. Co/Pers/Pol/P-4, dated 29.1.1997] 6.3.2 In cases where there is an increase in the cost of property as being

procured from a Housing Authority/ Limited Companies/ Registered Builder or Promoter/ Cooperative Society or where the initial cost of the property as accepted by the Company was higher than the entitled amount of the employee, the employees will be permitted to draw such increased cost as HBA within the revised HBA entitlement of the employee, even though the HBA sanctioned earlier was fully disbursed.

[No. Co/Pers/Pol/P-4, dated 29.1.1997 and 31.3.1997] 6.3.3 In cases where an employee has funded the cost of flat/ house over and

above the entitled HBA from out of his/ her own sources i.e. personal savings, the benefit of enhanced HBA is to be extended on the similar lines as done in the cases where the extra cost was funded through PF loan or loan from outside agency, without permitting a change in the original cost of the property.

[No. Co/Pers/Pol/P-4, dated 1.12.1997] 6.3.4 The facility of additional HBA will be allowed only once in the entire service

span. [No. Co/HR/Pol/P-4, dated 24.2.1999]

CLARIFICATION If additional HBA has been sanctioned/ drawn by an eligible employee for enlargement of existing property or for acquiring another unit, he will not be subsequently eligible for balance/ further HBA irrespective of whether he/ she has disposed off one or either of the properties acquired earlier from the advance drawn from the Company. In the event where an employee proposes to dispose off a property consequent upon grant of additional HBA, the employee will be necessarily required to refund outstanding principal plus interest towards said property in order to get the property demortgaged/ original documents released.

[No. Co/HR/Pol/P-4, dated 30.1.2002] 6.4 When GAIL takes over the liability of a person joined from another PSU/ Govt.

department, for the settlement of House Building Advance outstanding against him in his previous organisation, GAIL makes the payment towards principal and interest thereon outstanding against him. The Principal interest thus paid will be shown separately and interest at the rate applicable in GAIL will be charged only on the amount remitted towards the principal sum. In such cases, while determining the maximum ceiling of advance admissible in GAIL, the payment made towards the principal amount (and not the interest) outstanding against the employee in the previous organisation may only be taken into account.

7. INTEREST 7.1 An advance granted under these rules shall carry simple interest from the date of

payment of the Advance, the amount of interest being calculated on the balance outstanding on the last date of each month.

7.2 On HBA sanctioned from 1st May 2004 and onwards, rate of Interest shall be 5% per annum on monthly reducing balance and linked to Prime Lending Rate (PLR)

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for revision in future on account of its upward movement. Slabs of rate of interest viz. 5.5 % per annum up to Rs. 5.00 lac and 8% per annum above Rs. 5.00 lac, on outstanding HBA as on 30th April 2004, shall remain unchanged.

7.3 In the event of delay in settlement of HBA, employees will be liable for recovery of

penal interest/ token penalty in terms of the following provisions :

(i) In case advance amount is not utilised by the employee within the stipulated period of 3 months from date of drawal, penal interest @15% per annum will be charged from the employee for the period of default on the total amount.

(ii) In case advance amount is utilised by the employee within the stipulated period of 3 months but he has failed to settle the same within the stipulated period due to various reasons, a token penalty @2% of the advance amount will be levied provided the employee gives justified reasons for such delay in settlement.

(iii) In case advance amount is partially utilised by the employee within the stipulated period of 3 months, penal interest @15% per annum on the unutilised amount will be charged (in line with Sub-Para 7.3(i) above) and token penalty @2% on the utilised amount of the advance will be charged (in line with Sub-Para 7.3(ii) above).

[No.CO/Pers/Pol/P-4, dated 25.2.1999 and No.CO/HR/Pol/P-208, dated 23.1.2004]

CLARIFICATION In the event of delay in utilisation of the advance amount beyond the stipulated period of 3 months and subsequent settlement of the same, both (i) penal interest @15% p.a. for the period of default; and (ii) token penalty @2% of advance amount, will be recovered from the employee.

[No. CO/HR/Pol/P-208, E-mail dated 13.4.2004]

7.4 INTEREST SUBSIDY 7.5.1 Employees eligible for grant of House Building Advance may avail of a House

Building Loan Scheme of a recognized financial institution like LIC/ HDFC etc. In such cases, GAIL will grant interest subsidy to them to meet the difference in amount between the Company’s rate of interest and the higher interest rate charged and actually paid to LIC/ HDFC etc., subject to the condition that the subsidy will be limited to the amount which would have been admissible to the concerned employee under GAIL HBA rules.

7.5.2 No subsidy shall be allowed on the interest levied by the LIC/ HDFC etc. arising from default and/or delay in payments by the employee. The subsidy will be paid after actual verification of receipts issued by the LIC/ HDFC etc. Only financial institutions that are accredited/ recognised by the government will be reckoned for this purpose.

8. RE-PAYMENT OF THE ADVANCE

8.1 Advance granted to an employee under these Rules, together with interest thereon shall be repaid in full, in monthly installments, before superannuating/ separation from service of the Company. The number of monthly installments, within which both the Advance and the interest thereon shall be recovered, shall not exceed 300 from the date of commencement of repayment of the first

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installment. It will, however, be open to an employee to repay the amount in a shorter period, if he/ she so desires. The recovery of the amount of the Advance shall be made first in not more than 225 monthly installments and the interest shall be recovered in not more than 75 monthly installments. PROVISO Employees who (i) have been allowed additional HBA/ reimbursement of loans taken from Banks, Financial Institutions, etc on or after 1.5.2004 as per their revised HBA entitlement; and (ii) have atleast repaid 120 installments towards HBA Principal; may on submission of application repay outstanding HBA (including accrued interest thereon) in such a manner that repayment of outstanding HBA Principal and accrued Interest is made in 3/4th and 1/4th of the balance number of installments (from out of a maximum of 300 which started from the date of commencement of recovery of Principal towards 1st HBA), respectively. The above principle is explained with the help of hypothetical illustration :

“If an employee has repaid part of outstanding HBA Principal in 175 installments and has now been allowed additional HBA in terms of his/her revised entitlement, then recovery of the outstanding HBA Principal + additional HBA Principal would have ordinarily been made in 225 - 175 = 50 installments and interest accrued thereon in 75 installments. However, with this relaxation, it may be made in 94 installments [i.e. 3/4th of balance 50 + 75 = 125 installments]. Thereafter, recovery of outstanding accrued interest may be made in remaining 31 installments [i.e. 1/4th of aforesaid balance of 50 + 75 = 125 installments].”

[No.Co/Pers/Pol/P-4, dated 19.8.1997 and No.CO/HR/Pol/P-4, dated 24.2.1999, 22.3.1999 and 29.9.2004]

CLARIFICATION The enhancement of retirement age from 58 to 60 years shall not be taken into account for rescheduling the Principal + Interest in case no additional loan is sanctioned.

[No. Co/HR/Pol/P-4, dated 28.5.1999] 8.2 The amount to be recovered monthly shall be fixed based on the total amount of

Advance sanctioned and the same will be in whole rupee except in the case of the last installment when the remaining balance, including any fraction of a Rupee, shall be recovered. The installment amount towards recovery of Advance and interest shall be the same.

CLARIFICATION When an employee joins GAIL from other PSU/ Government Department, the liability for the settlement of House Building Advance and conveyance advance outstanding against him in his previous organisation is taken over by GAIL and the payments made towards principal amount and interest thereon outstanding against him in that organisation is shown separately and interest at the rate applicable in GAIL is charged only on the amount remitted by GAIL towards the principal sum. Accordingly, the payment made to his previous organisation on account of interest is shown separately and recovered along with interest to be accrued on the amount remitted in settlement of outstanding principal amount, as done in the case of employees granted loan by GAIL. 8.2.1 In case of an employee with lesser period of service, the number of

instalments for repayment of Principal plus Interest shall be worked

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accordingly to ensure recovery of full amount during the service span available.

[No. CO/HR/Pol/P-4, dated 24.2.1999] 8.3 Recovery of Advance granted partly for purchase of land and partly for

construction shall commence from the pay of the month following the completion of the house or the pay of the 24th month after the date on which the installment for purchase of land is paid to the employee, which is earlier.

8.4 Recovery of Advance granted 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 the 18th month after the date on which the first installment of the Advance is paid to the employee, which is earlier. CLARIFICATION (A) In the event that an employee having less than 25 years of service in the

Company wishes to effect the recovery of initial HBA immediately after drawal of advance, the same shall be allowed without waiting for the period of 18/ 24 months as applicable in terms of Sub-para – 8.3 and 8.4 above.

[No. Co/Pers/Pol/P-4, dated 7.5.1999] (B) In case of purchase of second property, the moratorium of 18/ 24 months,

in terms of Sub-para – 8.3 and 8.4 above, shall not be allowed, since the subsequent HBA for a second dwelling unit is by way of an additional advance only. In such cases, the recovery of Principal amount will start immediately without the moratorium allowed in case of initial HBA.

[No. Co/HR/Pol/P-4, dated 28.5.1999] 8.5 In case of Advance taken for the following purpose, recovery shall commence

from the pay of the month following the month in which the advance is drawn. i) For purchasing a ready built new house/ flat; ii) For purchasing or acquisition of old house; and iii) For woodwork and amenities for ready built house/ flats purchased from

Government agencies like Delhi Development Authority/ Cooperative Group Housing Societies or private builder or self-constructed house.

8.6 In order to avoid hardship to an employee who is due to retire within 25 years of the date of application for the grant of advance and under the service rules applicable to him, is eligible for gratuity under the relevant Rules of the Company, the employee may be permitted to repay the Advance with interest in convenient monthly installment (the amount of the installment shall not be less than that worked out on the basis of repayment within a period of 25 years) during the remaining period of his service, provided he agrees to incorporation of a suitable clause in the prescribed Agreement and Mortgage Deed Form to the effect that the Company shall be entitled to recover the balance of the said Advance with interest remaining unpaid at the time of the retirement, death, resignation preceding retirement from the whole or any specified part of the gratuity that may be sanctioned to him.

8.7 In case the employee does not repay the balance of the Advance due to the Company on or before the date of his retirement, it shall be open to the Company to enforce the security of the mortgage at any time thereafter and recover the

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balance of the Advance due together with the interest and cost of recovery by sale of the house or in such other manner as may be permissible under the law.

8.8 Recovery of Advance shall be effected through monthly Pay/ Leave Salary bills of the employee concerned. The recoveries shall not be held up or postponed except with the prior concurrence of the Competent Authority.

8.9 If an employee ceases to be in service for any reason other than normal retirement/ superannuation or if he/ she dies before repayment of the Advance in full, the entire outstanding amount of the Advance along with interest shall become payable to the Company, forthwith. The Company may, however, in deserving cases, permit the employee concerned, him/ her successors in interests, as the case may be, or the sureties wherever applicable, if the house has not been completed and/or mortgaged to the Company by that time, to repay the outstanding amount together with interest thereon calculated as in Rule - 7 above, in suitable instalments. Failure on the part of the employee concerned or his/ her successors/ sureties (as the case may be) to repay the Advance for any reason whatsoever, will entitle the Company to enforce the mortgage, agreements, and Surety Bonds and take such other action to effect recovery of the outstanding amount from dues payable or assets belonging to the employee and his sureties. 8.9.1 Insurance coverage under the ‘House Building Advance Group Term Life

Insurance Scheme’ as notified from time to time will be applicable on the total advance outstanding and interest accrued thereon with the employee and accordingly the premia will be charged from him/her as per the notified rates.

[No.Co/HR/Pol/P-4 dated 6.10.1993 and No.CO/HR-C&S/HBA GIS/2001 dated 8.10.2001]

8.9.2 The coverage under the Group Insurance (HBA) Scheme will cease to operate in respect of old property from the date the outstanding loan and accrued interest is refunded to the company. However, coverage will be continued from the date of disbursement of additional loan in respect of the new property. The employee will be required to bear the insurance contribution as fixed from time to time towards the loan as availed by him as per existing rules.

[No. Co/Pers/Pol/P-4, dated 29.1.1997] 8.10 The property mortgaged to the Company shall be reconvened to the employee

concerned (or his successors in interest, as the case may be), after the Advance, together with the interest thereon, has been repaid to the Company in full.

8.11 In case of an employee covered under the proviso to Para (4.1) the repayment of outstanding Advance along with accrued interest to the parent organisation will be subject to the following conditions: 8.11.1 He shall consent of his parent organisation to release the title deeds of

the property and recovery the deeds to the Company on receipt of the total outstanding amount direct from the Company.

8.11.2 He shall execute an agreement to mortgage the property in favour of the Company in the prescribed Performa.

8.11.3 He shall also furnish surety as prescribed under these Rules.

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8.11.4 The Competent Authority may ask for satisfactory evidence that the Advance already taken is dully secured on the basis of mortgage of the property and its lost value.

8.12 REGULATION DURING SUSPENSION PERIOD

8.12.1 In the event of suspension of an employee, no fresh Advance, including installment of the Advance sanctioned earlier, will be released during the period of suspension.

8.12.2 During the period of suspension, no recovery towards Advance or interest accrued against an Advance released earlier will be effected from the Subsistence Allowance payable to employee.

[No. CO/HR/Pol/WR-14, dated 11.9.2001] 8.13 REGULATION DURING THE PERIOD OF EOL

At the time of processing any HBA request (including installment thereof), the leave record of the employee will be examined and his/ her eligibility for the same shall be subject to the following provisions : 8.13.1 If the employee is on EOL for a period of 90 days or more in a calendar

year, that particular year shall not be reckoned for determining the eligibility for the said Benefit. No advance will be sanctioned in a year if in the previous year, the employee was on EOL for 90 days or more.

8.13.2 No further installment shall be released to an employee for the next 12 months from the date of his/ her joining back after EOL period, if he/she was on EOL for 90 or more days during the preceding 12 months.

8.13.3 If an employee has remained/ continues to remain on EOL on more than 2 occasions (spanning 90 days each) after the release of the full Advance, the concerned HR Deptt. shall issue a Notice to the employee to refund the outstanding Advance along with the Interest accrued in lump-sum within 90 days from the date of issue of the Notice.

[No. CO/HR/Pol/P-39, dated 27.6.2001 and 22.8.2001] 8.14 REFUND OF OUTSTANDING LOAN AND INTEREST ACCRUED THEREON

8.14.1 The original title documents shall be returned to the concerned employee only after the outstanding HBA, including the interest accrued thereon, is fully repaid/ refunded. However, to facilitate the sale of the property, duly attested photocopies of the original documents can be released to the employee to enable him/ her to finalise the sale/ deal. The buyer of the property can also be allowed to inspect the documents, if he/ she so desires, in the presence of the dealing executive for processing the HBA cases.

[No. CO/HR/Pol/P-4, dated 28.5.1999] 8.14.2 Employees may refund the outstanding loan amount directly to the F&A

Department after ascertaining the exact amount (Principal plus accrued Interest). In such cases, the employees will also be required to intimate the HR department of the details of amount being refunded- and credited to Company’s account, preferably with the endorsement to that effect from F&A Department.

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[No. 22/02/53/537/PC/99, dated 27.9.1999] 8.14.3 After the refund/ repayment of outstanding HBA, including the interest

accrued thereon, original title documents shall be returned to the concerned employee and the property mortgaged to the Company will be re-conveyed to the concerned employee through issuance of a Certificate of Discharge of Mortgage Deed.

[No.CO/HR/Pol/P-4, dated 12.3.1999] 8.14.4 Employees desirous of refunding a part of the outstanding HBA may be

allowed to do so at any point of time. After the refund has been made, monthly installment for the Advance will be reworked effective from the following April and communicated afresh to the concerned quarters for regulation by HR Department.

[No. Co/HR/Pol/P-4, dated 13.3.2002]

8.14.5 The request for de-mortgaged of the first property from an employee can be formally considered only after the employee has repaid/cleared all outstanding dues in respect of the same.

[No. Co/HR/Pol/P-4, dated 14.12.2001] 9. DISBURSEMENT And SECURITY

9.1 An Advance required partly for the purchase of land and partly for constructing a single or double or triple storied new house shall be paid as follows: 9.1.1 An amount not exceeding the sanctioned Advanced will be payable to the

employee 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 and furnishing two sureties from two regular employee of the Company in the prescribed Format. 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 Company within three months of the date on which the above amount has been drawn or within such further time as the Company may allow, failing which the applicant shall be liable to refund, at once, the entire amount to the Company, together with interest thereon.

9.1.2 The balance of the sanctioned Advance will be payable as under : (a) For construction of single storey house

i) 40% of the balance amount on mortgaging and registering the deed on the land and the house to be built thereon and submission of the same along with the original deed and building plan duly approved by the local authorities.

ii) 30% of the balance amount on reaching plinth level and production of certificate to that effect by the employee.

iii) 30% of the balance amount on reaching roof level and production of certificate to that effect by the employee.

(b) For construction of double storey house i) 30% of the balance amount on mortgaging and registering the

deed on the land and the house to be built thereon and

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submission of the same along with original sale deed and the building plan duly approved by the local authorities.


iii) 20% of the balance amount on reaching roof level of the ground floor and production of certificate to that effect by the employee.

iv) 20% of the balance amount on reaching roof level of the first floor and production of certificate to that effect by the employee.

(c) For construction of triple storey house i) 30% of the balance amount on mortgaging and registering the

deed on the land and the house to be built thereon and submission of the same along with original sale deed and the building plan duly approved by the local authorities.


iii) 20% of the balance amount on reaching roof level of the ground floor and production of certificate to that effect by the employee.

iv) 20% of the balance amount on reaching roof level of the first floor and production of certificate to that effect by the employee.

v) 10% of the balance amount on reaching roof level of the second floor and production of certificate to that effect by the employee.

[No. CO/HR/POL/P-4, dated 12.3.1999] 9.2 An Advance required for construction a single or double or triple storey new

house or enlarging living accommodation in an existing house shall be paid as follows : (a) For construction of single storey house or enlargement of living

accommodation. i) 40% of the amount on mortgaging and registering the deed on the land

and the house to be built thereon and submission of the same along with the building plan duly approved by the local authorities.

ii) 30% of the loan amount on reaching plinth level and production of certificate to that effect by the employee.

iii) 30% of the loan amount on reaching roof level and production of certificate to that effect by the employee.

(b) For construction of double storey house or enlargement of living accommodation. i) 30% of the loan amount on mortgaging and registering the deed on the

land and the house to be built thereon and submission of the same along with the building land duly approved by the local authorities.


iii) 20% of the loan amount on reaching roof level of the ground floor and production of certificate to that effect by the employee.

iv) 20% of the loan amount on reaching roof level of the first floor and production of certificate to that effect by the employee.

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(c) For construction of triple storey house or enlargement of living accommodation. i) 30% of the loan amount on mortgaging and registering the deed on the

land and the house to be built thereon and submission of the same along with the building land duly approved by the local authorities.


iii) 20% of the loan amount on reaching roof level of the ground floor and production of certificate to that effect by the employee.

iv) 20% of the loan amount on reaching roof level of the first floor and production of certificate to that effect by the employee.

v) 10% of the loan amount on reaching roof level of the second floor and production of certificate to that effect by the employee.

[No. CO/HR/POL/P-4, dated 12.3.1999] CLARIFICATION In certain cases it is observed that while requesting for the last installment of the sanctioned loan, the employee does not mention the full amount of the last installment. Instead, they draw the last installment leaving a small amount as balance of the sanctioned amount. In this connection it is clarified that the last installment of loan would cover the full sanctioned amount and no employee shall be permitted to draw a lesser amount than the full amount of last installment and to leave any balance sanctioned amount. This may be ensured in all case where HBA is sanctioned.

9.3 An Advance required for purchasing a ready built house shall be paid as follows : 9.3.1 In case of purchase of ready built new house or a new flat the Company

may sanction the payment of the entire amount required by, and admissible to the employee in one lump-sum or in suitable instalments at the discretion of the Company on the employee’s executing an agreement in the prescribed Form for the repayment of the loan and furnishing two sureties from two regular employees of the Company in the prescribed Form. The acquisition of the house must be completed, and the house mortgaged to the Company within 3 months of the drawal of the Advance, failing which the advance, together with the interest thereon, shall be refunded to the Company forthwith unless an extension of this time limit is granted by the Company.

9.3.2 In case of purchase or acquisition of old house/ tenement already constructed and ready for possession, the entire amount of Advance shall be paid in one lump-sum on the employee executing an Agreement in the prescribed form for the payment of the loan and after obtaining of Surety Bounds from two regular employee of the Company of adequate status having sufficient length of service upto the period or recovery of Advance with interest from the employee. The acquisition or purchase of the house must be completed and the property mortgaged with 3 months of the drawal of the Advance.

9.4 In case of purchase of house/ flat under Self Financing Housing Scheme or from Housing Cooperative Societies, the disbursement of Advance will be further subject to the following :

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9.4.1 The employee concerned will be required to submit/ produce the Agreement and Sureties as referred to in Sub-paras (9.1 & 9.3) above.

9.4.2 The employee shall produce either a mortgage permission or an assurance from the agency concerned that the latter shall grant the mortgage permission after completion of house/ flat in favour of the Company.

9.4.3 In case the agency concerned deducts any part or the whole of the amount deposited with them due to non-compliance by the employee with any of their requirements or for any other reasons, the same will be on the individual employee’s account and the Company will not undertake any liability of the same.

9.4.4 The interest, if any, paid by the agency concerned on the money advanced by the Company will accrue to the Company only and not to the employee.

9.4.5 The payment will be made by the Company through Cheque/ demand draft directly or through the employee concerned to the agency after completion of necessary formalities by the employee concerned.

9.4.A. Sanction of HBA for providing woodwork and other facilities in a built-up house/ flat purchased from Government. Agencies and/ or Cooperative Group Housing Societies or a private builder or self-constructed house in cases where the cost estimate does not provision for the basic woodwork, shall be allowed on the basis of : (i) An inspection report by an executive of the Company, where GAIL office

exists, stating that the referred house/ flat does not provide for the basic woodwork as indicated at para – 5.1.10 above.

(ii) In case of cities/ towns/ locations where GAIL does not have an office, the employee will be required to submit a certificate from a registered architect/ builder clearly mentioning that the house/ flat to be purchased/ already purchased does not have the woodwork as specified at para – 5.1.10 above.

The sanction of HBA shall be based on proper estimate, which may be subject to requisite vetting/ inspection. While submitting their applications for sanction of HBA, concerned employees may ensure that the estimates clearly indicate whether basic woodwork as indicated at para – 5.1.10 above has been provisioned or not.

[No. Co/HR/Pol/P-4, dated 2.11.1999] 9.4.B. Employees who have and/ or will become members of the GAIL Karamchari

Sehkari Awas Swas Samiti Limited - Gautam Budh Nagar (U.P.) will be allowed HBA subject to compliance with the following conditions : (i) The construction of the houses is to be completed within two years as

against stipulated three years in terms of GNIDA guidelines and recovery of advance shall commence strictly as per rules.

(ii) No permission will be granted for sale of the plot as mortgaged to GAIL. (iii) The individual employee shall apply for advance along with the break-up/

estimate of the expenditure to be incurred towards cost of the residential

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plot and construction thereon, duly supported by the appropriate information regarding resources from where the funding will be arranged.

[No. CO/HR/Pol/P-4, dated 22.2.2001] 9.5 SURETY

9.5.1 The employee shall get executed the surety Bound as referred to in Sub-paras (9.1 & 9.4) from other regular employees of the Company. An employee of the Company shall be eligible to stand as a surety if : a) He has satisfactorily completed the period of probation stipulated, if

any. b) His Salary/ Wages is not less than two – third of that of the applicant. c) He has not stood as surety in more than two cases of House Building

Advance. d) He has sufficient length of service upto the period of recovery of

Advance with interest. 9.5.2 Where a surety employee is likely to leave the employment of the

Company or ceases to be in the employment of the Company on account of resignation, retirement, death or for any other reason before the borrowing employee has executed the deed mortgaging the property to the Company or has not repaid the Advance in full (including interest thereon) the latter shall arrange to get executed another surety bond from another substituted surety within one month of the communicate on to this effect from the HR Department.

9.5.3 The liability of the surety will extend till the house built/ purchased is mortgaged to the Company or till the Advance in full (including interest thereon) is repaid to the Company, whichever is earlier.

9.5.4 In the event of enhancement/ revision of the HBA ceiling, where eligible employees are being sanctioned additional loan, either of the following two approaches shall be adopted with regard to submission of sureties :

(i) The employee may be asked to resubmit fresh Surety Agreement to cover the full advance amount (including additional HBA which may be done by the two earlier sureties).

OR (ii) Where the additional loan amount is limited to Rs. 1 lac, one

additional surety may be acceptable. In all cases, where additional loan is more than Rs. 1 lac, the employee may invariably be asked for option – (a) or at least two sureties.

In case of option - (b), i.e. where a third surety is added, it will be necessary to inform and obtain consent of the previous two sureties for the additional/ third surety before release of the additional loan amount.

[No. Co/Pers/Pol/P-4, dated 29.10.1997] 9.6 Utilisation of the Advance for a purpose other than that for which it is sanctioned,

shall render the employee liable to suitable disciplinary action under the GAIL Employees’ (Conduct, Discipline and Appeal) Rules or Standing Orders as the case may be. He may also be called upon to refund to the company forthwith the

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entire advance drawn by him together with interest accrued thereon till the date of refund in accordance with Para – 7 of these Rules.

9.7 The period for producing the sale deed in respect of the developed plot of land referred to in Sub-para - 9.1 may be extended by the Company by a reasonable time after due satisfaction 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 24th month after the date of drawl of the first installment of the Advance or in such period by which the time for the completion of the house is extended under Para – 10 (a) (ii).

9.8 In the event of increase in the entitlement of an employee arising out of revision of Pay Scales and Dearness Allowance or promotion to a higher grade with retrospective effect or change in the overall ceiling of House Building Advance, the benefit of the revised entitlement shall be allowed to employee even where he has drawn full sanctioned amount which is lower than the prescribed ceiling subject to the following conditions : (a) Cost estimate approved at the time of initial sanction of House Building

Advance was higher than maximum ceiling of HBA admissible under the Rules.

(b) Employee Concerned has entered into second mortgage with recognised financial institution like HDFC, LIC etc. for raising the difference between actual cost estimate and the entitlement as allowed to him.

Such cases will be considered normally within 60 days from the date of issue of orders for implementation of revised pay scales or the date of issue of orders enhancing the ceiling of HBA or change in the mode of calculation of entitlement of HBA, as the case may be.

[No.Co/Pers/Pol/P-4, dated 7.7.1993 and No.CO/HR/Pol/P-90, dated 24.5.2002] 9.9 REPAYING CAPACITY

House Building Advance will be sanctioned to the eligible employees within the prescribed ceiling subject to the condition that total deduction (statutory/ non-statutory) on various accounts along with monthly installment of the advance to be sanctioned do not exceed 80% of the following income heads : (i) Basic Pay (BP) (ii) Special Pay (SP) (iii) Special Pay (on redesignation) [SP (on redesignation)] (iv) Special Personal Pay (SPP) (v) Personal Pay (on stagnation) [PP (on stagnation)] (vi) Dearness Allowance (DA) (vii) Productivity Allowance (viii) Washing Allowance (ix) Performance Payment Scheme (PPS) – notionally taken @7% of Basic Pay

[including SP, SP (on redesignation), PP (on stagnation)] (x) City Compensatory Allowance (CCA) (xi) Canteen Subsidy (renaming under consideration)

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(xii) Professional Updation Allowance (xiii) Non-practising Allowance (NPA) (for Medical Officers) However, in respect of an employee covered under the Payment of Wages Act 1936, the relevant provisions of the said Act shall be kept in view while sanctioning the Advance.

[No.CO/Pers/Pol/P-4, dated 3.3.1994; No. CO/HR/Pol/P-4, dated 24.2.1999; No.Co/HR/Pol/P-4, dated 22.3.1999; No. CO/HR/Pol/WR-13, dated 27.4.2000; and

No.Co/HR/Pol/P-4, dated 3.6.2004] 9.10 The admissible amount of House Building Advance to an employee is to be

calculated on the date of application as per the procedure detailed at Para – 11. Once an amount of advance is sanctioned which has to be in relation to the date of application of grant of advance, the same is not subjected to change for any reason thereafter whatsoever.

[No.Co/Pers/Pol/P-4, dated 20.7.1995]

10. CONSTRUCTION, MAINTENANCE 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 approved plan and specification on the

basis of which the amount of Advance has been computed and sanctioned. The employee shall furnish certificate from a registered architect when applying for instalments of the Advance admissible at the plinth/ roof level, that construction is being carried out in accordance with the plan and estimates and that the construction has actually reach plinth/ roof level; and the employee would have to certify that the amount already drawn has actually been used on the construction of the house. The Company may if necessary arrange to have an inspection carried out to verify the correctness of the certificates.

ii) Completed within 18 months (in case of construction of house only)/ 24 months (in case of purchase of land and construction of house thereon), as the case may be, of the date on which the first installment of the advance is paid to the employee concerned. Failure to do so will render the employee liable to refund the entire amount of advanced to him together with interest calculated as in Para – 7 above, in lump-sum. An extension of the time limit may be allowed up to a reasonable period by the Company in those cases where the work is delayed due to circumstances beyond the control of the employee. The date of completion of construction must be reported to the Company without delay.

b) Immediately on completion or purchase of the house, as the case may be, the employee concerned shall insure the house at his own cost with the Insurance Company for a sum not less than the amount of the Advance and shall keep it so insured against damage by fire, flood and lightning etc. till the Advance is fully repaid to the Company. Interest of the Company should invariably be disclosed in the insurance policy. The premia must be paid regularly and the premium receipts produced for inspection by the Company.

c) The house should be maintained in good condition by the employee at his own cost. He shall also keep it free from all encumbrances, shall continue to pay all the Municipal and other local rates and taxes regularly until the Advance has been repaid to the Company in full.

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NOTE Furnishing a false certificate will render the employee concerned liable to suitable disciplinary action under the rules of service applicable to him. He may also be called upon to refund to the Company forthwith the entire Advance drawn by him together with interest accruing thereon in accordance with Para –7 of these Rules.

11. PROCEDURE FOR PROCESSING APPLICATIONS

11.1 Application for grant of the Advance shall be submitted in the prescribed form through proper channel. The following documents should accompany the applications: a) In cases where the employee happens to be in possession of land an d

desires to build a new house on it, a copy of the sale deed or other proof of the employee having a clear title to the land on which the house is proposed to be built, building plan, detailed estimate and abstract estimate, specifications along with the site plan. If the land happens to be leasehold, an attested copy of the lease – deed should be enclosed. The site plan and building plan must be duly approved by the Municipality or other local bodies concerned.

b) 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 employee possesses an indisputable title to the property in question. The site plan should also be furnished.

c) In case where the employee desires to purchase land, an attested copy of 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 employee within a period of two months from the date of his letter may be forwarded.

d) In case of construction of a new house or enlargement of the living accommodation in an existing house, the documents mentioned in Para 11.1 (a) above to be submitted to the Company.

e) In cases where a ready built new house is intended to be purchased, the employee shall be required to produce proof of negotiations for the purchase of house together with a copy of the building plan and the site plan and also a certificate that the purchase price is not 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 house.

f) In case where an old house or tenement already constructed and ready for possession, is intended to be purchased OR a constructed house/ flat acquired by the employee from his own means/ resources, is intended to be enlarged/ altered/ reconstructed, such applications shall be examined/ considered on the basis of the remaining anticipated life of the old house in question and current market value as assessed/ certified by a Government approved Assessor of Immovable property duly certified by the Company’s Engineering Department.

[No. Co/HR/Pol/P-4, dated 14.3.2000] 11.2 While according sanction to the grant of Advance, the Company will also

authorise disbursement of the first installment of the Advance in accordance with the basic guidelines set out hereinafter and herein, before subject to the

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observance of prescribed formalities by the borrowing employee. These include execution of Agreement, Surety Bond and Mortgage Deed.

11.3 Employees seeking Additional HBA are required to apply for the same in an application giving details of housing loan earlier sanctioned with date, amount so far disbursed/ drawn, amount outstanding (principal + interest accrued thereon) etc. to the concerned HR Department. Upon receipt of the application, the HR Department shall recalculate his revised entitlement on his existing pay plus DA on the date of the said application and sanction additional loan as admissible, subject to fulfilling other conditions viz. repaying capacity, execution of Surety Bond and Mortgage Deed etc. covering the total revised housing loan now sanctioned.

[No. Co/Pers/Pol/P-4, dated 26.3.1997] 11.4 All such cases where HBA is required for acquisition of property through a Power

of Attorney (POA) holder shall be referred to Corporate HR Department after due examination at the Work Centre/ Unit level prior to sanction of the Advance. Corporate HR Department shall in turn examine such referred cases in consultation with Corporate Legal Department and convey the decision to the concerned Work Centre/ Unit.

[No. Co/HR/Pol/P-4, dated 12.5.1999] 11.5 The original files pertaining to HBA will be retained at the employee’s current

place of posting. In the event of transfer of an employee, his/ her HBA related file in original will also be forwarded to his new place of posting along with his Personal record. It shall, however, be the responsibility of the concerned HR Incharge that all the original title related documents like mortgage deed, sale deed, approvals, sanctions etc. are duly reflected in the forwarding letter/ IOM to the HR Incharge of the employee’s new place of posting whose HR department would duly confirm back to the forwarding work centre that all the listed original documents have been safely received along with the advance file. Care may be taken to send these documents along with other Advance related files/ Personal files in person rather than through mail at the time of effecting transfers by the HR Incharges.

[No. Co/HR/Pol/P-4, dated 29.4.1999] 11.6 The No Objection Certificate, if insisted by the Bank/ Financial Institution for

grant of loan directly to an employee may be issued from GAIL with a safeguarding clause to the effect that GAIL will not be liable in case of default, if any, on the part of the employee. The concerned employee may also be advised to ensure compliance of the provisions of the CDA Rules/ Standing Orders, as applicable in case of such transactions.

[No. Co/HR/Pol/P-4, dated 19.1.1999] 12. GENERAL

12.1 The Company and/ or the Officer of the Company authorised for the purpose of these Rules shall ensure that the purchase/ construction/ enlargement of the house is completed within the period specified in the Rules.

12.2 The prescribed mortgage deed is executed immediately on purchase of the house/ land and the document kept in safe custody after registration.

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12.3 Monthly recovery of instalments of repayment of the Advance commences from the due date and is made regularly from the pay/ leave salary etc. bill of employee concerned thereafter.

12.4 In case where the house is not used for residential purposes of the employee and/ or his family, permission of the Competent Authority should be obtained by him before renting the same.

12.5 Stamp duty chargeable on all documents, registration and other expenses to be incurred for the completion of legal and other formalities required in connection with the grant of Advance will have to be borne by the employee concerned.

12.6 On receipt of an application from the employee, HR Department will take necessary action for processing the application. The HR Department will scrutinise the application with reference to the conditions of eligibility as provided under these rules as well as priorities etc. if any laid down for dealing with such cases so as to satisfy themselves that all the conditions have been fulfilled. HR Department will also satisfy themselves of the correctness of the fact stated in the application as well as examine the title deeds and other documents furnished in compliance with the Rules to make sure that the applicant does, in fact, process a clear marketable title free from encumbrance and attachments to the property in question. After examining all the plan, specifications and estimates submitted along with the application and all other relevant details, the application will be forwarded along with the recommendation, as to the amount of Advance that could be granted to the concerned applicant and its repayment terms, to the Competent Authority for his/her consideration.

12.7 The Competent Authority after satisfying himself that all the conditions have been fulfilled and keeping in view the recommendations made, will accord sanction to the grant of Advance specifying the amount of Advance so sanctioned as well as the repayment period, subject to the terms and conditions of grant of Advance as per rules herein before and herein after.

12.8 If the application for grant of HBA or documents furnished alongwith it are found incomplete or incorrect or if any lapse is noticed in this regard, the employee responsible and the officer processing such documents will be liable for disciplinary action; besides any other action that may be considered appropriate by the Competent Authority.

12.9 The grant of Advance under these rules shall always be subject to availability of funds.

12.10 Notwithstanding anything contained herein, the employee shall be bound to comply with any supplementary rules/ orders which may be made subsequently in this regard from time to time with a view to safeguard Company’s interest as well as proper and faithful observance of the provisions of these Rules.

12.11 The power to interpret the Rules shall lie with the Chairman and Managing Director/ Director (HR) of the Company whose decision shall be final and binding.

12.12 The Company reserves the right to modify, cancel, add or amend these rules.

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