FRIDAY, MAY 17, 2024
SURAJ NANDREKAR
PANJIM: Following criticism from various quarters on the abolition of House Building Allowance (HBA) scheme for government servants, the government has now moved a file to abolish the scheme for Members of the Legislative Assembly too.
Speaking to Herald, Goa Legislative Assembly Speaker Rajesh Patnekar said the file has been moved to the government. “We have decided to scrap the House Building Allowance and other loan scheme to the MLAs and ministers. The file has been moved to the government,” Patnekar said.
He added that once the file is cleared, the notification would be issued. “Once cleared, all the MLAs will also have to pay the prevailing rates charged by the bank,” he said.
The development comes months after Chief Minister Pramod Sawant announced that the MLAs’ housing scheme will also be abolished. The ministers and MLAs of the House are entitled for Rs 30 lakh as housing loans and Rs 15 lakh as car loans. From 2016 to 2019, the Assembly has disbursed Rs 5.05 crore for housing loans and Rs 4.67 crore as car loans.
While the government servant gets the loans at five per cent interest, the MLAs were getting the loans at 2 per cent interest.
The State government in January announced that it has withdrawn/closed the HBA Rules Scheme extended to its employees with effect from May 15, 2020. The State government has Rs 300 cr as the bank guarantee with the Bank of India, which would be withdrawn.
“The bank guarantee issued shall be withdrawn in a phased manner within a period of one year i.e. by
May 15, 2021. Accordingly, Bank of India shall release the guarantee of Rs 300.00 crore @ the rate of Rs 75.00 crore in each quarter. Bank of India shall furnish information about outstanding balance of Government Guarantee every month,” the circular says.
The government has faced criticism from various quarters for withdrawing the scheme as the employees have suddenly found their EMIs going up drastically. The State government’s ordinance has received an approval from Governor Bhagat Singh Khoshyari.
The notification issued by the Governor says, “No suit, prosecution or other legal proceedings shall be maintained against the Government” or any of its officers or persons duly appointed or authorised by it in respect of any action or any order or direction issued or taken or purported to be issued or taken under the provisions of the Ordinance.
