G.O.(Ms.) No. 52, Enhancement of House Building Advance Ceilings, 2023
The Tamil Nadu Government's Housing and Urban Development (HBA) Department issued G.O.(Ms.) No. 52 on 17 May 2023, increasing the maximum House Building Advance from Rs.40 lakh to Rs.50 lakh for State Government employees and from Rs.60 lakh to Rs.75 lakh for All India Service Officers. The enhanced ceilings apply from 17 May 2023, subject to eligibility and the other conditions already in force.
What the government order changes
G.O.(Ms.) No. 52, issued by the Tamil Nadu Government's Housing and Urban Development (HBA) Department on 17 May 2023, raises the maximum House Building Advance available to eligible government personnel. The increase was made after a Budget announcement referring to rising construction costs.
The revised maximum ceilings are:
- State Government employees: increased from Rs.40 lakh to Rs.50 lakh.
- All India Service Officers: increased from Rs.60 lakh to Rs.75 lakh.
- Both increases are described as 25 per cent enhancements.
- The enhanced ceilings take effect from 17 May 2023, the date of issue of G.O.(Ms.) No. 52.
Who may benefit
G.O.(Ms.) No. 52 may affect State Government employees and All India Service Officers who are eligible for a House Building Advance. It also addresses applicants and borrowers whose cases were already underway when the ceilings changed.
- A person sanctioned an advance under the old ceiling, but who has not drawn any instalment, may be sanctioned an advance under the new ceiling for construction or purchase of a house or flat. An amendment must be issued to the earlier sanction, and eligibility still applies.
- A pending application that was not sanctioned because funds were unavailable may be sanctioned under the new ceiling.
- A person who received an advance under the old ceiling and has not completed construction may seek the difference up to the enhanced ceiling. A revised estimate must be produced, and eligibility still applies.
Limits and continuing conditions
G.O.(Ms.) No. 52 continues the existing limit that a House Building Advance must not exceed 90 months of pay, calculated as Pay, Grade Pay, Dearness Allowance and Personal Pay, subject to the applicable maximum ceiling.
For a Government servant seeking enlargement or improvement of existing living accommodation, the ceiling is 50 per cent of the overall Rs.50 lakh ceiling. All India Service Officers must also follow the instructions issued under the earlier government order referred to in the document.
All other conditions and orders already in force continue to apply when the advance is sanctioned. The applicable interest rate for 2023 to 2024 is not fixed in G.O.(Ms.) No. 52. The document states that the Finance (Loans and Advances) Department will issue separate orders on interest.
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Common questions
What is the new House Building Advance limit for a Tamil Nadu State Government employee?
The maximum ceiling is Rs.50 lakh, increased from Rs.40 lakh, subject to eligibility, the 90 months pay limit and other conditions in force.
Can I receive the higher amount if my advance was sanctioned but I have not drawn any instalment?
Yes, an eligible employee may be sanctioned an advance under the new ceiling for construction or purchase of a house or flat. The earlier sanction order must be amended.
Can I claim the difference if I took an advance under the old ceiling and construction is incomplete?
An eligible borrower who has not completed construction may seek the difference up to the enhanced ceiling by producing a revised estimate.
Does G.O.(Ms.) No. 52 specify the interest rate for the House Building Advance?
No. It states that the Tamil Nadu Government's Finance (Loans and Advances) Department will issue separate orders regarding the interest rate for 2023 to 2024.
