Employees Provident Fund Scheme

Nominations, Payments and Withdrawals From The Fund


Section 68-BC: Withdrawal financing from the Fund for the purchase of a dwelling house/flat or the construction of a dwelling house

(1) Notwithstanding anything contained in Paragraph 68B or 68BB, where a member desires to purchase a dwelling house/flat, including a flat in a building owned jointly with others (out­right or on hire-purchase basis), or for construction of a dwelling house including the acquisition of a suitable site for the purpose, from the Central Government, a State Government, or a Housing Agency under a Housing Scheme as notified by the Cen­tral Provident Fund Commissioner from time to time, may apply in such form and in such manner, as may be prescribed by the Commissioner, for withdrawal from the amount standing to the credit of the member in the Fund, and the Commissioner, or where so authorized by the Commissioner, any officer subordinate to him, on receipt of such application may sanction such amount not exceeding the members own share of contributions with interest thereon (and the employers share of contributions with interest thereon to his credit) or the cost of the acquisition of the proposed property whichever is less by debiting to the members account :

Provided that no withdrawal under this paragraph shall be granted unless—

(i) the member has completed five years membership of the Fund; and

(ii) the share of contributions with interest thereon in the amount standing to the credit in the Fund of the member/or together with the spouse who is also a member, is not less than twenty thousand rupees :

Provided further that the Commissioner may, on sufficient grounds being shown through an application from a member in this regard, reduce the period as stipulated in (i) above to three years for withdrawal from the amount standing to the credit of the member in the Fund, for the repayment, wholly or partly, of any outstanding principal and/or interest of a loan obtained in the name of the member or spouse of the member or jointly by the member and spouse from any Government or a Housing Agency under Housing Scheme so notified, solely for the purposes specified in this proviso and the Commissioner, or where so authorized by the Commissioner, any officer subordinate to him, on receipt of such application may sanction such amount not exceeding the member’s own share of contributions with interest thereon along with the employers share of contributions with interest thereon, or the amount requested by the member or the outstanding balance in the loan account, whichever is less, by debiting to the members account :

Provided also that, where a member desires that monthly instalments for the repayment, wholly or partly, of any outstanding principal and/or interest of a loan obtained in the name of the member or spouse of the member or jointly by the member and spouse, solely for the purposes specified in this proviso, may be paid from the amount standing to the credit of the member in the Fund, he may apply in such form and in such manner, as may be prescribed by the Commissioner and on receipt of such an application, the Commissioner or where so authorized by the Commissioner, any other officer subordinate to him may make payment by the 15th of each month on behalf of the member to the Government or a Housing Agency concerned, as the case may be :

Provided also that when the membership of the member ceases to exist, or, where the amount standing in the credit of the member’s account is not sufficient to pay the monthly instalment for any month, the Commissioner or where so authorized by the Commissioner any other officer subordinate to him shall not be liable to pay the monthly instalment or any late fee and/or interest, if any monthly instalment could not be remitted in time.

(2) The withdrawal or finance for the purchase of a dwelling house/flat or a dwelling site or construction of a dwelling house, under sub-paragraph (1) and proviso thereunder, shall not be made to the member in any event and shall be made direct to the Government or Housing Agency concerned only, as the case may be, in one or more instalments, as may be authorized by the member.

(3) No further withdrawal under this sub-paragraph (1) above shall be admissible to a member unless he has discharged his liability towards the existing loan.

(4)(a) If the withdrawal or finance granted under this paragraph exceeds the amount actually spent for the purpose for which it was sanctioned, the excess amount shall be refunded by the member to the Fund in one lump sum within thirty days of the finalisation of the purchase, or the completion of the construction of, or necessary additions or alterations to a dwelling house/flat, as the case may be.

(b) The amount so refunded under sub-paragraph (a) shall be credited to the employer’s share of contributions in the members account in the Fund to the extent of withdrawal granted out of the said share and the balance, if any, shall be credited to the member’s share of contributions in his account.

(c) In the event of the member not having been allotted a dwelling site/dwelling house/flat or in the event of the cancellation of an allotment made to the member by the Government or the Housing Agency, referred to in sub-paragraph (1) above, then the Government or the said Housing Agency, to which the amount so withdrawn has been given shall be liable to refund the amount to the Fund in one lump sum in such manner as may be specified by the Commissioner, within a period not exceeding fifteen days from the date of such cancellation or non-allotment.

(d) The amount so refunded under clause (c) shall be credited to the employer’s share of contributions in the members account in the Fund, to the extent of withdrawal granted out of the said share, and the balance, if any, shall be credited to members own share of contributions in his account.

(5) The Commissioner or where so authorized by the Commissioner any officer subordinate to him has reason to believe that the amount remitted to the Housing Agency under the Housing Scheme under this paragraph has been misutilized and will not be refund­ed, he shall forthwith take steps to recover the amount due with interest including penal interest thereon at the rate to be notified by the Commissioner from time to time and the amount so recovered shall be credited to member’s account in the Fund to the extent of withdrawal granted out of the said account and interest thereon and the remaining amount, if any shall be cred­ited to Administrative Account.

(6) The Commissioner may notify such Housing Agency be debarred from participation in the Housing Scheme.