GOVERNMENT OF ANDHRA PRADESH

Loans and Advances - Municipal Administration and Urban Development Department - Advance of Rs.3,00,000/- for purchase of ready built house to Sri M.A. Aziz, Assistant Section Officer, Municipal Administration and Urban Development Department - Sanctioned - Orders - Issued.

1. From Finance and Planning (FW A & L) Department,G.O.Rt.No.1384, dated 23-07-1999.

3. Application of Sri M.A. Aziz, Assitant Section Officer,Municipal Administration and Urban Development Department, application dated 25-10-1999.

Under article 223 of the Andhra Pradesh Financial Code Volume-I sanction isaccorded to the payment of an advance of Rs. 3,00,000/- (Rupees three lakhs only) to SriM.A. Aziz, Assistant Section Officer, Municipal Administration and Urban DevelopmentDepartment for purchasing Ready Built House. As theindividual has already produced an agreement of sale for the purchase of house the entireamount of advance shall be drawn and paid in one instalment by means of a cheque for Rs.3,00,000/- (Rupees three lakhs only) in favour of Sri M.A. Jabbar, Son of Sri M.A. Sattar,H.No.185 SRT, situated at Sanathnagar, Hyderabad - 500 018, which may be given to theloanee for being handed over to the vendor in the presence of the Sub-Registrar concernedat the time of registration of the sale deed.

2. The advance sanctioned in para (1) above is also subject to the followingconditions:-

i) that the loanee should execute an agreement bond in theprescribed form and shall also furnish a surety bond from a permanent Government Servantnot below his rank, before the drawal of advance or any part thereof.

ii) that the acquisition of the house must be completed andthe house / flat mortgaged to Government within three months from the date of drawal ofthe advance and the loanee should submitmortgage deed along with the certificates obtained from Public Works Department Officer tothe effect that the present market value of the house purchased by him covers the amountof advance sanctioned, failing which the entire advance together with the interest thereonshall be refunded to Government forthwith.

iii) that he insures the house immediately on purchase at hisown cost for a sum not less than the amount of the advance and shall keep it so insuredagainst damage by fire, flood, or lightning year after year till the advance is fullyrepaid and deposit the policy with the Government.

iv) that the house is maintained in good condition, repair athis own cost and the loanee shall continue to pay the Municipal and local taxes regularlyuntil the advance has been repaid in full;

vi) that utilisation of the advance for the purpose other thanthat for which it is sanctioned shall render the loanee liable to disciplinary actionunder the rules apart from his being called upon to refund entire advances drawn by him tothe Government;

vii) that the liability with surety will continue till thehouse purchased is mortgaged to Government or till the advance together with the interestdue thereon is repaid to the Government which ever is earlier.

2. The advance sanctioned in para one above shall be recovered in 170 monthlyinstalments, 1st instalment at the rate of Rs. 1715/-, remaining 169 instalments at the rate of Rs. 1765/-, each. The recovery of advance granted shallcommence from the pay from the month of September, 2000. Interest on the advance shall berecovered in 20 monthly instalments after completion of recovery of the Principal amount. The interest payable on the loan is at 81/2 % per annum which is subject to revision from time to time. It will be open to the loanee to repay the amount in shorter periods ifhe so desires. In case the grantee does notrepay the loan of advance due to Government on or before the due date, it shall be open tothe Government to enforce the security of the mortgage at any time thereafter and torecover the balance of the advance due together with the interest and cost of recovery bysale of the house or in such other manner as may be permissible under law. The recovery of advance shall be effectedthrough the monthly pay / leave salary bills of the loanee. If the loanee ceased to be in servicefor any reason other than normal retirement / superannuation or if he dies before thepayment of the advance in full, the entire outstanding amount of the advance together withinterest, shall become payable to the Government forthwith. Failure on the part of the loanee or his successor in interest torepay the advance for any reasons whatsoever will entitle the Government to enfroce themortgage to take such other action as may be permissible under law. The property mortgaged to Government shall berecovered to the loanee or his successors in interest as the case may be, after theadvance together with the interest thereon is repaid to the Government in full.

4. The instalments of recovery fixed in para 3 above are subject to the condition thatthe loanee agree to the incorporation of a suitable clause in the agreement and mortgagebonds to the effect that the Government shall be entitled to recover the balance of thesaid advance with interest remaining unpaid at the time of retirement or death precedingretirement from the whole or any specified part of the gratuity that may be sanctioned tohim.

5. The insurance policy on the house should be forwarded to the Pay and AccountsOfficer for perusal together with a letter addressed to the Insurance Company with whomthe building is insured, notifying to the company as the Government are interested in thepolicy secured.

6. The amount will be drawn from the provision allotted to the MunicipalAdministration and Urban Development Department in the G.O.Rt. second read above and metfrom the provision available under the Head of Account “7610 - Loans to GovernmentServants - M.H. 201 - House Building Advance - S.H. (05) - Loans to other Officers”.

7. This order does not require the concurrence of the Finance and Planning (FW)Department as per rules or orders in force on this subject.