GUIDELINES ISSUED FOR SANCTION OF HOUSE BUILDING ADVANCE TO CENTRAL GOVT. EMPLOYEES PURCHASING READY BUILT FLATS/HOUSES FROM PVT. BUILDERS

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Government has issued new guidelines to consider cases relating to sanction of House Building Advance (HBA) to Central Government Employees for purchase of ready built flats/houses from private builders registered under the Companies Act or firms of builders registered with Registrar of Firms under the Indian Partnership Act: -

1. The company/firm should be registered as approved builders/architects etc. with Urban Development Authority/Housing Boards of State Govt./Municipal Authorities etc. However, if in some States, such a provision as to the registration of builder companies/firms in the panel of Urban Development Authority/Housing Boards of State Government/Municipal Authorities does not exist, the builder company/firm may be asked to produce an Income Tax clearance certificate from the Income Tax Department or some such documentary evidence which shows that the company/firm has undertaken/executed housing projects for Government agencies.
2. In case of purchase of house/flat from private builder company/firm, the house selling/constructing private company/firm should have a clear title to the land on which houses/flats are erected and it can be verified by obtaining a copy of the registration deed exhibiting the title of the land in the name of the house constructing private company/firm.
3. Before the House Building Advance is granted to the applicant Government employee, he may be asked to obtain an undertaking from the concerned private builder company/firm to the effect that the house/flat is ready for possession as well as for moving in. Besides, the private builder company/firm should have obtained completion certificate from the map/plan approving authority. Completion certificate from private architect/engineer should not be accepted.
4. The company/firm of builder should be financially sound. Audited accounts including balance sheet/income and expenditure accounts etc. for the preceding three years, duly certified by chartered accountants, may be examined for this purpose.

Application of rate of interest

Government has also decided that the rate of interest of HBA prevalent on the date of release of advance/first instalment of advance should be taken into account for the purpose of calculation of interest on the HBA sanctioned to the Government Servant.