CONVEYANCE ADVANCE RULES
2. Members
of the Staff eligible for the Advance
8. Insurance
of the Conveyance
Advance may be granted to the
employees of the Corporation for the
purchase of Motor Cars, Motor Cycles, Scooters or Bicycles (for new vehicles
only).
Only permanent and full time
employees of the Corporation who have already put in not less than 5 years
continuous service will be eligible for an advance for the purpose of a
conveyance. In case the number of applications are higher compared to the
budget allocation, preference will be
given to the employees based on length of services
(a)
i.
Advance for the purchase of Motor cars without extra fittings shall not exceed 75% of the basic
price of the car as per invoice value subject to a maximum of Rs.1.65 lacs.
Only officers who are drawing a basic pay of Rs.2,650/- and above are eligible
for Motor car.
ii. Advance for the purchase of two wheelers without extra fittings shall not exceed 75% of the basic price of the invoice value subject to a maximum of Rs.30,000/-. Employees who have already put in a minimum of 5 years continuous service will be eligible for Motor Cycle/Scooter Advance.
iii.
Advance for the purchase of bicycle shall not
exceed Rs.1,000/- or the actual
cost of the cycle whichever is less.
iv.
Special
pay and Dearness pay, if any will also
be treated as pay for fixing the eligibility of the employee for a conveyance
advance. The amount of advance can be
based on the officiating or temporary pay when the employee is acting in an
appointment or in a grade from which he is not likely to revert till the entire
advance with interest is repaid.
(b)
If
the actual price paid for the conveyance is less than the advance taken,
the balance should be refunded forthwith.
(c) An employee who has taken an advance will not be entitled to a second advance before the previous advance is fully repaid.
(d)
Employee who purchase Cycle availing loan
from the Company will be eligible
to avail a second loan for purchasing Scooter/Bike.
Advance will bear interest 10% per
annum. The interest will be calculated
and charged on the balance outstanding on the last day of each month, i.e., the
balance outstanding after adjusting amounts previously recovered.
Applications for conveyance
advance shall be submitted to the Managing Director in From No.CA-1. The Managing Director may, after
ascertaining that all the conditions of these rules are satisfied, sanction the
application, if he considers that the employee requires the conveyance. Sanctions shall be issued subject to
availability of budget allotment.
Subject to the provisions of rule
2, recovery will be effected in the following manner:
(1)
The
principal will be recovered in equal monthly installments by compulsory
deductions from the employees’ salary beginning from the month next after that
in which the advance was drawn. An
employee may repay two or more installments at the same time. The number of installments will be suitably
fixed taking into account the total period that the employee has to serve under
the Corporation after receiving the advance; provided that the maximum number
of monthly installments in which the principal of the advance of each kind is
to be repaid should not exceed.
(a) Advance for purchase of Motor Car - 96 installments
(b)
Advance for purchase of Motor cycle
-72 installments
(c)
Advance for purchase of Cycle
-20 installments
(i)
The
recovery of interest should begin from the month next after that in which
repayment of the principal is completed.
The interest should be calculated on the balance outstanding on the last
date of each month. If the total amount of interest to be
charged does not appreciably exceed the amount fixed for the equal monthly installments
for recovery of the principal, it should be recovered in a single installment:
otherwise it should be recovered in installments not exceeding the amount
of each principal installment.
(ii)
The
amount of the monthly installments to be recovered on account of the advance
should not be changed by reason of the borrowing employee going on any kind of
leave, provided that when the employee is not eligible for any leave allowance,
the repayment of installments may be postponed suitably.
(a)
The
advance sanctioned will be paid only after the Managing Director is satisfied
that prior arrangements have been made for the purchase of the conveyance and
whenever feasible the purchase price will be disbursed direct to the supplier
or seller by the Corporation. The advance
should be availed of within a period
not exceeding two months of the receipt of communication of sanction of the
advance unless otherwise extended by the Managing Director. If the advance is not drawn within the
stipulated period, the sanction will lapse. Within one week of the receipt of the
advance, the employee should satisfy the Managing Director as to the proper utilization
of the advance by producing the Invoice, Receipts etc., obtained for payment of
purchase price of the Vehicle, the Registration Certificate and such other
papers as may be specified by the Corporation.
In case the advance is not actually utilised for any reason within one
week of its actual receipt, it should be refunded to the Corporation at the end
of the said period with interest at 10% per annum for the period.
(b)
The
Vehicle purchased with an advance from the Corporation shall not be sold,
hypothecated or otherwise alienated nor its possession transferred to others
without the prior written sanction of the Managing Director before completing
the repayment of the advance with interest. In the case of sale, the sale
proceeds should be applied towards satisfaction of the outstanding balance due
to the Corporation. If however the
conveyance is sold in order to purchase another conveyance, the Managing
Director may permit him to apply the sale proceeds towards such purchase
subject to the following conditions:
(i)
If
the amount of advance outstanding exceeds the price paid for the new Vehicle,
the excess should be repaid to the Corporation immediately.
(ii)
The
employee should continue to repay the amount outstanding in monthly instalments
at rates already fixed.
(iii)
The
new Vehicle should be hypothecated to the Corporation and duly insured as
required by these rules, except in the case of Bicycles.
The conveyance purchased should be
duly insured in the joint names of the Corporation and the employee receiving
the advance within a period of 15 days of its purchase against full loss by
fire, theft or accident and the policy should be handed over to the
Corporation. The insurance shall be
kept renewed from time to time and the renewal papers produced before the
Corporation for perusal. It shall be
open to the Corporation to effect renewal at its expense from the employee’s
salary in the event of failure on his part to effect renewal promptly. This rule shall not apply to Bicycles.
The employee receiving sanction
for advance shall, within 15 days execute in agreement in Form No.CA-2 agreeing
to the terms and conditions relating to the advance. He shall hypothecate the vehicle within a period of one month of
its purchase in Form No.CA-3. The
employee shall bear all charges and expenses for the agreement and the
hypothecation bond to be executed in favour of the Corporation in connection
with the advance received by him. No
Hypothecation bond need be taken in the case of Bicycles.
(a)
He shall be released from the obligations
under the agreement and the hypothecation bond only on payment of the entire
advance with interest and other expenses that the Corporation might have
incurred on insurance etc. of the conveyance.
(b)
In
the event of the employee leaving the service of the Corporation before the
full advance, interest and other expenses are recovered, he should repay the
entire balance due in a lump and for this purpose the Corporation will have the
right to adjust all amounts due to him by way of salary, provident fund etc.
towards the dues and also to dispose of the vehicle hypothecated to the Corporation
for the recovery of whatever balance is to be recovered.
The conveyance purchased with the
advance should be available for inspection by the Managing Director or other
officers of the Corporation autherised by him whenever required and the
employee receiving the advance will be responsible for its proper up keep,
maintenance and repairs.
The employee receiving the advance shall be responsible
for the timely payment of taxes and other dues to Government and shall surrender
to the Corporation periodically the receipts or other papers evidencing payment
of these dues. In the event of failure
to do so, it shall be open to the Corporation to remit such dues on behalf of
the employee and recover the same from his salary.
Breach of any of these
terms and conditions will be deemed to be sufficient reason to justify recall
of the advance given and for recovery of the entire balance amounts due from
the employee on account of the advance by the sale of the vehicle and also by
adjustments from amounts, if any, due to the employee from the corporation.
The
Board of Directors of the Corporation reserves the right to modify these rules
at any time but the modifications
effected will not have retrospective effect.
1. OFFICE ORDER No. 05/73 dated 12.09.1973
2. -do- 04/90 “ 02.07.1990
3. -do- 08/90 “
27.11.1990
4.
Notice No.AD1/28 “ 27.11.1990
5.
OFFICE ORDER No. 02/93
“ 10.03.1993
6. -do- 01/97 “ 04.03.1997
7. -do- 01/98 “ 11.02.1998
8. -do- 02/98 “ 21.10.1998
AD1/28
15.07.2005
Sub:- Conveyance advance for the
financial Year 2005-2006 –reg.
1.
Applications
are invited in the prescribed form for the grant of conveyance advance from the
eligible employees of this Corporation including in all the four Units of the
Company for the financial year 2005-2006.
Those who wish to avail of this advance are requested to submit their
application to the H.R.M. Department of respective Units on or before 03.08.2005. The prescribed application blanks can be had
from H.R.M. Department of respective Units on request.
2.
Permanent
employees of the Corporation who have already put in not less than five years
of continuous service will be eligible for the above advance. No employee will be eligible for the advance
more than once during the entire period of his/her service.
3.
Application
for the above advance will be considered on the basis of the following
criteria:
(i)
Budget
Allotment and availability of fund.
(ii)
Seniority
– cum – necessity.
(iii)
Availability
of sufficient amount for recovery from the wages/salary of employees after
ensuring a take home wages/salary of 25% as provided under law.
4.
Advance
for the purchase of two-wheelers without extra fittings should not exceed 75%
of the basic price of the vehicle as per invoice value subject to a maximum of
Rs.27,000/- (Rupees twenty seven thousand only)
5.
Advance
for the purchase of Motor Cars without extra fittings should not exceed 75% if
the basic price of the Car as per the invoice value subject to a maximum of Rs.1.65
lacs. Only Grade-I Officers are
eligible for Motor Car advance.
6. Employees who have purchased bicycle availing loan from the Company will
be eligible to avail a second loan for purchasing Scooter/Bike.