(1) (a) Withdrawals may be permitted for the purpose of building or acquiring a suitable house including the cost of site and also for additions or alterations to and reconstruction of a house, or for repayment of any outstanding amounts on account of loans expressly taken for the purpose foresaid before the date of receipt of the application for withdrawal.
Note 1.- Final withdrawals from the Provident Fund accumulations for repaying a loan expressly taken for the purpose of acquiring a house or for redeeming the house shall be allowed if the loan was taken not more than twelve months before the date of receipt of the application for final withdrawal.
Note 2.- A subscriber who has availed himself of an advance from Government under clause (b) of sub-rule (1) of Rule 27 or as provided in the Karnataka Financial Code, 1958, or has been allowed any assistance in this regard from any other Government source or from the Housing Board or under the Low or Middle Income Group Housing Scheme or the Life Insurance Corporation of India, shall also be eligible for withdrawal for the purposes indicated in clause (a).
(b) Withdrawal from the provident fund shall be up to ninety percent of the balance of the amount standing to the credit of the subscriber or the actual cost including the cost of the site, or repayment of the loan in that behalf, whichever is least.
If, as mentioned above, the amount withdrawn exceeds the actual expenditure or repayment as aforesaid, the excess shall be refunded to the Government forthwith in one lump sum together with interest at 5 percent per annum from the month of such withdrawal by the subscriber for being credited to his account. The actual expenditure incurred in connection with sale or transfer deeds may be reckoned as part of the cost of the house;
Provided that in the case of a subscriber, who has drawn an advance from Government under the Karnataka Financial Code, 1958, or who has availed himself of any other assistance from any other sources such as from the Housing Board or under the Low or Middle Income Group Housing Scheme or the Life Insurance Corporation of India, the sum withdrawn under this sub-rule together with the amount of advance taken from Government or the assistance taken from any other Government source shall not exceed one hundred and twenty-five months pay.
(c) A second final withdrawal may be allowed from the General Provident Fund Account of the subscriber for the purpose of carrying out additions and alternations to or reconstruction of a house already acquired with the help of a withdrawal already made from the General Provident Fund Account under these rules, subject to the condition that the total of both the withdrawals does not exceed half the amount as it stood at the credit of the subscriber in his Fund Account at the time of the first withdrawal and also that the second withdrawal does not exceed the limit of six months’ pay.
(d) The house proposed to be acquired, etc, or redeemed by the subscriber to the fund with the help of the amount withdrawn as aforesaid shall be situated at the place of his duty or his intended place of residence after retirement;
(e) Withdrawals will be permitted for the building, acquisition or redemption of one house only and further in these cases only where the Government servant does not already own a house;
(f) The construction, etc., of the house should be commenced within six months of withdrawal of money and should be completed within a period of one year from the date of commencement of construction. If, however the house is to be purchased or redeemed or a private loan previously raised for the purchase has to be repaid, this should be done within three months of the withdrawal;
(g) In the case of construction of a house, the withdrawal will be permitted only in two equal installments, the second installment after the first being authorized by the Accounts Officer, after obtaining from the Head of the Department, a certificate, after verification, regarding progress of construction of the house;
(h) In cases where a subscriber has to pay in instalments for a house acquired or a house constructed through a House Building Co-operative Society or similar agency, he shall be permitted to make a withdrawal as and when he is called upon to make a payment in any instalment. Every such payment shall be treated as a payment for a separate purpose for the purposes of clause (a) of sub-rule (i).
(i) The application should be in Form- 12. The Government servant shall submit an annual declaration in Form- 13 on or before the 31st March in each year and satisfy the Government or the Head of the Department as the case may be, if called upon to do so by the production of tax receipts, titledeeds, etc., that the house remains in his sole or spouse ownership and that while he is still in service he has not parted with the possession thereon by way of transfer, sale, mortgage, except for the purpose mentioned in Note 2 to clause (a), gift, exchange, lease for a term exceeding three years howsoever without the previous permission of the sanctioning authority in writing. The amount withdrawn shall be repayable forthwith in one installment together with interest thereon at 5 percent per annum from the month of such withdrawal by the Government servant if the house is sold or encumbered at any time before retirement without such permission.
(2) Before sanctioning the withdrawal, the Head of the office should satisfy himself and furnish a certificate to the sanctioning authority to the effect that.-
(a) the amount is actually required for the purpose of building, etc., acquiring or redeeming a house as mentioned above;
(b) the Government servant possesses or intends to acquire forth-with the right to build on the site on which the house is proposed to be build;
(c) the amount withdrawn together with such other private savings, if any, as the Government servant may have, would be sufficient to build, acquire or redeem the house of the type proposed;
(d) the applicant has an approved plan and permits, where necessary, from the local authorities for the purchase of building materials to the extent required and at controlled rates;
(e) in the case of withdrawal for the purchase of a ready build house, the applicant secures an undisputed title to the house and the land on which the house is build before the purchase price is paid;
(f) before withdrawals are permitted for the repayment of loans taken from private parties expressly for the purpose of acquiring a house, or for redeeming the house, the applicant has acquired or will acquire an unencumbered title to the house thus acquired;
(g) The applicant has signed an undertaking in Form-14 or where this form is not suitable, e.g., in cases of redemption of mortgaged premises belonging to the Government servant, in the form as may be approved by the Government indicating the main terms and conditions of the withdrawal.
(3) For the purposes referred to in clauses (e) and (f) of sub-rule (2) above, the Government servant should produce, through the Head of Office or Department, necessary deeds and papers to the sanctioning authority, proving his title in respect of the property under consideration;
(4) The Head of the Department shall be the sanctioning authority for the purpose of this rule in respect of employees subordinate to it when all the terms and conditions for the withdrawal are fulfilled. A case of withdrawal by the Head of Department, or any case necessitating the relaxation of any of the terms and conditions shall be referred to Government in the Finance Department.
(5) The actual withdrawal from the fund will be made only on receipt of an authorization from the Account Officer concerned who will arrange for this as soon as the formal sanction of the Competent Authority has been issued.