Closure of HBA scheme: HC asks govt to reply in 3 weeks

PANJIM: The High Court of Bombay at Goa has asked the State government to file its reply within next three weeks regarding withdrawing of house building advance (HBA) for government employees.

The court has clubbed all the five writ petitions filed by Nilesh Naik and 24 others; Goa Judicial Officers Association represented by its secretary Vincent Milagres D’Silva and five others; Yashoda Tari and 90 others Gulamrasul and 24 others and PI Filomena Costa and 240 other police officers, who have challenged the government’s decision to close the house building advance (HBA) scheme to the Goa government employees abruptly.  

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According to the petitioners, the State government on May 15, 2020 by an order withdrew/cancelled HBA scheme extended to all government employees without any reasons. The HBA scheme was started in December 1988. 

The order further stated that all outstanding HBA will be charged interest at the prevailing bank rate with effect from May 15, 2020 and monthly installment towards the HBA payable will be revised accordingly.

The order also stated that the bank guarantee issued will be withdrawn in a phased within a period of one year ie by May 15, 2021.

The petitioners stated that with the government unilaterally withdrawing the HBA scheme, they are saddled with additional liability, which was never postulated either at the time of the commencement of the said scheme or for that matter issuance of the said circulars/notifications/orders/office memorandums, which is apparent from the fact of quantum leap of interest from two per cent to 10.20 per cent payable now.

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The petitioners have prayed that the Goa (Regulation of House Building Advance) Ordinance promulgated by the Governor on September 12, 2020 be quashed and set aside. 

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