SCHEDULE

House-Building
(Grant & Recovery) Rules

Definitions

1. In these rules, unless the context indicates otherwise

(a)  ‘Akademi' means the Sahitya Akademi, New Delhi;

(b)  ‘Secretary' means the Secretary or Acting Secretary of the Akademi and in case the Secretary is applicant for loan, the Executive Board may be substituted for ‘Secretary' wherever it occurs in these rules;

(c)  ‘Employee' means an employee of the Akademi appointed by or under the authority of the Akademi but does not include a person employed on daily wages; and

(d)  ‘Pay' means the pay admissible on the relevant date and includes Personal pay, Dearness pay and officiating Pay (other than that drawn in leave vacancy) but does not include special pay.

Eligibility

Notes:-

2. House Building Advance may be granted to the following categories of employees of the Akademi:

a)  All permanent employees;
b)  Employees not falling under category
(a) above but who have rendered at least ten years' continuous service:
Provided that

(i)  the Secretary is satisfied about their likely retention in service till the house for which the advance is sanctioned is built and mortgaged to the Akademi; and

(ii)  they do not hold a permanent appointment under any other organisation/government;

c)  permanent employees who have gone on deputation to other organisations/ government and continue to hold lien in the Akademi; and

d)  employees under suspension, subject to production of collateral security in the shape of mortgage bond from two permanent employees of the Akademi.

1. When both the husband and wife are employees of the Akademi, the advance shall be admissible to only one of them.

2.  In case of an employee referred to in clause (b), surety of a permanent employee of the Akademi should be produced.

3.  An advance may be permissible if the land/house/flat is owned jointly by his/her wife/husband subject to the condition that both husband and wife are willing to mortgage the house/flat including land in favour of the Akademi as security for repayment and a letter of assurance to this effect from both of them is attached with the application.

4.  The Secretary may reject or may keep pending any application without assigning reasons.

5.  Payment of advance/any instalment of advance shall be subject to the availability of funds with the Akademi.

3. (a) Construction of a new house on the land owned by the employee;
(b) enlargement of or additions and alterations to existing house owned by the applicant either in his own name or jointly with the applicant's wife/husband;
(c) purchase of ready-built house/flat from registered cooperative societies and Government or semi-Government agencies like the DDA, State Housing Boards, etc; and
(d) purchase of house/flat from private parties subject to fulfillment of following conditions:

i)  the house/flat to be purchased should be new and un-lived in; and

ii)  the house/flat is valued by registered valuers and valuation fee paid by the applicant himself; and

(e)  purchase of land and construction of a new house.

Note: The house/flat can be either at the place of duty or at the place where applicant proposes to settle after retirement.

4. 1) The applicant should not own Fulfilled any house either in his name, his/her wife's husband's name or in the name of his/ her minor child in a town or city, unless the advance is required for enlargement of, or additions and alterations to an existing house. Exceptions may be made by the Secretary in suitable cases such as the following:

i)  The house is in a village, town or city and the applicant wants to settle in any other town or city, or

ii)  The house is owned jointly and the applicant wants to build a separate house for himself/herself.

3. The actual amount of advance will be determined on the basis of data/documents/plans with specifications and estimates to be furnished by the applicant to the satisfaction of the Secretary.

4. In case the house is situated in a rural area, a certificate of area and value from a Revenue Officer not below the rank of a Tehsildar should be furnished.

5. Only one advance shall be admissible during the entire service of the applicant.

6.  If the land cannot be mortgaged to the Akademi, a collateral security shall be furnished by the applicant before the advance is sanctioned.

5) 1. Notwithstanding anything in rule
(4), the admissible amount of loan shall be so determined that it is fully repaid alongwith interest by monthly instalment within a period not exceeding 20 years. Firstly, the recovery of the advance shall be made in not more than 180 monthly instalments and then interest shall be recovered in not more than 60 monthly instalments,
2.  While calculating the number of instalments of repayment, the following guide-lines should be followed:
It should be ensured that the amount of each monthly instalment does not exceed.

i)  in the case of employee retiring after 20 years, 35% of pay;

ii)  in the case of employee retiring after 10 years but not later than 20 years, 40% of pay (65% of DCR gratuity may also be adjusted), and

iii)  in case of employee retiring within 10 years, 50% of pay (DCR gratuity up to 75% may be adjusted).

3. Each instalment shall be fixed in whole rupees.

Security for the
Advance

6. 1) a.) The house/flat including land should be mortgaged to the Secretary as security for repayment of the advance.
b.)The prescribed agreement should be executed.
c.) The stamp duty and registration charges payable if any will be borne by the employee.
d) The land/house/flat should be free from attachments and encumbrances and the applicant should have a clear and marketable title to it.
e.) In case of purchase of land/flat/house from a Registered Co-operative Society, Government/ Semi-Government bodies such as State Housing Board or Development Authority, etc. a copy of resolution passed by the general body or a no-objection certificate by the authorised officer of the effect that the applicant can mortgage the land/house/flat to the Secretary should be produced.

f.) The applicant should obtain complete possession of the land/house/flat which he has to mortgage as security to the Secretary.

The Secretary may also sanction an advance for construction if he is satisfied that:

a)  The employee has paid full costs of the land to the Society or Government or Semi-Government Organisation;
b) The title to the land in favour of the Society or organisation concerned is clear;
c)  The terms of the sale of the plot to the employee clearly specify the conditions that should be fulfilled before the employee can obtain the title;
d)  The Society or organisation gives possession of the plot of land to the employee to enable him to construct his house; and
e)  The employee shall be in a position to obtain a clear title to the property from the Society or organisation within a reasonable period and mortgage it in favour of the Secretary.

How to apply for an advance

7 1. The application should be addressed an advance to the Secretary in such form as may be prescribed.
2. For ready built house/flat, a letter of allotment should also be attached to the application.
3  For construction of new hose or addition/alteration to an existing one, a detailed estimate from a recognised/competent source with a copy of the plan approved by the Municipal Corporation/authority concerned should be attached to the application.

4.  Any other document required under these rules or as required by the Secretary should be furnished.

8. 1. An advance granted under these rules shall carry simple interest from the date of advance, the amount of interest being calculated on the balance outstanding on the last day of each month. The rate of interest shall be same as applicable to Central Government employees.
2. While issuing the sanction for grant of the advance, the rate of interest should be shown as 2.1/2 % above the prescribed rate with the stipulation that if conditions attached to the sanction including this recovery of amount are fulfilled completely to the satisfaction of the sanctioning authority, a rebate of interest to the extent of 2.1/2% will be allowed.
3. The rate of interest will be ½% less the prescribed rates to such employees who themselves or their spouses undergo voluntary sterilizatuion.

Disbursement of advance

9 The advance shall be disbursed in the of advance manner set forth below:
a)  Purchasing of plot and construction of single-storeyed/double storeyed house in three instalments of

i)  on executing the agreement in the prescribed form and production of surety bond;

ii)  on executing the mortgage deed after purchase of plot; and

iii)  on the construction reaching the plinth level.

b)  Construction of single-storeyed/double storeyed house or enlarging of living accommodation an existing house in two instalments of

i)  on executing the mortgage deed; and
ii)  on the construction reaching the plinth level.

c)  Enlarging living accommodation in the upper storeys of the house – in two instalment of

i)  on executing the mortgage deed; and
ii)  on the construction reaching the roof level.

d)  purchasing a ready built house – in one instalment, payable on executing the agreement in the prescribed form and furnishing the surety.

e)  Purchasing/Construction of a new flat-the amount may be disbursed in one or more convenient instalments at the discretion of the Head of Department.

Time limit for Utilisation of Advance

10. The advance and instalments of the drawn should be utilised Advance within two months failing which it should be refunded to the Akademi in full. Extension of time-limit may be granted by the Secretary in deserving cases after obtaining full justification in writing.

11. The house/flat after completion shall be insured against fire, flood, lightning etc. until the advance is fully repaid to the Akademi.

12. The house/flat should be maintained in good repair by the employee at his own cost. He should also keep it free from all encumbrances. After completion of the house, annual inspections may be carried out at the discretion of the Secretary by an authorised officer of the Akademi for ascertaining if the house/flat is maintained in good repair until the advance has been repaid in full. The employee shall afford necessary facilities for these inspections.

13 The employee shall pay all taxes regularly.

14 The house shall be reconveyed after the entire advance together with the interest is repaid to the Akademi.

15 1) In case of failure to repay the advance or interest or to abide by the terms and conditions of the advance, the Secretary may direct the recovery of the advance due in full and may enforce the recovery by sale of house or in any other manner.

2)  In matters not provided for in these rules, the rules and orders of the Government of India pertaining to the grant of House Building Advance to their employees and any matter connected therewith shall apply to the employees of the Akademi Further, till such time as the Akademi has its forms for any matter referred to in these rules, the forms prescribed by the Government of India shall, with suitable changes, be adapted.

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