EPF Amount Withdrawal for Construction of House

EPF Amount Withdrawal for Purchase of a Dwelling Site for Construction of House thereon

A member of the provident Fund is eligible to avail the EPF Amount withdrawal for Construction of House viz. For purchasing a dwelling site on fulfilling the following eligibility criteria.

EPF Amount Withdrawal for Construction of House

  1. The member should have completed 5 years membership of the Fund on the date of authorization of withdrawal.
  2. The member’s own share of contribution with interest thereon in the amount standing to his credit in the Fund should be Rs 1000/- or more on the date of authorization of the withdrawal. For this purpose, wherever the amount is not sufficient the contribution realized till the date of authorization should also be taken into account.
  3. Site to be purchased should be free from encumbrances;
  4. The site proposed to be purchased should be for the purpose of construction of a dwelling house thereon;
  5. The site may be purchased either from an ‘agency’ or from individual;
  6. Site if mortgaged to an ‘agency’ solely for having obtained the funds for the purchase of site it should not be deemed as an encumbered property;
  7. If the site proposed to be purchased on a perpetual lease of a lease for a period of not less than 30 years it should not be deemed as encumbered property;
  8. The site is held in the name of ‘agency’ it should not be construed as encumbered property;
  9. Purchase of a site for having a share in a joint property should not be permitted.

Documents that are required to be obtained along with the applications.

  1. Original title deed of the property in favor of the present vendor (seller of the property) together with a photo copy attested by the employer;
  2. If the purchase of site is though a power of attorney agent, copy of the registered power of attorney. Wherever there is prohibition of sale of property, though power of attorney, the advance shall not be granted.
  3. Sale agreement deed of the present vendor/ Power of attorney agent with the member on Stamp paper;
  4. Non-encumbrance Certificate for a period of 13 years upto the date of sale agreement;
  5. Approved lay out of the site plan or in the absence of approved lay-out, a certificate from the authority which approves the building plan to the effect that the site is fit for construction  of dwelling house;
  6. In case the site is held as hereditary property and in the absence of a title deed. The extract from Corporation, Municipal, Town Panchayat, Revenue authority, etc. Of the Property Register giving description of the property, name of the owner, assessment of tax, tax receipt, etc.,  or any similar document clearly establishing the title of the land;

Quantum of Withdrawal

The quantum of withdrawal shall not exceed the member’s basic wages. And D.A for 24 months or the member’s own share of contribution together with employer share of contribution. With interest thereon (reckoned up to the current month) or the actual cost towards acquisition of the dwelling site. Which includes the cost of stamp paper and registration charges, whichever is least.

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