Section 207(3) in The Navy (Pay And Allowances) Regulations, 1966
(3)Compensation for inferior quarters shall not be admissible-(a)in hutted camps;(b)when Government tents have been provided;(c)when, in the opinion of the accommodation allotting authority, the sailor concerned is suitably housed irrespective of the scale of accommodation laid down;(d)owing to deficiencies in out-houses;(e)to sailors who are entitled to compensation in lieu of quarters at less than rupees six per mensem;(f)to sailors in occupation of Government accommodation declared not habitable; the occupation of such accommodation shall also be at their own risk and cost.