1.0 Objective:
1.1 The objectives of SJVN House Building Advance Rules is to establish uniform policy and rules relating to the grant of House Building Advance to the employees of the Company.

2.0 Policy:
2.1 These rules are framed entirely as a welfare measure and do not confer any right or benefit on the employees nor impose any obligation or liability, whatsoever, on the Company and shall not be deemed to be any contract or condition of service between the Company and any such employees.

2.2 The House Building Advance will be admissible for constructing a house including purchase of land for that purpose, purchase of built in house/flat, enlarging an existing accommodation anywhere in India, where an employee of the Company intends to settle down after retirement subject to availability of funds for the purpose.

2.3 No advance shall be granted in case the total deduction (statutory/otherwise) exceeds 75% of gross salary. Gross Salary means Basic + DA + other local allowances excluding HRA/Lease.

3.0 Definitions:
In these rules, unless the context otherwise requires:

3.1 'Company' means the Satluj Jal Vidyut Nigam Limited, including the projects/units/offices under its management.

3.2 'Competent Authority' means the authority empowered to sanction House Building Advance in accordance with these Rules.

3.3 'Committee' means a Committee as constituted under rule 7.2.

3.4 'Employee' means a person employed in the regular establishment of the Company and does not include:-

1. A lien holder;

2. A deputationist on Foreign Service terms;

3. A person appointed on contract;

4. A muster roll, daily rated, casual, badli or substitute employee, workcharged; and

5. An apprentice/a trainee.

3.5 ‘Family' means an employee's spouse and minor children including legally adopted children.

3.6 ‘House’ means a house, flat or a tenement.

3.7 'Salary/Wages' means basic pay and personal pay plus dearness allowance/ ad hoc allowance and will include pension and pension equivalent of retirement benefits, in respect of re-employed pensioner provided and to the extent the same has been taken into consideration for fixation of his basic pay and such other allowances which form part of basic and DA.

4.0 Eligibility:
4.1 All employees who, on the date of making application for advance, have rendered not less than five years' continuous service in the regular establishment (i.e. excluding service as workcharged, muster roll or trainee) shall be eligible for grant of the advance.

4.2 Employees of the Company who have left the service of Government/Public Sector Undertakings/ Statutory Corporations/Quasi-Government Bodies in order to join services in the Company or who initially join SJVN on deputation/lien and subsequently get absorbed in the services of the Company, will be granted loan, subject to the overall ceiling under Rule 6 and provided he has completed "continuous service" of minimum 5 years in such organization immediately prior to joining the company for the purpose of computation of continuous service. The loan outstanding equivalent to the principal plus interest will be taken as it is and remitted to his employers and employee will continue to pay not less than the previous rate of installment and execute fresh documents as required.

4.2.1 HPSEB employees after absorption in SJVN shall be eligible for grant of advances during probation period subject to having served at least one year prior to absorption in SJVN and has completed continuous service of 5 years in HPSEB.

4.3 Where both the husband and wife are employees of the Company and are otherwise eligible for the grant of advance, the advance shall be admissible to only one of them, at their option.

4.4 An employee shall not be eligible for House Building Advance from the Company except as provided in rule 4.2 if:-

4.4.1 He has not satisfactorily completed the period of probation on initial appointment/joining (except HPSEB employees who are otherwise eligible under Clause 4.2.1) or has not put in at least one year's continuous service in the Company, whichever is later.

Provided that the above stipulation shall not be applicable in respect of such employees of Government/Public Sector Undertakings/Statutory Corporations/ Quasi-Government Bodies who in continuation of their deputation/lien get absorbed in the services of the Company and apply for an advance for the purpose of repayment of the balance amount of House Building Advance drawn from their parent organization/department and interest accrued thereon.

4.4.2 He or any member of his family already holds/owns a house anywhere in the town where the new house/flat is proposed to be constructed/acquired for which the employee applies for grant of loan under these rules except where the advance is required for the purpose of extension/repayment to previous employers.

4.4.3 He or any member of his family has taken advance (other than an advance from the Provident Fund) or any assistance of like nature for the purpose of construction or purchase of a house from any source whatsoever prior to obtaining advance from SJVN except from previous employers to whom he needs to repay.

4.4.4 He is under suspension for any act of misconduct.

4.4.5 He is to leave the services of the Company within 36 months of the grant of advance either on superannuation or otherwise.

5.0 Purpose:
5.1 The House Building Advance may be granted to the eligible employees for the following purposes:

5.1.1 Acquisition and purchase of land (free hold or lease hold) and construction of house thereon.

5.1.2 Construction of house on land already owned/purchased/acquired by an employee in his own name or held jointly with his spouse.

5.1.3 Purchase of a ready-built house or ownership flat (which has not been lived in since its construction) in the name of the employee or jointly in his name and name of his/her spouse if the agency offering it for sale is a Government, Semi-Government or an Autonomous Institution like DDA, City Improvement Trust, State House Board, Registered Cooperative House Construction/ Building Society/Government owned/ recognized house building/Public Ltd. company registered under the Companies Act etc., including a house or flat under self Financing Scheme of such organizations.

5.1.4 Purchase of a ready -built house/flat other than those at sub-rule 5.1.3 at the discretion of the competent authority and on proper evaluation of the property.

5.1.5 Enlargement of living accommodation in an existing house owned by the employee either in his own name or jointly with his spouse.

5.1.6 Repayment of the balance amount of House Building Advance together with accrued interest thereon, directly by the Company to his parent organization covered under rule 4.2.

5.2 The advance will be admissible only for outright purchase or for self-financing flats/houses.

5.3 The advance for the cases covered in sub-rules 5.1.2, 5.1.3 and 5.1.5 shall be granted only if the employee and his spouse jointly owning the land/house/flat are willing to execute a mortgage deed as provided under these rules for the same in favour of the Company and shall submit an undertaking to this effect on non- judicial stamp paper.

5.4 No advance will be sanctioned to an employee for the purpose of registering himself for allotment of a plot of land and/or a house. However, on the allotment being made in his favour, advance may be sanctioned to him towards the registration deposit made by him to the extent the same is in excess of Rs.15000/- and subject to other conditions in these rules.

6.0 Amount of Advance:
6.1 Subject to Rule 6.2, the maximum amount of advance admissible to an employee would be the least of the following:

6.1.1 For new construction/purchase of ready built house:

1. 90 months salary/wages of the employees or

2. 100% cost of construction including that for acquisition of land/100% cost of the property, as the case may be; or

3. Rs.7.50 lakhs. (upto 40% towards purchase of Land).

6.l.2 For enlargement of living accommodation in an existing house.

1. 30 months salary/wages of the employees or
2. 100% cost of enlargement; or
3. Rs.2.5 Lakhs.

6.1.3 For furnishing etc., the woodwork like cupboards, pelmets, grills to make the house habitable, 20% of the cost subject to ceiling under 6.1.1.

6.1.4 The limits as at sub-rule 6.1.1/6.1.2, as appropriate, shall also apply to a case covered under sub-rule 4.2 and 5.1.6.

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 specifications and estimates to be furnished by the employee, within the ceiling limit of advance as prescribed above, and monthly paying capacity of the employee which may be taken as follows:-

6.2.1 The provisions of Payment of Wages Act shall also be kept in view while sanctioning the advance to employees coming within the purview of the said Act.

7.0 Procedure for grant of advance:
7.1 Applications for grant of the advance shall be submitted in the prescribed form (Annexure 'A') through proper channel. The following documents should accompany the applications:

7.1.1 In case of construction of a new house or enlargement of the living accommodation in an existing house, a copy of each of the approved building plan, and the site plan as well as specifications, detailed estimate and abstract estimate in the prescribed form (Annexures A-I & A-II). The site plan and the building plan must be duly approved by the Municipality or other local bodies concerned before submission of the same to the Company.

7.1.2 In case of construction of a new house, the original sale deed or other proof of the applicant having clear title to the land on which the house is proposed to be built except in the case of purchase of land.

7.1.3 In case of enlargement of a living accommodation in an existing house, the original sale deed, if any, as well as other documents establishing that the applicant possesses indisputable title to the property in question.

7.1.4 In case of Registered Cooperative Societies inviting financial participation from their members at the construction stage (i.e. Self Financing Scheme), the procedure will be as follows:-

While applying for grant of HBA, in the form prescribed, the employee shall submit the following additional documents:-

1. Photocopy of the letter issued by the Registrar of the Cooperative Society that the Society is registered with the Registrar of the concerned State;

2. Photocopy of the share certificate, if any, issued by the Society to the employee concerned;

3. Letter of allotment-cum-demand issued by the Society;

4. Original and copy of the receipts of payments made by the employee to the Society.

5. Proof of allotment or allocation of land to the Society by Government or Institutions like DDA etc.; and

6. Certified copy of up-to-date bye-laws of the Society.

7.1.4.1 Subsequent to the sanction of advance, the employee concerned shall be allowed to draw the first installment of advance provided he executes a Personal Bond (Annexure-M) and also furnishes a Surety Bond (Annexure-N) on non-judicial stamp paper of appropriate value. The Surety Bond, as prescribed, is to be executed jointly by two Sureties (other than husband/wife of the employee) who are regular employees of the Company and fulfill all other terms and conditions as provided at rule 9.0. Besides these, the employee shall also furnish the following documents:

1. Attested copy of the Title Deed of the Society to the land on which the house/flat is to be constructed; (where, however, the land has not been allotted to the Society, the Title Deed is to be furnished before disbursement of second installment);

2. No objection from the Society to the effect that the Society has no objection to mortgage the house/ flat in favour of SJVN;

3. Certificate that the land on which the house/flat is to be constructed is free from all encumbrances; and

4. Agreement to mortgage the property to SJVN.

7.1.4.2 While applying for subsequent installments of advance the employee concerned shall furnish a demand letter from the Society indicating, inter alia, the progress of construction; the correctness of which shall be verified by the Competent Authority by arranging inspection of the premises concerned. Further, the employee shall also furnish a proforma of the Sale Deed proposed to be executed by the Society in favour of the employee. After being fully satisfied, the Competent Authority shall authorize disbursement of the remaining installments of the advance.

7.1.4.3 Immediately on taking the possession of the house/flat, and in no case later than three months thereof, the employee concerned shall execute and submit the Mortgage Deed as prescribed under the rules.

7.1.4.4 The amount of advance sanctioned to the employee shall be disbursed in suitable installments as per demands raised by the Society, from time to time. Further, the payment shall be made directly by the Company to the society after collecting employee's share, if any, for each installment.

7.1.4.5 Notwithstanding anything mentioned above, the employee shall execute such supplementary documents/ deeds as may be required by the Competent Authority, from time to time.

7.1.5 In case of flat to be purchased from Government/Semi-Government/ Autonomous Institutes like DDA, City Improvement Trust, State Housing Board on cash purchase basis or se1f-finance scheme, the following documents should be submitted with the application:-

1. Registration Certificate (copy)
2. Allotment letter
3. Demand letter
4. Non-encumbrance Certificate
5. Mortgage permission as first charge in favour of SJVN.

7.1.6 While making an application for grant of HBA under Clause 5.1.4 for purchase of an old ready built house/flat, having a clear marketable title, the employee concerned shall be required to submit the following documents: -

1. Consent of seller alongwith details of house and price agreed to.

2. Attested copy of the title deed of the owner.

3. Attested copy of documents showing mutation of house duly supported by current rent and taxes paid by the owner (receipt to enclosed).

4. Document showing original cost, municipal valuation or authorized valuation of the house:

5. 12 years non-encumbrance certificate from the competent authority.

6. Certificate from authorized Engineer indicating condition of house and the approximate age thereof.

7. Sale permission from the competent authority, if required.

In such cases constitution of a Committee by the competent authority under Clause 7.2 shall not be necessary.

7.2 On receipt of an application, duly forwarded by the Head of the Department, Personnel Department will take necessary action for processing the application. The Personnel Department or a Committee, if specifically constituted by the Competent Authority, will scrutinize the application with reference to the conditions of eligibility as provided under these rules (check list to be developed by P&A Department) as well as priorities etc., if any, laid down for dealing with such cases so as to satisfy themselves that all these conditions have been fulfilled. 

They will also satisfy themselves of the correctness of the facts stated in the application as well as examine the title deeds and other documents furnished in compliance with sub-rules 7.1.2 and 7.1.3 above and other rules and orders made under sub-rule 10.8 (in consultation with the legal department and the Revenue and Registration Authorities, if necessary) to make sure that the applicant does, in fact, possess a clear marketable title free from encumbrances and attachments to the property in question after examining all the plans specifications and estimates submitted alongwith the application and all other relevant details. 

In case of society, the Competent Authority shall satisfy itself about the genuineness of the society concerned as well as the employee's membership with the said Society. The application will be forwarded alongwith the recommendations, as to the amount of advance that could be granted to the concerned applicant and its repayment terms, to the competent authority for his consideration. The Competent Authority for these rules will be General Manager in case of Project and Director (personnel) in case of Corporate Office or any other officer as may be delegated powers from time to time.

7.3 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 under rule 10.0.

8.0 Disbursement of Advance:
8.1 While according sanction to the grant of advance, the Competent Authority will also authorize disbursement of the first installment of the advance in accordance with the basic guidelines set out in Annexure -'B', subject to the observance of prescribed formalities by the borrowing employees.

These include execution of agreement to mortgage (Annexure -'C or Annexure-I (English Mortgage)), mortgage deed (Annexure -'D', or 'D-I' or 'D-II' or 'D-III' or 'D-IV' as the case may be), and surety bond (Annexure -'E') in the prescribed forms.

Or

Alternatively, the competent authority may allow to secure the advance through Equitable Mortgage of property by deposit of original title deeds in place of registered mortgage deed subject to the submission of the following documents:

1. Agreement to mortgage in Form Annexure -'C'.

2. Original Title Deeds of the property as soon as the same are received by the employees.

3. Letter evidencing deposit of the Title Deeds of the property in Form Annexure-J.

4. Affidavit regarding deposit of Title Deeds and Declaration etc. as per proforma Annexure-K.

5. Mutation Certificate from Revenue or Municipal Records after it is mutated.

6. Latest search Certificate through Sub- Registrar/Advocate to show that there is no encumbrance on the property.

7. Special Power of Attorney authorizing SJVN to execute English Mortgage of the property in favour of SJVN at its discretion as per proforma Annexure -L.

In case of purchase of house/flat in the joint names of the employee and his/her spouse, they will be required to execute a Tripartite Agreement.

8.1.1 The employees shall not encumber, create lien, alienate or otherwise make any second charge or dispose of the property already mortgaged in favour of the Company for loan already taken from the company, unless the following conditions are satisfied.

The first charge is registered in favour of the Company, and in no case second charge will be permitted where the employee has opted for equitable Mortgage for the first charge with SJVN. In case of SDA, where first charge is held by SDA, Advance can be permitted on Second charge with approval of Director(P) and with one additional security.

Prior permission for second charge is obtained in writing and draft of the second mortgage got approved by the Company.

8.1.2 Before disposing of the mortgaged property for which loan is taken from the Company, the employee has fully repaid the loan and permission taken in writing for its disposal.

The second mortgage proposed to be created shall be in favour of Financial Institutions, such as banking institutions, cooperative banks, financial corporations set-up by the State Government for House Construction Loans, Apex Cooperative Housing Finance Society and Public Companies formed and registered in India with main object of carrying on the business of providing loan for construction of house or flat.

8.1.3 The competent authority has consented to create such second mortgage in writing in favour of a specified institution.

8.1.4 The draft of such second mortgage has been approved by the competent authority.

8.1.5 The total amount of the advance sanctioned by the company and the loan proposed to be taken under second mortgage does not exceed the prescribed cost ceiling of the value of property as indicated below:

200 times the salary/wages of the employee, subject to a minimum of Rs.3.50 lakhs and a maximum of Rs.18.00 lakhs. However, on merits of each individual case, CMD/D (P) may relax the cost ceiling upto a maximum of 25% of the aforesaid cost ceiling in individual cases.

8.1.6 Where a ready built 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 of the house.

8.2 While applying for subsequent installments of advance, the borrowing employee shall certify that the construction is being carried out strictly in accordance with the plans and estimates submitted by him at the time of making the application, that the construction has actually reached the prescribed stages of construction and that the amount already drawn has actually been used on the construction of the house. Such certificates are to be furnished by the borrowing employee in the prescribed proforma (Annexure -'F'). The competent authority may, if necessary, arrange to have inspection carried out by an official to be nominated by him to verify the correctness of the certificates. After being fully satisfied, the competent authority will authorize disbursement of the remaining installments of the advance as per the provisions of these rules.

8.3 In case of employees covered under Rule 4.2, the repayment of outstanding advance alongwith accrued interest to the parent organization, will be subject to the following conditions:

8.3.1 An undertaking that he shall deposit the original title deeds with SJVN after obtaining from his previous employers after loan is paid to his employer by the Company to secure the advance through equitable mortgage.

8.3.2 He shall also furnish surety as prescribed under these rules.

8.4 In case of purchase of house under self Financing Housing Scheme or from Housing Cooperative Societies, etc, the disbursement of advance will be further subject to the following conditions:

8.4.1 The employee concerned will be required to produce two sureties jointly from amongst the eligible employees of the Company.

8.4.2 If the employee wants to withdraw from the scheme for any reason whatsoever, the money advanced by the Company shall be refunded forthwith to the Company by the agency concerned for which a tripartite agreement shall be entered into, wherever possible.

8.4.3 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 in favour of the Company.

8.4.4 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 account and the company will not undertake any liability for the same.

8.4.5 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 individual.

8.5 In the case of grant of advance for repayment as in sub-rule 5.1.6 and under rule 8.4, the amount of advance will be sanctioned by the competent authority to the applicant but amount/cheque/demand draft will actually by given to the agency or the parent organization as applicable, by the company's representative.

9.0 Surety:
9.1 The applicant shall get executed the surety bond (Annexure -'E') as referred to in rule 8.1 from an employee of the company. An employee of the company shall be eligible to stand as a surety if:

9.1.1 He has satisfactorily completed the period of probation stipulated, if any.
9.1.2 His salary/wages is not less than two-third of that of the applicant.
9.1.3 He is not likely to superannuate within two years of the date of executing the surety bond.
9.1.4 He has not stood as surety in more than three cases of House Building Advance.
9.1.5 The employee applying for House Building Advance has not already stood as a surety for him when he applied for House Building Advance.
9.1.6 He is working, to the extent possible, in the same division/office, where the applicant is working for the time being.

9.2 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 repaid the advance in full (including interest thereon), the latter shall arrange to get executed a surety, within one month of his/their departure. This shall be the responsibility of the borrower employee. Non- compliance will call for disciplinary action and cancellation of loan.

9.3 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 happens earlier.

10.0 Terms & Conditions of Advance:
10.1 The construction of the house or additions to living accommodation in an existing house (as the case may be) shall be:

10.1.1 Carried out exactly in accordance with the approved plan and specifications on the basis of which the amount of advance has been computed and sanctioned. The plan and specifications must not be departed from without the prior approval of the competent authority.

10.1.2 Completed within 18 months/24 months, as applicable, 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 advanced to him (together with interest thereon calculated as in Rule 11.0 below) in one lump-sum. An extension of the time limit may be allowed upto one year by the competent authority in the cases where the work is delayed due to circumstances beyond the control of the employee. The date of completion must be reported to the competent authority without delay.

10.2 Immediately on completion or purchase of the house, as the case may be, the employee concerned shall insure the house at his own cost for a sum not less than the amount of the advance and shall keep it so insured, against damage by fire, flood, lightning, earthquake and riot till the advance alongwith interest is fully repaid to the Company. The policy obtained should be deposited with the Company. A letter should also be written to the Insurer by the employee that the Company is interested in the Insurance Policy (Annexure -'G'). The premia must be paid regularly and the premium receipts produced for inspection by an officer of the Personnel & Administration Department as nominated by the Competent Authority. In the event of failure on the part of the employee to effect insurance against fire, flood, lightning, earthquake and riot, it shall be lawful but not obligatory for the Company to insure the said house at the cost of the employee concerned and recover the amount from him including interest thereon at bank lending interest rate, in the same manner as the amounts are recoverable under these rules. The employee will in addition be liable to disciplinary action.

10.3 The house must be maintained in good repair by the employee concerned at his own cost. He shall also keep it free from all encumbrances and shall continue to pay all the Municipal and other local rates and taxes regularly until the advance alongwith interest has been repaid to the Company in full. The employee shall furnish an annual certificate to this effect to the Company.

10.4 After the completion of construction of the house, annual inspection may be carried out by an authorized official of the Company under instructions from the Competent Authority to ensure that it is maintained in good repair until the advance alongwith interest has been repaid in full.

10.5 The employee concerned shall afford full facilities for all inspections as required under these rules.

10.6 The house should be used only for residential purpose of the employee and/or his family and can be rented out for residential use only.

10.7 The terms & conditions enumerated under rule 10.0 are in addition to those contained elsewhere in these rules.

10.8 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 safeguarding the Company's interest as well as proper and faithful observance of the provisions of these rules.

10.9 Furnishing of false certificates or breach of any of the terms and conditions stipulated in these rules and/ or any other supplementary rules/orders will render the employee concerned liable to appropriate disciplinary action apart from his being called upon to refund to the Company forthwith the entire advance drawn by him together with accrued interest.

11.0 Interest:
11.1 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.

11.2 The rate of interest shall be notified by SJVNL from time to time. The present rates of interest are as under:-

11.3 Notwithstanding anything contained above, failure of employee to faithful observance of all the terms and conditions attached to the advance sanctioned, will make him liable to pay the interest at bank lending interest rate.

12.0 Repayment of Advance:
12.1 The advance granted to an employee under these rules together with the interest thereon, shall be repaid in full before superannuation/separation from services of the employee by monthly installments within a period not exceeding 25 years, repayment of principal in the 15 years (180 installments) and interest in 10 years (120 installments).

Provided that where an advance has been sanctioned under sub-rule 5.1.6, the amount of monthly installment shall not be less than the installment amount at which the advance was being repaid by the employee while in service in parent organization/department. Provided further that it will be optional to an employee to repay the amount in a shorter period, if he so desires.

12.2 The amount of advance and interest thereon, to be recovered from the employee, shall be fixed in whole rupees, except in the case of last installment when the remaining balance, including any fraction of rupee shall be recovered.

12.3 Commencement of Recovery:
12.3.1 Recovery of advance granted for repayment under sub- rule 5.1.6 shall commence from the pay of the month following that in which the advance is drawn.

12.3.2 Recovery of advance granted for purchase of a ready built house shall commence from the month following the month in which the possession is taken or immediately on the expiry of two months from the date on which the advance is paid to the employee, whichever is earlier.

12.3.3 Recovery of advance granted for enlarging living accommodation in an existing house shall commence from the month following the completion of the house or immediately on the expiry of 18 months from the date on which the first installment of the advance is paid to the employee, whichever is earlier. The Competent Authority may relax this time limit keeping in view the merits of the case.

12.3.4 Recovery of advance granted for constructing a new house including purchase of land therefore shall commence from the month following the completion of the house or immediately on the expiry of 24 months from the date on which the first installment of the advance is paid to the employee, whichever is earlier. The Competent Authority may relax this time limit keeping in view the merits of a case.

12.3.5 Recovery of advance granted for purchase of a ready built house under the Self Financing Scheme shall commence from the pay of the month following that in which the possession of the house is taken by the employee or immediately on the expiry of 36 months from the date on which the first installment of the advance is paid to the employee, whichever is earlier. The competent authority may relax this time limit keeping in view the merits of a case.

12.4 Recovery of the advance shall be effected through the monthly pay/leave salary, subsistence allowance bills or any other dues (except Provident Fund and Gratuity amount) of the employee concerned by the Company. The recovery may also be effected from the gratuity amount due to the concerned employee provided a written undertaking is given to that effect by him and he agrees to the incorporation of all suitable clause in the prescribed Agreement and Mortgage Deed 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 his termination or death preceding termination from the whole or any specified part of the gratuity that may be due to him.

12.4.1 For computing the maximum amount of gratuity due to an employee, the total period of service likely to be put in by an employee till his superannuation/ separation and the salary/wages as presently drawn by him are to be taken into consideration.

12.5 If an employee resigns from the services of the Company or his services are terminated for any reason whatsoever before repayment of the advance together with accrued interest thereon in full, entire outstanding amount shall become payable to the Company forthwith. However, the Company, may in deserving cases, permit him or his successors-in-interest, as the case may be, to repay the outstanding amount together with interest thereon in suitable installments after safeguarding Company's interest. Failure on the part of the employee concerned or his successors, as the case may be, to repay the advance for any reason whatsoever, will entitle the Company to enforce the mortgage without intervention of the Court and take such other action to effect recovery of the outstanding amount as may be permissible under the law.

13.0 Re-conveyance:
13.1 The property mortgaged to the Company shall be re-conveyed in the prescribed form at Annexure -H 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.

14.0 Payment of subsidy for interest on loan from LIC in lieu of HBA:
14.1 Such employees of the Company as are otherwise eligible for grant of House Building Advance under these rules, may avail of the House Building Loan Scheme sponsored by the Life Insurance Corporation of India or HDFC/ National Housing Bank or other approved Government agency. In such cases, the Company will grant subsidy to them to meet the difference between the Government rate of interest and the interest rate actually paid limited to the rate applicable in the case of Life Insurance Corporation of India from time to time subject to the conditions that the subsidy will be limited on the amount which would have been admissible to the concerned employee under these rules and no subsidy shall be allowed on the interest levied by the above institutions for default and/or delay in payments.

14.2 The subsidy will be paid after actual verification of receipts issued by the Life Insurance Corporation of India for payment of interest and for this purpose, suitable registers will be maintained to avoid double/over payment. The original receipts will also be endorsed suitably to guard against a second claim.

15.0 General:
15.1 The Competent Authority shall ensure that the purchase/construction/ enlargement of the house is completed within the period prescribed in the rules and that:

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

15.1.2 The house is insured in the manner indicated in rule 10.2 immediately on its purchase/completion and that the premium receipts are regularly produced for inspection.

15.1.3 The house is maintained in good repair and that the necessary insurance premia and municipal taxes and rates are paid regularly and the requisite certificate furnished annually, until the advance has been repaid in full.

15.1.4 Monthly recovery of installments of repayment of the advance commence from the due date and is made regularly from the pay/leave salary etc. bill of the employees concerned thereafter.

15.1.5 Any amount drawn in excess of the said expenditure incurred is refunded by the employee concerned to the Company forthwith together with the interest, if any, due thereon.

15.2 Even in the case of transfer from the Office/plant, etc. to another, the documents such as title deed, mortgage deed, etc. submitted by an employee should continue to be kept in the safe custody of the authority which sanctioned the advance. This is with a view to safeguarding against loss or misplacement of precious documents in transit.

15.3 Subject to the superintendence and instructions of the CMD/Director (Personnel), the respective Office/ plant General Managers will exercise all powers prescribed under these rules in respect of employees working under their administrative control and for employees working at Corporate Centre, the same will be exercised by Director (Personnel).

15.4 Stamp duty chargeable on all documents and Registration fee to be incurred for the completion of legal t formalities required in connection with the grant of HBA may be granted as advance to the concerned employees, subject however to the condition that the total amount of House Building Advance shall not exceed their entitlement, as per Rules. The employees concerned will complete all formalities within a period of three months from the date of drawl of advance granted for stamp duty charges, etc., failing which the amount of advance drawn for the said purpose will be refunded by the employees together with interest thereon. However, employees may claim reimbursement also.

15.5 The grant of advance under these rules shall always be subject to availability of funds and cannot be claimed as a matter of right.

15.6 The power to interpret and administer the rules shall rest with the Director (Personnel)/CMD of the Corporation whose decision shall be final and binding. The Director (Personnel)/CMD are also empowered to make any supplementary rules/orders as envisaged under 10.8.

15.7 The Company reserves the right to modify, cancel, add or amend or withdraw any of these rules.