Employees' State Insurance Corporation (General Provident Fund) Rules, 1995
18. Conditions for withdrawal
(1) Any sum withdrawn by a subscriber at any one time for one or more of the purposes, specified in rule 17 from the amount standing to his credit in the fund shall not ordinarily exceed one half of such amount or six months pay, whichever is less. The sanctioning authority may, however, sanction the withdrawal of an amount in excess of this limit up to 3/4th of the balance at his credit in the fund having regard to (i) the object for which the withdrawal is being made, (ii) the status of the subscriber, and (iii) the amount to this credit in the Fund:
PROVIDED that in no case the maximum amount of withdrawal for purposes specified in sub-rule (2) of rule 17 shall exceed the maximum limit prescribed from time to time under rule 2(a) and rule 3(b) of the scheme of the Ministry of Urban Development for the grant of advances for house building purposes:
PROVIDED FURTHER that in the case of a subscriber who has availed himself of an advance under the scheme of the Ministry of Urban Development for the grant of advances for house building purposes, or has been allowed any assistance in this regard from any other government sources, the sum withdrawn under this sub-rule together with the amount of advance taken under the aforesaid scheme or the assistance taken from any other government source shall not exceed the maximum limit prescribed from time to time under rules 2(a) and 3(b) of the aforesaid scheme.
Note 1 : A withdrawal sanctioned to a subscriber under clause (i) of sub-rule (2) of rule 17 may be drawn in installments, the number of which shall not exceed four in a period of twelve calendar months counted from the date of sanction.
Note 2 : In cases where a subscriber has to pay in installments for a site or a house or flat purchased, or a house or flat constructed through the Delhi Development Authority or a State Housing Board or a House Building Co-operative Society he shall be permitted to make a withdrawal as and when he is called upon to make a payment in any installment. Every such payment shall be treated as a payment for a separate purpose for rule 16.
(2) A subscriber who has been permitted to withdraw money from fund under rule 17 shall satisfy the sanctioning authority within such reasonable period as may be specified by that authority that the money has been utilized for the purpose for which it was withdrawn, and if he fails to do so, the whole of the sum so withdrawn, or so much thereof as has not been applied for the purpose for which it was withdrawn shall forthwith be repaid in one lump sum by the subscriber to the fund and in default of such payment, it shall be ordered by the sanctioning authority to be recovered from his emoluments either in lump sum or in such number of monthly installments, as may be determined by the director general:
PROVIDED that, before repayment of a withdrawal is enforced under this sub-rule, the subscriber shall be given a reasonable opportunity to explain in writing and within 15 days of the receipt of the communication why the repayment shall not be enforced and if the sanctioning authority is not satisfied with the explanation or no explanation is submitted by the subscriber within the said period of 15 days the sanctioning authority shall enforce the repayment in the manner prescribed in this sub-rule.
(3)(a) A subscriber who has been permitted under clause (i), (ii) or (iii) of sub-rule (2) of rule 17 to withdraw money from the amount standing to his credit in the fund, shall not part with the possession of the house, built or acquired, or house-site purchased with the money so withdrawn, whether by way of sale, mortgage (other than mortgage to the director general), gift, exchange or otherwise, without the previous permission of the director general:
PROVIDED that such permission shall not be necessary for-
(i) the house or house-site being leased for any term not exceeding three years, or
(ii) its being mortgaged in favor of a Housing Board, Nationalised Banks, the Life Insurance Corporation or any other Corporation owned or controlled by the Central Government which advances loans for the construction of a new house or for making additions or alteration to an existing house.
(b) The subscriber shall submit a declaration not later than the 31st day of December of every year as to whether the house or the house-site, as the case may be, continues to be in his possession or has been mortgaged, otherwise transferred or let out as aforesaid and shall, if so required, produce before the sanctioning authority on or before the date specified by that authority in that behalf, the original sale, mortgage or lease deed and also the documents on which his title to the property is based.
(c) If at any time before his retirement, the subscriber parts with the possession of the house or house-site without obtaining the previous permission of the Director General, he shall forthwith repay the sum so withdrawn by him in default of such repayment, the sanctioning authority shall, after giving the subscriber a reasonable opportunity for making a representation in the matter cause the said sum to be recovered from the emoluments of the subscriber either in lump sum or in such number of monthly installments, as may be determined by it.
Note A : A subscriber who has taken loan from ESI Corporation in lieu thereof mortgaged the house or house-site to the corporation shall be required to furnish the declaration to the following effect, namely:-
"I do hereby certify that the house or house-site for the construction of which or for the acquisition of which I have taken a final withdrawal from the provident fund continues to be in my possession but stands mortgaged to corporation".