G.O.(Ms.)No.198, House Building Advance, Nerkundram Scheme, 2024
The Housing and Urban Development (HBA) Department issued G.O.(Ms.)No.198 on 6 November 2024, increasing the additional House Building Advance available for flats under the Own Your Housing Scheme at Nerkundram Phase II, Stage I. The increase is from Rs.20.00 lakh to Rs.25.00 lakh for All India Service Officers and from Rs.10.00 lakh to Rs.15.00 lakh for State Government employees, changing the additional advance amounts approved earlier for the Nerkundram scheme.
What the order covers
G.O.(Ms.)No.198 of the Housing and Urban Development (HBA) Department, dated 6 November 2024, increases the additional House Building Advance for purchases under the Own Your Housing Scheme at Nerkundram Phase II, Stage I. It concerns government personnel allotted flats under that scheme, rather than property buyers generally.
Who is affected
G.O.(Ms.)No.198 applies to two groups purchasing flats under the Nerkundram scheme:
- All India Service Officers.
- State Government employees.
The source does not extend the increase to private purchasers or to buyers in other housing projects.
Key changes
G.O.(Ms.)No.198 revises the additional House Building Advance amounts as follows:
- For All India Service Officers, the additional advance increases from Rs.20.00 lakh to Rs.25.00 lakh.
- For State Government employees, the additional advance increases from Rs.10.00 lakh to Rs.15.00 lakh.
- Each category therefore receives an increase of Rs.5.00 lakh in the additional advance available for the Nerkundram scheme.
The earlier additional advance amounts had been approved by the Housing and Urban Development (HBA) Department in an order dated 2 February 2021. A later order dated 28 July 2021 amended the recovery of the last instalment.
Why the increase was approved
G.O.(Ms.)No.198 records that the Tamil Nadu Housing Board had informed allottees that 5% GST was applicable to the sale of the houses and would be recovered from them. It also records that price variation had increased the project cost, with the estimated additional cost stated as around Rs.10.00 lakh to Rs.12.00 lakh per allottee.
The representation considered by the Government stated that most allottees had already used their full House Building Advance and had also taken additional bank loans. An additional advance of Rs.5.00 lakh was requested to help meet the unforeseen cost.
Administrative approval
G.O.(Ms.)No.198 was issued by order of the Governor and signed by Kakarla Usha, Principal Secretary to Government. The order states that it was issued with the concurrence of the Finance Department under U.O.No.8227013/Finance (Housing)/2024, dated 7 October 2024. The source does not provide a separate application procedure or repayment schedule for the increased amount.
This summary is generated from the source document to help you find what is relevant. The PDF above is authoritative. For advice on your own property, use LandLens One or speak to a qualified professional.
Common questions
Does the increased advance apply to every Tamil Nadu property buyer?
No. It applies to All India Service Officers and State Government employees purchasing flats under the Own Your Housing Scheme at Nerkundram Phase II, Stage I.
How much additional House Building Advance can an All India Service Officer receive?
The additional advance for an All India Service Officer is increased from Rs.20.00 lakh to Rs.25.00 lakh.
How much additional House Building Advance can a State Government employee receive?
The additional advance for a State Government employee is increased from Rs.10.00 lakh to Rs.15.00 lakh.
Why did the Government increase the additional advance?
The order cites 5% GST on the sale of the houses and project cost increases caused by price variation. The estimated additional cost was stated as around Rs.10.00 lakh to Rs.12.00 lakh per allottee.
