Employees Provident Fund Scheme
Nominations, Payments and Withdrawals From The Fund
Section 68-B: Withdrawal from the fund for the purchase of a dwelling house/flat or for the construction of a dwelling house
Withdrawal from the fund for the purchase of a dwelling house/flat or for the construction of a dwelling house including the acquisition of a suitable site for the purpose.-
(1) The Commissioner, or where so authorised by the Commissioner,any officer subordinate to him may on an application from a member in such form as may be prescribed and subject to the conditions prescribed in this paragraph sanction from the amount standing to the credit of the member in the Fund, a withdrawal-
(a) for purchasing a dwelling house/flat, including a flat in a building owned jointly with others (outright or on hire purchase basis), or for constructing a dwelling house including the acquisition of a suitable site for the purpose from the Central Government, the State Government, a cooperative society, an institution, a trust , a local body or a Housing Finance Corporation (hereinafter referred to as the agency/agencies);or,
(b) for purchasing a dwelling site for the purpose of construction of dwelling house or a ready-built dwelling house/flat from any individual;
(bb)for purchasing a dwelling house/flat on ownership basis from a promoter governed by the provisions of any Flats or Apartments Ownership Act or by any other analogous or similar law of the Central Government or the State Government as may be in force in any state or area for the time being and who intends to construct or constructs a dwelling house or block of flats and the member is required to pay to the said promoter in advance for financing the said construction of the house/flat :
Provided that the member has entered into an agreement with the promoter as may be required under the Flats or Apartment Ownership Act or any other analogous or similar law of the Central Government or State Government which may be in force in any State or any area and the said agreement is registered under the Indian Registration Act, 1908;
(e) for the construction of a dwelling house on a site owned by the member or the spouse of the member or jointly by the member and the spouse or for completing/continuing the construction of a dwelling house already commenced by the member or the spouse, on such site or for purchase of a house/flat in the joint name of the member and the spouse under clauses (a) and (b) above.
Explanation 1.- In this paragraph, the expression, 'cooperative society ' means a society registered or deemed to be registered under the Cooperative Societies Act, 1912 (2 of 1912) or under any other law for the time being in force in the State relating to cooperative societies.
Explanation 2.- Omitted.
(2)(a) For the purpose of purchase of a site for construction of a house thereon, the amount of withdrawal shall not exceed the member's basic wages and dearness allowance for twenty-four months or the member's own share of contributions, together with the employer's share of contribution, with interest thereon or the actual cost towards the acquisition of the dwelling site, which ever is the least.
(b) For the purpose of acquisition of a ready-built house/flat or for construction of a house/flat, the withdrawal shall not exceed the member's basic wages and dearness allowance for thirty-six months or the member's own share of contributions, together with the employer's share of contributions, with interest thereon , or the total cost of construction, whichever is the least.
(3)(a)No withdrawal under this paragraph shall be granted unless-
(i) the member has completed five years' membership of the Fund;
(ii) the member's own share of contributions with interest thereon in the amount standing to his credit in the fund is not less than one thousand rupees;
(iii) a declaration from the member that the dwelling site or the dwelling house/flat or the house under construction is free from encumbrances and the same is under title of the member and/or the spouse:
Provided that where a dwelling site or a dwelling house/flat is mortgaged to any of the agencies referred to in clause (a) of sub-paragraph (1), solely for having obtained funds for the purchase of a dwelling house/flat or for the construction of a dwelling house including the requisition of a suitable site for the purpose, such a dwelling site or a dwelling house /flat as may be, shall not be deemed to be an encumbered property :
Provided further that a land acquired on a perpetual lease or on lease for a period of not less than 30 years for constructing a dwelling house/flat, or a house/flat built on such a leased land, shall also not be deemed to be an encumbered property :
Provided also that where the site of the dwelling house/flat is held in the name of any agency, referred to in clause (a) of sub-paragraph (1) and the allottee is precluded from transferring or otherwise disposing of the house/flat, without the prior approval of such agency, the mere fact that the allottee dose not have absolute right of ownership of the house/flat and the site is held in the name of the agency, shall not be a bar to the giving of withdrawal under clause (a) of sub-paragraph (1), if the other conditions mentioned in this paragraph are satisfied.
(b) No withdrawal shall be granted for purchasing a share in a joint property or for constructing a house on a site owned jointly except on a site owned jointly with the spouse.
(4)subject to the limitation prescribed in sub-paragraph (2)-
(a) where the withdrawal is for the purchase of a dwelling house/ flat or a dwelling site from an agency referred to in clause (a) of sub-paragraph (1), the payment of withdrawal shall not be made to the member but shall be made direct to the agency in one or more instruments as may be authorised by the member;
(b) where the withdrawal is for the construction of a dwelling house, it may be sanctioned in such number of installments as the Commissioner or where so authorised by the Commissioner, any officer subordinate to him, thinks fit;
(d) where the withdrawal is for purchasing a dwelling house/flat on ownership basis from a promoter as referred to in clause (bb) of sub-paragraph (1), the payment of withdrawal shall be made to the member in one or more installments as may be required to be paid by the said promoter and as authorised by the member .
Explanation.-'Promoter' includes a person who constructs or causes to be constructed a block or building of flats or apartments for the purpose of selling some or all of them to other persons or to a company, Cooperative Society or other association of persons and his assignees and where the person who builds and the person who sells are different persons the term 'Promoter' includes both.
(5) Where a withdrawal is sanctioned for the construction of a dwelling house,the construction shall commence within six months of the withdrawal of the first installment and shall be completed within twelve months of the withdrawal of the final instalments. Where the withdrawal is sanctioned for the purchase of a dwelling house/flat or for the acquisition of a dwelling site, the purchase or acquisition, as the case may be, shall be completed within six months of the withdrawal of the amount :
Provided that this provision shall not be applicable in case of purchase of a dwelling house/flat on hire-purchase basis and in cases where a dwelling site is to be acquired or houses are to be constructed by a cooperative society on behalf of its members with a view of their allotment to the members.
(6) Except in the cases specified in sub-paragraph (7) and 7-A, no further withdrawal shall be admissible to a member