Section 242 in The Navy (Pay And Allowances) Regulations, 1966
242. Sale of motor cars purchased with Government advance.
(1)An officer shall not sell or transfer a motor car for so long as the amount of advance together with interest on such amount is not completely repaid, except with the permission of the sanctioning authority in writing.(2)If an officer seeks permission to transfer a motor car to another officer who should use a motor car in the discharge of his duties, the sanctioning authority may permit to transfer the liability attached to the car to the later, provided that the transferee records a declaration that he is aware that the motor car transferred to him remains subject to the mortgage bond and that he is bound by its terms and provisions. The application for sale of a vehicle shall be forwarded to the sanctioning authority through proper channel.(3)When a vehicle is sold before completion of repayment of the Government advance granted for its purchase the sale proceeds must be applied, so far as maybe necessary, to the repayment of the outstanding balance of the advance, provided that if the vehicle has been sold only in order that another may be purchased, the sanctioning authority may permit the officer to apply the sale proceeds towards such purchase subject to the following conditions, namely:(a)the advance outstanding should not exceed the cost of the new vehicle;(b)the advance outstanding shall continue to be repaid at the rate previously fixed; and(c)the new vehicle shall be insured and mortgaged to Central Government as required under these regulations.(4)[ A fresh advance shall not be sanctioned to an officer who is permitted to sell his old car in order to purchase new one. A fresh advance can be sanctioned only when the outstanding balance of the advance in respect of the first car together with interest thereon has been fully repaid.Explanation. 1 - An officer who is permitted by the sanctioning authority to sell his car purchased out of Government advance shall intimate the date of sale to the sanctioning authority and the Controller of Defence Accounts (Navy), Bombay, as soon as the sale is effected.Explanation. 2. - A specimen of Mortgage Bond for motor vehicle purchased with sale proceeds of an old one before the repayment of the entire advance of money with interest thereon sanctioned by the Government earlier for the purchase of the latter vehicle required under sub-regulation (2) of regulation 242 is given as Appendix XI-J. The fresh Mortgage Bond shall be for the amount then due and not for the amount originally advanced.] [Substitued by S.R.O. 9-E, dated 19th March, 1974]
