Section 242(3) in The Navy (Pay And Allowances) Regulations, 1966
(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.
