OIL AND NATURAL GAS CORPORATION LIMITED

Office of Chief-ER
Corporate Policy Section
II Floor, B. S. Negi Bhavan
Tel Bhavan, Dehradun – 248003

O.O. No. ONGC/ER/CP/ADV/005 OFFICE ORDER (ADV-005)

Last Updated on: 19.11.2019

Sub: HOUSE BUILDING ADVANCE SCHEME

In supersession to all earlier instructions on the subject, the House Building

Advance Scheme shall be regulated as follows:

HOUSE BUILDING ADVANCE FOR CONSTRUCTION/ PURCHASE OF

HOUSE

1. Applicability:

House Building Advance is admissible to regular employees once in the

entire service period. The advance can be extended for any one of the following
purposes:-
i) Purchase of plot of land and construction of house thereon.
ii) Construction of a house on the plot of land owned by the employee or
jointly owned with his/her spouse, subject to jointly mortgaging the
property in favour of ONGC.
iii) Purchase of ready built / under construction flat from Private Builders /
Co-operative Housing Society
iv) Purchase of plot of land through Co-operative Societies and construction
of house / flat etc. thereon.
v) Purchase of flats from State Housings Boards / Authorities Housing
Authorities / Agencies.
vii) Repayment of housing loan taken from banks/ financial institutions for
construction/ purchase of house.

2. Eligibility:

2.1 Category Eligibility

Regular Employees -After completion of five years
service.#
Employees who have joined -After completion of probation
ONGC from other Govt. period.
Deptt., PSU, Govt.
owned/controlled
organization and have
completed total ten years*
continuous services without
break including service in
ONGC.

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# All regular employees shall be eligible for grant of HBA after completion of three
years of service.

* As per existing instructions, employees who have joined ONGC from other Govt.
Deptt., PSU, Govt. owned/controlled organization and have completed total ten
years continuous services, without break, including service in ONGC are eligible
for grant House Building Advance (HBA) from ONGC after completion of
probation period.

2. Queries are being received from different work centers as to whether service of
ten years or more rendered by an employee in his/her previous employment in
Govt. departments, PSUs, Government owned/controlled organizations may be
reckoned for determining eligibility for grant of HBA from ONGC, even though
there is gap between relieving from previous organization and joining in ONGC.

3. It is clarified that employees who have joined ONGC from other Govt. Deptt.,
PSUs, and Govt. Owned / controlled organization and have completed total ten
years services in Govt. Deptt., PSU, and Govt. owned / controlled organization(s)
or ten years’ service, including service in ONGC, are eligible for grant of HBA
from ONGC, after completion of probation period and subject to the condition
that they have not availed HBA from their previous organization.

Illustration -1:
Previous service record Eligibility
From To Period Organization Eligible for grant
29.07.1999 31.07.2014 15 Yrs Indian Navy of HBA from
Employee 1 Yr 8 Central Bank ONGC, as the
“A” 02.03.2015 30.11.2016 individual has
Mth of India
completed 10
05.12.2016 Till date ONGC years of service in
Indian Navy.

Illustration -2:
Previous service record Eligibility
From To Period Organization Eligible for grant
of HBA from
8 Years
Employee 25.04.2006 01.05.2014 NTPC ONGC, as the
06 days
“B” individual has
completed 10
years of service,
including service
23.04.2015 Till date ONGC in previous
organization and
ONGC.

3. All other terms and conditions for grant of House Building Advance will remain
unchanged.

4. This issues with the approval of ED-Chief ER.

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 (Issued vide office order No. ONGC/ER/CP/ADV/005 dated 08.04.2019)

2.2 HBA will be admissible to only one person, if both husband and wife are
employed in ONGC.

2.3 The employee will not be eligible for HBA if he/she or spouse or minor
children individually or jointly own a house/flat in the same town or urban
agglomeration in which a house is proposed to be constructed/purchased by him.
However, HBA can be considered for purchase of flat/house in a different
city/town/village.

2.4 Continuous service (without break) rendered by an employee in Govt.

Department/PSU/Govt. owned/Central Govt. Organisations will be taken into
account for determining his eligibility for grant of HBA.

3. Monetary ceilings:

3.1
Purpose Level Monetary ceiling
HBA for Executives of E-5 level & -75 months basic pay plus DA or
construction/ above. Rs. 15.0 lakhs or actual cost/
purchase of estimate of proposed house
house. whichever is less.

Executives upto E-4 level -75 months basic pay plus DA or

and S Level Rs. 12.0 lakhs or actual cost/
Employees. estimate of proposed house
whichever is less.

Employees of Unionized -75 months basic pay plus DA or

Category (Other than S Rs. 10.0 lakhs or actual cost/
level). estimate of proposed house
whichever is less.

3.2 The stamp duty/registration charges as per actual may be allowed within
the above ceilings.^
^ The stamp duty / registration charges / GST and any other tax levied by Govt.
authorities as per actual may be allowed within the overall ceilings of the advance
amount.
3.3 The above mentioned monetary ceilings will be applicable w.e.f 17.09.2004.
However, these ceilings will also be applicable to the past cases where HBA has
already been sanctioned and drawn but the construction/extension is not
completed. The original cost/estimate shall not be allowed to be revised in past
cases.
3.4 W.e.f. 2nd November, 2010, monetary ceilings under ONGC HBA Scheme are
revised as under:

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 Purpose Level Monetary ceiling
HBA for Executives of E-5 level & -75 months basic pay plus DA or
construction/ above. Rs. 24.0 lakhs or actual cost/
purchase of estimate of proposed house
house. whichever is less.

Executives upto E-4 level -75 months basic pay plus DA or

and S Level Rs. 20.0 lakhs or actual cost/
Employees. estimate of proposed house
whichever is less.

W&A level. -75 months basic pay plus DA or

Rs. 16.0 lakhs or actual cost/
estimate of proposed house
whichever is less.
Note: The revised HBA ceilings will also be applicable to the past cases where HBA has
already been sanctioned and drawn but the construction/extension is not completed.
However, the original cost/estimate shall not be allowed to be revised.
(Issued vide office order no. ONGC/ER/CP/ADV/005, dated, 2nd November, 2010)

Reference is invited to Office Order No. ONGC/ER/CP/ADV/005 dated 2 nd

November, 2010 wherein the monetary ceilings under ONGC HBA Scheme were
revised.

2. The issue regarding review of House Building Advance Scheme was

discussed in the 419th meeting of Executive Committee held on 14th August, 2012
at Dehradun. The Executive Committee has approved the enhancement of
monetary ceilings and clubbing of house building advances admissible for
different purposes under ONGC HBA Scheme as under :-

Level Revised Monetary Revised Revised Total

Monetary ceiling for Monetary admissible
ceiling for extension / ceiling for amount under
construction/ bigger and renovation ONGC HBA
purchase of better house ( ) scheme.
house ( ) ( )
(restricted to
75 months
Basic Pay +
DA)

( )

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 (A) (B) (C) (A)+(B)+(C)

Executives of 30 lakhs 10 lakhs 5 lakhs 45 lakhs

E-5 level &
above
Executives up 25 lakhs 10 lakhs 5 lakhs 40 lakhs
to E-4 level
and S Level
Employees
W&A level 20 lakhs 10 lakhs 5 lakhs 35 lakhs
employees

3. Other terms and conditions relating to enhanced monetary ceilings are

as follows:-

(i) Employees availing HBA for construction / purchase of house would

have the option to utilise the total / part amount of HBA admissible
towards extension / bigger and better house / renovation for
construction / purchase of house.

(ii) Having clubbed and availed whole of the amount as HBA, the
employee would not be eligible to avail the loan for extension /
bigger and better house / renovation subsequently.

(iii) The revised HBA ceilings shall be effective from the date of issue of
this office order. However, the revised ceilings shall also be
applicable to the past cases as given below:-

A) Where HBA has already been sanctioned and drawn but

the construction / purchase is not completed. However, the
original cost / estimate shall not be allowed to be revised.

B) Employees who have already purchased / constructed a

house/flat having availed ONGC’s HBA and have also
taken additional loan from bank(s) / financial institution(s)
for such house / flat can avail differential HBA within the
total admissible HBA amount for all purposes to repay the
outstanding amount of loan with interest to bank(s) /
financial institution (s). While sanctioning HBA in such

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 cases, earlier amount of outstanding HBA with interest
shall be adjusted.

(iv) Existing terms and conditions not specifically mentioned in this

order regarding eligibility, rate of interest, repaying capacity etc. for
grant of HBA shall remain unchanged. Total amount of loan with
interest has to be recovered before superannuation.

(v) In case of any inconsistency between existing conditions and the

revised conditions, the existing conditions shall stand modified to
the extent of inconsistency with the revised terms and conditions

(vi) The revised monetary ceilings for HBA shall be valid for five Years.

(vii)
Other procedural modalities shall be decided with the approval of
Director (HR).
(Issued vide Office Order (48/2012) No. ONGC/ER/CP/ADV/005 dated
15.08.2012)

The Executive Committee (EC) in its 4th special meeting held on 02.05.2019 approved the
following modifications in the ONGC HBA Scheme:

1. Enhancement of Monetary Ceiling:

Revised
Monetary
Ceiling for Monetary Revised Total
Revised
construction / ceiling for admissible
Monetary
purchase of extension / amount under
ceiling for
Level house bigger and ONGC HBA
renovation (In
(restricted to better house (In Scheme (In
Rs.)
100 months Rs.) Rs.)
Basic Pay +
DA) (In Rs.)
(A) (B) (C) (A)+(B)+(C)
Executives of
E-5 level & 53 Lakh 15 Lakh 7 Lakh 75 Lakh
above
Executives upto
E-4 level and S 44 Lakh 15 Lakh 7 Lakh 66 Lakh
level employees
W & A level
36 Lakh 15 Lakh 7 Lakh 58 Lakh
employees

2. The revised HBA ceilings shall be effective from the date of issue of office order
in this respect. The revised ceilings shall also be applicable to the past cases where HBA
has already been sanctioned and drawn but the construction / extension is not completed.
However, the original cost / estimate shall not be allowed to be revised.

3. Employees who have already purchased / constructed a house / flat having availed
ONGC’s HBA and have also taken additional loan from bank (s) / financial institution (s)
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for such house / flat can avail differential HBA within the total admissible HBA amount
for all purposes to repay the outstanding amount of loan with interest to bank (s) /
financial institutions (s). While sanctioning HBA in such cases, earlier amount of
outstanding HBA with interest shall be adjusted.

4. The monetary ceiling shall be considered for review after 5 years from the date of
issue of this office order.

5. The change in other conditions are:

Sl. No. Existing Provisions Modified Provisions

Interest @ 5% (five present) per The rate of interest (on slab basis) shall
annum charged on total amount of be as follows:-
house building advance. Amount of total Rate of interest
advance for all per annum
a purposes
Upto Rs.
5%
45,00,000
Rs. 45,00,001 to
6%
Rs. 75,00,000
Eligibility: Eligibility:
All regular employees are eligible for All regular employees shall be eligible
b
grant of HBA after completion of for grant of HBA after completion of
five years of service. three years of service.
The stamp duty / registration charges The stamp duty / registration charges /
as per actual may be allowed within GST and any other tax levied by Govt.
c the above ceilings. authorities as per actual may be
allowed within the overall ceilings of
the advance amount.
Additional Housing Loan on creation Additional Housing Loan on creation
of second charge. of second charge.

Employees who have availed house Employees who have availed house
building advance from ONGC for building advance from ONGC for
construction / purchase of house and construction / purchase / renovation /
require additional housing loan to extension of house and require
meet the balance construction / additional housing loan to meet the
purchase cost, may be permitted to balance construction / purchase cost /
raise additional housing loan from renovation / extension, may be
other banks / recognized financial permitted to raise additional housing
d
institutions on creation of second loan from other banks / recognized
charge on the property constructed financial institutions on creation of
purchased with the help of ONGC second charge on the property
HBA to meet the balance constructed purchased with the help of
construction / purchase cost. In all ONGC HBA to meet the balance
other cases, creation of second construction / purchase cost /
charge is not allowed. renovation / extension. The existing
terms and conditions for availing
additional housing loan on creation of
second charge shall remain unchanged.

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 In such cases, total deduction on
various accounts including any other
loan availed from other financial
institutions, Banks and Credit Societies
etc. along with HBA to be sanctioned
should not exceed 70% of gross
monthly emoluments. The concerned
employee at the time of submitting
application for creation of second
charge, shall also provide details of the
other loan availed or proposed to be
availed from other financial
institutions, Banks and Credit Societies
etc.

6. All other terms and conditions governing grant of HBA shall remain the same.

CLARIFICATIONS:

Queries/issues relating to HBA Scheme are clarified as under:-

Query/Issue Clarifications
The restriction of 75 months basic pay +
Whether the restriction of 75 months DA is applicable for HBA under category
basic pay + DA is applicable for total “A” only i.e. revised monetary ceiling for
amount of HBA under category “A” construction/purchase of house.
only.
Whether repayment of bank loan under Yes.
HBA for category “A” without clubbing HBA can be availed for category `B’ and
`B’ and `C’ is admissible? If yes, can `C’ later on.
they avail HBA for category `B’ and `C’
later on?
Whether differential amount of Yes, subject to the condition that original
additional HBA for repairs and cost estimate is not revised.
renovation is eligible in the cases
where renovation has not completed
(within prescribed time period) till issue
of office order on revised HBA Scheme.

Whether the restriction of 75 months No. The eligible amount is calculated

basic pay plus DA is applicable in the based on estimated cost involved in
case of HBA for extension/bigger and extension / bigger and better house or
better house? 10 lakhs whichever is less.
Whether fresh HBA can be sanctioned Yes. Individual has the option to club A+B

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 in case individual wants to avail by or A+C or A+B+C
clubbing. If an employee has earlier
availed HBA for extension/renovation
partly, then can he/she later avail the
balance amount for clubbing purpose No.
when he/she sells the existing house
and applies for second HBA?
Whether employee can avail Yes.
extension / enlargement and
renovation separately.
How to calculate the additional HBA While calculating additional HBA under
admissible under revised HBA scheme revised monetary ceiling for repayment of
for repayment to housing loan availed housing loan availed from bank/financial
from banks/financial institutions. institutions, earlier amount of HBA drawn
shall be deducted from the revised total
admissible amount under HBA Scheme.
For illustration, in case of an employee
who has earlier availed 20 lakhs under
pre-revised HBA scheme and is presently
entitled for 40.0 lakhs under revised total
admissible amount, the amount of HBA
admissible for repayment of loan shall be
calculated as under:-
Revised HBA entitlement = 40.0 lakhs
Amount already drawn = (-) 20.0 lakhs.
------------------
Admissible amount = 20.0 lakhs
==========
The HBA amount shall be restricted to
outstanding loan amount plus interest
payable to financial institutions / banks or
admissible HBA amount, whichever is
less.

(Issued vide Office Order (13/2013) No. ONGC/ER/CP/ADV/005 dated

15.02.2013)

4. Cost ceiling:

There will be no cost ceiling for purchase/construction of house by the

employee. The employee concerned will however be required to furnish complete
details of the sources of funds arranged by him/her for construction/purchase of
house in prescribed HBA Application Form/Performa ‘S’. It will be the sole
responsibility of the employee concerned regarding correctness of the declared
sources of funds. In case at any stage, it is discovered that the declared sources of
funds are not correct the responsibility for the same will solely rest on him/her and
he/she will be required to justify the same.

5. Rate of interest:

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5.1 Interest @ 5% (five percent) per annum shall be charged uniformly on
total amount of house building advance with effect from 1.4.2004.

Amendment:
The rate of interest (on slab basis) shall be as follows:-
Amount of total advance for all purposes Rate of interest per annum
Upto Rs. 45,00,000 5%
Rs. 45,00,001 to Rs. 75,00,000 6%

5.2. In cases where employees have availed house building advance prior to
1.4.2004 and are in the process of re-payment of principal of house building
advance, interest at pre-revised rates as indicated here under shall be charged upto
31.3.2004 and interest on outstanding principal thereafter shall be charged @ 5%
per annum.

Amount Upto Rs. 30,000/- Rs,30,001/- to Above

Rs. 3,00,000/- Rs. 3,00,000/-
Rate of interest 5.5% 6% 8%

5.3 0.5% rebate on rate of interest will be admissible to the employees who
have adopted small family norms.

6. Repaying capacity:

6.1 The repaying capacity of the employee will be calculated on the following
basis:-

Length of remaining service Salary

Retiring after 20 years 50% of basic pay plus DA
Retiring after 10 years but not later 60% of basic pay plus DA plus
than 20 years 80% Gratuity.
Retiring within 10 years 66.67% of basic pay DA plus
90% Gratuity.

W.e.f. 2nd November, 2010, repaying capacity has been revised as follows:
Length of remaining service Salary
Retiring after 20 years Total deduction on various
Retiring after 10 years but not later accounts along with HBA to be
than 20 years sanctioned should not exceed
70% of gross monthly
Retiring within 10 years emoluments.
Gross monthly emoluments shall include the following items:
 Basic Pay
 Dearness Allowance
 HRA/Self Lease
 CMRE
 Non Practising Allowance (For medical personnel)
 All field/location based allowances
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  Any other allowance under “Cafeteria Approach”.
(Issued vide office order no. ONGC/ER/CP/ADV/005, dated, 2nd November, 2010)

6.2 Balance HBA will be recovered from Terminal Dues to be calculated

notionally till the date of retirement.

6.3 Once the repaying capacity has been calculated, no recalculation of

repaying capacity will be done except on pay revision. However, the cost
estimates once submitted would not be allowed to be revised.

7. Release of House Building Advance:

7.1 The HBA will be released on completion of the required administrative,

civil & legal formalities. The release of advance and commencement of recovery
schedule is given below:-

Sl. Type % of amount to be Effective date of

released recovery after release
of instalments.
I. II. III. IV.
1. Purchase of ready 100% The next month from
built flat /house drawal of advance

2. Purchase of plot and 20% -for purchase of 24 months from drawal

construction of land. Balance in two of first instalment or
house. equal instalments – completion of house,
50% on mortgage of whichever is earlier.
land and 50% on
construction upto
plinth level.
3. House / flat from As per payment 18 months from drawal
Housing schedule by the agency of first instalment or
Development / civil report completion of
Authorities construction, whichever
is earlier.
4. Construction on 50% on Mortgage of 18 months from drawal
own land title deed. 50% of first instalment or
construction upto completion of
plinth level. construction, whichever
is earlier.
5. Purchase of flat / As per payment 18 months from drawal
house from private schedule of the builder of 1st instalment or
builder or as per inspection completion of
report by civil construction, whichever
section/PWD is earlier.

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8. Repayment of HBA:

8.1 The principal amount and interest accrued thereon shall be repaid as
indicated hereunder:

HBA No. of instalments

Principal Maximum 225 equal installments
Interest Maximum 75 equal installments

8.2 The above re-payment schedule shall be applicable only to the fresh cases
where House Building Advance has been sanctioned after 17.09.2004. In all past
cases, the principal amount of HBA and interest shall be recovered in 180 and 60
equal instalments respectively.

8.3 In case, the remaining service of a loanee employee is less than the period
indicated in repayment schedule, the principal of HBA and interest accrued
thereon will be recovered within the remaining service period.

9. Penal Rate of Interest.

9.1 The amount of HBA is released in instalments / lump sum for the purchase
of land and / or for construction of house / purchase of ready built house / flat. The
amount released for the purpose is required to be utilized normally within the
period /time laid down in the scheme and in exceptional cases, within the
extended period with the approval of the competent authority. In the event of
failure to complete the purchase / construction within the specified period, the
employee concerned is required to refund the full amount of the advance drawn by
him together with interest accrued thereupon immediately in one lump sum,
failing which penal interest @ 15% per annum over and above the normal rate of
interest shall be charged from the defaulting employees.

9.2 The advance released for the purchase of land should be utilized with two
months from the date of drawal of advance and the original sale deed must be
submitted, failing which the entire amount alongwith penal interest will be
recovered in one lump-sum.

9.3 The Incharge, Loan & Advances will inform the concerned PCS Finance,
the particulars of the defaulting employees immediately after the lapse of the
prescribed time limit.

10. Procedural formalities:

10.1 The employees who intends to avail HBA, will submit application for
grant of HBA in prescribed proforma (Annexure-A). The separate permission
from the competent authority for purchase of property may be discontinued. In
case, applicant is of E-7 and above level, a copy of HBA application shall be sent

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 by the concerned Head, HR/ER to the Chief, ER at ONGC Hqrs. However, if the
purchaser/seller has official dealing with the employees or his subordinate, than
prior permission in proforma SF under CDA Rule 22 will be required.

10.2 The Process Flow charts regarding HR process involved in grant of HBA
for purchase of land & construction of house thereon and purchase of ready build
house /under construction house are indicated at Annexure -B & Annexure -C
respectively for guidelines.

10.3 Once Head HR/ER sanctions HBA, instalments may be released by the
Incharge, Loan & Advances (not below E-3 level), legal vetting may be kept
limited to “title clearance”. The Agreement Bond, Surety Bond, Indemnity Bond
and Deed of Under taking are in standard legally vetted format as per Annexures
indicated below and can be verified by Loan & Advance Section:-

Agreement Bond - Annexure- D

Surety Bond - Annexure- E
Indemnity Bond - Annexure-F

10.4 The Civil clearance and inspection at each stage of construction may be
dispensed with. Instead, loanee employee be asked to submit a certificate from a
registered Architect before disbursement of instalments.

10.5 On completion of construction, loanee employee will have to submit

completion certificate issued by the Municipality or house tax bill or certificate
from Registered Architect for ready built/under construction house only. In case
employee fails to submit any of these documents, Incharge- Loan & Advances
shall initiate action for verification of completion of house through ONGC Civil
Engineering Department. After verification, if Civil Engineering Department
confirms the completion of house, the date on which employee informs Incharge-
Loan & Advances about completion of house, shall be considered the date of
completion.

10.6 The documents to be submitted by an employee for grant of HBA in

different cases, are listed at Annexure- G.

11. Non encumbrance certificate and indemnity bond

NEC for more than 12 years required to be submitted from Sub-Registrar.

Further, the loanee employee must furnish an indemnity bond indemnifying
ONGC against any liability/compensation in the event of any of the certificates so
produced being found to be inaccurate or not true or contain discrepancies or false
information on any account whatsoever. The bond must indemnity ONGC against
any fault/discrepancies committed with the transaction.

12. Mortgage of property:

12.1 The loanee employee already holding a marketable title to the land by way
of registered sale deed or registered lease deed, on which the house / property is to
be constructed or is being constructed, will deposit the aforesaid Title Deed of the
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 land and such other documents which the HBA sanctioning authority may
prescribe, with the Incharge, Loan & Advances of the ONGC with a covering
letter as per Annexure-H. The authorised officer will confirm the transaction as
per draft letter, Annexure-I on receipt of the Title Deeds(s) and other documents
which are called for, the Incharge, Loan & Advances will record the creation of
Equitable Mortgage by delivery and deposit of Title Deeds by signing the
Memorandum of Entry (Annexure-J) will be pasted on the Register of HBA
maintained by the Loan & Advances section and also confirm the creation of
equitable mortgage to the employee vide Annexure-K. A day or two after the
creation of equitable mortgage the employees will make a declaration, as per
Annexure-L on non-judicial stamp paper of requisite value depending upon the
State concerned and swear before the Notary Public of the District. He will submit
the duly sworn in declaration to the Incharge, Loan & Advances, who will arrange
to keep the same along with the Title Deeds earlier deposited by the loanee
employee.

12.2 The loanee employee purchasing a ready built house, will be required to
deliver and deposit the registered Sale Deed and the registered Lease Deed of the
appertaining land if the same is leasehold, in the same manner and observe all the
formalities, documentation, swearing in the Declaration, etc. as detailed above.

12.3 The employees acquiring dwelling house through Co-operative Housing

Societies will create Equitable Mortgage by depositing the “Share Certificate of
Housing Co-operative Societies” in place of clear valid title, if they are not able to
get the title of the property by registered deed. The procedure to be followed in
this regard is detailed below:

A. A loan agreement on non-judicial stamp paper of a requisite value.

B. A deed undertaking to execute a legal mortgage in equitable form

at employee’s own expense, on non-judicial stamp paper according to the
rates as per Indian Stamp Act, as amended by the State.

C. Irrevocable Power of Attorney in favour of ONGC under which the

Employees shall appoint ONGC as an Attorney for executing legal
mortgage on a non-judicial stamp paper of proper value.

D. Deposit of share certificate and allotment letter in favour of ONGC with

due intimation to the Society regarding deposit of certificates with the
ONGC in lieu of loan for the purchase of plot/house/flat.

E. Letter from the concerned employee addressed to the Society, requesting

the society to agree and confirm to the ONGC that the society shall not
transfer the property in favour of any other person on the instructions of
the applicant allottee without the written consent from ONGC.

F. Surety bond on non-judicial stamp paper of proper value.

G. The HBA sanctioning authority satisfying itself that property for which
loan has been advanced is otherwise unencumbered and society’s title is
clear and has not received loans/advances for this purpose.

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 H. The surety bond remaining valid throughout the currency of the loan and
repayment of interest.

I. Besides production of the above documents, the employee acquiring

property through Co-operative Societies, will also make an endorsement
on the share certificates for transfer of share in favour of ONGC on the
condition that after repayment of the loan the shares shall be re-transferred
by the ONGC in the name of the concerned employees.

13. Insurance:

Immediately on completion or purchase of the house/flat, the same is to be

insured against fire, flood, earthquake and lightening for a sum not less that the
amount of advance and the policy is to be pledged to and deposited with the
Company. The employee shall thereafter pay the premium regularly and produce
the premium receipts to the Incharge, Loan & Advances for verification.

14. Time limit for completion of construction/purchase formalities.

The loanee employee will be required to carry out the construction exactly
as per approved plan and specifications based on which the advance was
computed and sanctioned. He shall complete the construction/purchase formalities
of the house within the period indicated below:

Purchase of plot and construction 24 months for the date of drawal of

of house thereon Ist instalment
Construction of house on own land 18 months for the date of drawal of
Ist instalment
Purchase of ready built house from 3 months from the date of drawal of
private builder/co-operative advance.
housing society.
Purchase of under construction 18 months from the date of drawal of
house from private builder/co- Ist instalment
operative housing society/housing
development authority.

15. Extension of time limit:

In case the construction of house is not completed within the stipulated

period due to circumstances beyond the control of employee an extension of the
time limit may be allowed with the approval of competent authority.

Extension Competent authority

Upto one year HBA Sanctioning Authority
Further one year Asset Manager/Basin Manager/ Head,
(beyond initial one yea) Institute/ Head, RO /Level-I or HR-I.
Further extension Concerned Director.

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16. Surety:
The employees will required to furnish surety bond from two employees of
equal or higher status having sufficient length of service upto the period of
recovery of HBA interest from loanee, in following cases:

A. HBA for purchase of ready built house from private parties;

B. HBA fro purchase of ready built house from Government agencies/
Cooperative Societies;
C. Repayment of balance amount of house building advance taken by an
employee from parent organisation /department and interest accrued
thereon.

17. Funds allocation:

The funds for HBA will be released quarterly. The Corporate Budget at
Hqrs. shall release the funds prior to the end of previous quarter, to ensure
continuity of funds. The Corporate Budget will allocate funds to the respective
Asset/Basin/ RO/ Plant/ Institute as per requirement. The Corporate Budget may
allot suitable block/ code no. to the respective Asset/Basin/ RO/ Plant/ Institute, to
facilitate proper record keeping. Once funds are allotted by Corporate Budget, the
Incharge, Loan & Advances may issue the release order and earmark the funds
simultaneously.

18. House Building Advance for acquisition or purchase of a house and /or
tenement already constructed and ready for occupation.

As a welfare measure, the house building advance shall also be admissible

to the employees who are desirous of acquisition or purchase of old house or
tenement already constructed and ready for occupation, subject to the following
conditions:-

A. All such request shall be examined / considered on the basis of the

remaining anticipated life of old house, in question and its current
market value as assessed / certified by a Govt. approved Assessor
of Immovable Property duly certified by the ONGC Civil Engineer.

B. The concerned employee or his spouse or any of the members of

his family wholly dependent upon the employee has not applied for
or been granted any facility loan, advance or other benefits under
any of the Group Housing Schemes formulated by the Life
Insurance Corporation of India or the Central / State Govt. or under
any urbanised scheme of development or Housing Board or
Housing Finance Society or howsoever to the end and intent that
no multiple or extra benefit shall be availed of by the employee for
any of the purposes relating to the grant of house building advance.

C. In case both the husband and wife are employees of the

Corporation and are otherwise eligible for the grant of house
16
 building advance, the advance shall be admissible to only one of
them and not to both of them.

D. The entire admissible amount of advance paid in one lump sum, on

the applicant’s executing Agreement or Personal Bond in the
prescribed form of repayment of the advance, and after obtaining
of Surety from two Corporation’s employee of adequate status
having sufficient length of service upto the period of recovery of
the advance with interest from loanee. The acquisition or purchase
of the house must be completed and the property is to be
mortgaged within 3 months of the drawal of the advance.

E. All other terms and conditions governing the grant of house

building advances shall remained unchanged.
19. Grant of House Building Advance who acquire flats / house through
membership of Co-operative Group Housing Societies.

House Building Advance may be granted to the employees who are

members of such societies without the necessity of mortgaging the land and / or
building where such flats are situated. The grant of advance in such cases shall be
subject to the following conditions:-

A. The applicant shall execute a Personal Bond and also furnish a

Surety Bond. The Surety Bond shall be executed jointly by two
sureties who are of adequate status having sufficient length of
service upto the period of recovery of the advance with interest
from the loanee. The surety should not be husband / wife or
member of the same joint family and as far as practicable, should
not have stood surety for anybody else.

B. The amount of House Building Advance sanctioned to an

employee shall be disbursed in the following manner:-

i) A sum equal to 30 per cent of the advance sanctioned shall

be payable to the applicant on his executing necessary
documents.

ii) The remaining amount of the advance sanctioned to an

employee shall be disbursed in suitable instalments as fixed
by the sanctioning authority at the time of issue of sanction,
on the basis of the payment schedule of the flat furnished
by the concerned Co-operative Group Housing Society. For
each disbursement, the employee will produce a demand
letter from the Housing Society indicating the progress of
construction, the correctness of which may be verified by
the sanctioning authority by arranging inspection of the
premises in terms of HBA rules.

iii) Original agreement between the housing society and the

applicant the share certificates issued by the society, the
letter from the society allotting the flat to the members and

17
 original receipts for payment made to the society should be
produced for verification.

iv) A certificate to this effect that the Co-operative Group

Housing Society is registered with the Registrar of Co-
Operative Societies of the concerned State should also be
obtained.

C. Other conditions governing grant of HBA shall remain unchanged.

20. Grant of house building advance in the cases where an employee had drawn a
part of HBA for purchase of land and utilized it but could not construct the
house due to valid/ unforeseen reasons:

20.1 There may be some cases where an employee had drawn a part of house
building advance for purchase of land and utilised it, but could not construct his
house thereon due to valid/unforeseen reasons beyond his control such as:

A. Dispute over land

B. Non clearance of construction map
C. Plot being in riot prone area which has subsequently been noticed
after the drawl of advance.
D. Other valid or unforeseen reasons.

20.2 The employees may be granted fresh house building advance in above
stated cases as per their entitlement, on merit of the case subject to the following:

A. The part of advance drawn earlier for purchase of land may be

reduced from the fresh advance.

B. Simple interest on the part house building advance drawn earlier

may be charged with the approval at the level of E-7 in very
genuine cases subject to:

i. utilisation of funds for the purpose, it was granted

ii. verification of valid or unforeseen reasons put forward by

the employees for non-construction of the house on
purchased land.

C. Other terms and conditions of house building advance will remain

the same.

21. Grant of house building advance in the cases where an employee had drawn a
part of advance for purchase of ready built house/flat but could not get
possession due to one or other valid/unforeseen reasons.

18
21.1 There may be some cases where an employee had drawn a part of house
building advance for purchase of ready built house/flat but could not get
possession due to one or other valid/unforeseen reasons beyond his control:

21.2 The employees may be granted fresh house building advance in above
stated cases as per their entitlement, on merit of the case subject to the following:

A. The proper utilisation of funds for the purpose and valid reason(s)
beyond his control put forward by the employee for not getting
possession of the house/flat may be verified by the concerned Head
(P&A), Civil Engineering. Department and Legal of concerned
Region/Work Canter etc.

B. The Competent authority for grant of fresh house building advance

in such cases would be Asset Manager/ Basin Manager/ Head,
RO/Head, Institute.

C. The amount of house building advance availed earlier by the

employee may be reduced from the amount of fresh HBA.

D. The employee will have to pass on all monetary benefits i.e.

interest, penalty or liquidated damages payable by the by the
builder/society if any, under the provision of agreement, to the
ONGC.

E. Other terms and conditions of house building advance will remain

the same.

22. Grant of house building advance to the employees for repayment/refund of

housing loan raised from banks/financial institutions:

The house building advance may be sanctioned to the eligible employees

for repayment/refund of housing loan raised from banks/financial institutions for
construction/purchase of house subject to the following conditions:

A. Before raising the housing loan from bank/financial institution, the

employee who is entitled for ONGC HBA will have to apply for
HBA. In the event of paucity of funds, HBA sanctioning authority
may grant permission to raise such housing loan from
bank/financial institution.

B. The employee concerned will have to take prior permission for

raising such loan.

C. HBA sanctioning authority will have to satisfy himself that loan

taken from the bank/financial institution was taken by the
employee entirely for the purpose of construction/purchase of
house.

D. The loanee employee will have to satisfy the provisions of relevant

CDA Rules applicable to him.
19
With reference to office order no. ONGC/ER/CP/ADV/005, dated, 2nd November,
2010, it is clarified that additional HBA within the revised ceilings may be
allowed in such cases where the loanee employee have availed housing loan from
financial institution/bank to meet the fund requirements for
construction/purchase/extension of house beyond the sanctioned HBA and now
wants to avail additional HBA for repayment of the said housing loan. This would
be admissible for cases where HBA has already been sanctioned and drawn but
the construction/extension is not completed.
(Issued vide office order no. ONGC/ER/CP/ADV/005, dated, 7th December,
2010)

The Executive Committee in its 472nd EC Meeting held on

17.08.2015, at New Delhi, accorded approval for modification in the condition of
paying back the housing loan taken by employee from Bank/Financial Institution
as under:

Existing Condition Modified Condition

a. Before raising the housing loan Employees who have not completed 5 years of
from bank/financial institution, the service and want to construct/purchase the
employee who is entitled for ONGC flats/houses by availing the loan from
HBA will have to apply for HBA. In bank/financial institutions, may be permitted to
the event of paucity of funds, HBA do so, from the date of joining ONGC, subject
sanctioning authority may grant to the following conditions :-
permission to raise such housing loan a. From the date of joining ONGC, an
from bank/financial institution. employee may apply to avail loan from
bank/financial institution for
construction/purchase of house.
b. The employee concerned will have to
take prior permission for raising such
b. The employee concerned will have loan.
to take prior permission for raising
such loan. c. HBA sanctioning authority, after being
satisfied that loan is being availed from
c. HBA sanctioning authority will the bank/financial institution entirely for
have to satisfy himself that loan taken the purpose of construction/purchase of
from the bank/financial institution was flat/house, may grant permission to raise
taken by the employees such housing loan from bank/financial
institution.
d. The loanee employee will have to d. The loanee employee will have to satisfy
satisfy the provisions of relevant CDA the provisions of relevant CDA Rules
Rules applicable to him. applicable to him.
e. The ONGC HBA shall be sanctioned
only after completion of 5 years’ service
to pay back the loan with interest
outstanding from Bank/Financial
Institutions. This shall be subject to
fulfilling of related procedural/legal
formalities/entitlement, as per existing
rules.
f. The loan will be granted only after
submitting all relevant documents with
20
 ONGC. The first charge will be with
ONGC.

2. This Office Order shall be effective from the date of issue.

(Issued vide Office Order (53/2015) No. ONGC/ER/CP/ADV/005 dated

02.09.2015)

Reference is invited to office order of even No. dated 02.09.2015

regarding grant of HBA for repayment / refund of housing loan taken from Bank /
Financial Institution.
Queries are being received from different locations regarding applicability
of instructions issued vide office order dated 02.09.2015 in respect of employees who
have not completed five years of service and have availed loan from banks / financial
institutions before issue of the said office order.

It is clarified that employees who have availed loan from banks / financial
institutions after joining ONGC, before completion of five years of service, but before
issue of the said office order, are eligible for grant of HBA for repayment / refund of
housing loan taken from Bank / Financial Institution in accordance with terms and
conditions issued vide office order dated 02.09.2015.

This clarification is being issued with approval of Director (HR).

(Issued vide office order No. ONGC/ER/CP/ADV/005 dated 04.04.2016.)

21
23. Grant of house building advance to the employees joining ONGC from other
PSUs/Govt. Departments for repayment of outstanding HBA advance to their
previous employer:

23.1 ONGC selects executives from Govt. departments/PSUs to attract good

talent in the organisation. While inducting such executives in the organisation, it
has been observed that these executives have taken advances for construction/
purchase of houses and conveyance from their previous employer. In the event of
their selection in the Corporation, they are not in a position to pay back the
amount of outstanding advances to their previous employer and their release for
joining against the selected post in the Corporation is held up.

23.2 ONGC may take over liability of repaying such advances of such
inductees to their previous employer in the interest of inducting good talent into
the organisation subject to the following conditions :-

A. The amount of HBA and Conveyance plus interest thereon on the

date of release shall be paid by the Corporation after the executive
actually joins ONGC.

B. Before making payment to the previous employer by the

Corporation, the executive will have to furnish a surety bond as
interim arrangement before his documents are released by parent
deptt. and he is in a position to create equitable mortgage by
deposit of title deed in favour of the Corporation for the total
amount of loan plus interest on the date of relief to create charge on
the said property.

C. The executive will have to enter into an agreement with ONGC

about the payment of balance amount of loan and interest already
paid to his parent deptt. by the Corporation as well as the interest
which is accrued on such an amount paid by the Corporation which
would be recoverable in monthly instalments from his pay and
allowances. The rate of interest chargeable on such advances would
be as per ONGC Rules.

D. The existing instructions in ONGC governing grant of House

Building Advance and Conveyance Advance that the employees /
executives must have rendered five years service and must have
cleared probation period respectively may not be insisted upon.

E. The total amount paid to the previous employer i.e. principal and
interest due up to the date of his leaving the previous organisation
will be treated as one interest bearing advance in ONGC and
interest would be calculated at the rates applicable in ONGC on
this total amount. In cases wherein the amount of principal and
interest due thereon on the date of joining ONGC works out more
than the ceiling admissible to such grade of executives in ONGC,
the amount of advance shall be restricted to such entitlement and
such inductee will have to settle the amount for the balance with
his previous employer.

22
 F. This will be applicable to those who join ONGC on or after
12.1.1993.

G. All other terms and conditions of ONGC house building and

conveyance advance schemes will be applicable in such cases.

SECOND HOUSE BUILDING ADVANCE FOR

EXTENSION /ENLARGEMENT OF HOUSE

1. Purpose:

This second house building advance shall be granted for extension/

enlargement of the existing house.

2. Eligibility:

All regular employees having five years service in ONGC and intend to
extend /enlarge their existing house after completion of existing house.

3. Monetary ceiling:

3.1 Estimated cost involved in extension /enlargement of existing house or `

6.00 lakh whichever is less. The ceiling has been revised to ` 10 lakh w.e.f. 2nd
November, 2010, vide office order no. ONGC/ER/CP/ADV/005, dated, 2nd
November, 2010.

3.2 The first HBA plus second HBA should not exceed 75 months basic pay +
DA or the prescribed HBA ceiling.

4. Rate of interest:

4.1 The interest @ 5% (five percent) per annum shall be charged uniformly on
total amount of second house building advance with effect from 1st April, 2004.

4.2 In cases where employees have availed second house building advance
prior to 1.4.2004 and are in the process of re-payment of principal of second house
building advance, interest at pre-revised rates as indicated here under shall be

charged upto 31.3.2004 and interest on outstanding principal thereafter shall be

charged @ 5% per annum.

Amount Upto Rs. 30,000/- Rs,30,001/- to Above

23
 Rs. 3,00,000/- Rs. 3,00,000/-
Rate of interest 5.5% 6% 8%

5. Repayment of second house building advance:

5.1 The principal amount and interest accrued thereon shall be repaid as
indicated hereunder:

Second HBA Instalments

Principal Maximum 90 instalments
Interest Maximum 30 instalments

5.2 In case, the remaining service of a loanee employee is less than the period
indicated in repayment schedule, the principal of Second HBA and interest
accrued thereon will be recovered within the remaining service period. The
balance of advance with interest remaining unpaid at the time of retirement, if
any, may be recovered from his terminal dues on employee’s prior undertaking.

6. Creation of additional charge on the extended/enlarged property:

The employees who availed second house building advance shall provide
additional charge on the property constructed out of second house building
advance in order to give full coverage for securing the amount of second house
building advance in the formate given at Annexure- M. In addition to this, an
indemnity bond shall also be obtained.

7. Release of sanctioned advance:

The sanctioned amount of Second HBA shall be released in two equal

instalments of 50% each. The second instalment shall fall due after completion of
extended portion upto roof level.

8. Allocation of funds:

The allocation of funds for second HBA will be given last priority within
the available budgetary resources for house building advance.

SECOND HOUSE BUILDING ADVANCE FOR

ACQUISITION OF BIGGER/BEETER HOUSE (IN LIEU
OF EXISTING FLAT/HOUSE
The employees who are in need of a bigger/better house but are unable to
extend/enlarge their existing flat/house due to applicable laws, may avail second
house building advance for acquisition of bigger/better house (in lieu of existing
flat/house). The salient features of the scheme are as follows:-

1. Title:

24
 Second HBA for acquisition of bigger/better house (in lieu of existing flat/
house).

2. Purpose:

The said HBA will be admissible to an employee for acquisition of bigger/

better house/flat at any place in India.

3. Eligibility:

3.1 The employees who purchased ready built house/ flat with the assistance
of HBA and are unable to extend/ enlarge their existing flat/house due to
applicable laws, will be eligible for said second HBA.

3.2 The said HBA would be available only once during the entire service after
completion of seven years of drawl of final instalment of first HBA.

3.3 The employees, who have already availed Second HBA for
enlargement/extension of house, shall not be eligible for this HBA.

4. Amount Admissible:

4.1 Second HBA to the extent of ` 6.0 lakh (revised to ` 10 lakh vide office
order no. ONGC/ER/CP/ADV/005, dated, 7th December, 2010) plus outstanding
principal amount of first HBA refunded by the employee or actual cost of new
house/flat whichever is less. (The amount of first HBA already availed by an
employee plus second HBA should not exceed 75 months basic pay + DA or
prescribed HBA ceiling, whichever is less).

4.2 The first HBA plus second HBA shall not exceed the corresponding
revised HBA ceilings.

5. Rate of interest:

5.1 The interest @ 5% (five percent) per annum shall be charged uniformly on
total amount of said second house building advance with effect from 1st April,
2004.

5.2 In cases where employees have availed said second house building
advance prior to 1.4.2004 and are in the process of re-payment of principal
amount, the interest at pre-revised rates as indicated here under shall be charged
upto 31.3.2004 and interest on outstanding principal thereafter shall be charged @
5% per annum.

Amount Upto Rs. 30,000/- Rs,30,001/- to Above

Rs. 3,00,000/- Rs. 3,00,000/-
Rate of interest 5.5% 6% 8%

6. Repayment of second house building advance:

25
6.1 The principal amount and interest accrued thereon shall be repaid as
indicated hereunder:

Second HBA Instalments

Principal Maximum 90 instalments
Interest Maximum 30 instalments

6.2 In case, the remaining service of a loanee employee is less than the period
indicated in repayment schedule, the principal of Second HBA and interest
accrued thereon will be recovered in equal monthly instalments within the
remaining service period. The balance of advance with interest remaining unpaid
at the time of retirement, if any, may be recovered from his terminal dues on
employee’s prior undertaking.

7. Release of sanctioned advance:

The sanctioned amount of said second HBA will be released on

completion of the required formalities. The release of advance and
commencement of recovery schedule is indicated below:-

Sl. Type of bigger/ % of amount to be Effective date of

better house released recovery after release
of instalments.
I. II. III. IV.
1. Ready built 100% in one lump-sum From the pay of the
Flat/house instalment month following that in
purchased from which second HBA is
private party drawn.
2. Flat/house In one lumpsum From the pay of the
purchased from Co- instalment or month in which
operative according to the possession is taken or
Society/Housing payment plan of after six months from
Board. builder whichever is the date of release of
later. second HBA, whichever
is less.
3. Construction of In two equal From the pay of the
house. instalments of 50% month following that in
each. First instalment which Ist instalment is
on submission of all drawn.
required documents
and second instalment
on completion of
construction up to roof
level.

8. Modalities:

26
8.1 The employee will be required to submit a proposal for consideration of
HBA sanction authority with justification/ reasons compelling him to go for sale
of existing house/flat and purchase of new house/flat.

8.2 The HBA sanctioning authority after satisfying itself with the geniuses of
justifications/reasons for sale of existing house/flat may accord permission for sale
of existing house /flat.
8.3 The employee will have to furnish two sureties of equal or higher level
official for release of mortgage in respect of existing house/flat purchased through
first HBA. After acquiring two sureties, HBA sanction authority will release
mortgage in respect of house /flat purchased with the assistance of First HBA.

8.4 The employee, out of the sale proceeds of the old house/flat, shall repay
within seven days of the sales to the ONGC the out standing principal amount of
Ist HBA standing in his account as on the date of such repayment by him to
corporation.

8.5 The interest accrued on the principal amount of Ist HBA as on the date of
its repayment, will be calculated separately and the amount as arrived in
maximum sixty installments as specified for Ist HBA simultaneously with
recovery of second HBA.

8.6 The employee will submit request for second HBA for acquiring
bigger/better house along with the copy of sale deed pertaining to old house
details of new house proposed to be purchased with the assistance of second HBA
and sale proceeds. He would have to submit all necessary/relevant documents as
required under the ONGC HBA rules to concerned HBA sanctioning authority for
grant of second HBA.

8.7 The employee will have to furnish an agreement for total amount
disbursed to him which includes the amount of second HBA to the extent of Rs.
6.0 lakhs + outstanding principal amount of first HBA.

8.8 The HBA sanctioning authority will grant second HBA after taking into
consideration the sale proceed of old unit and purchased price of new unit . The
additional HBA would be restricted to admissible second HBA (i.e Rs. 6.0 lakh,
revised to ` 10 lakh vide office order no. ONGC/ER/CP/ADV/005, dated, 7th
December, 2010) plus outstanding principal amount of HBA that has been repaid
or the purchase price of new house, whichever is less.

8.9 The employee shall mortgage the new house /flat to ONGC.

8.10 Immediately on purchase of new house /flat, the same will be insured
comprehensively against earthquake, fire, flood, lightening and riots for a sum not
less then the amount disbursed to the loanee employee as per para 8.8 above and
policy will be pledged to and deposited with the company. The employee shall
thereafter pay the premium regularly and produce the premium receipt to HBA
sanctioning authority for verification.

9. General terms & conditions:

27
9.1 The employee will be required to sell the existing house/flat purchased
with first HBA and second HBA will be granted to him for purchase of another
bigger /better house/flat. The betterment should be for increasing the original
carpet area or location and not for cosmetic betterment or other
alternations/modifications.

9.2 All transaction viz; sale of existing unit, purchase of new unit and
mortgage thereof in favour of ONGC, will have to be completed with in a period
of six months from the date of release of mortgage in respect of old house failing
which penal interest @15% per annum over and above the normal interest will be
charged on amount on said HBA. In exceptional cases where new house cannot be
purchased within six months due to non availability of funds, the said condition of
six months may be relaxed approximately by HBA sanctioning authority.

9.3 All transaction made in respect of sale of old house and purchase of new
house will be brought to the knowledge of competent authority in purchase of
CDA Rules.

9.4 The recovery or premium payable by a lonee towards HBA Lonee

Insurance Scheme shall be discontinued when employee deposits outstanding
balance of first HBA with ONGC. On disbursement of second HBA, the loanee
employee will have to pay the premium of said insurance on total amount
disbursed to him which includes the amount of second HMA to the extent Rs. 6.0
lakhs plus principal amount of first HBA and interest accrued on first HBA.

9.5 For the purpose of allotment of funds, this second HBA will be accorded
same priority as given in case second HBA for extension/enlargement t of house.

10. This scheme is applicable with effect from 17.08.2002.

GRANT OF SECOND HBA FOR ACQUISITION OF

BIGGER/BETTER HOUSE (IN LIEU OF EXISTING FLAT/HOUSE)
IN SPECIAL CASES
1. Grant of second HBA for acquisition of bigger / better house may be
considered in such cases also where in anticipation of the said scheme, the
employees have disposed off their flat / house purchased through first HBA on or
after 1.4.2001, with the permission of competent authority and have deposited
outstanding principal of first HBA together with accrued interest. In said cases,
only outstanding principal amount of first HBA refunded by the concerned
employee, if any, will be returned to him together with the admissible amount of
second HBA. However, the interest on first HBA refunded by him will be treated
as settled.

2. In the cases where employees have disposed off their flat / house
purchased through first HBA on or after 1.4.2001, with the permission of
competent authority in anticipation of the said second HBA scheme and have
taken housing loan from Govt. recognized financial institutions / banks to meet

28
 the balance cost of bigger /better house, the second HBA for bigger/better house
may be granted for repayment of housing loan subject to the following:-

A. The said HBA for repayment of loan taken from Govt. recognized
financial institutions/banks would be considered only in respect of
those employees who before raising such loan have taken prior
permission from the competent authority.

B. HBA sanctioning authority will satisfy that the loan taken from
financial institution/ bank by the employee has been utilized
entirely for the purchase of bigger/better house.

C. The amount of second HBA should not exceed the balance out
standing loan plus interest payable to financial institution/bank or
Rs. 6.0 lakhs, (revised to ` 10 lakh vide office order no.
ONGC/ER/CP/ADV/005, dated, 7th December, 2010) whichever is
less.

3. Similarly, In the cases where employees have disposed off their flat /
house purchased through first HBA on or after 1.4.2001, with the permission of
competent authority in anticipation of the said second HBA scheme and have
made part payment to the builder/concerned development authority towards the
cost of new bigger/ better house and are in need of financial help through second
HBA to meet the balance cost of new bigger/better house, second HBA may be
granted subject to the following:-

A. The transaction made with the builder / development authority for

purchase of new bigger / better house should have been brought to
the knowledge of competent authority.

B. The concerned employee will have to furnish documentary

evidence confirming part payment made to the builder /
development authority towards the cost of new bigger / better
house along with other documents required under the HBA rules.

C. The amount of second HBA should not exceed the balance cost of
the new bigger/better house plus interest (if any) payable to the
builder/ development authority or Rs. 6.0 lakhs (revised to ` 10
lakh vide office order no. ONGC/ER/CP/ADV/005, dated, 7th
December, 2010) which ever is less.

4. All other terms and conditions governing the said second house building
advance shall remain unchanged.

ADDITIONAL HOUSE BUILDING ADVANCE

1. Consequent upon the revision of pay scales, additional house building
advance may be sanctioned subject to the following:

29
 A. Amount of additional HBA shall be restricted to the original cost/
estimate of proposed house or maximum eligibility on the basis of
revised pay or prescribed HBA ceilings whichever is less after
deducting the amount of HBA already drawn plus amount of non
refundable CPF drawn for this purpose.

B. Original cost/estimate of proposed house shall not be allowed to

the revised.

C. The additional HBA shall not be merged with the first or second
HBA availed earlier and its record be maintained separately under
the head “Additional HBA”. The recoveries towards additional
HBA shall however be made concurrently with earlier HBA within
the balance instalments due from the loanee employee.

D. Additional HBA would be considered only in such cases where

construction is within the permissible period or approval of
competent authority for extension of time exists. In cases, where
house has already been completed, no additional HBA will be
considered.

2. Consequent upon the upward revision of HBA ceilings with effect from
17.9.2004, the additional HBA may be sanctioned in the past cases where house
building advance has already been sanctioned and drawn but the construction is
not completed.

3. Additional HBA may be allowed in such cases also where in anticipation

of review of HBA ceilings, the employees have availed housing loan from other
financial institution/bank to meet the fund requirements for construction/
purchase/extension of house beyond the sanctioned HBA and now want to avail
additional HBA for repayment of the said housing loan. The additional HBA in
such cases may be sanctioned, subject to the following:-

A. The loanee employee should have obtained explicit permission

from HBA sanctioning authority on a date prior to raising such
housing loan and the said transaction should have been brought to
the notice of the competent authority within the prescribed time.

B. Additional HBA shall be admissible only for housing loan availed

from a financial institution or bank, and not from any other source.

C. Additional HBA shall be restricted to any one of the following

whichever is less:-

I. The balance principal of housing loan availed from the

financial institution/bank.
or
II. The approved estimated cost involved in construction/
purchase/extension of the house after deducting the ONGC
HBA already availed plus non-refundable CPF drawn for
this purpose, if any.
or
30
 III. The difference between the revised entitled HBA and HBA
already availed.

D. The revision of original estimate will not be allowed under

any circumstances whatsoever.

E. The additional HBA shall not be merged with the first or

second HBA availed earlier and it’s record be maintained
separately under the head “Additional HBA”. The
recoveries towards additional HBA shall, however, be made
concurrently with earlier HBA within the balance
instalments due from the loanee employee.

ADDITIONAL HOUSING LOAN ON CREATION OF

SECOND CHARGE
(Also refer amendments done in 4th special EC meeting above held on
02.05.2019)

The employee who have availed house building advance from ONGC for
construction /purchase of house and require additional housing loan to meet the
balance construction /purchase cost, may be permitted to raise additional housing
loan from other banks/recognized financial institutions on creation of second
charge on the property constructed purchased with the help of ONGC HBA.

The procedure as outlined hereunder shall be followed henceforth to

regulate the additional housing loan on creation of second charge.

1. ELIGIBLITY:

The employees who have availed ONGC, HBA either for construction of
house or for purchase of ready built house /flat and require additional housing
loan from other Banks/recognized Financial institutions to meet the balance
construction /purchase cost of he house, will be eligible for additional housing
loan on creation of second charge.

2. PROCEDURE:

A. An employee, who desires to avail additional housing loan from

other bank/financial institution, will have to ascertain the
willingness of concerned bank /financial institution on the letter of
consent as per Annexure- N.

B. He/She will submit his/her request in prescribed format

(Annexure- O) to the concerned HBA Section.

C. After scrutiny of case, the Incharge of concerned HBA Section will

determine the eligibility of employee for additional housing loan
.An employee may be permitted to avail additional housing loan to
31
 the extent of difference between approved estimated cost of house
/construction and HBA availed from ONGC plus non refundable
CPF advance drawn for this purpose, if any.

D. An entry indicating the following information’s of regard to

creation of second charge on the property purchased through
ONGC-HBA shall be made in HBA records of the loan employee
by the concerned HBA Section

I. Name of the Bank/Financial institution providing additional

housing loan on creation of second charge.

II. Amount of additional housing loan being availed on second charge

III. Number and amount of installments

IV. Purpose of additional housing loan.

E. After making above entries in HBA record of loanee employee

NOC/permission letter as per format given at Annexure- P will be
issued to the bank/financial institution for further action to be taken
at their end. It may be ensured that all original title document of the
property shall be kept in safe custody with ONGC and will not be
released to the loanee employee till such time NOC from
bank/financial institution is not received for release of such
documents.

3. Other terms and conditions:

3.1 There will be no contractual obligation between ONGC and financial

institution /bank. No guarantee or security shall be provided by ONGC.

3.2 ONGC shall in no way be responsible to deduct EMI’s from salary of the
employee. The repayment of EMI’s and other money will be done directly by the
employee to the bank/financial institution.

3.3 ONGC will keep the bank/financial institution informed as and when the
services of an employee who have availed additional housing loan are terminated
due to any reason whatsoever.

3.4 The interest and service /processing charges etc. payable on additional
loan, shall be borne by the loanee employee and ONGC will have no liability on
this account.

INTERPRETATION
In case of any doubt regarding interpretation of any of the provisions of this scheme, the
matter shall be referred to the Chief, Employee Relations at Headquarters, who shall
decide the same.

32
 (N C Baliarsingh)

General Manager

33
 ANNEXURE-A ( Form No. ADV-HBA-01)
OIL AND NATURAL GAS CORPORATION LTD

HOUSE BUILDING ADVANCE

CPF No: Name:

Designation: Section/Site:
Org. Unit: Location:
Date of Birth: Date of joining ONGC:
- - - -
Basic Pay: (Rs.) PP: (Rs.) Sp.Pay: (Rs.) DA: (Rs.)

If spouse is employed in ONGC/other PSU/State/Central Govt, state his/her

Name: Designation: Id No.

Name of the organization:
Has he/she availed House Building Advance:
Yes No
Address(s) of house owned by you/spouse/minor child, if any:

Purpose of Advance:
1. Outright purchase of ready built house/Resale 2. Construction of house on own and
3. Purchase of land and construction of house 4. Enlargement of existing house.
Details of land/house:
Address of the Property:

Name & Address of the Seller/Agent:

Whether Seller/Agent has any official dealing with the employee

or his subordinate: (if yes, obtain prior permission, proforma ‘S’): Ye No
s
Area of Land/plinth area of house (in sq.mt.):
Estimated Cost of
Land: Rs. House/Flat: Rs. Total: Rs.
Amount of advance requested: Rs.
Details of Sources of Fund (with documentary proof):

Certified that
1. The information provided is true to the best of my knowledge and belief.
2. I agree to abide by the terms and conditions stipulated under the HBA Rules.
3. Neither my spouse/minor child nor I have applied for and/or obtained loan in the past from any
Govt. source/Provident Fund for acquisition of a house.
4. I agree that in case of loan with interest, not being refunded at the time of separation, the balance
may be recovered from my Terminal benefits.

Date: Signature of the Employee

Recommendations:
34
Date: Name and Signature of Controlling Officer
1. Scrutinised the application and enclosures and process for grant of HBA is being
initiated.
2. The applicant is in the grade of E7 and above, a copy of the application is endorsed to
Chief ER
for perusal of the details of transaction given above.

Date: Name and Signature of I/C HBA,

Administration Deptt. C.C. Chief ER

35
 ANNEXURE B
PROCESS FLOW CHART DEPICTING HR PROCESS IN RESPECT OF HBA FOR PRUCHASE OF LAND
AND CONSTRUCTION OF HOUSE

Employee applies for Legal Dept. clears title

purchase of land alongwith
Negotiation letter from seller
Registered Architects certificate

CC- Chief Loan & Advance Section Loan & Advance Section
ER for E7 scrutnizes and forwards earmarks fund
& above

CC Estt. CA sanctions CA/Loan & Advance Section

For records sanctions/ release of Ist
instalment for construction

Sanction Loan & Advance Section

Order earmarks fund and issues Employee submits required
S.O document

Employee submits document Loan & Advance Section issues

i.e Agreement Bond for Release Order for Ist instalment
purchasing land for construction

Release Loan & Advance Section Finance disburses

Order checks, issues Release
for purchase Order
of land

Finance disburses Employee submits Registered

Architect’s certificate for
Plinth level completion &
request for final
Employee submits document instalment
as mentioned at Annexure VI
& requests Ist instalment for
construction

Loan & Advance Section Loan & Advance Section

Checks fund & forwards earmarks fund, issues R.O
for last instalment

Contd…

36
 Finance disburses final
Instalment

CC from Employee submits

Municipality/ Completion
House Tax Certificate
Bill

Civil Deptt. Loan & Advance Section

Verification records
If necessary

*************

37
 ANNEXURE-C

PROCESS FLOW CHART DEPICTING HR PROCESS IN RESPECT OF HBA FOR READY BUILT
AND UNDER CONSTRUCTION HOUSE

Employee applies Employee submits documents

alongwith ten i.e agreement bond,
documents indicated surety bond
at Annexure VI

Loan & Advance Section

Issues release order
CC-Chief ER Loan & Advance Section
For E7 & above scrutinizes Finance disburses Lumpsum Employee
Amount submits
Instalment as for ready possession
Per stages of Built flat letter,money
Legal Deptt. clears construction receipt, ins-
Title urance.doc
Etc.
Employee submits
Builder’s letter on Admn.
Loan & Advance Section progress of work, Deptt.
Forwards money receipt etc. records

CC to Estt. for CA sanctions Loan & Advance Section

Records earmarks fund, issues

Loan & Advance Section Finance disburses For under construction

Earmarks fund & house, last 3 steps are
Issues S.O repeated for each
Instalment

**********

38
 ANNEXURE-D
AGREEMENT BOND

AN AGREEMENT MADE THIS _______________ day of __________ one

thousand nine hundred and ___________ BETWEEN ___________________
______________ son of __________________________ at present serving as
_____________________________ (hereinafter called 'the Borrower', which
expression shall unless excluded by or repugnant to the subject or context include
his heirs, executors, administrators and legal representatives) of the one part and the
Oil and Natural Gas Corporation Ltd. wherein after called `the Corporation'
which expression shall unless excluded by or repugnant to the subject or
context include his successors in office and assigns) of the other part, WHEREAS
the borrower desires to *purchase land and construct a house thereon/*enlarge
living accommodation on his/her house at
________________________________________________ *purchase a ready-built
house/flat at ___________________________ described in the schedule hereto
annexed and WHEREAS the Borrower has under the provision of the Rules
framed by the Oil and Natural Gas Corporation Ltd. to regulate the grant of
advances to Corporation's employees for building, etc., of house (hereinafter
referred to as the "said rules", which expression shall, where the context to
admits, include any amendment thereof or addition for the time being in force)
applied to the Corporation for an advance of Rupees
______________________________________________ to *purchase the said land
construct a house thereon/*enlarge living accommodation in his/ her/ house
/*purchase a ready-

flat house/flat as aforesaid and the Corporation has sanctioned an advance of

Rs.____________ (Rupees _____________________________ to the Borrower,
vide Sanction Order No._______________________________ dated
________________ a copy of which is annexed to these presents for the purpose
aforesaid on the terms and conditions set forth therein, NOW IT IS HEREBY
AGREED by and between the parties hereto as follows :

(1) In consideration of the sum of Rs._________ (insert amount of the first

installment) to be paid by the Corporation after the execution of this
agreement for the purchase of land/house/flat and the sum of
Rs._________ (insert balance amount to be paid) to be paid by the
Corporation to the Borrower as provided in the said rules, the Borrower
hereby agreed with the Corporation or In consideration of the sum of
Rs.__________ to be paid by the Corporation after the execution of
Agreement for purchase of ready-built flat, the Borrower hereby agree
with the Corporation:

(a) To repay to the Corporation the said amount of Rs.__________

(insert full amount sanctioned) with interest calculated in
accordance with the said rules for the time being in force by _______
(number to be filled in) monthly installments of Rs __________ each
& followed by another installment of Rs.________ only and

39
 interest in ___________ installments and rest from gratuity from
his pay commencing from the month of______________Two
Thousand and ____________ or from the month following the
completion of house, whichever is earlier and the Borrower hereby
authorizes the Corporation to make such deduction from his monthly
pay, leave salary and subsistence allowance bills.

*(b) i) Within two months from the date of receipt of the amount of
Rs._____________ (insert amount of installment to be paid) out of
the said sanctioned advance or within such further time as the
Corporation/Head of the Department may allow in this behalf, to
expend the aforesaid amount in the purchase of land and to produce
for inspection of the Corporation the sale deed in respect thereof
failing which the borrower shall refund to the Corporation the entire
amount of the advance received by him together with interest thereon.

*ii) Within three months from the date of the receipt of the aforesaid
advance of Rs.__________ (Rupees
_____________________________________) to expend the
aforesaid amount in the purchase of the said ready-built house/flat
and mortgage it to the Corporation failing which the borrower shall
refund forthwith to the Corporation the entire amount of advance
received by him together with interest thereon unless an
extension of time is granted by the Corporation.
*iii) to complete construction/enlargement of the said house within eighteen
months/twenty four months from the date of drawal of 1st installment strictly in
accordance with the plan and specifications to be approved by the Corporation
and on the basis of which the amount of advance is to be computed and
sanctioned finally or within such extended period as may be laid down by the
Corporation.

(2) If the actual amount paid by the borrower for the purchase of land and
building a house thereon/*enlarging the house/*the purchase of the ready-
built house/flat is less than the amount received under these presents by
the Borrower, to repay the difference to the Corporation forthwith.

(3) To execute a document mortgaging the said house/land alongwith the

house to be built thereon to the Corporation as security for the amount
advanced to the borrower under these presents as also for the interest payable
for the said amount in the form provided by the said rules.

(4) *If the flat is not purchased and the sale deed thereof not produced for
inspection of the Corporation within two months of the date of drawal of the
part of the advance for that purpose, or within such further time as the
Corporation/head of the Department may allow in this behalf/*if the
house/flat is not purchased and mortgaged within three months of the
drawal of the advance or within further time as the Corporation/Head of the
Department may allow in this behalf/if the borrower fails to complete
the construction/enlargement of the said house as hereinbefore agreed, or if
the borrower becomes insolvent or quits the service of the Corporation or

40
 dies, the entire amount advance together with interest accruing thereon
shall immediately becomes due and payable to the Corporation.

(5) The Corporation shall be entitled to recover the balance of the said advance
with interest remaining unpaid at the time of his retirement or death
preceding retirement from the whole or any specified part of the gratuity
that may be sanctioned to him.

(6) Without prejudice to any other right of the Corporation in that behalf, if any,
amount becomes refundable or payable by the borrower to the Corporation,
the Corporation will be entitled to recover the same as arrears of land
revenue.

SCHEDULE
(DESCRIPTION OF PROPERTY)

Flat No. ____________ Address

_________________________________________
______________________________________ and thereabouts bonded as
follows :

North : ______________________
South : ______________________
East : ______________________
West : ______________________

Signed by the said Borrower in the presence of:

(Signature of
the Borrower)
1st witness:
Signature:
Name:
Designation: CPF No.:

2nd witness:
Signature:
Name:
Designation: CPF No.:

Signed by Shri ______________________ in the office of

___________________

Accepted

In the presence of: (For and on behalf of the Oil And Natural Gas
Corporation Ltd.)

1st witness:
Signature: Signature

41
Name: Name and Designation with Seal
Designation: CPF No.:

2nd witness:
Signature:
Name:
Designation: CPF No.:

42
 ANNEXURE-E

SURETY BOND
KNOW ALL MEN BY THESE PRESENTS that WE (1)
Shri/Smt.________________________________________Son/Daughter/Wife of
Shri
___________________________________________resident of
____________________
employed as ______________________in the Oil And Natural Gas Corporate Ltd.
(2) Shri/Smt.______________________________________________
Son/Daughter/Wife of Shri_______________________________ resident of
____________________________ employed as______________ (hereinafter called
‘the Sureties’) are held and firmly bound upto the Oil And Natural Gas Corporation
Ltd. A Company incorporated under Companies Act 1956 having its registered office
at Jeevan Bharati, Tower-II, 124 Cannaught Circus, New Delhi (hereinafter called
“ONGC”) which expression shall unless excluded by or repugnant to the subject or
context include his successors in the office and assigns) in the sum of
Rs.__________/- (Rupees_____________________
_______________ only) with interest as hereinafter specified and all costs between
attorney and client and all charges and expenses that shall or may have been incurred
by or occasioned to ONGC to be paid to ONGC for which payment to be well and
truly made. We hereby bind ourselves, our heirs executors, administrators, and
representatives firmly by these presents.

As witness my hand this____________________day of _______________

Two thousand ___________

WHEREAS Shri/Smt. ___________________________________

Son/Daughter/ Wife of Shri________________________________ Resident
of____________________ at present employed as
______________________________ in the Oil And Natural Gas Corporation Ltd.
(hereinafter called “the Borrower”) (but is due to retire on___________) applied to
ONGC for an advance of Rs.___________________ for the purchase of house/
land/construction of a new house.

AND WHEREAS ONGC sanctioned the payment of Rs._____________

(Rupees _____________________________________only under the provisions
made in this behalf by ONGC to regularize the grant of advance to its employees for
building etc. of house hereinafter referred to as the ‘said rules’.

AND WHEREAS THE Borrower has undertaken to repay the said amount in
____________ installments (________________ installments of
Rs._________________ and ___________________ installments of
Rs.______________________) with interest, as calculated at rates and in the manner
prescribed (Under the Oil And Natural Gas Corporation Ltd’s House Building
Advance Rules) or on so much thereof as shall for the time being remain due and
unpaid calculated at fixed ONGC’s rates in force for ONGC Loans from the day of
advance. AND WHEREAS the Borrower has further undertaken to mortgage the
house built/purchased with the help of the said amount and to observe the provision of

43
ONGC’s HBA Rules. AND WHEREAS in consideration of ONGC having agreed to
grant of the aforesaid advance to the Borrower, the SURETIES have agreed to
execute the above with such conditions as hereunder is written.

NOW THE CONDITIONS OF THE ABOVE written bond are such that if the
said Borrower shall while employed in the said office of ONGC or any other offices
in ONGC duly regularly pay or cause to be paid to ONGC the amount of the aforesaid
advance owing to ONGC by installments with interest as calculated in the aforesaid
manner thereon or on much thereof as shall for the time being remain due and unpaid
calculated at fixed ONGC’s rates in force for ONGC’s loans from the day of advance
until, the said sum of Rs.________/- (Rupees
_________________________________
_____________________only) with interest calculated in the aforesaid manner shall
be duly paid or mortgaged to ONGC the House Built/Purchased referred to above
whichever event happens earlier than this bond shall be void, otherwise the same shall
be and remain in full force and virtue. But so nevertheless that if the Borrower shall
die or become insolvent or at any time cease to be in the service of ONGC or the
amount not recoverable from the pay of the borrower due to any other reasons
whatsoever the whole or so much of the said principal sum of Rs_______________
(Rupees________________
_____________________________only) together with interest as shall then remain
unpaid shall immediately become due and payable to ONGC and be recoverable from
the Sureties in one installments by virtue of this bond. The obligation undertaken by
the Sureties shall not be discharged or in any way of affected by an extension of time
or any other indulgence granted by ONGC to the said Borrower.

Signed and delivered by the said________________________________ at

__________________________on _____________day of_________________200

(Signature of Surety) (Signature of Surety)

In the presence of :-

Signature of 1st witness:

Name:
Designation: CPF No:

Signature of 2nd witness:

Name:
Designation: CPF No:

ACCEPTED
(For and on behalf of the Oil And Natural Gas Corporation Ltd.)

In the presence of:

Signature of 1st witness: Signature

44
Name: Name & Designation with
seal.
Designation: CPF No.

Signature of 2nd witness:

Name:
Designation: CPF No.

DECLARATION
(Surety 1)

1) I have completed more than three years service in ONGC.

2) I have not stood surety to any other employee for such advances/loans as on
this date.

3) My date of superannuating is ___________and I am supposed to be in the

service of the Corporation till the recovery of the advance/loan, for which, I stood
surety for_____________.

(SIGNATURE OF SURETY)
Designation
Office to which attached
CPF No.____________

DECLARATION
(Surety 2)

1) I have completed more than three years service in ONGC.

2) I have not stood surety to any other employee for such advances/loans as on
this date.

3) My date of superannuating is ___________and I am supposed to be in the

service of the Corporation till the recovery of the advance/loan, for which, I
stood surety for_____________.

(SIGNATURE OF SURETY)
Designation
Office to which attached
CPF No.____________
**********

45
 ANNEXURE-F
INDEMNITY BOND

KNOW ALL MEN BY THESE PRESENTS that

I,________________________ son of Shri____________________________ at
present residing at _________________
____________________ (hereinafter referred to as “obligor”) hereby hold and bind
myself, my heirs, executors, administrators and legal representatives to the Oil And
Natural Gas Corporation Ltd., (hereinafter referred to as “the Corporation”) for the
payment to the Corporation of the sum of Rs. __________/- (Rupees
________________
_____________________ only).

SIGNED this ______________ day of__________ two thousand

_____________

WHEREAS the obligor is an employee of Oil And Natural Gas Corporation

Ltd. and applied to the Corporation a loan of Rs.__________ (Rupees
___________________
________only) hereinafter referred to as the “Loan”, for the purpose of building/
construction of a residential building at_____________________________________.

AND WHEREAS the Borrower has agreed to purchase a flat No.__________

to be constructed on a piece or parcel of land at
___________________________________ from ___________________ under a
Agreement of Sale dated _____________________
(hereinafter referred to as “the Indenture”) upon and subject to the restrictions,
stipulations and conditions contained in the said indenture, the said piece of land
(hereinafter referred to as “the Land”) being fully and more particularly described
therein.
OR
AND WHEREAS for the sole and exclusive purpose of building constructing
the said residential house, the obligor has acquired a piece or parcel of land
at____________
___________from ____________________under a Deed of
conveyance/Lease/Lease-sum-sale dated _____________ (hereinafter referred to as
“The Indenture”) upon and subject to the restrictions, stipulations and conditions
contained in the said indenture, the said piece of land (hereinafter referred to as “the
land”) being fully and more particularly described therein.

AND WHEREAS the Corporation has agreed to sanction the said loan to the
obligor in accordance with and subject to the said Rules framed by the Corporation to
regulate the grant of house building advance to the Oil And Natural Gas Corporation
Ltd. employees (hereinafter referred to as “the Rules”), upon the obligor’s agreeing
and undertaking to duly and regularly repay the said loan in ___________ monthly
installments of Rs. __________ each followed by another installment of Rs.
__________
And interest in _________________ installments and to mortgage the said land and
the house to be built/constructed and to furnish surety bonds by the sureties to the
satisfaction of the Corporation in due observance of the said rules.

46
 AND WHEREAS in consideration of the Corporation of the Corporation
having agreed to grant the aforesaid loan and advances to the obligor, the oblige has
agreed to execute the above bond, without prejudice and in addition to the said
mortgage and the said surety bonds and subject to the terms and conditions hereunder
contained.

NOW THIS CONDITION OF THIS BOND is such that if, after the said sum
of Rs._________/- (Rupees _________________________________________ only)
has been lent and advanced to the obligor as hereinbefore, recited, the obligor shall
fully and duty comply with the reservations, restrictions, conditions and stipulations
contained in the said Indenture to the satisfaction of the Corporation and, in the event
the Corporation has reasons to believe that the said reservations, restrictions,
conditions and stipulations contained in the said Indenture have not been or are not
being duly and fully complied with, the obligor shall repay to the Corporation on
demand the said loan together with interest due thereon or so much there as may then
remain outstanding with the rights and power to the Corporation to proceed against
any of the properties of the obligor in any manner and at any time for realization and
recovery of the said loan with interests but without prejudice and in addition to any
other rights and power of the Corporation under the said Rules or the said mortgage or
the said surety bonds or otherwise in law AND the obligor shall in any event
indemnify, keep indemnified and save the Corporation harmless from all liabilities
and all costs and expenses incurred in consequence of any claim and demand of
whatever kind, in respect of the said land or otherwise in relation to or arising out of
the said Indenture THEN the above written bond shall be void, otherwise the same
shall remain in full force and effect.

BUT SO NEVERTHELESS that if the obligor shall die or become insolvent

or at any time cease to be in the service of the Corporation, the whole or so much of
the said loan together with interests as shall then remain unpaid shall forthwith
become due and payable to the Corporation and recoverable in one installment by
virtue of this bond. The obligor shall not he discharged or released from his
obligations in any manner by any indulgence shown/extended to him by the
Corporation for any reason or of any kind.

IN WITNESS WHEREOF the obligor has executed these presents on the

______
___________day of _________ Two Thousand and _______. Executed by Shri
________________________________ obligor herein in the presence of.

1st witness: (Signature of the

Borrower)
Signature: Designation:
Name: Date:
Designation: CPF No.

2nd witness:
Signature:
Name:
Designation: CPF No.

47
Accepted for and on behalf of the Oil And Natural Gas Corporation Ltd.
in the presence of:

1st witness: (Signature of the Officer)

Signature: Name & Designation with
seal:
Name:
Designation: CPF No.

2nd witness:
Signature:
Name:
Designation: CPF No.

48
 ANNEXURE-G

DOCUMENTS TO BE SUBMITTED IN DIFFERENT CASES

A. PURCHASE OF LAND:

Negotiation letter from the seller of the land with approximate cost of the land
stating that land is free from all encumbrances and it will be handed over to
the buyer within two months.

B. CONSTRUCTION OF HOUSE ON PLOT OF LAND:

1. Registered sale deed in original.

2. Permission for construction of house from concerned local
authority/Municipal Corporation.
3. Approved plan from the concerned authority.
4. Title clearance/Non-encumbrance certificate in original containing 12 years up
to date search – issued by Registrar/Sub- Registrar/Government District
Pleader/ ONGC’s Panel Advocate.
5. Valuation Certificate from Registered valuer.
6. Detailed estimate as per CPWD/PWD schedule of rates with different sub
heads such as earthwork, concrete work, reinforcement concrete brickwork,
stonework, woodwork etc.
7. Non-Agricultural permission/ULC.
8. Pay Slip
9. HBA application form

(N.B. Except pay slip and copy of permission of Competent Authority, all
documents are to be submitted in duplicate in all cases).

C. PURCHASE OF A READY BUILT FLAT/UNDER CONSTRUCTION

FLAT FROM PRIVATE BUILDERS:

1. Registered sale deed in original.

2. Permission for construction of house from concerned local authority/
Municipal Corporation.
3. Approved plan.
4. Title clearance/Non-encumbrance certificate in original containing 12 years
upto date search- issued by Registrar/Sub- Registrar/Government District
Pleader/ONGC’s Panel Advocate.
5. Valuation Certificate from Registered Valuer.
6. Non-Agricultural permission/ULC.
7. Allotment letter.
8. NOC from the builder to mortgage the flat to ONGC.
9. Original money receipt against the initial payment made to the builder
10. Registered Architect’s Certificate*.
(*Additional document required in Re-engineered Process)

49
 D. PURCHASE OF FLAT THROUGH CO-OPERATIVE HOUSING
SOCIETIES:

1. Attested copy of the Title deed of the society.

2. Attested copy of the certificate of registration of the Society.
3. Letter from the society indicating the Membership of the individual.
4. Allotment letter of the flat.
5. Attested copy of the Bye-laws of the society.
6. Share certificate in original.
7. Permission for construction of house from concerned local authority.
8. Approved Plan.
9. Title clearance/Non-encumbrance certificate in original containing 12
years.
upto date search- issued by Registrar/Sub-Registrar/Government District
Pleader/ ONGC’s Panel Advocate.
10 Registered Sale deed in original.
11 Valuation certificate from registered valuer.
12. Agricultural permission/ULC.
13. NOC from the society for mortgaging the flat to ONGC.

E. PURCHASE OF FLAT FROM DEVELOPMENT

AUTHORITY/PUBLIC HOUSING AGENCY:

1. Allotment letter cum NOC for mortgaging the flat.

2. Receipt of initial payment made to the authority.
3. Booklet containing the terms and conditions.

- 0 -

50
 ANNEXURE-H
_____________________________________________________________________
From: Shri Designation

To: Incharge, Loan & Advances, (Name of Asset/Basin/Institute/Plant/RO),Oil

and Natural Gas Corporate Limited,------------------.

Sub: Housing loan of Rs………… to Shri…………………………………………

Pursuant to the Agreement dated……………………………..(give dated of
agreement, if any) whereby you have agreed to lend an advance to me a sum of
Rs………………………inter alia, on the terms and conditions of repayment with
interest, costs, charges and expenses as set out in your letter of Sanction
No………………………... dated……………………and the said Agreement,
executed by me in your favour dated………………………. (give date of the
agreement if any) as security for the said loan with interest, I hereby deposit the Title
Deeds (more fully described in the end of this letter) with you with the intention to
create Equitable Mortgage in respect of the property described herein below which is
purchased/constructed by me from the loan assistance given to me by the Oil and
Natural Gas Corporation Limited.

SCHEDULE OF THE PROPERTY WITH BOUNDARIES

2. I am the absolute owner and registered holder of the above mentioned property
and the same is free from any other charge, encumbrances, hypothecation, lien, claim
or demand and I agree not to create any subsequent charge or lien thereon so long as
the loan obtained by me from your and the interest thereon is outstanding.
3. During the continuance of this security and so long as the said loan or any part
thereof or any interest due thereon shall remain unpaid to you by me, it has been
agreed that you will be at liberty to have the said property mortgaged with you as
aforesaid transferred to your name or names or the names of your nominee or
nominees, and all costs of and incidental to such transfer including stamp, transfer fee,
etc. shall be borne and paid by me forthwith on demand and until such payment the
same shall be secured and shall deemed to have been secured by these presents.
4. It was further agreed that in case any default is made by me in payment of the
said loan or interest or costs, charges and expenses or any part thereof as may be
incurred by you for the recovery of the said loan and/or interest, you shall be at liberty
to deduct the amount from my gratuity or to sell and dispose of the said property and
to apply the net proceed of such sale in satisfaction so far as the same shall extend
towards liquidation of the amount due for principal and interest together with all
costs, charges and expenses incurred by you and I agree and undertake to accept your
account of such sale duly signed by you as sufficient proof of the correctness of the
amount realised by you and the costs charges and expenses in connection with such
sale.
5. I shall pay you as agreed all costs, charges and expenses as may be reasonably
incurred by you of and incidental to or in connection with this security as well as for
the protection or defence of your rights as for the protection and security of the said
property and for the payment realisation and recovery of the amount of the said loan,

51
interest, costs, charges and expenses and other money hereby respectively secured and
the same shall be paid on demand by me to you
in…………………………………(mention the place where the loan amount is
refundable) immediately on the same having been so incurred and until such
repayment the same shall be deemed to be an advance made by you to me under and
inter alia secured by these presents.

6. I have also agreed to do and execute in your all acts, matters, deeds,
assurances and things as may be necessary or requisite for effectually carrying out the
provisions of these presents.
Particulars of the title deeds enclosed for deposit.
(give below)

Yours faithfully,

52
 ANNEXURE-I
(Draft of the letter to be given by the Borrowing Employee after the Equitable
Mortgage is created)

_____________________________________________________________________
From: Shri

To: Incharge, Loan & Advances

Ref: Housing loan for Rs. ___________________________________________

Covered under Agreement dated___________________________.

AND
Ref: Equitable Mortgage by deposit of Title Deeds to my property situated
at_________
_____________________________________________________________________
(Give full details of the property alongwith boundaries)
This is to record and confirm that with intent to secure the housing loan of
Rs.___________________ together with interest and other moneys payable by me to
the Oil and Natural Gas Corporation in terms of the Agreement
dated______________ with Shri__________________________________ being the
duly authorised officer of the Oil and Natural Gas Corporation of this
___________day of ___________ the following title deeds and the documents of my
immovable property situated at______________________
_____________________________________________________________________
_____________________________________________________________________
(Give full details of the property with boundaries) whose description is given below:-
(Give details of title deeds)

1.
_____________________________________________________________________
2.
_____________________________________________________________________

Dated: Yours faithfully,

53
 ANNEXURE-J
MEMORANDUM OF ENTRY

Pursuant to the Agreement of Loan dated----------------------------entered into

by Shri-------------------------------------------------------------------------hereinafter
referred to as “The Borrower” with Oil And Natural Gas Corporation Ltd. (hereinafter
referred to as “The ONGC” the Borrower deposited on--------------------------------------
------ (give date when the title deeds were deposited) with Shri ----------------------------
----------------------------- Designation)------------------------- of the Oil And Natural Gas
Corporation Ltd. the following titled deeds and documents relating to property No.----
-------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------
-------------------------------------------. (mention full details of the property alongwith
boundaries)
Detail of Title Deeds deposited
2. At the time of making such deposit, the Borrower stated that the has deposited
the Said Title Deeds with intent to create a security in favour of the ONGC as and by
way of Equitable Mortgage by deposit of Title Deeds in respect of the said property
for securing the due payment by the Borrower to the ONGC of the Housing Loan of
Rs…………….. (Rupees……………………………………) sanctioned by the
ONGC together with interest thereon and all such costs charges and expenses and
other moneys payable by the Borrower to the ONGC under the said.

3. The Borrower further assured and declared to the ONGC that the Title Deeds
so deposited were the only Title Deeds of the said land/house/flat and that he was the
absolute owner thereof and that he had marketable title thereto, free from all other
encumbrances claims and demands and that there was no mortgage, charge, lien,
encumbrance or attachment on the said land/house/flat or any part thereof.

4. Shri------------------------------------------------- Designation-------------------------
of the Oil And Natural Gas Corporation Ltd. accepted from the Borrower the said
deposit or Title Deeds on behalf of the ONGC the purpose aforesaid.

5. The above was read over by Shri-------------------------------------------------------

to the Borrower in the presence of Shri---------------------------------------------------------
Dated this--------------------------- day of ------------------------------------------------ .

(Competent authority of ONGC in this respect)

54
 ANNEXURE-K

OIL AND NATURAL GAS CORPORATION LIMITED

LOAN & ADVANCE SECTION
_____________________________________________________________________
____________
From: Incharge, Loan & Advances, Oil And Natural Gas Corporation Ltd.
To: Shri ……………………………………………………...
Designation…………………………
(Name of the employee)
Department………………………………
ONGC,
Subject: MORTGAGE OF HOUSEING PROPERTY PURCHASED FROM
HBA BY
SHRI……………………………………………………………………
………………..
…………………………………………………………………………
………………...

We confirm having received the title deeds and the covering letter
detailed below:-

Sl. No. Details of title deed Covering letter dated

1. Original sale deed dated…………………….

2. N.E.C. dated…………………….

In view of the deposit and delivery of the above title deed with the
intent to create security in favour of the ONGC by creation of Equitable Mortgage,
the undersigned has duly recorded he fact about receipt of the above title for the
purpose aforesaid.

Dated:……………….. Incharge,
Loan & Advance.

55
 ANNEXURE-L
DRAFT DECLARATION
Re: In the matter to Housing Loan of Rs __________________lent and advanced
and/or to be lent and advanced by the ONGC in the matter of Declaration of
Equitable Mortgage by deposit of the Title Deeds of the immovable properties
situated at ______________________________
crEated on the __________________________________day of _________________.

1. I, _____________________________________ son of __________________

aged_____________________ at present residing at _________________________
do solemnly affirm and state and declare as follows:

2. I am an employee of the Oil And Natural Gas Corporation (hereinafter called

ONGC) and I am working at present as____________________ in the office
____________________________.

3. With a view to secure the housing loan of Rs._________________ interest and

other moneys lent and advanced and/or to be lent and advanced by ONGC to me, I
have created as and by way of security of an Equitable Mortgage by deposit of Title
Deeds, a mortgage in favour of ONGC on the________________ day
of____________________.

*3.a I confirm that I have created a mortgage vide registered mortgage deed
dated_______.
in favour of ONGC for having secured Rs. ____________________ on
account of house building advance already drawn by me.

4. I confirm and declare that save and except the said Equitable aforesaid
mortgage/mortgages in favour of ONGC, my property described in the Schedule is
free from all other encumbrances, claims and demands and I am the full and absolute
owner thereof and no other person has any right, title, interest, claim or demand
whatsoever thereof.

SCHEDULE OF PROPERTY
Solemnly declared at
_________________________________________________
by the within named
_________________________________________________
this ___________________________day of__________________ .
Before me

56
 ANNEXURE-M

BEFORE THE OIL AND NATURAL GAS CORPORATION LIMITED

In the matter of second HBA of Rs.____________

(Rupees___________________________
______________________) only to be lent and advanced by the ONGC in the matter
of property already mortgage with the Corporation for first HBA advance by way of
equitable mortgage which was created on (give the date of Annexure -----) by the
deposit of the Title Deeds of the Immovable properties situated at
__________________________________
bounded and butted as under:-

A. East :
B. West :
C. North :
D. South :

I, _______________________________aged________ years at present

residing___________
___________________________________ do solemnly affirm and state and declare
as follow:

1. I am an employee of the Oil And Natural Gas Corporation and I am working

at present as______________ in the Office/Asset/Basin/Institute/RO of
_________________________.

2. With a view of securing the housing loan of Rs._______________

(Rupees_____________________________________) only, interest and other money
lent and advanced/or to be lent and advanced by the ONGC to me I have created by
way of Security an Equitable Mortgage by deposit of Tittle Deeds a mortgage in
favour of ONGC on______________.

3. The ONGC has further agreed to advance Second HBA amounting of

Rs_______________
(Rupees _________________________________________________) only vide
sanction order No._____________________________________.

4. That I have agreed that my aforesaid mortgaged property bearing Khasra

No./Municipal No.____________________ situated at
____________________________bounded and butted as under:-

A. East :
B. West :
C. North :
D. South :

may further be charged for advance of Second HBA of Rs. ____________

57
(Rupees_________________________________________) only sanctioned to me by
the ONGC with interest and I have declared that all the covenants, power and
provisions contained in the previous mortgage dated (give date of Annexure----- of
the previous mortgage should operate and take effect in like manner for securing
payment of the sum of Rs.____________ advanced to me as Second HBA as if the
same had formed part of the money secured by the said equitable mortgage by deposit
of Tittle Deeds, created on (give date of Annexure------ of the previous mortgage.

5. I confirm and declare that save the aforesaid Mortgage in favour of ONGC my
property described above is free from all other encumbrances, claims and demands
and I am the full and absolute owner thereof and no other persons has any right, title,
interest, claim or demands what-so- ever thereof.

Solemnly declared to be true by the within

named___________________________________
on this _______________________________at Dehradun.

Signature of Borrower

WITNESSES:
Signature:
Name of Borrower
Designation:
1. _______________________ ID/No.
_______________________ Office:
_______________________
2. _______________________
_______________________
_______________________

ACCEPTED FOR AND ON BEHALF OF OIL AND NATURAL GAS

CORPORATION LTD.

58
 ANNEXURE-N
LETTER OF CONSENT TO BE GIVEN BY BANK/ FINANCIAL
INSTITUTION

To
( to be addressed to the concerned HBA sanctioning Authority in ONGC)
…………………………….
…………………………….
…………………………….

Subject: Grant of additional housing loan on creation of second charge.

Sir
Mr/Mrs/Ms…………………………………………………employed in
ONGC as …………………………………approached our Bank/Institution for grant
of additional housing loan amounting to Rs………………………..on creation of
second charge on the property which is to be/has been constructed /purchased by him
with the help of ONGC HBA.

We hereby give our consent for grant of additional housing loan of

Rs………………to the aforesaid employee.

3. We agree that:-

i) ONGC will have the first charge on the property and …………..will
have the second charge.
ii) The title deed of the property shall remain in custody of ONGC.
iii) ONGC shall not be responsible to deduct EMI from the salary of the
employees
iv) The interest and service/processing charges payable on additional
housing loan shall be borne by the loanee employee and ONGC will
have no liability on this account.
v) The original title deed of the property kept with ONGC shall not be
released to the employee until No Objection/Clearance Certificate is
issued by……………………….
vi) ONGC shall keep informed………………………as and when services
of above loanee employee are terminated/ceased due to any reason
whatsoever.

Dated:………………..
Signature of Head/
Authorized representation of
the financial institution/Bank

59
 ANNEXURE- O

DRAFT OF LETTER TO BE WRITTEN TO THE HBA SANCTIONING

AUTHORITY BY THE LOANEE EMPLOYEE

To

……………………….
……………………….
……………………….

Subject: Permission for Additional Housing Loan from Bank/ recognized

financial .
institution on creation of second charge.

Sir
I have been sanctioned HBA amounting to Rs………………by ONGC vide
Sanction Order No…………………………dated………………for construction/
purchase of house. I have created Equitable Mortgage by delivery and deposit of Title
Deeds of house constructed/ purchased with the help of ONGC HBA. The total
approved estimated cost of the house is Rs………………….

2. I have approached……………………………….. ( name of financial

institution) for an additional housing loan of Rs ……………………………….by
creation of second charge on the said property and……………...have given its
consent for the same ( as per Annexure I).

3. I therefore request you to kindly grant me permission to avail additional

housing loan of Rs. ……………………… ( Rs
..……………………………………………) from …………………………

4. I hereby convey my consent to agree and undertake to abide by the following

conditions in this regard :-

I. The said documents to title deeds shall be held and retained by the
ONGC
on its behalf as first mortgagee as well as on behalf of
……………………………
(name of financial institution) as second mortgagee.

II. The original documents of property shall be in safe custody of ONGC

and will not be released till such time NOC from second mortgagee (i.e.
financial institution) for release of such documents is received.

III. There will be no contractual obligation between ONGC and second

mortgagee. The repayment of EMIs and other money will be done directly by
me to the second mortgagee.

Contd……

60
 .
-2-

IV. The interest and processing/service charges etc. payable on additional

housing loan, shall be borne by me and ONGC will have no liability on this
account.

5. I now request you to please grant me permission to raise additional housing

loan amounting to Rs…………………………. on second charge in favour of
…………………………………….
( name of financial institution ).

6. A duly filled in application form along with enclosures for additional housing
loan to be forwarded to ………………………….. (name of financial institution) is
submitted herewith for information and further action.

Yours faithfully

( Name of the employee )

Id No…………………..
Complete
Address………………..

Office……………………………..

Residence…………………………

61
 ANNEXURE-P
DRAFT OF LETTER/NOC TO BE GIVEN BY ONGC TO THE BANK/
FINANCIAL INSTITUTION

To
………………………………..
( name & address of the Bank/ Financial Institution)

Subject: Permission for Additional Housing Loan on creation of second charge

Sir,
Enclosed please find herewith an application from Mr./Mrs.
…………………… for additional housing loan of Rs…………………… on creation
of second charge for further necessary action Mr/Mrs
……………………………………. is employed in ONGC as……………………. and
bears Identification No……………………

2. He/She has been sanctioned House Building Advance of Rs…………… from

ONGC for construction/purchase of house/ ready built house and following
documents have been deposited by him/her for the purpose of creating equitable
mortgage in favour of ONGC :-
i) ……………………………..
ii) ……………………………..
iii) ……………………………..
iv) ……………………………..
3. The repayment of EMIs and other money will be done directly by the
individual to your Bank/ Institution. There will be no contractual obligation between
ONGC and ………………………
( name of financial institution). No guarantee or security shall be provided by ONGC.
However in the event of cessation of the employment of above named employee from
ONGC due to any reason, we will keep you informed of the same.

4. All original documents deposited by Mr/Mrs………………………with

ONGC for creating equitable mortgage on the property constructed/ purchased
through ONGC HBA shall be kept in safe custody with ONGC and will not be
released to the loanee employee till such time NOC is received from your end for
release of such documents.

Yours faithfully,
Encl: as above
Name of Issuing Authority…………………..
Designation…………………………
Address……………………………..
Tel No …………………………….

62