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NTPC Limited

Corporate Human Resources Division

HR Policy Manual
House Building Advance Rules

Application for grant of advance shall be submitted in the prescribed form


through the workflow in

The following documents should accompany the application form:







Issue No: II Rev.No.:0
Issue Date: 26.09.2011
Updated as on: 31.01.2012
Page: 13 of 108

Documents of Title / Conveyance Deed of the land issued to the builder by the agency
Agreement to sell or the Sale Deed, in original executed between the executive and the
Copy of allotment-cum-demand letter issued by the builder to the executive.
12 years non-encumbrance certificate / search report from the Sub-Registrar.
Approved Building Plan by the Govt. Agency.
Approximate cost of construction including payment plan.
Agreement to execute tripartite agreement with corporation at the time of possession of the
flat (undertaking by builder).
Valuation Certificate from authorized Valuer.
Original money receipt against initial payment made to the builder.
Approval for Number of floors to be constructed.
Permission under Urban land (Ceiling & Regulations) Act in favour of builder.
In case land owner is other than builder, a copy of Development Agreement of the builder
with the land owner.
Registered Architect's Certificate.
Irrevocable Power of Attorney by the land owner in favour of builder if flats are being
constructed / developed by the builder on the land owned by the land owner.
Copy of the floor plan approved by Competent Authority.
The profile and chain of ownership document in respect of the land to be obtained by the
executive from the builder and subsequent verification by the NTPC Legal Cell.
The land on which the private builder is proposing to construct flat should be free from all

The profile of the Private Builder / Promoter shall be checked on the following points:



Number of projects completed by the builder(Min.3 projects executed).

Number of projects in hand of the builder(Min. 2 projects in hand).
The source of funding / financing for the projects executed and to be
executed by the concerned private builder.
The status of registration of the private builder - The private builder should be registered
under the Companies Act, 1956 or firm of builders registered with Registrar of Firms under
the Indian Partnership Act.
The private builder should comply with the provisions of the Urban Land (Ceiling and
Regulation ) Act, 1976. In case of Special Purpose Companies (SPC) of Private Builders / Promoters / Limited Companies
we may grant HBA by considering the profile of the lead partner i.e. the company which has the
maximum stake in the project. In case of equal partnership we may consider the completed
projects of any one partner towards fulfillment of terms and conditions for grant of HBA for
purchasing flats from Private Builders / Promoters / Limited Companies.

On receipt of application together with aforesaid documents, the same will be scrutinized and
processed by concerned HR-EB Group with reference to the conditions of eligibility and other
requirements under the existing Rules for obtaining sanction of Competent Authority.

NTPC Limited
Corporate Human Resources Division
HR Policy Manual
House Building Advance Rules



Issue No: II Rev.No.:0
Issue Date: 26.09.2011
Updated as on: 31.01.2012
Page: 14 of 108

The Competent Authority may constitute a Committee consisting of representatives from HR, Legal,
Finance & Civil to visit the site of the private builder from whom the flat is going to be purchased.
The Committee shall satisfy themselves regarding the extent of construction done by the builder,
may also check the profile of the builder and ensure that title deeds, other documents are in order.
The Competent Authority may accord sanction based on the recommendations of the Committee
and fulfillment of all terms and conditions for grant of HBA in these cases.

In cases where the first charge of the property (flat) to be purchased from a Private Builder /
Promoter / Limited Company lies with Noida/ any other Govt. Authority, a Tripartite Agreement may
be executed between the employee, private builder and NTPC. A copy of the Tripartite Agreement
is placed at Annexure-S.

In addition, in all cases of Grant of HBA from Private Builder / Promoter / Limited Company a
personal bond as placed at Annexure-T may be executed by the employee applying for Grant of
HBA from Private Builder/ Promoter / Limited Company.
The Tripartite Agreement and Personal Bond may be executed after sanction of HBA but before
disbursement of Ist instalment.

7.8.10 In case of purchase of house from registered private builder / promoters / limited company, if the
executive wants to withdraw from the scheme for any reason whatsoever, the money advanced by
the Company shall be refunded forthwith to the company by the agency concerned, for which a
tripartite agreement shall be entered into.
7.8.11 In case the agency concerned deducts any part or the whole of the amount deposited with them
due to non-compliance by the executive with any of their requirements or for any other reasons, the
same will be on the individual executive account and the Company will not undertake any liability
for the same.
7.8.12 The executive shall be required to execute equitable mortgage by deposit of title deeds of the
house /flat purchased by drawing HBA from NTPC, in favour of NTPC.

7.8.13 While applying for subsequent instalments of advance, the executive concerned shall furnish a
demand letter from the builder based on the construction schedule of the housing project. The
amount of advance shall be disbursed in suitable instalments as per demands raised by the Private
Builder from time to time.

7.8.14 The purchase from the private builder has to be completed within 36 months of the date on which
the first instalment of advance is paid to the executive concerned.
7.8.15 The recovery of advance granted for purchase of flat from registered private builder / promoter /
Limited Company shall commence from the pay of the month following that in which possession of
house is taken by executive or immediately on expiry of 36 months from the date of release of 1st
instalment, whichever is earlier.

7.8.16 All documents pertaining to cases of Grant of HBA from private builder / promoter / company shall
be vetted by NTPC legal department.