Policy No SIX Effective Date January 1, 2002

Policy On HOUSING POLICY Review Date January 1, 2004

1. OBJECTIVE

To establish the guidelines for housing policy of employees covering Company Leased
Accommodation, House Rent Assistance and Self-Leased Accommodation.

2. ELIGIBILITY

House Rent Assistance : All employees.

Company Leased Accommodation:
All employees in Band 3 & above who do not have their
own accommodation in the city (house in own / spouse’s
name). However, a request for Company Leased
Accommodation from such employees shall be considered
upon the specific approval of the CEO.
Employees in B4 may also be extended this facility on need
basis. This will require special approval of CEO.

Self Leased Accommodation : All employees in Band 4 and above.

3. ENTITLEMENT

The entitlement would be as per limits indicated in the appointment / terms of service and as may be
revised from time to time and would comprise interest on deposit at 14% p.a. and rentals.

4. COMPANY LEASED ACCOMODATION

POLICY DETAILS

a) The Leased accommodation will be taken in the name of the Company only. Draft copy
of the Licence Agreement, Hire Agreement, Renewal Agreement and Leave & License deed
should be as per the prescribed format. Where the company provides accommodation, the
employee will not be entitled to HRA. In the unlikely event of CLA being less than the HRA, the
difference will not be paid to the employee.

b) The Company will pay the brokerage charge and security deposit. The amount to be paid
for brokerage charge and advance rent / security deposit would be as per the norms of the
location, subject to approval of the Administration Head. The period of Licence would also be
determined by the norm prevalent in the particular location. However, as far as possible the
Licence period would be for 33 months. The Employee, who wishes to avail CLA may be
required to opt for a suitable premises that has been already selected by the Company or is
available with them. 14% of security deposit will be added to the rent component to arrive at the
CLA figure for the employee.

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VP-Corporate HR CFO CEO Director
VP–Finance
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 c) In the event that an employee would prefer a CLA on an amount higher than his/her
entitlement, the difference will be recoverable from his/her monthly payroll.

d) Employees are expected to stay in the CLA allotted to them for at least a period of 24
months or the duration of the Licence agreement, whichever is less.

e) In case an executive vacates the premises, the Licence will be terminated, unless
another entitled executive in the Company agrees to use the same premises. Any liability on
account of lesser notice period / damages as settled with the landlord will be to the employee’s
account. Liability on account of lesser notice period will not apply in case of transfer.

f) HR and Administration will be jointly responsible for administering the policy. Legal
Department will be responsible for the agreements related to house Licence. The relevant
Authorised Signatory of the Company will sign Licence agreement. Accounts will process rent
payment to landlord as per the terms of agreement.

g) In case the employee leaves the organisation and opts to stay in the same house, then
the employee will have to execute a separate agreement with the landlord and this will be subject
to return of Security Deposit to the Company.

h) All tax implications arising out of this benefit would be payable by the employee.

5. SELF LEASED ACCOMODATION:

POLICY DETAILS

a) If the employee lives in a family owned property i. e property owned by spouse, parents or
parents-in-law, the Company can enter into a Licence agreement with the owner for a rental not
exceeding the employee’s HRA entitlement.

b) No brokerage or security deposit/ advance rent would be payable by the Company.

c) The duration of the Licence will be for a period of 1 year (April - March). The first Licence will
expire on 31st March and thereafter there will be yearly renewal.

d) Employee availing of this scheme is required to stay in the accommodation leased by the
Company under this scheme.

e) All tax implications arising out of this benefit would be payable by the employee.

OPERATING PROCEDURE

Request for Company Leased Accommodation or Self-Leased Accommodation should be routed

through the Human Resources in the prescribed format.

Administration Department will assist in arranging the accommodation as per the requirement of an
employee through Estate agencies / Brokers. The Administration Department should be informed on
finalisation of accommodation. The Administration Department will initiate the process of Licence

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VP-Corporate HR CFO CEO Director
VP–Finance
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agreement. The Licence agreement should be in the name of the Company and the Landlord. The
enclosed Guidelines would act as a reference point for third party leases.

At the time of leaving the organization, it will be the responsibility of the employee to vacate the
house and coordinate for refund of the security deposit. He/she should also clear all dues/ amounts
arising out of Taxes/ damages / non-payment of electricity and telephone bills or any other bills.

Annexures:

Annexure 1 - Guidelines for Third Party Leases

Annexure 2 - Hire Agreement
Annexure 3 – Renewal Agreement
Annexure 4 – Leave & License Deed
Annexure 5 – Undertaking

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VP-Corporate HR CFO CEO Director
VP–Finance
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