G.O.(Ms.)No.24, Enhancement of House Building Advance Ceiling, 2021
The Housing and Urban Development (HBA.) Department issued Government Order G.O.(Ms.)No.24 on 2 February 2021 to increase the maximum House Building Advance to Rs.60,00,000 for All India Service Officers and Rs.40,00,000 for State Government Employees. The increased ceilings apply from 2 February 2021 to eligible advances for buying land and constructing a house, constructing a house, or purchasing a ready built house or flat.
What the government order covers
Government Order G.O.(Ms.)No.24, issued by the Housing and Urban Development (HBA.) Department on 2 February 2021, governs House Building Advances for All India Service Officers and State Government Employees. It deals with financial assistance for specified housing purposes and is relevant to eligible government personnel who are building or purchasing residential property.
The permitted purposes are:
- Partly purchasing land and partly constructing a house on it.
- Constructing a house.
- Purchasing a ready built house or flat.
Increased advance ceilings
Government Order G.O.(Ms.)No.24 increases the maximum House Building Advance as follows:
- For All India Service Officers, the ceiling increases from Rs.40,00,000 to Rs.60,00,000.
- For State Government Employees or Government Servants, the ceiling increases from Rs.25,00,000 to Rs.40,00,000.
- The limit based on pay increases from 75 months' pay to 90 months' pay, subject to the applicable maximum ceiling. Pay includes pay, Grade Pay, Dearness Allowance and personal pay.
For enlargement or improvement of the existing living accommodation of a Government Servant, the ceiling is 50 per cent of the overall limit of Rs.40,00,000.
Pending and earlier applications
Government Order G.O.(Ms.)No.24 also addresses applications and advances handled under the earlier ceilings:
- A person sanctioned an advance under the old ceiling who has not drawn any instalment may receive an amended sanction under the new ceiling, subject to eligibility.
- Pending applications not sanctioned because of lack of funds may be sanctioned under the new ceiling.
- A person who received an advance under the old ceiling but has not completed construction may seek the difference up to the enhanced ceiling. A revised estimate must be produced, and eligibility conditions apply.
Continuing conditions
Government Order G.O.(Ms.)No.24 took effect on 2 February 2021. All other existing conditions and orders continue to apply when the advance is sanctioned.
All India Service Officers must also follow the instructions issued in G.O.Ms.No.419 by the Housing and Urban Development Department on 26 September 1996. Amendments to the State rules were to be issued separately. The Finance Department was also to issue separate orders on the applicable interest rate for 2020-2021.
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
What is the maximum House Building Advance available under G.O.(Ms.)No.24?
The maximum is Rs.60,00,000 for All India Service Officers and Rs.40,00,000 for State Government Employees, subject to eligibility and the pay based limit.
Can the advance be used to buy land without building a house?
The listed purpose is partly purchasing land and partly constructing a house on it. The source does not list purchase of land alone as a permitted purpose.
Can someone with an earlier sanction claim the increased amount?
Yes, in specified cases. A person who has not drawn any instalment may receive an amended sanction, while a person who has drawn the earlier advance but not completed construction may seek the difference on producing a revised estimate, subject to eligibility.
Does G.O.(Ms.)No.24 specify the interest rate?
No. The Housing and Urban Development (HBA.) Department states that the Finance Department will issue separate orders on the interest rate applicable for 2020-2021.
