ABSTRACT

-
Loans and Advances House Building Advance -Migration of home
loans taken by the Government servants from Banks / other Financial
Institutions to House Building Advance - Guidelines and amendment to
3
Rule of "State Rules to Regulate the Grant of Advances to
-
Government Servants for Building Etc., of Houses" Issued.

HOUSING AND URBAN DEVELOPMENT (HBA.) DEPARTMENT

G.O.(Ms.)No.26 Dated: 02.02.202t
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Read: -

1. Government of India O.M. No.U t70tt/ Lt(4)/

2016-H-III, dated 31.01.2018.
Read also: -
2. G.O.(Ms.)No.24, Housing and Urban Development
(HBA) Department, dated 02.02.202L.

ORDER: -
The Government of India in Office Memorandum first read above,
have issued conditions / clarification on migration of interest bearing
advances taken by the existing Government Employees for Home Loans
from Banks / other Financial Institutions, based on the recommendation
of the Seventh Central Pay Commission.

2. In the Government order second read above, the Government

have enhanced the ceiling of House Building Advance to All India Service
officers from Rs.40,00,000/- to Rs.60,00,000/- and to State Government
Employees from Rs.25,00,0001- to Rs.40,00,000/- respectively for the
following:-
(i) Partly for purchase of land and partly for construction of a
house thereon, (or)
(ii) for the construction of a house, (or)
(iii) for purchase of a Ready Built House / Flat.
3. In this connection, there are repeated requests from the
employees to allow them to migrate their loans availed from other
financial institutions to the house building advance sanctioned by the
Government.
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4. The Government, after careful consideration of the above

requests of the employees, have decided, in consonance with the order of
Government of India in the Office Memorandum first read above, to allow
the existing employees, who have already taken Home loans from Banks
and other financial institutions, to migrate to House Building Advance
subject to fulfillment of the following conditions:-

a) Before granting such House Building Advance, the Sanctioning

Authorities,
i. Should satisfy himself that the home loans were taken by the
Government employee entirely for purpose of construction/
purchase of new house/ flat.
ii. Should ensure that the House Building Advance sanctioned is
limited to the amount of loan still due to be repaid by the
Government employee.
b) House Building Advance can be availed towards repayment of
bank loan taken for the purpose of construction/ purchase of
new house/flat.
c) Employee shall be eligible for grant of House Building
Advance as per these Rules, on the date he/she obtained
loans from banks and other financial institutions irrespective
of whether they applied for House Building Advance before
raising the loan.
d) House Building Advance for repayment of loans shall be
granted to the eligible employees in one lump sum. However,
the Government employee shall produce the House Building
Advance Utilization Certificate within one month from the date
of release of House Building Advance.
e) Employee has to satisfy the other provisions of the " State
Rules to Regulate the Grant of Advances to Government
servants for Building Etc., of Houses".
5. to
Rule 3 of "STATE
The following amendment is issued
RULES TO REGULATE THE GRANT OF ADVANCES TO GOVT SERVANTS
FOR BUILDING ETC., OF HOUSES"
AMENDMENT

In the notes under Rule 3, the following may be added as (vi)

(vi) The advance may also be sanctioned for migrating Home loan
taken from Banks or other financial institutions, subject to
fulfillment of following conditions: -
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a) Before gr:anting such House Building Advance, the Head of

the Department,
I. were taken by
Should satisfy himself that the home loans
the Government employee entirely for purpose of
construction/ purchase of new house/ flat.
II. should ensure that the House Building Advance sanctioned is
limited to the amount of loan still due to be repaid by the
Government employee.
b) House Building Advance can be availed towards repayment of
bank loan taken for the purpose of construction/purchase of
new house/flat.
c) Employee shall be eligible for grant of House Building
Advance as per these Rules, on the date he/she obtained
loans from banks and other financial institutions irrespective
of whether they applied for House Building Advance before
raising the loan.
d) House Building Advance for repayment of loans shall be
granted to the eligible employees in one lump sum. However,
the Government employee shall produce the House Building
Advance Utilization Certificate within one month from the date
of release of House Building Advance.
e) Employee has to satisfy the other provisions of these Rules.
6. All other conditions / orders in force shall be followed for
sanction of the House Building Advance.
7. This order issues with the concurrence of Finance Department
vide its U.O.No.33/SS(PK)1202t, Finance (Hg.&UD.) Department,
Dated 01.02.2021.
(BY ORDER OF THE GOVERNOR)

D. KARTHIKEYAN
PRINCIPAL SECRETARY TO GOVERNMENT.
To
All Additional Chief Secretaries / Principal Secretaries /
Secretaries to Government, Secretariat, Chennai-600 009.
All District Collectors.
All Heads of Departments.
All Departments of Secretariat, Chennai-600 009.
The Registrar General, High Court of Madras, Chennai-104.
The Accountant General-I, Chennai-600 018.
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The Accountant General-I, Chennai-600 018. (By name)

The Accountant General (A&E), Chennai-35.
The Accountant General (A&E), Chennai-35 (By name)
The Accountant General (CAS), Chennai-600 009.
The Secretary to Chief Minister,
Office of the Chief Minister, Chennai-600 009.
Office of Deputy Secretary to Deputy Chief Minister, Chennai-600 009.
The Principal Private Secretary to chief Secretary to Government,
Secretariat, Chennai-600 009.
The Private Secretary to Additional Chief Secretary to Government,
Finance Department, Chennai-600 009.
The Private Secretary to Principal Secretary to Government,
Housing & Urban Development Department, Chennai-9.
All Treasury Officers.
The Pay and Accounts Officer (Nofth), Chennai-600 001.
The Pay and Accounts Officer (South), Chennai-600 035.
The Pay and Accounts Officer (East), Chennai-600 008.
The Pay and Accounts Officer (Secretariat), Chennai-9.
The Pay and Accounts Officer (High Court), Chennai-104.
All the Public Sector Undertakings / Boards.
The Finance (Housing/l-A cell/Salaries) Department, Chennai-9.
The Secretary, Tamil Nadu Public Service Commission, Chennai-600 003.
The Legislative Assembly Secretariat, Chennai-600 009.
All sections in Housing and Urban Development Department,
Secreta riat, Chen na i-9.
Copy to:
The Technical Director,
National Informatics Centre,
Secretariat, Chen na i-9.
(with Soft Copy to upload the G.O. in Tamil Nadu Government
Housing and Urban Development Department's website)
Stock tile / Spare Copy.

// FORWARDED / BY ORDER //
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