General Financial Rules, 2017 | CSS ADDA<\/title>\n<style>\n*, *::before, *::after { box-sizing: border-box; margin: 0; padding: 0; }\n\nbody {\n font-family: 'Bookman Old Style', 'Book Antiqua', Georgia, serif;\n background: #ececea;\n color: #1a1a1a;\n font-size: 15px;\n line-height: 1.9;\n}\na { text-decoration: none; color: inherit; }\n\n.breadcrumb-bar {\n background: #fff; border-bottom: 1px solid #ddd;\n padding: 9px 28px; font-size: 13px; color: #999;\n display: flex; align-items: center; gap: 6px;\n}\n.breadcrumb-bar a { color: #2a6496; }\n.breadcrumb-bar span { color: #ccc; }\n.breadcrumb-bar strong { color: #333; }\n\n.wrapper { display: flex; min-height: 100vh; align-items: flex-start; }\n\n\/* \u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550 SIDEBAR \u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550 *\/\n.sidebar {\n width: 280px; min-width: 280px;\n background: #1e4d35;\n min-height: 100vh;\n position: sticky; top: 0;\n 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margin: 0; padding: 0; border: none; }\n.goi-dec-title { font-size: 14px; font-weight: 700; color: #5a3d00; margin-bottom: 10px; display: flex; align-items: center; gap: 8px; }\n\n\/* \u2550\u2550 TABS (Losses) \u2550\u2550 *\/\n.loss-tabs { display: flex; flex-wrap: wrap; gap: 4px; border-bottom: 2px solid #1e4d35; }\n.loss-tb { padding: 8px 13px; border: 1.5px solid #c0cce8; border-bottom: none; border-radius: 6px 6px 0 0; background: #eef1f8; color: #5a6480; font-family: 'Bookman Old Style','Book Antiqua',Georgia,serif; font-size: 11px; font-weight: 700; cursor: pointer; transition: all 0.16s; white-space: nowrap; }\n.loss-tb:hover { background: #dde6ff; color: #1a3a6b; }\n.loss-tb.on { background: #1e4d35; color: #f5c518; border-color: #1e4d35; }\n.loss-panel { display: none; padding: 16px 2px 4px; }\n.loss-panel.on { display: block; animation: fade .28s ease; }\n@keyframes fade { from{opacity:0;transform:translateY(6px)} to{opacity:1;transform:none} }\n.loss-intro { background: #1e4d35; color: #fff; border-left: 4px solid #f5c518; border-radius: 0 6px 6px 0; padding: 10px 14px; font-size: 13px; font-style: italic; line-height: 1.65; margin-bottom: 13px; }\n\n\/* \u2550\u2550 CTA \u2550\u2550 *\/\n.cta-link { display: inline-flex; align-items: center; gap: 6px; font-size: 14px; font-weight: 600; color: #2a6496; margin: 6px 0 14px; cursor: pointer; }\n.cta-link:hover { text-decoration: underline; }\n\n\/* \u2550\u2550 COMING SOON \u2550\u2550 *\/\n#coming-soon { display:none; text-align:center; padding: 80px 20px; }\n\n@media(max-width:860px){ .wrapper{flex-direction:column} .sidebar{width:100%;min-width:100%;position:static;max-height:none} .content-area{padding:20px 18px 48px} .pg-head{padding:16px 18px 12px} }\n<\/style>\n<\/head>\n<body>\n\n<div class=\"breadcrumb-bar\">\n <a href=\"#\">Home<\/a><span>\/<\/span>\n <a href=\"#\">Notes<\/a><span>\/<\/span>\n <strong>GFR 2017<\/strong>\n<\/div>\n\n<div class=\"wrapper\">\n\n\n<aside class=\"sidebar\">\n <div class=\"sb-brand\">\n <div class=\"ico\">\ud83d\udcdc<\/div>\n <div class=\"name\">CSS ADDA<\/div>\n <div class=\"sub\">Promotion Exams Portal<\/div>\n <div class=\"pill\">GFR 2017<\/div>\n <\/div>\n <div class=\"toc-hd\">\ud83d\udccb Chapters<\/div>\n <ul class=\"toc-list\">\n <li><a href=\"#\" data-ch=\"ch1\" class=\"active\">\n <span class=\"toc-ic\">\ud83d\udcd8<\/span>\n <span class=\"toc-tx\">Chapter 1<br><span style=\"font-size:11px;font-weight:400;color:inherit;opacity:.8\">Introduction<\/span><\/span>\n <span class=\"toc-rng\">R.1\u20136<\/span>\n <\/a><\/li>\n <li><a href=\"#\" data-ch=\"ch2\">\n <span class=\"toc-ic\">\ud83d\udcd7<\/span>\n <span class=\"toc-tx\">Chapter 2<br><span style=\"font-size:11px;font-weight:400;color:inherit;opacity:.8\">General System of Financial Management<\/span><\/span>\n <span class=\"toc-rng\">R.7\u201339<\/span>\n <\/a><\/li>\n <li><a href=\"#\" data-ch=\"ch3\">\n <span class=\"toc-ic\">\ud83d\udcd9<\/span>\n <span class=\"toc-tx\">Chapter 3<br><span style=\"font-size:11px;font-weight:400;color:inherit;opacity:.8\">Budget Formulation & Implementation<\/span><\/span>\n <span class=\"toc-rng\">R.42\u201370<\/span>\n <\/a><\/li>\n <li><a href=\"#\" data-ch=\"ch4\">\n <span class=\"toc-ic\">\ud83d\udcd5<\/span>\n <span class=\"toc-tx\">Chapter 4<br><span style=\"font-size:11px;font-weight:400;color:inherit;opacity:.8\">Government Accounts<\/span><\/span>\n <span class=\"toc-rng\">R.71\u2013129<\/span>\n <\/a><\/li>\n <li><a href=\"#\" data-ch=\"ch5\">\n <span class=\"toc-ic\">\ud83d\udcd2<\/span>\n <span class=\"toc-tx\">Chapter 5<br><span style=\"font-size:11px;font-weight:400;color:inherit;opacity:.8\">Works<\/span><\/span>\n <span class=\"toc-rng\">R.130\u2013141<\/span>\n <\/a><\/li>\n <li><a href=\"#\" data-ch=\"ch6\">\n <span class=\"toc-ic\">\ud83d\udcd3<\/span>\n <span class=\"toc-tx\">Chapter 6<br><span style=\"font-size:11px;font-weight:400;color:inherit;opacity:.8\">Procurement of Goods & Services<\/span><\/span>\n <span class=\"toc-rng\">R.142\u2013206<\/span>\n <\/a><\/li>\n <li><a href=\"#\" data-ch=\"ch7\">\n <span class=\"toc-ic\">\ud83d\udce6<\/span>\n <span class=\"toc-tx\">Chapter 7<br><span style=\"font-size:11px;font-weight:400;color:inherit;opacity:.8\">Inventory Management<\/span><\/span>\n <span class=\"toc-rng\">R.207\u2013223<\/span>\n <\/a><\/li>\n <li><a href=\"#\" data-ch=\"ch8\">\n <span class=\"toc-ic\">\ud83d\udcdd<\/span>\n <span class=\"toc-tx\">Chapter 8<br><span style=\"font-size:11px;font-weight:400;color:inherit;opacity:.8\">Contract Management<\/span><\/span>\n <span class=\"toc-rng\">R.224\u2013227A<\/span>\n <\/a><\/li>\n <li><a href=\"#\" data-ch=\"ch9\">\n <span class=\"toc-ic\">\ud83e\udd1d<\/span>\n <span class=\"toc-tx\">Chapter 9<br><span style=\"font-size:11px;font-weight:400;color:inherit;opacity:.8\">Grants-in-aid and Loans<\/span><\/span>\n <span class=\"toc-rng\">R.228\u2013263<\/span>\n <\/a><\/li>\n <li><a href=\"#\" data-ch=\"ch10\">\n <span class=\"toc-ic\">\ud83c\udf10<\/span>\n <span class=\"toc-tx\">Chapter 10<br><span style=\"font-size:11px;font-weight:400;color:inherit;opacity:.8\">Externally Aided Projects<\/span><\/span>\n <span class=\"toc-rng\">R.264\u2013274<\/span>\n <\/a><\/li>\n <li><a href=\"#\" data-ch=\"ch11\">\n <span class=\"toc-ic\">\ud83d\udee1\ufe0f<\/span>\n <span class=\"toc-tx\">Chapter 11<br><span style=\"font-size:11px;font-weight:400;color:inherit;opacity:.8\">Government Guarantees<\/span><\/span>\n <span class=\"toc-rng\">R.275\u2013283<\/span>\n <\/a><\/li>\n <li><a href=\"#\" data-ch=\"ch12\">\n <span class=\"toc-ic\">\ud83d\uddc2\ufe0f<\/span>\n <span class=\"toc-tx\">Chapter 12<br><span style=\"font-size:11px;font-weight:400;color:inherit;opacity:.8\">Miscellaneous<\/span><\/span>\n <span class=\"toc-rng\">R.284\u2013324<\/span>\n <\/a><\/li>\n <\/ul>\n<\/aside>\n\n\n<main class=\"main\">\n <div class=\"pg-head\">\n <h1>General Financial Rules, 2017 \u2014 Study Notes<\/h1>\n <div class=\"pg-sub\">Ministry of Finance \u00b7 CSS ADDA Promotion Exams Portal<\/div>\n <\/div>\n\n <div class=\"content-area\">\n\n \n <div id=\"ch1\" class=\"ch-block active\">\n\n <div class=\"ch-banner\">\n <div class=\"ch-num\">Chapter 1<\/div>\n <div class=\"ch-title\">Introduction<\/div>\n <div class=\"ch-range\">Rules 1 to 6 \u00b7 Short title, Definitions, Consultation, Modifications<\/div>\n <\/div>\n\n \n <div class=\"idx-outer\">\n <div class=\"idx-lbl\">Rules at a Glance<\/div>\n <table class=\"idx-table\">\n <thead><tr><th style=\"width:90px\">Rule No.<\/th><th>Rule Title<\/th><th>Key Point<\/th><\/tr><\/thead>\n <tbody>\n <tr><td class=\"r-num\">Rule 1<\/td><td class=\"r-title\">Short Title and Commencement<\/td><td class=\"r-key\">GFR 2017 \u00b7 At once \u00b7 Applies to all Central Govt. Ministries\/Depts \u00b7 Autonomous Bodies unless own rules<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 2<\/td><td class=\"r-title\">Definitions<\/td><td class=\"r-key\">32 definitions \u00b7 DDO = Gazetted Officer \u00b7 HoD = min. Dy. Secy. \u00b7 FY = 1 Apr\u201331 Mar \u00b7 CAPEX & OPEX models<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 3<\/td><td class=\"r-title\">Inter-Departmental Consultation<\/td><td class=\"r-key\">All concerned depts must concur OR Cabinet decides \u00b7 Indirect effect also counts<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 4<\/td><td class=\"r-title\">Departmental Regulations of Financial Character<\/td><td class=\"r-key\">All financial regulations \u2192 by or with MoF concurrence<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 5<\/td><td class=\"r-title\">Removal of Doubts<\/td><td class=\"r-key\">Interpretation doubts \u2192 Ministry of Finance decides \u00b7 Decision is final<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 6<\/td><td class=\"r-title\">Modifications<\/td><td class=\"r-key\">MoF may issue general\/special instructions \u00b7 Any other authority \u2192 EXPRESS MoF approval mandatory<\/td><\/tr>\n <\/tbody>\n <\/table>\n <\/div>\n\n \n <div class=\"rule-block\" id=\"r1\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 1<\/span>\n <span class=\"rule-title\">Short Title and Commencement<\/span>\n <\/div>\n <div class=\"sec-h\">The Rule<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udcdc<\/span><span>These rules shall be called the <strong>General Financial Rules, 2017<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\u26a1<\/span><span>They come into force <strong>at once<\/strong> \u2014 immediately upon publication in the Official Gazette.<\/span><\/li>\n <li><span class=\"bi\">\ud83c\udfdb\ufe0f<\/span><span>Apply to all <strong>Central Government Ministries and Departments<\/strong>, including their attached and subordinate offices.<\/span><\/li>\n <\/ul>\n <div class=\"box-green\">\n <div class=\"box-green-lbl\">\ud83d\udccc Autonomous Bodies<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83c\udfe2<\/span><span>GFR shall be <strong>deemed to apply to autonomous bodies<\/strong> also \u2014 <em>unless<\/em> such a body has its own <strong>Financial Rules incorporated in its bye-laws and approved by the Government<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\u26a0\ufe0f<\/span><span>The mere existence of bye-laws is not enough \u2014 the financial rules must be specifically incorporated <em>and<\/em> carry Government approval.<\/span><\/li>\n <\/ul>\n <\/div>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"r2\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 2<\/span>\n <span class=\"rule-title\">Definitions<\/span>\n <\/div>\n <p style=\"margin-bottom:14px;color:#555;font-size:14px\">Rule 2 contains <strong>32 definitions<\/strong>. The most important ones for examination purposes are set out below.<\/p>\n\n <div class=\"sec-h\">Key Definitions<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>Accounts Officer [Cl. i]:<\/strong> The Head of an office of accounts \u2014 i.e., the Head of a <strong>Pay and Accounts Office (PAO)<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>Appropriation [Cl. iii]:<\/strong> Assignment of funds to meet <strong>expenditure of a specified kind from a primary unit of appropriation<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>Competent Authority [Cl. v]:<\/strong> The <strong>President of India<\/strong>, or any authority to whom the President has delegated power under DFPR or through general\/special orders.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>Consolidated Fund of India [Cl. vii]:<\/strong> Fund under <strong>Article 266(1)<\/strong> of the Constitution \u2014 all revenues received and loans raised by the Government.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>Contingency Fund of India [Cl. viii]:<\/strong> Under <strong>Article 267(1)<\/strong> and the <strong>Contingency Fund of India Act, 1950<\/strong>. At the disposal of the President to meet unforeseen expenditure pending Parliamentary authorisation.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>Controlling Officer [Cl. x]:<\/strong> Responsible for <strong>supervising revenue collection and controlling expenditure<\/strong> under a major head. Includes Head of Department and Administrator.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>DDO [Cl. xii]:<\/strong> A <strong>Gazetted Officer<\/strong> authorised to draw bills and make payments on behalf of the Government \u2014 also includes Head of Department or Administrator where they discharge such functions. <span class=\"tag-amber\">\u2b50 Very Important<\/span><\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>Financial Year [Cl. xiv]:<\/strong> <strong>1st April to 31st March<\/strong> of the following year.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>Government Account [Cl. xvi]:<\/strong> Three parts \u2014 Consolidated Fund + Contingency Fund + Public Account of India.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>Head of Department [Cl. xvii]:<\/strong> Declared by competent authority \u2014 shall not be of a rank <strong>below that of Deputy Secretary to the Government of India<\/strong>. <span class=\"tag-amber\">\u2b50 Exam point<\/span><\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>Public Account of India [Cl. xxiii]:<\/strong> Under <strong>Article 266(2)<\/strong> \u2014 moneys received by or held on behalf of the Government other than those in the Consolidated Fund.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>Re-appropriation [Cl. xxvi]:<\/strong> Transfer of funds from <strong>one primary unit of appropriation to another<\/strong> within the same grant.<\/span><\/li>\n <\/ul>\n\n <div class=\"sec-h\">New in GFR 2017 \u2014 CAPEX and OPEX Models<\/div>\n <div class=\"box-blue\">\n <div class=\"box-blue-lbl\">\u2b50 Two New Definitions Added in 2017<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83c\udfd7\ufe0f<\/span><span><strong>CAPEX Model [Cl. xxxi]:<\/strong> Buyer <strong>purchases the asset outright<\/strong>. Arranges maintenance after warranty. <strong>Disposes of the asset<\/strong> at the end of useful life. Ownership transfers to buyer at once.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udd04<\/span><span><strong>OPEX Model [Cl. xxxii]:<\/strong> Seller <strong>provides, maintains, and supplies consumables<\/strong> for the asset. Takes it back at end of life. Buyer pays a <strong>staggered periodic fee<\/strong>. Seller retains ownership throughout.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <table class=\"ctable\">\n <thead><tr><th class=\"col-h\">Parameter<\/th><th>CAPEX<\/th><th>OPEX<\/th><\/tr><\/thead>\n <tbody>\n <tr><td class=\"col-h\">Ownership<\/td><td>Transfers to Buyer<\/td><td>Remains with Seller<\/td><\/tr>\n <tr><td class=\"col-h\">Payment<\/td><td>One-time \/ upfront<\/td><td>Staggered periodic payments<\/td><\/tr>\n <tr><td class=\"col-h\">Maintenance<\/td><td>Buyer (after warranty)<\/td><td>Seller throughout<\/td><\/tr>\n <tr><td class=\"col-h\">Consumables<\/td><td>Buyer procures separately<\/td><td>Seller supplies<\/td><\/tr>\n <tr><td class=\"col-h\">End of Life<\/td><td>Buyer disposes<\/td><td>Seller takes back<\/td><\/tr>\n <tr><td class=\"col-h\">Obsolescence Risk<\/td><td>Buyer<\/td><td>Seller<\/td><\/tr>\n <\/tbody>\n <\/table>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"r3\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 3<\/span>\n <span class=\"rule-title\">Inter-Departmental Consultation<\/span>\n <\/div>\n <div class=\"sec-h\">The Rule<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83e\udd1d<\/span><span>No order or rule on a matter <strong>affecting more than one Ministry or Department<\/strong> shall be issued without prior consultation with all concerned Ministries or Departments.<\/span><\/li>\n <li><span class=\"bi\">\u2705<\/span><span>Exception: If the matter has already been <strong>decided by the Cabinet<\/strong>, no prior consultation is required.<\/span><\/li>\n <\/ul>\n <div class=\"box-red\">\n <span style=\"font-size:18px;flex-shrink:0;margin-top:2px\">\u26a0\ufe0f<\/span>\n <span><strong>EXPLANATION:<\/strong> Even an <strong>indirect or incidental effect<\/strong> on another Department's functions is sufficient to trigger the consultation requirement. The test is not limited to matters squarely within another Department's jurisdiction.<\/span>\n <\/div>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"r4\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 4<\/span>\n <span class=\"rule-title\">Departmental Regulations of Financial Character<\/span>\n <\/div>\n <div class=\"sec-h\">The Rule<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccb<\/span><span>All <strong>Departmental Regulations of a financial character<\/strong> must be made <strong>by or with the concurrence of the Ministry of Finance<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\u26d4<\/span><span>No Ministry or Department can unilaterally issue financial regulations without MoF involvement.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"r5\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 5<\/span>\n <span class=\"rule-title\">Removal of Doubts<\/span>\n <\/div>\n <div class=\"sec-h\">The Rule<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\u2753<\/span><span>If any <strong>doubt arises regarding the interpretation<\/strong> of any provision of GFR, the matter shall be referred to the <strong>Ministry of Finance<\/strong>, whose decision shall be <strong>final<\/strong>.<\/span><\/li>\n <\/ul>\n <div class=\"box-blue\">\n <div class=\"box-blue-lbl\">\ud83d\udccc Key Point<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83c\udfdb\ufe0f<\/span><span>MoF is the <strong>sole and final interpreter<\/strong> of the GFR. No other authority can interpret its provisions \u2014 all doubts are referred to MoF.<\/span><\/li>\n <\/ul>\n <\/div>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"r6\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 6<\/span>\n <span class=\"rule-title\">Modifications<\/span>\n <\/div>\n <div class=\"sec-h\">The Rule<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\u270f\ufe0f<\/span><span>The <strong>Ministry of Finance<\/strong> may issue general or special instructions modifying the procedure prescribed in these rules.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udd12<\/span><span>Any <strong>other authority<\/strong> may modify GFR provisions only with the <strong>express approval of the Ministry of Finance<\/strong>.<\/span><\/li>\n <\/ul>\n <div class=\"box-red\">\n <span style=\"font-size:18px;flex-shrink:0;margin-top:2px\">\u26a0\ufe0f<\/span>\n <span><strong>EXPLANATION:<\/strong> The word <strong>\"express\"<\/strong> is critical \u2014 implied or presumed MoF approval is not sufficient. Approval must be explicitly recorded in writing before any modification can take effect.<\/span>\n <\/div>\n <\/div>\n <\/div>\n\n\n \n <div id=\"ch2\" class=\"ch-block\">\n\n <div class=\"ch-banner\">\n <div class=\"ch-num\">Chapter 2<\/div>\n <div class=\"ch-title\">General System of Financial Management<\/div>\n <div class=\"ch-range\">Rules 7 to 41 \u00b7 Four Sections: Govt. Receipts \u00b7 General Principles \u00b7 Losses \u00b7 Records & Audit<\/div>\n <\/div>\n\n \n <div class=\"idx-outer\">\n <div class=\"idx-lbl\">Rules at a Glance<\/div>\n <table class=\"idx-table\">\n <thead><tr><th style=\"width:110px\">Rule No.<\/th><th>Rule Title<\/th><th>Key Point<\/th><\/tr><\/thead>\n <tbody>\n <tr><td colspan=\"3\" style=\"background:#f0f4ff;font-weight:700;color:#1a3a6b;font-size:12px;letter-spacing:.06em;text-transform:uppercase;padding:8px 14px\">Government Receipts (Rules 7\u201320)<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 7<\/td><td class=\"r-title\">All Receipts into Government Account<\/td><td class=\"r-key\">All moneys received \u2192 brought into Govt Account without delay \u00b7 Art.150 & 283(1)<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 8<\/td><td class=\"r-title\">Moneys into Public Account \u00b7 Court Moneys<\/td><td class=\"r-key\">Art.284 \u2014 non-revenue moneys received by officers \u2192 Public Account \u00b7 Supreme Court & UT Courts included<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 9<\/td><td class=\"r-title\">Duty to Assess and Collect Receipts<\/td><td class=\"r-key\">Dept must ensure dues correctly and promptly assessed, collected and credited<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 10<\/td><td class=\"r-title\">Controlling Officer \u2014 Monthly Accounts<\/td><td class=\"r-key\">CO to obtain monthly accounts from subordinates \u00b7 Compare with Accounts Officer statements<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 11<\/td><td class=\"r-title\">Rules on Revenue Assessment & Receipt Books<\/td><td class=\"r-key\">Detailed rules in dept regulations \u00b7 Receipt books in Form GAR-6<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 12<\/td><td class=\"r-title\">Outstanding Dues<\/td><td class=\"r-key\">Amounts due not to be left outstanding \u00b7 If irrecoverable \u2192 competent authority orders<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 13<\/td><td class=\"r-title\">No Credit via Suspense Head<\/td><td class=\"r-key\">Credit must follow actual realisation \u00b7 No debit to suspense head unless specially authorised<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 14<\/td><td class=\"r-title\">Report of Revenue Collection Progress<\/td><td class=\"r-key\">HoD\/Administrator to keep Finance Ministry informed of revenue progress and variations from BE<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 15<\/td><td class=\"r-title\">Rents of Buildings and Lands<\/td><td class=\"r-key\">HoD responsible for recovery of rent \u00b7 Procedure as per CPWD rules<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 16<\/td><td class=\"r-title\">Fines<\/td><td class=\"r-key\">Authority to realise fines must deposit money \u00b7 Authority to refund must prevent double refunds<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 17<\/td><td class=\"r-title\">Miscellaneous Demands<\/td><td class=\"r-key\">Accounts Officers to watch realisation of misc. demands \u2014 contributions from States, Local Funds, contractors<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 18<\/td><td class=\"r-title\">Remission of Revenue<\/td><td class=\"r-key\">Revenue not to be remitted or abandoned without sanction of competent authority<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 19<\/td><td class=\"r-title\">Annual Statement of Remissions<\/td><td class=\"r-key\">Submit to Audit & Accounts Officer by 1st June annually \u00b7 Individual remissions below \u20b91,000 excluded<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 20<\/td><td class=\"r-title\">Rules on Remissions<\/td><td class=\"r-key\">Departments may make rules defining remissions and abandonments of revenue<\/td><\/tr>\n <tr><td colspan=\"3\" style=\"background:#e8f0ff;font-weight:700;color:#1a3a6b;font-size:12px;letter-spacing:.06em;text-transform:uppercase;padding:8px 14px\">Section I \u2014 General Principles Relating to Expenditure and Payment of Money (Rules 21\u201332)<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 21<\/td><td class=\"r-title\">Standards of Financial Propriety<\/td><td class=\"r-key\">4 principles \u00b7 Ordinary prudence \u00b7 No excess \u00b7 No self-benefit \u00b7 No private benefit except court-enforceable or policy<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 22<\/td><td class=\"r-title\">Expenditure from Public Funds<\/td><td class=\"r-key\">No expenditure unless sanctioned by competent authority \u00b7 Applies to CF, Contingency Fund, Public Account<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 23<\/td><td class=\"r-title\">Delegation of Financial Powers<\/td><td class=\"r-key\">Powers delegated via DFPR \u00b7 Undelegated powers vest in Finance Ministry<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 24<\/td><td class=\"r-title\">Consultation with Financial Advisers<\/td><td class=\"r-key\">All draft memos for EFC\/PIB\/CEE\/CCEA\/Cabinet \u2192 after FA consultation \u00b7 Confirmation in memo mandatory<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 25<\/td><td class=\"r-title\">Provision of Funds for Sanction<\/td><td class=\"r-key\">Sanction must indicate source of funds \u00b7 Must state if valid appropriation\/re-appropriation available<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 26<\/td><td class=\"r-title\">Responsibility of Controlling Officer<\/td><td class=\"r-key\">4 duties \u2014 No excess \u00b7 Right purpose \u00b7 Public interest \u00b7 Adequate control mechanism<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 27<\/td><td class=\"r-title\">Date of Effect of Sanction<\/td><td class=\"r-key\">Comes into force from date of issue \u00b7 For temporary posts \u2014 date of creation to be specified<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 28<\/td><td class=\"r-title\">Powers in Special Matters<\/td><td class=\"r-key\">No grant of land \/ assignment of revenue \/ mineral rights \/ relinquishment without Finance Ministry consent<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 29<\/td><td class=\"r-title\">Communication of Sanctions<\/td><td class=\"r-key\">All sanctions to be communicated to Audit & Accounts Officers \u00b7 12 sub-clauses for procedure<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 30<\/td><td class=\"r-title\">Lapse of Sanctions<\/td><td class=\"r-key\">Lapse if no payment in 12 months \u00b7 3 provisos (dept regulations \/ specific FY \/ stores with accepted tenders)<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 31<\/td><td class=\"r-title\">Non-lapsing Sanctions<\/td><td class=\"r-key\">Additions to permanent establishment under general scheme \/ allowances for post \u2014 do not lapse<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 32<\/td><td class=\"r-title\">Remission of Disallowances \/ Write-off of Overpayments<\/td><td class=\"r-key\">As per DFPR and instructions issued thereunder<\/td><\/tr>\n <tr><td colspan=\"3\" style=\"background:#f0faf5;font-weight:700;color:#1a6b5a;font-size:12px;letter-spacing:.06em;text-transform:uppercase;padding:8px 14px\">Section II \u2014 Defalcation and Losses (Rules 33\u201338)<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 33<\/td><td class=\"r-title\">Report of Losses (7 sub-rules)<\/td><td class=\"r-key\">Immediately to next higher authority + Statutory Audit Officer + Principal Accounts Officer \u00b7 2 exemptions \u00b7 2-stage reporting \u00b7 \u20b910,000 petty loss exemption<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 34<\/td><td class=\"r-title\">Loss due to Fire, Theft, Fraud<\/td><td class=\"r-key\">Losses above \u20b950,000 \u2192 reported to Police \u00b7 Police investigation report to be obtained<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 35<\/td><td class=\"r-title\">Loss of Immovable Property<\/td><td class=\"r-key\">Losses exceeding \u20b950,000 (buildings, works) due to natural causes \u2192 reported to Govt through usual channel<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 36<\/td><td class=\"r-title\">Report to Audit and Accounts Officers<\/td><td class=\"r-key\">Detailed report after full enquiry \u00b7 Copy simultaneously to Audit Officer and PAO<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 37<\/td><td class=\"r-title\">Responsibility for Losses<\/td><td class=\"r-key\">Personally responsible for own fraud\/negligence \u00b7 Also responsible for others' if contributed \u00b7 Dept proceedings per Appendix 1<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 38<\/td><td class=\"r-title\">Prompt Disposal of Loss Cases<\/td><td class=\"r-key\">All stages \u2014 detection, reporting, write-off, final disposal, action against delinquents \u2014 to be completed promptly<\/td><\/tr>\n <tr><td colspan=\"3\" style=\"background:#fffbe6;font-weight:700;color:#7a5500;font-size:12px;letter-spacing:.06em;text-transform:uppercase;padding:8px 14px\">Section III \u2014 Submission of Records and Information (Rules 39\u201341)<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 39<\/td><td class=\"r-title\">Demand for Information by Audit\/Accounts Officer<\/td><td class=\"r-key\">Afford all reasonable facilities to Audit Officer and PAO \u00b7 Furnish all information for accounts, reports, payments, internal audit<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 40<\/td><td class=\"r-title\">Non-withholding of Documents<\/td><td class=\"r-key\">No authority to withhold any information, books or documents from Audit\/Accounts Officer<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 41<\/td><td class=\"r-title\">Secret \/ Top Secret Files<\/td><td class=\"r-key\">Send personally to Head of Audit Office specifying classification \u00b7 Dealt with per standing instructions<\/td><\/tr>\n <\/tbody>\n <\/table>\n <\/div>\n\n \n <div style=\"background:#f0f4ff;border-left:5px solid #1a3a6b;padding:10px 18px;border-radius:0 6px 6px 0;margin:10px 0;font-weight:700;color:#1a3a6b;font-size:14px;letter-spacing:.04em;text-transform:uppercase\">Government Receipts \u2014 Rules 7\u201320<\/div>\n\n \n <div class=\"rule-block\" id=\"r7\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 7<\/span>\n <span class=\"rule-title\">All Moneys Received to be brought into Government Account<\/span>\n <\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udcb0<\/span><span>All moneys received by or on behalf of the Government \u2014 whether as <strong>dues of Government, for deposit, remittance, or otherwise<\/strong> \u2014 shall be <strong>brought into Government Account without delay<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcdc<\/span><span>This shall be in accordance with such general or special rules as may be issued under <strong>Articles 150 and 283(1)<\/strong> of the Constitution.<\/span><\/li>\n <\/ul>\n <div class=\"box-blue\">\n <div class=\"box-blue-lbl\">\ud83d\udccc Constitutional Basis<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\u2696\ufe0f<\/span><span><strong>Article 150:<\/strong> Accounts of the Union and States to be kept in such form as the President may, on advice of the C&AG, prescribe.<\/span><\/li>\n <li><span class=\"bi\">\u2696\ufe0f<\/span><span><strong>Article 283(1):<\/strong> Custody of the Consolidated Fund of India, the Contingency Fund of India, and payment of moneys into or withdrawal from such funds to be regulated by law made by Parliament.<\/span><\/li>\n <\/ul>\n <\/div>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"r8\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 8<\/span>\n <span class=\"rule-title\">Moneys into Public Account \u2014 Article 284 and Court Moneys<\/span>\n <\/div>\n <div class=\"sec-h\">Sub-rule (1) \u2014 Non-Revenue Moneys Received by Officers<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\u2696\ufe0f<\/span><span>Under <strong>Article 284<\/strong> of the Constitution, all moneys received by or deposited with any officer employed in connection with the affairs of the Union \u2014 <em>other than revenues or public moneys raised or received by Government<\/em> \u2014 shall be <strong>paid into the Public Account<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83c\udfdb\ufe0f<\/span><span>All moneys received by or deposited with the <strong>Supreme Court of India<\/strong>, or with any other Court <em>(other than a High Court)<\/em> within a <strong>Union Territory<\/strong>, shall also be dealt with similarly \u2014 paid into the Public Account.<\/span><\/li>\n <\/ul>\n <div class=\"sec-h\">Sub-rule (2) \u2014 Governing Rules<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccb<\/span><span>The head of account to which such moneys shall be credited and the procedure for withdrawal shall be governed by the:\n <ul class=\"blist-sub\">\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span><strong>Government Accounting Rules, 1990<\/strong>, and<\/span><\/li>\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span><strong>Central Government Account (Receipts and Payments) Rules, 1983<\/strong>, or such other general or special orders as may be issued in this behalf.<\/span><\/li>\n <\/ul>\n <\/span><\/li>\n <\/ul>\n <div class=\"box-amber\">\n <div class=\"box-amber-lbl\">\u2b50 Exam Point \u2014 Art. 284 vs Art. 266<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>Art. 266(1)<\/strong> \u2014 Consolidated Fund of India (revenues + loans raised by Govt).<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>Art. 266(2)<\/strong> \u2014 Public Account of India (moneys received on behalf of Govt, other than CF).<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>Art. 284<\/strong> \u2014 Non-revenue moneys received by officers \u2192 specifically directed to Public Account.<\/span><\/li>\n <\/ul>\n <\/div>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"r9\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 9<\/span>\n <span class=\"rule-title\">Duty of Department to Collect Receipts<\/span>\n <\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83c\udfdb\ufe0f<\/span><span>It is the <strong>duty of the Department of the Central Government<\/strong> concerned to ensure that the receipts and dues of the Government are:<\/span><\/li>\n <\/ul>\n <ul class=\"blist\" style=\"margin-left:30px;margin-top:8px\">\n <li><span class=\"bi\">1\ufe0f\u20e3<\/span><span><strong>Correctly assessed<\/strong><\/span><\/li>\n <li><span class=\"bi\">2\ufe0f\u20e3<\/span><span><strong>Promptly collected<\/strong><\/span><\/li>\n <li><span class=\"bi\">3\ufe0f\u20e3<\/span><span><strong>Duly credited<\/strong> to the Consolidated Fund or Public Account as the case may be.<\/span><\/li>\n <\/ul>\n <div class=\"box-red\">\n <span style=\"font-size:18px;flex-shrink:0;margin-top:2px\">\u26a0\ufe0f<\/span>\n <span><strong>Important:<\/strong> All three functions \u2014 assessment, collection and credit \u2014 are the department's responsibility. Failure in any one is a dereliction of duty.<\/span>\n <\/div>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"r10\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 10<\/span>\n <span class=\"rule-title\">Controlling Officer \u2014 Monthly Accounts and Reconciliation of Receipts<\/span>\n <\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udcca<\/span><span>The <strong>Controlling Officer<\/strong> shall arrange to obtain from his subordinate officers <strong>monthly accounts and returns<\/strong> in suitable form, claiming credit for the amounts paid into the treasury or bank.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udd04<\/span><span>He must <strong>compare these accounts with the statements of credits furnished by the Accounts Officer<\/strong> to verify that amounts reported as collected have been duly credited.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcc4<\/span><span>Each <strong>Accounts Officer<\/strong> shall send an extract from his accounts showing amounts brought to credit each month to the Controlling Officer concerned.<\/span><\/li>\n <\/ul>\n <div class=\"box-green\">\n <div class=\"box-green-lbl\">\ud83d\udccc Purpose<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\u2705<\/span><span>This monthly comparison ensures that <strong>all collections by subordinate officers are actually reaching the Government Account<\/strong> and are not being diverted or delayed.<\/span><\/li>\n <\/ul>\n <\/div>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"r11\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 11<\/span>\n <span class=\"rule-title\">Rules on Revenue Assessment and Receipt Books<\/span>\n <\/div>\n <div class=\"sec-h\">Sub-rule (1) \u2014 Departmental Regulations<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccb<\/span><span>Detailed rules and procedures regarding <strong>assessment, collection, allocation, remission and abandonment of revenue<\/strong> and other receipts shall be laid down in the <strong>regulations of the Department<\/strong> responsible for the same.<\/span><\/li>\n <\/ul>\n <div class=\"sec-h\">Sub-rule (2) \u2014 Receipt Books in Form GAR-6<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\uddc2\ufe0f<\/span><span>In departments where officers receive money on behalf of Government and issue receipts in <strong>Form GAR-6<\/strong>, the departmental regulations must provide for:\n <ul class=\"blist-sub\">\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span>Maintenance of a proper account of the <strong>receipt and issue of receipt books<\/strong>.<\/span><\/li>\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span>The number of receipt books to be <strong>issued at a time to each officer<\/strong>.<\/span><\/li>\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span>A check with the officer's accounts of the <strong>used books when returned<\/strong>.<\/span><\/li>\n <\/ul>\n <\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"r12\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 12<\/span>\n <span class=\"rule-title\">Outstanding Dues not to be Left Pending<\/span>\n <\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\u23f0<\/span><span>Amounts due to Government shall <strong>not be left outstanding without sufficient reasons<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccb<\/span><span>Where such amounts appear to be <strong>irrecoverable<\/strong>, the orders of the <strong>competent authority<\/strong> shall be obtained for their adjustment.<\/span><\/li>\n <\/ul>\n <div class=\"box-blue\">\n <div class=\"box-blue-lbl\">\ud83d\udccc Key Principle<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udca1<\/span><span>Outstanding dues are a risk of revenue loss. Officers must <strong>actively pursue collection<\/strong> and not let dues languish. If irrecoverable, formal orders are required before writing them off \u2014 unilateral abandonment is not permissible.<\/span><\/li>\n <\/ul>\n <\/div>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"r13\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 13<\/span>\n <span class=\"rule-title\">Credit Must Follow Actual Realisation \u2014 No Suspense Debit<\/span>\n <\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\u26d4<\/span><span>Unless specially authorised by any rule or order made by competent authority, <strong>no sums shall be credited as revenue by debit to a suspense head<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\u2705<\/span><span>The credit must <strong>follow and not precede<\/strong> actual realisation.<\/span><\/li>\n <\/ul>\n <div class=\"box-red\">\n <span style=\"font-size:18px;flex-shrink:0;margin-top:2px\">\u26a0\ufe0f<\/span>\n <span><strong>EXPLANATION:<\/strong> Crediting revenue before actual collection artificially inflates revenue figures and violates the basic accounting principle. Suspense heads are only temporary and must not be used to show unearned revenue.<\/span>\n <\/div>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"r14\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 14<\/span>\n <span class=\"rule-title\">Reporting of Revenue Collection Progress to Finance Ministry<\/span>\n <\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udcca<\/span><span>An <strong>Administrator or Head of a Department<\/strong> responsible for the collection of revenue shall <strong>keep the Finance Ministry fully informed<\/strong> of:\n <ul class=\"blist-sub\">\n <li><span class=\"bsi\">\ud83d\udcc8<\/span><span>The <strong>progress of collection of revenue<\/strong> under his control.<\/span><\/li>\n <li><span class=\"bsi\">\u26a0\ufe0f<\/span><span>All <strong>important variations<\/strong> in such collections as compared with the Budget Estimates.<\/span><\/li>\n <\/ul>\n <\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccb<\/span><span>This is subject to any general or special orders issued by the Department of the Central Government concerned.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"r15\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 15<\/span>\n <span class=\"rule-title\">Rents of Government Buildings and Lands<\/span>\n <\/div>\n <div class=\"sec-h\">Sub-rule (1) \u2014 Responsibility<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83c\udfe2<\/span><span>When the maintenance of any rentable building is entrusted to a civil department <em>(other than the Central Public Works Department)<\/em>, the <strong>Administrator or Head of Department concerned shall be responsible for the due recovery of rent<\/strong> thereof.<\/span><\/li>\n <\/ul>\n <div class=\"sec-h\">Sub-rule (2) \u2014 Procedure<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccb<\/span><span>The procedure for assessment and recovery of rent of any building hired out will be <strong>regulated generally by the rules applicable to buildings under the direct charge of CPWD<\/strong>.<\/span><\/li>\n <\/ul>\n <div class=\"sec-h\">Sub-rule (3) \u2014 Departmental Regulations<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udcc2<\/span><span>Detailed rules regarding <strong>demand and recovery of rent<\/strong> of Government buildings and lands are contained in the <strong>departmental regulations of the departments<\/strong> in charge of those buildings.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"r16\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 16<\/span>\n <span class=\"rule-title\">Fines \u2014 Realisation and Refund<\/span>\n <\/div>\n <div class=\"sec-h\">Sub-rule (1) \u2014 Realisation<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\u2696\ufe0f<\/span><span>Every authority having the power to <strong>impose and\/or realise a fine<\/strong> shall ensure that the money is:\n <ul class=\"blist-sub\">\n <li><span class=\"bsi\">\u2705<\/span><span><strong>Realised<\/strong><\/span><\/li>\n <li><span class=\"bsi\">\u2705<\/span><span><strong>Duly checked<\/strong><\/span><\/li>\n <li><span class=\"bsi\">\u2705<\/span><span><strong>Deposited into a treasury or bank<\/strong> as the case may be.<\/span><\/li>\n <\/ul>\n <\/span><\/li>\n <\/ul>\n <div class=\"sec-h\">Sub-rule (2) \u2014 Refunds<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\u26d4<\/span><span>Every authority having the power to <strong>refund fines<\/strong> shall ensure that:\n <ul class=\"blist-sub\">\n <li><span class=\"bsi\">\ud83d\udeab<\/span><span>No <strong>double refunds<\/strong> of amounts of fines collected are made.<\/span><\/li>\n <li><span class=\"bsi\">\ud83d\udeab<\/span><span>No refunds of fines <strong>not actually paid into a treasury or bank<\/strong> are made.<\/span><\/li>\n <\/ul>\n <\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"r17\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 17<\/span>\n <span class=\"rule-title\">Miscellaneous Demands<\/span>\n <\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udc40<\/span><span><strong>Accounts Officers<\/strong> shall watch the realisation of <strong>miscellaneous demands of Government<\/strong> not falling under the ordinary revenue administration.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccb<\/span><span>Examples include contributions from:\n <ul class=\"blist-sub\">\n <li><span class=\"bsi\">\ud83c\udfdb\ufe0f<\/span><span><strong>State Governments<\/strong><\/span><\/li>\n <li><span class=\"bsi\">\ud83c\udfd9\ufe0f<\/span><span><strong>Local Funds<\/strong><\/span><\/li>\n <li><span class=\"bsi\">\ud83c\udfd7\ufe0f<\/span><span><strong>Contractors<\/strong> and others towards <strong>establishment charges<\/strong><\/span><\/li>\n <\/ul>\n <\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"r18\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 18<\/span>\n <span class=\"rule-title\">Remission of Revenue<\/span>\n <\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\u26d4<\/span><span>A claim to revenue shall <strong>not be remitted or abandoned<\/strong> save with the <strong>sanction of the competent authority<\/strong>.<\/span><\/li>\n <\/ul>\n <div class=\"box-blue\">\n <div class=\"box-blue-lbl\">\ud83d\udccc Key Point<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udca1<\/span><span>Every rupee of Government revenue is public money. No officer can waive a Government's claim to revenue on his own \u2014 formal sanction from the authority empowered to remit is always required.<\/span><\/li>\n <\/ul>\n <\/div>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"r19\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 19<\/span>\n <span class=\"rule-title\">Annual Statement of Remissions of Revenue<\/span>\n <\/div>\n <div class=\"sec-h\">Sub-rule (1) \u2014 Annual Submission<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udcc5<\/span><span>Administrators and Heads of Departments <em>(other than those in the Department of Posts)<\/em> shall submit annually on <strong>1st June<\/strong> to the <strong>Audit Officer and Accounts Officer<\/strong> concerned, statements showing:\n <ul class=\"blist-sub\">\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span>Remissions of revenue and abandonments of claims to revenue <strong>sanctioned during the preceding year<\/strong> by competent authorities.<\/span><\/li>\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span>Exercised otherwise than by law or rule having the force of law.<\/span><\/li>\n <\/ul>\n <\/span><\/li>\n <li><span class=\"bi\">\ud83d\udca1<\/span><span><strong>Threshold:<\/strong> Individual remissions below <strong>\u20b91,000<\/strong> need not be included in the statements. <span class=\"tag-amber\">\u2b50 \u20b91,000 limit<\/span><\/span><\/li>\n <\/ul>\n <div class=\"sec-h\">Sub-rule (2) \u2014 Classification in the Statement<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccb<\/span><span>Remissions and abandonments should be <strong>classified broadly with reference to the grounds<\/strong> on which they were sanctioned.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcca<\/span><span>A <strong>total figure<\/strong> should be given for each class, with a <strong>brief explanation of circumstances<\/strong> leading to the remission for each class.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"r20\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 20<\/span>\n <span class=\"rule-title\">Departmental Rules on Remissions and Abandonments<\/span>\n <\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccb<\/span><span>Departments of the Central Government and Administrators may make rules <strong>defining remissions and abandonments of revenue<\/strong> for the purpose of Rule 19.<\/span><\/li>\n <\/ul>\n <\/div>\n\n \n <div style=\"background:#e8f0ff;border-left:5px solid #1a3a6b;padding:10px 18px;border-radius:0 6px 6px 0;margin:44px 0 10px;font-weight:700;color:#1a3a6b;font-size:14px;letter-spacing:.04em;text-transform:uppercase\">Section I \u2014 General Principles Relating to Expenditure and Payment of Money (Rules 21\u201332)<\/div>\n\n \n <div class=\"rule-div\" style=\"margin-top:8px\"><\/div>\n <div class=\"rule-block\" id=\"r21\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 21<\/span>\n <span class=\"rule-title\">Standards of Financial Propriety<\/span>\n <\/div>\n <p style=\"margin-bottom:14px;color:#444;font-size:15px\">Every officer incurring or authorising expenditure from public moneys should be guided by high standards of financial propriety and enforce financial order, strict economy, and compliance with all financial rules. The following <strong>four principles<\/strong> are specifically emphasised:<\/p>\n\n <div class=\"sec-h\">Principle I \u2014 Ordinary Prudence Standard<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udca1<\/span><span>Every officer is expected to exercise <strong>the same vigilance in respect of expenditure from public moneys as a person of ordinary prudence would exercise in respect of his own money<\/strong>.<\/span><\/li>\n <\/ul>\n\n <div class=\"sec-h\">Principle II \u2014 No Excess over Occasion<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udcb8<\/span><span>The expenditure should <strong>not be prima facie more than the occasion demands<\/strong>. Economy and proportionality are the watchwords.<\/span><\/li>\n <\/ul>\n\n <div class=\"sec-h\">Principle III \u2014 No Self-Benefit in Sanction<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\u26d4<\/span><span>No authority should exercise its powers of sanctioning expenditure to pass an order which will be <strong>directly or indirectly to its own advantage<\/strong>. No one shall be a judge in his own cause.<\/span><\/li>\n <\/ul>\n\n <div class=\"sec-h\">Principle IV \u2014 No Expenditure for Particular Person or Section<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udeab<\/span><span>Expenditure from public moneys should <strong>not be incurred for the benefit of a particular person or a section of the people<\/strong>, unless \u2014\n <ul class=\"blist-sub\">\n <li><span class=\"bsi\">\u2705<\/span><span><strong>(a)<\/strong> A claim for the amount could be <strong>enforced in a Court of Law<\/strong>, or<\/span><\/li>\n <li><span class=\"bsi\">\u2705<\/span><span><strong>(b)<\/strong> The expenditure is in pursuance of a <strong>recognised policy or custom<\/strong>.<\/span><\/li>\n <\/ul>\n <\/span><\/li>\n <\/ul>\n\n <div class=\"box-amber\">\n <div class=\"box-amber-lbl\">\u2b50 Note \u2014 Rule 21 vs. \"5 Canons\"<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\u26a0\ufe0f<\/span><span>GFR Rule 21 as enacted prescribes <strong>4 principles<\/strong> (not 5). The oft-cited \"5 Canons\" including \"No Loss of Interest\" is a popular study shorthand \u2014 but in the actual GFR text Rule 21 lists only the four principles above. Principle IV contains important <strong>two exceptions<\/strong> (court-enforceable or recognised policy) which are frequently tested.<\/span><\/li>\n <\/ul>\n <\/div>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"r22\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 22<\/span>\n <span class=\"rule-title\">Expenditure from Public Funds \u2014 Sanction is Mandatory<\/span>\n <\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\u26d4<\/span><span>No authority may <strong>incur any expenditure<\/strong> or enter into any liability involving expenditure or <strong>transfer of moneys for investment or deposit<\/strong> from public funds (Consolidated Fund \/ Contingency Fund \/ Public Accounts) unless the same has been <strong>sanctioned by a competent authority<\/strong>.<\/span><\/li>\n <\/ul>\n <div class=\"box-red\">\n <span style=\"font-size:18px;flex-shrink:0;margin-top:2px\">\u26a0\ufe0f<\/span>\n <span>This rule covers all three components of the Government Account \u2014 <strong>Consolidated Fund, Contingency Fund, and Public Account<\/strong>. Sanction is required across all three; no exception exists for moneys in the Public Account.<\/span>\n <\/div>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"r23\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 23<\/span>\n <span class=\"rule-title\">Delegation of Financial Powers<\/span>\n <\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccb<\/span><span>The financial powers of the Government have been delegated to various subordinate authorities vide the <strong>Delegation of Financial Powers Rules (DFPR)<\/strong>, as amended from time to time.<\/span><\/li>\n <li><span class=\"bi\">\ud83c\udfdb\ufe0f<\/span><span>The financial powers of the Government which have <strong>not been delegated<\/strong> to a subordinate authority shall <strong>vest in the Finance Ministry<\/strong>.<\/span><\/li>\n <\/ul>\n <div class=\"box-blue\">\n <div class=\"box-blue-lbl\">\ud83d\udccc Residual Powers<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udca1<\/span><span>DFPR creates the <strong>hierarchy of financial authority<\/strong>. Any power not explicitly delegated by DFPR flows upward to the Ministry of Finance. No vacuum exists in financial authority.<\/span><\/li>\n <\/ul>\n <\/div>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"r24\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 24<\/span>\n <span class=\"rule-title\">Consultation with Financial Advisers<\/span>\n <\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83e\udd1d<\/span><span>All <strong>draft memoranda<\/strong> for the following committees\/bodies shall be circulated by the Ministry or Department concerned <strong>after consultation with the Financial Adviser<\/strong> of that Ministry or Department:\n <ul class=\"blist-sub\">\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span><strong>Expenditure Finance Committee (EFC)<\/strong><\/span><\/li>\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span><strong>Public Investment Bureau (PIB)<\/strong><\/span><\/li>\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span><strong>Committee on Establishment Expenditure (CEE)<\/strong><\/span><\/li>\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span><strong>Cabinet Committee for Economic Affairs (CCEA)<\/strong><\/span><\/li>\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span><strong>Cabinet<\/strong><\/span><\/li>\n <\/ul>\n <\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcdd<\/span><span>A <strong>confirmation to this effect<\/strong> (that FA consultation has been done) shall be included in the draft memorandum at the <strong>circulation stage<\/strong>. <span class=\"tag-red\">\u2757 Exam point<\/span><\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"r25\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 25<\/span>\n <span class=\"rule-title\">Provision of Funds for Sanction<\/span>\n <\/div>\n <div class=\"sec-h\">Sub-rule (1) \u2014 Source to be Indicated<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccb<\/span><span>All sanctions to expenditure shall <strong>indicate the details of the provision in the relevant grant or appropriation<\/strong> wherefrom such expenditure is to be met.<\/span><\/li>\n <\/ul>\n <div class=\"sec-h\">Sub-rule (2) \u2014 Valid Appropriation Required<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udcca<\/span><span>All proposals for sanction to expenditure shall indicate whether such expenditure can be met by <strong>valid appropriation or re-appropriation<\/strong>.<\/span><\/li>\n <\/ul>\n <div class=\"sec-h\">Sub-rule (3) \u2014 Sanction Before Funds are Communicated<\/div>\n <div class=\"box-amber\">\n <div class=\"box-amber-lbl\">\u26a0\ufe0f Important Provision<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\u26a1<\/span><span>Where it becomes necessary to issue a sanction <strong>before funds are communicated<\/strong>, the sanction should specify that such expenditure is <strong>subject to funds being communicated in the budget of the year<\/strong>.<\/span><\/li>\n <\/ul>\n <\/div>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"r26\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 26<\/span>\n <span class=\"rule-title\">Responsibilities of the Controlling Officer in Respect of Budget Allocation<\/span>\n <\/div>\n <p style=\"margin-bottom:13px;color:#444;font-size:15px\">The Controlling Officer must ensure <strong>four things<\/strong> in respect of funds placed at his disposal:<\/p>\n <ul class=\"blist\">\n <li><span class=\"bi\">1\ufe0f\u20e3<\/span><span>That the <strong>expenditure does not exceed the budget allocation<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">2\ufe0f\u20e3<\/span><span>That the expenditure is <strong>incurred for the purpose for which funds have been provided<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">3\ufe0f\u20e3<\/span><span>That the expenditure is <strong>incurred in public interest<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">4\ufe0f\u20e3<\/span><span>That <strong>adequate control mechanisms are functioning<\/strong> in his Department for:\n <ul class=\"blist-sub\">\n <li><span class=\"bsi\">\ud83d\udd0d<\/span><span><strong>Prevention and detection of errors and irregularities<\/strong> in financial proceedings of subordinate offices.<\/span><\/li>\n <li><span class=\"bsi\">\ud83d\udee1\ufe0f<\/span><span>To guard against <strong>waste and loss of public money<\/strong>.<\/span><\/li>\n <\/ul>\n <\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"r27\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 27<\/span>\n <span class=\"rule-title\">Date of Effect of Sanction<\/span>\n <\/div>\n <div class=\"sec-h\">Sub-rule (1) \u2014 Comes into Force from Date of Issue<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udcc5<\/span><span>Subject to fulfillment of the provisions of DFPR, all rules, sanctions or orders shall <strong>come into force from the date of issue<\/strong>, unless any other date from which they shall come into force is specified therein.<\/span><\/li>\n <\/ul>\n <div class=\"sec-h\">Sub-rule (2) \u2014 Date of Creation for Temporary Posts<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udcdd<\/span><span>Orders sanctioning the creation of a <strong>temporary post<\/strong> should, in addition to the sanctioned duration, <strong>invariably specify the date from which it is to be created<\/strong>.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"r28\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 28<\/span>\n <span class=\"rule-title\">Powers in regard to Certain Special Matters<\/span>\n <\/div>\n <p style=\"margin-bottom:13px;color:#444;font-size:15px\">Except in pursuance of the general delegation made by, or with the approval of the President, a subordinate authority shall <strong>not<\/strong>, without the <strong>previous consent of the Finance Ministry<\/strong>, issue an order which involves:<\/p>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83c\udfde\ufe0f<\/span><span><strong>(i)<\/strong> Any <strong>grant of land, or assignment of revenue<\/strong>, or concession, grant, lease or licence of <strong>mineral or forest rights, or rights to water, power<\/strong> or any easement or privilege of such concessions, or<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcb8<\/span><span><strong>(ii)<\/strong> <strong>Relinquishment of revenue<\/strong> in any way.<\/span><\/li>\n <\/ul>\n <div class=\"box-red\">\n <span style=\"font-size:18px;flex-shrink:0;margin-top:2px\">\u26a0\ufe0f<\/span>\n <span><strong>Both categories require prior Finance Ministry consent.<\/strong> This rule safeguards against subordinate authorities alienating Government's valuable rights in land, revenue and natural resources without MoF oversight.<\/span>\n <\/div>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"r29\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 29<\/span>\n <span class=\"rule-title\">Procedure for Communication of Sanctions<\/span>\n <\/div>\n <p style=\"margin-bottom:13px;color:#444;font-size:15px\">All financial sanctions and orders issued by a competent authority <strong>shall be communicated to the Audit Officer and the Accounts Officer<\/strong>. The procedure is detailed in twelve sub-clauses, the key ones being:<\/p>\n\n <div class=\"sec-h\">Key Sub-clauses<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udd39<\/span><span><strong>(i)<\/strong> Sanctions relating to a <strong>matter concerning the Department proper<\/strong>, on the basis of which payment is to be made or authorised by the Accounts Officer \u2014 should be <strong>addressed to the Accounts Officer<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udd39<\/span><span><strong>(ii)<\/strong> <strong>All other sanctions<\/strong> should be accorded in the form of an Order \u2014 a copy thereof should be endorsed to the Accounts Officer concerned.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udd39<\/span><span><strong>(iii)<\/strong> For <strong>non-recurring expenditure<\/strong>, the sanctioning authority may accord sanction by <strong>signing or countersigning the bill or voucher<\/strong> instead of a separate sanction letter.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udd39<\/span><span><strong>(vi)<\/strong> All orders conveying sanctions to expenditure of a definite amount shall <strong>express the amount both in words and figures<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udd39<\/span><span><strong>(xi)<\/strong> Copies of all sanctions\/orders shall be endorsed to Audit Officers, <em>except<\/em> the following categories (which need not be sent to audit):\n <ul class=\"blist-sub\">\n <li><span class=\"bsi\">\ud83d\udeab<\/span><span>Advances to Central Govt. employees<\/span><\/li>\n <li><span class=\"bsi\">\ud83d\udeab<\/span><span>Appointment, promotion or transfer of Gazetted\/Non-Gazetted officers<\/span><\/li>\n <li><span class=\"bsi\">\ud83d\udeab<\/span><span>Creation, continuation or abolition of posts<\/span><\/li>\n <li><span class=\"bsi\">\ud83d\udeab<\/span><span>Handing over\/taking over charge<\/span><\/li>\n <li><span class=\"bsi\">\ud83d\udeab<\/span><span>GPF advances to Government servants<\/span><\/li>\n <li><span class=\"bsi\">\ud83d\udeab<\/span><span>Contingent expenditure under powers of Head of Office<\/span><\/li>\n <li><span class=\"bsi\">\ud83d\udeab<\/span><span>Other routine sanctions by Heads of Subordinate Officers<\/span><\/li>\n <\/ul>\n <\/span><\/li>\n <\/ul>\n <div class=\"box-green\">\n <div class=\"box-green-lbl\">\ud83d\udccc Special Rule for Union Territory Sanctions<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83c\udfdb\ufe0f<\/span><span>Orders issued by a Department of a Union Territory Government where Audit and Accounts <strong>have not been separated<\/strong> \u2192 communicated directly to the Audit authority. Where <strong>separated<\/strong> \u2192 copies endorsed to Audit authorities.<\/span><\/li>\n <\/ul>\n <\/div>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"r30\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 30<\/span>\n <span class=\"rule-title\">Lapse of Sanctions<\/span>\n <\/div>\n <div class=\"sec-h\">General Rule<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\u23f0<\/span><span>A sanction for any <strong>fresh charge<\/strong> shall, unless specifically renewed, <strong>lapse if no payment has been made<\/strong> (in whole or in part) during a period of <strong>twelve months<\/strong> from the date of issue. <span class=\"tag-red\">\u2757 12 months<\/span><\/span><\/li>\n <\/ul>\n <div class=\"sec-h\">Three Provisos \u2014 Exceptions<\/div>\n <div class=\"box-green\">\n <div class=\"box-green-lbl\">\u2705 When Sanctions Do NOT Lapse as per General Rule<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">1\ufe0f\u20e3<\/span><span><strong>Proviso (i):<\/strong> When the <strong>period of currency of the sanction is prescribed<\/strong> in departmental regulations or specified in the sanction itself \u2014 it lapses on the expiry of such period (not after 12 months).<\/span><\/li>\n <li><span class=\"bi\">2\ufe0f\u20e3<\/span><span><strong>Proviso (ii):<\/strong> When there is a <strong>specific provision<\/strong> in the sanction that expenditure would be met from the budget provision of a <strong>specified financial year<\/strong> \u2014 it lapses at the close of that financial year.<\/span><\/li>\n <li><span class=\"bi\">3\ufe0f\u20e3<\/span><span><strong>Proviso (iii) \u2014 Stores Purchase:<\/strong> A sanction shall <strong>not lapse<\/strong> if, in the case of purchase of stores, <strong>tenders have been accepted<\/strong> (for local\/direct purchase) or <strong>the indent has been placed<\/strong> (for Central Purchases) within the one-year period \u2014 even if actual payment has not been made.<\/span><\/li>\n <\/ul>\n <\/div>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"r31\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 31<\/span>\n <span class=\"rule-title\">Non-Lapsing of Certain Sanctions<\/span>\n <\/div>\n <p style=\"margin-bottom:13px;color:#444;font-size:15px\">Notwithstanding Rule 30, the following sanctions shall <strong>not lapse<\/strong>:<\/p>\n <ul class=\"blist\">\n <li><span class=\"bi\">\u2705<\/span><span>A sanction in respect of an <strong>addition to a permanent establishment made from year to year under a general scheme<\/strong> by a competent authority.<\/span><\/li>\n <li><span class=\"bi\">\u2705<\/span><span>A sanction in respect of an <strong>allowance sanctioned for a post or for a class of Government servants<\/strong> but not drawn by the officer(s) concerned.<\/span><\/li>\n <\/ul>\n <div class=\"box-blue\">\n <div class=\"box-blue-lbl\">\ud83d\udccc Rationale<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udca1<\/span><span>These recurring or structural sanctions are not \"fresh charges\" \u2014 they are ongoing obligations. Requiring their annual renewal would create unnecessary administrative burden. Hence they are exempted from the lapse rule.<\/span><\/li>\n <\/ul>\n <\/div>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"r32\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 32<\/span>\n <span class=\"rule-title\">Remission of Disallowances and Write-Off of Overpayments<\/span>\n <\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccb<\/span><span>The <strong>remission of disallowances by Audit<\/strong> and <strong>writing off of overpayments made to Government servants<\/strong> by competent authorities shall be in accordance with the provisions of the <strong>Delegation of Financial Powers Rules<\/strong> and instructions issued thereunder.<\/span><\/li>\n <\/ul>\n <\/div>\n\n \n <div style=\"background:#f0faf5;border-left:5px solid #2aab6e;padding:10px 18px;border-radius:0 6px 6px 0;margin:44px 0 10px;font-weight:700;color:#1a6b5a;font-size:14px;letter-spacing:.04em;text-transform:uppercase\">Section II \u2014 Defalcation and Losses (Rules 33\u201338)<\/div>\n\n \n <div class=\"rule-div\" style=\"margin-top:8px\"><\/div>\n <div class=\"rule-block\" id=\"r33\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 33<\/span>\n <span class=\"rule-title\">Report of Losses \u2014 Seven Sub-rules<\/span>\n <\/div>\n\n <div class=\"sec-h\">Sub-rule (1) \u2014 Mandatory Immediate Reporting<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udea8<\/span><span>Any loss or shortage of <strong>public moneys, departmental revenue, stamps, opium, stores or other Government property<\/strong> \u2014 irrespective of the cause of loss and manner of detection \u2014 shall be <strong>immediately reported<\/strong> by the subordinate authority to:\n <ul class=\"blist-sub\">\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span>The <strong>next higher authority<\/strong><\/span><\/li>\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span>The <strong>Statutory Audit Officer<\/strong><\/span><\/li>\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span>The concerned <strong>Principal Accounts Officer<\/strong><\/span><\/li>\n <\/ul>\n <\/span><\/li>\n <li><span class=\"bi\">\u2705<\/span><span>Reporting is required <strong>even when the loss has been made good<\/strong> by the party responsible for it.<\/span><\/li>\n <\/ul>\n <div class=\"box-green\">\n <div class=\"box-green-lbl\">\u2705 Two Categories of Losses Exempted from Reporting<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">1\ufe0f\u20e3<\/span><span><strong>Revenue assessment errors:<\/strong> (a) Mistakes discovered too late for supplementary claim; (b) Under-assessments overruled by higher authority after the time-limit under law has expired; (c) Refunds allowed on the ground that claims were time-barred.<\/span><\/li>\n <li><span class=\"bi\">2\ufe0f\u20e3<\/span><span><strong>Petty losses<\/strong> of value <strong>not exceeding \u20b910,000<\/strong>. <span class=\"tag-amber\">\u2b50 \u20b910,000 limit<\/span><\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"sec-h\">Sub-rule (2) \u2014 Serious Irregularities<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\u26a0\ufe0f<\/span><span>Cases involving <strong>serious irregularities<\/strong> shall also be brought to the notice of:\n <ul class=\"blist-sub\">\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span><strong>Financial Adviser or Chief Accounting Authority<\/strong> of the Ministry or Department<\/span><\/li>\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span><strong>Controller General of Accounts, Ministry of Finance<\/strong><\/span><\/li>\n <\/ul>\n <\/span><\/li>\n <\/ul>\n\n <div class=\"sec-h\">Sub-rule (3) \u2014 Two-Stage Reporting<\/div>\n <div class=\"box-blue\">\n <div class=\"box-blue-lbl\">\u26a0\ufe0f Initial Report + Final Report \u2014 Both Mandatory<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">1\ufe0f\u20e3<\/span><span><strong>Initial Report:<\/strong> Made as soon as a <strong>suspicion arises<\/strong> that a loss has taken place \u2014 no need to wait for confirmation.<\/span><\/li>\n <li><span class=\"bi\">2\ufe0f\u20e3<\/span><span><strong>Final Report:<\/strong> Sent after <strong>investigation<\/strong> indicating \u2014 nature and extent of loss, errors or neglect of rules which caused the loss, and <strong>prospects of recovery<\/strong>.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"sec-h\">Sub-rule (4) \u2014 Channel of Report and Disposal<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udd04<\/span><span>The complete report shall reach through proper channels to the <strong>Head of Department<\/strong>, who shall finally dispose of it under his delegated powers.<\/span><\/li>\n <li><span class=\"bi\">\ud83c\udfdb\ufe0f<\/span><span>Reports which he <strong>cannot finally dispose of<\/strong> under his delegated powers shall be submitted to the <strong>Finance Ministry<\/strong>.<\/span><\/li>\n <\/ul>\n\n <div class=\"sec-h\">Sub-rule (5) \u2014 Redrawal Pending Investigation<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udcb0<\/span><span>An amount lost through <strong>misappropriation, defalcation, embezzlement etc.<\/strong> may be <strong>redrawn on a simple receipt<\/strong> pending investigation, recovery or write-off \u2014 with the approval of the <strong>authority competent to write-off<\/strong> the loss in question.<\/span><\/li>\n <\/ul>\n\n <div class=\"sec-h\">Sub-rule (6) \u2014 Which Government Bears the Loss<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83c\udfdb\ufe0f<\/span><span>In cases of loss due to culpability of Government servants, the loss should be <strong>borne by the Central Govt. Department or State Govt. concerned<\/strong> with the transaction.<\/span><\/li>\n <li><span class=\"bi\">\u2705<\/span><span>If any recoveries are made from the erring official in cash, the receipt will be <strong>credited back to the Government that sustained the loss<\/strong>.<\/span><\/li>\n <\/ul>\n\n <div class=\"sec-h\">Sub-rule (7) \u2014 Irregular Cheques \/ Accounting of Receipts<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udcc4<\/span><span>All cases involving loss from <strong>erroneous or irregular issue of cheques<\/strong> or <strong>irregular accounting of receipts<\/strong> shall be reported to the <strong>Controller General of Accounts<\/strong> along with the circumstances \u2014 so that defects in rules or procedures can be remedied.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"r34\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 34<\/span>\n <span class=\"rule-title\">Loss of Government Property due to Fire, Theft, Fraud<\/span>\n <\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udd25<\/span><span>Departmental Officers shall, in addition to taking action under Rule 33, follow the provisions below in cases involving <strong>material loss or destruction of Government property<\/strong> as a result of fire, theft, fraud, etc.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\ude94<\/span><span>All losses <strong>above \u20b950,000<\/strong> due to suspected fire, theft, fraud, etc., shall be <strong>invariably reported to the Police<\/strong> for investigation as early as possible. <span class=\"tag-red\">\u2757 \u20b950,000 threshold for Police<\/span><\/span><\/li>\n <li><span class=\"bi\">\ud83e\udd1d<\/span><span>Once the matter is reported to the Police, all concerned must <strong>assist the Police in their investigation<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccb<\/span><span>A <strong>formal investigation report shall be obtained from the Police Authorities<\/strong> in all cases referred to them.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"r35\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 35<\/span>\n <span class=\"rule-title\">Loss of Immovable Property by Fire, Flood, Natural Causes<\/span>\n <\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83c\udf2a\ufe0f<\/span><span>All loss of <strong>immovable property exceeding \u20b950,000<\/strong> \u2014 such as buildings, communications, or other works \u2014 caused by <strong>fire, flood, cyclone, earthquake or any other natural cause<\/strong> \u2014 shall be <strong>reported at once<\/strong> by the subordinate authority to Government through the usual channel. <span class=\"tag-red\">\u2757 \u20b950,000 threshold<\/span><\/span><\/li>\n <li><span class=\"bi\">\ud83d\udce2<\/span><span>All <strong>other losses<\/strong> (below \u20b950,000) should be <strong>immediately brought to the notice of the next higher authority<\/strong>.<\/span><\/li>\n <\/ul>\n <div class=\"box-amber\">\n <div class=\"box-amber-lbl\">\u2b50 Rules 34 vs 35 \u2014 Key Distinction<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udd25<\/span><span><strong>Rule 34:<\/strong> Loss of <strong>movable Government property<\/strong> due to fire\/theft\/fraud \u2192 Police report (above \u20b950,000).<\/span><\/li>\n <li><span class=\"bi\">\ud83c\udfe2<\/span><span><strong>Rule 35:<\/strong> Loss of <strong>immovable property<\/strong> due to natural causes \u2192 Report to Government through usual channel (above \u20b950,000).<\/span><\/li>\n <\/ul>\n <\/div>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"r36\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 36<\/span>\n <span class=\"rule-title\">Detailed Report to Audit and Accounts Officers<\/span>\n <\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udd0e<\/span><span>After a <strong>full enquiry<\/strong> into the cause and extent of the loss has been made, the <strong>detailed report<\/strong> should be sent by the subordinate authority concerned to Government through the proper channel.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcec<\/span><span>A <strong>copy of the report or an abstract thereof<\/strong> shall be <strong>simultaneously forwarded<\/strong> to the <strong>Audit Officer<\/strong> and the <strong>Pay and Accounts Officer<\/strong>.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"r37\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 37<\/span>\n <span class=\"rule-title\">Responsibility for Losses<\/span>\n <\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udc64<\/span><span>An officer shall be held <strong>personally responsible<\/strong> for any loss sustained by the Government through <strong>fraud or negligence on his own part<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udd17<\/span><span>He shall also be held <strong>personally responsible for any loss arising from fraud or negligence of any other officer<\/strong> to the extent to which it may be shown that <strong>he contributed to the loss<\/strong> by his own action or negligence.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccb<\/span><span>Departmental proceedings for assessment of responsibility shall be conducted according to the instructions contained in <strong>Appendix 1<\/strong> and those issued by the <strong>Ministry of Personnel<\/strong> from time to time.<\/span><\/li>\n <\/ul>\n <div class=\"box-red\">\n <span style=\"font-size:18px;flex-shrink:0;margin-top:2px\">\u26a0\ufe0f<\/span>\n <span><strong>Contributory Liability:<\/strong> Even if an officer did not personally commit the fraud or negligence, he is liable if it can be shown he contributed to the loss by his inaction or failure of supervision. There is no escape from supervisory responsibility.<\/span>\n <\/div>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"r38\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 38<\/span>\n <span class=\"rule-title\">Prompt Disposal of Cases of Loss<\/span>\n <\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\u26a1<\/span><span>Action at <strong>each stage<\/strong> of detection, reporting, write-off, and final disposal shall be completed <strong>promptly<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udc6e<\/span><span><strong>Special attention<\/strong> must be given to:\n <ul class=\"blist-sub\">\n <li><span class=\"bsi\">\u2696\ufe0f<\/span><span>Action against <strong>delinquents<\/strong>.<\/span><\/li>\n <li><span class=\"bsi\">\ud83d\udee1\ufe0f<\/span><span><strong>Remedial measures<\/strong> taken to strengthen the control system.<\/span><\/li>\n <\/ul>\n <\/span><\/li>\n <\/ul>\n <\/div>\n\n \n <div style=\"background:#fffbe6;border-left:5px solid #c9a227;padding:10px 18px;border-radius:0 6px 6px 0;margin:44px 0 10px;font-weight:700;color:#7a5500;font-size:14px;letter-spacing:.04em;text-transform:uppercase\">Section III \u2014 Submission of Records and Information (Rules 39\u201341)<\/div>\n\n \n <div class=\"rule-div\" style=\"margin-top:8px\"><\/div>\n <div class=\"rule-block\" id=\"r39\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 39<\/span>\n <span class=\"rule-title\">Demand for Information by Audit or Accounts Officer<\/span>\n <\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83e\udd1d<\/span><span>A subordinate authority shall <strong>afford all reasonable facilities<\/strong> to the <strong>Audit Officer<\/strong> and <strong>Pay and Accounts Officer<\/strong> for the discharge of his functions.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcc4<\/span><span>Shall furnish the <strong>fullest possible information<\/strong> required for:\n <ul class=\"blist-sub\">\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span>Preparation of any <strong>official account or report<\/strong><\/span><\/li>\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span><strong>Payments<\/strong><\/span><\/li>\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span><strong>Internal audit<\/strong><\/span><\/li>\n <\/ul>\n <\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"r40\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 40<\/span>\n <span class=\"rule-title\">Non-withholding of Documents from Audit<\/span>\n <\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\u26d4<\/span><span>A subordinate authority shall <strong>not withhold any information, books or other documents<\/strong> required by the <strong>Audit Officer or Accounts Officer<\/strong>.<\/span><\/li>\n <\/ul>\n <div class=\"box-red\">\n <span style=\"font-size:18px;flex-shrink:0;margin-top:2px\">\u26a0\ufe0f<\/span>\n <span><strong>Absolute obligation.<\/strong> There is no discretion here \u2014 withholding documents from audit is a serious misconduct and is actionable under the Conduct Rules. The only exception is for classified files, which are handled under Rule 41.<\/span>\n <\/div>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"r41\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 41<\/span>\n <span class=\"rule-title\">Secret and Top Secret Files<\/span>\n <\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udd12<\/span><span>If the contents of any file are categorised as <strong>'Secret' or 'Top Secret'<\/strong>, the file may be sent <strong>personally to the Head of the Audit Office<\/strong>, specifying this fact.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccb<\/span><span>The Head of the Audit Office will then deal with it in accordance with the <strong>standing instructions for handling and custody of such classified documents<\/strong>.<\/span><\/li>\n <\/ul>\n <div class=\"box-green\">\n <div class=\"box-green-lbl\">\ud83d\udccc Interaction with Rule 40<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udca1<\/span><span>Rule 41 <strong>does not override Rule 40<\/strong> \u2014 even classified files must be made available to the Head of Audit. The difference is only in the <em>manner<\/em> \u2014 they are sent personally and dealt with as per classified document procedures, not through normal channels.<\/span><\/li>\n <\/ul>\n <\/div>\n <\/div>\n\n <div class=\"box-amber\" style=\"margin-top:36px\">\n <div class=\"box-amber-lbl\">\u2b50 Numbers to Remember \u2014 Chapter 2<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>4 Principles<\/strong> of Financial Propriety (R.21) \u00b7 <strong>4 Duties<\/strong> of Controlling Officer (R.26)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>\u20b91,000<\/strong> \u2014 individual remissions below this excluded from annual statement (R.19)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>\u20b910,000<\/strong> \u2014 petty losses below this exempted from mandatory loss reporting (R.33)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>\u20b950,000<\/strong> \u2014 threshold for Police reporting (movable, R.34) and Govt. reporting (immovable, R.35)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>12 months<\/strong> \u2014 period after which sanction lapses if no payment made (R.30)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>1st June<\/strong> \u2014 annual statement of remissions to be submitted to Audit & Accounts Officer (R.19)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>5 bodies<\/strong> \u2014 draft memos for EFC \/ PIB \/ CEE \/ CCEA \/ Cabinet \u2192 FA consultation mandatory (R.24)<\/span><\/li>\n <\/ul>\n <\/div>\n <\/div>\n\n\n <div id=\"ch3\" class=\"ch-block\">\n\n <div class=\"ch-banner\">\n <div class=\"ch-num\">Chapter 3<\/div>\n <div class=\"ch-title\">Budget Formulation and Implementation<\/div>\n <div class=\"ch-range\">Rules 42 to 70 \u00b7 Two Sections: Budget Formulation \u00b7 Control of Expenditure Against Budget<\/div>\n <\/div>\n\n \n <div class=\"idx-outer\">\n <div class=\"idx-lbl\">Rules at a Glance<\/div>\n <table class=\"idx-table\">\n <thead><tr><th style=\"width:110px\">Rule No.<\/th><th>Rule Title<\/th><th>Key Point<\/th><\/tr><\/thead>\n <tbody>\n <tr><td colspan=\"3\" style=\"background:#f0f4ff;font-weight:700;color:#1a3a6b;font-size:12px;letter-spacing:.06em;text-transform:uppercase;padding:8px 14px\">Budget Formulation (Rules 42\u201356)<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 42<\/td><td class=\"r-title\">Financial Year<\/td><td class=\"r-key\">1 April \u2013 31 March<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 43<\/td><td class=\"r-title\">Presentation of Budget to Parliament<\/td><td class=\"r-key\">Art.112(1) \u00b7 Finance Minister lays AFS before both Houses \u00b7 Railway Budget merged w.e.f. 2017-18 \u00b7 Art.112\u2013116 governs \u00b7 MoF Budget Division issues guidelines<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 44<\/td><td class=\"r-title\">Contents of Budget<\/td><td class=\"r-key\">Revenue estimates \u00b7 Expenditure per programme\/scheme\/project \u00b7 Interest & debt servicing \u00b7 Any other prescribed information<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 45<\/td><td class=\"r-title\">Receipt Estimates<\/td><td class=\"r-key\">Prepared by estimating authority \u00b7 Major Head\u2013wise \u00b7 Break-up of Minor\/Sub\/Detailed heads \u00b7 Actuals of past 3 years \u00b7 Cogent reasons for major variations<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 46<\/td><td class=\"r-title\">Non-Tax Revenues<\/td><td class=\"r-key\">Collected through all Ministries\/Depts and autonomous bodies \u00b7 Tax revenues etc. managed by MoF departments<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 47<\/td><td class=\"r-title\">User Charges<\/td><td class=\"r-key\">Must recover current cost + reasonable return \u00b7 Deviations recorded with reasons \u00b7 Reviewed every 3 years \u00b7 Fixed through Rules\/Executive orders (not statute) wherever possible<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 48<\/td><td class=\"r-title\">Dividends and Profits<\/td><td class=\"r-key\">CPSEs must pay dividend promptly after AGM decision \u00b7 Ministry to monitor \u00b7 As per DIPAM guidelines<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 49<\/td><td class=\"r-title\">Receipts Portal (e-Receipts)<\/td><td class=\"r-key\">All Ministries\/Depts to migrate to e-Receipts \u00b7 Prompt credit to Government account<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 50<\/td><td class=\"r-title\">Expenditure Estimates<\/td><td class=\"r-key\">Charged vs Voted separated \u00b7 Revenue vs Capital separated \u00b7 Up to object head \u00b7 Scrutinised by FA \u2192 approved by Secretary \u2192 sent to Budget Division<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 51<\/td><td class=\"r-title\">Demands for Grants<\/td><td class=\"r-key\">Generally 1 DFG per Ministry \u00b7 Main DFG by MoF Budget Division \u00b7 Detailed DFG by Ministry before DRSC<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 52<\/td><td class=\"r-title\">Form of AFS and DFG<\/td><td class=\"r-key\">Form prescribed by Finance Ministry \u00b7 No change without MoF approval \u00b7 Major head provisions in Detailed DFG must match Demands for Grants<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 53<\/td><td class=\"r-title\">Acceptance and Inclusion of Estimates<\/td><td class=\"r-key\">Scrutinised in Budget Division \u00b7 Secy (Expenditure) holds pre-budget meetings \u00b7 Final estimates incorporated in Budget documents<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 54<\/td><td class=\"r-title\">Outcome Budget<\/td><td class=\"r-key\">DoE + NITI Aayog + Ministry \u00b7 Links outlays to outputs\/outcomes \u00b7 Measurable\/quantitative terms \u00b7 Based on MTEF projections \u00b7 Performance determines continuation & allocation<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 55<\/td><td class=\"r-title\">Vote on Account<\/td><td class=\"r-key\">Pending Appropriation Bill \u2192 MoF obtains Vote on Account under Art.116 \u00b7 Not to be used for New Service<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 56<\/td><td class=\"r-title\">Communication of Grants<\/td><td class=\"r-key\">After Appropriation Bill \u2192 MoF communicates to Ministries \u2192 Ministries distribute to subordinate formations \u2192 also communicated to PAOs<\/td><\/tr>\n <tr><td colspan=\"3\" style=\"background:#e8f0ff;font-weight:700;color:#1a3a6b;font-size:12px;letter-spacing:.06em;text-transform:uppercase;padding:8px 14px\">Section II \u2014 Control of Expenditure Against Budget (Rules 57\u201370)<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 57<\/td><td class=\"r-title\">Responsibility for Control of Expenditure (8 sub-rules)<\/td><td class=\"r-key\">Dept responsible through HoDs\/COs\/DDOs \u00b7 Grant usable only in FY \u00b7 No excess without Supplementary Grant or CF Advance \u00b7 Monthly reconciliation: DDO\u2194PAO \u00b7 Quarterly certificate by 15th of 2nd month after quarter end \u00b7 GFR forms 5,6,7,8,9 maintained<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 58<\/td><td class=\"r-title\">Liability Register<\/td><td class=\"r-key\">CO to obtain liability statements in Form GFR 3-A monthly from October \u00b7 CO to maintain Liability Register in Form GFR 3<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 59<\/td><td class=\"r-title\">Estimating Savings or Excesses<\/td><td class=\"r-key\">HoD\/CO must be in position to estimate likelihood of savings or excesses every month<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 60<\/td><td class=\"r-title\">Disproportionate Expenditure<\/td><td class=\"r-key\">Accounts Officer reports to HoD on first appearance \u00b7 But ultimate responsibility rests with authority administering the grant<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 61<\/td><td class=\"r-title\">Excess Expenditure<\/td><td class=\"r-key\">PAO shall not allow payment in excess of Budget provisions without CAA's approval \u00b7 FA\/CAA must ensure funds available through Re-appropriation or SDG<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 62<\/td><td class=\"r-title\">Surrender of Savings<\/td><td class=\"r-key\">Surrender to Finance Ministry by prescribed dates \u00b7 Savings surrendered immediately on foresight \u00b7 No reserve for future excesses \u00b7 Rush of expenditure in closing months = breach of financial propriety \u00b7 FA to ensure adherence to Monthly & Quarterly Expenditure Plans<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 63<\/td><td class=\"r-title\">Expenditure on New Service<\/td><td class=\"r-key\">No expenditure on New Service unless Supplementary Grant or CF Advance obtained<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 64<\/td><td class=\"r-title\">Additional Allotment for Excess<\/td><td class=\"r-key\">Subordinate authority must get additional allotment before incurring excess \u00b7 Disbursing Officer cannot self-authorise excess \u00b7 Take orders of administrative authority \u2192 Re-appropriation or SDG or CF Advance<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 65<\/td><td class=\"r-title\">Re-appropriation of Funds<\/td><td class=\"r-key\">Between primary units within a grant \u00b7 Before close of FY \u00b7 Only from units with expected savings \u00b7 Not to create false savings with intent to restore \u00b7 Supported by Form GFR 1 \u00b7 Reasons for saving\/excess of \u20b91 lakh+ to be stated \u00b7 Copy to Accounts Officer<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 66<\/td><td class=\"r-title\">Supplementary Grants<\/td><td class=\"r-key\">If no savings within grant or New Service \u2014 Supplementary Grant under Art.115(1) before payment<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 67<\/td><td class=\"r-title\">Advance from Contingency Fund<\/td><td class=\"r-key\">Unforeseen expenditure + no time for Supplementary Demand \u00b7 Art.267(1) \u00b7 Also for excess over Vote on Account \u00b7 Procedure as per CF of India (Amendment) Rules, 2021<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 68<\/td><td class=\"r-title\">Inevitable Payments<\/td><td class=\"r-key\">Money indisputably payable shall not ordinarily be left unpaid \u00b7 Provision for anticipated liabilities must be in DFG<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 69<\/td><td class=\"r-title\">Pre-check of Bills<\/td><td class=\"r-key\">Appendix 10 contains procedure for Accounts Office check against provision of funds<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 70<\/td><td class=\"r-title\">Duties of Chief Accounting Authority (Secretary)<\/td><td class=\"r-key\">9 duties \u2014 financial management \u00b7 proper use of funds \u00b7 effective\/efficient\/economical use \u00b7 appear before PAC \u00b7 monitor programme performance \u00b7 expenditure statements \u00b7 internal controls \u00b7 procurement procedures \u00b7 collect dues & avoid unauthorised expenditure<\/td><\/tr>\n <\/tbody>\n <\/table>\n <\/div>\n\n \n <div style=\"background:#f0f4ff;border-left:5px solid #1a3a6b;padding:10px 18px;border-radius:0 6px 6px 0;margin:10px 0;font-weight:700;color:#1a3a6b;font-size:14px;letter-spacing:.04em;text-transform:uppercase\">Budget Formulation \u2014 Rules 42\u201356<\/div>\n\n \n <div class=\"rule-block\" id=\"ch3r42\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 42<\/span>\n <span class=\"rule-title\">Financial Year<\/span>\n <\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udcc5<\/span><span>The <strong>financial year of the Government<\/strong> shall commence on the <strong>1st day of April<\/strong> of each year and end on the <strong>31st day of March<\/strong> of the following year.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch3r43\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 43<\/span>\n <span class=\"rule-title\">Presentation of Budget to Parliament<\/span>\n <\/div>\n <div class=\"sec-h\">Sub-rule (1) \u2014 Annual Financial Statement<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83c\udfdb\ufe0f<\/span><span>In accordance with <strong>Article 112(1)<\/strong> of the Constitution, the <strong>Finance Minister<\/strong> shall arrange to lay before both the Houses of Parliament an <strong>Annual Financial Statement<\/strong> (also known as the 'Budget') showing the estimated receipts and expenditure of the Central Government in respect of a financial year, <strong>before the commencement of that year<\/strong>.<\/span><\/li>\n <\/ul>\n <div class=\"sec-h\">Sub-rule (2) \u2014 Merger of Railway Budget<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\ude82<\/span><span>The receipts and expenditure of the <strong>Railways<\/strong> (a departmental commercial organisation) form part of the Government's receipts and expenditure and are included in the Annual Financial Statement.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcc5<\/span><span>With the <strong>merger of Railway Budget with the General Budget<\/strong>, the Demands for Grants and the Statement of Budget Estimates of Railways shall be part of the General Budget <strong>with effect from 2017-18<\/strong>. <span class=\"tag-amber\">\u2b50 Exam point<\/span><\/span><\/li>\n <\/ul>\n <div class=\"sec-h\">Sub-rule (3) \u2014 Constitutional Provisions<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\u2696\ufe0f<\/span><span>The provisions for preparation, formulation and submission of budget to Parliament are contained in <strong>Articles 112 to 116<\/strong> of the Constitution of India.<\/span><\/li>\n <\/ul>\n <div class=\"sec-h\">Sub-rule (4) \u2014 MoF Budget Division Guidelines<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccb<\/span><span>The <strong>Ministry of Finance, Budget Division<\/strong> shall issue guidelines for preparation of budget estimates from time to time. All Ministries\/Departments shall <strong>comply in full<\/strong> with these guidelines.<\/span><\/li>\n <\/ul>\n <div class=\"box-blue\">\n <div class=\"box-blue-lbl\">\ud83d\udccc Constitutional Articles \u2014 Budget Quick Reference<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\u2696\ufe0f<\/span><span><strong>Art. 112<\/strong> \u2014 Annual Financial Statement (Budget) \u00b7 <strong>Art. 113<\/strong> \u2014 Procedure for Demands for Grants<\/span><\/li>\n <li><span class=\"bi\">\u2696\ufe0f<\/span><span><strong>Art. 114<\/strong> \u2014 Appropriation Bill \u00b7 <strong>Art. 115<\/strong> \u2014 Supplementary Grants \u00b7 <strong>Art. 116<\/strong> \u2014 Vote on Account<\/span><\/li>\n <\/ul>\n <\/div>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch3r44\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 44<\/span>\n <span class=\"rule-title\">Contents of the Budget<\/span>\n <\/div>\n <p style=\"margin-bottom:13px;color:#444;font-size:15px\">The budget shall contain the following:<\/p>\n <ul class=\"blist\">\n <li><span class=\"bi\">1\ufe0f\u20e3<\/span><span>Estimates of all <strong>revenues expected to be raised<\/strong> during the financial year to which the budget relates.<\/span><\/li>\n <li><span class=\"bi\">2\ufe0f\u20e3<\/span><span>Estimates of all <strong>expenditure for each programme, scheme and project<\/strong> in that financial year.<\/span><\/li>\n <li><span class=\"bi\">3\ufe0f\u20e3<\/span><span>Estimates of all <strong>interest and debt servicing charges<\/strong> and any <strong>repayments on loans<\/strong> in that financial year.<\/span><\/li>\n <li><span class=\"bi\">4\ufe0f\u20e3<\/span><span><strong>Any other information<\/strong> as may be prescribed.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch3r45\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 45<\/span>\n <span class=\"rule-title\">Receipt Estimates<\/span>\n <\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udcca<\/span><span>Detailed estimates of receipts shall be prepared by the <strong>estimating authorities separately for each Major Head of Account<\/strong> in the prescribed form.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccb<\/span><span>For each Major Head, the estimating authority shall give the <strong>break-up of the Minor \/ Sub-head \/ Detailed-wise estimate<\/strong> along with <strong>actuals of the past three years<\/strong>. <span class=\"tag-amber\">\u2b50 Past 3 years actuals<\/span><\/span><\/li>\n <li><span class=\"bi\">\ud83d\udd0d<\/span><span>Item-wise break-up of all major items of <strong>tax and non-tax revenues<\/strong> shall be clearly identified and depicted in the receipt estimates.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcdd<\/span><span>Any <strong>major variation<\/strong> in estimates with reference to past actuals or Budget Estimates shall be <strong>supported by cogent reasons<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83c\udfdb\ufe0f<\/span><span>Accounting heads under which major tax and non-tax revenues are collected shall be prescribed by the <strong>administrative Ministry in consultation with Budget Division, MoF<\/strong>.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch3r46\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 46<\/span>\n <span class=\"rule-title\">Non-Tax Revenues<\/span>\n <\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udcb0<\/span><span>While <strong>tax revenues, non-debt capital receipts<\/strong> (including disinvestments) and <strong>borrowings<\/strong> are managed by the various Departments of the Ministry of Finance \u2014<\/span><\/li>\n <li><span class=\"bi\">\ud83c\udfdb\ufe0f<\/span><span><strong>Non-tax revenues<\/strong> are collected through <strong>all Ministries\/Departments<\/strong> and other autonomous bodies and implementing agencies, comprising an important source of revenue for the Government.<\/span><\/li>\n <\/ul>\n <div class=\"box-amber\">\n <div class=\"box-amber-lbl\">\u2b50 Who Manages What<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>MoF departments manage:<\/strong> Tax revenues \u00b7 Non-debt capital receipts \u00b7 Disinvestments \u00b7 Borrowings<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>All Ministries\/Depts manage:<\/strong> Non-tax revenues (fees, user charges, dividends, fines, etc.)<\/span><\/li>\n <\/ul>\n <\/div>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch3r47\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 47<\/span>\n <span class=\"rule-title\">User Charges<\/span>\n <\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udca1<\/span><span>'User Charges' is an important component of non-tax revenues. Each Ministry\/Department shall identify the user charges levied by it and <strong>publish them on its website<\/strong>.<\/span><\/li>\n <\/ul>\n <div class=\"sec-h\">Rules for Fixing User Charges<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">1\ufe0f\u20e3<\/span><span>User charges must <strong>recover the current cost of providing services<\/strong> with a <strong>reasonable return on capital investment<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">2\ufe0f\u20e3<\/span><span>Any <strong>deviation<\/strong> from cost-recovery norms shall be <strong>specifically recorded with reasons<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">3\ufe0f\u20e3<\/span><span>Rates of user charges shall be <strong>linked with appropriate price indices<\/strong> and <strong>reviewed at least every three years<\/strong>. <span class=\"tag-red\">\u2757 Every 3 years<\/span><\/span><\/li>\n <li><span class=\"bi\">4\ufe0f\u20e3<\/span><span>To enable ease of revision, user charges shall be fixed, wherever possible, through <strong>Rules or executive orders \u2014 not through a statute<\/strong>. <span class=\"tag-amber\">\u2b50 Exam point<\/span><\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch3r48\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 48<\/span>\n <span class=\"rule-title\">Dividends and Profits from CPSEs<\/span>\n <\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udcc8<\/span><span>Dividends and profits \u2014 including the <strong>transfer of surplus from the Reserve Bank of India<\/strong> \u2014 are a major component of non-tax revenues.<\/span><\/li>\n <li><span class=\"bi\">\u26a1<\/span><span>Payment of dividends\/profits by <strong>Central Public Sector Enterprises (CPSEs)<\/strong> shall <strong>not be delayed<\/strong> and must be paid within an appropriate time frame <strong>immediately after the decision on dividend is taken in the AGM<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udc40<\/span><span>Ministries or Departments shall <strong>monitor timely payments<\/strong> of dividends and profits.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccb<\/span><span>The dividend shall be payable as per the <strong>guidelines issued by DIPAM<\/strong> (Department of Investment and Public Asset Management).<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch3r49\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 49<\/span>\n <span class=\"rule-title\">Receipts Portal \u2014 e-Receipts<\/span>\n <\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udcbb<\/span><span>The Government has provided a <strong>public portal for online collection<\/strong> of various non-tax revenues including fees and user charges through <strong>e-Receipts<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\ude80<\/span><span>All Ministries\/Departments shall take <strong>prompt measures for migration to e-Receipts<\/strong>, to ensure:\n <ul class=\"blist-sub\">\n <li><span class=\"bsi\">\ud83d\udc64<\/span><span><strong>Customer convenience<\/strong><\/span><\/li>\n <li><span class=\"bsi\">\u26a1<\/span><span><strong>Immediate credit of receipts<\/strong> to the Government account<\/span><\/li>\n <\/ul>\n <\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch3r50\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 50<\/span>\n <span class=\"rule-title\">Expenditure Estimates<\/span>\n <\/div>\n <div class=\"sec-h\">Sub-rule (1) \u2014 Charged vs Voted<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\u2696\ufe0f<\/span><span>The expenditure estimates shall show separately:\n <ul class=\"blist-sub\">\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span>Sums required to meet expenditure <strong>Charged on the Consolidated Fund<\/strong> under Article 112(3) \u2014 no vote required.<\/span><\/li>\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span>Sums required to meet <strong>other expenditure for which a vote of Lok Sabha is required<\/strong> under Article 113(2) \u2014 voted expenditure.<\/span><\/li>\n <\/ul>\n <\/span><\/li>\n <\/ul>\n <div class=\"sec-h\">Sub-rule (2) \u2014 Revenue vs Capital<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udcca<\/span><span>Estimates shall also distinguish provisions for <strong>Revenue Account<\/strong> from <strong>Capital Account<\/strong>, including loans by the Government and repayment of loans, treasury bills, cash management bills, and ways and means advances.<\/span><\/li>\n <\/ul>\n <div class=\"sec-h\">Sub-rule (3) \u2014 Level of Detail<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udd0d<\/span><span>Detailed estimates of expenditure shall be prepared up to the <strong>final unit of appropriation (Object Head)<\/strong> under prescribed Major and Minor Heads for both Revenue and Capital expenditure.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccb<\/span><span>Estimates shall include suitable provision for <strong>liabilities of the previous years<\/strong> to be discharged during the year.<\/span><\/li>\n <\/ul>\n <div class=\"sec-h\">Sub-rule (5) \u2014 Approval and Submission Process<\/div>\n <div class=\"box-blue\">\n <div class=\"box-blue-lbl\">\u26a0\ufe0f Three-Step Process for RE and BE<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">1\ufe0f\u20e3<\/span><span>Scrutinised by the <strong>Financial Adviser<\/strong> of the Ministry\/Department.<\/span><\/li>\n <li><span class=\"bi\">2\ufe0f\u20e3<\/span><span>Approved by the <strong>Secretary<\/strong> of the Administrative Ministry or Department.<\/span><\/li>\n <li><span class=\"bi\">3\ufe0f\u20e3<\/span><span>Forwarded to the <strong>Budget Division, Ministry of Finance<\/strong> in such manner and forms as may be prescribed.<\/span><\/li>\n <\/ul>\n <\/div>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch3r51\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 51<\/span>\n <span class=\"rule-title\">Demands for Grants<\/span>\n <\/div>\n <div class=\"sec-h\">Sub-rule (1) \u2014 Form of DFG<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccb<\/span><span>The estimates for expenditure for which a <strong>vote of Lok Sabha is required<\/strong> shall be in the form of <strong>Demands for Grants<\/strong>.<\/span><\/li>\n <\/ul>\n <div class=\"sec-h\">Sub-rule (2) \u2014 One per Ministry (Generally)<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83c\udfdb\ufe0f<\/span><span>Generally, <strong>one Demand for Grant<\/strong> is presented in respect of each Ministry or Department. However, for <strong>large Ministries<\/strong>, more than one Demand may be presented.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcca<\/span><span>Each Demand normally includes provisions required for a service \u2014 i.e., revenue expenditure, capital expenditure, grants to State and UT Governments, and loans and advances relating to the service.<\/span><\/li>\n <\/ul>\n <div class=\"sec-h\">Sub-rule (3) \u2014 Two Levels of Presentation to Parliament<\/div>\n <div class=\"box-blue\">\n <div class=\"box-blue-lbl\">\u26a0\ufe0f Main DFG vs Detailed DFG<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udcc4<\/span><span><strong>Main Demand for Grants:<\/strong> Presented to Parliament by the <strong>Ministry of Finance, Budget Division<\/strong>, along with the Annual Financial Statement.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcd1<\/span><span><strong>Detailed Demands for Grants:<\/strong> Laid on the Table of Lok Sabha by the concerned <strong>Ministries\/Departments<\/strong> for consideration by the <strong>Departmentally Related Standing Committee (DRSC)<\/strong>.<\/span><\/li>\n <\/ul>\n <\/div>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch3r52\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 52<\/span>\n <span class=\"rule-title\">Form of Annual Financial Statement and Demands for Grants<\/span>\n <\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccb<\/span><span>The form of the Annual Financial Statement and Demands for Grants shall be laid down by the <strong>Finance Ministry<\/strong> \u2014 no alteration of arrangement or classification shall be made <strong>without the approval of that Ministry<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udd11<\/span><span>The heads under which provision for expenditure shall be made shall be <strong>prescribed by the Finance Ministry in consultation with the Administrative Ministry or Department<\/strong>. The authorised heads for a year shall be as shown in the <strong>Detailed Demands for Grants passed by Parliament<\/strong> \u2014 no change without formal MoF approval.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udd04<\/span><span>The <strong>major head-wise provisions in the Detailed DFG must match<\/strong> with the provision made in the Demands for Grants presented by Budget Division, as appropriations are sought on the basis of Demands for Grants.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch3r53\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 53<\/span>\n <span class=\"rule-title\">Acceptance and Inclusion of Estimates<\/span>\n <\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udd0d<\/span><span>The estimates of receipts and expenditure of each Ministry\/Department shall be <strong>scrutinised in the Budget Division, Ministry of Finance<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83e\udd1d<\/span><span><strong>Secretary (Expenditure)<\/strong> may hold <strong>pre-budget meetings<\/strong> with Secretaries or Financial Advisers of Administrative Ministries\/Departments to discuss the totality of requirements.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcca<\/span><span>The estimates initially submitted may undergo changes as a result of scrutiny and pre-budget meetings. The <strong>final estimates arrived at on the basis of scrutiny and meetings shall be incorporated in the Budget documents<\/strong>.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch3r54\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 54<\/span>\n <span class=\"rule-title\">Outcome Budget<\/span>\n <\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83c\udfaf<\/span><span>After finalisation of budgetary allocations, the <strong>Department of Expenditure<\/strong> in consultation with <strong>NITI Aayog<\/strong> and the concerned Ministries shall prepare an <strong>Outcome Budget Statement<\/strong> linking outlays against each scheme\/project with the <strong>outputs\/deliverables and medium-term outcomes<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcca<\/span><span>Outputs\/deliverables shall be mandatorily given in <strong>measurable\/quantitative terms<\/strong> on the basis of parameters decided in advance, based on projections in the <strong>Medium-Term Expenditure Framework (MTEF) Statement<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udd12<\/span><span>Allocations shall be against a <strong>firm set of deliverables<\/strong> which shall be adhered to.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcc8<\/span><span>The <strong>performance against specified outcomes<\/strong> would form the basis of deciding on the <strong>continuation of the scheme and the quantum of budget allocation<\/strong>.<\/span><\/li>\n <\/ul>\n <div class=\"box-amber\">\n <div class=\"box-amber-lbl\">\u2b50 Key Concept \u2014 Outcome Budget<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udca1<\/span><span>The Outcome Budget is a shift from <strong>input-based budgeting to results-based budgeting<\/strong>. It connects money spent (outlays) to what is actually achieved (outcomes). Poor performance = reduced future allocation.<\/span><\/li>\n <\/ul>\n <\/div>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch3r55\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 55<\/span>\n <span class=\"rule-title\">Vote on Account<\/span>\n <\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\u23f0<\/span><span>If the <strong>Appropriation Bill<\/strong> is likely to be passed <em>after<\/em> the start of the financial year to which it corresponds, the <strong>Finance Ministry may obtain a 'Vote on Account'<\/strong> to cover expenditure for a brief period \u2014 in accordance with the provisions of <strong>Article 116<\/strong> of the Constitution.<\/span><\/li>\n <\/ul>\n <div class=\"box-red\">\n <span style=\"font-size:18px;flex-shrink:0;margin-top:2px\">\u26a0\ufe0f<\/span>\n <span><strong>Restriction:<\/strong> Funds made available under Vote on Account are <strong>not to be utilised for expenditure on a 'New Service'<\/strong>. Vote on Account is only for meeting routine, ongoing expenditure pending passage of the full Budget.<\/span>\n <\/div>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch3r56\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 56<\/span>\n <span class=\"rule-title\">Communication and Distribution of Grants and Appropriations<\/span>\n <\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udce4<\/span><span>After the <strong>Appropriation Bill<\/strong> relating to the Budget is passed, the <strong>Ministry of Finance<\/strong> shall communicate the grants and appropriations to the Ministries\/Departments.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udd04<\/span><span>Ministries\/Departments shall in turn <strong>distribute the same to their subordinate formations<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udce2<\/span><span>The distribution made shall also be <strong>communicated to the respective Pay and Accounts Officers<\/strong>, who shall exercise check against the allocation to each subordinate authority.<\/span><\/li>\n <\/ul>\n <div class=\"box-blue\">\n <div class=\"box-blue-lbl\">\ud83d\udccc Flow of Grant Communication<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\u27a1\ufe0f<\/span><span><strong>Appropriation Bill passed \u2192 MoF \u2192 Ministry\/Dept \u2192 Subordinate formations \u2192 PAOs informed<\/strong><\/span><\/li>\n <\/ul>\n <\/div>\n <\/div>\n\n \n <div style=\"background:#e8f0ff;border-left:5px solid #1a3a6b;padding:10px 18px;border-radius:0 6px 6px 0;margin:44px 0 10px;font-weight:700;color:#1a3a6b;font-size:14px;letter-spacing:.04em;text-transform:uppercase\">Section II \u2014 Control of Expenditure Against Budget (Rules 57\u201370)<\/div>\n\n \n <div class=\"rule-div\" style=\"margin-top:8px\"><\/div>\n <div class=\"rule-block\" id=\"ch3r57\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 57<\/span>\n <span class=\"rule-title\">Responsibility for Control of Expenditure (8 Sub-rules)<\/span>\n <\/div>\n\n <div class=\"sec-h\">Sub-rule (1) \u2014 Who is Responsible<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83c\udfdb\ufe0f<\/span><span>The <strong>Departments of the Central Government<\/strong> shall be responsible for the control of expenditure against the sanctioned grants and appropriations placed at their disposal.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udd17<\/span><span>Control shall be exercised through <strong>Heads of Departments, other Controlling Officers,<\/strong> and <strong>Disbursing Officers<\/strong> subordinate to them.<\/span><\/li>\n <\/ul>\n\n <div class=\"sec-h\">Sub-rule (2) \u2014 Grant Usable Only Within the Financial Year<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udcc5<\/span><span>A Grant or Appropriation can be utilised <strong>only to cover charges to be paid during the financial year<\/strong> of the Grant or Appropriation and adjusted in the account of the year.<\/span><\/li>\n <li><span class=\"bi\">\u26d4<\/span><span><strong>No charges<\/strong> against a Grant or Appropriation can be authorised <strong>after the expiry of the financial year<\/strong>.<\/span><\/li>\n <\/ul>\n\n <div class=\"sec-h\">Sub-rule (3) \u2014 No Excess Without Supplementary Grant or CF Advance<\/div>\n <div class=\"box-red\">\n <span style=\"font-size:18px;flex-shrink:0;margin-top:2px\">\u26a0\ufe0f<\/span>\n <span>No expenditure shall be incurred which may have the effect of <strong>exceeding the total grant or appropriation<\/strong> authorised by Parliament, except after obtaining a <strong>Supplementary Grant or Appropriation<\/strong> or an advance from the <strong>Contingency Fund<\/strong>. Since voted and charged portions \u2014 and revenue and capital sections \u2014 of a Grant are distinct, <strong>re-appropriation between them is not permissible<\/strong>. An excess in any portion is treated as an excess in the whole Grant.<\/span>\n <\/div>\n\n <div class=\"sec-h\">Sub-rule (4) \u2014 Procedure for DDOs and Controlling Officers<\/div>\n <div class=\"box-blue\">\n <div class=\"box-blue-lbl\">\u26a0\ufe0f GFR Forms Used in Expenditure Control<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccb<\/span><span><strong>Form GFR 5<\/strong> \u2014 Allocation register maintained by DDOs (minor\/sub-head wise); entries sent to HoD by <strong>3rd of each month<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccb<\/span><span><strong>Form GFR 6<\/strong> \u2014 Broadsheet maintained by Controlling Officer to monitor receipt of DDO returns.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccb<\/span><span><strong>Form GFR 7<\/strong> \u2014 Monthly compiled statement prepared by Controlling Officer (totals from DDOs + his own registers + adjustments from Accounts Officer).<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccb<\/span><span><strong>Form GFR 8<\/strong> \u2014 Consolidated account prepared by HoD showing complete expenditure up to end of preceding month.<\/span><\/li>\n <\/ul>\n <\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>DDO's key duties on bills: (a) Prepare charged and voted bills <strong>separately<\/strong>; (b) Enter <strong>complete accounts classification<\/strong> from major head to object head; (c) Enter <strong>progressive total of expenditure<\/strong> up to date on each bill.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcc5<\/span><span>Returns from DDOs due to HoD by <strong>3rd of each month<\/strong>. If no entries, a <strong>'Nil' statement must still be sent<\/strong>.<\/span><\/li>\n <\/ul>\n\n <div class=\"sec-h\">Sub-rule (5) \u2014 Monthly Reconciliation: DDO \u2194 PAO<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udd04<\/span><span>The <strong>Head of the Department and the Accounts Officer shall be jointly responsible<\/strong> for the monthly reconciliation of departmental figures with those in the Accounts Officer's books.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccb<\/span><span>DDOs shall maintain a <strong>Bill Register in Form TR 28-A<\/strong> and note all bills presented to the PAO.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcc5<\/span><span>DDO shall furnish a <strong>certificate of agreement<\/strong> to the PAO by the <strong>last day of the month following the month of accounts<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcca<\/span><span>HoD shall furnish a <strong>quarterly certificate<\/strong> to the Principal Accounts Officer certifying correctness of figures for the quarter \u2014 <strong>by the 15th of the second month following the end of each quarter<\/strong>. <span class=\"tag-red\">\u2757 Exam point<\/span><\/span><\/li>\n <\/ul>\n\n <div class=\"sec-h\">Sub-rule (6) \u2014 Departmental Figures to be Submitted to Ministry<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udcc5<\/span><span>Departments shall obtain Form GFR 8 figures from HoDs by the <strong>15th of the month following<\/strong> the month to which the returns relate.<\/span><\/li>\n <li><span class=\"bi\">\u26a0\ufe0f<\/span><span>If Accounts Office figures are found to be higher than departmental figures, the <strong>Accounts Office figures shall be assumed to be correct<\/strong> \u2014 as appropriation accounts are prepared on that basis.<\/span><\/li>\n <\/ul>\n\n <div class=\"sec-h\">Sub-rule (7) \u2014 Physical Progress Statements<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udcc8<\/span><span>Departments shall also obtain <strong>statements showing physical progress<\/strong> of the schemes \u2014 name of scheme, Budget provision, progressive expenditure, progress in physical terms, and detailed reasons for shortfalls or excess against both physical and financial targets.<\/span><\/li>\n <\/ul>\n\n <div class=\"sec-h\">Sub-rule (8) \u2014 Broadsheet in Form GFR 9<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccb<\/span><span>A <strong>Broadsheet in Form GFR 9<\/strong> shall be maintained by the Departments of Central Government or each HoD to watch the prompt receipt of various returns and to rectify any defaults.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch3r58\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 58<\/span>\n <span class=\"rule-title\">Liability Register for Expenditure Control<\/span>\n <\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccb<\/span><span>In order to maintain proper control over expenditure, a <strong>Controlling Officer<\/strong> shall obtain from the spending authorities <strong>liability statements in Form GFR 3-A<\/strong> every month, starting from the <strong>month of October<\/strong> in each financial year. <span class=\"tag-amber\">\u2b50 From October<\/span><\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcd2<\/span><span>The Controlling Officer shall also maintain a <strong>Liability Register in Form GFR 3<\/strong>.<\/span><\/li>\n <\/ul>\n <div class=\"box-green\">\n <div class=\"box-green-lbl\">\ud83d\udccc Why From October?<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udca1<\/span><span>October marks the mid-point of the financial year. Liability monitoring from October allows the Controlling Officer to identify impending excesses or savings with enough time to take corrective action (re-appropriation, surrender or seeking supplementary grants) before the close of the year on 31st March.<\/span><\/li>\n <\/ul>\n <\/div>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch3r59\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 59<\/span>\n <span class=\"rule-title\">Estimating Savings or Excesses \u2014 Personal Attention of HoD\/CO<\/span>\n <\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udc64<\/span><span>A <strong>Head of Department or Controlling Officer<\/strong> shall be in a position to estimate the <strong>likelihood of savings or excesses every month<\/strong> and to regularise them in accordance with the instructions laid down in Rule 62.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch3r60\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 60<\/span>\n <span class=\"rule-title\">Disproportionate Expenditure \u2014 Report by Accounts Officer<\/span>\n <\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\u26a0\ufe0f<\/span><span>The <strong>Accounts Officer shall report to the Head of the Department<\/strong> immediately on the <strong>first appearance of any disproportionate expenditure<\/strong>, particularly in respect of recurring items of expenditure under any grant, appropriation, or a primary unit thereof.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udd11<\/span><span>However, the <strong>authority administering a grant\/appropriation is ultimately responsible<\/strong> for the control of expenditure \u2014 <strong>not the Accounts Officer<\/strong>.<\/span><\/li>\n <\/ul>\n <div class=\"box-red\">\n <span style=\"font-size:18px;flex-shrink:0;margin-top:2px\">\u26a0\ufe0f<\/span>\n <span><strong>Key Distinction:<\/strong> The Accounts Officer's role is advisory and early-warning. <strong>Ultimate accountability rests with the spending Ministry\/Department<\/strong>. An officer cannot shift blame for excess expenditure to the Accounts Officer for failing to warn earlier.<\/span>\n <\/div>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch3r61\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 61<\/span>\n <span class=\"rule-title\">Excess Expenditure<\/span>\n <\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">1\ufe0f\u20e3<\/span><span>The <strong>Accounts Officer shall not allow any payment against sanctions in excess of the Budget provisions<\/strong> unless there is <strong>specific approval of the Chief Accounting Authority<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">2\ufe0f\u20e3<\/span><span>The <strong>Financial Advisers and Chief Accounting Authority<\/strong>, before according concurrence for excess under any Head, shall ensure <strong>availability of funds through Re-appropriation or Supplementary Demands for Grants<\/strong>.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch3r62\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 62<\/span>\n <span class=\"rule-title\">Surrender of Savings<\/span>\n <\/div>\n <div class=\"sec-h\">Sub-rule (1) \u2014 Surrender to Finance Ministry<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udce4<\/span><span>Departments shall <strong>surrender to the Finance Ministry, by the prescribed dates<\/strong>, all anticipated savings noticed in the Grants or Appropriations controlled by them.<\/span><\/li>\n <li><span class=\"bi\">\u23f0<\/span><span>Funds provided during the financial year and <strong>not utilised before the close of that financial year shall stand lapsed<\/strong> at the close of the year.<\/span><\/li>\n <\/ul>\n <div class=\"sec-h\">Sub-rule (2) \u2014 Surrender Immediately on Foresight<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\u26a1<\/span><span>Savings shall be <strong>surrendered immediately<\/strong> when foreseen \u2014 without waiting till the end of the year.<\/span><\/li>\n <li><span class=\"bi\">\u26d4<\/span><span><strong>No savings shall be held in reserve<\/strong> for possible future excesses.<\/span><\/li>\n <\/ul>\n <div class=\"sec-h\">Sub-rule (3) \u2014 Rush of Expenditure in Closing Months<\/div>\n <div class=\"box-red\">\n <span style=\"font-size:18px;flex-shrink:0;margin-top:2px\">\u26a0\ufe0f<\/span>\n <span><strong>Rush of expenditure, particularly in the closing months of the Financial Year, shall be regarded as a breach of financial propriety and shall be avoided.<\/strong> Financial Advisers shall ensure adherence to the Monthly Expenditure Plan and guidelines issued by Budget Division, DEA.<\/span>\n <\/div>\n <div class=\"sec-h\">Sub-rule (4) \u2014 Quarterly Expenditure Plan<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udcca<\/span><span>The Financial Advisers of Ministries\/Departments shall ensure adherence to the <strong>Quarterly Expenditure Plan<\/strong> and guidelines issued by Ministry of Finance from time to time.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch3r63\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 63<\/span>\n <span class=\"rule-title\">Expenditure on New Service<\/span>\n <\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\u26d4<\/span><span>No expenditure shall be incurred during a financial year on a <strong>\"New Service\"<\/strong> not contemplated in the Annual Budget for the year \u2014 except after obtaining a <strong>Supplementary Grant or Appropriation<\/strong> or an <strong>advance from the Contingency Fund<\/strong> during that year.<\/span><\/li>\n <\/ul>\n <div class=\"box-green\">\n <div class=\"box-green-lbl\">\ud83d\udccc What is a \"New Service\"?<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udca1<\/span><span>Guidelines to determine cases of \"New Service\" \/ \"New Instrument of Service\" are contained in <strong>Annexure-1 to Appendix-3<\/strong> of GFR 2017. The key principle is that Parliament must authorise all new expenditure \u2014 the Executive cannot spend on something Parliament has not approved in the Budget.<\/span><\/li>\n <\/ul>\n <\/div>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch3r64\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 64<\/span>\n <span class=\"rule-title\">Additional Allotment for Excess Expenditure<\/span>\n <\/div>\n <div class=\"sec-h\">Sub-rule (1) \u2014 Responsibility of Subordinate Authority<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udc64<\/span><span>A subordinate authority incurring expenditure is responsible for ensuring the <strong>allotment at its disposal is not exceeded<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\u2705<\/span><span>Where any excess is apprehended, the subordinate authority shall <strong>obtain additional allotment before incurring the excess expenditure<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcd2<\/span><span>For this purpose, authorities incurring expenditure shall maintain a <strong>Liability Register in Form GFR 3<\/strong>.<\/span><\/li>\n <\/ul>\n <div class=\"sec-h\">Sub-rule (2) \u2014 Disbursing Officer Cannot Self-Authorise Excess<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\u26d4<\/span><span>A <strong>Disbursing Officer may not, on his own authority, authorise any payment in excess<\/strong> of the funds placed at his disposal.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udd04<\/span><span>If faced with a claim certain to produce an excess, he shall <strong>take the orders of the administrative authority<\/strong> to which he is subordinate, who shall then arrange \u2014 Re-appropriation, or Supplementary Grant\/Appropriation, or advance from the Contingency Fund.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch3r65\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 65<\/span>\n <span class=\"rule-title\">Re-appropriation of Funds<\/span>\n <\/div>\n <div class=\"sec-h\">Sub-rule (1) \u2014 When Permissible<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udd04<\/span><span>Re-appropriation of funds from one <strong>primary unit of appropriation to another<\/strong> within a grant or appropriation may be sanctioned by a competent authority <strong>at any time before the close of the financial year<\/strong> \u2014 subject to DFPR Rule 10 and restrictions imposed by Finance Ministry.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>The <strong>primary unit = final unit of appropriation = Object Head of Account<\/strong>.<\/span><\/li>\n <\/ul>\n <div class=\"sec-h\">Sub-rule (2) \u2014 Only from Units with Surplus<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\u2705<\/span><span>Re-appropriation shall be made <strong>only when it is known or anticipated that the appropriation for the unit from which funds are transferred shall not be utilised in full<\/strong>.<\/span><\/li>\n <\/ul>\n <div class=\"sec-h\">Sub-rule (3) \u2014 No Artificial Diversion<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\u26d4<\/span><span>Funds shall <strong>not be re-appropriated with the intention of restoring the diverted appropriation<\/strong> when savings become available under other units later in the year. No manipulation allowed.<\/span><\/li>\n <\/ul>\n <div class=\"sec-h\">Sub-rule (4) \u2014 Form and Documentation<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccb<\/span><span>Application for re-appropriation ordinarily supported by a statement in <strong>Form GFR 1<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcdd<\/span><span>In all orders sanctioning re-appropriation, <strong>reasons for saving and excess of \u20b91 lakh or over<\/strong> and the primary units affected shall be <strong>invariably stated<\/strong>. <span class=\"tag-red\">\u2757 \u20b91 lakh threshold<\/span><\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcec<\/span><span>The authority sanctioning the re-appropriation shall <strong>endorse a copy of the order to the Accounts Officer<\/strong>.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch3r66\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 66<\/span>\n <span class=\"rule-title\">Supplementary Grants<\/span>\n <\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83c\udfdb\ufe0f<\/span><span>If savings are <strong>not available within the Grant<\/strong> to which the payment is required to be debited, or if the expenditure is on a <strong>\"New Service\" or \"New Instrument of Service\"<\/strong> not provided in the budget, a necessary <strong>Supplementary Grant or Appropriation<\/strong> in accordance with <strong>Article 115(1)<\/strong> of the Constitution shall be obtained <strong>before payment is authorised<\/strong>.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch3r67\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 67<\/span>\n <span class=\"rule-title\">Advance from Contingency Fund<\/span>\n <\/div>\n <div class=\"sec-h\">Sub-rule (1) \u2014 When Required<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\u26a1<\/span><span>When a need arises to incur <strong>unforeseen expenditure<\/strong> in excess of the sanctioned grant or appropriation, or on a <strong>New Service not provided in Budget<\/strong>, and there is <strong>not sufficient time for voting of Supplementary Demand<\/strong> before close of the financial year \u2014 an advance from the <strong>Contingency Fund<\/strong> set up under <strong>Article 267(1)<\/strong> of the Constitution shall be obtained <strong>before incurring the expenditure<\/strong>.<\/span><\/li>\n <\/ul>\n <div class=\"sec-h\">Sub-rule (2) \u2014 Excess over Vote on Account<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccb<\/span><span>An advance from the Contingency Fund shall also be obtained to meet expenditure in <strong>excess of the provisions for the service included in an Appropriation (Vote on Account) Act<\/strong>.<\/span><\/li>\n <\/ul>\n <div class=\"sec-h\">Sub-rule (4) \u2014 Governing Rules<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udcdc<\/span><span>The procedure for obtaining an advance and recoupment of the Fund shall be as laid down in the <strong>Contingency Fund of India (Amendment) Rules, 2021<\/strong> (placed at Appendix-6).<\/span><\/li>\n <\/ul>\n <div class=\"box-amber\">\n <div class=\"box-amber-lbl\">\u2b50 Supplementary Grant vs Contingency Fund Advance<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83c\udfdb\ufe0f<\/span><span><strong>Supplementary Grant (R.66):<\/strong> Voted by Parliament \u00b7 Used when time permits \u00b7 Permanent authorisation<\/span><\/li>\n <li><span class=\"bi\">\u26a1<\/span><span><strong>CF Advance (R.67):<\/strong> No time for Supplementary demand \u00b7 President's discretion \u00b7 Must be recouped (replaced) by Supplementary Grant subsequently<\/span><\/li>\n <\/ul>\n <\/div>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch3r68\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 68<\/span>\n <span class=\"rule-title\">Inevitable Payments<\/span>\n <\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udcb0<\/span><span>Subject to the provisions of Article 114(3) of the Constitution, <strong>money indisputably payable by Government shall not ordinarily be left unpaid<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccb<\/span><span>Suitable provision for <strong>anticipated liabilities shall invariably be made in Demands for Grants<\/strong> to be placed before Parliament.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch3r69\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 69<\/span>\n <span class=\"rule-title\">Pre-check of Bills \u2014 Reference to Appendix 10<\/span>\n <\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udcce<\/span><span>For easy reference, an extract relating to the <strong>procedures followed in the Accounts Office for check against provision of funds<\/strong> as a part of <strong>pre-check of bills<\/strong> has been placed at <strong>Appendix 10<\/strong>.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch3r70\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 70<\/span>\n <span class=\"rule-title\">Duties and Responsibilities of the Chief Accounting Authority<\/span>\n <\/div>\n <p style=\"margin-bottom:13px;color:#444;font-size:15px\">The <strong>Secretary of a Ministry\/Department<\/strong>, who is the <strong>Chief Accounting Authority (CAA)<\/strong>, shall be responsible for all of the following <strong>nine duties<\/strong>:<\/p>\n <ul class=\"blist\">\n <li><span class=\"bi\">1\ufe0f\u20e3<\/span><span><strong>Financial Management:<\/strong> Be responsible and accountable for the financial management of his Ministry or Department.<\/span><\/li>\n <li><span class=\"bi\">2\ufe0f\u20e3<\/span><span><strong>Proper Use of Funds:<\/strong> Ensure that public funds appropriated to the Ministry\/Department are used <strong>for the purpose for which they were meant<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">3\ufe0f\u20e3<\/span><span><strong>Effective, Efficient, Economical and Transparent Use:<\/strong> Be responsible for such use of resources in achieving the stated project objectives, whilst complying with performance standards.<\/span><\/li>\n <li><span class=\"bi\">4\ufe0f\u20e3<\/span><span><strong>Parliament:<\/strong> Appear before the <strong>Committee on Public Accounts (PAC)<\/strong> and any other Parliamentary Committee for examination.<\/span><\/li>\n <li><span class=\"bi\">5\ufe0f\u20e3<\/span><span><strong>Performance Monitoring:<\/strong> Review and monitor regularly the performance of programmes and projects assigned to his Ministry to determine whether stated objectives are achieved.<\/span><\/li>\n <li><span class=\"bi\">6\ufe0f\u20e3<\/span><span><strong>Expenditure Statements:<\/strong> Be responsible for preparation of <strong>expenditure and other statements<\/strong> relating to his Ministry\/Department as required by regulations, guidelines or directives issued by MoF.<\/span><\/li>\n <li><span class=\"bi\">7\ufe0f\u20e3<\/span><span><strong>Internal Controls:<\/strong> Ensure that his Ministry\/Department <strong>maintains full and proper records<\/strong> of financial transactions and adopts systems and procedures that shall at all times afford <strong>internal controls<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">8\ufe0f\u20e3<\/span><span><strong>Procurement Procedures:<\/strong> Ensure that his Ministry\/Department follows Government <strong>procurement procedure<\/strong> for execution of works, services and supplies, and implements it in a <strong>fair, equitable, transparent, competitive and cost-effective manner<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">9\ufe0f\u20e3<\/span><span><strong>Collections and Avoiding Waste:<\/strong> Take effective steps to ensure his Ministry\/Department: (a) <strong>collects all moneys due<\/strong> to the Government; and (b) <strong>avoids unauthorised, irregular and wasteful expenditure<\/strong>.<\/span><\/li>\n <\/ul>\n <div class=\"box-amber\">\n <div class=\"box-amber-lbl\">\u2b50 Quick Recall \u2014 CAA's 9 Duties<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udcdd<\/span><span><strong>Financial Mgmt \u00b7 Proper Use \u00b7 4E Use \u00b7 PAC \u00b7 Performance \u00b7 Statements \u00b7 Internal Controls \u00b7 Procurement \u00b7 Collections & No Waste<\/strong><\/span><\/li>\n <li><span class=\"bi\">\u26a0\ufe0f<\/span><span>The CAA is the <strong>Secretary<\/strong> of the Ministry \u2014 <em>not<\/em> the Financial Adviser. This is a frequently tested distinction.<\/span><\/li>\n <\/ul>\n <\/div>\n <\/div>\n\n <div class=\"box-amber\" style=\"margin-top:36px\">\n <div class=\"box-amber-lbl\">\u2b50 Numbers to Remember \u2014 Chapter 3<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>Art. 112\u2013116<\/strong> \u2014 Constitutional provisions governing the Budget<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>2017-18<\/strong> \u2014 Year from which Railway Budget merged with General Budget (R.43)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>Past 3 years actuals<\/strong> \u2014 required in Receipt Estimates (R.45)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>Every 3 years<\/strong> \u2014 User charges to be reviewed at least (R.47)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>3rd of each month<\/strong> \u2014 DDOs send Form GFR 5 returns to HoD (R.57)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>15th of month following<\/strong> \u2014 Departments obtain GFR 8 returns from HoDs (R.57)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>15th of 2nd month after quarter end<\/strong> \u2014 HoD furnishes quarterly certificate to PAO (R.57)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>From October<\/strong> \u2014 Controlling Officer starts collecting monthly liability statements (R.58)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>\u20b91 lakh<\/strong> \u2014 threshold above which reasons for saving\/excess to be stated in re-appropriation orders (R.65)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>9 duties<\/strong> \u2014 of the Chief Accounting Authority (Secretary of Ministry) under Rule 70<\/span><\/li>\n <\/ul>\n <\/div>\n <\/div>\n\n <div id=\"ch4\" class=\"ch-block\">\n\n <div class=\"ch-banner\">\n <div class=\"ch-num\">Chapter 4<\/div>\n <div class=\"ch-title\">Government Accounts<\/div>\n <div class=\"ch-range\">Rules 71 to 129 \u00b7 Accounts Preparation \u00b7 Classification \u00b7 PFMS \u00b7 DBT \u00b7 Annual Accounts \u00b7 Capital & Revenue \u00b7 Adjustments<\/div>\n <\/div>\n\n \n <div class=\"idx-outer\">\n <div class=\"idx-lbl\">Rules at a Glance \u2014 Eight Sections<\/div>\n <table class=\"idx-table\">\n <thead><tr><th style=\"width:110px\">Rule No.<\/th><th>Rule Title \/ Section<\/th><th>Key Point<\/th><\/tr><\/thead>\n <tbody>\n <tr><td class=\"r-num\" colspan=\"3\" style=\"background:#1a3a6b;color:#fff;font-weight:700;letter-spacing:.04em;padding:6px 12px\">I. PREPARATION AND FORM OF ACCOUNTS (Rules 71\u201387)<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 71<\/td><td class=\"r-title\">Preparation and Presentation of Accounts<\/td><td class=\"r-key\">Prepared by CGA \u00b7 Certified by CAG \u00b7 Submitted to President (preferably within 6 months of close of FY) \u00b7 Laid before each House of Parliament<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 72<\/td><td class=\"r-title\">Form of Accounts<\/td><td class=\"r-key\">Art.150 \u2014 in form President prescribes on advice of CAG \u00b7 CGA prescribes form of accounts of Union and States<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 73<\/td><td class=\"r-title\">Principles of Accounting<\/td><td class=\"r-key\">Governed by Government Accounting Rules 1990 \u00b7 Accounting Rules for Treasuries \u00b7 Account Code Volume-III<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 74<\/td><td class=\"r-title\">Cash-Based Accounting<\/td><td class=\"r-key\">Accounts prepared on cash basis \u00b7 Transactions = actual cash receipts and disbursements during FY (not amounts due)<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 75<\/td><td class=\"r-title\">Period of Accounts<\/td><td class=\"r-key\">Financial year: 1st April to 31st March<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 76<\/td><td class=\"r-title\">Currency of Accounts<\/td><td class=\"r-key\">Maintained in Indian Rupees \u00b7 Foreign currency and foreign aid converted to INR before accounting<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 77<\/td><td class=\"r-title\">Main Divisions of Accounts \u2014 Three Parts<\/td><td class=\"r-key\">Part I: Consolidated Fund (Revenue + Capital divisions) \u00b7 Part II: Contingency Fund (Art.267) \u2014 single Major Head \u00b7 Part III: Public Account (debt, reserves, deposits, advances, suspense, remittances, cash balances)<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 78<\/td><td class=\"r-title\">Classification of Transactions \u2014 Six Tiers<\/td><td class=\"r-key\">Function\/programme\/activity based \u00b7 Major Head \u2192 Sub-Major \u2192 Minor \u2192 Sub-Head \u2192 Detailed \u2192 Object Head \u00b7 15-digit numeric code<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 79<\/td><td class=\"r-title\">Authority to Open New Head of Account<\/td><td class=\"r-key\">CGA \u2014 authorised to open Major\/Minor Heads on CAG's advice under Art.150 \u00b7 Ministries open Sub\/Detailed Heads with Budget Division concurrence \u00b7 Object Heads \u2014 DoE on CAG's advice<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 80<\/td><td class=\"r-title\">Budget Heads to Conform to Classification Rules<\/td><td class=\"r-key\">Budget heads in estimates and appropriation orders must conform to prescribed classification rules<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 81<\/td><td class=\"r-title\">Responsibility of Departmental Officers<\/td><td class=\"r-key\">Every officer responsible for collection\/expenditure must maintain proper accounts and render all returns promptly<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 82<\/td><td class=\"r-title\">Classification on Bills and Challans<\/td><td class=\"r-key\">Drawing Officers must record suitable classification on all bills drawn \u00b7 Departmental Officers record classification on challans \u00b7 Doubts \u2192 Principal Accounts Officer \u2192 CGA\/MoF<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 83<\/td><td class=\"r-title\">Charged or Voted Expenditure<\/td><td class=\"r-key\">Art.112(3) \u2014 Charged expenditure: not subject to vote of legislature \u00b7 All other = Voted expenditure \u00b7 Both shown separately in accounts and Budget<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 84<\/td><td class=\"r-title\">Capital or Revenue Expenditure (Definition)<\/td><td class=\"r-key\">Capital: acquiring tangible permanent assets \/ enhancing utility \u00b7 Revenue: maintenance, upkeep, working expenses, day-to-day running, establishment \u00b7 Both shown separately<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 85<\/td><td class=\"r-title\">Banking Arrangements<\/td><td class=\"r-key\">RBI is banker to Government \u00b7 RBI (in consultation with CGA) nominates Accredited Bank for each Ministry\/Dept \u00b7 Pay & Accounts Offices and CDDOs have assignment accounts \u00b7 Tax revenues collected by RBI<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 86<\/td><td class=\"r-title\">Public Financial Management System (PFMS)<\/td><td class=\"r-key\">Integrated FMS of CGA \u00b7 Used for sanction, bills, payment, receipts, DBT, fund flow, financial reporting \u00b7 All grant-in-aid implementing agencies registered on PFMS \u00b7 Payments 'just-in-time' \u00b7 DDG uploaded at start of FY \u00b7 Re-appropriation\/surrender orders through PFMS \u00b7 UCs submitted on PFMS<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 87<\/td><td class=\"r-title\">Direct Benefit Transfer (DBT)<\/td><td class=\"r-key\">Benefits directly to beneficiaries via ICT \u00b7 Includes in-kind and cash transfers + honorariums to community workers \u00b7 Three routes: (a) directly from Ministry (b) State Treasury (c) Implementing Agency \u00b7 Electronic UCs (E-UCs) generated on PFMS portal \u00b7 Transaction charges paid as stipulated by MoF<\/td><\/tr>\n <tr><td class=\"r-num\" colspan=\"3\" style=\"background:#1a3a6b;color:#fff;font-weight:700;letter-spacing:.04em;padding:6px 12px\">II. ANNUAL ACCOUNTS (Rules 88\u201391)<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 88<\/td><td class=\"r-title\">Appropriation Accounts<\/td><td class=\"r-key\">Prepared by Principal Accounts Officers \u00b7 Signed by CAA (Secretary) \u00b7 Consolidated by CGA \u00b7 Defence: Secretary, MoD \u00b7 Railways: Chairman, Railway Board \u00b7 Posts: Secretary, Dept of Posts<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 89<\/td><td class=\"r-title\">Finance Accounts<\/td><td class=\"r-key\">Annual receipts, disbursements and balances \u00b7 Prepared and signed by CGA \u00b7 Countersigned by Secretary (Expenditure), MoF \u00b7 Includes Posts, Defence, Railways, UT Govt transactions<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 90<\/td><td class=\"r-title\">Presentation of Annual Accounts<\/td><td class=\"r-key\">Prepared on dates agreed with CAG \u00b7 Sent to CAG for certification \u00b7 CAG submits certified accounts + reports to President under S.11 of CAG Act 1971 and Art.151(1)<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 91<\/td><td class=\"r-title\">PPP \/ PSC \/ JV Disclosure<\/td><td class=\"r-key\">Admin Ministry financial stakes in PPP\/PSC\/JV\/Subsidiary companies to be disclosed in Annual Report<\/td><\/tr>\n <tr><td class=\"r-num\" colspan=\"3\" style=\"background:#1a3a6b;color:#fff;font-weight:700;letter-spacing:.04em;padding:6px 12px\">III. PROFORMA ACCOUNTS (Rules 92\u201395)<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 92\u201395<\/td><td class=\"r-title\">Subsidiary Accounts \u2014 Commercial Depts<\/td><td class=\"r-key\">Commercial\/quasi-commercial Govt Depts maintain proforma accounts (Manufacturing, Trading, P&L, Balance Sheet) \u00b7 Methods regulated by Govt orders \u00b7 Head of unit ensures cost accounts are accurate \u00b7 Submitted to Accounts Officer and appended to Appropriation Accounts<\/td><\/tr>\n <tr><td class=\"r-num\" colspan=\"3\" style=\"background:#1a3a6b;color:#fff;font-weight:700;letter-spacing:.04em;padding:6px 12px\">IV. PERSONAL DEPOSIT ACCOUNTS (Rules 96\u201397)<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 96<\/td><td class=\"r-title\">Personal Deposit Account \u2014 Concept<\/td><td class=\"r-key\">Device to facilitate designated officer to credit and withdraw directly from account \u00b7 No minus balance allowed \u00b7 Only Govt officers in official capacity can be Designated Officer<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 97<\/td><td class=\"r-title\">Authority to Open PD Account \u2014 5 Types<\/td><td class=\"r-key\">Authorised by Ministry\/Dept special order in consultation with CGA \u00b7 Forms part of Public Account \u00b7 5 types: wards\/attached estates \u00b7 Civil\/Criminal Courts deposits \u00b7 Regulatory receipts under statute \u00b7 Law-mandated PD accounts \u00b7 Defence public funds<\/td><\/tr>\n <tr><td class=\"r-num\" colspan=\"3\" style=\"background:#1a3a6b;color:#fff;font-weight:700;letter-spacing:.04em;padding:6px 12px\">V. CAPITAL AND REVENUE ACCOUNTS (Rules 98\u2013103)<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 98<\/td><td class=\"r-title\">Capital Expenditure (Detailed Definition)<\/td><td class=\"r-key\">Tangible permanent assets \/ enhancing utility = Capital \u00b7 Maintenance, upkeep, establishment = Revenue \u00b7 Temporary asset \/ grants-in-aid: not Capital unless President authorises on CAG's advice \u00b7 Capital met from capital receipts generally; may be from ordinary revenue if sufficient<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 99<\/td><td class=\"r-title\">Principles for Allocation between Capital and Revenue (5 principles)<\/td><td class=\"r-key\">(a) Capital bears first construction, equipment, intermediate maintenance, improvements enhancing asset life \u00b7 (b) Revenue bears maintenance, working expenses, renewals \u00b7 (c) Renewal\/replacement: Revenue pays or funds adequate replacement of depreciation; genuine improvements to Capital \u00b7 (d) Extraordinary calamities: Capital or Revenue or divided, depending on whether new asset created or existing restored \u00b7 (e) Temporary asset \u2192 not Capital except with President's sanction on CAG's advice<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 100<\/td><td class=\"r-title\">Allocation on Capital Schemes<\/td><td class=\"r-key\">Determined by Govt orders after consultation with CAG, where separate Capital and Revenue Accounts kept<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 101<\/td><td class=\"r-title\">Capital Receipts during Construction<\/td><td class=\"r-key\">Capital receipts accruing during construction \u2192 utilised in reduction of capital expenditure \u00b7 Not credited to revenue account except under special order<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 102<\/td><td class=\"r-title\">Receipts Representing Recoveries of Capital Expenditure<\/td><td class=\"r-key\">Receipts representing recoveries of expenditure previously debited to a Capital Major Head \u2192 taken in reduction of expenditure under that Major Head<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 103<\/td><td class=\"r-title\">Conversion of Loans into Equity \/ Grants-in-Aid<\/td><td class=\"r-key\">Parliament approval required via token provision in DFG or Supplementary DFG \u00b7 After approval, balances corrected proforma under Loan\/Capital Major Heads<\/td><\/tr>\n <tr><td class=\"r-num\" colspan=\"3\" style=\"background:#1a3a6b;color:#fff;font-weight:700;letter-spacing:.04em;padding:6px 12px\">VI. INTEREST ON CAPITAL (Rules 104\u2013107)<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 104<\/td><td class=\"r-title\">Interest Rate on Capital<\/td><td class=\"r-key\">Charged in accounts of all Commercial Depts for which separate capital and revenue accounts are maintained \u00b7 Rates prescribed by Govt from time to time<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 105<\/td><td class=\"r-title\">Interest on Capital Outlay<\/td><td class=\"r-key\">Specific loans: at rate prescribed by Govt based on actual interest paid on that loan \u00b7 Other capital outlay: at rate determined each year by DEA, MoF<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 106<\/td><td class=\"r-title\">Method of Calculation of Interest<\/td><td class=\"r-key\">Calculated on direct capital outlay at end of previous year + half the outlay of current year<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 107<\/td><td class=\"r-title\">Writing Back of Capitalised Interest<\/td><td class=\"r-key\">Capitalised interest during construction \u2192 first charge on any capital receipts or surplus revenue from project when opened for working<\/td><\/tr>\n <tr><td class=\"r-num\" colspan=\"3\" style=\"background:#1a3a6b;color:#fff;font-weight:700;letter-spacing:.04em;padding:6px 12px\">VII. ADJUSTMENTS WITH GOVERNMENT DEPARTMENTS (Rules 108\u2013122)<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 108<\/td><td class=\"r-title\">Adjustments with State Governments<\/td><td class=\"r-key\">Mutually agreed basis \u00b7 7 specific matters regulated by Appendix-5 to GAR 1990 (binding on all States)<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 109<\/td><td class=\"r-title\">Re-audit Period<\/td><td class=\"r-key\">3 years accepted for re-audit of past transactions involving errors in classification<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 110<\/td><td class=\"r-title\">When Adjustment Is Necessary<\/td><td class=\"r-key\">Mandatory when a commercial\/store dept is involved, or when an adjustment would have been made if the transaction were between two Central Govt depts<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 111<\/td><td class=\"r-title\">Petty Claims Not to Be Preferred<\/td><td class=\"r-key\">Central Govt and State Govts have agreed not to prefer petty and isolated claims not exceeding \u20b910,000 against one another<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 112<\/td><td class=\"r-title\">Criteria for Reciprocal Arrangement<\/td><td class=\"r-key\">Claim must be both petty AND occasional \u00b7 Covers services rendered (not supplies) \u00b7 Excludes Railway, Posts, Electrical undertakings (commercial) \u00b7 Doubts \u2192 mutual consultation<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 113<\/td><td class=\"r-title\">Projects Jointly Executed by States<\/td><td class=\"r-key\">Expenditure incurred by one Govt and shared by others \u2192 recoveries from other Govts = abatement of charges under relevant expenditure head<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 114\u2013116<\/td><td class=\"r-title\">Agency Functions under Art.258<\/td><td class=\"r-key\">Claims of States for extra cost of agency functions \u00b7 Extra staff\/contingency cost: reimbursed in lumpsum \u00b7 Work entrusted (construction\/maintenance): adjusted direct in Central accounts under relevant Head \u00b7 \u2264\u20b950,000 per item per year: 5-year contract offered to State \u00b7 >\u20b950,000: annual statement required<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 117<\/td><td class=\"r-title\">Closure of Inter-Governmental Adjustments<\/td><td class=\"r-key\">Carried out up to 10th April (or date specified by CGA in consultation with RBI) \u2014 date on which RBI books are closed for March<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 118\u2013122<\/td><td class=\"r-title\">Adjustments with Foreign Govts and Non-Govt Bodies<\/td><td class=\"r-key\">Services to foreign Govts\/non-Govt bodies \u2192 only on payment unless exempted \u00b7 Recoveries for services rendered = receipts of Govt \u00b7 Govt as agent: entire cost recovered (net cost to Govt = nil) \u00b7 Relief to outside body \u2192 through grant-in-aid, not remission of dues<\/td><\/tr>\n <tr><td class=\"r-num\" colspan=\"3\" style=\"background:#1a3a6b;color:#fff;font-weight:700;letter-spacing:.04em;padding:6px 12px\">VIII. INTER-DEPARTMENTAL ADJUSTMENTS (Rules 123\u2013129)<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 123<\/td><td class=\"r-title\">Inter-Departmental Adjustments<\/td><td class=\"r-key\">Service Dept shall NOT charge other depts for services within its normal functions \u00b7 Commercial Dept SHALL charge and be charged for supplies\/services<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 124<\/td><td class=\"r-title\">Service vs Commercial Departments<\/td><td class=\"r-key\">Service Depts: inseparable from Govt functions (Police, Jails, Defence, Medical, etc.) \u00b7 Commercial Depts: render services on payment, work to a financial result under commercial accounts<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 125<\/td><td class=\"r-title\">Period for Preferment of Claims<\/td><td class=\"r-key\">Claims between Depts: within same FY and not beyond 3 years from date of transaction \u00b7 Waivable by mutual agreement<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 126\u2013127<\/td><td class=\"r-title\">Settlement Procedure<\/td><td class=\"r-key\">Regulated by Ch.4 of GAR 1990 \u00b7 Adjustments in account year \u00b7 Recurring payments \u2192 Accounts Officer adjusts automatically before books close \u00b7 Service dept recoveries = deduction from gross expenditure \u00b7 Commercial dept recoveries = receipts of that dept<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 128\u2013129<\/td><td class=\"r-title\">Pensionary Charges \u2014 Commercial Depts<\/td><td class=\"r-key\">Commercial depts with proforma accounts: contribution basis at rates fixed by Govt \u00b7 Without proforma accounts: included in overhead charges \u00b7 Railways\/Posts\/Defence treated as separate Govts for pension adjustment \u00b7 Declared commercial depts: average of percentage for 15th year of service<\/td><\/tr>\n <\/tbody>\n <\/table>\n <\/div>\n\n \n <div style=\"background:#f0f4ff;border-left:5px solid #1a3a6b;padding:10px 18px;border-radius:0 6px 6px 0;margin:10px 0;font-weight:700;color:#1a3a6b;font-size:14px;letter-spacing:.04em;text-transform:uppercase\">Section I \u2014 Preparation, Form and Classification of Accounts (Rules 71\u201387)<\/div>\n\n \n <div class=\"rule-block\" id=\"ch4r71\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 71<\/span><span class=\"rule-title\">Preparation and Presentation of Accounts<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udcd2<\/span><span>Accounts of the Union Government shall be prepared every year showing <strong>receipts and disbursements<\/strong>, <strong>surplus or deficit<\/strong>, and <strong>changes in Government liabilities and assets<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83c\udfdb\ufe0f<\/span><span>Accounts shall be <strong>prepared by the Controller General of Accounts (CGA)<\/strong>, <strong>certified by the Comptroller and Auditor General of India (CAG)<\/strong>, and submitted to the <strong>President of India preferably within six months of close of the Financial Year<\/strong>. <span class=\"tag-red\">\u2757 6 months<\/span><\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcdc<\/span><span>The President shall cause them to be <strong>laid before each House of Parliament<\/strong>.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch4r72\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 72<\/span><span class=\"rule-title\">Form of Accounts \u2014 Article 150<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\u2696\ufe0f<\/span><span>By virtue of <strong>Article 150<\/strong> of the Constitution, the accounts of the Union Government shall be kept in such form as the <strong>President may, on the advice of the CAG, prescribe<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83c\udfdb\ufe0f<\/span><span>The <strong>Controller General of Accounts (CGA), Ministry of Finance (DoE)<\/strong> is responsible for prescribing the form of accounts of the Union and States, and to frame or revise rules and manuals relating thereto on behalf of the President \u2014 on the advice of the CAG.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch4r73\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 73<\/span><span class=\"rule-title\">Principles of Accounting \u2014 Governing Documents<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccb<\/span><span>Main principles for maintenance of Government accounts are contained in:\n <ul class=\"blist-sub\">\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span><strong>Government Accounting Rules, 1990<\/strong><\/span><\/li>\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span><strong>Accounting Rules for Treasuries<\/strong><\/span><\/li>\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span><strong>Account Code Volume-III<\/strong><\/span><\/li>\n <\/ul>\n <\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>Detailed rules for technical departments (Posts, etc.) are in their respective Accounts Manuals or departmental regulations.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch4r74\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 74<\/span><span class=\"rule-title\">Cash-Based Accounting<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udcb0<\/span><span>Government accounts shall be prepared on <strong>cash basis<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>Transactions in Government accounts shall represent <strong>actual cash receipts and disbursements during a financial year<\/strong> \u2014 as distinguished from amounts <em>due<\/em> to or by Government during the same period.<\/span><\/li>\n <li><span class=\"bi\">\u2705<\/span><span>Exception: such book adjustments as may be authorised by Government Accounting Rules 1990 or by general\/special order of the Central Government on the advice of the CAG.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch4r75\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 75<\/span><span class=\"rule-title\">Period of Accounts<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udcc5<\/span><span>The annual accounts of the Central Government shall record transactions which take place during a <strong>financial year running from 1st April to 31st March<\/strong>.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch4r76\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 76<\/span><span class=\"rule-title\">Currency in which Accounts Are Kept<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udcb1<\/span><span>The accounts of Government shall be maintained in <strong>Indian Rupees<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udd04<\/span><span>All <strong>foreign currency transactions and foreign aid<\/strong> shall be brought into account <strong>after conversion into Indian Rupees<\/strong>.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch4r77\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 77<\/span><span class=\"rule-title\">Main Divisions and Structure of Accounts \u2014 Three Parts<\/span><\/div>\n <div class=\"box-blue\">\n <div class=\"box-blue-lbl\">\ud83d\udccc Three Parts of Government Accounts<\/div>\n <table style=\"width:100%;border-collapse:collapse;font-size:14px;margin-top:6px\">\n <thead>\n <tr style=\"background:#1a3a6b;color:#fff\">\n <th style=\"padding:8px 12px\">Part<\/th>\n <th style=\"padding:8px 12px\">Name<\/th>\n <th style=\"padding:8px 12px\">Contents<\/th>\n <\/tr>\n <\/thead>\n <tbody>\n <tr style=\"background:#f0f6ff;border-bottom:1px solid #d0dcef\">\n <td style=\"padding:8px 12px\"><strong>Part I<\/strong><\/td>\n <td style=\"padding:8px 12px\"><strong>Consolidated Fund<\/strong><\/td>\n <td style=\"padding:8px 12px\">Revenue Division (Receipt + Expenditure heads) and Capital Division (Receipt + Expenditure + Public Debt\/Loans\/Advances) \u00b7 Divided into sectors: General Services, Social & Community Services, Economic Services, etc. \u2192 Major Heads \u2192 Sub-Major Heads<\/td>\n <\/tr>\n <tr style=\"background:#e8f0ff;border-bottom:1px solid #d0dcef\">\n <td style=\"padding:8px 12px\"><strong>Part II<\/strong><\/td>\n <td style=\"padding:8px 12px\"><strong>Contingency Fund<\/strong><\/td>\n <td style=\"padding:8px 12px\">Transactions under Art.267 CF (or S.48 of Govt of UT Act 1963) \u00b7 <strong>Single Major Head<\/strong> \u2192 followed by Minor, Sub and\/or Detailed Heads<\/td>\n <\/tr>\n <tr style=\"background:#f0f6ff\">\n <td style=\"padding:8px 12px\"><strong>Part III<\/strong><\/td>\n <td style=\"padding:8px 12px\"><strong>Public Account<\/strong><\/td>\n <td style=\"padding:8px 12px\">Debt (other than in Part I) \u00b7 Reserve funds \u00b7 Deposits \u00b7 Advances \u00b7 Suspense \u00b7 Remittances \u00b7 Cash balances<\/td>\n <\/tr>\n <\/tbody>\n <\/table>\n <\/div>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch4r78\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 78<\/span><span class=\"rule-title\">Classification of Transactions \u2014 Six Tiers and 15-Digit Code<\/span><\/div>\n <div class=\"box-blue\">\n <div class=\"box-blue-lbl\">\ud83d\udccc Six-Tier Classification Structure<\/div>\n <table style=\"width:100%;border-collapse:collapse;font-size:14px;margin-top:6px\">\n <thead>\n <tr style=\"background:#1a3a6b;color:#fff\">\n <th style=\"padding:8px 12px\">Tier<\/th>\n <th style=\"padding:8px 12px\">Head<\/th>\n <th style=\"padding:8px 12px\">Represents<\/th>\n <\/tr>\n <\/thead>\n <tbody>\n <tr style=\"background:#f0f6ff;border-bottom:1px solid #d0dcef\"><td style=\"padding:8px 12px\">1<\/td><td style=\"padding:8px 12px\"><strong>Major Head<\/strong> (incl. Sub-Major)<\/td><td style=\"padding:8px 12px\"><strong>Function<\/strong> of Government<\/td><\/tr>\n <tr style=\"background:#e8f0ff;border-bottom:1px solid #d0dcef\"><td style=\"padding:8px 12px\">2<\/td><td style=\"padding:8px 12px\"><strong>Minor Head<\/strong><\/td><td style=\"padding:8px 12px\"><strong>Programme<\/strong> to achieve the function<\/td><\/tr>\n <tr style=\"background:#f0f6ff;border-bottom:1px solid #d0dcef\"><td style=\"padding:8px 12px\">3<\/td><td style=\"padding:8px 12px\"><strong>Sub-Head<\/strong><\/td><td style=\"padding:8px 12px\"><strong>Scheme<\/strong><\/td><\/tr>\n <tr style=\"background:#e8f0ff;border-bottom:1px solid #d0dcef\"><td style=\"padding:8px 12px\">4<\/td><td style=\"padding:8px 12px\"><strong>Detailed Head<\/strong><\/td><td style=\"padding:8px 12px\"><strong>Sub-scheme<\/strong><\/td><\/tr>\n <tr style=\"background:#f0f6ff;border-bottom:1px solid #d0dcef\"><td style=\"padding:8px 12px\">5<\/td><td style=\"padding:8px 12px\"><strong>Object Head<\/strong><\/td><td style=\"padding:8px 12px\">Primary unit of appropriation \u2014 <strong>economic nature of expenditure<\/strong> (salaries, office expenses, TA, professional services, grants-in-aid, etc.)<\/td><\/tr>\n <tr style=\"background:#e8f0ff\"><td style=\"padding:8px 12px\" colspan=\"3\" style=\"padding:8px 12px;font-style:italic\">The above six tiers are represented by a unique <strong>15-digit numeric code<\/strong><\/td><\/tr>\n <\/tbody>\n <\/table>\n <\/div>\n <ul class=\"blist\" style=\"margin-top:10px\">\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>Classification shall have closer reference to <strong>functions, programmes and activities<\/strong> of the Government and the <strong>object of revenue or expenditure<\/strong>, rather than the department where it occurs.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch4r79\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 79<\/span><span class=\"rule-title\">Authority to Open a New Head of Account<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83c\udfdb\ufe0f<\/span><span><strong>New Major\/Minor Heads<\/strong> \u2014 authorised by <strong>CGA (MoF, DoE)<\/strong> on the advice of the CAG under Art.150 powers.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccb<\/span><span><strong>Sub-Heads and Detailed Heads<\/strong> \u2014 opened by Ministries\/Departments in consultation with the <strong>Budget Division, MoF<\/strong>. Principal Accounts Offices may open Sub\/Detailed Heads under Minor Heads falling within the Public Account.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>Object Heads<\/strong> \u2014 prescribed under DFPR Rule 8. Power to amend\/modify or open new Object Heads rests with <strong>DoE, MoF on the advice of the CAG<\/strong>.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch4r80\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 80<\/span><span class=\"rule-title\">Conformity of Budget Heads with Classification Rules<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>Budget Heads exhibited in estimates of receipts and expenditure framed by the Government, or in any appropriation order, shall <strong>conform to the prescribed rules of classification<\/strong>.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch4r81\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 81<\/span><span class=\"rule-title\">Responsibility of Departmental Officers<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udc64<\/span><span>Every officer responsible for the collection of Government dues or expenditure of Government money shall see that <strong>proper accounts are maintained<\/strong> in the prescribed form, and <strong>tender accurately and promptly all accounts and returns<\/strong> as may be required by Government, Controlling Officer or Accounts Officer.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch4r82\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 82<\/span><span class=\"rule-title\">Classification to Be Recorded on All Bills and Challans<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccb<\/span><span><strong>Drawing Officers<\/strong> shall record suitable classification on <strong>all bills drawn<\/strong> by them.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccb<\/span><span><strong>Departmental Officers<\/strong> responsible for collection shall indicate or record classification on <strong>challans crediting Government money into the Bank<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\u2753<\/span><span>In cases of <strong>doubt<\/strong> regarding the correct Head, the matter shall be referred to the <strong>Principal Accounts Officer \u2192 CGA\/MoF<\/strong> for clarification.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch4r83\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 83<\/span><span class=\"rule-title\">Charged or Voted Expenditure<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\u2696\ufe0f<\/span><span>Expenditure covered under <strong>Article 112(3)<\/strong> of the Constitution is <strong>Charged on the Consolidated Fund<\/strong> and is <strong>not subject to vote by the legislature<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>All <strong>other<\/strong> expenditure met out of the Consolidated Fund is treated as <strong>Voted expenditure<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccb<\/span><span>Charged or Voted expenditure shall be shown <strong>separately<\/strong> both in the accounts and in the Budget documents.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch4r84\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 84<\/span><span class=\"rule-title\">Capital or Revenue Expenditure \u2014 Definitions<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83c\udfd7\ufe0f<\/span><span><strong>Capital Expenditure:<\/strong> Significant expenditure incurred with the object of <strong>acquiring tangible assets of a permanent nature<\/strong> (for use in the organisation and not for sale) or <strong>enhancing the utility of existing assets<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udd27<\/span><span><strong>Revenue Expenditure:<\/strong> Subsequent charges on <strong>maintenance, repair, upkeep and working expenses<\/strong> required to maintain assets in running order + all expenses for <strong>day-to-day running<\/strong> of the organisation including establishment and administrative expenses.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccb<\/span><span>Capital and Revenue expenditure shall be shown <strong>separately<\/strong> in the Accounts.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch4r85\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 85<\/span><span class=\"rule-title\">Banking Arrangements \u2014 RBI as Banker to Government<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83c\udfe6<\/span><span>The <strong>Reserve Bank of India (RBI) shall be the banker to the Government<\/strong>. It shall maintain cash balance of the Government and provide banking facilities either directly through its own offices or through its <strong>agent banks<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>RBI, in consultation with the CGA, shall nominate a bank to function as the <strong>Accredited Bank of a Ministry or Department<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcb3<\/span><span><strong>Pay & Accounts Offices<\/strong> and <strong>Cheque Drawing and Disbursing Officers (CDDOs)<\/strong> shall have <strong>assignment accounts<\/strong> with the identified branches of the Accredited Bank. All payments shall be made through these branches.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcb0<\/span><span><strong>Tax revenues<\/strong> of the Government shall be collected by the RBI through its own offices or through nominated branches of its agent banks.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch4r86\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 86<\/span><span class=\"rule-title\">Public Financial Management System (PFMS)<\/span><\/div>\n <div class=\"box-blue\">\n <div class=\"box-blue-lbl\">\ud83d\udccc PFMS \u2014 Six Key Mandates<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">1\ufe0f\u20e3<\/span><span>PFMS, the <strong>integrated Financial Management System of CGA, GoI<\/strong>, shall be used for <strong>sanction preparation, bill processing, payment, receipt management, DBT, fund flow management and financial reporting<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">2\ufe0f\u20e3<\/span><span>All Ministries sanctioning grant-in-aid shall <strong>register all implementing agencies till the last level of implementation<\/strong> on PFMS to track fund flow and unspent balances.<\/span><\/li>\n <li><span class=\"bi\">3\ufe0f\u20e3<\/span><span>All payments shall, to the extent possible, be released <strong>'just-in-time'<\/strong> by the Ministries through PFMS.<\/span><\/li>\n <li><span class=\"bi\">4\ufe0f\u20e3<\/span><span>Detailed Demands for Grants (DDG), as approved, must be <strong>uploaded on PFMS at the start of each Financial Year<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">5\ufe0f\u20e3<\/span><span>All <strong>re-appropriation orders and surrender orders<\/strong> shall be generated through the PFMS system.<\/span><\/li>\n <li><span class=\"bi\">6\ufe0f\u20e3<\/span><span>All <strong>grantee institutions shall submit Utilisation Certificates (UCs) on PFMS<\/strong>.<\/span><\/li>\n <\/ul>\n <\/div>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch4r87\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 87<\/span><span class=\"rule-title\">Direct Benefit Transfer (DBT)<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83c\udfaf<\/span><span><strong>Sub-rule (1):<\/strong> Transfer of benefits shall be done <strong>directly to beneficiaries<\/strong> using <strong>Information and Communication Technology (ICT)<\/strong>. Process reengineering to minimise intermediary levels, reduce delays, and minimise pilferage and duplication.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udce6<\/span><span><strong>Sub-rule (2):<\/strong> DBT includes <strong>in-kind and cash transfers<\/strong> to beneficiaries, as well as <strong>transfers\/honorariums given to community workers<\/strong> and other enablers of Government schemes.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udd04<\/span><span><strong>Sub-rule (3):<\/strong> Three routes for cash benefits:\n <ul class=\"blist-sub\">\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span><strong>(a)<\/strong> Directly from Ministries\/Departments to beneficiaries<\/span><\/li>\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span><strong>(b)<\/strong> Through <strong>State Treasury Account<\/strong><\/span><\/li>\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span><strong>(c)<\/strong> Through any <strong>Implementing Agency<\/strong> as appointed by Central\/State Governments<\/span><\/li>\n <\/ul>\n <\/span><\/li>\n <li><span class=\"bi\">\ud83d\udce6<\/span><span><strong>Sub-rule (4):<\/strong> <strong>In-kind transfers<\/strong> to individual beneficiary\/household\/service provider \u2014 includes schemes where in-kind benefits are given by Government or through any Implementing Agency.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcbb<\/span><span><strong>Sub-rules (5) & (6):<\/strong> Ministries\/Departments shall use <strong>PFMS platform<\/strong> for processing of DBT payments. Implementing Agencies shall generate <strong>Electronic Utilisation Certificates (E-UCs) on PFMS portal<\/strong> online \u2014 to certify that money was actually utilised for the purpose sanctioned, eliminating the need for physical UCs.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcb0<\/span><span><strong>Sub-rule (7):<\/strong> Transaction charges for financial intermediaries facilitating DBT payments shall be paid as stipulated by <strong>Ministry of Finance<\/strong>.<\/span><\/li>\n <\/ul>\n <\/div>\n\n \n <div style=\"background:#e8f0ff;border-left:5px solid #1a3a6b;padding:10px 18px;border-radius:0 6px 6px 0;margin:44px 0 10px;font-weight:700;color:#1a3a6b;font-size:14px;letter-spacing:.04em;text-transform:uppercase\">Section II \u2014 Annual Accounts (Rules 88\u201391)<\/div>\n\n \n <div class=\"rule-block\" id=\"ch4r88\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 88<\/span><span class=\"rule-title\">Appropriation Accounts<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccb<\/span><span>Appropriation Accounts of Central Ministries (except Railways) and Civil Departments (except Posts and Defence) shall be <strong>prepared by the Principal Accounts Officers<\/strong> of the respective Ministries\/Departments (under guidance and supervision of CGA) and <strong>signed by the Chief Accounting Authority (Secretary)<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcd2<\/span><span><strong>Union Government Appropriation Accounts (Civil)<\/strong> submitted to Parliament shall be <strong>prepared by the CGA<\/strong> by consolidating the aforesaid Appropriation Accounts.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>Special cases:\n <ul class=\"blist-sub\">\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span><strong>Department of Posts:<\/strong> Prepared and signed by the <strong>Secretary, Dept of Posts<\/strong><\/span><\/li>\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span><strong>Defence Services:<\/strong> Prepared and signed by the <strong>Secretary, Ministry of Defence<\/strong><\/span><\/li>\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span><strong>Ministry of Railways:<\/strong> Signed by the <strong>Chairman, Railway Board<\/strong><\/span><\/li>\n <\/ul>\n <\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch4r89\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 89<\/span><span class=\"rule-title\">Finance Accounts<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udcd2<\/span><span>Annual accounts of the Government of India \u2014 including transactions of Posts, Defence, Railways, and UT Governments under the Public Account \u2014 showing annual receipts, disbursements and statement of balances, are called <strong>Finance Accounts<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\u270d\ufe0f<\/span><span>Finance Accounts shall be <strong>prepared and signed by the CGA<\/strong> and <strong>countersigned by the Secretary (Expenditure), Ministry of Finance<\/strong>.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch4r90\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 90<\/span><span class=\"rule-title\">Presentation of Annual Accounts<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udcc5<\/span><span>Appropriation and Finance Accounts shall be prepared on <strong>dates mutually agreed upon with the CAG<\/strong>, in forms prescribed by the President on the advice of the CAG, and sent to the CAG for recording his\/her certificate.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcdc<\/span><span>The certified Annual Accounts and Reports shall be submitted by the <strong>CAG to the President<\/strong> in accordance with <strong>Section 11 of the CAG (Duties, Powers and Conditions of Service) Act, 1971<\/strong> and <strong>Article 151(1)<\/strong> of the Constitution.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch4r91\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 91<\/span><span class=\"rule-title\">Disclosure of Financial Stakes in PPP \/ JV \/ Subsidiary Companies<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udce2<\/span><span>Administrative Ministries \/ PSUs \/ Subordinate \/ Statutory \/ Autonomous Bodies may have financial stakes in <strong>PPP \/ Production Sharing Contracts (PSCs) \/ Joint Ventures (JVs) \/ Subsidiary companies<\/strong>. Details of such financial stakes shall be <strong>disclosed in the Annual Report of the Administrative Ministry<\/strong>.<\/span><\/li>\n <\/ul>\n <\/div>\n\n \n <div style=\"background:#f0faf5;border-left:5px solid #2aab6e;padding:10px 18px;border-radius:0 6px 6px 0;margin:44px 0 10px;font-weight:700;color:#1a6b5a;font-size:14px;letter-spacing:.04em;text-transform:uppercase\">Sections III & IV \u2014 Proforma Accounts and Personal Deposit Accounts (Rules 92\u201397)<\/div>\n\n \n <div class=\"rule-block\" id=\"ch4r92\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 92<\/span><span class=\"rule-title\">Subsidiary Accounts of Commercial Government Departments<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83c\udfed<\/span><span>Where operations of certain Government Departments working on a <strong>commercial or quasi-commercial basis<\/strong> (e.g., industrial factory or store) cannot be suitably brought within the cash-based accounting system, the Head of the unit shall maintain <strong>subsidiary proforma accounts in commercial form<\/strong>, as agreed between Government and CAG.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcd2<\/span><span>This includes maintenance of <strong>Manufacturing, Trading, Profit & Loss Accounts and Balance Sheet<\/strong>.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch4r93\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rules 93\u201395<\/span><span class=\"rule-title\">Methods, Cost Accuracy and Submission of Proforma Accounts<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccb<\/span><span><strong>R.93:<\/strong> Methods and principles for proforma accounts shall be <strong>regulated by orders and instructions issued by Government<\/strong> in each case. Regular Workshops\/Factories follow departmental regulations; Public Works proforma accounts prepared by Accounts Officers per Account Code for Accountants General.<\/span><\/li>\n <li><span class=\"bi\">\u2705<\/span><span><strong>R.94:<\/strong> Where commercial accounts are maintained for <strong>cost assessment<\/strong>, the Head of the unit shall ensure that <strong>adequate regulations are framed with Government approval<\/strong> to ensure the cost deduced is <strong>accurate and true<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcc5<\/span><span><strong>R.95:<\/strong> Such accounts and statements shall be submitted to the <strong>Accounts Officer on such date as required<\/strong> and shall be <strong>appended to the Appropriation Accounts<\/strong> of each year.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch4r96\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 96<\/span><span class=\"rule-title\">Personal Deposit Account \u2014 Concept<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83c\udfe6<\/span><span>A <strong>Personal Deposit (PD) Account<\/strong> is a device to facilitate the <strong>Designated Officer<\/strong> to credit receipts into and effect withdrawals directly from the account, subject to an overall check by the bank.<\/span><\/li>\n <li><span class=\"bi\">\u26d4<\/span><span>The Designated Officer shall ensure that <strong>no withdrawal will result in a minus balance<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udc64<\/span><span>Only <strong>Government officers acting in their official or any other capacity<\/strong> shall be the Designated Officer.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch4r97\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 97<\/span><span class=\"rule-title\">Authority to Open Personal Deposit Account \u2014 Five Types<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83c\udfdb\ufe0f<\/span><span><strong>Sub-rule (1):<\/strong> Authorised to be opened by a <strong>special order of the concerned Ministry\/Department in consultation with the CGA<\/strong>. Every PD Account shall <strong>form part of the Government Account<\/strong> and be located in the <strong>Public Account<\/strong>.<\/span><\/li>\n <\/ul>\n <div class=\"box-amber\">\n <div class=\"box-amber-lbl\">\u2b50 Five Types of Cases \u2014 PD Accounts Authorised<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">1\ufe0f\u20e3<\/span><span><strong>(a)<\/strong> In favour of Designated Officer administering monies tendered by or on behalf of <strong>wards and attached estates<\/strong> under Government management<\/span><\/li>\n <li><span class=\"bi\">2\ufe0f\u20e3<\/span><span><strong>(b)<\/strong> In relation to <strong>Civil and Criminal Courts' deposits<\/strong> \u2014 in favour of the Chief Judicial Authority concerned<\/span><\/li>\n <li><span class=\"bi\">3\ufe0f\u20e3<\/span><span><strong>(c)<\/strong> Where, under certain <strong>regulatory activities<\/strong> of Government, receipts are realised and credited to a Fund\/Account under an Act to be utilised thereunder \u2014 and <strong>no outgo from the Consolidated Fund is involved<\/strong><\/span><\/li>\n <li><span class=\"bi\">4\ufe0f\u20e3<\/span><span><strong>(d)<\/strong> Where a PD Account is required to be created by a <strong>law or rules having the force of law<\/strong> and certain liabilities devolve on Government out of special enactments<\/span><\/li>\n <li><span class=\"bi\">5\ufe0f\u20e3<\/span><span><strong>(e)<\/strong> Officers commanding units and others concerned in the administration of <strong>public funds in the Defence Departments<\/strong><\/span><\/li>\n <\/ul>\n <\/div>\n <\/div>\n\n \n <div style=\"background:#fffbe6;border-left:5px solid #c9a227;padding:10px 18px;border-radius:0 6px 6px 0;margin:44px 0 10px;font-weight:700;color:#7a5500;font-size:14px;letter-spacing:.04em;text-transform:uppercase\">Section V \u2014 Capital and Revenue Accounts (Rules 98\u2013103)<\/div>\n\n \n <div class=\"rule-block\" id=\"ch4r98\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 98<\/span><span class=\"rule-title\">Capital Expenditure \u2014 Detailed Definition and Rules<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83c\udfd7\ufe0f<\/span><span>Capital expenditure = significant expenditure to acquire <strong>tangible assets of a permanent nature<\/strong> (not for sale) or to <strong>enhance the utility of existing assets<\/strong>. Revenue expenditure = maintenance, repair, upkeep, working expenses and establishment\/administrative costs.<\/span><\/li>\n <li><span class=\"bi\">\u26d4<\/span><span><strong>Temporary assets and grants-in-aid<\/strong> cannot ordinarily be classified as Capital expenditure unless specifically authorised by the <strong>President on the advice of the CAG<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcb0<\/span><span>Capital expenditure is generally met from <strong>capital receipts<\/strong> (as distinguished from ordinary revenues from taxes, duties, fees, fines). However, it is open to Government to meet capital expenditure from ordinary revenues if <strong>sufficient revenue resources<\/strong> are available.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccb<\/span><span>Expenditure of a capital nature shall <strong>not be classed as Capital expenditure<\/strong> in Government Accounts unless the classification has been <strong>expressly authorised by general or special orders of Government<\/strong>. Must be distinguished from Revenue expenditure in both Budget Estimates and Accounts.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch4r99\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 99<\/span><span class=\"rule-title\">Principles for Allocation between Capital and Revenue \u2014 Five Principles<\/span><\/div>\n <div class=\"box-blue\">\n <div class=\"box-blue-lbl\">\ud83d\udccc Five Principles of Capital vs Revenue Allocation<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83c\udd50<\/span><span><strong>(a) Capital bears:<\/strong> Charges for <strong>first construction and equipment<\/strong> of a project \u00b7 <strong>Intermediate maintenance<\/strong> while not yet opened for service \u00b7 <strong>Improvements enhancing asset life<\/strong> (as sanctioned under rules of competent authority)<\/span><\/li>\n <li><span class=\"bi\">\ud83c\udd51<\/span><span><strong>(b) Revenue bears:<\/strong> Subsequent charges for <strong>maintenance and all working expenses<\/strong> \u00b7 Expenditure on working and upkeep of the project \u00b7 Renewals, replacements, additions or improvements of revenue nature<\/span><\/li>\n <li><span class=\"bi\">\ud83c\udd52<\/span><span><strong>(c) Renewal\/Replacement (mixed nature):<\/strong> <strong>Revenue should pay or provide a fund<\/strong> for adequate replacement of all wastage or depreciation of property originally provided from capital grants. Only the cost of genuine improvements enhancing asset life may be debited to Capital. Where a Depreciation\/Renewals Reserve Fund is established, distribution shall guard against over-capitalisation on the one hand and excessive Fund withdrawals on the other.<\/span><\/li>\n <li><span class=\"bi\">\ud83c\udd53<\/span><span><strong>(d) Extraordinary calamities<\/strong> (flood, fire, earthquake, enemy action, etc.): Expenditure charged to Capital, Revenue, or divided between them \u2014 depending on whether <strong>new asset is created<\/strong> (Capital) or <strong>existing asset is merely restored<\/strong> (Revenue), as determined by Government.<\/span><\/li>\n <li><span class=\"bi\">\ud83c\udd54<\/span><span><strong>(e) Temporary assets<\/strong> \u2192 not Capital expenditure except where specifically authorised by the <strong>President on the advice of the CAG<\/strong>.<\/span><\/li>\n <\/ul>\n <\/div>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch4r100\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 100<\/span><span class=\"rule-title\">Allocation between Capital and Revenue on Capital Schemes<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccb<\/span><span>For Capital schemes where separate Capital and Revenue Accounts are kept, allocation shall be determined in accordance with <strong>Govt orders prescribed after consultation with the CAG<\/strong>.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch4r101\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 101<\/span><span class=\"rule-title\">Capital Receipts during Construction \u2014 Utilised to Reduce Capital Expenditure<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>Capital receipts relating to expenditure previously debited to Capital, accruing <strong>during the process of construction<\/strong>, shall be <strong>utilised in reduction of capital expenditure<\/strong>. Thereafter they shall <strong>not be credited to the revenue account<\/strong> except under special rule or order of Government.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch4r102\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 102<\/span><span class=\"rule-title\">Receipts Representing Recoveries of Capital Expenditure<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>Receipts and recoveries on Capital Account in so far as they represent <strong>recoveries of expenditure previously debited to a Capital Major Head<\/strong> shall be taken in <strong>reduction of expenditure under that Major Head<\/strong> \u2014 except where rules of allocation for a particular department require them to be taken to Revenue.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch4r103\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 103<\/span><span class=\"rule-title\">Conversion of Outstanding Loans into Equity Investments or Grants-in-Aid<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udd04<\/span><span>Where loans outstanding against PSUs are proposed to be <strong>converted into equity investments or grants-in-aid<\/strong>, <strong>approval of Parliament<\/strong> shall be obtained by including a <strong>token provision in the relevant DFG or Supplementary DFG<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcd2<\/span><span>After obtaining Parliamentary approval, the balances under loans and progressive expenditure shall be <strong>corrected proforma in the relevant Accounts<\/strong> under the Loan\/Capital Major Heads concerned.<\/span><\/li>\n <\/ul>\n <\/div>\n\n \n <div style=\"background:#f0f4ff;border-left:5px solid #1a3a6b;padding:10px 18px;border-radius:0 6px 6px 0;margin:44px 0 10px;font-weight:700;color:#1a3a6b;font-size:14px;letter-spacing:.04em;text-transform:uppercase\">Section VI \u2014 Interest on Capital (Rules 104\u2013107)<\/div>\n\n \n <div class=\"rule-block\" id=\"ch4r104\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 104<\/span><span class=\"rule-title\">Interest Rate on Capital \u2014 Commercial Departments<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udcb0<\/span><span>Interest at rates <strong>specified by Government from time to time<\/strong> shall be charged in the accounts of all <strong>Commercial Departments or units<\/strong> for which separate capital and revenue accounts are maintained within Government accounts.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch4r105\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 105<\/span><span class=\"rule-title\">Charging Interest on Capital Outlay \u2014 Two Methods<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83c\udfe6<\/span><span><strong>Sub-rule (1) \u2014 Specific Loans:<\/strong> For capital outlay met from <strong>specific loans raised by Government<\/strong>, interest shall be charged at a rate prescribed by Government, having regard to the rate of interest actually paid on such loans and incidental charges. Specific loans = loans raised in the open market for one specific purpose clearly specified in the prospectus.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcb0<\/span><span><strong>Sub-rule (2) \u2014 Other Capital Outlay:<\/strong> For capital outlay provided otherwise, interest shall be charged at a rate determined <strong>each year by the Department of Economic Affairs, MoF<\/strong>.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch4r106\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 106<\/span><span class=\"rule-title\">Method of Calculation of Interest on Capital<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udcd0<\/span><span>Interest shall be calculated on the <strong>direct capital outlay at the end of the previous year + half the outlay of the current year itself<\/strong> \u2014 irrespective of whether such outlay has been met from current revenues or from other sources.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch4r107\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 107<\/span><span class=\"rule-title\">Writing Back of Capitalised Interest<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>When charges for interest during the process of construction are temporarily met from capital, the <strong>writing back of capitalised interest shall form the first charge<\/strong> on any capital receipts or surplus revenue derived from the project when opened for working.<\/span><\/li>\n <\/ul>\n <\/div>\n\n \n <div style=\"background:#f0faf5;border-left:5px solid #2aab6e;padding:10px 18px;border-radius:0 6px 6px 0;margin:44px 0 10px;font-weight:700;color:#1a6b5a;font-size:14px;letter-spacing:.04em;text-transform:uppercase\">Sections VII & VIII \u2014 Adjustments with Govts, Departments and Inter-Departmental (Rules 108\u2013129)<\/div>\n\n \n <div class=\"rule-block\" id=\"ch4r108\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 108<\/span><span class=\"rule-title\">Adjustments with State Governments \u2014 Seven Specific Matters<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>Adjustments with State Governments shall be made as <strong>mutually agreed<\/strong> between the Central and State Government concerned, unless otherwise provided by the Constitution or law.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccb<\/span><span>Seven specific matters are regulated by <strong>Appendix-5 to the Government Accounting Rules, 1990<\/strong> (binding on all State Governments):\n <ul class=\"blist-sub\">\n <li><span class=\"bsi\">1\ufe0f\u20e3<\/span><span>Pay and Allowances (other than Leave Salaries)<\/span><\/li>\n <li><span class=\"bsi\">2\ufe0f\u20e3<\/span><span>Leave Salaries<\/span><\/li>\n <li><span class=\"bsi\">3\ufe0f\u20e3<\/span><span>Pensions<\/span><\/li>\n <li><span class=\"bsi\">4\ufe0f\u20e3<\/span><span>Expenditure involved in Audit and keeping Accounts<\/span><\/li>\n <li><span class=\"bsi\">5\ufe0f\u20e3<\/span><span>Cost of Police functions on Railways including cost of protecting Railway Bridges<\/span><\/li>\n <li><span class=\"bsi\">6\ufe0f\u20e3<\/span><span>Cost of Forest Surveys by Survey of India and Forest maps prepared by that Department<\/span><\/li>\n <li><span class=\"bsi\">7\ufe0f\u20e3<\/span><span>Leave Salary and Pension Contributions recovered in respect of Government servants lent on Foreign Service<\/span><\/li>\n <\/ul>\n <\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch4r109\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 109<\/span><span class=\"rule-title\">Re-audit \u2014 Three Year Period<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udcc5<\/span><span>As a convention, a period of <strong>three years<\/strong> has been accepted by Central and State Governments for the <strong>re-audit of past transactions involving errors in classification<\/strong>. <span class=\"tag-red\">\u2757 3 years<\/span><\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch4r110\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 110<\/span><span class=\"rule-title\">When Adjustment with State Govt is Necessary<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>Adjustment shall always be made unless otherwise agreed upon, if:\n <ul class=\"blist-sub\">\n <li><span class=\"bsi\">(a)<\/span><span>A <strong>commercial department or undertaking or a regularly organised store department<\/strong> is concerned, or<\/span><\/li>\n <li><span class=\"bsi\">(b)<\/span><span>Under the operation of any rule or order, an adjustment would have been made if the particular transaction with State Government <strong>were a transaction between two departments of the Central Government<\/strong><\/span><\/li>\n <\/ul>\n <\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch4r111\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 111<\/span><span class=\"rule-title\">Petty and Isolated Claims \u2014 Not to Be Preferred<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>The Central Government (including Union Territories) and the State Governments have agreed under <strong>reciprocal arrangements not to prefer petty and isolated claims for an amount not exceeding \u20b910,000<\/strong> against one another. <span class=\"tag-red\">\u2757 \u20b910,000<\/span><\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch4r112\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 112<\/span><span class=\"rule-title\">Criteria for Reciprocal Arrangement<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>For a claim to be covered by the reciprocal arrangement, it must be:\n <ul class=\"blist-sub\">\n <li><span class=\"bsi\">\u2705<\/span><span>Both <strong>petty AND of an occasional character<\/strong><\/span><\/li>\n <li><span class=\"bsi\">\u2705<\/span><span>Cover <strong>services rendered<\/strong> \u2014 not supplies (unless the latter forms part of the service)<\/span><\/li>\n <\/ul>\n <\/span><\/li>\n <li><span class=\"bi\">\u26d4<\/span><span>Claims relating to <strong>Commercial undertakings<\/strong> (Railways, Posts, Electrical undertakings, etc.) shall <strong>fall outside<\/strong> the purview and continue to be settled as hitherto.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcc5<\/span><span>Arrangement remains in force <strong>without any time limit<\/strong> in respect of all State Governments.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch4r113\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 113<\/span><span class=\"rule-title\">Projects Jointly Executed by Several State Governments<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83c\udfd7\ufe0f<\/span><span>Where expenditure is to be shared by several participating Governments in agreed proportions but incurred ab-initio by one Government, <strong>recoveries from other Governments shall be exhibited as abatement of charges<\/strong> under the relevant expenditure Head of Account in the books of the Government incurring the expenditure initially.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch4r114\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rules 114\u2013116<\/span><span class=\"rule-title\">Agency Functions under Article 258 \u2014 Claims of State Governments<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccb<\/span><span><strong>R.114:<\/strong> Claims of State Governments for extra cost of agency functions under <strong>Article 258<\/strong> shall be dealt with and settled in accordance with such directions as may be issued by the President.<\/span><\/li>\n <li><span class=\"bi\">\ud83c\udfed<\/span><span><strong>R.115 \u2014 Key principles:<\/strong>\n <ul class=\"blist-sub\">\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span>State Commercial Department engaged \u2192 may charge its <strong>normal commercial costs<\/strong><\/span><\/li>\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span>PWD agency costs \u2192 <strong>percentage charges on cost<\/strong> of Central Works as agreed between Centre and State<\/span><\/li>\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span>Charges per item \u2264 <strong>\u20b950,000 per annum<\/strong> \u2192 offer <strong>5-year contract<\/strong> at fixed sum per annum (reviewed every 5 years) <span class=\"tag-red\">\u2757 \u20b950,000 \/ 5-year<\/span><\/span><\/li>\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span>Charges per item > \u20b950,000 \u2192 <strong>annual statement<\/strong> of proposed charges required at budget time (contract system may still be adopted if charges are obviously static)<\/span><\/li>\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span>Arbitration in exceptional cases \u2192 arranged by MoF \u00b7 MoF to be consulted on all Art.258(3) matters<\/span><\/li>\n <\/ul>\n <\/span><\/li>\n <li><span class=\"bi\">\ud83d\udd04<\/span><span><strong>R.116 \u2014 Procedure for transactions:<\/strong>\n <ul class=\"blist-sub\">\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span><strong>Extra staff\/contingency cost<\/strong> (e.g., Census administration): provided in State Budget first; <strong>reimbursed in lumpsum<\/strong> by Centre under distinct sub-head \"Amounts paid to other Governments, Departments, etc.\"<\/span><\/li>\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span><strong>Work entrusted to State<\/strong> (e.g., National Highways, Defence Works): expenditure adjusted <strong>direct in Central accounts<\/strong> under relevant Head \u00b7 adjusted under <strong>Head 8658 \u2014 Suspense Accounts \u2014 PAO Suspense<\/strong> in State accounts pending eventual clearance<\/span><\/li>\n <\/ul>\n <\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch4r117\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 117<\/span><span class=\"rule-title\">Crucial Date for Closure of Inter-Governmental Adjustments<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udcc5<\/span><span>Inter-Governmental adjustments can be carried out up to the <strong>10th of April<\/strong> (or the date specified by CGA in consultation with RBI from time to time) \u2014 which is the date on which the books of the Reserve Bank are closed for the month of March. <span class=\"tag-red\">\u2757 10th April<\/span><\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>Every endeavour must be made to <strong>settle all transactions with State Governments before the close of the year<\/strong>.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch4r118\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 118<\/span><span class=\"rule-title\">Adjustments with Foreign Governments and Outside Bodies \u2014 Services Only on Payment<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83c\udf10<\/span><span>Unless exempted by Government by general or special orders, services shall <strong>not be rendered to any foreign Government or non-Government body or institution or to a separate fund<\/strong> except <strong>on payment<\/strong>.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch4r119\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 119<\/span><span class=\"rule-title\">Recoveries for Services Rendered to Non-Government Parties \u2014 Classified as Receipts<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>Recoveries of expenditure for services rendered or supplies made to <strong>non-Government parties or other Governments<\/strong> (including local funds and Governments outside India) shall, in all cases, be <strong>classified as receipts<\/strong> of the Government rendering such services.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch4r120\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 120<\/span><span class=\"rule-title\">Recoveries Where Government Acts as Agent \u2014 Net Cost to Government = Nil<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>When a Government undertakes a service merely as an <strong>agent of a private body<\/strong>, the <strong>entire cost of the service shall be recovered<\/strong> from that body so that the <strong>net cost to Government is nil<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>The recoveries shall be taken as <strong>reduction of expenditure<\/strong>.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch4r121\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 121<\/span><span class=\"rule-title\">Relief to Outside Body \u2014 Through Grant-in-Aid, Not Remission of Dues<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>Any relief in respect of payment for services rendered or supplies made to any outside body or fund shall ordinarily be given through a <strong>grant-in-aid<\/strong> rather than by <strong>remission of dues<\/strong>.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch4r122\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 122<\/span><span class=\"rule-title\">Charges Relating to Maintenance and Demarcation of International Boundaries<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83c\udf0d<\/span><span><strong>Maintenance:<\/strong> <strong>Half the maintenance charges<\/strong> shall be borne by the Central Government; the other half recovered from the foreign country. If recovery fails, the foreign country's share shall also be borne by the Central Government.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccb<\/span><span><strong>Demarcation and Disputes:<\/strong> Charges relating to demarcation of boundaries and boundary disputes shall be borne by the Central Government under <strong>Entry 10 of the Union List<\/strong>, subject to such recovery as shall be made from the foreign country.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udca7<\/span><span><strong>Watercourse boundaries<\/strong> (median line principle): Each Government bears the cost of maintenance of the boundary line and survey marks on <strong>its own side<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>Exceptions:<\/strong> Application to <strong>Nepal<\/strong> \u2014 subject to special arrangements worked out in consultation with Nepal Government. <strong>Bhutan's<\/strong> share for maintenance, demarcation and disputes shall be <strong>borne by the Central Government for the present<\/strong>.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch4r123\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 123<\/span><span class=\"rule-title\">Inter-Departmental Adjustments \u2014 Service vs Commercial Departments<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\u26d4<\/span><span>A <strong>Service Department shall NOT charge other Departments<\/strong> for services rendered or supplies made which fall within the class of duties for which it is constituted.<\/span><\/li>\n <li><span class=\"bi\">\u2705<\/span><span>A <strong>Commercial Department or undertaking shall ordinarily charge<\/strong> and be charged for any supplies made and services rendered to, or by, other departments of Government.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch4r124\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 124<\/span><span class=\"rule-title\">Division of Departments \u2014 Service vs Commercial<\/span><\/div>\n <div class=\"box-amber\">\n <div class=\"box-amber-lbl\">\u2b50 Service vs Commercial Departments<\/div>\n <table style=\"width:100%;border-collapse:collapse;font-size:14px;margin-top:6px\">\n <thead>\n <tr style=\"background:#c9a227;color:#1a3400\">\n <th style=\"padding:8px 12px;text-align:left\">Type<\/th>\n <th style=\"padding:8px 12px;text-align:left\">Description<\/th>\n <th style=\"padding:8px 12px;text-align:left\">Examples<\/th>\n <\/tr>\n <\/thead>\n <tbody>\n <tr style=\"background:#fffdf0;border-bottom:1px solid #e8e0c0\">\n <td style=\"padding:8px 12px\"><strong>Service Departments<\/strong><\/td>\n <td style=\"padding:8px 12px\">Discharge functions inseparable from Govt or necessary for its general conduct \u00b7 Do NOT charge other depts for normal functions<\/td>\n <td style=\"padding:8px 12px\">Police, Jails, Justice, Education, Medical, Public Health, Forest, Defence, Survey, Govt Printing, Stationery, CPWD, DGS&D<\/td>\n <\/tr>\n <tr style=\"background:#fff8e8\">\n <td style=\"padding:8px 12px\"><strong>Commercial Departments<\/strong><\/td>\n <td style=\"padding:8px 12px\">Render services or provide supplies on payment \u00b7 Work to a financial result through commercial accounts \u00b7 Functions not necessarily governmental<\/td>\n <td style=\"padding:8px 12px\">Railways, Department of Posts, Electrical Undertakings, Industrial Factories\/Stores<\/td>\n <\/tr>\n <\/tbody>\n <\/table>\n <\/div>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch4r125\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 125<\/span><span class=\"rule-title\">Period for Preferment of Inter-Departmental Claims<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udcc5<\/span><span>All claims shall ordinarily be preferred between Departments within the <strong>same financial year<\/strong> and <strong>not beyond three years from the date of transaction<\/strong>. This limitation may be waived in specific cases by <strong>mutual agreement<\/strong>. <span class=\"tag-red\">\u2757 3 years<\/span><\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch4r126\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 126<\/span><span class=\"rule-title\">Procedure for Settlement of Inter-Departmental Adjustments<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccb<\/span><span>Settlement of inter-departmental adjustments shall be regulated by the directions contained in <strong>Chapter 4 of Government Accounting Rules, 1990<\/strong>.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch4r127\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 127<\/span><span class=\"rule-title\">Inter-Departmental Adjustments to Be Made in the Account Year<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udcc5<\/span><span>Inter-departmental and other adjustments are to be made in the <strong>accounts of the current year<\/strong>, not the past year, if they could not have been reasonably anticipated in time for funds to be obtained from the proper authority.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>For <strong>recurring or fixed-character payments<\/strong> to another Government or department, the Accounts Officer will <strong>automatically make the adjustment before the accounts are finally closed<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\u2696\ufe0f<\/span><span>The <strong>onus of proving that adjustments could not have been reasonably anticipated<\/strong> shall lie with the <strong>Controlling Officer<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>Classification of recoveries<\/strong> between departments of the same Government:\n <ul class=\"blist-sub\">\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span>Recoveries by a <strong>Service Department<\/strong> for services rendered to another Dept = <strong>deduction from gross expenditure<\/strong><\/span><\/li>\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span>Recoveries by a <strong>Commercial Department<\/strong> (Railways, Posts, etc.) for its constituted functions = <strong>receipts of that Department<\/strong><\/span><\/li>\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span>Commercial Dept acting as <strong>agent<\/strong> for functions not germane to its essential purpose = <strong>reduction of expenditure<\/strong><\/span><\/li>\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span>Exception: Recoveries of fees for purchase, inspection, etc. by <strong>Central Purchase Organisations<\/strong> of GoI = treated as <strong>receipts of the Department concerned<\/strong><\/span><\/li>\n <\/ul>\n <\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccb<\/span><span>Recoveries classified as deduction from gross expenditure shall be shown in the relevant DFG as <strong>\"below the line\" recovery<\/strong> under the appropriate Major Head. Recovery actually effected shall be adjusted in the schedule of recovery attached to the <strong>Appropriation Account of the year in which recovery is effected<\/strong>.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch4r128\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 128<\/span><span class=\"rule-title\">Adjustment of Pensionary Charges of Commercial Departments<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udcb0<\/span><span><strong>With proforma commercial accounts:<\/strong> Pensionary liability of commercial departments and undertakings shall be assessed on a <strong>contribution basis at rates fixed by Government<\/strong> from time to time.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcb0<\/span><span><strong>Without proforma commercial accounts<\/strong> (but allowed to charge for products\/services): Pensionary liability shall be taken into account in <strong>overhead charges and manufacturing costs<\/strong> for calculating the issue price of goods or fees for services rendered, at <strong>rates prescribed by Government<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>Note:<\/strong> The <strong>Railways, Posts and Defence Departments<\/strong> are regarded as <strong>separate Governments<\/strong> for the purpose of adjustment of pensionary charges.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch4r129\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 129<\/span><span class=\"rule-title\">Pensionary Liability for Government Departments Declared as Commercial<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udcd0<\/span><span>In the case of Government Departments and Undertakings <strong>declared as commercial<\/strong>, adjustment of pensionary liability shall be made in the regular accounts by charging the <strong>average of the percentage for the 15th year of service<\/strong>, based on the rates of monthly contribution of pension as prescribed in the appropriate order issued from time to time under <strong>Appendix-II of Fundamental and Supplementary Rules<\/strong>.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"box-amber\" style=\"margin-top:36px\">\n <div class=\"box-amber-lbl\">\u2b50 Numbers and Key Facts to Remember \u2014 Chapter 4<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>6 months<\/strong> \u2014 preferred time limit for submission of accounts to President after close of FY (R.71)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>Art.150<\/strong> \u2014 form of accounts prescribed by President on advice of CAG \u00b7 CGA prescribes on behalf of President (R.72)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>Cash-based accounting<\/strong> \u2014 actual cash receipts and disbursements, not amounts due (R.74)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>Three Parts<\/strong> of accounts: Consolidated Fund (Part I) \u00b7 Contingency Fund (Part II, single Major Head) \u00b7 Public Account (Part III) (R.77)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>Six tiers<\/strong>: Major Head (function) \u2192 Minor Head (programme) \u2192 Sub-Head (scheme) \u2192 Detailed Head (sub-scheme) \u2192 Object Head (economic nature) \u00b7 <strong>15-digit code<\/strong> (R.78)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>PFMS<\/strong> \u2014 integrated FMS of CGA \u00b7 'just-in-time' payments \u00b7 DDG uploaded at start of FY \u00b7 re-appropriation\/surrender orders through PFMS (R.86)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>DBT \u2014 three routes<\/strong>: directly from Ministry \/ State Treasury Account \/ Implementing Agency \u00b7 E-UCs on PFMS portal (R.87)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>Finance Accounts<\/strong>: prepared and signed by CGA \u00b7 countersigned by Secretary (Expenditure), MoF (R.89)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>Art.112(3)<\/strong> \u2014 Charged expenditure; not subject to vote \u00b7 All others = Voted (R.83)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>Capital interest formula<\/strong>: outlay at end of previous year + \u00bd outlay of current year (R.106)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>7 specific matters<\/strong> with State Govts regulated by Appendix-5 to GAR 1990 (R.108)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>\u20b910,000<\/strong> \u2014 petty claims not preferred under reciprocal arrangement (R.111)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>\u20b950,000 per annum<\/strong> \u2014 threshold for 5-year contract vs annual statement for Art.258 agency work (R.115)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>10th April<\/strong> \u2014 Inter-Governmental adjustments closed (RBI books close for March) (R.117)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>3 years<\/strong> \u2014 period for preferment of inter-departmental claims \u00b7 also period for re-audit (R.109, R.125)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>Railways, Posts and Defence<\/strong> \u2014 treated as separate Governments for pensionary charges adjustment (R.128)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>Head <strong>8658 \u2014 PAO Suspense<\/strong>: used for State expenditure on Central works pending clearance (R.116)<\/span><\/li>\n <\/ul>\n <\/div>\n <\/div>\n\n \n \n\n <div id=\"ch5\" class=\"ch-block\">\n\n <div class=\"ch-banner\">\n <div class=\"ch-num\">Chapter 5<\/div>\n <div class=\"ch-title\">Works<\/div>\n <div class=\"ch-range\">Rules 130 to 141 \u00b7 Definitions \u00b7 Execution \u00b7 Review of Projects<\/div>\n <\/div>\n\n \n <div class=\"idx-outer\">\n <div class=\"idx-lbl\">Rules at a Glance<\/div>\n <table class=\"idx-table\">\n <thead><tr><th style=\"width:110px\">Rule No.<\/th><th>Rule Title<\/th><th>Key Point<\/th><\/tr><\/thead>\n <tbody>\n <tr><td class=\"r-num\">Rule 130<\/td><td class=\"r-title\">Definitions \u2014 Original, Minor, Repair Works<\/td><td class=\"r-key\">Original = new constructions + additions + alterations + special repairs to purchased\/abandoned structures \u00b7 Minor = adds capital value, no new asset \u00b7 Repair = maintains existing buildings & fixtures<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 131<\/td><td class=\"r-title\">Administrative Control of Works<\/td><td class=\"r-key\">3 elements \u2014 Full responsibility for construction\/maintenance \u00b7 Proper utilisation \u00b7 Provision of funds<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 132<\/td><td class=\"r-title\">Powers to Sanction Works<\/td><td class=\"r-key\">Regulated by DFPR and departmental regulations<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 133<\/td><td class=\"r-title\">Execution \u2014 Direct or through PWO\/PSU<\/td><td class=\"r-key\">Repair \u2264\u20b960 lakh \u2192 Ministry can execute directly \u00b7 Repair >\u20b960 lakh or original works of any value \u2192 assign to PWO (R.133(2)) or PSU\/notified org (R.133(3)) \u00b7 Competition on lump sum service charges mandatory<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 134<\/td><td class=\"r-title\">Works under CPWD<\/td><td class=\"r-key\">Works not allotted to any Ministry \u2192 included in Grants for Civil Works under CPWD \u00b7 No split funding between departmental and civil works budget<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 135<\/td><td class=\"r-title\">General Rules for Works<\/td><td class=\"r-key\">Detailed rules in departmental regulations \u00b7 Empowered project teams for large value projects \u2014 dedicated to project execution only<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 136<\/td><td class=\"r-title\">7 Pre-conditions Before Commencing Works<\/td><td class=\"r-key\">Admin approval \u00b7 Expenditure sanction \u00b7 Detailed design sanctioned (life cycle cost considered) \u00b7 Estimates on Schedule of Rates \u00b7 Funds provided \u00b7 Tenders invited \u00b7 Work Order issued \u00b7 Exception: urgency \u2014 officer's own judgement with simultaneous reporting<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 137<\/td><td class=\"r-title\">Group of Works as One Project<\/td><td class=\"r-key\">Group forming one project = one work for sanction purposes \u00b7 Cannot split to avoid higher authority sanction \u00b7 Does not apply to independent similar works<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 138<\/td><td class=\"r-title\">Savings from Sanctioned Estimates<\/td><td class=\"r-key\">Savings shall not be applied to additional work not in original project without special authority<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 139<\/td><td class=\"r-title\">Procedure for Execution of Works<\/td><td class=\"r-key\">Design & estimates before sanction \u00b7 Admin approval & expenditure sanction before commencement \u00b7 Open tenders: \u20b910 lakh\u2013\u20b960 lakh \u00b7 Limited tenders: <\u20b910 lakh \u00b7 Work Order before commencement \u00b7 Final payment on Officer's Personal Certificate<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 140<\/td><td class=\"r-title\">Works Entrusted to PWO\/PSU<\/td><td class=\"r-key\">AA & expenditure sanction by Ministry \u00b7 PWO\/PSU executes under their own rules \u00b7 MoU may be drawn<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 141<\/td><td class=\"r-title\">Review of Projects<\/td><td class=\"r-key\">Projects \u2265\u20b9100 crore \u2192 Review Committee (Admin Ministry + Finance\/IFW + Executing Agency) mandatory \u00b7 Committee can accept variation within 10% \u00b7 <\u20b9100 crore \u2192 Ministry's discretion<\/td><\/tr>\n <\/tbody>\n <\/table>\n <\/div>\n\n \n <div style=\"background:#f0f4ff;border-left:5px solid #1a3a6b;padding:10px 18px;border-radius:0 6px 6px 0;margin:10px 0;font-weight:700;color:#1a3a6b;font-size:14px;letter-spacing:.04em;text-transform:uppercase\">Definitions and Scope \u2014 Rules 130\u2013132<\/div>\n\n \n <div class=\"rule-block\" id=\"ch5r130\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 130<\/span>\n <span class=\"rule-title\">Definitions \u2014 Original Works, Minor Works, Repair Works<\/span>\n <\/div>\n\n <div class=\"sec-h\">Original Works<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83c\udfd7\ufe0f<\/span><span><strong>Original works<\/strong> means all:<\/span><\/li>\n <\/ul>\n <ul class=\"blist\" style=\"margin-left:28px\">\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>New constructions<\/strong><\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>Site preparation<\/strong><\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>Additions and alterations<\/strong> to existing works<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>Special repairs<\/strong> to newly purchased or previously abandoned buildings or structures, including <strong>remodelling or replacement<\/strong><\/span><\/li>\n <\/ul>\n\n <div class=\"sec-h\">Minor Works<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udd27<\/span><span><strong>Minor works<\/strong> mean works which <strong>add capital value to existing assets but do not create new assets<\/strong>.<\/span><\/li>\n <\/ul>\n\n <div class=\"sec-h\">Repair Works<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udee0\ufe0f<\/span><span><strong>Repair works<\/strong> means works undertaken to <strong>maintain buildings and fixtures<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccb<\/span><span>Works shall also include <strong>services or goods incidental or consequential<\/strong> to the original or repair works.<\/span><\/li>\n <\/ul>\n\n <div class=\"box-amber\">\n <div class=\"box-amber-lbl\">\u2b50 Three Types of Works \u2014 Key Distinction<\/div>\n <table style=\"width:100%;border-collapse:collapse;font-size:14px;margin-top:6px\">\n <thead>\n <tr style=\"background:#f5c518;color:#1a3400\">\n <th style=\"padding:8px 12px;text-align:left\">Type<\/th>\n <th style=\"padding:8px 12px;text-align:left\">Creates New Asset?<\/th>\n <th style=\"padding:8px 12px;text-align:left\">Purpose<\/th>\n <\/tr>\n <\/thead>\n <tbody>\n <tr style=\"background:#fffdf0;border-bottom:1px solid #e8e0c0\">\n <td style=\"padding:8px 12px\"><strong>Original Works<\/strong><\/td>\n <td style=\"padding:8px 12px\"><span class=\"tag-green\">\u2705 Yes<\/span><\/td>\n <td style=\"padding:8px 12px\">New construction \/ additions \/ special repairs to purchased\/abandoned structures<\/td>\n <\/tr>\n <tr style=\"background:#fff8e8;border-bottom:1px solid #e8e0c0\">\n <td style=\"padding:8px 12px\"><strong>Minor Works<\/strong><\/td>\n <td style=\"padding:8px 12px\"><span class=\"tag-amber\">\u2b06\ufe0f Adds capital value<\/span><\/td>\n <td style=\"padding:8px 12px\">Improves existing asset but does not create a new one<\/td>\n <\/tr>\n <tr style=\"background:#fffdf0\">\n <td style=\"padding:8px 12px\"><strong>Repair Works<\/strong><\/td>\n <td style=\"padding:8px 12px\"><span class=\"tag-red\">\u274c No<\/span><\/td>\n <td style=\"padding:8px 12px\">Maintains existing buildings and fixtures \u2014 no capital addition<\/td>\n <\/tr>\n <\/tbody>\n <\/table>\n <\/div>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch5r131\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 131<\/span>\n <span class=\"rule-title\">Administrative Control of Works \u2014 Three Elements<\/span>\n <\/div>\n <p style=\"margin-bottom:13px;color:#444;font-size:15px\">Administrative control of works includes all three of the following:<\/p>\n <ul class=\"blist\">\n <li><span class=\"bi\">1\ufe0f\u20e3<\/span><span><strong>Assumption of full responsibility<\/strong> for construction, maintenance and upkeep.<\/span><\/li>\n <li><span class=\"bi\">2\ufe0f\u20e3<\/span><span><strong>Proper utilisation<\/strong> of buildings and allied works.<\/span><\/li>\n <li><span class=\"bi\">3\ufe0f\u20e3<\/span><span><strong>Provision of funds<\/strong> for execution of these functions.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch5r132\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 132<\/span>\n <span class=\"rule-title\">Powers to Sanction Works<\/span>\n <\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccb<\/span><span>The powers delegated to various subordinate authorities to:\n <ul class=\"blist-sub\">\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span>Accord <strong>administrative approval<\/strong><\/span><\/li>\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span>Sanction <strong>expenditure<\/strong><\/span><\/li>\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span><strong>Re-appropriate funds<\/strong> for works<\/span><\/li>\n <\/ul>\n <\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcdc<\/span><span>\u2026are regulated by the <strong>Delegation of Financial Powers Rules (DFPR)<\/strong> and other orders contained in the respective <strong>departmental regulations<\/strong>.<\/span><\/li>\n <\/ul>\n <\/div>\n\n \n <div style=\"background:#e8f0ff;border-left:5px solid #1a3a6b;padding:10px 18px;border-radius:0 6px 6px 0;margin:44px 0 10px;font-weight:700;color:#1a3a6b;font-size:14px;letter-spacing:.04em;text-transform:uppercase\">Execution of Works \u2014 Rules 133\u2013141<\/div>\n\n \n <div class=\"rule-div\" style=\"margin-top:8px\"><\/div>\n <div class=\"rule-block\" id=\"ch5r133\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 133<\/span>\n <span class=\"rule-title\">Three Modes of Executing Works<\/span>\n <\/div>\n\n <div class=\"sec-h\">Sub-rule (1) \u2014 Direct Execution by Ministry (Repair Works \u2264 \u20b960 Lakh)<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83c\udfdb\ufe0f<\/span><span>A Ministry or Department may, at its discretion, <strong>directly execute repair works estimated to cost up to \u20b960 Lakhs<\/strong>, after following the procedure indicated in Rules 139, 159 & 160. <span class=\"tag-red\">\u2757 \u20b960 lakh threshold<\/span><\/span><\/li>\n <\/ul>\n\n <div class=\"sec-h\">Sub-rule (2) \u2014 Assignment to Public Works Organisation (PWO)<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83c\udfd7\ufe0f<\/span><span>A Ministry or Department may assign:\n <ul class=\"blist-sub\">\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span><strong>Repair works estimated to cost above \u20b960 Lakhs<\/strong>, and<\/span><\/li>\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span><strong>Original\/minor works of any value<\/strong><\/span><\/li>\n <\/ul>\n \u2026to any <strong>Public Works Organisation (PWO)<\/strong> such as:\n <\/span><\/li>\n <\/ul>\n <ul class=\"blist\" style=\"margin-left:28px\">\n <li><span class=\"bi\">\ud83c\udfe2<\/span><span><strong>CPWD<\/strong> (Central Public Works Department)<\/span><\/li>\n <li><span class=\"bi\">\ud83c\udfe2<\/span><span>State Public Works Departments<\/span><\/li>\n <li><span class=\"bi\">\ud83c\udfe2<\/span><span>Other Central Govt. organisations authorised for civil\/electrical works \u2014 <strong>MES<\/strong> (Military Engineering Service), <strong>BRO<\/strong> (Border Roads Organisation), etc.<\/span><\/li>\n <li><span class=\"bi\">\ud83c\udfe2<\/span><span>Construction wings of Railways, Defence, Environment & Forests, Information & Broadcasting, Posts, Space, etc.<\/span><\/li>\n <\/ul>\n\n <div class=\"sec-h\">Sub-rule (3) \u2014 Alternative: Award to PSU or Notified Organisation<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83c\udfed<\/span><span>As an <strong>alternative to Rule 133(2)<\/strong>, a Ministry\/Department may award repair works above \u20b960 lakh and original works of any value to:\n <ul class=\"blist-sub\">\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span><strong>(i)<\/strong> Any <strong>Public Sector Undertaking<\/strong> set up by the Central or State Government to carry out civil or electrical works, or<\/span><\/li>\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span><strong>(ii)<\/strong> Any other Central\/State Govt. organisation\/PSU <strong>notified by MoHUA<\/strong> (Ministry of Housing and Urban Affairs) after evaluating their financial strength and technical competence.<\/span><\/li>\n <\/ul>\n <\/span><\/li>\n <li><span class=\"bi\">\u2696\ufe0f<\/span><span>For award under this sub-rule, the Ministry\/Department shall ensure <strong>competition among such PSUs\/Organisations \u2014 essentially on lump sum service charges<\/strong> to be claimed for execution.<\/span><\/li>\n <\/ul>\n <div class=\"box-red\">\n <span style=\"font-size:18px;flex-shrink:0;margin-top:2px\">\u26a0\ufe0f<\/span>\n <span><strong>Nomination Basis (Exceptional Cases):<\/strong> Award on nomination basis is permissible only in exceptional cases subject to conditions in <strong>Rule 194<\/strong>. Work shall be awarded only on the basis of <strong>lump sum service charge<\/strong> even in such cases.<\/span>\n <\/div>\n <div class=\"box-blue\">\n <div class=\"box-blue-lbl\">\ud83d\udccc Three Modes of Execution \u2014 Summary<\/div>\n <table style=\"width:100%;border-collapse:collapse;font-size:14px;margin-top:6px\">\n <thead>\n <tr style=\"background:#1a3a6b;color:#fff\">\n <th style=\"padding:8px 12px;text-align:left\">Mode<\/th>\n <th style=\"padding:8px 12px;text-align:left\">Applicable To<\/th>\n <th style=\"padding:8px 12px;text-align:left\">Authority<\/th>\n <\/tr>\n <\/thead>\n <tbody>\n <tr style=\"background:#f0f6ff;border-bottom:1px solid #d0dcef\">\n <td style=\"padding:8px 12px\"><strong>Direct [R.133(1)]<\/strong><\/td>\n <td style=\"padding:8px 12px\">Repair works \u2264 \u20b960 lakh<\/td>\n <td style=\"padding:8px 12px\">Ministry\/Dept itself<\/td>\n <\/tr>\n <tr style=\"background:#e8f0ff;border-bottom:1px solid #d0dcef\">\n <td style=\"padding:8px 12px\"><strong>PWO [R.133(2)]<\/strong><\/td>\n <td style=\"padding:8px 12px\">Repair >\u20b960 lakh \u00b7 Original\/minor of any value<\/td>\n <td style=\"padding:8px 12px\">CPWD \/ MES \/ BRO \/ Dept construction wings<\/td>\n <\/tr>\n <tr style=\"background:#f0f6ff\">\n <td style=\"padding:8px 12px\"><strong>PSU\/Notified Org [R.133(3)]<\/strong><\/td>\n <td style=\"padding:8px 12px\">Repair >\u20b960 lakh \u00b7 Original of any value<\/td>\n <td style=\"padding:8px 12px\">Central\/State PSU or MoHUA-notified org \u00b7 Competition on service charges<\/td>\n <\/tr>\n <\/tbody>\n <\/table>\n <\/div>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch5r134\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 134<\/span>\n <span class=\"rule-title\">Works Under Administrative Control of CPWD<\/span>\n <\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83c\udfdb\ufe0f<\/span><span>Works <strong>not specifically allotted to any Ministry or Department<\/strong> shall be included in the <strong>Grants for Civil Works<\/strong> to be administered by the <strong>Central Public Works Department<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\u26d4<\/span><span>No such work may be <strong>financed partly from departmental budget and partly from the budget for Civil Works<\/strong> \u2014 split funding is not permissible.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch5r135\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 135<\/span>\n <span class=\"rule-title\">General Rules for Initiation and Execution of Works<\/span>\n <\/div>\n <div class=\"sec-h\">Sub-rule (1) \u2014 Departmental Regulations Govern<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccb<\/span><span>Subject to Rule 144, the initiation, authorisation and execution of works allotted to a Ministry or Department shall be regulated by <strong>detailed rules and orders in their departmental regulations<\/strong> and other special orders applicable to them.<\/span><\/li>\n <\/ul>\n <div class=\"sec-h\">Sub-rule (2) \u2014 Empowered Project Teams for Large Works<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udc65<\/span><span>A Ministry or Department shall put in place, as far as possible, <strong>empowered project teams for all large value projects<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83c\udfaf<\/span><span>These teams should be <strong>tasked only with project execution and not given other operational duties<\/strong>. <span class=\"tag-amber\">\u2b50 Exam point \u2014 dedicated teams<\/span><\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch5r136\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 136<\/span>\n <span class=\"rule-title\">Seven Pre-conditions Before Commencing Any Work<\/span>\n <\/div>\n <div class=\"sec-h\">Sub-rule (1) \u2014 The Seven Conditions<\/div>\n <p style=\"margin-bottom:13px;color:#444;font-size:15px\">No works shall be commenced or liability incurred in connection with it until <strong>all seven of the following conditions<\/strong> are satisfied:<\/p>\n <ul class=\"blist\">\n <li><span class=\"bi\">1\ufe0f\u20e3<\/span><span><strong>Administrative Approval<\/strong> obtained from the appropriate authority.<\/span><\/li>\n <li><span class=\"bi\">2\ufe0f\u20e3<\/span><span><strong>Sanction to incur expenditure<\/strong> obtained from the competent authority.<\/span><\/li>\n <li><span class=\"bi\">3\ufe0f\u20e3<\/span><span>A <strong>properly detailed design<\/strong> has been sanctioned. While designing, principles of <strong>Life Cycle Cost<\/strong> may also be considered.<\/span><\/li>\n <li><span class=\"bi\">4\ufe0f\u20e3<\/span><span><strong>Estimates<\/strong> containing detailed specifications and quantities have been prepared on the basis of the <strong>Schedule of Rates maintained by CPWD<\/strong> or other PWOs \u2014 and sanctioned.<\/span><\/li>\n <li><span class=\"bi\">5\ufe0f\u20e3<\/span><span><strong>Funds<\/strong> to cover the charge during the year have been provided by competent authority.<\/span><\/li>\n <li><span class=\"bi\">6\ufe0f\u20e3<\/span><span><strong>Tenders invited and processed<\/strong> in accordance with rules.<\/span><\/li>\n <li><span class=\"bi\">7\ufe0f\u20e3<\/span><span>A <strong>Work Order issued<\/strong>.<\/span><\/li>\n <\/ul>\n\n <div class=\"sec-h\">Sub-rule (2) \u2014 Urgency Exception<\/div>\n <div class=\"box-amber\">\n <div class=\"box-amber-lbl\">\u26a0\ufe0f Emergency \/ Urgency Provision<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\u26a1<\/span><span>If on grounds of <strong>urgency<\/strong> the seven conditions cannot be complied with, the concerned <strong>executive officer may act on his own judgement and responsibility<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccb<\/span><span><strong>Simultaneously<\/strong>, he must:\n <ul class=\"blist-sub\">\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span>Initiate action to <strong>obtain approval from the competent authority<\/strong>, and<\/span><\/li>\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span><strong>Intimate the concerned Accounts Officer<\/strong>.<\/span><\/li>\n <\/ul>\n <\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"sec-h\">Sub-rule (3) \u2014 Supplementary Estimate for New Developments<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udcdd<\/span><span>Any development of a project considered necessary <strong>while a work is in progress<\/strong>, which is <strong>not contingent on the execution of work as first sanctioned<\/strong>, shall have to be covered by a <strong>supplementary estimate<\/strong>.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch5r137\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 137<\/span>\n <span class=\"rule-title\">Group of Works to be Treated as One Project<\/span>\n <\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udce6<\/span><span>For the purpose of approval and sanctions, a <strong>group of works which forms one project shall be considered as one work<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\u26d4<\/span><span>The necessity for obtaining approval or sanction of a <strong>higher authority shall not be avoided<\/strong> merely because the cost of each particular work in the project is within the powers of approval or sanction of a lower authority.<\/span><\/li>\n <\/ul>\n <div class=\"box-red\">\n <span style=\"font-size:18px;flex-shrink:0;margin-top:2px\">\u26a0\ufe0f<\/span>\n <span><strong>Anti-splitting Rule:<\/strong> Projects cannot be artificially split into smaller parts to route sanctions through lower authorities. The entire project cost must be evaluated as one work for determining the appropriate sanctioning authority.<\/span>\n <\/div>\n <ul class=\"blist\" style=\"margin-top:12px\">\n <li><span class=\"bi\">\u2705<\/span><span><strong>Exception:<\/strong> This provision shall <strong>not apply in case of works of similar nature which are independent of each other<\/strong>.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch5r138\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 138<\/span>\n <span class=\"rule-title\">Savings from Sanctioned Estimates<\/span>\n <\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\u26d4<\/span><span>Any anticipated or actual savings from a <strong>sanctioned estimate for a definite project<\/strong> shall not, without <strong>special authority<\/strong>, be applied to carry out <strong>additional work not contemplated in the original project<\/strong>.<\/span><\/li>\n <\/ul>\n <div class=\"box-blue\">\n <div class=\"box-blue-lbl\">\ud83d\udccc Rationale<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udca1<\/span><span>Savings in a sanctioned estimate belong to the approved scope of the project. Diverting them to unauthorised additional works would bypass the requirement to obtain a fresh sanction for the new work \u2014 which is not permissible without specific authority.<\/span><\/li>\n <\/ul>\n <\/div>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch5r139\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 139<\/span>\n <span class=\"rule-title\">Procedure for Direct Execution of Works by Ministry \/ Department<\/span>\n <\/div>\n <p style=\"margin-bottom:13px;color:#444;font-size:15px\">The broad procedure to be followed by a Ministry or Department for execution of works under its own arrangements:<\/p>\n <ul class=\"blist\">\n <li><span class=\"bi\">1\ufe0f\u20e3<\/span><span>The detailed procedure shall be prescribed by <strong>departmental regulations framed in consultation with the Accounts Officer<\/strong>, generally based on the principles underlying the financial and accounting rules for similar works carried out by CPWD.<\/span><\/li>\n <li><span class=\"bi\">2\ufe0f\u20e3<\/span><span><strong>Preparation of detailed design and estimates shall precede any sanction<\/strong> for works.<\/span><\/li>\n <li><span class=\"bi\">3\ufe0f\u20e3<\/span><span>No work shall be undertaken before issue of <strong>Administrative Approval and Expenditure Sanction<\/strong> by the competent authority on the basis of the estimates framed.<\/span><\/li>\n <li><span class=\"bi\">4\ufe0f\u20e3<\/span><span><strong>Open tenders<\/strong> shall be called for works costing <strong>\u20b910 lakh to \u20b960 lakh<\/strong>. <span class=\"tag-amber\">\u2b50 \u20b910L\u2013\u20b960L \u2192 Open tender<\/span><\/span><\/li>\n <li><span class=\"bi\">5\ufe0f\u20e3<\/span><span><strong>Limited tenders<\/strong> shall be called for works costing <strong>less than \u20b910 lakhs<\/strong>. <span class=\"tag-amber\">\u2b50 <\u20b910L \u2192 Limited tender<\/span><\/span><\/li>\n <li><span class=\"bi\">6\ufe0f\u20e3<\/span><span><strong>Execution of Contract Agreement or Award of work<\/strong> should be done <strong>before commencement<\/strong> of the work.<\/span><\/li>\n <li><span class=\"bi\">7\ufe0f\u20e3<\/span><span><strong>Final payment<\/strong> for work shall be made only on the <strong>Personal Certificate of the Officer-in-charge<\/strong> of execution of the work, in the following format:<\/span><\/li>\n <\/ul>\n <div class=\"box-green\" style=\"margin-top:10px;font-style:italic;font-size:14px\">\n <div class=\"box-green-lbl\">\ud83d\udcdc Officer's Personal Certificate (Mandatory for Final Payment)<\/div>\n <p style=\"margin:8px 0 0;\">\"I, Executing Officer of (Name of the Work), am personally satisfied that the work has been executed as per the specifications laid down in the Contract Agreement and the workmanship is up to the standards followed in the Industry.\"<\/p>\n <\/div>\n\n <div class=\"box-amber\" style=\"margin-top:14px\">\n <div class=\"box-amber-lbl\">\u2b50 Tender Type Quick Reference (Rule 139)<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udd13<\/span><span><strong>Open Tenders:<\/strong> Works costing <strong>\u20b910 lakh to \u20b960 lakh<\/strong><\/span><\/li>\n <li><span class=\"bi\">\ud83d\udd12<\/span><span><strong>Limited Tenders:<\/strong> Works costing <strong>less than \u20b910 lakhs<\/strong><\/span><\/li>\n <li><span class=\"bi\">\u26a1<\/span><span>For works above \u20b960 lakh \u2192 assigned to PWO\/PSU under Rule 133(2)\/(3), not direct execution<\/span><\/li>\n <\/ul>\n <\/div>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch5r140\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 140<\/span>\n <span class=\"rule-title\">Works Entrusted to PWO or PSU \u2014 Division of Responsibility<\/span>\n <\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83c\udfdb\ufe0f<\/span><span>For works entrusted as per Rule 133(2) or 133(3), the <strong>Administrative Approval and Expenditure Sanction shall be accorded and funds allotted by the concerned Ministry\/Department<\/strong> under these rules and in accordance with DFPR.<\/span><\/li>\n <li><span class=\"bi\">\ud83c\udfd7\ufe0f<\/span><span>The <strong>Public Works Organisation or PSU<\/strong> to which work is allotted shall then <strong>execute the work under the rules and procedures prescribed in that organisation<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccb<\/span><span>A <strong>Memorandum of Understanding (MoU)<\/strong> may be drawn with the Public Works Organisation or PSU for proper execution of work.<\/span><\/li>\n <\/ul>\n <div class=\"box-blue\">\n <div class=\"box-blue-lbl\">\ud83d\udccc Who Does What<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83c\udfdb\ufe0f<\/span><span><strong>Ministry\/Department:<\/strong> Administrative Approval + Expenditure Sanction + Fund Allotment<\/span><\/li>\n <li><span class=\"bi\">\ud83c\udfd7\ufe0f<\/span><span><strong>PWO\/PSU:<\/strong> Actual execution under its own rules + procedures<\/span><\/li>\n <\/ul>\n <\/div>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch5r141\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 141<\/span>\n <span class=\"rule-title\">Review of Projects<\/span>\n <\/div>\n <div class=\"sec-h\">Projects \u2265 \u20b9100 Crore \u2014 Mandatory Review Committee<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83c\udfd7\ufe0f<\/span><span>After a project costing <strong>\u20b9100 crore or above<\/strong> is approved, the Administrative Ministry or Department shall set up a <strong>Review Committee<\/strong> consisting of a representative each from:\n <ul class=\"blist-sub\">\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span><strong>Administrative Ministry<\/strong><\/span><\/li>\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span><strong>Finance (Internal Finance Wing)<\/strong><\/span><\/li>\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span><strong>Executing Agency<\/strong><\/span><\/li>\n <\/ul>\n <\/span><\/li>\n <li><span class=\"bi\">\u2696\ufe0f<\/span><span>The Review Committee shall have the powers to <strong>accept variation within 10%<\/strong> of the approved estimates. <span class=\"tag-red\">\u2757 10% variation limit<\/span><\/span><\/li>\n <\/ul>\n <div class=\"sec-h\">Projects < \u20b9100 Crore \u2014 Ministry's Discretion<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83c\udfdb\ufe0f<\/span><span>For works costing <strong>less than \u20b9100 crores<\/strong>, it shall be at the <strong>discretion of the Administrative Ministry\/Department<\/strong> to set up a suitable mechanism for review and acceptance of variation within 10% of the approved estimates.<\/span><\/li>\n <\/ul>\n <div class=\"box-amber\">\n <div class=\"box-amber-lbl\">\u2b50 Rule 141 \u2014 Key Numbers<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>\u20b9100 crore or above:<\/strong> Review Committee is <strong>mandatory<\/strong> \u2014 3 members (Admin Ministry + IFW + Executing Agency)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>Below \u20b9100 crore:<\/strong> Review mechanism at Ministry's <strong>discretion<\/strong><\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>10%<\/strong> \u2014 Maximum variation that Review Committee can accept within the approved estimate<\/span><\/li>\n <\/ul>\n <\/div>\n <\/div>\n\n <div class=\"box-amber\" style=\"margin-top:36px\">\n <div class=\"box-amber-lbl\">\u2b50 Numbers to Remember \u2014 Chapter 5<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>\u20b960 lakh<\/strong> \u2014 threshold for direct execution of repair works by Ministry (R.133)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>\u20b910 lakh to \u20b960 lakh<\/strong> \u2014 Open tenders required (R.139)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>Below \u20b910 lakh<\/strong> \u2014 Limited tenders (R.139)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>7 pre-conditions<\/strong> before commencing any work (R.136)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>\u20b9100 crore or above<\/strong> \u2014 Review Committee mandatory with 3 members (R.141)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>10%<\/strong> \u2014 variation limit that Review Committee can accept (R.141)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>Schedule of Rates maintained by CPWD<\/strong> \u2014 basis for preparing estimates (R.136)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>Life Cycle Cost<\/strong> \u2014 principle to be considered while designing projects (R.136)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>MoU may be drawn<\/strong> with PWO\/PSU for execution (R.140)<\/span><\/li>\n <\/ul>\n <\/div>\n <\/div>\n\n <div id=\"ch6\" class=\"ch-block\">\n\n <div class=\"ch-banner\">\n <div class=\"ch-num\">Chapter 6<\/div>\n <div class=\"ch-title\">Procurement of Goods and Services<\/div>\n <div class=\"ch-range\">Rules 142 to 172 \u00b7 GeM \u00b7 Tender Methods \u00b7 Bid Security \u00b7 Performance Security \u00b7 Advance Payment<\/div>\n <\/div>\n\n \n <div class=\"idx-outer\">\n <div class=\"idx-lbl\">Rules at a Glance \u2014 Chapter 6<\/div>\n <table class=\"idx-table\">\n <thead><tr><th style=\"width:120px\">Rule No.<\/th><th>Subject<\/th><th>Key Point<\/th><\/tr><\/thead>\n <tbody>\n <tr><td class=\"r-num\">Rule 142<\/td><td class=\"r-title\">Scope<\/td><td class=\"r-key\">General rules for all Ministries\/Depts for procurement of goods for public service<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 143<\/td><td class=\"r-title\">Definition of Goods<\/td><td class=\"r-key\">Wide definition \u2014 articles, material, machinery, software, IP, livestock, spares, vehicles, etc. \u00b7 Includes incidental works and services (transport, insurance, installation, commissioning, training, maintenance) \u00b7 Excludes library books\/publications<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 144<\/td><td class=\"r-title\">Fundamental Principles of Public Buying<\/td><td class=\"r-key\">Efficiency, economy, transparency, fair treatment, competition \u00b7 11 yardsticks including: objective specs \u00b7 no brand names \u00b7 Annual Procurement Plan on website \u00b7 DoE may restrict procurement from certain countries on national security grounds<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 145<\/td><td class=\"r-title\">Authorities Competent to Purchase<\/td><td class=\"r-key\">Authority competent to incur expenditure may sanction purchase as per DFPR<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 146<\/td><td class=\"r-title\">Procurement on Mobilisation<\/td><td class=\"r-key\">Regulated by special rules\/orders issued by Government from time to time<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 147<\/td><td class=\"r-title\">Powers for Procurement<\/td><td class=\"r-key\">Full powers to Ministries\/Depts for goods\/services NOT available on GeM \u00b7 Items available on GeM must be procured mandatorily through GeM (per Rule 149)<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 149<\/td><td class=\"r-title\">Government e-Marketplace (GeM)<\/td><td class=\"r-key\">Mandatory procurement through GeM for all available goods\/services \u00b7 Three tiers: \u2264\u20b950,000 (any seller) \u00b7 \u20b950,000\u2013\u20b910L (lowest price among \u22653 manufacturers) \u00b7 >\u20b910L (online bidding\/reverse auction mandatory) \u00b7 Annual Procurement Plan on GeM portal within 30 days of Budget approval \u00b7 Demand not to be split to avoid higher thresholds<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 150<\/td><td class=\"r-title\">Registration of Suppliers<\/td><td class=\"r-key\">For goods not on GeM \u00b7 Registration period: 1\u20133 years \u00b7 Performance watched continuously \u00b7 Grounds for removal: substandard goods, false declaration, failure to supply on time, not in public interest \u00b7 List exhibited on website<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 151<\/td><td class=\"r-title\">Debarment from Bidding<\/td><td class=\"r-key\">Mandatory debarment: conviction under Prevention of Corruption Act \/ BNS for loss of life or property \u00b7 Period: up to 3 years (DoE list on CPPP) \u00b7 Discretionary: Code of Integrity breach \u2192 up to 2 years (Ministry list on website) \u00b7 Reasonable opportunity to represent before debarment<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 152<\/td><td class=\"r-title\">Indian Agents for Foreign Principals<\/td><td class=\"r-key\">Ministries\/Depts may enlist Indian agents to quote directly on behalf of foreign principals<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 153<\/td><td class=\"r-title\">Reserved Items and Purchase Preference<\/td><td class=\"r-key\">Khadi goods: exclusively from KVIC \u00b7 Handloom textiles: at least 20% mandatory from KVIC\/Handloom Clusters \u00b7 MSME Procurement Policy under MSMED Act 2006 \u00b7 Central Govt may notify mandatory procurement from any category or preference for locally manufactured goods<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 154<\/td><td class=\"r-title\">Purchase Without Quotation<\/td><td class=\"r-key\">\u2264\u20b950,000 (when item not on GeM) \u00b7 Certificate of personal satisfaction by competent authority \u00b7 No quotations or bids required<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 155<\/td><td class=\"r-title\">Purchase by Purchase Committee<\/td><td class=\"r-key\">Above \u20b950,000 and up to \u20b95,00,000 (when not on GeM) \u00b7 3-member Local Purchase Committee \u00b7 Joint certificate of satisfaction by all members \u00b7 Certificate must confirm supplier is not debarred by DoE or Ministry<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 157<\/td><td class=\"r-title\">No Splitting of Demand<\/td><td class=\"r-key\">Demand for goods shall not be divided into small quantities to avoid higher authority sanction or competitive tendering<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 158<\/td><td class=\"r-title\">Purchase by Obtaining Bids \u2014 Five Methods<\/td><td class=\"r-key\">(i) Advertised Tender Enquiry (ii) Limited Tender Enquiry (iii) Two-Stage Bidding (iv) Single Tender Enquiry (v) Electronic Reverse Auction<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 159<\/td><td class=\"r-title\">E-Publishing \u2014 Mandatory<\/td><td class=\"r-key\">Mandatory publication on GeM-CPPP for all Ministries\/Depts\/Autonomous Bodies \u00b7 Exemption: national security \u2014 Secretary + FA concurrence \u00b7 Statistical info on exemptions \u2192 MoF\/DoE quarterly \u00b7 Applies to all forms of tender\/RFP\/EOI\/pre-qualification notices \u00b7 Exempted: R.154 and R.155 purchases<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 160<\/td><td class=\"r-title\">E-Procurement \u2014 Mandatory<\/td><td class=\"r-key\">Mandatory receipt of all bids through e-procurement portals \u00b7 NIC solution available for low-volume depts \u00b7 National security exemption with Secretary approval + FA concurrence \u00b7 Indian Missions Abroad: Competent Authority may exempt<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 161<\/td><td class=\"r-title\">Advertised Tender Enquiry<\/td><td class=\"r-key\">Estimated value \u2265\u20b950 lakhs \u00b7 Published on GeM + GeM-CPPP + own website \u00b7 Complete bidding document on website \u00b7 Minimum 3 weeks for bid submission (4 weeks if foreign bids invited) \u00b7 No GTE for tenders up to \u20b9200 crore (relaxation from Competent Authority for exceptions) \u00b7 No cost for tender documents downloaded from website<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 162<\/td><td class=\"r-title\">Limited Tender Enquiry<\/td><td class=\"r-key\">Estimated value up to \u20b950 lakhs \u00b7 More than 3 supplier firms \u00b7 Published on GeM-CPPP \u00b7 Unsolicited bids not accepted \u00b7 Permitted beyond \u20b950 lakhs if: urgency certified \/ not in public interest to advertise \/ sources of supply definitely known<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 163<\/td><td class=\"r-title\">Two-Bid System (Technical + Financial)<\/td><td class=\"r-key\">For high-value complex plant\/machinery \u00b7 Separate sealed envelopes for technical and financial bids inside outer envelope \u00b7 Technical bids opened first and evaluated \u00b7 Financial bids of only technically accepted offers opened in second stage<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 164<\/td><td class=\"r-title\">Two-Stage Bidding<\/td><td class=\"r-key\">For procurements where detailed specs cannot be formulated without bidder inputs \u00b7 Or rapid technology\/market changes \u00b7 Or R&D contracts \u00b7 Or comprehensive survey needed \u00b7 First stage: technical bids without price; committee evaluates, may hold discussions (equal opportunity to all) \u00b7 Second stage: revised specs \u2192 final bids with prices \u00b7 Bidder may withdraw without penalty if modifications are unacceptable<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 165<\/td><td class=\"r-title\">Late Bids<\/td><td class=\"r-key\">Late bids (received after specified date and time) shall NOT be considered in advertised or limited tender enquiry<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 166<\/td><td class=\"r-title\">Single Tender Enquiry<\/td><td class=\"r-key\">Three circumstances: (i) only one manufacturer known (ii) emergency requiring specific source (iii) standardisation of spares\/machinery \u00b7 Proprietary Article Certificate required for (i) and (iii)<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 167<\/td><td class=\"r-title\">Electronic Reverse Auction<\/td><td class=\"r-key\">Online real-time technique \u00b7 Successively more favourable bids during scheduled period \u00b7 Conditions: detailed description feasible + competitive market + criteria quantifiable in monetary terms<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 168<\/td><td class=\"r-title\">Contents of Bidding Document<\/td><td class=\"r-key\">7 chapters: Instructions to Bidders \u00b7 Conditions of Contract \u00b7 Schedule of Requirements \u00b7 Specifications\/Technical Details \u00b7 Price Schedule \u00b7 Contract Form \u00b7 Other Standard Forms<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 169<\/td><td class=\"r-title\">Maintenance Contract<\/td><td class=\"r-key\">Needed for sophisticated\/costly equipment \u00b7 Maintenance free of charge during warranty period \u00b7 Paid maintenance commences only after warranty period<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 170<\/td><td class=\"r-title\">Bid Security (Earnest Money)<\/td><td class=\"r-key\">2%\u20135% of estimated value \u00b7 Exempted: MSEs (MSME policy) \/ registered suppliers \/ CPO \/ DPIIT-recognised Startups \u00b7 Forms: Insurance Surety Bond \/ A\/c Payee DD \/ FDR \/ Banker's Cheque \/ BG (incl. e-BG) \/ online payment \u00b7 Valid 45 days beyond final bid validity \u00b7 Returned to unsuccessful bidders by 30th day after contract award \u00b7 Two-packet\/two-stage: unsuccessful 1st-stage bidders get BG back within 30 days of 1st-stage result<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 171<\/td><td class=\"r-title\">Performance Security<\/td><td class=\"r-key\">3%\u20135% of contract value (for goods\/consultancy\/non-consultancy services) \u00b7 Valid 60 days beyond completion of all contractual obligations including warranty \u00b7 Bid security refunded on receipt of Performance Security \u00b7 Forms: Insurance Surety Bond \/ A\/c Payee DD \/ FDR \/ BG (incl. e-BG) \/ online payment<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 172(1)<\/td><td class=\"r-title\">Advance Payment to Supplier<\/td><td class=\"r-key\">Ordinarily after services rendered\/supplies made \u00b7 Advance ceilings: 30% (private firms) \u00b7 40% (Central\/State Govt agency or PSU) \u00b7 Maintenance contract: up to 6 months' amount \u00b7 Can be relaxed by Ministry in consultation with FA \u00b7 Bank guarantee\/adequate safeguards mandatory<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 172(2)<\/td><td class=\"r-title\">Part Payment to Suppliers<\/td><td class=\"r-key\">Part payment may be released after dispatch of goods from supplier's premises as per contract terms<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 173<\/td><td class=\"r-title\">Transparency, Competition and Fairness \u2014 22 Measures<\/td><td class=\"r-key\">Bidding doc must be self-contained \u00b7 NIL bid = unresponsive \u00b7 No new condition during evaluation \u00b7 Post-bid negotiation severely discouraged (only with L-1 if unavoidable) \u00b7 Single offer in open\/limited tender = single tender contract \u00b7 >\u20b950L Purchase Committee: no direct reporting between members \u00b7 BEE Star Rating mandatory \u00b7 4 grounds for rejecting all bids \u00b7 Lack of competition not solely by number of bidders<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 174<\/td><td class=\"r-title\">Efficiency, Economy and Accountability<\/td><td class=\"r-key\">Prescribe time frame for each procurement stage \u00b7 Delegate purchasing powers wherever necessary \u00b7 Contract to be placed within original bid validity \u00b7 Extension of bid validity to be discouraged<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 175<\/td><td class=\"r-title\">Code of Integrity \u2014 8 Prohibitions<\/td><td class=\"r-key\">Bribery \u00b7 Misrepresentation \u00b7 Collusion\/bid rigging \u00b7 Improper use of information \u00b7 Conflict transactions \u00b7 Coercion\/threat \u00b7 Obstruction \u00b7 False declaration \u00b7 Disclosure of conflict of interest \u00b7 Disclosure of prior transgressions in last 3 years \u00b7 Reasonable opportunity before action<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 176<\/td><td class=\"r-title\">Buy-Back Offer<\/td><td class=\"r-key\">Old item traded while purchasing new one with competent authority approval \u00b7 Clause in bidding document \u00b7 Option to trade or not trade kept open<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 177<\/td><td class=\"r-title\">Definition \u2014 Consulting Services<\/td><td class=\"r-key\">Non-physical, project-specific, intellectual and procedural processes \u00b7 Outcomes vary from consultant to consultant \u00b7 Does NOT include direct engagement of retired Govt servant \u00b7 Examples: management\/policy\/communications consultants, feasibility studies, project management, finance\/accounting\/taxation, training<\/td><\/tr>\n <tr><td class=\"r-num\">Rules 178\u2013182<\/td><td class=\"r-title\">Consulting Services \u2014 Preliminary Steps<\/td><td class=\"r-key\">R.178: May hire external consultants for specific, time-bound job \u00b7 R.180: Only if Ministry lacks requisite expertise; competent authority approval needed \u00b7 R.181: Prepare scope, objectives, eligibility criteria \u00b7 R.182: Estimate reasonable expenditure from market conditions<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 183<\/td><td class=\"r-title\">Identification of Consultant Sources \u2014 Two Tiers<\/td><td class=\"r-key\">\u2264\u20b950L: Long list from informal enquiries, CII, associations \u00b7 >\u20b950L: Expression of Interest (EOI) published on GeM + GeM-CPPP; adequate time to be allowed<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 184<\/td><td class=\"r-title\">Short-Listing of Consultants<\/td><td class=\"r-key\">Short-listed consultants shall not be less than 3<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 185<\/td><td class=\"r-title\">Terms of Reference (TOR) \u2014 5 Elements<\/td><td class=\"r-key\">(i) Statement of objectives (ii) Outline of tasks (iii) Schedule for completion (iv) Support\/inputs to be provided by Ministry (v) Final outputs required<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 186<\/td><td class=\"r-title\">Request for Proposal (RFP) \u2014 9 Contents<\/td><td class=\"r-key\">Letter of Invitation \u00b7 Information to Consultants \u00b7 TOR \u00b7 Eligibility\/pre-qualification criteria \u00b7 Key positions for CV evaluation \u00b7 Evaluation criteria and selection procedure \u00b7 Standard formats for technical and financial proposals \u00b7 Proposed contract terms \u00b7 Mid-term review procedure<\/td><\/tr>\n <tr><td class=\"r-num\">Rules 187\u2013190<\/td><td class=\"r-title\">Receipt, Opening and Evaluation of Proposals<\/td><td class=\"r-key\">Two-bid system (technical + financial in separate sealed envelopes) \u00b7 Technical proposals opened first \u00b7 Late bids not considered \u00b7 CEC evaluates technical bids with detailed reasons for acceptance\/rejection \u00b7 Financial bids opened only for technically qualified bidders<\/td><\/tr>\n <tr><td class=\"r-num\">Rules 191\u2013194<\/td><td class=\"r-title\">Methods of Consultancy Selection \u2014 3 Methods<\/td><td class=\"r-key\">QCBS: Quality + Cost combined score; technical weight \u226480%; highest combined score wins \u00b7 LCS: Standard\/routine assignments; lowest cost among technically qualified \u00b7 Single Source\/Nomination: 5 circumstances (continuation of previous work, emergency, proprietary, special circumstance, fairness ensured); full justification + competent authority approval<\/td><\/tr>\n <tr><td class=\"r-num\">Rules 195\u2013196<\/td><td class=\"r-title\">Monitoring and Design Competition<\/td><td class=\"r-key\">R.195: Task force approach; continuous monitoring throughout \u00b7 R.196: Design competition (symbols\/logos) \u2014 transparent, fair, wide publicity; published on Ministry website + GeM-CPPP; jury composition may be notified<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 197<\/td><td class=\"r-title\">Definition \u2014 Non-Consulting Services<\/td><td class=\"r-key\">Physical, measurable deliverables\/outcomes; performance standards clearly identifiable \u00b7 Examples: maintenance, vehicle hiring, facilities management, security, photocopier, janitor, drilling, aerial photography, satellite imagery, mapping<\/td><\/tr>\n <tr><td class=\"r-num\">Rules 198\u2013200<\/td><td class=\"r-title\">Non-Consulting Services \u2014 General and Tender Enquiry<\/td><td class=\"r-key\">R.198: Procured in interest of economy and efficiency \u00b7 R.199: List of contractors from Yellow Pages, trade journals, websites, enquiries \u00b7 R.200: Tender enquiry must include 4 elements: work details, facilities\/inputs provided, eligibility criteria, statutory\/contractual obligations<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 201<\/td><td class=\"r-title\">Invitation of Bids \u2014 Non-Consulting Two Tiers<\/td><td class=\"r-key\">\u2264\u20b950L: Limited Tender Enquiry to more than 3 contractors \u00b7 >\u20b950L: Open advertisement on GeM + GeM-CPPP (and own website)<\/td><\/tr>\n <tr><td class=\"r-num\">Rules 202\u2013205<\/td><td class=\"r-title\">Evaluation, Nomination and Monitoring<\/td><td class=\"r-key\">R.202: Late bids not considered \u00b7 R.203: Evaluate, segregate, rank responsive bids \u00b7 R.204: Nomination for non-consulting \u2014 Competent Authority + FA consultation; detailed justification integral part of proposal \u00b7 R.205: Continuous monitoring of contractor performance throughout<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 206<\/td><td class=\"r-title\">Residual Applicability<\/td><td class=\"r-key\">Gaps in Rules 198\u2013205 \u2192 governed by Rules 142\u2013176 (goods rules), NOT consulting rules<\/td><\/tr>\n <\/tbody>\n <\/table>\n <\/div>\n\n \n <div style=\"background:#f0f4ff;border-left:5px solid #1a3a6b;padding:10px 18px;border-radius:0 6px 6px 0;margin:10px 0;font-weight:700;color:#1a3a6b;font-size:14px;letter-spacing:.04em;text-transform:uppercase\">Section I \u2014 Scope, Definitions and Fundamental Principles (Rules 142\u2013144)<\/div>\n\n \n <div class=\"rule-block\" id=\"ch6r142\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 142<\/span><span class=\"rule-title\">Scope of Chapter 6<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccb<\/span><span>This chapter contains the <strong>general rules applicable to all Ministries or Departments<\/strong> regarding procurement of goods required for use in the public service.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>Procuring departments may issue detailed instructions broadly in conformity with the general rules contained in this Chapter.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch6r143\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 143<\/span><span class=\"rule-title\">Definition of Goods<\/span><\/div>\n <div class=\"box-blue\">\n <div class=\"box-blue-lbl\">\ud83d\udccc What \"Goods\" Includes<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udce6<\/span><span><strong>Physical goods:<\/strong> All articles, material, commodity, livestock, furniture, fixtures, raw material, spares, instruments, machinery, equipment, industrial plant, vehicles, aircraft, ships, medicines, railway rolling stock, assemblies, subassemblies, accessories, group of machineries comprising an integrated production process<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcbb<\/span><span><strong>Intangible products:<\/strong> Software, technology transfer, licences, patents or other intellectual properties \u2014 <strong>purchased or otherwise acquired for use of Government<\/strong><\/span><\/li>\n <li><span class=\"bi\">\ud83d\udd27<\/span><span><strong>Incidental works and services:<\/strong> Transportation, insurance, installation, commissioning, training and maintenance \u2014 which are <strong>incidental or consequential to the supply of such goods<\/strong><\/span><\/li>\n <\/ul>\n <\/div>\n <ul class=\"blist\" style=\"margin-top:10px\">\n <li><span class=\"bi\">\u26d4<\/span><span><strong>Excluded:<\/strong> Books, publications, periodicals, etc. for a library.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch6r144\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 144<\/span><span class=\"rule-title\">Fundamental Principles of Public Buying \u2014 Eleven Yardsticks<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83c\udfaf<\/span><span>Every authority delegated with powers to procure goods shall have the responsibility and accountability to bring <strong>efficiency, economy, and transparency<\/strong> in public procurement and for <strong>fair and equitable treatment of suppliers and promotion of competition<\/strong>.<\/span><\/li>\n <\/ul>\n <div class=\"box-amber\">\n <div class=\"box-amber-lbl\">\u2b50 Eleven Yardsticks for Public Procurement<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">(i)<\/span><span>Description of procurement shall be <strong>objective, functional, generic and measurable<\/strong> \u2014 specifying technical, qualitative and performance characteristics. <strong>No particular trade mark, trade name or brand<\/strong> to be indicated.<\/span><\/li>\n <li><span class=\"bi\">(ii)<\/span><span>Specifications shall be clearly spelt out to <strong>meet basic needs without superfluous or non-essential features<\/strong> (which may cause unwarranted expenditure).<\/span><\/li>\n <li><span class=\"bi\">(iii)<\/span><span>Technical specifications shall be based on <strong>national technical regulations or recognised national standards or building codes<\/strong>, or in their absence, relevant <strong>international standards<\/strong>. For GoI-funded projects abroad, may be based on host country standards.<\/span><\/li>\n <li><span class=\"bi\">(iv)<\/span><span>Avoid purchasing quantities <strong>in excess of requirement<\/strong> to avoid inventory carrying costs.<\/span><\/li>\n <li><span class=\"bi\">(v)<\/span><span>Offers to be invited following a <strong>fair, transparent and reasonable procedure<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">(vi)<\/span><span>Procuring authority must be satisfied that the selected offer <strong>adequately meets the requirement in all respects<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">(vii)<\/span><span>Procuring authority must satisfy itself that the price of the selected offer is <strong>reasonable and consistent with the quality required<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">(viii)<\/span><span>At each stage of procurement, the procuring authority must <strong>place on record in precise terms the considerations<\/strong> which weighed while taking the procurement decision.<\/span><\/li>\n <li><span class=\"bi\">(ix)<\/span><span>A <strong>complete schedule of procurement cycle<\/strong> from date of issuing the tender to date of issuing the contract should be published when the tender is issued.<\/span><\/li>\n <li><span class=\"bi\">(x)<\/span><span>All Ministries\/Departments shall prepare an <strong>Annual Procurement Plan before the commencement of the year<\/strong> and the same shall also be placed on their website.<\/span><\/li>\n <li><span class=\"bi\">(xi)<\/span><span>DoE may, <strong>by order in writing, impose restrictions<\/strong> (including prior registration and\/or screening) on procurement from bidders from, or having commercial arrangements with, a country or countries \u2014 on grounds of <strong>defence of India or national security<\/strong>. <strong>No procurement shall be made in violation of such restrictions.<\/strong> <span class=\"tag-red\">\u2757 National Security Restriction<\/span><\/span><\/li>\n <\/ul>\n <\/div>\n <\/div>\n\n \n <div style=\"background:#e8f0ff;border-left:5px solid #1a3a6b;padding:10px 18px;border-radius:0 6px 6px 0;margin:44px 0 10px;font-weight:700;color:#1a3a6b;font-size:14px;letter-spacing:.04em;text-transform:uppercase\">Section II \u2014 Government e-Marketplace and Authorities (Rules 145\u2013153)<\/div>\n\n \n <div class=\"rule-block\" id=\"ch6r145\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 145<\/span><span class=\"rule-title\">Authorities Competent to Purchase Goods<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udc64<\/span><span>An authority which is <strong>competent to incur expenditure<\/strong> may sanction the purchase of goods required for use in public service in accordance with the <strong>Delegation of Financial Powers Rules (DFPR)<\/strong>, following the general procedure in the rules below.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch6r146\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 146<\/span><span class=\"rule-title\">Procurement of Goods Required on Mobilisation<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83e\ude96<\/span><span>Procurement of goods required <strong>on mobilisation and\/or during the continuance of Military operations<\/strong> shall be regulated by any <strong>special rules and orders issued by the Government<\/strong> on this behalf from time to time.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch6r147\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 147<\/span><span class=\"rule-title\">Powers for Procurement of Goods<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>Ministries or Departments have been delegated <strong>full powers to make their own arrangements<\/strong> for procurement of goods and services that are <strong>not available on GeM<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\uded2<\/span><span><strong>Common use Goods and Services available on GeM<\/strong> are required to be procured <strong>mandatorily through GeM<\/strong> as per Rule 149.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch6r149\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 149<\/span><span class=\"rule-title\">Government e-Marketplace (GeM) \u2014 Three Procurement Tiers<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\uded2<\/span><span>Government of India has established <strong>GeM (Government e-Marketplace)<\/strong> for common use Goods and Services. Procurement of Goods and Services by Ministries or Departments is <strong>mandatory<\/strong> for Goods or Services available on GeM.<\/span><\/li>\n <li><span class=\"bi\">\u2705<\/span><span>Credentials of suppliers certified by <strong>GeM SPV<\/strong>. Procuring authorities certify reasonableness of rates.<\/span><\/li>\n <\/ul>\n <div class=\"box-blue\">\n <div class=\"box-blue-lbl\">\ud83d\udccc Three-Tier GeM Procurement Structure<\/div>\n <table style=\"width:100%;border-collapse:collapse;font-size:14px;margin-top:6px\">\n <thead>\n <tr style=\"background:#1a3a6b;color:#fff\">\n <th style=\"padding:8px 12px\">Tier<\/th>\n <th style=\"padding:8px 12px\">Value<\/th>\n <th style=\"padding:8px 12px\">Procedure<\/th>\n <\/tr>\n <\/thead>\n <tbody>\n <tr style=\"background:#f0f6ff;border-bottom:1px solid #d0dcef\">\n <td style=\"padding:8px 12px\"><strong>(i)<\/strong><\/td>\n <td style=\"padding:8px 12px\"><strong>Up to \u20b950,000<\/strong><\/td>\n <td style=\"padding:8px 12px\">Any available supplier on GeM meeting requisite quality, specification and delivery period. (Automobiles: no ceiling limit)<\/td>\n <\/tr>\n <tr style=\"background:#e8f0ff;border-bottom:1px solid #d0dcef\">\n <td style=\"padding:8px 12px\"><strong>(ii)<\/strong><\/td>\n <td style=\"padding:8px 12px\"><strong>Above \u20b950,000 up to \u20b910,00,000<\/strong><\/td>\n <td style=\"padding:8px 12px\">GeM Seller having <strong>lowest price among available sellers of at least 3 different manufacturers<\/strong> on GeM, meeting requisite quality, specification and delivery period. Online bidding\/reverse auction tools may be used even for procurements less than \u20b910L<\/td>\n <\/tr>\n <tr style=\"background:#f0f6ff\">\n <td style=\"padding:8px 12px\"><strong>(iii)<\/strong><\/td>\n <td style=\"padding:8px 12px\"><strong>Above \u20b910,00,000<\/strong><\/td>\n <td style=\"padding:8px 12px\">Supplier having lowest price after <strong>mandatorily obtaining bids using online bidding or reverse auction<\/strong> on GeM<\/td>\n <\/tr>\n <\/tbody>\n <\/table>\n <\/div>\n <ul class=\"blist\" style=\"margin-top:10px\">\n <li><span class=\"bi\">\ud83d\udcc5<\/span><span><strong>Annual Procurement Plan<\/strong> of goods and services shall be projected on GeM portal <strong>within 30 days of Budget approval<\/strong>. <span class=\"tag-red\">\u2757 30 days<\/span><\/span><\/li>\n <li><span class=\"bi\">\u26d4<\/span><span>A demand for goods shall <strong>not be divided into small quantities<\/strong> to make piecemeal purchases to avoid L-1 buying\/bidding\/reverse auction on GeM or to avoid the necessity of obtaining the sanction of higher authorities.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcca<\/span><span>Government Buyers may ascertain reasonableness of prices using <strong>Business Analytics (BA) tools on GeM<\/strong> including Last Purchase Price on GeM and Department's own Last Purchase Price.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccb<\/span><span>The monetary ceilings under (i)\u2013(iii) above apply <strong>only for GeM purchases<\/strong>. For purchases outside GeM, relevant GFR rules shall apply.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch6r150\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 150<\/span><span class=\"rule-title\">Registration of Suppliers \u2014 For Goods Not on GeM<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccb<\/span><span><strong>Sub-rule (i):<\/strong> For goods and services not available on GeM, Head of Ministry\/Department may register suppliers periodically following a <strong>fair, transparent and reasonable procedure with due publicity<\/strong>. Such registered suppliers should be boarded on GeM as and when the item gets listed.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udd0d<\/span><span><strong>Sub-rule (ii):<\/strong> Before registration, <strong>credentials, manufacturing capability, quality control systems, past performance, after-sales service and financial background<\/strong> shall be carefully verified.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcc5<\/span><span><strong>Sub-rule (iii):<\/strong> Registered for a <strong>fixed period of 1 to 3 years<\/strong> depending on nature of goods. At end of period, willing suppliers apply afresh for renewal. New suppliers may be considered at any time if they fulfil all conditions. <span class=\"tag-red\">\u2757 1\u20133 years<\/span><\/span><\/li>\n <li><span class=\"bi\">\ud83d\udc41\ufe0f<\/span><span><strong>Sub-rule (iv):<\/strong> Performance and conduct of every registered supplier shall be watched. Grounds for removal from approved list: failure to supply on time \u00b7 supply of substandard goods \u00b7 false declaration to any Government agency \u00b7 any ground not in public interest.<\/span><\/li>\n <li><span class=\"bi\">\ud83c\udf10<\/span><span><strong>Sub-rule (v):<\/strong> List of registered suppliers shall be <strong>exhibited on the website of the Procuring Entity \/ their e-Procurement portals<\/strong>.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch6r151\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 151<\/span><span class=\"rule-title\">Debarment from Bidding<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\u26d4<\/span><span><strong>Mandatory debarment [Sub-rule (i)]:<\/strong> A bidder shall be debarred if convicted of an offence under:\n <ul class=\"blist-sub\">\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span>The <strong>Prevention of Corruption Act, 1988<\/strong>; or<\/span><\/li>\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span>The <strong>Bharatiya Nyaya Sanhita or any other law<\/strong> for causing any loss of life or property or threat to public health as part of execution of a public procurement contract<\/span><\/li>\n <\/ul>\n <\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcc5<\/span><span><strong>Sub-rule (ii):<\/strong> A mandatorily debarred bidder or any <strong>successor<\/strong> shall not be eligible for any procuring entity for a period <strong>not exceeding three years<\/strong> from the date of debarment. <strong>DoE shall maintain the list<\/strong>, displayed on the <strong>Central Public Procurement Portal<\/strong>. <span class=\"tag-red\">\u2757 Up to 3 years \u2014 DoE\/CPPP<\/span><\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcc5<\/span><span><strong>Sub-rule (iii) \u2014 Discretionary debarment:<\/strong> A procuring entity may debar a bidder (or successors) from its own procurement processes for a period <strong>not exceeding two years<\/strong> if it determines the bidder has <strong>breached the code of integrity<\/strong>. <strong>Ministry\/Department shall maintain the list<\/strong>, displayed on <strong>their website<\/strong>. <span class=\"tag-amber\">\u26a0\ufe0f Up to 2 years \u2014 Ministry\/website<\/span><\/span><\/li>\n <li><span class=\"bi\">\u2696\ufe0f<\/span><span><strong>Sub-rule (iv):<\/strong> A bidder shall <strong>not be debarred<\/strong> unless given a <strong>reasonable opportunity to represent<\/strong> against such debarment.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch6r152\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 152<\/span><span class=\"rule-title\">Enlistment of Indian Agents for Foreign Principals<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83c\udf10<\/span><span>Ministries\/Departments, if they so require, may <strong>enlist Indian agents who desire to quote directly on behalf of their foreign principals<\/strong>.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch6r153\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 153<\/span><span class=\"rule-title\">Reserved Items and Purchase\/Price Preference Policy<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83e\uddf6<\/span><span><strong>Sub-rule (i) \u2014 Khadi and Handloom:<\/strong> All items of <strong>hand spun and hand-woven textiles (khadi goods)<\/strong> are reserved for exclusive purchase from <strong>KVIC<\/strong>. Of all textiles, at least <strong>20% mandatory procurement from handloom origin<\/strong> from KVIC and\/or Handloom Clusters (Co-operative Societies, SHG Federations, JLG, Producer Companies, Corporations, Weavers with Pehchan Cards). <span class=\"tag-red\">\u2757 20% handloom<\/span><\/span><\/li>\n <li><span class=\"bi\">\ud83c\udfed<\/span><span><strong>Sub-rule (ii) \u2014 MSME Policy:<\/strong> Ministry of MSME has notified procurement policy under <strong>Section 11 of the MSMED Act, 2006<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccb<\/span><span><strong>Sub-rule (iii) \u2014 Central Govt discretion:<\/strong> Central Government may, by notification, provide for <strong>mandatory procurement from any category of bidders<\/strong> or provide for <strong>preference to bidders<\/strong> on the grounds of promotion of locally manufactured goods or locally provided services.<\/span><\/li>\n <\/ul>\n <\/div>\n\n \n <div style=\"background:#f0faf5;border-left:5px solid #2aab6e;padding:10px 18px;border-radius:0 6px 6px 0;margin:44px 0 10px;font-weight:700;color:#1a6b5a;font-size:14px;letter-spacing:.04em;text-transform:uppercase\">Section III \u2014 Methods of Purchase (Rules 154\u2013172)<\/div>\n\n \n <div class=\"rule-block\" id=\"ch6r154\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 154<\/span><span class=\"rule-title\">Purchase of Goods Without Quotation \u2014 Up to \u20b950,000<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>When a certain item is <strong>not available on GeM portal<\/strong>, purchase of goods up to the value of <strong>\u20b950,000 on each occasion<\/strong> may be made <strong>without inviting quotations or bids<\/strong>, on the basis of a certificate to be recorded by the competent authority. <span class=\"tag-red\">\u2757 \u2264\u20b950,000<\/span><\/span><\/li>\n <\/ul>\n <div class=\"box-green\">\n <div class=\"box-green-lbl\">\ud83d\udccb Certificate Format (Rule 154)<\/div>\n <p style=\"font-style:italic;color:#1a3a00;margin:6px 0\">\"I am personally satisfied that these goods purchased are of the requisite quality and specification and have been purchased from a reliable supplier at a reasonable price.\"<\/p>\n <\/div>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch6r155\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 155<\/span><span class=\"rule-title\">Purchase of Goods by Purchase Committee \u2014 Above \u20b950,000 to \u20b95,00,000<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>When a certain item is <strong>not available on GeM portal<\/strong>, purchase of goods costing <strong>above \u20b950,000 and up to \u20b95,00,000 on each occasion<\/strong> may be made on the recommendations of a duly constituted <strong>Local Purchase Committee of 3 members<\/strong> at an appropriate level as decided by the Head of the Department. <span class=\"tag-red\">\u2757 \u20b950,000\u2013\u20b95,00,000 \u00b7 3 members<\/span><\/span><\/li>\n <li><span class=\"bi\">\ud83d\udd0d<\/span><span>The committee will <strong>survey the market<\/strong> to ascertain reasonableness of rate, quality and specifications and identify the appropriate supplier.<\/span><\/li>\n <\/ul>\n <div class=\"box-green\">\n <div class=\"box-green-lbl\">\ud83d\udccb Joint Certificate Format (Rule 155)<\/div>\n <p style=\"font-style:italic;color:#1a3a00;margin:6px 0\">\"Certified that we, members of the purchase committee are jointly and individually satisfied that the goods recommended for purchase are of the requisite specification and quality, priced at the prevailing market rate and the supplier recommended is reliable and competent to supply the goods in question, and it is not debarred by Department of Expenditure or Ministry\/Department concerned.\"<\/p>\n <\/div>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch6r157\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 157<\/span><span class=\"rule-title\">No Splitting of Demand<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\u26d4<\/span><span>A demand for goods shall <strong>not be divided into small quantities<\/strong> to make piecemeal purchases to avoid the necessity of obtaining the <strong>sanction of higher authority<\/strong> required with reference to the estimated value of the <strong>total demand<\/strong>.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch6r158\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 158<\/span><span class=\"rule-title\">Purchase of Goods by Obtaining Bids \u2014 Five Methods<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>Except in cases covered under Rules 154 and 155, Ministries or Departments shall procure goods by following the standard method of obtaining bids in:<\/span><\/li>\n <\/ul>\n <div class=\"box-blue\">\n <div class=\"box-blue-lbl\">\ud83d\udccc Five Standard Methods of Procurement (Rule 158)<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">1\ufe0f\u20e3<\/span><span><strong>Advertised Tender Enquiry<\/strong> \u2014 open to all (Rule 161)<\/span><\/li>\n <li><span class=\"bi\">2\ufe0f\u20e3<\/span><span><strong>Limited Tender Enquiry<\/strong> \u2014 to registered\/known suppliers (Rule 162)<\/span><\/li>\n <li><span class=\"bi\">3\ufe0f\u20e3<\/span><span><strong>Two-Stage Bidding<\/strong> \u2014 technical bids first, financial bids later (Rule 164)<\/span><\/li>\n <li><span class=\"bi\">4\ufe0f\u20e3<\/span><span><strong>Single Tender Enquiry<\/strong> \u2014 from a single source (Rule 166)<\/span><\/li>\n <li><span class=\"bi\">5\ufe0f\u20e3<\/span><span><strong>Electronic Reverse Auctions<\/strong> \u2014 online real-time bidding (Rule 167)<\/span><\/li>\n <\/ul>\n <\/div>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch6r159\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 159<\/span><span class=\"rule-title\">E-Publishing \u2014 Mandatory on GeM-CPPP<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udcbb<\/span><span><strong>Sub-rule (i):<\/strong> It is <strong>mandatory<\/strong> for all Ministries\/Departments, their attached and subordinate offices and Autonomous\/Statutory Bodies to <strong>publish their tender enquiries, corrigenda thereon and details of bid awards on GeM-Central Public Procurement Portal (GeM-CPPP)<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udd12<\/span><span><strong>Sub-rule (ii) \u2014 Exemption (National Security):<\/strong> Individual cases requiring confidentiality for reasons of <strong>national security<\/strong> may be exempted. Decision to exempt requires approval of <strong>Secretary of the Ministry\/Department with FA concurrence<\/strong> (for Autonomous\/Statutory Bodies: Head of Body + Head of Finance). Statistical information on exemptions (number of cases and value) shall be intimated to <strong>MoF\/DoE on a Quarterly basis<\/strong>. <span class=\"tag-red\">\u2757 Quarterly to DoE<\/span><\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccb<\/span><span><strong>Sub-rule (iii):<\/strong> Applies to all forms: tender enquiries, RFPs, Requests for EOIs, Notice for Pre-Qualification\/Registration, or any other notice inviting bids \u2014 whether advertised, limited or single party.<\/span><\/li>\n <li><span class=\"bi\">\u2705<\/span><span><strong>Sub-rule (v) \u2014 Exempted:<\/strong> Procurements under Rule 154 (without quotation) and Rule 155 (purchase committee) are <strong>not required to comply<\/strong> with e-publishing.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch6r160\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 160<\/span><span class=\"rule-title\">E-Procurement \u2014 Mandatory Receipt of Bids<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udcbb<\/span><span><strong>Sub-rule (i):<\/strong> It is <strong>mandatory<\/strong> for Ministries\/Departments to <strong>receive all bids through e-procurement portals<\/strong> in respect of all procurements.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>Sub-rule (ii):<\/strong> Low-volume procurement Ministries or those carrying out procurements only for day-to-day office running may use the <strong>e-procurement solution developed by NIC<\/strong>. Others may use NIC or engage any other service provider following due process.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udd12<\/span><span><strong>Sub-rule (iv) \u2014 Exemption:<\/strong> Where national security and strategic considerations demand confidentiality, the Ministry\/Department may exempt after seeking <strong>approval of the concerned Secretary with FA concurrence<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83c\udf0d<\/span><span><strong>Sub-rule (v):<\/strong> For <strong>tenders floated by Indian Missions Abroad<\/strong>, the Competent Authority to decide the tender may exempt from e-procurement.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch6r161\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 161<\/span><span class=\"rule-title\">Advertised Tender Enquiry \u2014 Estimated Value \u2265 \u20b950 Lakhs<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udce2<\/span><span><strong>Sub-rule (i):<\/strong> Invitation to tenders by advertisement shall be used for procurement of goods of <strong>estimated value of \u20b950 lakhs and above<\/strong>. Advertisement to be given on <strong>GeM as well as GeM-CPPP<\/strong>. Own website must also publish advertised tender enquiries. <span class=\"tag-red\">\u2757 \u2265\u20b950 lakhs<\/span><\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcc4<\/span><span><strong>Sub-rules (ii) & (iii):<\/strong> Complete bidding document to be posted on the organisation's website and on GeM-CPPP. Advertisement must give the complete web address for downloading bidding documents.<\/span><\/li>\n <li><span class=\"bi\">\ud83c\udf10<\/span><span><strong>Sub-rule (iv) \u2014 Global Tender Enquiry (GTE):<\/strong>\n <ul class=\"blist-sub\">\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span><strong>(a)<\/strong> Where goods of required quality may not be available in India, Ministry may send copies of tender notice to Indian Embassies abroad and Foreign Embassies in India. In such cases, e-procurement as per Rule 160 may not be insisted.<\/span><\/li>\n <li><span class=\"bsi\">\u26d4<\/span><span><strong>(b) No GTE<\/strong> shall be invited for tenders <strong>up to \u20b9200 crore<\/strong> (or such limit as prescribed by DoE). For tenders below such limit, GTE in exceptional cases requires detailed justification and <strong>prior approval for relaxation from the Competent Authority specified by DoE<\/strong>. <span class=\"tag-red\">\u2757 \u20b9200 crore GTE threshold<\/span><\/span><\/li>\n <\/ul>\n <\/span><\/li>\n <li><span class=\"bi\">\ud83c\udd93<\/span><span><strong>Sub-rule (v):<\/strong> <strong>No cost<\/strong> may be charged for tender documents downloaded by bidders (to promote wider participation).<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcc5<\/span><span><strong>Sub-rule (vi) \u2014 Minimum bid submission time:<\/strong> Ordinarily <strong>at least 3 weeks<\/strong> from date of publication of tender notice or availability of bidding document for sale (whichever is later). Where bids also invited from abroad: <strong>minimum 4 weeks<\/strong> for both domestic and foreign bidders. <span class=\"tag-red\">\u2757 3 weeks \/ 4 weeks (if abroad)<\/span><\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch6r162\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 162<\/span><span class=\"rule-title\">Limited Tender Enquiry \u2014 Estimated Value up to \u20b950 Lakhs<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccb<\/span><span><strong>Sub-rule (i):<\/strong> This method may be adopted when estimated value of goods to be procured is <strong>up to \u20b950 lakhs<\/strong>. Bidding documents to be sent directly by speed post\/registered post\/courier\/e-mail to firms on the <strong>list of registered suppliers<\/strong>. <strong>Number of supplier firms must be more than 3<\/strong>. Also published on GeM and GeM-CPPP. <span class=\"tag-red\">\u2757 \u2264\u20b950 lakhs \u00b7 >3 firms<\/span><\/span><\/li>\n <li><span class=\"bi\">\u26d4<\/span><span><strong>Sub-rule (ii):<\/strong> <strong>Unsolicited bids shall not be accepted<\/strong>. However, Ministries\/Departments should evolve a system by which interested firms can register and bid in the next round of tendering.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>Sub-rule (iii) \u2014 LTE permitted even above \u20b950 lakhs<\/strong> in three circumstances:\n <ul class=\"blist-sub\">\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span><strong>(a) Urgency:<\/strong> Competent authority certifies demand is urgent; additional expenditure justified; nature of urgency and reasons why procurement could not be anticipated placed on record<\/span><\/li>\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span><strong>(b) Public interest:<\/strong> Sufficient reasons, recorded in writing by competent authority, that it will not be in public interest to procure through advertised tender<\/span><\/li>\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span><strong>(c) Known sources:<\/strong> Sources of supply are definitely known and possibility of fresh sources beyond those being tapped is remote<\/span><\/li>\n <\/ul>\n <\/span><\/li>\n <li><span class=\"bi\">\u23f1\ufe0f<\/span><span><strong>Sub-rule (iv):<\/strong> Sufficient time shall be allowed for submission of bids in LTE cases.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch6r163\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 163<\/span><span class=\"rule-title\">Two-Bid System \u2014 Simultaneous Receipt of Separate Technical and Financial Bids<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udce6<\/span><span>For purchasing <strong>high-value plant, machinery etc. of a complex and technical nature<\/strong>, bids may be obtained in two parts:\n <ul class=\"blist-sub\">\n <li><span class=\"bsi\">1\ufe0f\u20e3<\/span><span><strong>Technical bid<\/strong> \u2014 all technical details along with commercial terms and conditions<\/span><\/li>\n <li><span class=\"bsi\">2\ufe0f\u20e3<\/span><span><strong>Financial bid<\/strong> \u2014 item-wise prices for the items mentioned in the technical bid<\/span><\/li>\n <\/ul>\n <\/span><\/li>\n <li><span class=\"bi\">\u2709\ufe0f<\/span><span>Both sealed in <strong>separate covers<\/strong> duly super-scribed, both placed in a <strong>bigger sealed outer cover<\/strong>, also duly super-scribed.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccb<\/span><span><strong>Process:<\/strong> Technical bids opened first \u2192 evaluated by a competent committee or authority \u2192 financial bids of <strong>only technically acceptable offers<\/strong> are opened at the second stage after intimating them the date and time of financial bid opening \u2192 further evaluation and ranking \u2192 contract awarded.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch6r164\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 164<\/span><span class=\"rule-title\">Two-Stage Bidding<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>Ministry\/Department may use two-stage bidding if any of the following conditions apply:\n <ul class=\"blist-sub\">\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span><strong>(a)<\/strong> Not feasible to formulate detailed specifications without receiving <strong>technical inputs from bidders<\/strong><\/span><\/li>\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span><strong>(b)<\/strong> Subject matter is subject to <strong>rapid technological advances or market fluctuations<\/strong><\/span><\/li>\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span><strong>(c)<\/strong> Contract is for <strong>research, experiment, study or development<\/strong> (except where it includes production of items in quantities sufficient to establish commercial viability or recover R&D costs)<\/span><\/li>\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span><strong>(d)<\/strong> Bidder expected to carry out a <strong>detailed survey\/investigation and comprehensive risk, cost and obligation assessment<\/strong><\/span><\/li>\n <\/ul>\n <\/span><\/li>\n <\/ul>\n <div class=\"box-blue\">\n <div class=\"box-blue-lbl\">\ud83d\udccc Two-Stage Bidding Procedure<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">1\ufe0f\u20e3<\/span><span><strong>First Stage:<\/strong> Ministry\/Department invites bids through advertised tender with technical aspects and contractual terms \u2014 <strong>without bid price<\/strong><\/span><\/li>\n <li><span class=\"bi\">2\ufe0f\u20e3<\/span><span>All eligible first-stage bids evaluated through a <strong>committee<\/strong>. Committee may hold discussions with bidders \u2014 <strong>equal opportunity to all<\/strong><\/span><\/li>\n <li><span class=\"bi\">3\ufe0f\u20e3<\/span><span>Procuring entity may <strong>add, amend or omit any specification or evaluation criterion<\/strong>, but shall not modify the <strong>fundamental nature of the procurement<\/strong><\/span><\/li>\n <li><span class=\"bi\">4\ufe0f\u20e3<\/span><span><strong>Second Stage:<\/strong> Bids invited from all bidders whose first-stage bids were not rejected \u2014 to present <strong>final bids with prices<\/strong> in response to a <strong>revised set of terms and conditions<\/strong><\/span><\/li>\n <li><span class=\"bi\">5\ufe0f\u20e3<\/span><span>Any bidder who cannot supply due to modifications in specifications may <strong>withdraw from bidding proceedings without forfeiting any bid security and without being penalised<\/strong>, by declaring intention to withdraw with adequate justification<\/span><\/li>\n <\/ul>\n <\/div>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch6r165\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 165<\/span><span class=\"rule-title\">Late Bids \u2014 Not to Be Considered<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\u26d4<\/span><span>In the case of advertised tender enquiry or limited tender enquiry, <strong>late bids<\/strong> (i.e., bids received after the specified date and time for receipt of bids) <strong>should not be considered<\/strong>.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch6r166\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 166<\/span><span class=\"rule-title\">Single Tender Enquiry \u2014 Three Circumstances<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>Procurement from a <strong>single source<\/strong> may be resorted to in the following circumstances:\n <ul class=\"blist-sub\">\n <li><span class=\"bsi\">1\ufe0f\u20e3<\/span><span><strong>(i)<\/strong> It is in the knowledge of the user department that <strong>only a particular firm is the manufacturer<\/strong> of the required goods<\/span><\/li>\n <li><span class=\"bsi\">2\ufe0f\u20e3<\/span><span><strong>(ii)<\/strong> In a case of <strong>emergency<\/strong>, the required goods are necessarily to be purchased from a particular source \u2014 reason to be <strong>recorded<\/strong> and <strong>approval of competent authority<\/strong> obtained<\/span><\/li>\n <li><span class=\"bsi\">3\ufe0f\u20e3<\/span><span><strong>(iii)<\/strong> For <strong>standardisation of machinery or spare parts<\/strong> to be compatible to existing sets of equipment \u2014 on the advice of a <strong>competent technical expert<\/strong> and approved by the <strong>competent authority<\/strong><\/span><\/li>\n <\/ul>\n <\/span><\/li>\n <\/ul>\n <div class=\"box-amber\">\n <div class=\"box-amber-lbl\">\u2b50 Proprietary Article Certificate \u2014 Required for Circumstances (i) and (iii)<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccb<\/span><span>(i) The indented goods are manufactured by M\/s \u2026\u2026\u2026\u2026\u2026<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccb<\/span><span>(ii) No other make or model is acceptable for the following reasons: \u2026\u2026\u2026\u2026\u2026<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccb<\/span><span>(iii) Concurrence of finance wing to the proposal vide: \u2026\u2026\u2026\u2026\u2026<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccb<\/span><span>(iv) Approval of the competent authority vide: (Signature with date and designation of the indenting officer)<\/span><\/li>\n <\/ul>\n <\/div>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch6r167\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 167<\/span><span class=\"rule-title\">Electronic Reverse Auction<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udcbb<\/span><span><strong>Sub-rule (i):<\/strong> Electronic Reverse Auction means an <strong>online real-time purchasing technique<\/strong> where bidders present <strong>successively more favourable bids<\/strong> during a scheduled period of time, with automatic evaluation.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>Sub-rule (ii) \u2014 Conditions:<\/strong> A procuring entity may use electronic reverse auction if:\n <ul class=\"blist-sub\">\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span><strong>(a)<\/strong> It is feasible to formulate a <strong>detailed description<\/strong> of the subject matter<\/span><\/li>\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span><strong>(b)<\/strong> There is a <strong>competitive market<\/strong> of qualified bidders anticipated to participate \u2014 to ensure effective competition<\/span><\/li>\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span><strong>(c)<\/strong> Criteria for determining the successful bid are <strong>quantifiable and can be expressed in monetary terms<\/strong><\/span><\/li>\n <\/ul>\n <\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccb<\/span><span><strong>Sub-rule (iii) \u2014 Procedure:<\/strong> Solicit bids through an invitation published\/communicated as per e-procurement provisions. The invitation shall include details relating to access and registration for the auction, opening and closing of the auction, and norms for conduct of the auction.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch6r168\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 168<\/span><span class=\"rule-title\">Contents of Bidding Document \u2014 Seven Chapters<\/span><\/div>\n <div class=\"box-blue\">\n <div class=\"box-blue-lbl\">\ud83d\udccc Standard Bidding Document \u2014 Seven Chapters<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">Ch.1<\/span><span><strong>Instructions to Bidders<\/strong><\/span><\/li>\n <li><span class=\"bi\">Ch.2<\/span><span><strong>Conditions of Contract<\/strong><\/span><\/li>\n <li><span class=\"bi\">Ch.3<\/span><span><strong>Schedule of Requirements<\/strong><\/span><\/li>\n <li><span class=\"bi\">Ch.4<\/span><span><strong>Specifications and Allied Technical Details<\/strong><\/span><\/li>\n <li><span class=\"bi\">Ch.5<\/span><span><strong>Price Schedule<\/strong> (to be utilised by bidders for quoting their prices)<\/span><\/li>\n <li><span class=\"bi\">Ch.6<\/span><span><strong>Contract Form<\/strong><\/span><\/li>\n <li><span class=\"bi\">Ch.7<\/span><span><strong>Other Standard Forms<\/strong>, if any, to be utilised by the purchaser and the bidders<\/span><\/li>\n <\/ul>\n <\/div>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch6r169\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 169<\/span><span class=\"rule-title\">Maintenance Contract<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udd27<\/span><span>Depending on cost and nature of goods, it may be necessary to enter into <strong>maintenance contract(s) of suitable period<\/strong>, either with the supplier of the goods or with any other competent firm.<\/span><\/li>\n <li><span class=\"bi\">\u26a0\ufe0f<\/span><span>Especially needed for <strong>sophisticated and costly equipment and machinery<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcc5<\/span><span>Equipment or machinery is maintained <strong>free of charge by the supplier during its warranty period<\/strong> or such other extended periods as the contract terms may provide. <strong>Paid maintenance shall commence only thereafter<\/strong>.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch6r170\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 170<\/span><span class=\"rule-title\">Bid Security (Earnest Money)<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udd10<\/span><span><strong>Purpose:<\/strong> To safeguard against a bidder's withdrawing or altering its bid during the bid validity period in the case of advertised or limited tender enquiry.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcb0<\/span><span><strong>Amount:<\/strong> Ordinarily <strong>2% to 5%<\/strong> of the estimated value of goods to be procured. Amount to be determined and indicated in bidding documents. <span class=\"tag-red\">\u2757 2%\u20135%<\/span><\/span><\/li>\n <li><span class=\"bi\">\u2705<\/span><span><strong>Exempted from bid security:<\/strong> MSEs (as defined in MSME Procurement Policy) \u00b7 Suppliers registered with Central Purchase Organisation or concerned Ministry\/Department \u00b7 <strong>Startups recognised by DPIIT<\/strong><\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccb<\/span><span><strong>Acceptable forms:<\/strong> Insurance Surety Bonds \u00b7 Account Payee Demand Draft \u00b7 Fixed Deposit Receipt \u00b7 Banker's Cheque \u00b7 Bank Guarantee (including e-Bank Guarantee) from any Commercial Bank \u00b7 Online payment in acceptable form<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcc5<\/span><span>Bid security to remain valid for a period of <strong>45 days beyond the final bid validity period<\/strong>. <span class=\"tag-red\">\u2757 45 days beyond bid validity<\/span><\/span><\/li>\n <li><span class=\"bi\">\ud83d\udd04<\/span><span><strong>Return of bid security:<\/strong> Unsuccessful bidders \u2014 returned at the earliest after expiry of final bid validity and <strong>latest on or before the 30th day after the award of the contract<\/strong>. <span class=\"tag-red\">\u2757 30th day after award<\/span><\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>Two-packet\/two-stage bidding:<\/strong> Bid securities of unsuccessful bidders at the <strong>first stage (technical evaluation)<\/strong> shall be returned <strong>within 30 days of declaration of first-stage result<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccb<\/span><span><strong>Alternative \u2014 Bid Securing Declaration:<\/strong> In place of bid security, Ministries\/Departments may require bidders to sign a <strong>Bid Securing Declaration<\/strong> \u2014 accepting that if they withdraw\/modify their bid during validity, or fail to sign the contract or submit performance security before the deadline, they will be <strong>suspended for the specified period from being eligible to submit bids<\/strong> for contracts with that entity.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch6r171\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 171<\/span><span class=\"rule-title\">Performance Security<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udd10<\/span><span><strong>Purpose:<\/strong> To ensure due performance of the contract. Obtained from the <strong>successful bidder awarded the contract<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcb0<\/span><span><strong>Amount:<\/strong> For procurement of <strong>Goods\/Consultancy Services\/Non-Consultancy Services<\/strong>: <strong>3% to 5%<\/strong> of the value of the contract as specified in bid documents. <span class=\"tag-red\">\u2757 3%\u20135% (Goods\/Consultancy\/Non-Consultancy)<\/span><\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><em>Note:<\/em> Amount of Performance Security <strong>plus security deposit\/retention money for procurement of Works<\/strong> will continue to be <strong>3% to 10%<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccb<\/span><span><strong>Acceptable forms:<\/strong> Insurance Surety Bond \u00b7 Account Payee Demand Draft \u00b7 Fixed Deposit Receipt from a Commercial Bank \u00b7 Bank Guarantee (including e-Bank Guarantee) from a Commercial Bank \u00b7 Online payment in acceptable form<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcc5<\/span><span>Performance Security should remain valid for a period of <strong>60 days beyond the date of completion of all contractual obligations including warranty obligations<\/strong>. <span class=\"tag-red\">\u2757 60 days beyond completion + warranty<\/span><\/span><\/li>\n <li><span class=\"bi\">\ud83d\udd04<\/span><span>Bid security shall be <strong>refunded to the successful bidder on receipt of Performance Security<\/strong>.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch6r172\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 172(1)<\/span><span class=\"rule-title\">Advance Payment to Supplier \u2014 Ceilings and Safeguards<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>Ordinarily, payments for services rendered or supplies made should be <strong>released only after the services have been rendered or supplies made<\/strong>. However, advance payments may be made in the following types of cases:\n <ul class=\"blist-sub\">\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span>Advance demanded by firms holding <strong>maintenance contracts<\/strong> for servicing of Air-conditioners, computers, other costly equipment, etc.<\/span><\/li>\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span>Advance demanded by firms against <strong>fabrication contracts, turn-key contracts<\/strong>, etc.<\/span><\/li>\n <\/ul>\n <\/span><\/li>\n <\/ul>\n <div class=\"box-amber\">\n <div class=\"box-amber-lbl\">\u2b50 Advance Payment Ceilings \u2014 Rule 172(1)<\/div>\n <table style=\"width:100%;border-collapse:collapse;font-size:14px;margin-top:6px\">\n <thead>\n <tr style=\"background:#c9a227;color:#1a3400\">\n <th style=\"padding:8px 12px;text-align:left\">Recipient<\/th>\n <th style=\"padding:8px 12px;text-align:left\">Ceiling<\/th>\n <\/tr>\n <\/thead>\n <tbody>\n <tr style=\"background:#fffdf0;border-bottom:1px solid #e8e0c0\">\n <td style=\"padding:8px 12px\"><strong>Private firms<\/strong><\/td>\n <td style=\"padding:8px 12px\"><strong>30%<\/strong> of the contract value<\/td>\n <\/tr>\n <tr style=\"background:#fff8e8;border-bottom:1px solid #e8e0c0\">\n <td style=\"padding:8px 12px\"><strong>State or Central Government agency or PSU<\/strong><\/td>\n <td style=\"padding:8px 12px\"><strong>40%<\/strong> of the contract value<\/td>\n <\/tr>\n <tr style=\"background:#fffdf0\">\n <td style=\"padding:8px 12px\"><strong>Maintenance contracts<\/strong><\/td>\n <td style=\"padding:8px 12px\">Amount should not exceed the amount payable for <strong>6 months<\/strong> under the contract<\/td>\n <\/tr>\n <\/tbody>\n <\/table>\n <\/div>\n <ul class=\"blist\" style=\"margin-top:10px\">\n <li><span class=\"bi\">\u2696\ufe0f<\/span><span>Ministries or Departments may <strong>relax these ceilings<\/strong> (including the 30% for private firms) in consultation with their <strong>Financial Advisers<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udd10<\/span><span>While making any advance payment, <strong>adequate safeguards in the form of bank guarantee<\/strong> etc. shall be obtained from the firm.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch6r172b\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 172(2)<\/span><span class=\"rule-title\">Part Payment to Suppliers<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>Depending on the terms of delivery incorporated in a contract, <strong>part payment to the supplier may be released<\/strong> after it <strong>dispatches the goods from its premises<\/strong> in terms of the contract.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"box-amber\" style=\"margin-top:36px\">\n <div class=\"box-amber-lbl\">\u2b50 Key Numbers and Facts to Remember \u2014 Chapter 6<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>GeM tiers:<\/strong> \u2264\u20b950,000 (any seller) \u00b7 \u20b950,000\u2013\u20b910L (lowest among \u22653 manufacturers) \u00b7 >\u20b910L (online bidding\/reverse auction mandatory) (R.149)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>Annual Procurement Plan<\/strong> on GeM portal within <strong>30 days of Budget approval<\/strong> (R.149)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>Supplier registration period: 1\u20133 years<\/strong> depending on nature of goods (R.150)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>Debarment:<\/strong> Mandatory conviction \u2014 up to <strong>3 years<\/strong> (DoE maintains list on CPPP) \u00b7 Code of Integrity breach \u2014 up to <strong>2 years<\/strong> (Ministry maintains list on website) (R.151)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>Handloom textiles:<\/strong> At least <strong>20%<\/strong> mandatory from KVIC\/Handloom Clusters (R.153)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>Purchase without quotation:<\/strong> \u2264<strong>\u20b950,000<\/strong> \u00b7 Personal satisfaction certificate by competent authority (R.154)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>Purchase Committee:<\/strong> Above <strong>\u20b950,000 to \u20b95,00,000<\/strong> \u00b7 <strong>3-member<\/strong> Local Purchase Committee (R.155)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>5 procurement methods<\/strong>: Advertised Tender \u00b7 Limited Tender \u00b7 Two-Stage Bidding \u00b7 Single Tender \u00b7 Electronic Reverse Auction (R.158)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>E-Publishing exemptions<\/strong> (national security): Secretary + FA concurrence \u00b7 Quarterly statistics to DoE (R.159)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>Advertised Tender:<\/strong> \u2265<strong>\u20b950 lakhs<\/strong> \u00b7 Min <strong>3 weeks<\/strong> for bid submission (<strong>4 weeks<\/strong> if foreign bids) \u00b7 No GTE for tenders \u2264<strong>\u20b9200 crore<\/strong> (R.161)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>Limited Tender:<\/strong> Up to <strong>\u20b950 lakhs<\/strong> \u00b7 More than <strong>3 firms<\/strong> \u00b7 Unsolicited bids not accepted (R.162)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>Single Tender:<\/strong> 3 circumstances: sole manufacturer \/ emergency \/ standardisation of spares \u00b7 Proprietary Article Certificate for (i) & (iii) (R.166)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>Bidding document:<\/strong> 7 chapters (R.168)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>Bid Security:<\/strong> <strong>2%\u20135%<\/strong> of estimated value \u00b7 Exempted: MSEs, registered suppliers, DPIIT Startups \u00b7 Valid <strong>45 days beyond bid validity<\/strong> \u00b7 Returned by <strong>30th day after contract award<\/strong> (R.170)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>Performance Security:<\/strong> <strong>3%\u20135%<\/strong> (goods\/consultancy\/non-consultancy) \u00b7 <strong>3%\u201310%<\/strong> (works) \u00b7 Valid <strong>60 days beyond completion + warranty<\/strong> (R.171)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>Advance payment:<\/strong> <strong>30%<\/strong> (private firms) \u00b7 <strong>40%<\/strong> (Govt agency\/PSU) \u00b7 <strong>6 months<\/strong> (maintenance contracts) \u00b7 Bank guarantee\/safeguards mandatory (R.172)<\/span><\/li>\n <\/ul>\n <\/div>\n\n\n \n <div style=\"background:#fffbe6;border-left:5px solid #c9a227;padding:10px 18px;border-radius:0 6px 6px 0;margin:44px 0 10px;font-weight:700;color:#7a5500;font-size:14px;letter-spacing:.04em;text-transform:uppercase\">Section IV \u2014 Transparency, Integrity and Buy-Back (Rules 173\u2013176)<\/div>\n\n \n <div class=\"rule-block\" id=\"ch6r173\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 173<\/span><span class=\"rule-title\">Transparency, Competition, Fairness and Elimination of Arbitrariness \u2014 Twenty-Two Measures<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83c\udfaf<\/span><span>All Government purchases should be made in a <strong>transparent, competitive and fair manner<\/strong> to secure best value for money and enable prospective bidders to formulate competitive bids with confidence.<\/span><\/li>\n <\/ul>\n <div class=\"box-blue\">\n <div class=\"box-blue-lbl\">\ud83d\udccc Key Measures \u2014 Rule 173<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">(i)<\/span><span><strong>Bidding document must be self-contained and comprehensive<\/strong> without ambiguities. Essential elements to include:\n <ul class=\"blist-sub\">\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span>(a) Description, specifications, quantity, time and place of delivery<\/span><\/li>\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span>(b) Eligibility and qualification criteria (experience, technical capability, financial position, etc.)<\/span><\/li>\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span>(c) Eligibility criteria for goods (legal restrictions, origin conditions)<\/span><\/li>\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span>(d) Procedure, date, time and place for sending bids<\/span><\/li>\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span>(e) Date, time and place of bid opening<\/span><\/li>\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span>(f) Criteria for evaluation of bids<\/span><\/li>\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span>(g) Special terms affecting performance<\/span><\/li>\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span>(h) Essential terms of the procurement contract<\/span><\/li>\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span>(i) Clause that <strong>NIL charges\/consideration bid = unresponsive, not to be considered<\/strong><\/span><\/li>\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span><em>Note:<\/em> Prior turnover and prior experience conditions may be <strong>relaxed for Startups<\/strong> (DIPP-defined), subject to quality and technical specifications<\/span><\/li>\n <\/ul>\n <\/span><\/li>\n <li><span class=\"bi\">(iii)<\/span><span><strong>Modification to bidding document:<\/strong>\n <ul class=\"blist-sub\">\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span>(a) Material modifications\/clarifications must be published\/communicated in the same manner as the original<\/span><\/li>\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span>(b) If clarification\/modification is issued, time limit for bid submission must be extended if more time is required<\/span><\/li>\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span>(c) Bidders who submitted against original invitation may <strong>modify, re-submit or withdraw<\/strong> their bid within the (extended) time if modification materially affects essential terms. The <strong>last submitted or modified bid shall be considered for evaluation<\/strong><\/span><\/li>\n <\/ul>\n <\/span><\/li>\n <li><span class=\"bi\">(iv)<\/span><span>Suitable provision to enable bidder to <strong>question the bidding conditions, process and\/or rejection of its bid<\/strong>. Reasons for rejecting a tender or non-issuance of tender document must be <strong>disclosed on enquiry<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">(v)<\/span><span>Provision for <strong>settlement of disputes<\/strong> arising from the resultant contract to be kept in the bidding document.<\/span><\/li>\n <li><span class=\"bi\">(vi)<\/span><span>Bidding document to clearly state that the resultant contract will be interpreted under <strong>Indian Laws<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">(vii)<\/span><span>Bidders should be given <strong>reasonable time<\/strong> to prepare and send their bids.<\/span><\/li>\n <li><span class=\"bi\">(viii)<\/span><span>Bids should be <strong>opened in public<\/strong> and authorised representatives of bidders shall be <strong>permitted to attend bid opening<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">(ix)<\/span><span>Specifications should be clearly stated without ambiguity and should be <strong>broad-based to the extent feasible<\/strong> to attract sufficient bidders.<\/span><\/li>\n <li><span class=\"bi\">(x)<\/span><span><strong>Pre-bid conference:<\/strong> Suitable provision to be kept for one or more rounds of pre-bid conference for turn-key contracts, sophisticated\/costly equipment or wherever felt necessary. Date, time, place to be indicated in bidding document (sufficiently ahead of bid opening). Records of conference to be <strong>intimated to all bidders and exhibited on website(s)<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">(xi)<\/span><span><strong>Responsiveness criteria for evaluation:<\/strong> (a) Time of delivery \u00b7 (b) Performance\/efficiency\/environmental characteristics \u00b7 (c) Terms of payment and guarantees \u00b7 (d) Price \u00b7 (e) Cost of operating, maintaining and repairing<\/span><\/li>\n <li><span class=\"bi\">(xii)<\/span><span>Bids must be evaluated in terms of conditions <strong>already in the bidding document<\/strong>. <strong>No new condition<\/strong> to be brought in during evaluation. Responsiveness determined based on <strong>contents of the bid itself without recourse to extrinsic evidence<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">(xiii)<\/span><span>Bidders shall <strong>not be permitted to alter or modify their bids<\/strong> after expiry of the deadline for receipt of bids.<\/span><\/li>\n <li><span class=\"bi\">(xiv)<\/span><span><strong>Post-bid negotiation must be severely discouraged.<\/strong> In exceptional circumstances (ad-hoc procurement, unavoidable circumstances), price negotiation may be resorted to <strong>only with the lowest evaluated responsive bidder<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">(xvi)<\/span><span>Contract should ordinarily be awarded to the <strong>lowest evaluated bidder<\/strong> whose bid is responsive and who is eligible and qualified. Where the lowest acceptable bidder for ad-hoc requirement cannot supply the full quantity, the remaining quantity shall, as far as possible, be ordered from the <strong>next higher responsive bidder at the rates offered by the lowest<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">(xvii)<\/span><span><strong>Energy Efficient Electrical Appliances:<\/strong> Ministries\/Departments while procuring electrical appliances notified by DoE shall ensure they carry the notified threshold or <strong>higher Star Rating of BEE (Bureau of Energy Efficiency)<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">(xviii)<\/span><span>Name of the successful bidder shall be mentioned on <strong>GeM-CPPP, Ministry\/Department website and notice board or bulletin<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">(xix)<\/span><span><strong>Rejection of all bids is justified when:<\/strong>\n <ul class=\"blist-sub\">\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span>(a) Effective competition is lacking<\/span><\/li>\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span>(b) All bids\/proposals are not substantially responsive to procurement document requirements<\/span><\/li>\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span>(c) Bid prices are substantially higher than updated cost estimate or available budget<\/span><\/li>\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span>(d) None of the technical proposals meets the minimum technical qualifying score<\/span><\/li>\n <\/ul>\n <\/span><\/li>\n <li><span class=\"bi\">(xx)<\/span><span><strong>Lack of competition [under (xix)] shall not be determined solely on the basis of the number of bidders.<\/strong> Even if only one bid is submitted, the process may be considered valid if: (a) procurement was satisfactorily advertised with sufficient time \u00b7 (b) qualification criteria were not unduly restrictive \u00b7 (c) prices are reasonable compared to market values.<\/span><\/li>\n <li><span class=\"bi\">(xxi)<\/span><span>When a limited or open tender results in <strong>only one effective offer<\/strong>, it shall be treated as a <strong>single tender contract<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">(xxii)<\/span><span>In a Purchase Committee where estimated value of procurement exceeds <strong>\u20b950 lakhs<\/strong>, <strong>no member of the purchase committee should report directly to any other member<\/strong> of that committee. <span class=\"tag-red\">\u2757 >\u20b950L \u2014 no direct reporting relationship<\/span><\/span><\/li>\n <\/ul>\n <\/div>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch6r174\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 174<\/span><span class=\"rule-title\">Efficiency, Economy and Accountability in Public Procurement<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\u23f1\ufe0f<\/span><span><strong>(i)<\/strong> To reduce delay, appropriate <strong>time frame for each stage of procurement<\/strong> should be prescribed by the Ministry or Department.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccb<\/span><span><strong>(ii)<\/strong> To minimise time for decision-making and contract placement, every Ministry\/Department, with the approval of the competent authority, may <strong>delegate appropriate purchasing powers to lower functionaries<\/strong> wherever necessary.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcc5<\/span><span><strong>(iii)<\/strong> Ministries\/Departments should ensure placement of contract <strong>within the original validity of the bids<\/strong>. <strong>Extension of bid validity must be discouraged<\/strong> and resorted to only in exceptional circumstances.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch6r175\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 175<\/span><span class=\"rule-title\">Code of Integrity \u2014 Eight Prohibitions and Two Disclosures<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\u2696\ufe0f<\/span><span><strong>Sub-rule (1):<\/strong> No official of a procuring entity or a bidder shall act in contravention of the Code, which includes:<\/span><\/li>\n <\/ul>\n <div class=\"box-red\">\n <div class=\"box-red-lbl\">\u26d4 Eight Prohibited Acts \u2014 Rule 175(1)(i)<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">(a)<\/span><span><strong>Bribery<\/strong> \u2014 making offer, solicitation or acceptance of bribe, reward, gift or any material benefit (directly or indirectly) in exchange for unfair advantage or to influence the procurement process<\/span><\/li>\n <li><span class=\"bi\">(b)<\/span><span><strong>Misrepresentation<\/strong> \u2014 any omission or misrepresentation that may mislead or attempt to mislead so that financial or other benefit may be obtained or an obligation avoided<\/span><\/li>\n <li><span class=\"bi\">(c)<\/span><span><strong>Collusion \/ Bid rigging<\/strong> \u2014 any collusion, bid rigging or anticompetitive behaviour that may impair transparency, fairness and progress of the procurement process<\/span><\/li>\n <li><span class=\"bi\">(d)<\/span><span><strong>Improper use of information<\/strong> \u2014 improper use of information provided by the procuring entity to the bidder for gaining unfair advantage or for personal gain<\/span><\/li>\n <li><span class=\"bi\">(e)<\/span><span><strong>Conflict transactions<\/strong> \u2014 any financial or business transactions between the bidder and any official of the procuring entity related to the tender or execution of contract, which can affect the decision of the procuring entity directly or indirectly<\/span><\/li>\n <li><span class=\"bi\">(f)<\/span><span><strong>Coercion \/ threat<\/strong> \u2014 any coercion or threat to impair or harm, directly or indirectly, any party or its property to influence the procurement process<\/span><\/li>\n <li><span class=\"bi\">(g)<\/span><span><strong>Obstruction<\/strong> \u2014 obstruction of any investigation or auditing of a procurement process<\/span><\/li>\n <li><span class=\"bi\">(h)<\/span><span><strong>False declaration<\/strong> \u2014 making false declaration or providing false information for participation in a tender process or to secure a contract<\/span><\/li>\n <\/ul>\n <\/div>\n <ul class=\"blist\" style=\"margin-top:10px\">\n <li><span class=\"bi\">\ud83d\udce2<\/span><span><strong>Sub-rule (1)(ii):<\/strong> <strong>Disclosure of conflict of interest<\/strong> is mandatory.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udce2<\/span><span><strong>Sub-rule (1)(iii):<\/strong> Bidder must disclose any <strong>previous transgressions<\/strong> of sub-clause (i) with any entity in any country <strong>during the last 3 years<\/strong>, or of being debarred by any other procuring entity. <span class=\"tag-red\">\u2757 3-year lookback<\/span><\/span><\/li>\n <li><span class=\"bi\">\u2696\ufe0f<\/span><span><strong>Sub-rule (2):<\/strong> The procuring entity, after giving a <strong>reasonable opportunity of being heard<\/strong>, may take appropriate measures if it concludes that a bidder or prospective bidder has contravened the code of integrity.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch6r176\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 176<\/span><span class=\"rule-title\">Buy-Back Offer<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udd04<\/span><span>When it is decided, with the approval of the <strong>competent authority<\/strong>, to replace an existing old item with a new and better version, the department may <strong>trade the existing old item while purchasing the new one<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccb<\/span><span>A suitable clause shall be incorporated in the bidding document so that prospective bidders can formulate their bids accordingly. The time and mode of handing over the old item to the successful bidder shall be decided based on its value and condition.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>The bidding document should also provide suitable provision to enable the purchaser to <strong>either trade or not trade the item<\/strong> while purchasing the new one (option kept open).<\/span><\/li>\n <\/ul>\n <\/div>\n\n \n <div style=\"background:#f0faf5;border-left:5px solid #2aab6e;padding:10px 18px;border-radius:0 6px 6px 0;margin:44px 0 10px;font-weight:700;color:#1a6b5a;font-size:14px;letter-spacing:.04em;text-transform:uppercase\">Section V \u2014 Consulting Services (Rules 177\u2013196)<\/div>\n\n \n <div class=\"rule-block\" id=\"ch6r177\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 177<\/span><span class=\"rule-title\">Definition of Consulting Services<\/span><\/div>\n <div class=\"box-blue\">\n <div class=\"box-blue-lbl\">\ud83d\udccc Consulting Service vs Non-Consulting Service<\/div>\n <table style=\"width:100%;border-collapse:collapse;font-size:14px;margin-top:6px\">\n <thead>\n <tr style=\"background:#1a3a6b;color:#fff\">\n <th style=\"padding:8px 12px;text-align:left\">Type<\/th>\n <th style=\"padding:8px 12px;text-align:left\">Nature<\/th>\n <th style=\"padding:8px 12px;text-align:left\">Examples<\/th>\n <\/tr>\n <\/thead>\n <tbody>\n <tr style=\"background:#f0f6ff;border-bottom:1px solid #d0dcef\">\n <td style=\"padding:8px 12px\"><strong>Consulting Services<\/strong><\/td>\n <td style=\"padding:8px 12px\">Primarily <strong>non-physical, project-specific, intellectual and procedural processes<\/strong> where outcomes\/deliverables vary from one consultant to another \u00b7 Does NOT include direct engagement of a retired Government servant<\/td>\n <td style=\"padding:8px 12px\">Management consultants, policy consultants, communications consultants, feasibility studies, project management, engineering services, finance\/accounting\/taxation services, training and development<\/td>\n <\/tr>\n <tr style=\"background:#e8f0ff\">\n <td style=\"padding:8px 12px\"><strong>Non-Consulting Services<\/strong><\/td>\n <td style=\"padding:8px 12px\">Involve <strong>physical, measurable deliverables\/outcomes<\/strong> where performance standards can be clearly identified and consistently applied<\/td>\n <td style=\"padding:8px 12px\">Maintenance, hiring of vehicles, building facilities management, security, photocopier service, janitor, office errand services, drilling, aerial photography, satellite imagery, mapping<\/td>\n <\/tr>\n <\/tbody>\n <\/table>\n <\/div>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch6r178\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rules 178\u2013182<\/span><span class=\"rule-title\">Engagement of Consultants \u2014 Preliminary Steps<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccb<\/span><span><strong>R.178:<\/strong> Ministries\/Departments may hire <strong>external professionals, consultancy firms or consultants<\/strong> for a specific job, which is well defined in terms of content and time frame for its completion.<\/span><\/li>\n <li><span class=\"bi\">\u2705<\/span><span><strong>R.180:<\/strong> Engagement of consultants may be resorted to in situations requiring <strong>high quality services for which the Ministry\/Department does not have requisite expertise<\/strong>. <strong>Approval of the competent authority<\/strong> shall be obtained before engaging consultants.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcdd<\/span><span><strong>R.181:<\/strong> Ministries\/Departments should prepare in simple and concise language the <strong>requirement, objectives and scope of the assignment<\/strong>. Eligibility and prequalification criteria for consultants should also be identified at this stage.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcb0<\/span><span><strong>R.182:<\/strong> Ministry\/Department should <strong>estimate reasonable expenditure<\/strong> by ascertaining prevalent market conditions and consulting other organisations engaged in similar activities.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch6r183\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 183<\/span><span class=\"rule-title\">Identification of Likely Sources \u2014 Two Tiers<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccb<\/span><span><strong>Sub-rule (i) \u2014 Estimated cost up to \u20b950 lakhs:<\/strong> Preparation of a <strong>long list of potential consultants<\/strong> may be done on the basis of formal or informal enquiries from other Ministries\/Departments, Chambers of Commerce & Industry, Association of consultancy firms, etc.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udce2<\/span><span><strong>Sub-rule (ii) \u2014 Estimated cost above \u20b950 lakhs:<\/strong> In addition to (i), an enquiry for seeking <strong>Expression of Interest (EOI)<\/strong> shall be published on <strong>GeM as well as GeM-CPPP<\/strong> (and own website). EOI should include: broad scope of work \u00b7 inputs to be provided by Ministry \u00b7 eligibility and prequalification criteria \u00b7 consultant's past experience in similar work. Consultants may be asked for comments on objectives and scope. Adequate time shall be allowed. <span class=\"tag-red\">\u2757 >\u20b950L \u2014 EOI on GeM-CPPP<\/span><\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch6r184\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 184<\/span><span class=\"rule-title\">Short-Listing of Consultants \u2014 Minimum Three<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccb<\/span><span>On the basis of responses received as per Rule 183, consultants meeting requirements should be short-listed. <strong>Number of short-listed consultants should not be less than three<\/strong>. <span class=\"tag-red\">\u2757 Minimum 3<\/span><\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch6r185\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 185<\/span><span class=\"rule-title\">Preparation of Terms of Reference (TOR) \u2014 Five Elements<\/span><\/div>\n <div class=\"box-amber\">\n <div class=\"box-amber-lbl\">\u2b50 TOR Must Include \u2014 Five Elements<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">1\ufe0f\u20e3<\/span><span>Precise <strong>statement of objectives<\/strong><\/span><\/li>\n <li><span class=\"bi\">2\ufe0f\u20e3<\/span><span>Outline of the <strong>tasks to be carried out<\/strong><\/span><\/li>\n <li><span class=\"bi\">3\ufe0f\u20e3<\/span><span><strong>Schedule for completion<\/strong> of tasks<\/span><\/li>\n <li><span class=\"bi\">4\ufe0f\u20e3<\/span><span>The <strong>support or inputs to be provided by the Ministry\/Department<\/strong> to facilitate the consultancy<\/span><\/li>\n <li><span class=\"bi\">5\ufe0f\u20e3<\/span><span>The <strong>final outputs<\/strong> that will be required of the Consultant<\/span><\/li>\n <\/ul>\n <\/div>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch6r186\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 186<\/span><span class=\"rule-title\">Preparation and Issue of Request for Proposal (RFP) \u2014 Nine Contents<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccb<\/span><span>RFP is the document used by the Ministry\/Department for obtaining offers from consultants. Issued to <strong>short-listed consultants<\/strong> to seek their technical and financial proposals. RFP should contain:<\/span><\/li>\n <\/ul>\n <div class=\"box-blue\">\n <div class=\"box-blue-lbl\">\ud83d\udccc Nine Contents of an RFP<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">1\ufe0f\u20e3<\/span><span>A <strong>Letter of Invitation<\/strong><\/span><\/li>\n <li><span class=\"bi\">2\ufe0f\u20e3<\/span><span><strong>Information to Consultants<\/strong> regarding procedure for submission of proposal<\/span><\/li>\n <li><span class=\"bi\">3\ufe0f\u20e3<\/span><span><strong>Terms of Reference (TOR)<\/strong><\/span><\/li>\n <li><span class=\"bi\">4\ufe0f\u20e3<\/span><span>Eligibility and pre-qualification criteria (if not ascertained through EOI)<\/span><\/li>\n <li><span class=\"bi\">5\ufe0f\u20e3<\/span><span>List of <strong>key positions whose CV and experience<\/strong> would be evaluated<\/span><\/li>\n <li><span class=\"bi\">6\ufe0f\u20e3<\/span><span><strong>Bid evaluation criteria and selection procedure<\/strong><\/span><\/li>\n <li><span class=\"bi\">7\ufe0f\u20e3<\/span><span>Standard formats for <strong>technical and financial proposal<\/strong><\/span><\/li>\n <li><span class=\"bi\">8\ufe0f\u20e3<\/span><span><strong>Proposed contract terms<\/strong><\/span><\/li>\n <li><span class=\"bi\">9\ufe0f\u20e3<\/span><span>Procedure for <strong>mid-term review of progress<\/strong> and review of the final draft report<\/span><\/li>\n <\/ul>\n <\/div>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch6r187\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rules 187\u2013190<\/span><span class=\"rule-title\">Receipt, Opening and Evaluation of Proposals<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\u2709\ufe0f<\/span><span><strong>R.187 \u2014 Receipt and Opening:<\/strong> Proposals to be asked in <strong>Two-bid system<\/strong> \u2014 technical and financial bids sealed separately, both placed in a bigger sealed envelope. On receipt, <strong>technical proposals opened first<\/strong> at the specified date, time and place.<\/span><\/li>\n <li><span class=\"bi\">\u26d4<\/span><span><strong>R.188 \u2014 Late Bids:<\/strong> <strong>Not to be considered<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcca<\/span><span><strong>R.189 \u2014 Technical Evaluation:<\/strong> Technical bids analysed and evaluated by a <strong>Consultancy Evaluation Committee (CEC)<\/strong> constituted by the Ministry\/Department. CEC shall <strong>record in detail the reasons for acceptance or rejection<\/strong> of technical proposals.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcb0<\/span><span><strong>R.190 \u2014 Financial Evaluation:<\/strong> Financial bids opened only for bidders declared <strong>technically qualified by the CEC<\/strong> (per Rule 189) \u2014 for further analysis, evaluation, ranking and selection of the successful bidder.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch6r191\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 191<\/span><span class=\"rule-title\">Methods of Selection \/ Evaluation of Consultancy Proposals \u2014 Three Methods<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>The basis of selection of the consultant shall follow any of the methods given in <strong>Rules 192 to 194<\/strong> as appropriate for the circumstances in each case.<\/span><\/li>\n <\/ul>\n <div class=\"box-blue\">\n <div class=\"box-blue-lbl\">\ud83d\udccc Three Methods of Consultancy Selection<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">1\ufe0f\u20e3<\/span><span><strong>Quality and Cost Based Selection (QCBS)<\/strong> \u2014 Rule 192<\/span><\/li>\n <li><span class=\"bi\">2\ufe0f\u20e3<\/span><span><strong>Least Cost System (LCS)<\/strong> \u2014 Rule 193<\/span><\/li>\n <li><span class=\"bi\">3\ufe0f\u20e3<\/span><span><strong>Single Source Selection \/ Consultancy by Nomination<\/strong> \u2014 Rule 194<\/span><\/li>\n <\/ul>\n <\/div>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch6r192\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 192<\/span><span class=\"rule-title\">Quality and Cost Based Selection (QCBS)<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83c\udfaf<\/span><span>Used where <strong>quality of consultancy is of prime concern<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcca<\/span><span><strong>Step 1:<\/strong> Quality of technical proposals scored as per criteria announced in the RFP. Only responsive proposals achieving <strong>at least the minimum specified qualifying score<\/strong> in technical quality are considered further.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcca<\/span><span><strong>Step 2:<\/strong> Financial proposals of technically qualified bidders are opened and scored. A <strong>final combined score<\/strong> is arrived at by giving predefined relative weightages to technical score and financial score.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccb<\/span><span>RFP shall specify the <strong>minimum qualifying score for technical quality<\/strong> and the <strong>relative weightages<\/strong> to be given to quality and cost (determined per case, e.g. 70:30, 60:40, 50:50). <strong>Proposal with the highest weighted combined score<\/strong> shall be selected.<\/span><\/li>\n <li><span class=\"bi\">\u26a0\ufe0f<\/span><span>The weightage of <strong>technical (non-financial) parameters shall in no case exceed 80%<\/strong>. <span class=\"tag-red\">\u2757 Technical weight \u226480%<\/span><\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch6r193\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 193<\/span><span class=\"rule-title\">Least Cost System (LCS)<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>Appropriate for <strong>assignments of a standard or routine nature<\/strong> (such as audits and engineering design of non-complex works) where well-established methodologies, practices and standards exist.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcb0<\/span><span>Unlike QCBS, there is <strong>no weightage for technical score in the final evaluation<\/strong>. The responsive technically qualified proposal with the <strong>lowest evaluated cost<\/strong> shall be selected.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch6r194\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 194<\/span><span class=\"rule-title\">Single Source Selection \/ Consultancy by Nomination \u2014 Five Circumstances<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>Selection by <strong>direct negotiation\/nomination<\/strong> (on lines of Single Tender for goods) is appropriate only under <strong>exceptional circumstances<\/strong>:<\/span><\/li>\n <\/ul>\n <div class=\"box-amber\">\n <div class=\"box-amber-lbl\">\u2b50 Five Circumstances for Single Source Selection<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">1\ufe0f\u20e3<\/span><span><strong>(i)<\/strong> Tasks that represent a <strong>natural continuation of previous work<\/strong> carried out by the firm<\/span><\/li>\n <li><span class=\"bi\">2\ufe0f\u20e3<\/span><span><strong>(ii)<\/strong> In case of <strong>emergency, natural disasters, or where timely completion is of utmost importance<\/strong><\/span><\/li>\n <li><span class=\"bi\">3\ufe0f\u20e3<\/span><span><strong>(iii)<\/strong> Execution involves <strong>proprietary techniques<\/strong> or only one consultant has the requisite expertise<\/span><\/li>\n <li><span class=\"bi\">4\ufe0f\u20e3<\/span><span><strong>(iv)<\/strong> Under <strong>special circumstances<\/strong> where adequate justification is available in the overall interest of the Ministry\/Department \u2014 full justification recorded in file + competent authority approval before resorting to single-source selection<\/span><\/li>\n <li><span class=\"bi\">5\ufe0f\u20e3<\/span><span><strong>(v)<\/strong> A procedure must be in place to ensure: <strong>fairness and equity<\/strong> \u00b7 prices are <strong>reasonable and consistent with market rates<\/strong> for similar tasks \u00b7 required consultancy services are <strong>not split<\/strong> into smaller procurements<\/span><\/li>\n <\/ul>\n <\/div>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch6r195\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 195<\/span><span class=\"rule-title\">Monitoring the Consultancy Contract<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udc41\ufe0f<\/span><span>The Ministry\/Department should be <strong>involved throughout in the conduct of consultancy<\/strong>, preferably by taking a <strong>task force approach<\/strong> and <strong>continuously monitoring<\/strong> the performance of the consultant(s) so that the output is in line with the Ministry\/Department's objectives.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch6r196\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 196<\/span><span class=\"rule-title\">Public Competition for Design of Symbols \/ Logos<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83c\udfa8<\/span><span>Design competition shall be conducted in a <strong>transparent, fair and objective manner<\/strong> with wide publicity to ensure information is accessible to all possible participants.<\/span><\/li>\n <li><span class=\"bi\">\ud83c\udf10<\/span><span>Publication on the <strong>Ministry\/Department website<\/strong> as well as on <strong>GeM-CPPP<\/strong> is required. If selection is by a <strong>jury of experts<\/strong> nominated for the purpose, the <strong>composition of the jury may also be notified<\/strong>.<\/span><\/li>\n <\/ul>\n <\/div>\n\n \n <div style=\"background:#f0f4ff;border-left:5px solid #1a3a6b;padding:10px 18px;border-radius:0 6px 6px 0;margin:44px 0 10px;font-weight:700;color:#1a3a6b;font-size:14px;letter-spacing:.04em;text-transform:uppercase\">Section VI \u2014 Outsourcing \/ Non-Consulting Services (Rules 197\u2013206)<\/div>\n\n \n <div class=\"rule-block\" id=\"ch6r197\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 197<\/span><span class=\"rule-title\">Definition \u2014 Non-Consulting Services<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>Non-Consulting Services involve <strong>physical, measurable deliverables\/outcomes<\/strong> where performance standards can be clearly identified and consistently applied \u2014 other than goods or works (except those incidental to the service).<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udd27<\/span><span><strong>Examples:<\/strong> Maintenance \u00b7 Hiring of vehicles \u00b7 Building facilities management \u00b7 Security \u00b7 Photocopier service \u00b7 Janitor \u00b7 Office errand services \u00b7 Drilling \u00b7 Aerial photography \u00b7 Satellite imagery \u00b7 Mapping<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch6r198\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 198<\/span><span class=\"rule-title\">Procurement of Non-Consulting Services \u2014 General<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccb<\/span><span>A Ministry or Department may procure certain non-consulting services in the <strong>interest of economy and efficiency<\/strong> and may prescribe detailed instructions and procedures for this purpose, without contravening the basic guidelines in Rules 198\u2013206.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch6r199\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 199<\/span><span class=\"rule-title\">Identification of Likely Contractors<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccb<\/span><span>Ministry\/Department should prepare a list of likely and potential contractors on the basis of formal or informal enquiries from other Ministries\/Departments and organisations involved in similar activities, <strong>scrutiny of Yellow Pages, trade journals, websites<\/strong>, etc.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch6r200\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 200<\/span><span class=\"rule-title\">Preparation of Tender Enquiry \u2014 Four Elements<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccb<\/span><span>Ministry\/Department should prepare a tender enquiry containing, inter alia:<\/span><\/li>\n <\/ul>\n <div class=\"box-amber\">\n <div class=\"box-amber-lbl\">\u2b50 Four Elements of Non-Consulting Tender Enquiry<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">1\ufe0f\u20e3<\/span><span>Details of the <strong>work or service to be performed<\/strong> by the contractor<\/span><\/li>\n <li><span class=\"bi\">2\ufe0f\u20e3<\/span><span>The <strong>facilities and inputs<\/strong> to be provided to the contractor by the Ministry\/Department<\/span><\/li>\n <li><span class=\"bi\">3\ufe0f\u20e3<\/span><span><strong>Eligibility and qualification criteria<\/strong> to be met by the contractor<\/span><\/li>\n <li><span class=\"bi\">4\ufe0f\u20e3<\/span><span>The <strong>statutory and contractual obligations<\/strong> to be complied with by the contractor<\/span><\/li>\n <\/ul>\n <\/div>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch6r201\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 201<\/span><span class=\"rule-title\">Invitation of Bids \u2014 Two Tiers<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccb<\/span><span><strong>Sub-rule (i) \u2014 Up to \u20b950 lakhs:<\/strong> Scrutinise the preliminary list of contractors (Rule 199), decide prima facie eligible and capable contractors, and issue <strong>Limited Tender Enquiry<\/strong> to them. Number of contractors for LTE shall be <strong>more than three<\/strong>. <span class=\"tag-red\">\u2757 >3 contractors<\/span><\/span><\/li>\n <li><span class=\"bi\">\ud83d\udce2<\/span><span><strong>Sub-rule (ii) \u2014 Above \u20b950 lakhs:<\/strong> Issue advertisement on <strong>GeM as well as GeM-CPPP<\/strong> (and own website). Advertisement must give complete web address for downloading bidding documents. <span class=\"tag-red\">\u2757 >\u20b950L \u2014 GeM + GeM-CPPP<\/span><\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch6r202\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 202<\/span><span class=\"rule-title\">Late Bids \u2014 Not to Be Considered<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\u26d4<\/span><span>Late bids (received after the specified date and time) shall <strong>not be considered<\/strong>.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch6r203\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 203<\/span><span class=\"rule-title\">Evaluation of Bids Received<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udcca<\/span><span>The Ministry\/Department should <strong>evaluate, segregate, rank<\/strong> the responsive bids and select the <strong>successful bidder<\/strong> for placement of the contract.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch6r204\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 204<\/span><span class=\"rule-title\">Procurement of Non-Consulting Services by Nomination \u2014 Exceptional Circumstances<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>Should it become necessary in an <strong>exceptional situation<\/strong> to procure a non-consulting service from a specifically chosen contractor, the <strong>Competent Authority<\/strong> in the Ministry\/Department may do so <strong>in consultation with the Financial Adviser<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccb<\/span><span>In such cases, the <strong>detailed justification, circumstances leading to such procurement by choice, and the special interest or purpose<\/strong> it shall serve, shall form an <strong>integral part of the proposal<\/strong>.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch6r205\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 205<\/span><span class=\"rule-title\">Monitoring the Non-Consulting Services Contract<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udc41\ufe0f<\/span><span>The Ministry\/Department should be <strong>involved throughout<\/strong> in the conduct of the contract and <strong>continuously monitor<\/strong> the performance of the contractor.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch6r206\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 206<\/span><span class=\"rule-title\">Residual Applicability \u2014 Rules 142\u2013176 Apply<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>Any circumstances not covered in Rules 198\u2013205 for procurement of non-consulting services shall be governed by <strong>Rules 142 to 176<\/strong> (pertaining to <strong>procurement of goods<\/strong>) and <strong>not<\/strong> the rules pertaining to procurement of consulting services.<\/span><\/li>\n <\/ul>\n <\/div>\n\n \n <div class=\"box-amber\" style=\"margin-top:36px\">\n <div class=\"box-amber-lbl\">\u2b50 Additional Key Numbers and Facts \u2014 Rules 173\u2013206<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>NIL bid<\/strong> = unresponsive, not to be considered (R.173(i))<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>Prior turnover\/experience relaxable<\/strong> for DIPP-recognised Startups (R.173(i))<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>Post-bid <strong>negotiation severely discouraged<\/strong>; if unavoidable (ad-hoc), only with <strong>lowest evaluated responsive bidder<\/strong> (R.173(xiv))<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>One effective offer in open\/limited tender = treated as <strong>single tender contract<\/strong> (R.173(xxi))<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>Purchase Committee with value >\u20b950 lakhs: <strong>No member shall directly report to another member<\/strong> of the same committee (R.173(xxii))<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>Code of Integrity \u2014 <strong>8 prohibited acts<\/strong> \u00b7 Prior transgressions disclosure for <strong>last 3 years<\/strong> (R.175)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>Consulting EOI published on GeM-CPPP when estimated cost is <strong>above \u20b950 lakhs<\/strong> (R.183)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>Short-listed consultants: <strong>minimum 3<\/strong> (R.184)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>TOR: <strong>5 elements<\/strong> (R.185) \u00b7 RFP: <strong>9 contents<\/strong> (R.186)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>CEC (Consultancy Evaluation Committee) \u2014 evaluates technical bids and must <strong>record detailed reasons for acceptance\/rejection<\/strong> (R.189)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>3 consultancy selection methods:<\/strong> QCBS \u00b7 LCS \u00b7 Single Source \/ Nomination (R.191\u2013194)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>QCBS: Technical weightage <strong>shall not exceed 80%<\/strong> (R.192)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>LCS: No technical weightage in final score; lowest cost among technically qualified = selected (R.193)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>Single Source consultancy: <strong>5 circumstances<\/strong> \u00b7 Full justification on file \u00b7 Competent authority approval (R.194)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>Non-consulting services: LTE for \u2264\u20b950L (>3 contractors) \u00b7 Open tender\/GeM-CPPP for >\u20b950L (R.201)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>Nomination for non-consulting: Competent Authority + <strong>FA consultation<\/strong> \u00b7 Justification integral part of proposal (R.204)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>Residual gaps in non-consulting rules: governed by <strong>R.142\u2013176<\/strong> (goods rules), NOT consulting rules (R.206)<\/span><\/li>\n <\/ul>\n <\/div>\n <\/div>\n <div id=\"ch7\" class=\"ch-block\">\n\n <div class=\"ch-banner\">\n <div class=\"ch-num\">Chapter 7<\/div>\n <div class=\"ch-title\">Inventory Management<\/div>\n <div class=\"ch-range\">Rules 207 to 223 \u00b7 Receipt \u00b7 Custody \u00b7 Verification \u00b7 Disposal \u00b7 Write-off<\/div>\n <\/div>\n\n \n <div class=\"idx-outer\">\n <div class=\"idx-lbl\">Rules at a Glance<\/div>\n <table class=\"idx-table\">\n <thead><tr><th style=\"width:110px\">Rule No.<\/th><th>Rule Title<\/th><th>Key Point<\/th><\/tr><\/thead>\n <tbody>\n <tr><td class=\"r-num\">Rule 207<\/td><td class=\"r-title\">Scope and Application<\/td><td class=\"r-key\">Basic rules for all Ministries\/Depts \u00b7 Detailed instructions may be prescribed in conformity with this chapter<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 208<\/td><td class=\"r-title\">Receipt from Private Suppliers<\/td><td class=\"r-key\">Count\/measure\/weigh + visual inspection at receipt \u00b7 Technical inspection where required \u00b7 Entry in stock register (IT-based preferred) \u00b7 Officer's certificate of receipt<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 209<\/td><td class=\"r-title\">Receipt\/Issue from Internal Divisions<\/td><td class=\"r-key\">Indent in prescribed form \u00b7 Examine\/count at receipt \u00b7 Written\/online acknowledgement mandatory \u00b7 Materials to contractor \u2192 cost particulars & recovery rates acknowledged \u00b7 Partial supply with note in indent copy<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 210<\/td><td class=\"r-title\">Custody of Goods<\/td><td class=\"r-key\">Safe custody arrangements \u00b7 Proper storage \u00b7 Temperature, dust-free environment etc. for valuable\/combustible articles<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 211<\/td><td class=\"r-title\">Lists and Accounts \u2014 GFR Forms<\/td><td class=\"r-key\">Item-wise lists and accounts \u00b7 Check actual vs book balances at any time \u00b7 GFR-22 (Fixed Assets) \u00b7 GFR-23 (Consumables) \u00b7 GFR-18 (Library Books) \u00b7 GFR-24 (Historical\/Artistic Assets)<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 212<\/td><td class=\"r-title\">Hiring Out of Fixed Assets<\/td><td class=\"r-key\">Proper record of assets \u00b7 Hire charges recovered regularly \u00b7 Charges based on historical cost<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 213<\/td><td class=\"r-title\">Physical Verification<\/td><td class=\"r-key\">Fixed assets: at least once a year \u00b7 Consumables: at least once a year \u00b7 In presence of custody officer \u00b7 Certificate of verification in stock register \u00b7 Discrepancies \u2192 R.33\u201338<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 214<\/td><td class=\"r-title\">Buffer Stock<\/td><td class=\"r-key\">Optimum buffer stock determined by competent authority \u00b7 Item in stock >1 year = generally surplus \u00b7 Deal as per R.217<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 215<\/td><td class=\"r-title\">Physical Verification of Library Books<\/td><td class=\"r-key\">\u226420,000 vol: yearly \u00b7 20,001\u201350,000 vol: once in 3 years \u00b7 >50,000 vol: sample verification every 3 years \u00b7 Loss of 5 per 1,000 volumes issued = reasonable \u00b7 Book >\u20b91,000 or rare books \u2192 investigated<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 216<\/td><td class=\"r-title\">Transfer of Charge<\/td><td class=\"r-key\">Goods handed over to successor correctly \u00b7 Statement signed by both relieving and relieved officer \u00b7 Each retains a copy<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 217<\/td><td class=\"r-title\">Disposal of Goods<\/td><td class=\"r-key\">Declare surplus\/obsolete\/unserviceable with recorded reasons \u00b7 Committee may be constituted \u00b7 Book value\/guiding\/reserved price worked out \u00b7 Form GFR-10 \u00b7 Negligence \u2192 fix responsibility \u00b7 Hazardous waste per MoEF guidelines<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 218<\/td><td class=\"r-title\">Modes of Disposal<\/td><td class=\"r-key\">Residual value >\u20b94 lakh \u2192 advertised tender or public auction \u00b7 <\u20b94 lakh \u2192 competent authority decides \u00b7 Hazardous\/expired items \u2192 destroy immediately \u00b7 Security items \u2192 destroy per official secrets rules<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 219<\/td><td class=\"r-title\">Disposal through Advertised Tender<\/td><td class=\"r-key\">8-step process \u00b7 Bid security = 10% of assessed\/reserved price \u00b7 Highest responsive bidder accepted \u00b7 Negotiation only with that bidder \u00b7 Full payment before release \u00b7 Default \u2192 forfeit bid security + re-sale at defaulter's risk & cost<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 220<\/td><td class=\"r-title\">Disposal through Auction<\/td><td class=\"r-key\">Direct or through approved auctioneers \u00b7 Wide publicity \u00b7 Earnest money \u226525% of bid value immediately on acceptance \u00b7 Balance before handing over \u00b7 IFW officer must be on auction team<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 221<\/td><td class=\"r-title\">Disposal at Scrap Value \/ Other Modes<\/td><td class=\"r-key\">If tender and auction both fail \u2192 scrap value with Finance division concurrence \u00b7 If unsold even at scrap \u2192 any mode including eco-friendly destruction<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 222<\/td><td class=\"r-title\">Sale Account<\/td><td class=\"r-key\">Sale account in Form GFR-11 \u00b7 Signed by officer who supervised the sale\/auction<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 223<\/td><td class=\"r-title\">Write-off of Losses<\/td><td class=\"r-key\">Formal sanction from competent authority mandatory even if no account adjustment \u00b7 Powers under DFPR \u00b7 Losses due to depreciation: 4 heads \u00b7 Losses not due to depreciation: 5 heads<\/td><\/tr>\n <\/tbody>\n <\/table>\n <\/div>\n\n \n <div style=\"background:#f0f4ff;border-left:5px solid #1a3a6b;padding:10px 18px;border-radius:0 6px 6px 0;margin:10px 0;font-weight:700;color:#1a3a6b;font-size:14px;letter-spacing:.04em;text-transform:uppercase\">Receipt, Custody and Accounts \u2014 Rules 207\u2013212<\/div>\n\n \n <div class=\"rule-block\" id=\"ch7r207\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 207<\/span>\n <span class=\"rule-title\">Scope and Application<\/span>\n <\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccb<\/span><span>This chapter contains the <strong>basic rules applicable to all Ministries or Departments<\/strong> regarding inventory management.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcdd<\/span><span>Detailed instructions and procedures relating to inventory management may be prescribed by various Ministries or Departments <strong>broadly in conformity with the basic rules<\/strong> contained in this chapter.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch7r208\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 208<\/span>\n <span class=\"rule-title\">Receipt of Goods and Materials from Private Suppliers<\/span>\n <\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udcdc<\/span><span><strong>(i)<\/strong> The officer-in-charge of stores should refer to the <strong>relevant contract terms<\/strong> and follow the prescribed procedure for receiving materials.<\/span><\/li>\n <li><span class=\"bi\">\u2696\ufe0f<\/span><span><strong>(ii)<\/strong> All materials shall be <strong>counted, measured or weighed<\/strong> and subjected to <strong>visual inspection<\/strong> at the time of receipt to ensure:\n <ul class=\"blist-sub\">\n <li><span class=\"bsi\">\u2705<\/span><span>Quantities are <strong>correct<\/strong><\/span><\/li>\n <li><span class=\"bsi\">\u2705<\/span><span>Quality is <strong>according to required specifications<\/strong><\/span><\/li>\n <li><span class=\"bsi\">\u2705<\/span><span>No <strong>damage or deficiency<\/strong> in the materials<\/span><\/li>\n <\/ul>\n <strong>Technical inspection<\/strong> where required should be carried out at this stage by Technical Inspector or Agency approved for the purpose.\n <\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcd2<\/span><span><strong>(iii)<\/strong> Details of material received shall be entered in the <strong>appropriate stock register, preferably in an IT-based system<\/strong>. The officer-in-charge of stores should <strong>certify that he has actually received the material<\/strong> and recorded it in the appropriate stock registers.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch7r209\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 209<\/span>\n <span class=\"rule-title\">Receipt \/ Issue of Goods from Internal Divisions<\/span>\n <\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccb<\/span><span><strong>(i) Receiving from internal divisions:<\/strong> The indenting officer shall <strong>project an indent in the prescribed form<\/strong>. On receipt, he shall examine, count, measure or weigh materials and provide an <strong>appropriate receipt<\/strong> to the sending division.<\/span><\/li>\n <li><span class=\"bi\">\u270d\ufe0f<\/span><span><strong>(ii) Issue from stock for departmental use:<\/strong> The officer-in-charge of stores shall ensure an <strong>indent in the prescribed form has been projected<\/strong>. A <strong>written\/online acknowledgement of receipt<\/strong> shall be obtained from the indenting officer or his authorised representative <strong>at the time of issue<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83c\udfd7\ufe0f<\/span><span><strong>(iii) Issue to contractor (cost recoverable):<\/strong> All relevant particulars \u2014 including <strong>recovery rates and total value chargeable to the contractor<\/strong> \u2014 should be <strong>got acknowledged from the contractor, duly signed and dated<\/strong>. <span class=\"tag-red\">\u2757 Exam point<\/span><\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcdd<\/span><span><strong>(iv) Partial supply:<\/strong> If unable to comply with the indent in full, the officer-in-charge should make supply to the extent available and make a <strong>suitable entry in the indentor's copy of the indent<\/strong>. If alternatives are available, a <strong>suitable indication<\/strong> may be made in the document.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch7r210\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 210<\/span>\n <span class=\"rule-title\">Custody of Goods and Materials<\/span>\n <\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udd12<\/span><span>The officer-in-charge of stores having custody of goods and materials \u2014 especially <strong>valuable and\/or combustible articles<\/strong> \u2014 shall take appropriate steps for:\n <ul class=\"blist-sub\">\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span><strong>Safe custody<\/strong><\/span><\/li>\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span><strong>Proper storage accommodation<\/strong><\/span><\/li>\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span>Arrangements for maintaining required <strong>temperature, dust-free environment<\/strong>, etc.<\/span><\/li>\n <\/ul>\n <\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch7r211\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 211<\/span>\n <span class=\"rule-title\">Lists and Accounts \u2014 GFR Forms for Different Asset Types<\/span>\n <\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udcd2<\/span><span><strong>(i)<\/strong> The officer-in-charge shall maintain <strong>suitable item-wise lists and accounts<\/strong> and prepare accurate returns in respect of goods and materials in his charge, making it possible at <strong>any point of time to check actual balances with book balances<\/strong>.<\/span><\/li>\n <\/ul>\n <div class=\"sec-h\">Sub-clause (ii) \u2014 Four Separate Accounts<\/div>\n <div class=\"box-blue\">\n <div class=\"box-blue-lbl\">\ud83d\udccb GFR Forms for Stock Accounts<\/div>\n <table style=\"width:100%;border-collapse:collapse;font-size:14px;margin-top:6px\">\n <thead>\n <tr style=\"background:#1a3a6b;color:#fff\">\n <th style=\"padding:8px 12px;text-align:left\">Category<\/th>\n <th style=\"padding:8px 12px;text-align:left\">Examples<\/th>\n <th style=\"padding:8px 12px;text-align:center\">Form<\/th>\n <\/tr>\n <\/thead>\n <tbody>\n <tr style=\"background:#f0f6ff;border-bottom:1px solid #d0dcef\">\n <td style=\"padding:8px 12px\"><strong>Fixed Assets<\/strong><\/td>\n <td style=\"padding:8px 12px\">Plant, machinery, equipment, furniture, fixtures<\/td>\n <td style=\"padding:8px 12px;text-align:center\"><span class=\"tag-green\">GFR-22<\/span><\/td>\n <\/tr>\n <tr style=\"background:#e8f0ff;border-bottom:1px solid #d0dcef\">\n <td style=\"padding:8px 12px\"><strong>Consumables<\/strong><\/td>\n <td style=\"padding:8px 12px\">Office stationery, chemicals, maintenance spare parts<\/td>\n <td style=\"padding:8px 12px;text-align:center\"><span class=\"tag-green\">GFR-23<\/span><\/td>\n <\/tr>\n <tr style=\"background:#f0f6ff;border-bottom:1px solid #d0dcef\">\n <td style=\"padding:8px 12px\"><strong>Library Books<\/strong><\/td>\n <td style=\"padding:8px 12px\">Books held in government libraries<\/td>\n <td style=\"padding:8px 12px;text-align:center\"><span class=\"tag-green\">GFR-18<\/span><\/td>\n <\/tr>\n <tr style=\"background:#e8f0ff\">\n <td style=\"padding:8px 12px\"><strong>Historical \/ Artistic Assets<\/strong><\/td>\n <td style=\"padding:8px 12px\">Assets held by museums\/govt. departments<\/td>\n <td style=\"padding:8px 12px;text-align:center\"><span class=\"tag-green\">GFR-24<\/span><\/td>\n <\/tr>\n <\/tbody>\n <\/table>\n <\/div>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch7r212\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 212<\/span>\n <span class=\"rule-title\">Hiring Out of Fixed Assets<\/span>\n <\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccb<\/span><span>When a fixed asset is hired to <strong>local bodies, contractors or others<\/strong>, proper record should be kept of the assets.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcb0<\/span><span>Hire and other charges as determined under rules prescribed by the <strong>competent authority shall be recovered regularly<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcd0<\/span><span>Calculation of charges shall be based on the <strong>historical cost<\/strong> of the asset. <span class=\"tag-amber\">\u2b50 Historical cost basis<\/span><\/span><\/li>\n <\/ul>\n <\/div>\n\n \n <div style=\"background:#e8f0ff;border-left:5px solid #1a3a6b;padding:10px 18px;border-radius:0 6px 6px 0;margin:44px 0 10px;font-weight:700;color:#1a3a6b;font-size:14px;letter-spacing:.04em;text-transform:uppercase\">Physical Verification and Buffer Stock \u2014 Rules 213\u2013216<\/div>\n\n \n <div class=\"rule-div\" style=\"margin-top:8px\"><\/div>\n <div class=\"rule-block\" id=\"ch7r213\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 213<\/span>\n <span class=\"rule-title\">Physical Verification \u2014 Fixed Assets and Consumables<\/span>\n <\/div>\n <div class=\"sec-h\">Sub-rule (1) \u2014 Fixed Assets<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83c\udfed<\/span><span>The inventory for fixed assets shall ordinarily be <strong>maintained at site<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcc5<\/span><span>Fixed assets should be verified <strong>at least once in a year<\/strong> and the outcome of verification <strong>recorded in the corresponding register<\/strong>. <span class=\"tag-red\">\u2757 Once a year<\/span><\/span><\/li>\n <li><span class=\"bi\">\ud83d\udd0d<\/span><span>Discrepancies, if any, shall be <strong>promptly investigated and brought to account<\/strong>.<\/span><\/li>\n <\/ul>\n <div class=\"sec-h\">Sub-rule (2) \u2014 Consumables<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udce6<\/span><span>A physical verification of all consumable goods and materials should be undertaken <strong>at least once in a year<\/strong> and discrepancies shall be recorded in the stock register for appropriate action by the competent authority.<\/span><\/li>\n <\/ul>\n <div class=\"sec-h\">Sub-rule (3) \u2014 Procedure for Verification<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">1\ufe0f\u20e3<\/span><span>Verification shall always be made in the <strong>presence of the officer responsible for custody<\/strong> of the inventory being verified.<\/span><\/li>\n <li><span class=\"bi\">2\ufe0f\u20e3<\/span><span>A <strong>certificate of verification along with the findings<\/strong> shall be recorded in the stock register.<\/span><\/li>\n <li><span class=\"bi\">3\ufe0f\u20e3<\/span><span>Discrepancies including <strong>shortages, damages and unserviceable goods<\/strong> identified during verification shall immediately be brought to the notice of the competent authority for action in accordance with <strong>Rules 33 to 38<\/strong> (Loss reporting and responsibility).<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch7r214\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 214<\/span>\n <span class=\"rule-title\">Buffer Stock<\/span>\n <\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udcca<\/span><span>Depending on the <strong>frequency of requirement, quantity thereof, and pattern of supply<\/strong> of a consumable material, <strong>optimum buffer stock<\/strong> should be determined by the competent authority.<\/span><\/li>\n <\/ul>\n <div class=\"box-red\">\n <span style=\"font-size:18px;flex-shrink:0;margin-top:2px\">\u26a0\ufe0f<\/span>\n <span><strong>Surplus Rule:<\/strong> As inventory carrying cost is an expenditure that does not add value to the material stocked, a material remaining in stock for <strong>over one year shall generally be considered surplus<\/strong>, unless adequate reasons to treat it otherwise exist. Items so declared surplus shall be dealt with as per <strong>Rule 217<\/strong>. <span class=\"tag-red\">\u2757 >1 year in stock = surplus<\/span><\/span>\n <\/div>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch7r215\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 215<\/span>\n <span class=\"rule-title\">Physical Verification of Library Books<\/span>\n <\/div>\n <div class=\"sec-h\">Sub-rule (i) \u2014 Verification Frequency by Library Size<\/div>\n <div class=\"box-blue\">\n <div class=\"box-blue-lbl\">\u2b50 Library Verification Schedule \u2014 Three Tiers<\/div>\n <table style=\"width:100%;border-collapse:collapse;font-size:14px;margin-top:6px\">\n <thead>\n <tr style=\"background:#1a3a6b;color:#fff\">\n <th style=\"padding:8px 12px;text-align:left\">Library Size (Volumes)<\/th>\n <th style=\"padding:8px 12px;text-align:left\">Type of Verification<\/th>\n <th style=\"padding:8px 12px;text-align:left\">Frequency<\/th>\n <\/tr>\n <\/thead>\n <tbody>\n <tr style=\"background:#f0f6ff;border-bottom:1px solid #d0dcef\">\n <td style=\"padding:8px 12px\"><strong>Up to 20,000<\/strong><\/td>\n <td style=\"padding:8px 12px\">Complete verification<\/td>\n <td style=\"padding:8px 12px\"><span class=\"tag-green\">Every year<\/span><\/td>\n <\/tr>\n <tr style=\"background:#e8f0ff;border-bottom:1px solid #d0dcef\">\n <td style=\"padding:8px 12px\"><strong>20,001 \u2013 50,000<\/strong><\/td>\n <td style=\"padding:8px 12px\">Complete verification<\/td>\n <td style=\"padding:8px 12px\"><span class=\"tag-amber\">At least once in 3 years<\/span><\/td>\n <\/tr>\n <tr style=\"background:#f0f6ff\">\n <td style=\"padding:8px 12px\"><strong>More than 50,000<\/strong><\/td>\n <td style=\"padding:8px 12px\">Sample verification<\/td>\n <td style=\"padding:8px 12px\"><span class=\"tag-amber\">Intervals \u2264 3 years<\/span><\/td>\n <\/tr>\n <\/tbody>\n <\/table>\n <\/div>\n <ul class=\"blist\" style=\"margin-top:10px\">\n <li><span class=\"bi\">\u26a0\ufe0f<\/span><span>In case sample verification reveals <strong>unusual or unreasonable shortages<\/strong>, <strong>complete verification<\/strong> shall be done.<\/span><\/li>\n <\/ul>\n <div class=\"sec-h\">Sub-rule (ii) \u2014 Acceptable Loss in Libraries<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udcca<\/span><span>Loss of <strong>five volumes per one thousand volumes<\/strong> of books issued\/consulted in a year may be taken as <strong>reasonable<\/strong> \u2014 provided such losses are not attributable to dishonesty or negligence. <span class=\"tag-amber\">\u2b50 5 per 1,000 = reasonable<\/span><\/span><\/li>\n <li><span class=\"bi\">\ud83d\udd0d<\/span><span>However, <strong>loss of a book of value exceeding \u20b91,000<\/strong> and <strong>rare books irrespective of value<\/strong> shall <strong>invariably be investigated<\/strong> and appropriate action taken. <span class=\"tag-red\">\u2757 \u20b91,000 threshold<\/span><\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch7r216\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 216<\/span>\n <span class=\"rule-title\">Transfer of Charge of Goods and Materials<\/span>\n <\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udd04<\/span><span>In case of <strong>transfer of Officer-in-charge of the goods, materials, etc.<\/strong>, the transferred officer shall see that the goods or materials are <strong>made over correctly to his successor<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccb<\/span><span>A <strong>statement giving all relevant details<\/strong> of the goods\/materials in question shall be <strong>prepared and signed with date by both the relieving officer and the relieved officer<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcc4<\/span><span><strong>Each of these officers will retain a copy<\/strong> of the signed statement.<\/span><\/li>\n <\/ul>\n <\/div>\n\n \n <div style=\"background:#f0faf5;border-left:5px solid #2aab6e;padding:10px 18px;border-radius:0 6px 6px 0;margin:44px 0 10px;font-weight:700;color:#1a6b5a;font-size:14px;letter-spacing:.04em;text-transform:uppercase\">Disposal of Goods and Write-off \u2014 Rules 217\u2013223<\/div>\n\n \n <div class=\"rule-div\" style=\"margin-top:8px\"><\/div>\n <div class=\"rule-block\" id=\"ch7r217\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 217<\/span>\n <span class=\"rule-title\">Disposal of Goods \u2014 Declaration and Process<\/span>\n <\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccb<\/span><span><strong>(i)<\/strong> An item may be declared <strong>surplus or obsolete or unserviceable<\/strong> if it is of no use to the Ministry or Department. <strong>Reasons for declaring<\/strong> the item surplus\/obsolete\/unserviceable should be <strong>recorded by the authority competent to purchase<\/strong> the item.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udc65<\/span><span><strong>(ii)<\/strong> The competent authority may constitute a <strong>committee at appropriate level<\/strong> to declare items as surplus\/obsolete\/unserviceable.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcb0<\/span><span><strong>(iii)<\/strong> The <strong>book value, guiding price and reserved price<\/strong> should be worked out before disposal. Where book value is not possible to work out, the <strong>original purchase price<\/strong> may be utilised. A report of stores for disposal shall be prepared in <strong>Form GFR-10<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\u2696\ufe0f<\/span><span><strong>(iv)<\/strong> If an item becomes unserviceable due to <strong>negligence, fraud or mischief<\/strong> on the part of a government servant, <strong>responsibility for the same should be fixed<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\u2620\ufe0f<\/span><span><strong>(v)<\/strong> <strong>Hazardous waste\/Scrap Batteries\/E-waste:<\/strong> Scrap lots comprising hazardous waste, batteries, etc. shall be sold keeping in view the guidelines of the <strong>Ministry of Environment & Forest<\/strong>. Prospective bidders must hold <strong>valid registration as recycler\/preprocessor agency<\/strong> on the date of e-Auction and delivery.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch7r218\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 218<\/span>\n <span class=\"rule-title\">Modes of Disposal \u2014 Based on Residual Value<\/span>\n <\/div>\n <div class=\"box-blue\">\n <div class=\"box-blue-lbl\">\u2b50 Disposal Mode Decision Chart<\/div>\n <table style=\"width:100%;border-collapse:collapse;font-size:14px;margin-top:6px\">\n <thead>\n <tr style=\"background:#1a3a6b;color:#fff\">\n <th style=\"padding:8px 12px;text-align:left\">Residual Value<\/th>\n <th style=\"padding:8px 12px;text-align:left\">Mode of Disposal<\/th>\n <\/tr>\n <\/thead>\n <tbody>\n <tr style=\"background:#f0f6ff;border-bottom:1px solid #d0dcef\">\n <td style=\"padding:8px 12px\"><strong>Above \u20b94 lakh<\/strong><\/td>\n <td style=\"padding:8px 12px\">Advertised tender <strong>OR<\/strong> Public auction (mandatory)<\/td>\n <\/tr>\n <tr style=\"background:#e8f0ff;border-bottom:1px solid #d0dcef\">\n <td style=\"padding:8px 12px\"><strong>Below \u20b94 lakh<\/strong><\/td>\n <td style=\"padding:8px 12px\">Mode determined by competent authority (to avoid accumulation & deterioration)<\/td>\n <\/tr>\n <tr style=\"background:#fff0f0;border-bottom:1px solid #d0dcef\">\n <td style=\"padding:8px 12px\"><strong>Hazardous \/ expired items<\/strong><br><small>(expired medicines, food grain, ammunition)<\/small><\/td>\n <td style=\"padding:8px 12px\"><span class=\"tag-red\">\u26a0\ufe0f Dispose \/ Destroy immediately<\/span> \u2014 to avoid health hazard, environmental pollution and misuse<\/td>\n <\/tr>\n <tr style=\"background:#fff8e8\">\n <td style=\"padding:8px 12px\"><strong>Security-sensitive items<\/strong><br><small>(currency, stamps, receipt books, negotiable instruments)<\/small><\/td>\n <td style=\"padding:8px 12px\">Dispose \/ Destroy per <strong>official secrets rules<\/strong> and financial prudence<\/td>\n <\/tr>\n <\/tbody>\n <\/table>\n <\/div>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch7r219\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 219<\/span>\n <span class=\"rule-title\">Disposal through Advertised Tender<\/span>\n <\/div>\n <div class=\"sec-h\">Eight Steps of the Process<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">1\ufe0f\u20e3<\/span><span>Preparation of bidding documents<\/span><\/li>\n <li><span class=\"bi\">2\ufe0f\u20e3<\/span><span>Invitation of tender for the surplus goods to be sold<\/span><\/li>\n <li><span class=\"bi\">3\ufe0f\u20e3<\/span><span>Opening of bids<\/span><\/li>\n <li><span class=\"bi\">4\ufe0f\u20e3<\/span><span>Analysis and evaluation of bids received<\/span><\/li>\n <li><span class=\"bi\">5\ufe0f\u20e3<\/span><span>Selection of highest responsive bidder<\/span><\/li>\n <li><span class=\"bi\">6\ufe0f\u20e3<\/span><span>Collection of sale value from the selected bidder<\/span><\/li>\n <li><span class=\"bi\">7\ufe0f\u20e3<\/span><span>Issue of sale release order to the selected bidder<\/span><\/li>\n <li><span class=\"bi\">8\ufe0f\u20e3<\/span><span>Release of sold surplus goods to the selected bidder \u00b7 Return of bid security to unsuccessful bidders<\/span><\/li>\n <\/ul>\n <div class=\"sec-h\">Key Conditions<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udce3<\/span><span><strong>Transparency, competition, fairness, elimination of discretion<\/strong> are the basic principles. Wide publicity of the sale plan is mandatory.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udd0d<\/span><span>Bidding documents must indicate the <strong>location and present condition<\/strong> of goods so bidders can inspect before bidding.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcb0<\/span><span><strong>Bid security = ordinarily 10%<\/strong> of the assessed or reserved price. The exact amount must be stated in the bidding document. <span class=\"tag-red\">\u2757 10% bid security<\/span><\/span><\/li>\n <li><span class=\"bi\">\ud83c\udfc6<\/span><span><strong>Highest acceptable responsive bidder<\/strong> shall normally be accepted. Negotiation is permissible <strong>only with that bidder<\/strong>. If negotiation fails, the reasonable price may be counter-offered to the next highest responsive bidder(s).<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udce6<\/span><span>If the total quantity cannot be taken by the highest acceptable bidder, the <strong>remaining quantity may be offered to the next higher bidder(s) at the price offered by the highest acceptable bidder<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcb3<\/span><span><strong>Full payment<\/strong> (residual amount after adjusting bid security) shall be obtained from the successful bidder <strong>before releasing the goods<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\u26a0\ufe0f<\/span><span><strong>Default by selected bidder:<\/strong> <strong>Bid security shall be forfeited<\/strong> and the goods re-sold at the <strong>risk and cost of the defaulter<\/strong> after obtaining legal advice.<\/span><\/li>\n <li><span class=\"bi\">\u23f0<\/span><span><strong>Late bids<\/strong> i.e. bids received after the specified date and time of receipt <strong>shall not be considered<\/strong>.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch7r220\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 220<\/span>\n <span class=\"rule-title\">Disposal through Auction<\/span>\n <\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udd28<\/span><span>A Ministry or Department may undertake auction of goods either <strong>directly or through approved auctioneers<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udce3<\/span><span>The basic principles are the same as for advertised tender \u2014 <strong>transparency, competition, fairness and elimination of discretion<\/strong>. The auction plan must be <strong>widely publicised<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83c\udfa4<\/span><span>At the start of the auction, the <strong>condition and location of goods, terms and conditions of sale shall be announced again<\/strong> for the benefit of assembled bidders.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcb0<\/span><span>On acceptance of a bid, <strong>earnest money of not less than 25% of the bid value<\/strong> shall be taken <strong>immediately on the spot<\/strong> from the successful bidder \u2014 in cash or by <strong>Deposit-at-Call-Receipt (DACR)<\/strong> in favour of the Ministry\/Department. <span class=\"tag-red\">\u2757 25% earnest money at auction<\/span><\/span><\/li>\n <li><span class=\"bi\">\ud83d\udce6<\/span><span>Goods shall be <strong>handed over to the successful bidder only after receiving the balance payment<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udc65<\/span><span>The composition of the auction team shall be decided by the competent authority. The team must include an <strong>officer of the Internal Finance Wing<\/strong> of the department. <span class=\"tag-amber\">\u2b50 IFW officer mandatory<\/span><\/span><\/li>\n <\/ul>\n <div class=\"box-amber\">\n <div class=\"box-amber-lbl\">\u2b50 Advertised Tender vs Auction \u2014 Key Numbers<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>Advertised Tender:<\/strong> Bid security = <strong>10%<\/strong> of assessed\/reserved price<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>Auction:<\/strong> Earnest money = <strong>\u2265 25%<\/strong> of bid value, collected on the spot<\/span><\/li>\n <\/ul>\n <\/div>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch7r221\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 221<\/span>\n <span class=\"rule-title\">Disposal at Scrap Value or Other Modes<\/span>\n <\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\uddd1\ufe0f<\/span><span>If a Ministry or Department is unable to sell any surplus\/obsolete\/unserviceable item despite attempts through <strong>both advertised tender and auction<\/strong>, it may dispose of the same at its <strong>scrap value with the approval of the competent authority in consultation with Finance division<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\u267b\ufe0f<\/span><span>If unable to sell even at scrap value, it may adopt <strong>any other mode of disposal including destruction of the item in an eco-friendly manner<\/strong>.<\/span><\/li>\n <\/ul>\n <div class=\"box-blue\">\n <div class=\"box-blue-lbl\">\ud83d\udccc Disposal Escalation Sequence<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">1\ufe0f\u20e3<\/span><span><strong>Advertised Tender \/ Auction<\/strong> (if residual value > \u20b94 lakh) \u2192 R.218\u2013220<\/span><\/li>\n <li><span class=\"bi\">2\ufe0f\u20e3<\/span><span>If both fail \u2192 <strong>Scrap value<\/strong> with competent authority approval + Finance concurrence \u2192 R.221<\/span><\/li>\n <li><span class=\"bi\">3\ufe0f\u20e3<\/span><span>If still unsold \u2192 <strong>Any other mode including eco-friendly destruction<\/strong> \u2192 R.221<\/span><\/li>\n <\/ul>\n <\/div>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch7r222\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 222<\/span>\n <span class=\"rule-title\">Sale Account<\/span>\n <\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccb<\/span><span>A <strong>sale account should be prepared for goods disposed of in Form GFR-11<\/strong>, duly signed by the officer who supervised the sale or auction.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch7r223\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 223<\/span>\n <span class=\"rule-title\">Write-off of Losses \u2014 Powers and Classification<\/span>\n <\/div>\n <div class=\"sec-h\">Sub-rule (1) \u2014 Formal Sanction is Always Required<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccb<\/span><span>All profits and losses due to revaluation, stock-taking or other causes shall be <strong>duly recorded and adjusted<\/strong> where necessary.<\/span><\/li>\n <li><span class=\"bi\">\u26a0\ufe0f<\/span><span><strong>Formal sanction of the competent authority<\/strong> shall be obtained in respect of losses, <strong>even though no formal correction or adjustment in Government accounts is involved<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcdc<\/span><span>Powers to write off losses are available under the <strong>Delegation of Financial Powers Rules (DFPR)<\/strong>.<\/span><\/li>\n <\/ul>\n\n <div class=\"sec-h\">Sub-rule (2) \u2014 Losses Due to Depreciation: 4 Heads<\/div>\n <div class=\"box-blue\">\n <div class=\"box-blue-lbl\">\ud83d\udccb Losses Due to Depreciation<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">1\ufe0f\u20e3<\/span><span><strong>Normal fluctuation of market prices<\/strong><\/span><\/li>\n <li><span class=\"bi\">2\ufe0f\u20e3<\/span><span><strong>Normal wear and tear<\/strong><\/span><\/li>\n <li><span class=\"bi\">3\ufe0f\u20e3<\/span><span><strong>Lack of foresight in regulating purchases<\/strong><\/span><\/li>\n <li><span class=\"bi\">4\ufe0f\u20e3<\/span><span><strong>Negligence after purchase<\/strong><\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"sec-h\">Sub-rule (3) \u2014 Losses NOT Due to Depreciation: 5 Heads<\/div>\n <div class=\"box-green\">\n <div class=\"box-green-lbl\">\ud83d\udccb Losses Not Due to Depreciation<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">1\ufe0f\u20e3<\/span><span><strong>Losses due to theft or fraud<\/strong><\/span><\/li>\n <li><span class=\"bi\">2\ufe0f\u20e3<\/span><span><strong>Losses due to neglect<\/strong><\/span><\/li>\n <li><span class=\"bi\">3\ufe0f\u20e3<\/span><span><strong>Anticipated losses on account of obsolescence<\/strong> of stores or purchases in excess of requirements<\/span><\/li>\n <li><span class=\"bi\">4\ufe0f\u20e3<\/span><span><strong>Losses due to damage<\/strong><\/span><\/li>\n <li><span class=\"bi\">5\ufe0f\u20e3<\/span><span><strong>Losses due to extraordinary situations<\/strong> under <strong>'Force Majeure'<\/strong> conditions \u2014 fire, flood, enemy action, etc.<\/span><\/li>\n <\/ul>\n <\/div>\n <\/div>\n\n <div class=\"box-amber\" style=\"margin-top:36px\">\n <div class=\"box-amber-lbl\">\u2b50 Numbers to Remember \u2014 Chapter 7<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>GFR-22<\/strong> \u2014 Fixed Assets \u00b7 <strong>GFR-23<\/strong> \u2014 Consumables \u00b7 <strong>GFR-18<\/strong> \u2014 Library Books \u00b7 <strong>GFR-24<\/strong> \u2014 Historical\/Artistic Assets (R.211)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>At least once a year<\/strong> \u2014 Physical verification of fixed assets and consumables (R.213)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>> 1 year in stock<\/strong> \u2014 Generally treated as surplus (R.214)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>Library books<\/strong> \u2014 \u226420,000: yearly \u00b7 20,001\u201350,000: once in 3 years \u00b7 >50,000: sample every 3 years (R.215)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>5 per 1,000 volumes issued<\/strong> \u2014 Reasonable loss in libraries \u00b7 Book >\u20b91,000 or rare book \u2192 investigate (R.215)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>\u20b94 lakh threshold<\/strong> \u2014 Above \u2192 advertised tender or auction mandatory \u00b7 Below \u2192 competent authority decides (R.218)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>Bid security = 10%<\/strong> of assessed\/reserved price (advertised tender) (R.219)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>Earnest money \u2265 25%<\/strong> of bid value collected on the spot (auction) (R.220)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>GFR-10<\/strong> \u2014 Report of stores for disposal \u00b7 <strong>GFR-11<\/strong> \u2014 Sale account (R.217, R.222)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>IFW officer mandatory<\/strong> in auction team (R.220)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>4 heads<\/strong> of depreciation losses \u00b7 <strong>5 heads<\/strong> of non-depreciation losses (R.223)<\/span><\/li>\n <\/ul>\n <\/div>\n <\/div>\n\n <div id=\"ch8\" class=\"ch-block\">\n\n <div class=\"ch-banner\">\n <div class=\"ch-num\">Chapter 8<\/div>\n <div class=\"ch-title\">Contract Management<\/div>\n <div class=\"ch-range\">Rules 224 to 227A \u00b7 Authority \u00b7 General Principles \u00b7 Management \u00b7 Disputes & Arbitration<\/div>\n <\/div>\n\n \n <div class=\"idx-outer\">\n <div class=\"idx-lbl\">Rules at a Glance<\/div>\n <table class=\"idx-table\">\n <thead><tr><th style=\"width:110px\">Rule No.<\/th><th>Rule Title<\/th><th>Key Point<\/th><\/tr><\/thead>\n <tbody>\n <tr><td class=\"r-num\">Rule 224<\/td><td class=\"r-title\">Authority to Make Contracts<\/td><td class=\"r-key\">Art.299(1) \u00b7 Empowered by or under orders of the President \u00b7 Executed \"for and on behalf of the President of India\" \u00b7 Powers under DFPR Rule 11<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 225<\/td><td class=\"r-title\">General Principles for Contracts (19 sub-clauses)<\/td><td class=\"r-key\">Precise terms \u00b7 Standard forms \u00b7 Legal & financial advice \u00b7 Purchase orders \u2264\u20b92.5L \u00b7 Contract document for works\/purchases \u2265\u20b910L \u00b7 Execution within 21 days of LoA \u00b7 Cost plus to be avoided \u00b7 Price variation only for delivery >18 months \u00b7 LD clause mandatory \u00b7 Warranty clause mandatory \u00b7 No claim after 3 years \u00b7 Copies of contracts \u2265\u20b925L to Audit\/Accounts<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 226<\/td><td class=\"r-title\">Management of Contracts<\/td><td class=\"r-key\">Strict monitoring \u00b7 Prompt notices on breach \u00b7 Monthly review of BGs expiring in 3 months \u00b7 Extensions of BGs sought immediately<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 227<\/td><td class=\"r-title\">Legal Advice on Disputes<\/td><td class=\"r-key\">Legal advice before conciliation\/arbitration\/suit \u00b7 Draft plaint vetted by legal & financial advice \u00b7 Documents scrutinised to safeguard Govt. interest<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 227A<\/td><td class=\"r-title\">Arbitration Awards<\/td><td class=\"r-key\">If award challenged \u2192 Ministry pays 75% of award against Bank Guarantee \u00b7 May be into Escrow Account \u00b7 Used first for lenders' dues, then project completion, then other projects<\/td><\/tr>\n <\/tbody>\n <\/table>\n <\/div>\n\n \n <div style=\"background:#f0f4ff;border-left:5px solid #1a3a6b;padding:10px 18px;border-radius:0 6px 6px 0;margin:10px 0;font-weight:700;color:#1a3a6b;font-size:14px;letter-spacing:.04em;text-transform:uppercase\">Authority to Contract \u2014 Rule 224<\/div>\n\n \n <div class=\"rule-block\" id=\"ch8r224\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 224<\/span>\n <span class=\"rule-title\">Authority to Make Contracts \u2014 Article 299(1)<\/span>\n <\/div>\n <div class=\"sec-h\">Sub-rule (1) \u2014 Empowered Authority<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\u2696\ufe0f<\/span><span>All contracts shall be made by an authority <strong>empowered to do so by or under the orders of the President<\/strong> in terms of <strong>Article 299(1)<\/strong> of the Constitution of India.<\/span><\/li>\n <\/ul>\n <div class=\"sec-h\">Sub-rule (2) \u2014 Execution on Behalf of the President<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83c\udfdb\ufe0f<\/span><span>All contracts and assurances of property made in the exercise of the <strong>executive power of the Union<\/strong> shall be executed <strong>on behalf of the President<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcdd<\/span><span>The words <strong>\"for and on behalf of the President of India\"<\/strong> should follow the designation appended below the signature of the authorised officer. <span class=\"tag-red\">\u2757 Exact wording required<\/span><\/span><\/li>\n <\/ul>\n <div class=\"box-blue\">\n <div class=\"box-blue-lbl\">\ud83d\udccc Constitutional & Legal Basis<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\u2696\ufe0f<\/span><span><strong>Article 299(1):<\/strong> All contracts made in exercise of executive power of the Union shall be expressed to be made by the President and executed by persons authorised by the President.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcdc<\/span><span>Classes of contracts and assurances of property are specified in <strong>Notifications issued by the Ministry of Law<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccb<\/span><span>Powers, conditions and general procedure are laid down in <strong>Rule 11 of the DFPR<\/strong>.<\/span><\/li>\n <\/ul>\n <\/div>\n <\/div>\n\n \n <div style=\"background:#e8f0ff;border-left:5px solid #1a3a6b;padding:10px 18px;border-radius:0 6px 6px 0;margin:44px 0 10px;font-weight:700;color:#1a3a6b;font-size:14px;letter-spacing:.04em;text-transform:uppercase\">General Principles for Contracts \u2014 Rule 225<\/div>\n\n \n <div class=\"rule-div\" style=\"margin-top:8px\"><\/div>\n <div class=\"rule-block\" id=\"ch8r225\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 225<\/span>\n <span class=\"rule-title\">General Principles for Contracts \u2014 19 Sub-clauses<\/span>\n <\/div>\n\n <div class=\"sec-h\">(i) Precise and Definite Terms<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccb<\/span><span>The terms of contract must be <strong>precise, definite and without any ambiguities<\/strong>. The terms should <strong>not involve an uncertain or indefinite liability<\/strong>, except in the case of a cost plus contract or where there is a price variation clause.<\/span><\/li>\n <\/ul>\n\n <div class=\"sec-h\">(ii) Standard Forms of Contract<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udcc4<\/span><span><strong>Standard forms of contracts<\/strong> should be adopted wherever possible, with such modifications as are considered necessary for individual contracts. Modifications should be carried out <strong>only after obtaining financial and legal advice<\/strong>.<\/span><\/li>\n <\/ul>\n\n <div class=\"sec-h\">(iii) Legal & Financial Advice for Non-Standard Contracts<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\u2696\ufe0f<\/span><span>Where standard forms are not used, <strong>legal and financial advice should be taken in drafting the clauses<\/strong>.<\/span><\/li>\n <\/ul>\n\n <div class=\"sec-h\">(iv) Type of Contract Document Based on Value<\/div>\n <div class=\"box-blue\">\n <div class=\"box-blue-lbl\">\u2b50 Contract Document Requirements by Value<\/div>\n <table style=\"width:100%;border-collapse:collapse;font-size:14px;margin-top:6px\">\n <thead>\n <tr style=\"background:#1a3a6b;color:#fff\">\n <th style=\"padding:8px 12px;text-align:left\">Value \/ Type<\/th>\n <th style=\"padding:8px 12px;text-align:left\">Document Required<\/th>\n <\/tr>\n <\/thead>\n <tbody>\n <tr style=\"background:#f0f6ff;border-bottom:1px solid #d0dcef\">\n <td style=\"padding:8px 12px\">Purchases <strong>\u2264 \u20b92.5 lakh<\/strong><\/td>\n <td style=\"padding:8px 12px\">Simple <strong>Purchase Order<\/strong> with basic terms and conditions<\/td>\n <\/tr>\n <tr style=\"background:#e8f0ff;border-bottom:1px solid #d0dcef\">\n <td style=\"padding:8px 12px\">Works contracts or Purchases <strong>\u20b91 lakh \u2013 \u20b910 lakhs<\/strong> (with GCC + SCC in tender docs)<\/td>\n <td style=\"padding:8px 12px\"><strong>Letter of Acceptance<\/strong> creates binding contract<\/td>\n <\/tr>\n <tr style=\"background:#f0f6ff;border-bottom:1px solid #d0dcef\">\n <td style=\"padding:8px 12px\">Works <strong>\u2265 \u20b910 lakhs<\/strong> or Purchases <strong>> \u20b910 lakhs<\/strong><\/td>\n <td style=\"padding:8px 12px\">Full <strong>Contract Document<\/strong> with all necessary clauses (self-contained) \u00b7 Or simple one-page contract attaching GCC, SCC, specifications, offer, LoA<\/td>\n <\/tr>\n <tr style=\"background:#e8f0ff\">\n <td style=\"padding:8px 12px\">Turnkey works \/ Maintenance agreements \/ Service provision<\/td>\n <td style=\"padding:8px 12px\">Contract document <strong>invariably executed<\/strong><\/td>\n <\/tr>\n <\/tbody>\n <\/table>\n <\/div>\n\n <div class=\"sec-h\">(v) No Work without Agreement<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\u26d4<\/span><span>No work of any kind should be commenced <strong>without proper execution of an agreement<\/strong> as given in the foregoing provisions.<\/span><\/li>\n <\/ul>\n\n <div class=\"sec-h\">(vi) Execution Within 21 Days of Letter of Acceptance<\/div>\n <div class=\"box-red\">\n <span style=\"font-size:18px;flex-shrink:0;margin-top:2px\">\u26a0\ufe0f<\/span>\n <span>Contract document shall be executed <strong>within 21 days of the issue of letter of acceptance<\/strong>. Non-fulfilment of this condition by the Contractor or Supplier constitutes sufficient ground for <strong>annulment of the award and forfeiture of Earnest Money Deposit<\/strong>. <span class=\"tag-red\">\u2757 21 days<\/span><\/span>\n <\/div>\n\n <div class=\"sec-h\">(vii) Cost Plus Contracts \u2014 To Be Avoided<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\u26d4<\/span><span><strong>Cost plus contracts should ordinarily be avoided.<\/strong> Where unavoidable, <strong>full justification shall be recorded<\/strong> before entering into the contract.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udd04<\/span><span>Where such contracts continue over a long duration, efforts should be made to <strong>convert future contracts to a firm price basis<\/strong> after allowing a reasonable period for the supplier\/contractor to stabilise their production\/execution methods.<\/span><\/li>\n <\/ul>\n <div class=\"box-green\">\n <div class=\"box-green-lbl\">\ud83d\udccc Definition \u2014 Cost Plus Contract<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udca1<\/span><span>A contract in which the price payable is determined on the basis of <strong>actual cost of production + profit<\/strong> \u2014 either at a fixed rate per unit or at a fixed percentage on actual cost of production.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"sec-h\">(viii) Price Variation Clause (PVC) \u2014 11 Sub-conditions<\/div>\n <div class=\"box-amber\">\n <div class=\"box-amber-lbl\">\u2b50 Price Variation Clause \u2014 Key Rules<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udcc5<\/span><span><strong>(a)<\/strong> PVC can be provided <strong>only in long-term contracts where the delivery period extends beyond 18 months<\/strong>. Short-term contracts must have firm and fixed prices. <span class=\"tag-red\">\u2757 >18 months only<\/span><\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcca<\/span><span><strong>(a)<\/strong> The price agreed upon should specify the <strong>base level (month and year)<\/strong> to which the price is linked, to enable calculation of variations.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcd0<\/span><span><strong>(b)<\/strong> A formula for calculation of price variations between the Base Level and Scheduled Delivery Date should be included. Variations are calculated using <strong>indices published by Governments or Chambers of Commerce<\/strong> (Appendix-11).<\/span><\/li>\n <li><span class=\"bi\">\u2702\ufe0f<\/span><span><strong>(c)<\/strong> PVC should specify <strong>cut-off dates for material and labour<\/strong>, as these taper off well before Scheduled Delivery Dates.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udd12<\/span><span><strong>(d)<\/strong> PVC should provide for a <strong>ceiling on price variations<\/strong> \u2014 either a percentage per annum, an overall ceiling, or both. Buyer must ensure benefit of any price <strong>reduction<\/strong> is also passed on.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccf<\/span><span><strong>(e)<\/strong> PVC should stipulate a <strong>minimum percentage<\/strong> of variation above which price adjustments are admissible (e.g., if increase is below 2%, no price adjustment in favour of supplier).<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcb3<\/span><span><strong>(f)<\/strong> Where advance or stage payments are made, <strong>no price variations will be admissible on such portions after the dates of such payment<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\u2696\ufe0f<\/span><span><strong>(g)<\/strong> Where deliveries are accepted beyond Scheduled Delivery Date subject to liquidated damages, LD (if a percentage of price) will be applicable on the <strong>price as varied by the PVC<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\u26d4<\/span><span><strong>(h)<\/strong> <strong>No price variation admissible beyond the original Scheduled Delivery Date for defaults on the part of the supplier<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\u2705<\/span><span><strong>(i)<\/strong> Price variation may be allowed beyond the original Scheduled Delivery Date <strong>only by formal amendment to the contract<\/strong> in cases of <strong>Force Majeure<\/strong> or <strong>defaults by Government<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83c\udf10<\/span><span><strong>(j)<\/strong> For imported goods (subject to customs duty and foreign exchange fluctuations), the <strong>percentage of duties and taxes<\/strong> included in the price and the <strong>selling rate of foreign exchange<\/strong> taken into account should be specifically stated. Mode of calculation and documents to be produced in support of claims should also be stipulated.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcb0<\/span><span><strong>(k)<\/strong> The clause should contain the <strong>mode and terms of payment of the price variation admissible<\/strong>.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"sec-h\">(ix) Taxes<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udcb0<\/span><span>Contracts should include provision for <strong>payment of all applicable taxes by the contractor or supplier<\/strong>.<\/span><\/li>\n <\/ul>\n\n <div class=\"sec-h\">(x) Lump Sum Contracts \u2014 To Be Avoided<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\u26d4<\/span><span><strong>Lump sum contracts should not be entered into except in cases of absolute necessity.<\/strong> Where unavoidable, <strong>full justification shall be recorded<\/strong>. The contracting authority should ensure adequate safeguards for Government interest.<\/span><\/li>\n <\/ul>\n\n <div class=\"sec-h\">(xi) Departmental Issue of Materials<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\u26d4<\/span><span><strong>Departmental issue of materials should be avoided as far as possible.<\/strong> Where decided, a <strong>schedule of quantities with issue rates<\/strong> of such material should form an essential part of the contract.<\/span><\/li>\n <\/ul>\n\n <div class=\"sec-h\">(xii) Government Property Entrusted to Contractor<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udd12<\/span><span><strong>(a)<\/strong> Where Government property is entrusted to a contractor (for use on payment of hire charges or for further work on such property), the contract must include specific provision for:\n <ul class=\"blist-sub\">\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span><strong>Safeguarding Government property<\/strong> (including insurance cover)<\/span><\/li>\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span><strong>Recovery of hire charges regularly<\/strong><\/span><\/li>\n <\/ul>\n <\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccb<\/span><span><strong>(b)<\/strong> Provision shall be made for <strong>periodical physical verification<\/strong> of the number and physical condition of the items at the contractor's premises. Results shall be recorded and penal action taken where necessary.<\/span><\/li>\n <\/ul>\n\n <div class=\"sec-h\">(xiii) Copies of Contracts to Audit \/ Accounts Officer<\/div>\n <div class=\"box-red\">\n <span style=\"font-size:18px;flex-shrink:0;margin-top:2px\">\u26a0\ufe0f<\/span>\n <span>Copies of all contracts and agreements for purchases of the value of <strong>\u20b925 lakhs and above<\/strong> entered into by civil departments of the Government should be sent to the <strong>Audit Officer and\/or Accounts Officer<\/strong> as the case may be. <span class=\"tag-red\">\u2757 \u20b925 lakh threshold<\/span><\/span>\n <\/div>\n\n <div class=\"sec-h\">(xiv) No Material Variation of Contract Terms<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\u26d4<\/span><span><strong>(a)<\/strong> The terms of a contract \u2014 including the scope and specification \u2014 once entered into, should <strong>not be materially varied<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccb<\/span><span><strong>(b)<\/strong> Where material variation becomes unavoidable, the <strong>financial and other effects shall be examined, recorded<\/strong> and <strong>specific approval of the authority competent to approve the revised commitments<\/strong> shall be obtained before varying the conditions.<\/span><\/li>\n <li><span class=\"bi\">\u270d\ufe0f<\/span><span><strong>(c)<\/strong> All such changes should be in the form of a <strong>formal amendment to the contract duly signed by all parties<\/strong>.<\/span><\/li>\n <\/ul>\n\n <div class=\"sec-h\">(xv) Extensions of Delivery \/ Completion Dates<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udcc5<\/span><span>Normally <strong>no extensions<\/strong> of scheduled delivery or completion dates shall be granted except where <strong>Force Majeure<\/strong> events have occurred or the contract itself contains such a provision. Extensions shall be allowed through <strong>formal amendments<\/strong> to the contract duly signed by the parties.<\/span><\/li>\n <\/ul>\n\n <div class=\"sec-h\">(xvi) Liquidated Damages (LD) Clause \u2014 Mandatory<\/div>\n <div class=\"box-red\">\n <span style=\"font-size:18px;flex-shrink:0;margin-top:2px\">\u26a0\ufe0f<\/span>\n <span><strong>All contracts shall contain a provision for recovery of liquidated damages for defaults on the part of the contractor.<\/strong> Exemption from such provision can be made only in exceptional circumstances, to be <strong>justified by the procuring entity in writing<\/strong>.<\/span>\n <\/div>\n\n <div class=\"sec-h\">(xvii) Warranty Clause \u2014 Mandatory<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udd27<\/span><span>A <strong>warranty clause should be incorporated in every contract<\/strong>, requiring the supplier to \u2014 without charge \u2014 <strong>repair or rectify defective goods or replace such goods<\/strong> with similar goods free from defect. Any goods repaired or replaced shall be <strong>delivered at the buyer's premises without costs to the buyer<\/strong>.<\/span><\/li>\n <\/ul>\n\n <div class=\"sec-h\">(xviii) Right to Reject Non-Conforming Goods<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\u26d4<\/span><span>All contracts for supply of goods should <strong>reserve the right of Government to reject goods which do not conform to the specifications<\/strong>.<\/span><\/li>\n <\/ul>\n\n <div class=\"sec-h\">(xix) Time Limit for Claims \u2014 3 Years<\/div>\n <div class=\"box-amber\">\n <div class=\"box-amber-lbl\">\u2b50 Limitation Period for Contractor's Claims<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\u23f0<\/span><span>No claim for payment from the contractor shall be entertained after the lapse of <strong>three years of arising of the claim<\/strong>. <span class=\"tag-red\">\u2757 3-year limit<\/span><\/span><\/li>\n <\/ul>\n <\/div>\n <\/div>\n\n \n <div style=\"background:#f0faf5;border-left:5px solid #2aab6e;padding:10px 18px;border-radius:0 6px 6px 0;margin:44px 0 10px;font-weight:700;color:#1a6b5a;font-size:14px;letter-spacing:.04em;text-transform:uppercase\">Contract Management, Disputes and Arbitration \u2014 Rules 226\u2013227A<\/div>\n\n \n <div class=\"rule-div\" style=\"margin-top:8px\"><\/div>\n <div class=\"rule-block\" id=\"ch8r226\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 226<\/span>\n <span class=\"rule-title\">Management of Contracts<\/span>\n <\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udc40<\/span><span><strong>(i)<\/strong> Implementation of the contract should be <strong>strictly monitored<\/strong> and <strong>notices issued promptly<\/strong> whenever a breach of provisions occurs.<\/span><\/li>\n <li><span class=\"bi\">\ud83c\udfe6<\/span><span><strong>(ii)<\/strong> Proper procedure for <strong>safe custody and monitoring of Bank Guarantees (BGs)<\/strong> or other instruments should be laid down. Monitoring should include:\n <ul class=\"blist-sub\">\n <li><span class=\"bsi\">\ud83d\udcc5<\/span><span>A <strong>monthly review of all BGs or other instruments expiring after three months<\/strong>, along with a review of the progress of supply or work. <span class=\"tag-red\">\u2757 Monthly review of BGs expiring in 3 months<\/span><\/span><\/li>\n <li><span class=\"bsi\">\u26a1<\/span><span>Extensions of BGs or other instruments, where warranted, should be <strong>sought immediately<\/strong>.<\/span><\/li>\n <\/ul>\n <\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch8r227\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 227<\/span>\n <span class=\"rule-title\">Legal Advice in Disputes<\/span>\n <\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\u2696\ufe0f<\/span><span>Wherever <strong>disputes arise during implementation of a contract<\/strong>, <strong>legal advice should be sought before<\/strong>:\n <ul class=\"blist-sub\">\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span>Initiating action to refer the dispute to <strong>conciliation and\/or arbitration<\/strong> as provided in the contract, or<\/span><\/li>\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span>Filing a <strong>suit<\/strong> where the contract does not include an arbitration clause.<\/span><\/li>\n <\/ul>\n <\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcc4<\/span><span>The <strong>draft of the plaint for arbitration<\/strong> should be got <strong>vetted by obtaining legal and financial advice<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udd0d<\/span><span>Documents to be filed in resolution of disputes should be <strong>carefully scrutinised before filing to safeguard Government interest<\/strong>.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch8r227a\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 227A<\/span>\n <span class=\"rule-title\">Arbitration Awards \u2014 Payment Pending Challenge<\/span>\n <\/div>\n <div class=\"sec-h\">Sub-rule (i) \u2014 75% Payment Against Bank Guarantee<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\u2696\ufe0f<\/span><span>In cases where the Ministry\/Department has <strong>challenged an arbitral award<\/strong> and the amount has therefore not been paid, <strong>75% of the arbitral award<\/strong> (which may include interest up to date of the award) shall be <strong>paid by the Ministry\/Department to the contractor\/concessionaire against a Bank Guarantee<\/strong>. <span class=\"tag-red\">\u2757 75% against BG<\/span><\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>The BG shall <strong>only be for the 75% of the arbitral award<\/strong> \u2014 not for the interest which may become payable to the Ministry\/Department should a subsequent court order require refund of the said amount.<\/span><\/li>\n <\/ul>\n <div class=\"sec-h\">Sub-rule (ii) \u2014 Escrow Account Option<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83c\udfe6<\/span><span>The payment may be made into a <strong>designated Escrow Account<\/strong> with the stipulation that the proceeds will be used in the following priority order:\n <ul class=\"blist-sub\">\n <li><span class=\"bsi\">1\ufe0f\u20e3<\/span><span><strong>Payment of lenders' dues<\/strong><\/span><\/li>\n <li><span class=\"bsi\">2\ufe0f\u20e3<\/span><span><strong>Completion of the project<\/strong><\/span><\/li>\n <li><span class=\"bsi\">3\ufe0f\u20e3<\/span><span><strong>Completion of other projects<\/strong> of the same Ministry\/Department as mutually agreed\/decided<\/span><\/li>\n <\/ul>\n <\/span><\/li>\n <li><span class=\"bi\">\u2705<\/span><span>Any <strong>balance remaining after settlement of lenders' dues and project completion<\/strong> may be allowed to be used by the contractor\/concessionaire with the <strong>prior approval of the lead banker and the Ministry\/Department<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccb<\/span><span>If otherwise eligible and subject to contractual provisions, <strong>retention money and other amounts withheld<\/strong> may also be <strong>released against Bank Guarantee<\/strong>.<\/span><\/li>\n <\/ul>\n <div class=\"box-blue\">\n <div class=\"box-blue-lbl\">\ud83d\udccc Why 75% and Not 100%?<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udca1<\/span><span>Rule 227A strikes a balance between the <strong>contractor's right to receive payment awarded by the arbitrator<\/strong> and the <strong>Government's right to challenge the award in court<\/strong>. The 25% withheld protects Government in case the award is partially or fully set aside. The Bank Guarantee protects the Government's right to recover the 75% if the award is overturned.<\/span><\/li>\n <\/ul>\n <\/div>\n <\/div>\n\n <div class=\"box-amber\" style=\"margin-top:36px\">\n <div class=\"box-amber-lbl\">\u2b50 Numbers to Remember \u2014 Chapter 8<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>Art. 299(1)<\/strong> \u2014 Constitutional authority for contracts \u00b7 \"for and on behalf of the President of India\" (R.224)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>\u2264 \u20b92.5 lakh<\/strong> \u2014 Purchase order sufficient (R.225(iv)(a))<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>\u20b91L\u2013\u20b910L<\/strong> \u2014 Letter of Acceptance = binding contract (with GCC\/SCC) (R.225(iv)(b))<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>\u2265 \u20b910 lakh<\/strong> \u2014 Full contract document required (R.225(iv)(c))<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>21 days<\/strong> \u2014 Contract must be executed after Letter of Acceptance \u00b7 Default \u2192 LoA annulled + EMD forfeited (R.225(vi))<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>> 18 months delivery<\/strong> \u2014 Price Variation Clause permissible only for long-term contracts (R.225(viii)(a))<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>\u20b925 lakh and above<\/strong> \u2014 Copies of contracts sent to Audit\/Accounts Officer (R.225(xiii))<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>3 years<\/strong> \u2014 Time limit for contractor's claims after arising of claim (R.225(xix))<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>Monthly review<\/strong> of BGs expiring in <strong>3 months<\/strong> (R.226)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>75% of arbitral award<\/strong> to be paid against Bank Guarantee when award is challenged (R.227A)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>Escrow Account priority:<\/strong> Lenders' dues \u2192 Project completion \u2192 Other projects (R.227A)<\/span><\/li>\n <\/ul>\n <\/div>\n <\/div>\n\n<div id=\"ch9\" class=\"ch-block\">\n\n <div class=\"ch-banner\">\n <div class=\"ch-num\">Chapter 9<\/div>\n <div class=\"ch-title\">Grants-in-Aid and Loans<\/div>\n <div class=\"ch-range\">Rules 228 to 245 \u00b7 Autonomous Bodies \u00b7 Procedure \u00b7 Utilisation Certificates \u00b7 Audit \u00b7 Performance Reports<\/div>\n <\/div>\n\n \n <div class=\"idx-outer\">\n <div class=\"idx-lbl\">Rules at a Glance \u2014 Chapter 9<\/div>\n <table class=\"idx-table\">\n <thead><tr><th style=\"width:130px\">Rule No.<\/th><th>Subject<\/th><th>Key Point<\/th><\/tr><\/thead>\n <tbody>\n <tr><td class=\"r-num\" colspan=\"3\" style=\"background:#1a3a6b;color:#fff;font-weight:700;letter-spacing:.04em;padding:6px 12px\">I. GRANTS-IN-AID (Rules 228\u2013245)<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 228<\/td><td class=\"r-title\">Who Can Receive Grants-in-Aid \u2014 Six Categories<\/td><td class=\"r-key\">Autonomous Organisations (statute\/society\/trust) \u00b7 Voluntary Orgs\/NGOs \u00b7 Educational institutions (scholarships) \u00b7 Urban\/Rural local self-govt bodies \u00b7 Co-operative societies \u00b7 Govt servants' social\/sports clubs<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 229<\/td><td class=\"r-title\">Principles for Setting Up Autonomous Organisations \u2014 Twelve Guidelines<\/td><td class=\"r-key\">No new autonomous body without Cabinet approval \u00b7 No body-created bodies without appraisal \u00b7 Regional offices with Admin Ministry + MoF concurrence \u00b7 Corpus Fund from budget: MoF prior concurrence \u00b7 User charges reviewed at least once a year \u00b7 MoU mandatory if budgetary support >\u20b95 crore per annum \u00b7 Peer review every 3 or 5 years \u00b7 Findings to be considered before further releases<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 230(1)<\/td><td class=\"r-title\">Procedure for Award of Grants-in-Aid<\/td><td class=\"r-key\">Application with Articles of Association, audited accounts, sources of income\/expenditure \u00b7 Certification: no duplicate grant from other Ministry\/Dept or State Govt<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 230(2)<\/td><td class=\"r-title\">Anti-Duplication List<\/td><td class=\"r-key\">Each Ministry\/Dept to maintain list of grantee institutions with amount and purpose \u00b7 Details to be on website<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 230(3)<\/td><td class=\"r-title\">Viable Schemes Required<\/td><td class=\"r-key\">Grants only on basis of viable, specific schemes with quantified\/qualitative targets \u00b7 CFA (reimbursement basis): no UC required<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 230(4)<\/td><td class=\"r-title\">Recurring vs Non-Recurring Grants<\/td><td class=\"r-key\">Recurring = periodic to same org for same purpose \u00b7 Non-recurring = one-time \u00b7 Every sanction order to specify recurring\/non-recurring, object, conditions, and time limit for spending<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 230(5)<\/td><td class=\"r-title\">Capital and Revenue Accounts<\/td><td class=\"r-key\">Central Autonomous Orgs must account for capital and revenue separately \u00b7 MoF standard formats mandatory<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 230(6)<\/td><td class=\"r-title\">Internal Resources Generation<\/td><td class=\"r-key\">Grants authority should consider setting targets for internal resource generation, especially for recurring grants<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 230(7)<\/td><td class=\"r-title\">Unspent Balances \u2014 Just-in-Time Release<\/td><td class=\"r-key\">Unspent balance from previous grant taken into account before sanctioning subsequent grant \u00b7 PFMS portal used to check bank balance before each release \u00b7 Cash balance preferably not more than 3 months' requirement \u00b7 Just-in-time release principle<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 230(8)<\/td><td class=\"r-title\">Interest Earnings on Grants<\/td><td class=\"r-key\">All interest or other earnings on grants\/advances (other than reimbursement) must be mandatorily remitted to Consolidated Fund of India immediately after finalisation of accounts \u00b7 Not adjustable against future releases<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 230(9)<\/td><td class=\"r-title\">Disposal of Assets Acquired from Grants<\/td><td class=\"r-key\">Assets acquired wholly or substantially from Govt grants shall not be disposed of without prior approval of the grant-sanctioning authority (except assets declared obsolete\/unserviceable\/condemned per GFR)<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 230(10)<\/td><td class=\"r-title\">Instalment Release Conditions<\/td><td class=\"r-key\">Last instalment conditional on reasonable evidence of proper utilisation of earlier instalments \u00b7 CFA: full evidence of objectives + audited statement \u2192 released in one instalment \u00b7 No UC for CFA cases<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 230(11)<\/td><td class=\"r-title\">Budget Estimates Timeline<\/td><td class=\"r-key\">Institutions to submit requirement by end of September of preceding year \u00b7 Ministry to inform outcome by April of succeeding year<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 230(12)<\/td><td class=\"r-title\">Service Conditions of Grantee Employees<\/td><td class=\"r-key\">If >50% recurring expenditure from grants: service terms of employees not higher than Central Govt employees (relaxation with MoF consultation) \u00b7 Should use market pension\/insurance\/loan schemes<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 230(13)<\/td><td class=\"r-title\">Buildings Constructed with Grants<\/td><td class=\"r-key\">Sanctioning authority decides whether ownership vests with Govt or grantee \u00b7 If Govt-owned: grantee occupies as lessee \u00b7 Maintenance responsibility always with grantee<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 230(14)\u2013(16)<\/td><td class=\"r-title\">Miscellaneous Grant Conditions<\/td><td class=\"r-key\">(14) Special conditions incorporated in Articles of Association\/bye-laws before release \u00b7 (15) Grants may cover expenditure incurred not earlier than 2 years prior to date of sanction \u00b7 (16) Refund of unutilised amount with interest to be clearly stated in sanction letter and bond<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 230(17)<\/td><td class=\"r-title\">SC\/ST\/OBC Reservation Clause<\/td><td class=\"r-key\">Mandatory reservation clause for bodies with: >20 regular employees + \u226550% recurring expenditure from Central grants + registered society\/co-operative receiving \u2265\u20b920 lakhs general purpose annual grant from CFI<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 231(1)<\/td><td class=\"r-title\">Grants to Voluntary Organisations<\/td><td class=\"r-key\">Grant for admin expenditure: must not exceed 25% of approved pay and allowances of personnel \u00b7 Private institutions: not ordinarily sanctioned; exceptional cases with Internal Finance Wing concurrence<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 231(2)<\/td><td class=\"r-title\">Execution of Bond<\/td><td class=\"r-key\">Executive Committee members to execute bonds jointly and severally \u00b7 Breach \u2192 refund entire\/part grant with 10% interest per annum \u00b7 Stamp duty borne by Government<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 231(3)<\/td><td class=\"r-title\">Bond Not Required<\/td><td class=\"r-key\">Quasi-Government Institutions \u00b7 Central Autonomous Organisations \u00b7 Institutions whose budget is approved by Govt<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 232<\/td><td class=\"r-title\">Centrally Sponsored Schemes \u2014 Eight Principles<\/td><td class=\"r-key\">Time-bound quantifiable targets \u00b7 Designed in consultation with States \u00b7 Convergence of overlapping schemes \u00b7 Restrict number of schemes \u00b7 PFMS for fund release and monitoring \u00b7 Focus on outcomes not expenditure \u00b7 Concurrent monitoring built into scheme \u00b7 Post-completion review by States with copy to Ministry<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 233<\/td><td class=\"r-title\">Funding of Sponsored Projects (R&D)<\/td><td class=\"r-key\">Projects to Universities\/IITs\/ICAR\/CSIR\/ICMR etc. \u00b7 Funds NOT treated as grants-in-aid by implementing agency \u00b7 Ownership of physical and intellectual assets vests in sponsor \u00b7 On completion: assets returned\/sold\/retained as decided by Ministry \u00b7 Proceeds of sale credited to sponsoring Dept<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 234<\/td><td class=\"r-title\">Register of Grants<\/td><td class=\"r-key\">Register in Form GFR-21 \u00b7 Columns (i)\u2013(v) filled at time of sanction, attested by Gazetted Officer \u00b7 Serial number noted on body of sanction \u00b7 No bill signed unless noted in Register \u00b7 Guards against double payment<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 235<\/td><td class=\"r-title\">Accounts of Grantee Institutions<\/td><td class=\"r-key\">All grantee institutions (irrespective of amount) to maintain subsidiary accounts and furnish audited statements to Accounts Officer after utilisation or whenever called for<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 236(1)<\/td><td class=\"r-title\">Audit \u2014 Open to CAG and Internal Audit<\/td><td class=\"r-key\">Accounts open to sanctioning authority inspection + CAG audit (under CAG DPC Act 1971) + internal audit by Principal Accounts Office \u00b7 Provision to this effect must be in every grant sanction order<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 236(2)<\/td><td class=\"r-title\">CAG Audit Thresholds<\/td><td class=\"r-key\">Section 14: grants\/loans in a FY \u2265\u20b925 lakhs AND \u226575% of total expenditure \u2192 CAG audit mandatory \u00b7 OR grants\/loans \u2265\u20b91 crore \u2192 CAG audit \u00b7 Once CAG audits, continues for 2 further years even if conditions not fulfilled<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 237<\/td><td class=\"r-title\">Time Schedule for Annual Accounts<\/td><td class=\"r-key\">Accounts available for audit: 30th June \u00b7 Final SAR with audit certificate: 31st October \u00b7 Annual Report + Audited Accounts to Nodal Ministry for Parliament: 31st December<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 238(1)<\/td><td class=\"r-title\">Utilisation Certificate \u2014 Non-Recurring Grants<\/td><td class=\"r-key\">Form GFR 12-A \u00b7 Submitted within 12 months of closure of financial year \u00b7 Output-based (not input-based) performance assessment \u00b7 Non-submission \u2192 Ministry may blacklist from future grants\/subsidies<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 238(2)<\/td><td class=\"r-title\">Utilisation Certificate \u2014 Recurring Grants<\/td><td class=\"r-key\">Next FY release only after provisional UC for preceding FY \u00b7 Release exceeding 75% of total sanctioned for next FY only after UC + annual audited statement submitted to satisfaction of Ministry<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 238(3)\u2013(4)<\/td><td class=\"r-title\">UC Exceptions and Special Disclosure<\/td><td class=\"r-key\">(3) UC not required for grants\/CFA on reimbursement basis (audited accounts submitted) \u00b7 (4) Central Autonomous Orgs UC to separately disclose: funds given to stores suppliers, construction agencies, staff loans \u2014 treated as unutilised grants carried forward<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 238(5)\u2013(6)<\/td><td class=\"r-title\">Parliament Reporting Thresholds<\/td><td class=\"r-key\">Recurring: \u20b910L\u2013\u20b950L \u2192 statement in Annual Report \u00b7 \u2265\u20b950L \u2192 Annual Report and Accounts laid on table of Parliament within 9 months \u00b7 Non-recurring: \u20b910L\u2013\u20b95Cr \u2192 statement in Annual Report \u00b7 \u2265\u20b95Cr \u2192 laid on table within 9 months<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 239\u2013241<\/td><td class=\"r-title\">State Govt and DBT Utilisation Certificates<\/td><td class=\"r-key\">R.239: UC in Form GFR 12-C countersigned by Administrative Secretary\/Finance Secretary \u00b7 R.240: State Govt furnishes UC when funds routed through local bodies\/private institutions \u00b7 R.241: DBT schemes \u2014 bank\/NPCI deposit intimation treated as UC<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 242<\/td><td class=\"r-title\">Performance\/Achievement Reports<\/td><td class=\"r-key\">Submitted within 6 months of close of FY \u00b7 Not required for: non-recurring grants (anniversaries, tours, maintenance) \u00b7 For recurring grants \u2264\u20b925 lakhs: sanctioning authority may dispense \u00b7 Autonomous Orgs \u2265\u20b92 crore: laid on Parliament table \u00b7 \u2265\u20b950L recurring \/ \u2265\u20b95Cr non-recurring: full review in Annual Report<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 243<\/td><td class=\"r-title\">Discretionary Grants<\/td><td class=\"r-key\">Regulated by general\/special orders of competent authority \u00b7 Must be non-recurring \u00b7 Must not involve future commitment<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 244<\/td><td class=\"r-title\">Other Grants<\/td><td class=\"r-key\">Grants to States and others not covered by foregoing rules \u2192 under special orders of Government<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 245<\/td><td class=\"r-title\">Grants for Govt Employees' Welfare (Staff Clubs)<\/td><td class=\"r-key\">\u20b950 per head per annum + matching grant up to \u20b925 per head per annum \u00b7 Based on strength as on 31st March of previous FY \u00b7 One-time grant for setting up Recreation Club: \u20b950,000 maximum \u00b7 Accounts audited by Internal Auditor \u2014 submitted by 30th April \u00b7 Staff contingencies\/work-charged excluded from calculation<\/td><\/tr>\n <\/tbody>\n <\/table>\n <\/div>\n\n \n <div style=\"background:#f0f4ff;border-left:5px solid #1a3a6b;padding:10px 18px;border-radius:0 6px 6px 0;margin:10px 0;font-weight:700;color:#1a3a6b;font-size:14px;letter-spacing:.04em;text-transform:uppercase\">Section I \u2014 Eligibility and Autonomous Organisation Principles (Rules 228\u2013229)<\/div>\n\n \n <div class=\"rule-block\" id=\"ch9r228\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 228<\/span><span class=\"rule-title\">Who Can Receive Grants-in-Aid \u2014 Six Categories<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccb<\/span><span>As a general principle, Grants-in-aid can be given to a <strong>person or a public body or an institution having a distinct legal entity<\/strong>. Grants-in-aid including scholarships may be sanctioned by an authority competent to do so under the DFPR to:<\/span><\/li>\n <\/ul>\n <div class=\"box-blue\">\n <div class=\"box-blue-lbl\">\ud83d\udccc Six Categories of Eligible Recipients<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">(a)<\/span><span><strong>Autonomous Organisations<\/strong> set up under a specific statute or as a society registered under the <strong>Societies Registration Act, 1860<\/strong> or <strong>Indian Trusts Act, 1882<\/strong> or other statutes<\/span><\/li>\n <li><span class=\"bi\">(b)<\/span><span><strong>Voluntary Organisations \/ NGOs<\/strong> carrying out activities which promote the welfare schemes and programmes of the Government \u2014 selected on the basis of well-defined criteria regarding financial and other resources, credibility and type of activities undertaken<\/span><\/li>\n <li><span class=\"bi\">(c)<\/span><span><strong>Educational and other institutions<\/strong> by way of <strong>scholarships or stipends<\/strong> to students<\/span><\/li>\n <li><span class=\"bi\">(d)<\/span><span><strong>Urban and Rural local self-government institutions<\/strong><\/span><\/li>\n <li><span class=\"bi\">(e)<\/span><span><strong>Co-operative societies<\/strong><\/span><\/li>\n <li><span class=\"bi\">(f)<\/span><span>Societies or clubs set up by <strong>Government servants<\/strong> to promote amongst themselves <strong>social, cultural and sports activities<\/strong> as recreational avenues<\/span><\/li>\n <\/ul>\n <\/div>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch9r229\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 229<\/span><span class=\"rule-title\">Principles for Setting Up Autonomous Organisations \u2014 Twelve Guidelines<\/span><\/div>\n <div class=\"box-amber\">\n <div class=\"box-amber-lbl\">\u2b50 Twelve Guidelines \u2014 Autonomous Organisations<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">(i)<\/span><span>No new autonomous institution shall be created by Ministries\/Departments without the <strong>approval of the Cabinet<\/strong>. <span class=\"tag-red\">\u2757 Cabinet approval mandatory<\/span><\/span><\/li>\n <li><span class=\"bi\">(ii)<\/span><span>No new autonomous institution shall be created by an <strong>Autonomous Body itself<\/strong> without going through the appraisal\/approval process. However, <strong>Regional Centres\/Offices\/Sub-Stations<\/strong> of any autonomous body may be created with <strong>prior approval of the Administrative Ministry in consultation with MoF<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">(iii)<\/span><span><strong>Stringent criteria<\/strong> to be followed. Ministry shall examine: (a) whether activities are necessary at all; (b) whether they need to be done through a new autonomous body or can be performed by an existing Govt agency or organisation.<\/span><\/li>\n <li><span class=\"bi\">(iv)<\/span><span>All autonomous organisations should be encouraged to <strong>maximise internal resources<\/strong> and eventually <strong>attain self-sufficiency<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">(v)<\/span><span><strong>Corpus Fund<\/strong> from budgetary allocation: requires <strong>prior concurrence of MoF<\/strong>. From internal accruals: requires <strong>approval of the Administrative Ministry<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">(vi)<\/span><span><strong>User charges<\/strong> to be reviewed by the Governing Body <strong>at least once a year<\/strong> and information communicated to the Administrative Ministry \u2014 preferably before formulation of Union Annual Budget. <span class=\"tag-red\">\u2757 At least once a year<\/span><\/span><\/li>\n <li><span class=\"bi\">(vii)<\/span><span>All Autonomous Bodies shall maintain <strong>database relating to grants, income, expenditure, investment, assets and employee strength<\/strong> in format prescribed by DoE, MoF.<\/span><\/li>\n <li><span class=\"bi\">(viii)<\/span><span><strong>Financial advice:<\/strong> Every autonomous organisation shall designate an officer at appropriate level to render financial advice, whose concurrence shall be obtained for sanction and incurring of expenditure. The <strong>CEO of the Autonomous Body is responsible for overall financial management<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">(ix)<\/span><span><strong>Peer review<\/strong> every <strong>3 or 5 years<\/strong> depending on size and nature of activity \u2014 responsibility of the concerned administrative division. Review shall focus on: (a) whether objectives are being achieved \u00b7 (b) whether activities should be continued \u00b7 (c) whether they need to be done by an autonomous body \u00b7 (d) scope for merger\/winding up \u00b7 (e) whether staff complement is at a minimum \u00b7 (f) whether user charges are levied appropriately \u00b7 (g) scope for maximising internal resource generation. <span class=\"tag-red\">\u2757 3 or 5 years<\/span><\/span><\/li>\n <li><span class=\"bi\">(x)<\/span><span>Outstanding internationally acclaimed organisations may be granted <strong>greater autonomy and flexibility<\/strong> in recruitment and financial rules.<\/span><\/li>\n <li><span class=\"bi\">(xi)<\/span><span>Autonomous bodies with budgetary support of <strong>more than \u20b95 crore per annum<\/strong> shall be required to enter into a <strong>Memorandum of Understanding (MoU)<\/strong> with the Administrative Ministry\/Department spelling out performance parameters, output targets in measurable units and commensurate input requirements. <span class=\"tag-red\">\u2757 >\u20b95 crore \u2192 MoU mandatory<\/span><\/span><\/li>\n <li><span class=\"bi\">(xii)<\/span><span>Findings of peer review shall be examined by the Secretary of the Administrative Department. <strong>Further releases (after 3 or 5 years)<\/strong> shall be made <strong>conditional on conduct and decisions on the findings<\/strong> of such peer review.<\/span><\/li>\n <\/ul>\n <\/div>\n <\/div>\n\n \n <div style=\"background:#e8f0ff;border-left:5px solid #1a3a6b;padding:10px 18px;border-radius:0 6px 6px 0;margin:44px 0 10px;font-weight:700;color:#1a3a6b;font-size:14px;letter-spacing:.04em;text-transform:uppercase\">Section II \u2014 Principles and Procedure for Award of Grants-in-Aid (Rule 230)<\/div>\n\n \n <div class=\"rule-block\" id=\"ch9r230\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 230(1)<\/span><span class=\"rule-title\">Procedure for Award \u2014 Application and Non-Duplication Certificate<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccb<\/span><span>Any institution seeking Grants-in-aid must submit an application including: <strong>Articles of Association, bye-laws, audited statement of accounts, sources and pattern of income and expenditure<\/strong>, enabling the sanctioning authority to assess suitability.<\/span><\/li>\n <li><span class=\"bi\">\u2705<\/span><span>The institution must <strong>certify that it has not obtained or applied for grants for the same purpose<\/strong> from any other Ministry\/Department of GoI or State Government. <span class=\"tag-red\">\u2757 Non-duplication certificate mandatory<\/span><\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch9r230b\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 230(2)<\/span><span class=\"rule-title\">Anti-Duplication List Maintained by Each Ministry<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccb<\/span><span>Each Ministry\/Department shall <strong>maintain a list of institutions along with details of amount and purpose of grants<\/strong> given to them, to obviate duplication. These details shall also be made <strong>available on the website<\/strong> of the Ministry\/Department.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch9r230c\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 230(3)<\/span><span class=\"rule-title\">Grants Only for Viable, Specific Schemes<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>Award of grants shall be considered only on the basis of <strong>viable and specific schemes drawn up in sufficient detail<\/strong>, disclosing specific quantified and qualitative targets against the outlay.<\/span><\/li>\n <li><span class=\"bi\">\u2705<\/span><span><strong>Central Financial Assistance (CFA)<\/strong> \u2014 where grants are given as reimbursement of expenditure already incurred on an approved project \u2014 shall be treated as CFA and <strong>no Utilisation Certificate shall be required<\/strong> in such reimbursement cases.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch9r230d\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 230(4)<\/span><span class=\"rule-title\">Recurring vs Non-Recurring Grants<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udd04<\/span><span><strong>Recurring Grant:<\/strong> Released <strong>periodically<\/strong> to the same organisation for the <strong>same purpose<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">1\ufe0f\u20e3<\/span><span><strong>Non-Recurring Grant:<\/strong> <strong>One-time<\/strong> release for a special purpose (may be released in instalments).<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccb<\/span><span>Every order sanctioning a grant shall:\n <ul class=\"blist-sub\">\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span>Indicate whether it is <strong>recurring or non-recurring<\/strong><\/span><\/li>\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span>Specify clearly the <strong>object<\/strong> for which it is given<\/span><\/li>\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span>Specify all <strong>general and special conditions<\/strong>, if any<\/span><\/li>\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span>For non-recurring grants: also specify the <strong>time limit<\/strong> within which the grant or each instalment is to be spent<\/span><\/li>\n <\/ul>\n <\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch9r230e\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 230(5)\u2013(6)<\/span><span class=\"rule-title\">Accounts Format and Internal Resources Generation<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udcd2<\/span><span><strong>R.230(5):<\/strong> Central Autonomous Organisations shall <strong>account for capital and revenue expenditure separately<\/strong>. All grant-sanctioning authorities shall enforce the condition of maintaining and presenting annual accounts in the <strong>standard formats prescribed by MoF<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcb0<\/span><span><strong>R.230(6):<\/strong> Grant-sanctioning authorities shall not only consider internally generated resources while regulating grants, but should consider <strong>laying down targets for internal resource generation<\/strong> by grantee institutions \u2014 particularly where grants are given on a recurring basis every year.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch9r230f\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 230(7)<\/span><span class=\"rule-title\">Unspent Balances \u2014 Just-in-Time Release Principles<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udcbb<\/span><span>When recurring grants are sanctioned for the same purpose, the <strong>unspent balance of the previous grant<\/strong> shall be taken into account in sanctioning the subsequent grant. The <strong>PFMS portal<\/strong> shall be used to know the bank balance of recipients <strong>before making each release<\/strong>.<\/span><\/li>\n <\/ul>\n <div class=\"box-blue\">\n <div class=\"box-blue-lbl\">\ud83d\udccc Just-in-Time Release Principles<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">1\ufe0f\u20e3<\/span><span>Cash balance at any time should preferably <strong>not be more than 3 months of requirements<\/strong>. <span class=\"tag-red\">\u2757 \u22643 months cash balance<\/span><\/span><\/li>\n <li><span class=\"bi\">2\ufe0f\u20e3<\/span><span>Funds released as per <strong>actual requirements<\/strong>. Sanction may precede the release of funds, though its validity may be limited to that financial year.<\/span><\/li>\n <\/ul>\n <\/div>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch9r230g\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 230(8)<\/span><span class=\"rule-title\">Interest Earnings on Grants \u2014 Mandatory Remittance to Consolidated Fund<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udcb0<\/span><span>All interests or other earnings against grants-in-aid or advances (other than reimbursement) released to any grantee institution shall be <strong>mandatorily remitted to the Consolidated Fund of India<\/strong> immediately after finalisation of accounts. <span class=\"tag-red\">\u2757 Mandatory remittance to CFI<\/span><\/span><\/li>\n <li><span class=\"bi\">\u26d4<\/span><span>Such advances <strong>shall not be allowed to be adjusted against future releases<\/strong>.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch9r230h\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 230(9)<\/span><span class=\"rule-title\">Disposal of Assets Acquired from Grants<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83c\udfd7\ufe0f<\/span><span>Assets acquired <strong>wholly or substantially<\/strong> out of Government Grants (in Non-Govt or Quasi-Govt institutions) <strong>shall not be disposed of<\/strong> without obtaining the <strong>prior approval of the grant-sanctioning authority<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\u2705<\/span><span>Exception: Assets declared as <strong>obsolete, unserviceable or condemned<\/strong> in accordance with GFR procedure.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch9r230i\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 230(10)<\/span><span class=\"rule-title\">Instalment Release Conditions<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccb<\/span><span>The sanctioning authority may prescribe conditions regarding quantum and periodicity for release of grants in instalments in consultation with the Financial Adviser.<\/span><\/li>\n <li><span class=\"bi\">\u26a0\ufe0f<\/span><span>The <strong>release of the last instalment<\/strong> of the Annual Grant must be <strong>conditional upon the grantee providing reasonable evidence of proper utilisation<\/strong> of earlier instalments.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>CFA (Central Financial Assistance) cases:<\/strong> Grant released in <strong>one instalment<\/strong> upon providing <strong>complete evidence of achieving specified objectives and audited statement of expenditure<\/strong>. No UC required in CFA cases.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch9r230j\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 230(11)<\/span><span class=\"rule-title\">Budget Estimates Timeline<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udcc5<\/span><span>Institutions desiring grants shall submit their requirements with supporting details by the <strong>end of September of the year preceding the year<\/strong> for which the grant is sought.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcc5<\/span><span>The Ministry\/Department shall finalise examination with utmost expedition and inform the institution of the result of their requests by <strong>April of the succeeding year<\/strong>.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch9r230k\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 230(12)\u2013(17)<\/span><span class=\"rule-title\">Employee Conditions, Buildings, Bond, SC\/ST Clause and Other Conditions<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udc65<\/span><span><strong>R.230(12):<\/strong> Where grantee receives <strong>>50% recurring expenditure<\/strong> from grants: employee service terms shall <strong>not be higher than Central Govt employees<\/strong> (relaxation with MoF consultation). Should use market pension\/insurance\/loan schemes.<\/span><\/li>\n <li><span class=\"bi\">\ud83c\udfe2<\/span><span><strong>R.230(13):<\/strong> Sanctioning authority decides whether ownership of buildings constructed with grants vests with <strong>Govt or grantee<\/strong>. If Govt-owned, grantee occupies as <strong>lessee<\/strong>. <strong>Maintenance is always the grantee's responsibility<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccb<\/span><span><strong>R.230(14):<\/strong> Special terms to be incorporated in <strong>Articles of Association or bye-laws before release<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcc5<\/span><span><strong>R.230(15):<\/strong> Grants may cover expenditure incurred <strong>not earlier than 2 years prior to the date of issue of sanction<\/strong>. <span class=\"tag-red\">\u2757 2-year look-back<\/span><\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcb0<\/span><span><strong>R.230(16):<\/strong> Refund of unutilised amount <strong>with interest thereon<\/strong> must be clearly stated in the sanction letter and in the bond.<\/span><\/li>\n <li><span class=\"bi\">\u2b50<\/span><span><strong>R.230(17) \u2014 SC\/ST\/OBC Reservation Clause:<\/strong> Mandatory where: (a) recipient employs <strong>>20 persons on regular basis<\/strong> AND \u226550% recurring expenditure from Central grants; <strong>AND<\/strong> (b) registered society or co-operative receiving <strong>general purpose annual grant of \u20b920 lakhs and above from CFI<\/strong>. <span class=\"tag-red\">\u2757 >20 employees + \u2265\u20b920L grant \u2192 SC\/ST\/OBC clause mandatory<\/span><\/span><\/li>\n <\/ul>\n <\/div>\n\n \n <div style=\"background:#f0faf5;border-left:5px solid #2aab6e;padding:10px 18px;border-radius:0 6px 6px 0;margin:44px 0 10px;font-weight:700;color:#1a6b5a;font-size:14px;letter-spacing:.04em;text-transform:uppercase\">Section III \u2014 Bonds, Voluntary Orgs, CSS and Sponsored Projects (Rules 231\u2013233)<\/div>\n\n \n <div class=\"rule-block\" id=\"ch9r231\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 231<\/span><span class=\"rule-title\">Grants to Voluntary Organisations and Execution of Bonds<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccb<\/span><span><strong>R.231(1) \u2014 Ceiling:<\/strong> Grant for administrative expenditure to voluntary organisations shall <strong>not exceed 25% of approved pay and allowances<\/strong> of the personnel of the voluntary organisation. Grants to meet admin expenditure of private institutions (other than voluntary orgs) shall not ordinarily be sanctioned; exceptional cases require <strong>Internal Finance Wing concurrence<\/strong>. <span class=\"tag-red\">\u2757 Max 25% of approved pay and allowances<\/span><\/span><\/li>\n <\/ul>\n <div class=\"box-amber\">\n <div class=\"box-amber-lbl\">\u2b50 Execution of Bond \u2014 Rule 231(2) \u2014 Four Obligations<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>Before a grant is released, members of the <strong>Executive Committee<\/strong> shall execute bonds in prescribed format binding themselves <strong>jointly and severally<\/strong> to:<\/span><\/li>\n <li><span class=\"bi\">1\ufe0f\u20e3<\/span><span>Abide by the <strong>conditions of the grant<\/strong> and target dates, if any<\/span><\/li>\n <li><span class=\"bi\">2\ufe0f\u20e3<\/span><span><strong>Not divert the grant<\/strong> or entrust execution of the scheme to another institution\/organisation<\/span><\/li>\n <li><span class=\"bi\">3\ufe0f\u20e3<\/span><span>Abide by any <strong>other conditions<\/strong> specified in the agreement<\/span><\/li>\n <li><span class=\"bi\">4\ufe0f\u20e3<\/span><span>In event of <strong>breach<\/strong>: jointly and severally liable to <strong>refund the whole or part of the grant with interest at <span class=\"tag-red\">10% per annum<\/span><\/strong>. <strong>Stamp duty borne by Government.<\/strong><\/span><\/li>\n <\/ul>\n <\/div>\n <ul class=\"blist\" style=\"margin-top:10px\">\n <li><span class=\"bi\">\u2705<\/span><span><strong>R.231(3) \u2014 Bond not required for:<\/strong> Quasi-Government Institutions \u00b7 Central Autonomous Organisations \u00b7 Institutions whose budget is approved by Government.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch9r232\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 232<\/span><span class=\"rule-title\">Centrally Sponsored Schemes \u2014 Eight Principles<\/span><\/div>\n <div class=\"box-blue\">\n <div class=\"box-blue-lbl\">\ud83d\udccc Eight Principles for Centrally Sponsored Schemes<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">1\ufe0f\u20e3<\/span><span>Every CSS shall have <strong>time-bound quantifiable and measurable outcome targets<\/strong> with provisions for periodic monitoring, mid-term evaluation and detailed impact studies<\/span><\/li>\n <li><span class=\"bi\">2\ufe0f\u20e3<\/span><span>Designed <strong>in consultation with States and UTs<\/strong>. States may change details to suit local conditions subject to reporting to the concerned Ministry\/Department<\/span><\/li>\n <li><span class=\"bi\">3\ufe0f\u20e3<\/span><span>Schemes with <strong>similar objectives targeting the same population<\/strong> should be <strong>converged<\/strong><\/span><\/li>\n <li><span class=\"bi\">4\ufe0f\u20e3<\/span><span>Number of schemes should be <strong>restricted<\/strong> to maximise gain. Central Ministries' role: <strong>capacity building, inter-sectoral coordination and detailed monitoring<\/strong><\/span><\/li>\n <li><span class=\"bi\">5\ufe0f\u20e3<\/span><span>Release of funds to States and monitoring through <strong>PFMS<\/strong>. Before further releases, ensure earlier funds effectively utilised and State capacity to spend is adequate<\/span><\/li>\n <li><span class=\"bi\">6\ufe0f\u20e3<\/span><span>Focus on <strong>attainment of objectives, not on expenditure<\/strong>. Mechanism to avoid release of large part of funds towards year-end to be built into scheme design<\/span><\/li>\n <li><span class=\"bi\">7\ufe0f\u20e3<\/span><span><strong>Concurrent monitoring and evaluation mechanism<\/strong> to be built into the scheme. Periodic review for mid-course corrections<\/span><\/li>\n <li><span class=\"bi\">8\ufe0f\u20e3<\/span><span><strong>Post-completion review<\/strong> by State Governments\/UTs implementing the scheme \u2014 highlighting time and cost overruns and suggestions for future schemes. Copy to be obtained by the Ministry<\/span><\/li>\n <\/ul>\n <\/div>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch9r233\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 233<\/span><span class=\"rule-title\">Funding of Sponsored Projects \/ Schemes (R&D)<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udd2c<\/span><span>Ministries\/Departments may sponsor projects to <strong>Universities, IITs, and Autonomous Organisations such as ICAR, CSIR, ICMR<\/strong>, etc., whose results are expected to be in national interest. Normally the <strong>entire expenditure including capital expenditure<\/strong> is funded by the Ministry\/Department.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>Funds for such projects are <strong>NOT treated as grants-in-aid<\/strong> in the books of the implementing agency.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccb<\/span><span><strong>Ownership of physical and intellectual assets<\/strong> created or acquired out of such funds shall <strong>vest in the sponsor<\/strong>. While ongoing, the recipient shall <strong>not treat such assets as their own assets<\/strong> but shall disclose their holding and use in the <strong>Notes to Accounts<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udd04<\/span><span><strong>On completion:<\/strong> Ministry\/Department shall communicate whether the assets should be <strong>returned, sold or retained<\/strong> by the implementing agency.\n <ul class=\"blist-sub\">\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span>If sold: proceeds credited to the <strong>account of the sponsoring Department\/Organisation<\/strong><\/span><\/li>\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span>If retained: implementing agency includes assets at <strong>book value in their own accounts<\/strong><\/span><\/li>\n <\/ul>\n <\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><em>Note:<\/em> Scientific Departments are allowed to extend the provisions of Rule 233(i)&(ii) to <strong>private sector\/NGOs<\/strong> commissioned to execute projects or schemes.<\/span><\/li>\n <\/ul>\n <\/div>\n\n \n <div style=\"background:#fffbe6;border-left:5px solid #c9a227;padding:10px 18px;border-radius:0 6px 6px 0;margin:44px 0 10px;font-weight:700;color:#7a5500;font-size:14px;letter-spacing:.04em;text-transform:uppercase\">Section IV \u2014 Registers, Accounts and Audit (Rules 234\u2013237)<\/div>\n\n \n <div class=\"rule-block\" id=\"ch9r234\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 234<\/span><span class=\"rule-title\">Register of Grants \u2014 Form GFR-21<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udcd2<\/span><span>A <strong>Register of Grants<\/strong> shall be maintained by the sanctioning authority in <strong>Form GFR-21<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\u270d\ufe0f<\/span><span><strong>Columns (i)\u2013(v)<\/strong> filled simultaneously with issue of the sanction order, attested by a nominated <strong>Gazetted Officer<\/strong>. The serial number shall be recorded on the body of the sanction.<\/span><\/li>\n <li><span class=\"bi\">\u270d\ufe0f<\/span><span><strong>Columns (vi)\u2013(vii)<\/strong> filled and attested by the Gazetted Officer as soon as the bill is ready. Bill submitted to the DDO with the register for signing.<\/span><\/li>\n <li><span class=\"bi\">\u26d4<\/span><span><strong>No bill shall be signed<\/strong> unless it has been noted in the Register of Grants against the relevant sanction. This guards against <strong>double payment<\/strong> and facilitates watching of instalment payments.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>Column (xiii) information used for regulating subsequent grants.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch9r235\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 235<\/span><span class=\"rule-title\">Accounts of Grantee Institutions<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udcd2<\/span><span>Institutions receiving grants shall, <strong>irrespective of the amount involved<\/strong>, be required to:\n <ul class=\"blist-sub\">\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span>Maintain <strong>subsidiary accounts<\/strong> of the Government grant<\/span><\/li>\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span>Furnish to the Accounts Officer a set of <strong>audited statement of accounts<\/strong> after utilisation of the grants or whenever called for<\/span><\/li>\n <\/ul>\n <\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch9r236\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 236<\/span><span class=\"rule-title\">Audit of Accounts \u2014 CAG and Internal Audit<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udd0d<\/span><span><strong>R.236(1):<\/strong> Accounts of all grantee institutions are open to inspection by the sanctioning authority and audit by both the <strong>CAG<\/strong> (under CAG DPC Act 1971) and <strong>internal audit by the Principal Accounts Office<\/strong>. A provision to this effect shall <strong>invariably be incorporated<\/strong> in all orders sanctioning grants-in-aid.<\/span><\/li>\n <\/ul>\n <div class=\"box-blue\">\n <div class=\"box-blue-lbl\">\ud83d\udccc CAG Audit Thresholds \u2014 Rule 236(2) \u2014 Section 14 of CAG DPC Act<\/div>\n <table style=\"width:100%;border-collapse:collapse;font-size:14px;margin-top:6px\">\n <thead>\n <tr style=\"background:#1a3a6b;color:#fff\">\n <th style=\"padding:8px 12px\">Threshold<\/th>\n <th style=\"padding:8px 12px\">Condition<\/th>\n <th style=\"padding:8px 12px\">Effect<\/th>\n <\/tr>\n <\/thead>\n <tbody>\n <tr style=\"background:#f0f6ff;border-bottom:1px solid #d0dcef\">\n <td style=\"padding:8px 12px\"><strong>\u2265\u20b925 lakhs AND \u226575% of total expenditure<\/strong><\/td>\n <td style=\"padding:8px 12px\">Grants\/loans in a financial year meet both conditions<\/td>\n <td style=\"padding:8px 12px\">CAG audit under <strong>Section 14<\/strong> of CAG DPC Act \u2014 <strong>mandatory<\/strong><\/td>\n <\/tr>\n <tr style=\"background:#e8f0ff;border-bottom:1px solid #d0dcef\">\n <td style=\"padding:8px 12px\"><strong>\u2265\u20b91 crore<\/strong><\/td>\n <td style=\"padding:8px 12px\">Grants\/loans in a financial year reach \u20b91 crore<\/td>\n <td style=\"padding:8px 12px\">CAG <strong>may also audit<\/strong><\/td>\n <\/tr>\n <tr style=\"background:#f0f6ff\">\n <td style=\"padding:8px 12px\"><strong>Continuation<\/strong><\/td>\n <td style=\"padding:8px 12px\">Once CAG audits in a FY<\/td>\n <td style=\"padding:8px 12px\">CAG shall continue to audit for a <strong>further period of 2 years<\/strong> even if conditions above are not fulfilled thereafter. <span class=\"tag-red\">\u2757 2 more years<\/span><\/td>\n <\/tr>\n <\/tbody>\n <\/table>\n <\/div>\n <ul class=\"blist\" style=\"margin-top:10px\">\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>R.236(2)(ii) \u2014 Section 15:<\/strong> CAG may scrutinise the procedures by which the sanctioning authority satisfies itself as to the <strong>fulfilment of conditions<\/strong> for grant-specific purposes, and has <strong>right of access<\/strong> to books and accounts of that institution (except foreign states\/international bodies).<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>R.236(3):<\/strong> In all other cases, the institution shall get its accounts audited from <strong>Chartered Accountants of its own choice<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcb0<\/span><span><strong>R.236(4):<\/strong> Where CAG is the sole auditor for a local body or institution, <strong>auditing charges shall be payable by the auditee institution in full<\/strong> unless specifically waived by Government.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch9r237\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 237<\/span><span class=\"rule-title\">Time Schedule for Submission of Annual Accounts \u2014 Three Dates<\/span><\/div>\n <div class=\"box-amber\">\n <div class=\"box-amber-lbl\">\u2b50 Three Milestone Dates \u2014 Annual Accounts<\/div>\n <table style=\"width:100%;border-collapse:collapse;font-size:14px;margin-top:6px\">\n <thead>\n <tr style=\"background:#c9a227;color:#1a3400\">\n <th style=\"padding:8px 12px;text-align:left\">Deadline<\/th>\n <th style=\"padding:8px 12px;text-align:left\">Activity<\/th>\n <\/tr>\n <\/thead>\n <tbody>\n <tr style=\"background:#fffdf0;border-bottom:1px solid #e8e0c0\"><td style=\"padding:8px 12px\"><strong>30th June<\/strong><\/td><td style=\"padding:8px 12px\">Approved and authenticated annual accounts made available by Autonomous Body to the concerned Audit Office \u2192 commencement of audit of annual accounts<\/td><\/tr>\n <tr style=\"background:#fff8e8;border-bottom:1px solid #e8e0c0\"><td style=\"padding:8px 12px\"><strong>31st October<\/strong><\/td><td style=\"padding:8px 12px\">Issue of the final SAR (Statement of Audit Report) in English version with audit certificate to Autonomous Body\/Government concerned<\/td><\/tr>\n <tr style=\"background:#fffdf0\"><td style=\"padding:8px 12px\"><strong>31st December<\/strong><\/td><td style=\"padding:8px 12px\">Submission of Annual Report and Audited Accounts to the Nodal Ministry for laying on the Table of Parliament<\/td><\/tr>\n <\/tbody>\n <\/table>\n <\/div>\n <\/div>\n\n \n <div style=\"background:#f0f4ff;border-left:5px solid #1a3a6b;padding:10px 18px;border-radius:0 6px 6px 0;margin:44px 0 10px;font-weight:700;color:#1a3a6b;font-size:14px;letter-spacing:.04em;text-transform:uppercase\">Section V \u2014 Utilisation Certificates and Performance Reports (Rules 238\u2013242)<\/div>\n\n \n <div class=\"rule-block\" id=\"ch9r238\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 238(1)<\/span><span class=\"rule-title\">Utilisation Certificate \u2014 Non-Recurring Grants<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccb<\/span><span>For non-recurring grants, a <strong>Utilisation Certificate in Form GFR 12-A<\/strong> shall be insisted upon in the sanction order.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcca<\/span><span>The UC shall disclose whether specified, quantified and qualitative targets were actually reached \u2014 it shall contain an <strong>output-based (not input-based) performance assessment<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcc5<\/span><span>UC shall be submitted <strong>within 12 months of the closure of the financial year<\/strong>. <span class=\"tag-red\">\u2757 12 months<\/span><\/span><\/li>\n <li><span class=\"bi\">\u26d4<\/span><span>Where UC is not received within the prescribed time, the Ministry\/Department is at liberty to <strong>blacklist such institution from any future grant, subsidy or other financial support<\/strong> from Government.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch9r238b\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 238(2)<\/span><span class=\"rule-title\">Utilisation Certificate \u2014 Recurring Grants<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccb<\/span><span>For recurring grants, the next financial year release shall be made <strong>only after provisional UC for the preceding financial year is submitted<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>Release of grants <strong>exceeding 75% of the total amount sanctioned for the subsequent FY<\/strong> shall be done only after the <strong>UC plus annual audited statement relating to the preceding year<\/strong> are submitted to the satisfaction of the Ministry\/Department. <span class=\"tag-red\">\u2757 75% threshold \u2014 UC + audited statement needed<\/span><\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>Internal Audit reports, Inspection Reports from IAAD and quarterly performance reports shall also be considered while sanctioning further grants.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><em>Scientific Departments special measure:<\/em> Permitted to release subsequent grants-in-aid on receipt of UCs confirming utilisation of <strong>75% of total value of previous grants<\/strong>.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch9r238c\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 238(3)\u2013(6)<\/span><span class=\"rule-title\">UC Exceptions, Special Disclosures and Parliament Reporting Thresholds<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\u2705<\/span><span><strong>R.238(3) \u2014 No UC required:<\/strong> For grants\/CFA given as <strong>reimbursement of expenditure already incurred<\/strong> on the basis of duly audited accounts. Sanction letters shall clearly specify that UCs will not be necessary.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcd2<\/span><span><strong>R.238(4) \u2014 Central Autonomous Orgs UC:<\/strong> Shall separately disclose: annual expenditure incurred AND funds given to <strong>(a) suppliers of stores\/assets (b) construction agencies (c) staff for house building\/conveyance loans<\/strong> \u2014 which do not constitute expenditure at that stage but are pending adjustment. Treated as unutilised grants allowed to be <strong>carried forward<\/strong>.<\/span><\/li>\n <\/ul>\n <div class=\"box-blue\">\n <div class=\"box-blue-lbl\">\ud83d\udccc Parliament Reporting Thresholds \u2014 Rules 238(5) and 238(6)<\/div>\n <table style=\"width:100%;border-collapse:collapse;font-size:14px;margin-top:6px\">\n <thead>\n <tr style=\"background:#1a3a6b;color:#fff\">\n <th style=\"padding:8px 12px\">Type<\/th>\n <th style=\"padding:8px 12px\">Amount Range<\/th>\n <th style=\"padding:8px 12px\">Requirement<\/th>\n <\/tr>\n <\/thead>\n <tbody>\n <tr style=\"background:#f0f6ff;border-bottom:1px solid #d0dcef\">\n <td style=\"padding:8px 12px\"><strong>Recurring<\/strong><\/td>\n <td style=\"padding:8px 12px\">\u20b910L to <\u20b950L<\/td>\n <td style=\"padding:8px 12px\">Statement in Ministry's Annual Report<\/td>\n <\/tr>\n <tr style=\"background:#e8f0ff;border-bottom:1px solid #d0dcef\">\n <td style=\"padding:8px 12px\"><strong>Recurring<\/strong><\/td>\n <td style=\"padding:8px 12px\">\u2265\u20b950L<\/td>\n <td style=\"padding:8px 12px\">Annual Report and Accounts laid on table of <strong>Parliament within 9 months<\/strong><\/td>\n <\/tr>\n <tr style=\"background:#f0f6ff;border-bottom:1px solid #d0dcef\">\n <td style=\"padding:8px 12px\"><strong>Non-Recurring (one-time)<\/strong><\/td>\n <td style=\"padding:8px 12px\">\u20b910L to \u20b95Cr<\/td>\n <td style=\"padding:8px 12px\">Statement in Ministry's Annual Report<\/td>\n <\/tr>\n <tr style=\"background:#e8f0ff\">\n <td style=\"padding:8px 12px\"><strong>Non-Recurring (one-time)<\/strong><\/td>\n <td style=\"padding:8px 12px\">\u2265\u20b95Cr<\/td>\n <td style=\"padding:8px 12px\">Annual Report and Audited Accounts laid on table of <strong>Parliament within 9 months<\/strong><\/td>\n <\/tr>\n <\/tbody>\n <\/table>\n <\/div>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch9r239\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rules 239\u2013241<\/span><span class=\"rule-title\">Utilisation Certificates \u2014 State Govts and DBT Schemes<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccb<\/span><span><strong>R.239 \u2014 CSS Grants to States:<\/strong> UC in <strong>Form GFR 12-C<\/strong> submitted by the State Government, countersigned by the <strong>Administrative Secretary of the Division regulating the Scheme \/ Finance Secretary<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccb<\/span><span><strong>R.240 \u2014 Grants through local bodies\/private institutions:<\/strong> When Central grants are given to State Governments for expenditure to be incurred through local bodies or private institutions, the <strong>State Government concerned<\/strong> shall furnish the Utilisation Certificates.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcb3<\/span><span><strong>R.241 \u2014 DBT Schemes:<\/strong> For schemes covered under Direct Benefit Transfers where funds flow directly from Central Government to beneficiaries, the <strong>intimation from the bank \/ NPCI (Aadhaar Payment Bridge) regarding deposit of funds in beneficiaries' bank accounts<\/strong> shall be treated as a <strong>Utilisation Certificate<\/strong>. The Ministry\/Department shall keep proper records of such direct releases.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch9r242\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 242<\/span><span class=\"rule-title\">Performance Parameters and Achievement-cum-Performance Reports<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udcca<\/span><span><strong>R.242(1):<\/strong> Performance parameters should be clearly set to allow better oversight of Autonomous Bodies.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcc5<\/span><span><strong>R.242(2)(i):<\/strong> Grantee institutions shall submit performance-cum-achievement reports <strong>within 6 months of the close of the financial year<\/strong>. <span class=\"tag-red\">\u2757 6 months<\/span><\/span><\/li>\n <li><span class=\"bi\">\u2705<\/span><span><strong>Performance reports NOT required for:<\/strong> Non-recurring grants (anniversaries, special tours, maintenance grants for education).<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccb<\/span><span><strong>Recurring grants \u2264\u20b925 lakhs:<\/strong> Sanctioning authority may <strong>dispense<\/strong> with performance-cum-achievement reports (refer to UCs and other available information instead). <span class=\"tag-red\">\u2757 \u2264\u20b925L \u2014 may be dispensed<\/span><\/span><\/li>\n <\/ul>\n <div class=\"box-blue\">\n <div class=\"box-blue-lbl\">\ud83d\udccc Annual Report Inclusion Thresholds \u2014 Rule 242(2)(iv)<\/div>\n <table style=\"width:100%;border-collapse:collapse;font-size:14px;margin-top:6px\">\n <thead>\n <tr style=\"background:#1a3a6b;color:#fff\">\n <th style=\"padding:8px 12px\">Organisation \/ Amount<\/th>\n <th style=\"padding:8px 12px\">Requirement<\/th>\n <\/tr>\n <\/thead>\n <tbody>\n <tr style=\"background:#f0f6ff;border-bottom:1px solid #d0dcef\">\n <td style=\"padding:8px 12px\">Autonomous Orgs getting <strong>\u2265\u20b92 crore<\/strong><\/td>\n <td style=\"padding:8px 12px\">Annual Report + Audited Accounts laid on table of Parliament \u2014 Ministry need not include performance-cum-achievement report in their own Annual Report<\/td>\n <\/tr>\n <tr style=\"background:#e8f0ff;border-bottom:1px solid #d0dcef\">\n <td style=\"padding:8px 12px\">Autonomous Orgs getting <strong><\u20b92 crore<\/strong><\/td>\n <td style=\"padding:8px 12px\">All Departments to include in their Annual Report: statement showing quantum of funds and purpose of utilisation<\/td>\n <\/tr>\n <tr style=\"background:#f0f6ff;border-bottom:1px solid #d0dcef\">\n <td style=\"padding:8px 12px\">Recurring: <strong>>\u20b910L\u2013<\u20b950L<\/strong> \/ Non-recurring: <strong>>\u20b910L\u2013<\u20b95Cr<\/strong><\/td>\n <td style=\"padding:8px 12px\">Ministry's own assessment of achievements\/performance of the institution to be included in Annual Report<\/td>\n <\/tr>\n <tr style=\"background:#e8f0ff\">\n <td style=\"padding:8px 12px\">Recurring: <strong>\u2265\u20b950L<\/strong> \/ Non-recurring: <strong>\u2265\u20b95Cr<\/strong><\/td>\n <td style=\"padding:8px 12px\">Full individual review in Ministry Annual Report \u2014 specifying achievements vis-\u00e0-vis amount spent, purpose and destination of grants<\/td>\n <\/tr>\n <\/tbody>\n <\/table>\n <\/div>\n <\/div>\n\n \n <div style=\"background:#e8f0ff;border-left:5px solid #1a3a6b;padding:10px 18px;border-radius:0 6px 6px 0;margin:44px 0 10px;font-weight:700;color:#1a3a6b;font-size:14px;letter-spacing:.04em;text-transform:uppercase\">Section VI \u2014 Discretionary, Other Grants and Employee Welfare (Rules 243\u2013245)<\/div>\n\n \n <div class=\"rule-block\" id=\"ch9r243\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 243<\/span><span class=\"rule-title\">Discretionary Grants<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccb<\/span><span>Expenditure from Discretionary Grants shall be regulated by <strong>general or special orders of the competent authority<\/strong> specifying the object and conditions applicable.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>Such Discretionary Grants must be:\n <ul class=\"blist-sub\">\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span><strong>Non-recurring<\/strong><\/span><\/li>\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span>Must <strong>not involve any future commitment<\/strong><\/span><\/li>\n <\/ul>\n <\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch9r244\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 244<\/span><span class=\"rule-title\">Other Grants<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>Grants, subventions, etc. \u2014 including grants to States other than those dealt with in the foregoing rules \u2014 shall be made under <strong>special orders of Government<\/strong>.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch9r245\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 245<\/span><span class=\"rule-title\">Recurring Grants for Government Employees' Welfare \u2014 Staff Clubs<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83c\udfc5<\/span><span>Grants-in-aid for provision of amenities or recreational\/welfare facilities to staff are regulated under orders of the <strong>Ministry of Home Affairs<\/strong>.<\/span><\/li>\n <\/ul>\n <div class=\"box-amber\">\n <div class=\"box-amber-lbl\">\u2b50 Staff Welfare Grant Rates and Key Rules<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udcb0<\/span><span><strong>Base rate:<\/strong> <strong>\u20b950 per head per annum<\/strong><\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcb0<\/span><span><strong>Matching grant:<\/strong> Additional up to <strong>\u20b925 per head per annum<\/strong> to match subscriptions collected during the previous financial year by existing staff clubs (or collected up to date of proposal for new clubs)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcc5<\/span><span><strong>Eligible strength<\/strong> = strength as on <strong>31st March of the previous financial year<\/strong> (or date of proposal for new clubs)<\/span><\/li>\n <li><span class=\"bi\">\u26d4<\/span><span><strong>Excluded from calculation:<\/strong> Staff paid from contingencies \u00b7 Work-charged staff \u00b7 Staff eligible for similar concession under other rules\/statutory provisions (e.g., industrial workers)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>Grant-in-aid in respect of <strong>Gazetted Officers<\/strong> is admissible only to that Ministry\/Department\/Office <strong>where membership of recreation club is open to such officers<\/strong><\/span><\/li>\n <li><span class=\"bi\">\ud83c\udfdb\ufe0f<\/span><span><strong>One-time grant for setting up a Recreation Club:<\/strong> Maximum <strong>\u20b950,000<\/strong> <span class=\"tag-red\">\u2757 Max \u20b950,000<\/span><\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcc5<\/span><span>Accounts of clubs for preceding year, duly audited by Internal Auditor, to be obtained by the Ministry\/Department <strong>by 30th April<\/strong> before allocating funds for the next financial year. <span class=\"tag-red\">\u2757 30th April<\/span><\/span><\/li>\n <\/ul>\n <\/div>\n <ul class=\"blist\" style=\"margin-top:10px\">\n <li><span class=\"bi\">\ud83d\udccb<\/span><span>Illustrative expenditure items from staff welfare grants include: sports equipment \u00b7 uniforms for teams \u00b7 magazines\/periodicals \u00b7 tournament entry fees \u00b7 hiring of playgrounds\/furniture \u00b7 conveyance expenses \u00b7 entertainments \u00b7 prizes \u00b7 film shows \u00b7 hiring of accommodation \u00b7 cultural\/sports\/physical development programmes \u00b7 inter-Ministerial and inter-Departmental meets.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"box-amber\" style=\"margin-top:36px\">\n <div class=\"box-amber-lbl\">\u2b50 Key Numbers and Facts to Remember \u2014 Chapter 9<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>6 categories<\/strong> of eligible grantee recipients (R.228)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>New autonomous body: <strong>Cabinet approval<\/strong> mandatory \u00b7 Regional offices: Admin Ministry + MoF concurrence (R.229)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>Corpus Fund from budget: <strong>MoF prior concurrence<\/strong> \u00b7 from internal accruals: <strong>Admin Ministry approval<\/strong> (R.229(v))<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>User charges reviewed: <strong>at least once a year<\/strong> (R.229(vi))<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>Peer review: every <strong>3 or 5 years<\/strong> depending on size and activity (R.229(ix))<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>MoU mandatory: budgetary support <strong>>\u20b95 crore per annum<\/strong> (R.229(xi))<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>Cash balance: preferably <strong>not more than 3 months<\/strong> of requirement (R.230(7))<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>Interest on grants: mandatorily remitted to <strong>Consolidated Fund of India<\/strong> (R.230(8))<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>Grants may cover expenditure <strong>not earlier than 2 years<\/strong> prior to sanction date (R.230(15))<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>SC\/ST\/OBC clause: ><strong>20 regular employees<\/strong> + \u226550% recurring expenditure from grants + registered society receiving <strong>\u2265\u20b920L<\/strong> general purpose annual grant from CFI (R.230(17))<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>Voluntary Org admin grant: max <strong>25%<\/strong> of approved pay and allowances (R.231(1))<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>Bond breach: refund with interest at <strong>10% per annum<\/strong> \u00b7 stamp duty borne by <strong>Govt<\/strong> (R.231(2))<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>Bond NOT required: Quasi-Govt Institutions \u00b7 Central Autonomous Orgs \u00b7 Budget-approved Institutions (R.231(3))<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>CAG audit (S.14): grants \u2265<strong>\u20b925L AND \u226575%<\/strong> of total expenditure \u00b7 OR \u2265<strong>\u20b91 crore<\/strong> \u00b7 Continues for <strong>2 further years<\/strong> once triggered (R.236)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>Annual accounts: <strong>30 June<\/strong> (to audit) \u2192 <strong>31 Oct<\/strong> (SAR with certificate) \u2192 <strong>31 Dec<\/strong> (to Parliament) (R.237)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>Non-recurring UC (Form GFR 12-A): within <strong>12 months<\/strong> of FY closure \u00b7 Non-submission \u2192 blacklisting (R.238(1))<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>Recurring grants: ><strong>75%<\/strong> of subsequent FY release needs UC + audited statement (R.238(2))<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>Parliament table \u2014 Recurring: <strong>\u2265\u20b950L within 9 months<\/strong> \u00b7 Non-recurring: <strong>\u2265\u20b95Cr within 9 months<\/strong> (R.238(5)\u2013(6))<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>DBT UC: bank\/NPCI deposit intimation = UC (R.241)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>Performance report: within <strong>6 months<\/strong> of FY close \u00b7 May be dispensed for recurring \u2264<strong>\u20b925L<\/strong> (R.242)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>Autonomous Orgs \u2265<strong>\u20b92Cr<\/strong>: Annual Report and Audited Accounts laid on Parliament table (R.242)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>Staff welfare: <strong>\u20b950\/head\/year<\/strong> + matching <strong>\u20b925\/head\/year<\/strong> \u00b7 One-time club setup: <strong>\u20b950,000<\/strong> max \u00b7 Accounts by <strong>30th April<\/strong> (R.245)<\/span><\/li>\n <\/ul>\n <\/div>\n\n\n \n <div style=\"background:#fffbe6;border-left:5px solid #c9a227;padding:10px 18px;border-radius:0 6px 6px 0;margin:44px 0 10px;font-weight:700;color:#7a5500;font-size:14px;letter-spacing:.04em;text-transform:uppercase\">Section VIII \u2014 Loans (Rules 246\u2013263)<\/div>\n\n \n <div class=\"idx-outer\">\n <div class=\"idx-lbl\">\ud83d\udccb Rules at a Glance \u2014 Loans (R.246\u2013263)<\/div>\n <table class=\"idx-table\">\n <thead><tr><th>Rule<\/th><th>Subject<\/th><th>Key Point<\/th><\/tr><\/thead>\n <tbody>\n <tr><td>246<\/td><td>Applicability<\/td><td>State Govts, UTs, local bodies, foreign Govts (on State recommendation), Govt institutions and bodies<\/td><\/tr>\n <tr><td>247<\/td><td>Powers and nodal division<\/td><td>DFPR powers \u00b7 Budget Division, DEA, MoF = nodal division for terms and conditions<\/td><\/tr>\n <tr><td>248<\/td><td>Certificate in sanction<\/td><td>Every sanction must certify compliance with MoF rules and MoF approval for interest rate and repayment period<\/td><\/tr>\n <tr><td>249<\/td><td>Sanction terms<\/td><td>Must specify all terms \u00b7 Modifications only for very special reasons + prior MoF concurrence<\/td><\/tr>\n <tr><td>250<\/td><td>General conditions \u2014 loans<\/td><td>Max 30 years \u00b7 Annual instalments \u00b7 Advance payment >14 days \u2192 full interest \u00b7 31 March holiday exception \u00b7 Notice Form GFR-19 one month before due date \u00b7 Security \u226533\u2153% above loan amount<\/td><\/tr>\n <tr><td>251<\/td><td>Interest calculation<\/td><td>Interest for day of payment, not day of repayment \u00b7 Days \u00d7 rate \u00f7 365 (366 leap year)<\/td><\/tr>\n <tr><td>252<\/td><td>Recovery and moratorium<\/td><td>Annual equal instalments \u00b7 Moratorium may be allowed for principal but NOT for interest<\/td><\/tr>\n <tr><td>253<\/td><td>Loans to State\/UT\/PSU<\/td><td>Normal rate \u00b7 Concession = direct subsidy (not reduced rate) \u00b7 Loan agreement with inspection clause \u00b7 Form GFR-15 for wholly Govt-owned companies<\/td><\/tr>\n <tr><td>254<\/td><td>Wholly Govt-owned companies<\/td><td>Undertaking in Form GFR-32 \u00b7 Fixed assets not to be hypothecated without Govt approval \u00b7 No stamp duty on undertaking<\/td><\/tr>\n <tr><td>255<\/td><td>Security requirement<\/td><td>Security \u226533\u2153% above loan amount \u00b7 Competent authority may accept less for recorded reasons<\/td><\/tr>\n <tr><td>256<\/td><td>Utilisation Certificates \u2014 loans<\/td><td>Form GFR 12-B \u00b7 Target date: 18 months from sanction \u00b7 Consolidated UC: by September of second succeeding FY<\/td><\/tr>\n <tr><td>257<\/td><td>Loan instalments<\/td><td>Each instalment = separate loan for interest\/repayment \u00b7 May be consolidated at FY end \u00b7 Moratorium for principal allowed; NOT for interest<\/td><\/tr>\n <tr><td>258<\/td><td>Default and penal interest<\/td><td>Penal rate \u2265 normal + 2.5% p.a. \u00b7 Default reported by Accounts Officer to sanctioning authority \u00b7 Interest-free loans: default triggers normal rate<\/td><\/tr>\n <tr><td>259<\/td><td>Irrecoverable loans<\/td><td>Write-off only with prior MoF approval<\/td><\/tr>\n <tr><td>260<\/td><td>Accounts and control<\/td><td>Maintained by Accounts Officer \u00b7 Recovery watched \u00b7 Conditions monitored<\/td><\/tr>\n <tr><td>262<\/td><td>Annual returns<\/td><td>Form GFR-13 \u00b7 Each PAO submits by 30 September for position as on 31 March<\/td><\/tr>\n <tr><td>263<\/td><td>Annual Assessment Report<\/td><td>FA submits to MoF by 30 June of each FY<\/td><\/tr>\n <\/tbody>\n <\/table>\n <\/div>\n\n \n <div class=\"rule-block\" id=\"ch9r246\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 246<\/span><span class=\"rule-title\">Applicability of Loan Rules<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>Rules 246\u2013263 shall be observed by all authorities competent to sanction loans of public moneys to: <strong>State Governments<\/strong> \u00b7 <strong>Local Administrations of Union Territories<\/strong> \u00b7 <strong>Local bodies<\/strong> \u00b7 <strong>Foreign Governments<\/strong> (on specific recommendation of State Government) \u00b7 <strong>Government institutions and other Government bodies<\/strong>.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch9r247\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 247<\/span><span class=\"rule-title\">Powers and Nodal Division<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccb<\/span><span><strong>Sub-rule (1):<\/strong> Powers of Departments and Administrators to sanction loans are given in the <strong>Delegation of Financial Powers Rules (DFPR)<\/strong> and other general and special orders.<\/span><\/li>\n <li><span class=\"bi\">\ud83c\udfdb\ufe0f<\/span><span><strong>Sub-rule (2):<\/strong> <strong>Budget Division, Department of Economic Affairs, Ministry of Finance<\/strong> shall be the <strong>nodal division<\/strong> in MoF to finalise terms and conditions of loans by the Central Government. <span class=\"tag-red\">\u2757 Budget Division, DEA = nodal<\/span><\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch9r248\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 248<\/span><span class=\"rule-title\">Mandatory Certificate in Every Loan Sanction<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccb<\/span><span>All sanctions of loans issued by a Department of Central Government or an Administrator of Union Territory shall include a <strong>certificate<\/strong> that: (a) the sanction is in accordance with <strong>rules or principles prescribed by the Ministry of Finance<\/strong>; and (b) the <strong>rate of interest<\/strong> on the loan and the <strong>period of repayment<\/strong> have been <strong>fixed with the approval of MoF<\/strong>.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch9r249\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 249<\/span><span class=\"rule-title\">Terms and Conditions \u2014 Strict Adherence<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccb<\/span><span><strong>Sub-rule (1):<\/strong> All loan sanctions shall be subject to DFPR and shall specify all terms and conditions including <strong>repayment terms and payment of interest<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\u26a0\ufe0f<\/span><span><strong>Sub-rule (2):<\/strong> Borrowers shall adhere strictly to the settled terms. <strong>Modifications<\/strong> can be made subsequently only for <strong>very special reasons<\/strong> and after seeking <strong>prior concurrence of Ministry of Finance<\/strong>. <span class=\"tag-red\">\u2757 Modification \u2192 prior MoF concurrence<\/span><\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch9r250\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 250<\/span><span class=\"rule-title\">General Conditions Regulating All Loans<\/span><\/div>\n\n <p class=\"sec-h\">Sub-rule (1) \u2014 Eight General Conditions<\/p>\n <div class=\"box-blue\">\n <div class=\"box-blue-lbl\">\ud83d\udccc Eight General Conditions \u2014 Rule 250(1)<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">(i)<\/span><span>A <strong>specific term shall be fixed<\/strong> \u2014 as short as possible \u2014 within which each loan must be fully repaid with interest. In very special cases, the term may extend to <strong>30 years<\/strong>. <span class=\"tag-red\">\u2757 Maximum: 30 years<\/span><\/span><\/li>\n <li><span class=\"bi\">(ii)<\/span><span>Term is calculated from the date on which the loan is <strong>completely drawn or declared closed<\/strong> by competent authority.<\/span><\/li>\n <li><span class=\"bi\">(iii)<\/span><span>Repayment shall be effected by <strong>instalments, ordinarily on annual basis<\/strong>, with due dates of payment specially prescribed.<\/span><\/li>\n <li><span class=\"bi\">(iv)<\/span><span><strong>Early payment:<\/strong> If instalment is paid before its due date, it may be applied entirely to principal provided interest due up to the date of actual payment is also paid. If interest is not paid, amount is first adjusted towards interest, and only the balance towards principal. However, if payment is <strong>in advance by 14 days or less<\/strong>, <strong>interest for the full period (half-year or full year)<\/strong> shall be payable. <span class=\"tag-amber\">\u2b50 Advance \u226414 days \u2192 full period interest<\/span><\/span><\/li>\n <li><span class=\"bi\">(v)<\/span><span><strong>Holiday rule:<\/strong> If due date falls on a Sunday or public holiday, payment on the <strong>next working day<\/strong> = payment on due date (no interest charged for the delay). <strong>Exception:<\/strong> If due date is <strong>31st March<\/strong> and it is a public holiday, recovery shall be made on the <strong>immediately preceding working day<\/strong>. If RBI is closed on the due date, shifted to next working day, except when due date is 31st March.<\/span><\/li>\n <li><span class=\"bi\">(vi)<\/span><span>Payment of interest and repayment of principal are always to be made with reference to the <strong>calendar date of payment of the loan<\/strong>. For a loan sanctioned to a State on or before 31st March but adjusted in RBI books in April, the instalments shall fall due on <strong>31st March of the succeeding year<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">(vii)<\/span><span><strong>Date of drawal by State Government:<\/strong> (a) Where monetary settlement is involved \u2014 calendar date on which loan is <strong>actually credited by RBI to the State Government's account<\/strong>. Exception: credit in April in accounts of previous year \u2192 deemed drawn on <strong>31st March<\/strong> of that FY. (b) Where no monetary settlement (accounts offices only) \u2014 <strong>last date of the month<\/strong> in which the adjustment is effected = date of drawal.<\/span><\/li>\n <li><span class=\"bi\">(viii)<\/span><span><strong>Advance notice:<\/strong> PAO\/Principal AO shall issue notices in <strong>Form GFR-19<\/strong> to loanees (other than State\/UT Govts), i.e. PSUs, statutory bodies, Govt institutions, approximately <strong>one month in advance<\/strong> of due date. However, <strong>omission to give notice does not exempt the loanee from consequences of default<\/strong>. <span class=\"tag-red\">\u2757 Notice: 1 month before due date \u00b7 Omission no excuse for default<\/span><\/span><\/li>\n <\/ul>\n <\/div>\n\n <p class=\"sec-h\">Sub-rule (2) \u2014 Loans to Private Institutions<\/p>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>Before sanctioning a loan to <strong>private institutions<\/strong>, the lending Ministry\/Department shall examine the <strong>financial health and managerial ability<\/strong> of such institutions.<\/span><\/li>\n <\/ul>\n\n <p class=\"sec-h\">Sub-rule (3) \u2014 Conditions Before Approving Loan to Non-State\/UT Parties<\/p>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccb<\/span><span><strong>(i) Pre-conditions:<\/strong> (a) Adequate budget provision must exist; (b) Grant of loan must be in accordance with approved Government policy and accepted patterns of assistance.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccb<\/span><span><strong>(ii) Information required from applicant:<\/strong><\/span><\/li>\n <\/ul>\n <div class=\"box-amber\">\n <div class=\"box-amber-lbl\">\u2b50 Six Documents Required from Loan Applicant<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">1\ufe0f\u20e3<\/span><span>Profit & Loss accounts \/ income & expenditure accounts and balance sheets for the <strong>last 3 years<\/strong><\/span><\/li>\n <li><span class=\"bi\">2\ufe0f\u20e3<\/span><span>Main sources of income and <strong>how the loan is proposed to be repaid<\/strong> within the stipulated period<\/span><\/li>\n <li><span class=\"bi\">3\ufe0f\u20e3<\/span><span>Security proposed to be offered + <strong>independent valuation<\/strong> + certificate that the asset is <strong>not already encumbered<\/strong><\/span><\/li>\n <li><span class=\"bi\">4\ufe0f\u20e3<\/span><span>Details of all previous Central\/State Government loans (amount, purpose, rate, period, date, outstanding balance, security)<\/span><\/li>\n <li><span class=\"bi\">5\ufe0f\u20e3<\/span><span>Complete list of all other outstanding loans and security against them<\/span><\/li>\n <li><span class=\"bi\">6\ufe0f\u20e3<\/span><span>Purpose for which loan is proposed to be utilised and the <strong>economics of the scheme<\/strong><\/span><\/li>\n <\/ul>\n <\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udd0d<\/span><span><strong>(iii)<\/strong> On receipt of information, <strong>confidential enquiries<\/strong> shall be made from other Depts\/State Govts from which the party has taken loans to judge past performance. If performance was unsatisfactory, the loan shall be <strong>refused<\/strong>. Security offered must be adequate and its value must be at least <strong>33\u2153% above the amount of the loan<\/strong>. Independent valuation may be obtained if possible. Applicant must satisfy <strong>both financial soundness and adequacy of security<\/strong>. <span class=\"tag-red\">\u2757 Security \u2265 loan + 33\u2153%<\/span><\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccb<\/span><span><strong>(iv)<\/strong> For institutions receiving grants-in-aid to meet part of their deficits: (a) income earmarked for servicing the loan shall not be included in computing the deficit; (b) scheme should be self-financing as far as possible; (c) institution must produce an undertaking from the State Government or Management that any shortfall towards repayment shall be made good by it.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcc5<\/span><span><strong>(v)<\/strong> Ministries\/Departments shall lay down a procedure for <strong>periodical review of old loans<\/strong> to take prompt action for enforcing regular payments.<\/span><\/li>\n <\/ul>\n\n <p class=\"sec-h\">Sub-rule (4) \u2014 Local Bodies<\/p>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>Detailed procedure for loans to local bodies is regulated by the <strong>Local Authorities Loans Act<\/strong> and other special Acts and rules thereunder.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch9r251\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 251<\/span><span class=\"rule-title\">Interest on Loans \u2014 Calculation Formula<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udcb0<\/span><span><strong>Sub-rule (1):<\/strong> Interest shall be charged at the rate <strong>prescribed by the Government<\/strong> for the particular loan or class of loans.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcd0<\/span><span><strong>Sub-rule (2):<\/strong> A loan shall bear interest for the <strong>day of payment but not for the day of repayment<\/strong>. For any period shorter than a complete year:<\/span><\/li>\n <\/ul>\n <div class=\"box-amber\">\n <div class=\"box-amber-lbl\">\u2b50 Interest Formula \u2014 Rule 251(2)<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>Interest = (Number of days \u00d7 Yearly rate of interest) \u00f7 365<\/strong> (366 in a leap year)<\/span><\/li>\n <\/ul>\n <\/div>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch9r252\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 252<\/span><span class=\"rule-title\">Recovery Procedure and Moratorium<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccb<\/span><span><strong>Sub-rule (1):<\/strong> Instructions issued by MoF from time to time prescribing interest rates and other terms for loans to State\/UT Govts, Local Bodies, Statutory Corporations, financial\/industrial\/commercial undertakings in Public Sector shall be <strong>strictly followed<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcca<\/span><span><strong>Sub-rule (2):<\/strong> Recovery shall ordinarily be effected in <strong>annual equal instalments of principal together with interest due on the outstanding principal<\/strong>. Instalments may be rounded off to nearest rupee, with final adjustment at the time of payment of the last instalment.<\/span><\/li>\n <li><span class=\"bi\">\u23f8\ufe0f<\/span><span><strong>Sub-rule (3):<\/strong> A suitable period of moratorium towards <strong>repayment of principal<\/strong> might be agreed to in individual cases. However, <strong>no moratorium shall ordinarily be allowed in respect of interest payable on loans<\/strong>. <span class=\"tag-red\">\u2757 Moratorium: principal YES \u00b7 interest NO<\/span><\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch9r253\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 253<\/span><span class=\"rule-title\">Loans to State\/UT Govts, Local Bodies, Statutory Corporations, PSUs \u2014 Agreements<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udcb0<\/span><span><strong>Sub-rule (1):<\/strong> Loans shall ordinarily be sanctioned at <strong>normal rates of interest<\/strong> prescribed by Government for the particular loanee category. If normal rate is considered too high and a concession is justified, it shall take the form of a <strong>direct subsidy<\/strong> debitable to the grants of the sanctioning authority \u2014 <strong>not a reduced interest rate<\/strong>. In such cases, borrower pays interest at normal rates first and <strong>claims subsidy separately<\/strong>.<\/span><\/li>\n <\/ul>\n <p class=\"sec-h\">Sub-rule (2) \u2014 Agreements and Documentation<\/p>\n <div class=\"box-blue\">\n <div class=\"box-blue-lbl\">\ud83d\udccc Documentation Requirements<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">1\ufe0f\u20e3<\/span><span><strong>For parties other than State Governments and wholly Govt-owned Companies:<\/strong> A <strong>loan agreement<\/strong> specifying all terms and conditions shall be executed. A clause shall invariably be inserted enabling Government to <strong>call for accounts and depute an officer to inspect books<\/strong> at any time.<\/span><\/li>\n <li><span class=\"bi\">2\ufe0f\u20e3<\/span><span><strong>For wholly Government-owned Companies:<\/strong> A written undertaking in <strong>Form GFR-15<\/strong> shall be obtained before drawal. The sanction shall specifically state that such an undertaking would be obtained and the Drawing Officer shall record a certificate that it has been obtained. <span class=\"tag-red\">\u2757 Form GFR-15 for wholly Govt-owned companies<\/span><\/span><\/li>\n <\/ul>\n <\/div>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch9r254\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 254<\/span><span class=\"rule-title\">Undertaking from Wholly-Owned Government Companies \u2014 Form GFR-32<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccb<\/span><span>For loans to wholly-owned Government Companies, a written undertaking that <strong>fixed assets of the company shall not be hypothecated without prior approval of the Government<\/strong> shall be obtained in <strong>Form GFR-32<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\u2705<\/span><span><strong>No stamp duty<\/strong> need be paid on these written undertakings. <span class=\"tag-amber\">\u2b50 No stamp duty<\/span><\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch9r255\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 255<\/span><span class=\"rule-title\">Security Requirement \u2014 One-Third Margin<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udd12<\/span><span>Loans to parties <em>other than<\/em> State Governments, wholly-owned Government Companies and Local Administration of Union Territories shall be sanctioned only against <strong>adequate security<\/strong>. Security shall ordinarily be at least <strong>33\u2153% (one-third) more than the amount of the loan<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccb<\/span><span>A competent authority may accept security of less value for <strong>adequate reasons to be recorded<\/strong>.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch9r256\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 256<\/span><span class=\"rule-title\">Utilization Certificates for Loans \u2014 Form GFR 12-B<\/span><\/div>\n\n <p class=\"sec-h\">Sub-rule (1) \u2014 Primary Responsibility<\/p>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>Where conditions are attached to the utilisation of a loan, the <strong>authority competent to sanction the loan is primarily responsible<\/strong> for certifying to the Accounts Officer that the conditions have been fulfilled. Loans to State Governments and Local Administration of UTs are excluded from this rule.<\/span><\/li>\n <\/ul>\n\n <p class=\"sec-h\">Sub-rule (2) \u2014 Key UC Provisions<\/p>\n <div class=\"box-blue\">\n <div class=\"box-blue-lbl\">\ud83d\udccc UC Rules for Loans \u2014 Key Points<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccb<\/span><span><strong>(i) Form:<\/strong> UC shall be furnished in <strong>Form GFR 12-B<\/strong> at intervals agreed between the Audit\/Accounts Officer and the Ministry\/Department.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccb<\/span><span><strong>(ii) Mandatory UC:<\/strong> A Certificate of Utilisation shall be furnished to the Accounts Officer in <strong>every case of loan made for specific purposes<\/strong>, even if no conditions are specifically attached to the grant. <strong>Not required<\/strong> where loan is not for a specific purpose\/object but is a temporary financial aid, or where loans to PSUs are for financing approved capital outlays.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccb<\/span><span><strong>(iii)\/(iv):<\/strong> Where detailed accounts are maintained by Accounts Office \u2192 UC for each individual case by sanctioning authority. Where accounts are maintained departmentally \u2192 <strong>consolidated UC<\/strong> furnished to Audit by Ministries\/Departments for total loans disbursed during each year (year-wise and object-wise break-up; sub-head-wise for Accounts Officer verification). Loans to individuals are excluded.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcc5<\/span><span><strong>(v) Target date:<\/strong> UCs shall be furnished within a reasonable time. Target date: <strong>not later than 18 months from the date of sanction of the loan<\/strong>. <span class=\"tag-red\">\u2757 UC within 18 months of sanction<\/span><\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcc5<\/span><span><strong>(vi) Consolidated UC:<\/strong> Where accounts are maintained departmentally, the 18-month period shall be reckoned from the <strong>expiry of the financial year in which the loans are disbursed<\/strong>. Therefore, consolidated UCs in respect of loans paid each year shall be furnished <strong>not later than September of the second succeeding financial year<\/strong>. <span class=\"tag-red\">\u2757 Consolidated UC by Sept of 2nd succeeding FY<\/span><\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcc5<\/span><span><strong>(vii):<\/strong> Due dates for UC submission shall be specified in the <strong>letter of sanction for loan<\/strong>. Extension only in very exceptional circumstances <strong>in consultation with MoF<\/strong> under intimation to Audit\/Accounts Officer. <strong>No further loans shall be sanctioned<\/strong> unless the sanctioning authority is satisfied about proper utilisation of earlier loans.<\/span><\/li>\n <\/ul>\n <\/div>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch9r257\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 257<\/span><span class=\"rule-title\">Loans Drawn in Instalments \u2014 Each Treated Separately<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>When a loan is drawn in instalments, <strong>each instalment shall be treated as a separate loan<\/strong> for purposes of repayment of principal and payment of interest \u2014 unless the various instalments drawn during a FY are <strong>consolidated into a single loan at the end of that FY<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcb0<\/span><span>In case of consolidation: <strong>simple interest at the prescribed rate<\/strong> on the various loan instalments from the date of drawal of each instalment to the date of their consolidation shall be separately payable by the borrower.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcc5<\/span><span>Repayment and interest shall be arranged <strong>annually on or before the anniversary date<\/strong> of drawal or consolidation of the loan. Sanctioning authority may allow a moratorium towards repayment of principal \u2014 but <strong>not for payment of interest<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>If there is undue delay on the part of the debtor in taking out the last instalment, the sanctioning authority may at any time <strong>declare the loan closed and order repayment to begin<\/strong>. The Accounts Officer shall bring any such delay to notice.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch9r258\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 258<\/span><span class=\"rule-title\">Defaults in Payment \u2014 Penal Interest<\/span><\/div>\n\n <p class=\"sec-h\">Sub-rule (1) \u2014 Penal Interest Rate<\/p>\n <div class=\"box-red\">\n <div class=\"box-red-lbl\">\u26d4 Default and Penal Interest \u2014 Rule 258(1)<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>For <strong>State\/UT Governments, wholly Govt-owned companies and PSUs:<\/strong> Loan sanctions\/undertakings\/agreements shall invariably include provision for <strong>levy of penal interest<\/strong> on overdue instalments.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>For <strong>all other cases:<\/strong> Sanctions\/agreements shall invariably stipulate a <strong>higher rate of interest<\/strong> with provision for a <strong>lower rate for punctual payments<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\u26a0\ufe0f<\/span><span>The penal\/higher rate of interest shall not, except under special orders of Government, be <strong>less than 2.5% per annum above the normal rate<\/strong>. <span class=\"tag-red\">\u2757 Minimum penal rate = normal + 2.5% p.a.<\/span><\/span><\/li>\n <\/ul>\n <\/div>\n\n <p class=\"sec-h\">Sub-rule (2) \u2014 Reporting of Default<\/p>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>Any <strong>default in payment of interest or repayment of principal<\/strong> shall be <strong>promptly reported by the Accounts Officer<\/strong> to the authority which sanctioned the loan (only for loans whose detailed accounts are kept by that Accounts Officer).<\/span><\/li>\n <\/ul>\n\n <p class=\"sec-h\">Sub-rule (3) \u2014 Interest-free and Concessional Rate Loans<\/p>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>(i) Interest-free loans<\/strong> (e.g., to technical educational institutions for hostels): Sanction letter shall provide that in the event of any default in repayment, <strong>interest at rates prescribed by Government<\/strong> will be chargeable.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>(ii) Concessional rate loans:<\/strong> The concession (difference between normal and concessional rate) shall be made <strong>conditional upon prompt repayments of principal and interest<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>(iii)<\/strong> Where subsidy is also provided along with interest-free loans, the sanction letter shall provide that in the event of default, the defaulted dues shall be <strong>recovered out of the subsidy payable<\/strong>.<\/span><\/li>\n <\/ul>\n\n <p class=\"sec-h\">Sub-rule (4) \u2014 Action on Default<\/p>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccb<\/span><span>On receipt of a default report, the authority concerned shall immediately take steps to <strong>get the default remedied<\/strong> and consider enforcement of penal\/higher rate of interest. Where the sanctioning authority is satisfied that penal\/higher interest need not be recovered, the borrower shall ordinarily be asked to pay interest at the <strong>normal rate on the overdue amount from the due date to the date of settlement<\/strong>. Recovery of additional interest shall <strong>not be waived except in special circumstances or where the period of default is very short (e.g., a few days)<\/strong>.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch9r259\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 259<\/span><span class=\"rule-title\">Irrecoverable Loans \u2014 Write-Off<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>A competent authority, after <strong>prior approval of the Ministry of Finance<\/strong>, may <strong>remit or write off any loans<\/strong> owing to their irrecoverability or otherwise. <span class=\"tag-red\">\u2757 Write-off of loans \u2192 prior MoF approval<\/span><\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch9r260\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rules 260\u2013261<\/span><span class=\"rule-title\">Accounts, Control and Audit<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udcca<\/span><span><strong>R.260:<\/strong> Detailed accounts of loans to Institutions and Organisations shall be <strong>maintained by the Accounts Officer<\/strong> who shall watch their recovery and see that the conditions attached to each loan are fulfilled (subject to directions of CAG).<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>R.261:<\/strong> The instructions in Chapter 9 relating to <strong>cost of audit of Grants-in-aid<\/strong> are applicable <em>mutatis mutandis<\/em> to loans as well.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch9r262\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 262<\/span><span class=\"rule-title\">Annual Returns \u2014 Form GFR-13 by 30 September<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udcc5<\/span><span>Each <strong>Principal Accounts Officer<\/strong> shall submit to the concerned Ministry\/Department a statement in <strong>Form GFR-13<\/strong> showing details of outstanding Central Loans borne on his books as on <strong>31st March each year<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcc5<\/span><span>This statement shall be submitted <strong>not later than the following 30th September<\/strong>. <span class=\"tag-red\">\u2757 Form GFR-13 by 30 September<\/span><\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccb<\/span><span>Statement shall indicate: aggregate outstanding balance of loans \u00b7 details of defaults in repayment of principal and\/or interest \u00b7 earliest period to which the default pertains \u2014 against each State\/UT Government, foreign Government, Railways\/Posts funds, Central PSUs and other Govt Institutions. Where detailed accounts are not maintained by the Accounts Office, the statement shall contain departmental authority-wise aggregate balances.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch9r263\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 263<\/span><span class=\"rule-title\">Annual Assessment Report \u2014 FA to MoF by 30 June<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udcc5<\/span><span><strong>Sub-rule (1):<\/strong> Administrative Ministries shall keep watch over the receipt of Annual Statements in <strong>Form GFR-20<\/strong> from the Accounts Officer. They shall conduct a close review of defaults in repayment of principal and\/or interest and take suitable measures for enforcing repayments. If statements not received in time, the <strong>Accounts Officer shall be reminded promptly<\/strong>. Ministries may also maintain centrally a list of all loan sanctions.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcc5<\/span><span><strong>Sub-rule (2) \u2014 Annual Assessment Report:<\/strong> A copy of the Annual Assessment Report on status of all outstanding loans (including timely and accurate payment of principal and interest due) shall be submitted by the <strong>Financial Adviser of the Administrative Ministry<\/strong> to the <strong>Ministry of Finance by 30th June of each financial year<\/strong>. <span class=\"tag-red\">\u2757 FA submits Annual Assessment Report to MoF by 30 June<\/span><\/span><\/li>\n <\/ul>\n <\/div>\n\n \n <div class=\"box-amber\" style=\"margin-top:36px\">\n <div class=\"box-amber-lbl\">\u2b50 Key Numbers at a Glance \u2014 Loans (Rules 246\u2013263)<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>Nodal division for loan terms: <strong>Budget Division, DEA, MoF<\/strong> (R.247)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>Every sanction must certify <strong>MoF approval for interest rate and repayment period<\/strong> (R.248)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>Modification to loan terms \u2192 <strong>prior MoF concurrence<\/strong> (R.249)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>Maximum loan term: <strong>30 years<\/strong> (R.250(1)(i))<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>Early payment \u226414 days before due date \u2192 <strong>full period interest<\/strong> payable (R.250(1)(iv))<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>Due date on holiday \u2192 next working day; except 31 March \u2192 <strong>preceding working day<\/strong> (R.250(1)(v))<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>Advance notice to loanees: <strong>Form GFR-19, ~1 month before due date<\/strong>; omission no excuse (R.250(1)(viii))<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>Security for loans (non-State\/UT\/wholly Govt co.): <strong>\u226533\u2153% above loan amount<\/strong> (R.255)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>Concession on interest rate: take form of <strong>direct subsidy<\/strong>, not reduced rate (R.253(1))<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>Form <strong>GFR-15<\/strong> \u2192 undertaking for wholly Govt-owned companies (R.253(2))<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>Form <strong>GFR-32<\/strong> \u2192 no-hypothecation undertaking for wholly Govt-owned companies \u00b7 <strong>No stamp duty<\/strong> (R.254)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>Moratorium: may be allowed for <strong>principal only<\/strong>; <strong>not for interest<\/strong> (R.252(3), R.257)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>Interest formula: <strong>Days \u00d7 Rate \u00f7 365<\/strong> (366 leap year) \u00b7 Interest for day of payment, NOT day of repayment (R.251)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>UC for loans: <strong>Form GFR 12-B<\/strong> \u00b7 Target: <strong>18 months from sanction<\/strong> \u00b7 Consolidated UC: <strong>by September of 2nd succeeding FY<\/strong> (R.256)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>No further loans until sanctioning authority is satisfied about <strong>proper utilisation of earlier loans<\/strong> (R.256(2)(vii))<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>Penal interest: minimum <strong>normal rate + 2.5% p.a.<\/strong> (R.258(1))<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>Default reported <strong>promptly by Accounts Officer<\/strong> to sanctioning authority (R.258(2))<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>Write-off of irrecoverable loans \u2192 <strong>prior MoF approval<\/strong> (R.259)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>Annual returns: <strong>Form GFR-13<\/strong> by each PAO \u00b7 by <strong>30 September<\/strong> for position as on 31 March (R.262)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>Annual Assessment Report: <strong>FA \u2192 MoF by 30 June<\/strong> \u00b7 Review against <strong>Form GFR-20<\/strong> (R.263)<\/span><\/li>\n <\/ul>\n <\/div>\n <\/div>\n\n\n <div id=\"ch10\" class=\"ch-block\">\n\n <div class=\"ch-banner\">\n <div class=\"ch-num\">Chapter 10<\/div>\n <div class=\"ch-title\">Budgeting and Accounting of Externally Aided Projects<\/div>\n <div class=\"ch-range\">Rules 264 to 274 \u00b7 Sources \u00b7 Withdrawal Procedures \u00b7 Fund Flow \u00b7 Repayment & Interest<\/div>\n <\/div>\n\n \n <div class=\"idx-outer\">\n <div class=\"idx-lbl\">Rules at a Glance<\/div>\n <table class=\"idx-table\">\n <thead><tr><th style=\"width:110px\">Rule No.<\/th><th>Rule Title<\/th><th>Key Point<\/th><\/tr><\/thead>\n <tbody>\n <tr><td class=\"r-num\">Rule 264<\/td><td class=\"r-title\">Implementation Through External Aid \u2014 Framework<\/td><td class=\"r-key\">Shown in Budget annually \u00b7 Bilateral (Govt-to-Govt) and Multilateral (World Bank etc.) sources \u00b7 DEA executes legal agreements \u00b7 CAAA implements financial covenants \u00b7 Copy of all agreements to CAAA<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 265<\/td><td class=\"r-title\">Currency of External Aid<\/td><td class=\"r-key\">Foreign currency or Indian Rupees \u00b7 Received by RBI Mumbai \u00b7 Rupee equivalent to CAAA account at RBI New Delhi \u00b7 Accounted as external loan\/grant in Consolidated Fund of India<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 266<\/td><td class=\"r-title\">Accounting of Cash Grants<\/td><td class=\"r-key\">Cash grants (not commodity\/in-kind) accounted only by CAAA, DEA<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 267(1)<\/td><td class=\"r-title\">Reimbursement Procedure<\/td><td class=\"r-key\">PIA spends first, claims later \u00b7 Special Account (Revolving Fund): Funding Agency provides 4-month estimated advance; CAAA replenishes \u00b7 Reimbursement outside Special Account: CAAA sends claims directly to Funding Agency<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 267(2)<\/td><td class=\"r-title\">Direct Payment Procedure<\/td><td class=\"r-key\">Funding Agency pays contractor\/supplier\/consultant directly \u00b7 CAAA recovers Rupee equivalent from PIA\/State Govts<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 268<\/td><td class=\"r-title\">Fund Flow for State Projects<\/td><td class=\"r-key\">State provides budget provision \u00b7 Under Reimbursement: CAAA consolidates State-wise \u2192 Plan Finance Div \u2192 IG Advice \u2192 RBI credits State account \u00b7 Under Direct Payment: CAAA works out Rupee equivalent (RBI buying rate on value date) \u2192 Plan Finance Div sanctions release & simultaneous recovery<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 269<\/td><td class=\"r-title\">Fund Flow for Central \/ CSS Projects<\/td><td class=\"r-key\">EAP funds under separate budget head \u00b7 Ministry\/Dept releases funds to PIA within 6 weeks of expenditure incurred<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 270<\/td><td class=\"r-title\">Fund Flow for PSUs \/ Financial Institutions<\/td><td class=\"r-key\">Admin Ministry provides funds in budget \u00b7 PIA submits claims to CAAA \u00b7 Ministry releases after CAAA certification \u00b7 If PSU negotiates loan directly \u2192 funds flow directly to that entity<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 271<\/td><td class=\"r-title\">Repayment of Loans<\/td><td class=\"r-key\">CAAA responsible for prompt repayment on due date \u00b7 Through designated Public Sector Commercial Banks and RBI \u00b7 Classified as charged expenditure \u00b7 Further on-lent amounts \u2192 recovery by respective Ministry\/Dept<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 272<\/td><td class=\"r-title\">Interest Payments<\/td><td class=\"r-key\">On due date as per agreement \u00b7 Debited under Major Head '2049-Interest Payments' in CF \u00b7 Classified as charged expenditure<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 273<\/td><td class=\"r-title\">Accounting of Exchange Variation<\/td><td class=\"r-key\">Exchange variation on fully repaid loans \u2192 adjusted\/written off to '8680-Miscellaneous Government Accounts' as per GAR and CGA procedures<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 274<\/td><td class=\"r-title\">Aid in Form of Materials and Equipment<\/td><td class=\"r-key\">Funding Agency advises Ministry of materials supplied with value \u00b7 Ministry intimates CAAA for budget provision \u00b7 Under Major Head '3606-Aid Materials and Equipment'<\/td><\/tr>\n <\/tbody>\n <\/table>\n <\/div>\n\n \n <div style=\"background:#f0f4ff;border-left:5px solid #1a3a6b;padding:10px 18px;border-radius:0 6px 6px 0;margin:10px 0;font-weight:700;color:#1a3a6b;font-size:14px;letter-spacing:.04em;text-transform:uppercase\">Framework and Sources of External Aid \u2014 Rules 264\u2013266<\/div>\n\n \n <div class=\"rule-block\" id=\"ch10r264\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 264<\/span>\n <span class=\"rule-title\">Implementation of Projects through External Aid \u2014 Four Sub-rules<\/span>\n <\/div>\n\n <div class=\"sec-h\">Sub-rule (1) \u2014 Shown in Annual Budget<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83c\udfdb\ufe0f<\/span><span>The projects or schemes of the Government of India to be implemented through external aid shall be <strong>shown in the budget proposals approved annually by Parliament<\/strong>.<\/span><\/li>\n <\/ul>\n\n <div class=\"sec-h\">Sub-rule (2) \u2014 Two Sources of External Aid<\/div>\n <div class=\"box-blue\">\n <div class=\"box-blue-lbl\">\ud83d\udccc Bilateral vs Multilateral Aid<\/div>\n <table style=\"width:100%;border-collapse:collapse;font-size:14px;margin-top:6px\">\n <thead>\n <tr style=\"background:#1a3a6b;color:#fff\">\n <th style=\"padding:8px 12px;text-align:left\">Type<\/th>\n <th style=\"padding:8px 12px;text-align:left\">Description<\/th>\n <th style=\"padding:8px 12px;text-align:left\">Agreement Type<\/th>\n <\/tr>\n <\/thead>\n <tbody>\n <tr style=\"background:#f0f6ff;border-bottom:1px solid #d0dcef\">\n <td style=\"padding:8px 12px\"><strong>Bilateral<\/strong><\/td>\n <td style=\"padding:8px 12px\">One country funds specific project(s) of another country<\/td>\n <td style=\"padding:8px 12px\"><strong>Government-to-Government agreement<\/strong><\/td>\n <\/tr>\n <tr style=\"background:#e8f0ff\">\n <td style=\"padding:8px 12px\"><strong>Multilateral<\/strong><\/td>\n <td style=\"padding:8px 12px\">Multi-lateral Funding Agencies \u2014 e.g. <strong>World Bank<\/strong><\/td>\n <td style=\"padding:8px 12px\">Agreement between <strong>borrower (GoI)<\/strong> and the Multilateral Funding Agency<\/td>\n <\/tr>\n <\/tbody>\n <\/table>\n <\/div>\n\n <div class=\"sec-h\">Sub-rule (3) \u2014 Who Executes Legal Agreements<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udcdc<\/span><span>The <strong>Department of Economic Affairs (DEA), Ministry of Finance<\/strong> as the <strong>nodal agency<\/strong> shall execute the legal agreement for loans or grants from external funding agencies.<\/span><\/li>\n <li><span class=\"bi\">\u2705<\/span><span><strong>Exception:<\/strong> Grant agreements for <strong>Technical Assistance<\/strong> can also be executed by the <strong>beneficiary Ministries or Departments with the approval of DEA, MoF<\/strong>.<\/span><\/li>\n <\/ul>\n\n <div class=\"sec-h\">Sub-rule (4) \u2014 Role of Controller of Aid Accounts and Audit (CAAA)<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83c\udfe6<\/span><span>The <strong>Office of the Controller of Aid Accounts and Audit (CAAA)<\/strong> in the Department of Economic Affairs, MoF shall be responsible for <strong>implementing the financial covenants<\/strong> laid down in the agreements.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccb<\/span><span>A <strong>copy of all such agreements<\/strong> shall be sent to the Office of CAAA, DEA for this purpose.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch10r265\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 265<\/span>\n <span class=\"rule-title\">Currency of External Aid \u2014 Flow of Funds<\/span>\n <\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udcb1<\/span><span>External aid shall flow from the Funding Agency in <strong>foreign currency or Indian Rupees<\/strong> and shall be <strong>received by the Reserve Bank of India, Mumbai<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udd04<\/span><span>RBI Mumbai shall remit the <strong>Rupee equivalent to the account of Controller, Aid Accounts and Audit, DEA at RBI New Delhi<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcd2<\/span><span>The remittances shall be accounted as <strong>external loan \/ Grant receipts in the Consolidated Fund of India<\/strong>.<\/span><\/li>\n <\/ul>\n <div class=\"box-blue\">\n <div class=\"box-blue-lbl\">\ud83d\udccc Flow of External Aid<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\u27a1\ufe0f<\/span><span><strong>Funding Agency \u2192 RBI Mumbai<\/strong> (foreign currency\/INR) \u2192 <strong>Rupee equivalent \u2192 CAAA account at RBI New Delhi<\/strong> \u2192 Credited as external loan\/grant in <strong>Consolidated Fund of India<\/strong><\/span><\/li>\n <\/ul>\n <\/div>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch10r266\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 266<\/span>\n <span class=\"rule-title\">Accounting of Cash Grants<\/span>\n <\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udcb0<\/span><span><strong>Cash grants<\/strong> \u2014 as distinct from commodity grants or other assistance in kind received from external sources \u2014 shall be <strong>accounted for only by the office of Controller of Aid Accounts and Audit, Department of Economic Affairs<\/strong>.<\/span><\/li>\n <\/ul>\n <div class=\"box-amber\">\n <div class=\"box-amber-lbl\">\u2b50 Cash Grant vs In-Kind Aid<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udcb5<\/span><span><strong>Cash Grants:<\/strong> Accounted exclusively by CAAA, DEA (Rule 266)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udce6<\/span><span><strong>Aid in form of Materials\/Equipment:<\/strong> Ministry is intimated by Funding Agency; Ministry then intimates CAAA for budget provision (Rule 274)<\/span><\/li>\n <\/ul>\n <\/div>\n <\/div>\n\n \n <div style=\"background:#e8f0ff;border-left:5px solid #1a3a6b;padding:10px 18px;border-radius:0 6px 6px 0;margin:44px 0 10px;font-weight:700;color:#1a3a6b;font-size:14px;letter-spacing:.04em;text-transform:uppercase\">Withdrawal Procedures \u2014 Rule 267<\/div>\n\n \n <div class=\"rule-div\" style=\"margin-top:8px\"><\/div>\n <div class=\"rule-block\" id=\"ch10r267\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 267<\/span>\n <span class=\"rule-title\">Two Procedures for Withdrawal of Funds<\/span>\n <\/div>\n <p style=\"margin-bottom:13px;color:#444;font-size:15px\">Administrative Ministries\/Departments must make provision of funds under the relevant head of account as <strong>'External Aided Component'<\/strong> in their Detailed Demands for Grants. There are two main procedures for withdrawal:<\/p>\n\n <div class=\"sec-h\">Sub-rule (1) \u2014 Reimbursement Procedure<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udd04<\/span><span>Under the reimbursement procedure, the <strong>Project Implementing Agency (PIA) shall initially spend or incur expenditure<\/strong> and subsequently claim the amount from the Funding Agency through the office of the CAAA.<\/span><\/li>\n <\/ul>\n <div class=\"box-blue\">\n <div class=\"box-blue-lbl\">\u26a0\ufe0f Two Types of Reimbursement<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">1\ufe0f\u20e3<\/span><span><strong>Reimbursement through Special Account (Revolving Fund Scheme):<\/strong>\n <ul style=\"margin-top:6px;list-style:none;padding:0\">\n <li style=\"padding:4px 0 4px 12px;border-left:3px solid #4a90d9\">Funding Agency disburses estimated expenditure of <strong>4 months<\/strong> as an initial advance to GoI after loan is declared effective. <span class=\"tag-red\">\u2757 4-month advance<\/span><\/li>\n <li style=\"padding:4px 0 4px 12px;border-left:3px solid #4a90d9\">Initial deposit (in US Dollars) \u2192 received by RBI Mumbai \u2192 Rupee equivalent passed to CAAA via Government Foreign Transaction (GFT) advice.<\/li>\n <li style=\"padding:4px 0 4px 12px;border-left:3px solid #4a90d9\">On receipt of reimbursement claims from PIA, CAAA advises RBI Mumbai to <strong>debit the Special Account<\/strong> with US Dollar equivalent of the eligible claim.<\/li>\n <li style=\"padding:4px 0 4px 12px;border-left:3px solid #4a90d9\">CAAA consolidates all claims and submits to Funding Agency for <strong>replenishment<\/strong> of Special Account, along with a statement of debits and credits by RBI Mumbai and supporting documents from PIA.<\/li>\n <\/ul>\n <\/span><\/li>\n <li><span class=\"bi\">2\ufe0f\u20e3<\/span><span style=\"margin-top:8px;display:block\"><strong>Reimbursement outside Special Account:<\/strong>\n <ul style=\"margin-top:6px;list-style:none;padding:0\">\n <li style=\"padding:4px 0 4px 12px;border-left:3px solid #4a90d9\">Used where <strong>no Special Account provision in the agreement<\/strong> or when the balance in the Special Account is 'Nil'.<\/li>\n <li style=\"padding:4px 0 4px 12px;border-left:3px solid #4a90d9\">CAAA sends reimbursement claims received from PIA <strong>directly to the Funding Agency<\/strong> after checking eligibility.<\/li>\n <li style=\"padding:4px 0 4px 12px;border-left:3px solid #4a90d9\">Funding Agency disburses eligible amount to borrower's account with RBI Mumbai \u2192 Rupee equivalent passed to CAAA at RBI New Delhi via GFT advice.<\/li>\n <\/ul>\n <\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"sec-h\">Sub-rule (2) \u2014 Direct Payment Procedure<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\u27a1\ufe0f<\/span><span>Under this procedure, the Funding Agency \u2014 on the request of the PIA (received through CAAA) and duly supported by relevant documents \u2014 <strong>directly pays the contractor, supplier or consultant<\/strong> from the loan\/credit\/grant account.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udce2<\/span><span>The Funding Agency apprises <strong>both CAAA and the PIA<\/strong> of the particulars of the payment made.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcb1<\/span><span>CAAA shall work out the <strong>Rupee equivalent<\/strong> of the foreign currency payment and <strong>recover this Rupee equivalent from the PIAs or State Governments<\/strong> which availed of the Direct Payment Procedure.<\/span><\/li>\n <\/ul>\n <div class=\"box-amber\">\n <div class=\"box-amber-lbl\">\u2b50 Reimbursement vs Direct Payment \u2014 Key Difference<\/div>\n <table style=\"width:100%;border-collapse:collapse;font-size:14px;margin-top:6px\">\n <thead>\n <tr style=\"background:#c9a227;color:#1a3400\">\n <th style=\"padding:8px 12px;text-align:left\">Feature<\/th>\n <th style=\"padding:8px 12px;text-align:left\">Reimbursement<\/th>\n <th style=\"padding:8px 12px;text-align:left\">Direct Payment<\/th>\n <\/tr>\n <\/thead>\n <tbody>\n <tr style=\"background:#fffdf0;border-bottom:1px solid #e8e0c0\">\n <td style=\"padding:8px 12px\"><strong>Who pays first?<\/strong><\/td>\n <td style=\"padding:8px 12px\">PIA pays first, then claims back<\/td>\n <td style=\"padding:8px 12px\">Funding Agency pays directly<\/td>\n <\/tr>\n <tr style=\"background:#fff8e8;border-bottom:1px solid #e8e0c0\">\n <td style=\"padding:8px 12px\"><strong>Paid to whom?<\/strong><\/td>\n <td style=\"padding:8px 12px\">GoI\/PIA's account<\/td>\n <td style=\"padding:8px 12px\">Contractor\/Supplier\/Consultant directly<\/td>\n <\/tr>\n <tr style=\"background:#fffdf0\">\n <td style=\"padding:8px 12px\"><strong>Rupee equivalent<\/strong><\/td>\n <td style=\"padding:8px 12px\">Credited to CAAA via GFT advice<\/td>\n <td style=\"padding:8px 12px\">Recovered by CAAA from PIA\/State Govt<\/td>\n <\/tr>\n <\/tbody>\n <\/table>\n <\/div>\n <\/div>\n\n \n <div style=\"background:#f0faf5;border-left:5px solid #2aab6e;padding:10px 18px;border-radius:0 6px 6px 0;margin:44px 0 10px;font-weight:700;color:#1a6b5a;font-size:14px;letter-spacing:.04em;text-transform:uppercase\">Fund Flow \u2014 Rules 268\u2013270<\/div>\n\n \n <div class=\"rule-div\" style=\"margin-top:8px\"><\/div>\n <div class=\"rule-block\" id=\"ch10r268\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 268<\/span>\n <span class=\"rule-title\">Fund Flow for State Projects financed from External Aid<\/span>\n <\/div>\n\n <div class=\"sec-h\">Sub-rule (1) \u2014 State Budget Provision<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83c\udfdb\ufe0f<\/span><span>Respective Departments of the State Government shall provide in the Budget the expenditure proposed to be incurred under <strong>Plan Schemes<\/strong> during the financial year by PIAs under State projects financed from external aid sources.<\/span><\/li>\n <\/ul>\n\n <div class=\"sec-h\">Sub-rule (2) \u2014 Fund Flow under Reimbursement Procedure (State Projects)<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udd04<\/span><span>CAAA consolidates disbursements <strong>State-wise at periodical intervals<\/strong> under each loan\/credit \u2192 sends details to <strong>Plan Finance Division, Department of Expenditure, MoF<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccb<\/span><span>Plan Finance Division issues <strong>sanctions for actual release<\/strong> to respective State Governments. A copy is endorsed to the Finance Department of the concerned State.<\/span><\/li>\n <li><span class=\"bi\">\ud83c\udfe6<\/span><span>The office of the <strong>Chief Controller of Accounts, MoF<\/strong> issues an <strong>Inter-Government (IG) Advice to RBI, Central Accounts Section, Nagpur<\/strong> \u2014 the State Government's account at RBI, CAS Nagpur is credited, completing the fund flow cycle.<\/span><\/li>\n <\/ul>\n\n <div class=\"sec-h\">Sub-rule (3) \u2014 Fund Flow under Direct Payment Procedure (State Projects)<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udcb1<\/span><span>CAAA works out the Rupee equivalent of Direct Payments based on <strong>RBI buying rate applicable for the value date on which the Direct Payment was made<\/strong>. <span class=\"tag-amber\">\u2b50 RBI buying rate on value date<\/span><\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcca<\/span><span>CAAA consolidates disbursements State-wise and requests Plan Finance Division to release the amount to the State <strong>notionally and simultaneously recover the same<\/strong> for credit back to CAAA's account.<\/span><\/li>\n <li><span class=\"bi\">\ud83c\udfe6<\/span><span>The Chief Controller of Accounts, MoF advises RBI, CAS Nagpur to make necessary <strong>adjustment entries<\/strong> in the accounts of the concerned State \u2014 completing the Direct Payment fund flow cycle.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch10r269\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 269<\/span>\n <span class=\"rule-title\">Fund Flow for Central \/ Centrally Sponsored Projects<\/span>\n <\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83c\udfdb\ufe0f<\/span><span>Under Central or Centrally Sponsored Projects (CSS) financed from external aid, the disbursement process is the same as explained in <strong>Rule 267<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccb<\/span><span>The respective Ministry or Department gets <strong>EAP (Externally Aided Project) funds under a separate budget head<\/strong> when Demands for Grants are passed in Parliament and advised by the Budget Division, MoF.<\/span><\/li>\n <li><span class=\"bi\">\u23f0<\/span><span>The funds shall be released to the <strong>Project Implementing Agency within six weeks<\/strong> by the administrative Ministry or Department with reference to expenditure incurred by the PIA. <span class=\"tag-red\">\u2757 6 weeks for release<\/span><\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch10r270\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 270<\/span>\n <span class=\"rule-title\">Fund Flow for PSUs and Financial Institutions<\/span>\n <\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83c\udfed<\/span><span>When the PIA under a Loan\/Credit Agreement is a <strong>Public Sector or Financial Institution or Autonomous Body<\/strong> and GoI is the Borrower:\n <ul class=\"blist-sub\">\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span>The <strong>Administrative Ministry<\/strong> concerned provides in its budget funds required to be passed on to the PIA.<\/span><\/li>\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span>The PIA submits claims to CAAA under reimbursement or direct payment procedures.<\/span><\/li>\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span>The concerned Ministry\/Department <strong>releases the amount to PIA based on the certification of disbursement<\/strong> received from the Funding Agency, as certified by CAAA.<\/span><\/li>\n <\/ul>\n <\/span><\/li>\n <li><span class=\"bi\">\u2705<\/span><span><strong>Exception:<\/strong> Where the loan is <strong>negotiated directly by a PSU or Financial Institution<\/strong>, the funds from the Funding Agency shall <strong>flow directly to the borrowing entity<\/strong>.<\/span><\/li>\n <\/ul>\n <\/div>\n\n \n <div style=\"background:#fffbe6;border-left:5px solid #c9a227;padding:10px 18px;border-radius:0 6px 6px 0;margin:44px 0 10px;font-weight:700;color:#7a5500;font-size:14px;letter-spacing:.04em;text-transform:uppercase\">Repayment, Interest and Accounting \u2014 Rules 271\u2013274<\/div>\n\n \n <div class=\"rule-div\" style=\"margin-top:8px\"><\/div>\n <div class=\"rule-block\" id=\"ch10r271\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 271<\/span>\n <span class=\"rule-title\">Repayment of Loans<\/span>\n <\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udcc5<\/span><span>The <strong>CAAA shall be responsible for prompt repayment of principal on the due date<\/strong> as per the agreements.<\/span><\/li>\n <li><span class=\"bi\">\ud83c\udfe6<\/span><span>Remittance of foreign currency is arranged through <strong>designated Public Sector Commercial Banks and RBI<\/strong>. The Rupee equivalent of foreign currency remitted is debited to CAAA's account.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcd2<\/span><span>On receipt of the advice from RBI New Delhi, CAAA shall <strong>debit the concerned loan account in the Consolidated Fund of India<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\u26a0\ufe0f<\/span><span>The repayment of loans shall be classified as <strong>Charged Expenditure<\/strong>. <span class=\"tag-amber\">\u2b50 Charged expenditure<\/span><\/span><\/li>\n <li><span class=\"bi\">\ud83d\udd04<\/span><span>In cases where EAP funds are <strong>further passed on as loans<\/strong>, the <strong>recovery of the loan along with interest shall be the responsibility of the respective administrative Ministry or Department<\/strong>.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch10r272\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 272<\/span>\n <span class=\"rule-title\">Interest Payments on External Loans<\/span>\n <\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udcc5<\/span><span>Interest on external loans shall be paid <strong>on the due date<\/strong> as stipulated in the loan\/credit agreements against the <strong>budget provision made for this purpose<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcd2<\/span><span>Interest payments shall be accounted for as debit under <strong>Major Head '2049 \u2014 Interest Payments'<\/strong> for external loans in the Consolidated Fund of India. <span class=\"tag-amber\">\u2b50 MH 2049<\/span><\/span><\/li>\n <li><span class=\"bi\">\ud83d\udd04<\/span><span>The procedure for transfer of amount shall be the <strong>same as followed in the case of repayment of loans<\/strong> (Rule 271).<\/span><\/li>\n <li><span class=\"bi\">\u26a0\ufe0f<\/span><span>Interest payment shall be classified as <strong>Charged Expenditure<\/strong>.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch10r273\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 273<\/span>\n <span class=\"rule-title\">Accounting of Exchange Variation<\/span>\n <\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udcb1<\/span><span>The <strong>exchange variation in respect of foreign loans that have been fully repaid<\/strong> shall be adjusted and written off to <strong>\"8680 \u2014 Miscellaneous Government Accounts \u2014 Write off\"<\/strong> in terms of Government Accounting Rules and the procedures prescribed by <strong>CGA in consultation with CAG<\/strong>.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch10r274\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 274<\/span>\n <span class=\"rule-title\">Aid in Form of Materials and Equipment<\/span>\n <\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udce6<\/span><span>In cases where <strong>materials, equipment and other commodities \u2014 without involving any cash inflow<\/strong> \u2014 are received as aid from foreign countries, the <strong>Funding Agency issues an advice<\/strong> to the concerned Ministry or Department giving details of materials supplied along with the value thereof.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccb<\/span><span>The Ministry or Department concerned shall in turn <strong>intimate the details to CAAA, DEA for making the budget provision<\/strong> in regard to aid material or equipment.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcd2<\/span><span>Accounted under <strong>Major Head '3606 \u2014 Aid Materials and Equipment'<\/strong> \u2014 refer Para 4.8.1 of the Civil Accounts Manual for detailed adjustment procedure. <span class=\"tag-amber\">\u2b50 MH 3606<\/span><\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"box-amber\" style=\"margin-top:36px\">\n <div class=\"box-amber-lbl\">\u2b50 Key Players \u2014 Chapter 10 Quick Reference<\/div>\n <table style=\"width:100%;border-collapse:collapse;font-size:14px;margin-top:8px\">\n <thead>\n <tr style=\"background:#c9a227;color:#1a3400\">\n <th style=\"padding:8px 12px;text-align:left\">Player<\/th>\n <th style=\"padding:8px 12px;text-align:left\">Role<\/th>\n <\/tr>\n <\/thead>\n <tbody>\n <tr style=\"background:#fffdf0;border-bottom:1px solid #e8e0c0\">\n <td style=\"padding:8px 12px\"><strong>DEA (Nodal Agency)<\/strong><\/td>\n <td style=\"padding:8px 12px\">Executes legal agreements for loans\/grants \u00b7 TA grants by beneficiary Ministry with DEA approval<\/td>\n <\/tr>\n <tr style=\"background:#fff8e8;border-bottom:1px solid #e8e0c0\">\n <td style=\"padding:8px 12px\"><strong>CAAA<\/strong><\/td>\n <td style=\"padding:8px 12px\">Implements financial covenants \u00b7 Processes withdrawal claims \u00b7 Accounts cash grants \u00b7 Responsible for loan repayment \u00b7 Recovers Rupee equivalent from PIAs under Direct Payment<\/td>\n <\/tr>\n <tr style=\"background:#fffdf0;border-bottom:1px solid #e8e0c0\">\n <td style=\"padding:8px 12px\"><strong>RBI Mumbai<\/strong><\/td>\n <td style=\"padding:8px 12px\">Receives foreign currency\/INR from Funding Agency \u00b7 Maintains Special Account proforma \u00b7 Issues GFT advice<\/td>\n <\/tr>\n <tr style=\"background:#fff8e8;border-bottom:1px solid #e8e0c0\">\n <td style=\"padding:8px 12px\"><strong>RBI New Delhi<\/strong><\/td>\n <td style=\"padding:8px 12px\">CAAA's account maintained here \u00b7 Receives Rupee equivalent from Mumbai<\/td>\n <\/tr>\n <tr style=\"background:#fffdf0;border-bottom:1px solid #e8e0c0\">\n <td style=\"padding:8px 12px\"><strong>Plan Finance Div, DoE<\/strong><\/td>\n <td style=\"padding:8px 12px\">Issues sanctions for release of funds to State Governments<\/td>\n <\/tr>\n <tr style=\"background:#fff8e8;border-bottom:1px solid #e8e0c0\">\n <td style=\"padding:8px 12px\"><strong>CCA, MoF<\/strong><\/td>\n <td style=\"padding:8px 12px\">Issues Inter-Government (IG) Advice to RBI CAS Nagpur for State fund releases<\/td>\n <\/tr>\n <tr style=\"background:#fffdf0\">\n <td style=\"padding:8px 12px\"><strong>RBI CAS, Nagpur<\/strong><\/td>\n <td style=\"padding:8px 12px\">Credits State Government accounts on receipt of IG Advice<\/td>\n <\/tr>\n <\/tbody>\n <\/table>\n <\/div>\n\n <div class=\"box-amber\" style=\"margin-top:20px\">\n <div class=\"box-amber-lbl\">\u2b50 Numbers and Heads to Remember \u2014 Chapter 10<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>4-month advance<\/strong> \u2014 Initial advance under Revolving Fund (Special Account) Scheme (R.267)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>6 weeks<\/strong> \u2014 Ministry\/Dept must release EAP funds to PIA for Central\/CSS projects (R.269)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>RBI buying rate on value date<\/strong> \u2014 basis for Rupee equivalent calculation under Direct Payment for States (R.268)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>Major Head 2049<\/strong> \u2014 Interest payments on external loans in CF of India (R.272)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>Major Head 3606<\/strong> \u2014 Aid Materials and Equipment (R.274)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>Head 8680<\/strong> \u2014 Exchange variation on fully repaid foreign loans written off (R.273)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>Charged expenditure<\/strong> \u2014 both loan repayment (R.271) and interest payment (R.272)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>GFT Advice<\/strong> \u2014 Government Foreign Transaction advice used to transfer Rupee equivalent from RBI Mumbai to CAAA account at RBI New Delhi<\/span><\/li>\n <\/ul>\n <\/div>\n <\/div>\n\n <div id=\"ch11\" class=\"ch-block\">\n\n <div class=\"ch-banner\">\n <div class=\"ch-num\">Chapter 11<\/div>\n <div class=\"ch-title\">Government Guarantees<\/div>\n <div class=\"ch-range\">Rules 275 to 283 \u00b7 Power \u00b7 Objectives \u00b7 Guidelines \u00b7 Fees \u00b7 Execution \u00b7 Review \u00b7 Invocation<\/div>\n <\/div>\n\n \n <div class=\"idx-outer\">\n <div class=\"idx-lbl\">Rules at a Glance<\/div>\n <table class=\"idx-table\">\n <thead><tr><th style=\"width:110px\">Rule No.<\/th><th>Rule Title<\/th><th>Key Point<\/th><\/tr><\/thead>\n <tbody>\n <tr><td class=\"r-num\">Rule 275<\/td><td class=\"r-title\">Power to Give and Limits on Guarantees<\/td><td class=\"r-key\">Art.292 of Constitution \u00b7 Subject to FRBM Act limits \u00b7 Powers vest with Budget Division, DEA (including external borrowings)<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 276<\/td><td class=\"r-title\">Objectives of Government Guarantees<\/td><td class=\"r-key\">3 objectives \u2014 Improve project viability \u00b7 Enable PSUs to borrow at lower rates \u00b7 Fulfill precondition for concessional bilateral\/multilateral loans<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 277<\/td><td class=\"r-title\">Guidelines for Grant of GoI Guarantee (14 sub-clauses)<\/td><td class=\"r-key\">Must be justified in public interest \u00b7 FA consultation \u00b7 Risk assessment independently \u00b7 Budget Division, DEA approval mandatory \u00b7 Data in Form GFR-26 \u00b7 Principal + normal interest only \u00b7 Only to Central PSUs\/agencies \u00b7 NOT to private sector \u00b7 NOT for ECBs normally \u00b7 NOT for grants \u00b7 Not for low-priority objectives \u00b7 Not for financially strong CPSEs<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 278<\/td><td class=\"r-title\">Borrowings by CPSUs from Multilateral Agencies<\/td><td class=\"r-key\">Direct borrowings without GoI intermediation \u00b7 GoI guarantee \u2192 prior Budget Division approval \u00b7 Guarantee fee on principal outstanding \u00b7 GoI covers principal + normal interest only \u00b7 Exchange rate risk shared between borrower and lender<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 279<\/td><td class=\"r-title\">Levy of Guarantee Fees<\/td><td class=\"r-key\">Rates notified by Budget Division, DEA (Appendix-12) \u00b7 Levied before guarantee and every 1st April on outstanding amount \u00b7 Default \u2192 double the normal rate \u00b7 Guarantee limit normally 80% of project loan \u00b7 100% only in exceptional cases where entity discharges Govt function<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 280<\/td><td class=\"r-title\">Execution of Government Guarantees<\/td><td class=\"r-key\">Executed and monitored by Administrative Ministry \u00b7 Back-to-back agreement with borrower mandatory \u00b7 No inconsistency with MoF approval \u00b7 Deviations \u2192 separate case to Budget Division \u00b7 Must be executed in same financial year as approval \u00b7 Guarantee for specific purpose only \u00b7 Non-transferable \u00b7 FA maintains records and reports<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 281<\/td><td class=\"r-title\">Review of Guarantees<\/td><td class=\"r-key\">Annual review by FA \u00b7 Copy of review report to Budget Division by 30th April \u00b7 Register of guarantees in Form GFR-25 maintained by FA \u00b7 Updated data sent to Budget Division by 10th April \u00b7 6 categories of guarantee classification<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 282<\/td><td class=\"r-title\">Accounting for Guarantees<\/td><td class=\"r-key\">FRBM Rule 6 \u2192 disclosure statement in Receipt Budget \u00b7 Compiled by Admin Ministries \u2192 CGA \u2192 Budget Division \u00b7 Must tally with Detailed DFG and Finance Accounts \u00b7 Compliant with IGAS-1<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 283<\/td><td class=\"r-title\">Invocation of Guarantee<\/td><td class=\"r-key\">Guarantee Redemption Fund (GRF) in Public Account \u00b7 Funded through budgetary appropriations under DEA's DFG \u00b7 Admin Ministry to inform Budget Division in advance of likely invocation \u00b7 On invocation \u2192 sanction loan to borrower equal to guarantee outstanding \u00b7 Finally charged to GRF in Public Account<\/td><\/tr>\n <\/tbody>\n <\/table>\n <\/div>\n\n \n <div style=\"background:#f0f4ff;border-left:5px solid #1a3a6b;padding:10px 18px;border-radius:0 6px 6px 0;margin:10px 0;font-weight:700;color:#1a3a6b;font-size:14px;letter-spacing:.04em;text-transform:uppercase\">Power, Limits and Objectives \u2014 Rules 275\u2013276<\/div>\n\n \n <div class=\"rule-block\" id=\"ch11r275\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 275<\/span>\n <span class=\"rule-title\">Power to Give and Limits on Government Guarantees<\/span>\n <\/div>\n <div class=\"sec-h\">Sub-rule (1) \u2014 Constitutional and Statutory Basis<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\u2696\ufe0f<\/span><span>The power of the Union Government to give guarantees emanates from and is subject to such limits as may be fixed in terms of <strong>Article 292 of the Constitution of India<\/strong>, the <strong>Fiscal Responsibility and Budget Management (FRBM) Act<\/strong> and Rules framed thereunder.<\/span><\/li>\n <\/ul>\n <div class=\"sec-h\">Sub-rule (2) \u2014 FRBM Aggregate Limit<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udd12<\/span><span>In terms of the FRBM Act and Rules, the Central Government shall not give guarantees <strong>aggregating the amount prescribed therein<\/strong>. The FRBM sets a ceiling on the total outstanding guarantees at any time.<\/span><\/li>\n <\/ul>\n <div class=\"sec-h\">Sub-rule (3) \u2014 Who Holds the Power<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83c\udfdb\ufe0f<\/span><span>Powers to grant <strong>Government of India Guarantee, including those on external borrowings, vest with the Budget Division, Department of Economic Affairs (DEA)<\/strong>. <span class=\"tag-red\">\u2757 Budget Division, DEA<\/span><\/span><\/li>\n <\/ul>\n <div class=\"box-blue\">\n <div class=\"box-blue-lbl\">\ud83d\udccc Constitutional Basis \u2014 Art. 292<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\u2696\ufe0f<\/span><span><strong>Article 292:<\/strong> The executive power of the Union extends to the giving of guarantees upon the security of the Consolidated Fund of India within such limits, if any, as may be fixed by Parliament by law.<\/span><\/li>\n <\/ul>\n <\/div>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch11r276\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 276<\/span>\n <span class=\"rule-title\">Three Objectives of Government Guarantees<\/span>\n <\/div>\n <p style=\"margin-bottom:13px;color:#444;font-size:15px\">The sovereign guarantee is normally extended for the purpose of achieving the following <strong>three objectives<\/strong>:<\/p>\n <ul class=\"blist\">\n <li><span class=\"bi\">1\ufe0f\u20e3<\/span><span>To <strong>improve viability of projects or activities<\/strong> undertaken by central entities with significant social and economic benefits.<\/span><\/li>\n <li><span class=\"bi\">2\ufe0f\u20e3<\/span><span>To enable <strong>Central Public Sector companies to raise resources at lower interest charges<\/strong> or on more favourable terms.<\/span><\/li>\n <li><span class=\"bi\">3\ufe0f\u20e3<\/span><span>To fulfil the requirement in cases where <strong>sovereign guarantee is a precondition for concessional loans from bilateral\/multilateral agencies<\/strong> to Central Public Sector companies\/agencies.<\/span><\/li>\n <\/ul>\n <\/div>\n\n \n <div style=\"background:#e8f0ff;border-left:5px solid #1a3a6b;padding:10px 18px;border-radius:0 6px 6px 0;margin:44px 0 10px;font-weight:700;color:#1a3a6b;font-size:14px;letter-spacing:.04em;text-transform:uppercase\">Guidelines for Grant of GoI Guarantee \u2014 Rule 277<\/div>\n\n \n <div class=\"rule-div\" style=\"margin-top:8px\"><\/div>\n <div class=\"rule-block\" id=\"ch11r277\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 277<\/span>\n <span class=\"rule-title\">Guidelines for Grant of GoI Guarantee \u2014 14 Sub-clauses<\/span>\n <\/div>\n\n <div class=\"sec-h\">(i) Must Be Justified in Public Interest<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83c\udfdb\ufe0f<\/span><span>A proposal for guarantee must be <strong>justified in public interest<\/strong> \u2014 such as borrowings by Central Public Sector institutions for approved development purposes or borrowings by CPSUs from Banks for working capital and other purposes.<\/span><\/li>\n <\/ul>\n\n <div class=\"sec-h\">(ii) Examination \u2014 Four Considerations<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udd0d<\/span><span>The Administrative Ministry\/Department or Credit Divisions of DEA shall examine the proposal <strong>in consultation with the Financial Adviser<\/strong>, in the same manner as a proposal for loan. Four considerations:\n <ul class=\"blist-sub\">\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span><strong>(a)<\/strong> Public interest the guarantee is expected to serve<\/span><\/li>\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span><strong>(b)<\/strong> <strong>Credit worthiness of the borrower<\/strong> \u2014 to ensure no undue risk<\/span><\/li>\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span><strong>(c)<\/strong> Terms of the borrowing shall take into account the <strong>yields as applicable on Government paper of similar maturity<\/strong><\/span><\/li>\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span><strong>(d)<\/strong> Conditions prescribed in the guarantee order\/agreement to ensure continued credit worthiness<\/span><\/li>\n <\/ul>\n <\/span><\/li>\n <\/ul>\n\n <div class=\"sec-h\">(iii) Independent Risk Assessment \u2014 Mandatory<\/div>\n <div class=\"box-red\">\n <span style=\"font-size:18px;flex-shrink:0;margin-top:2px\">\u26a0\ufe0f<\/span>\n <span>Risk associated with assumption of a new contingent liability\/guarantee, including the <strong>probability of future payouts, shall be thoroughly assessed<\/strong>. This assessment should <strong>ideally be entrusted to an independent unit<\/strong> and should be undertaken even when a higher authority has already decided to provide guarantees. The assessment should reveal an accurate picture of the financial condition of the entity and risks of implementation, to estimate funds needed to meet contingent liabilities in current or future budgets.<\/span>\n <\/div>\n\n <div class=\"sec-h\">(iv) Budget Division, DEA Approval is Mandatory<\/div>\n <div class=\"box-red\">\n <span style=\"font-size:18px;flex-shrink:0;margin-top:2px\">\u26a0\ufe0f<\/span>\n <span>After examination, all proposals for extending guarantees shall be <strong>referred to Budget Division, DEA for approval. No guarantees shall be given without the approval of Budget Division, DEA.<\/strong> <span class=\"tag-red\">\u2757 Mandatory approval<\/span><\/span>\n <\/div>\n\n <div class=\"sec-h\">(v) Data in Form GFR-26<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccb<\/span><span>All Ministries\/Departments should furnish to MoF the <strong>data of certain operational parameters of the PSU or Entity in Form GFR-26<\/strong> along with the proposal. Where accounts have been audited by CAG, the effect of CAG comments on profitability should be brought out. Where BIFR targets or Cabinet directions have been assigned, <strong>actuals vis-\u00e0-vis targets for the preceding three years<\/strong> should be indicated.<\/span><\/li>\n <\/ul>\n\n <div class=\"sec-h\">What Guarantees Cover and Don't Cover \u2014 Sub-clauses (vi) to (xiv)<\/div>\n <div class=\"box-amber\">\n <div class=\"box-amber-lbl\">\u2b50 Guarantee Scope \u2014 What's IN and What's OUT<\/div>\n <table style=\"width:100%;border-collapse:collapse;font-size:14px;margin-top:6px\">\n <thead>\n <tr style=\"background:#c9a227;color:#1a3400\">\n <th style=\"padding:8px 12px;text-align:left\">\u2705 PERMITTED<\/th>\n <th style=\"padding:8px 12px;text-align:left\">\u274c NOT PERMITTED<\/th>\n <\/tr>\n <\/thead>\n <tbody>\n <tr style=\"background:#f0faf5;border-bottom:1px solid #c8e6c9\">\n <td style=\"padding:8px 12px\">Repayment of <strong>principal + normal interest<\/strong> only (vi)<\/td>\n <td style=\"padding:8px 12px\">Other risks beyond principal + normal interest (vi)<\/td>\n <\/tr>\n <tr style=\"background:#fff8e8;border-bottom:1px solid #c8e6c9\">\n <td style=\"padding:8px 12px\">Only to <strong>Central Public Sector companies\/agencies<\/strong> (vii)<\/td>\n <td style=\"padding:8px 12px\"><strong>Private sector<\/strong> \u2014 guarantees shall not be provided (viii)<\/td>\n <\/tr>\n <tr style=\"background:#f0faf5;border-bottom:1px solid #c8e6c9\">\n <td style=\"padding:8px 12px\">Soft loan components of bilateral\/multilateral aid (x)<\/td>\n <td style=\"padding:8px 12px\"><strong>External Commercial Borrowings<\/strong> \u2014 normally not (ix)<\/td>\n <\/tr>\n <tr style=\"background:#fff8e8;border-bottom:1px solid #c8e6c9\">\n <td style=\"padding:8px 12px\">Donor insists on performance guarantee for grants \u2192 as a negotiating condition only (xi)<\/td>\n <td style=\"padding:8px 12px\"><strong>Grants<\/strong> \u2014 GoI guarantee will not be given for grants (xi) \u00b7 <strong>Commercial loan components<\/strong> of bilateral\/multilateral aid (x)<\/td>\n <\/tr>\n <tr style=\"background:#f0faf5;border-bottom:1px solid #c8e6c9\">\n <td style=\"padding:8px 12px\">Appropriate conditions \u2014 guarantee fee, period, Govt board representation, mortgage\/lien, periodic reports, audit rights (xii)<\/td>\n <td style=\"padding:8px 12px\"><strong>Low-priority objectives<\/strong> or programmes (xiii)<\/td>\n <\/tr>\n <tr style=\"background:#fff8e8\">\n <td style=\"padding:8px 12px\">\u2014<\/td>\n <td style=\"padding:8px 12px\">CPSEs with <strong>strong financial credentials and high credit rating<\/strong> that can raise resources without Govt guarantee (xiv)<\/td>\n <\/tr>\n <\/tbody>\n <\/table>\n <\/div>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch11r278\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 278<\/span>\n <span class=\"rule-title\">Borrowings from Multilateral Agencies by Central PSUs<\/span>\n <\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83c\udf10<\/span><span><strong>(i)<\/strong> All borrowings from multilateral agencies by CPSUs would be <strong>direct (without GoI intermediation)<\/strong> on terms mutually agreed between borrower and lender and <strong>approved by Government of India<\/strong>. Where such terms involve GoI guarantee, <strong>prior approval of Budget Division, MoF<\/strong> must be obtained.<\/span><\/li>\n <li><span class=\"bi\">\u2705<\/span><span><strong>(ii)<\/strong> The borrowing should relate to <strong>Projects approved by the prescribed competent authority<\/strong> of the Central Government.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcb0<\/span><span><strong>(iii)<\/strong> Where GoI guarantee is given, the borrower shall enter into an agreement with GoI for the <strong>payment of guarantee fee on the principal amount of the loan drawn and loan outstanding<\/strong> from time to time.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udd12<\/span><span><strong>(iv)<\/strong> GoI Guarantee would only cover <strong>principal amount and normal interest<\/strong>. <strong>All other risks including exchange rate risk<\/strong> would be shared between the borrower and lender as per the loan agreement.<\/span><\/li>\n <\/ul>\n <\/div>\n\n \n <div style=\"background:#f0faf5;border-left:5px solid #2aab6e;padding:10px 18px;border-radius:0 6px 6px 0;margin:44px 0 10px;font-weight:700;color:#1a6b5a;font-size:14px;letter-spacing:.04em;text-transform:uppercase\">Guarantee Fees and Execution \u2014 Rules 279\u2013280<\/div>\n\n \n <div class=\"rule-div\" style=\"margin-top:8px\"><\/div>\n <div class=\"rule-block\" id=\"ch11r279\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 279<\/span>\n <span class=\"rule-title\">Levy of Guarantee Fees<\/span>\n <\/div>\n <div class=\"sec-h\">Sub-rule (1) \u2014 Rates and Applicability<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udcb0<\/span><span>Rates of fee on guarantees would be as <strong>notified by the Budget Division, DEA, MoF from time to time<\/strong> (rates given in Appendix-12). All Ministries\/Departments shall levy the prescribed fee in <strong>all cases<\/strong>, including <strong>non-fund based borrowings or credits<\/strong> (letters of credit, bank guarantees, etc.).<\/span><\/li>\n <\/ul>\n <div class=\"sec-h\">Sub-rule (2) \u2014 When and on What Amount<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udcc5<\/span><span>Guarantee fee should be levied:\n <ul class=\"blist-sub\">\n <li><span class=\"bsi\">1\ufe0f\u20e3<\/span><span><strong>Before the guarantee is given<\/strong>, and<\/span><\/li>\n <li><span class=\"bsi\">2\ufe0f\u20e3<\/span><span>Thereafter on <strong>1st April every year<\/strong>. <span class=\"tag-red\">\u2757 1st April annually<\/span><\/span><\/li>\n <\/ul>\n <\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcca<\/span><span>The rate of guarantee fee is applied on the <strong>amount outstanding at the beginning of the guarantee year<\/strong>.<\/span><\/li>\n <\/ul>\n <div class=\"sec-h\">Sub-rule (3) \u2014 Default in Payment<\/div>\n <div class=\"box-red\">\n <span style=\"font-size:18px;flex-shrink:0;margin-top:2px\">\u26a0\ufe0f<\/span>\n <span>Where the guarantee fee is <strong>not paid on the due date<\/strong>, fee should be charged at <strong>double the normal rates<\/strong> for the period of default. <span class=\"tag-red\">\u2757 2\u00d7 for default<\/span><\/span>\n <\/div>\n <div class=\"sec-h\">Sub-rule (4) \u2014 80% Cap on Guarantee + Exception<\/div>\n <div class=\"box-amber\">\n <div class=\"box-amber-lbl\">\u2b50 Guarantee Ceiling \u2014 80% Rule<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udcca<\/span><span>The Government may guarantee <strong>no more than 80%<\/strong> of the project loan, depending on conditions imposed by the lender. This incentivises lenders to conduct proper analysis and bear at least <strong>20% of net loss<\/strong> associated with any default. <span class=\"tag-red\">\u2757 Max 80%<\/span><\/span><\/li>\n <li><span class=\"bi\">\u2705<\/span><span><strong>Exception:<\/strong> In certain <strong>exceptional circumstances<\/strong>, GoI may guarantee <strong>100%<\/strong> of the financing where the organisation concerned is <strong>discharging some function on behalf of the Government of India<\/strong>.<\/span><\/li>\n <\/ul>\n <\/div>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch11r280\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 280<\/span>\n <span class=\"rule-title\">Execution of Government Guarantees<\/span>\n <\/div>\n <div class=\"sec-h\">Sub-rule (i) \u2014 Execution and Monitoring by Administrative Ministry<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83c\udfdb\ufe0f<\/span><span>Once approved by MoF, guarantees will be <strong>executed and monitored by the Administrative Ministries<\/strong> concerned, who are required to <strong>report the status annually<\/strong> till they are invoked or obliterated.<\/span><\/li>\n <\/ul>\n <p style=\"margin-bottom:10px;color:#444;font-size:14px;font-style:italic\">Key execution guidelines:<\/p>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccb<\/span><span><strong>(a) Back-to-Back Agreement:<\/strong> The Admin Ministry\/Department shall enter into a <strong>back-to-back agreement with the borrower<\/strong> to ensure servicing of loan, guarantee monitoring, and adherence to terms. Necessary records to monitor the guarantee, including guarantee fee servicing, shall be maintained by the Line Ministry.<\/span><\/li>\n <li><span class=\"bi\">\u26a0\ufe0f<\/span><span><strong>(b) Consistency:<\/strong> The Admin Ministry must ensure <strong>no inconsistency between the guarantee approval given by MoF and the guarantee agreement signed with the borrower<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcdd<\/span><span><strong>(c) Deviations\/Amendments:<\/strong> Deviations or modifications on main conditions of the guarantee should <strong>not be referred routinely to Budget Division<\/strong>. The Admin Ministry shall make out a <strong>separate case fully justifying the need<\/strong>, after thorough scrutiny, before placing before Budget Division for final decision.<\/span><\/li>\n <li><span class=\"bi\">\ud83c\udf10<\/span><span><strong>(d) Bilateral\/Multilateral Credit:<\/strong> Standard format of guarantee of lending institutions shall be examined to ensure they are <strong>not in contradiction with conditions prescribed in this chapter<\/strong>, before signing. New conditions or covenants and differences shall be referred to Budget Division, DEA for concurrence.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcc5<\/span><span><strong>(e) Same Financial Year:<\/strong> Guarantee proposals approved by Budget Division shall be <strong>executed in the same financial year<\/strong>. If the guarantee\/loan agreement is not signed in the same FY as approval, the <strong>proposal shall be submitted again<\/strong>. <span class=\"tag-red\">\u2757 Same FY execution<\/span><\/span><\/li>\n <li><span class=\"bi\">\ud83c\udfaf<\/span><span><strong>(f) Specific Purpose:<\/strong> Guarantee shall hold <strong>only for the specific purpose agreed to by Budget Division<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udd12<\/span><span><strong>(g) Non-Transferable:<\/strong> Guarantee given by GoI shall be <strong>non-transferable<\/strong> and would <strong>cease to exist<\/strong> in case the ownership of the entity is transferred from GoI, unless the Guarantee is <strong>re-confirmed by the Budget Division<\/strong>.<\/span><\/li>\n <\/ul>\n <div class=\"sec-h\">Sub-rule (ii) \u2014 Financial Adviser's Responsibility<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udc64<\/span><span>The <strong>Financial Advisers in Ministry\/Department<\/strong> will perform the responsibility of <strong>maintenance of records and reporting<\/strong> including for the Finance Accounts and the IGAS, through the office of Controller\/Chief Controller of Accounts.<\/span><\/li>\n <\/ul>\n <\/div>\n\n \n <div style=\"background:#fffbe6;border-left:5px solid #c9a227;padding:10px 18px;border-radius:0 6px 6px 0;margin:44px 0 10px;font-weight:700;color:#7a5500;font-size:14px;letter-spacing:.04em;text-transform:uppercase\">Review, Accounting and Invocation \u2014 Rules 281\u2013283<\/div>\n\n \n <div class=\"rule-div\" style=\"margin-top:8px\"><\/div>\n <div class=\"rule-block\" id=\"ch11r281\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 281<\/span>\n <span class=\"rule-title\">Review of Guarantees<\/span>\n <\/div>\n <div class=\"sec-h\">Sub-rule (1) \u2014 Annual Review<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udcc5<\/span><span>All Ministries\/Departments shall ensure that all guarantees are <strong>reviewed every year<\/strong>. The monitoring\/review should examine:\n <ul class=\"blist-sub\">\n <li><span class=\"bsi\">\u2705<\/span><span>Whether the borrower is <strong>discharging repayment and interest obligations<\/strong> as per terms<\/span><\/li>\n <li><span class=\"bsi\">\u2705<\/span><span>Whether repaying capacity is impaired in any manner<\/span><\/li>\n <li><span class=\"bsi\">\u2705<\/span><span>Whether <strong>all covenants and conditions<\/strong> are being followed<\/span><\/li>\n <\/ul>\n <\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccb<\/span><span>The <strong>Financial Advisers<\/strong> of the Ministries\/Departments should undertake these reviews. A copy of the review report (including on timely payment of guarantee fees) shall be forwarded by the FA to the <strong>Budget Division by 30th April every year<\/strong> for the previous financial year. <span class=\"tag-red\">\u2757 30th April deadline<\/span><\/span><\/li>\n <\/ul>\n <div class=\"sec-h\">Sub-rule (2) \u2014 Register of Guarantees \u2014 Form GFR-25<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udcd2<\/span><span>The FA shall ensure a <strong>Register of Guarantees in Form GFR-25<\/strong> is maintained for:\n <ul class=\"blist-sub\">\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span>Record of guarantees<\/span><\/li>\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span>Information required from time to time<\/span><\/li>\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span>Record of annual reviews<\/span><\/li>\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span>Record of <strong>levy and recovery of guarantee fee<\/strong><\/span><\/li>\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span>Data in Form GFR-25 sent to Budget Division, DEA by <strong>10th of April<\/strong> every year. <span class=\"tag-red\">\u2757 10th April deadline<\/span><\/span><\/li>\n <\/ul>\n <\/span><\/li>\n <\/ul>\n <div class=\"sec-h\">Sub-rule (3) \u2014 External Loan Guarantees by MoF<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83c\udfdb\ufe0f<\/span><span>In respect of guarantees issued by MoF for external loans, the respective <strong>credit divisions of DEA shall conduct an annual review<\/strong> in consultation with the FA (DEA). Report forwarded to Budget Division in <strong>Form GFR-25<\/strong>. Where guarantees on external loans are issued by the administrative Ministry, <strong>that Ministry is responsible for the review<\/strong>.<\/span><\/li>\n <\/ul>\n <div class=\"sec-h\">Sub-rule (4) \u2014 Six Classification Categories of Guarantees<\/div>\n <div class=\"box-blue\">\n <div class=\"box-blue-lbl\">\ud83d\udccb Six Categories of Government Guarantees<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">1\ufe0f\u20e3<\/span><span>Guarantees to <strong>RBI, banks and financial institutions<\/strong> for repayment of principal, interest, cash credit, seasonal agricultural operations and\/or working capital.<\/span><\/li>\n <li><span class=\"bi\">2\ufe0f\u20e3<\/span><span>Guarantees for <strong>repayment of share capital, minimum annual dividend, bonds or loans, debentures<\/strong> issued by statutory corporations and CPSUs.<\/span><\/li>\n <li><span class=\"bi\">3\ufe0f\u20e3<\/span><span>Guarantees in pursuance of agreements with <strong>international financial institutions, foreign lending agencies, foreign governments, contractors, suppliers, consultants<\/strong> \u2014 for repayment of principal, interest, commitment charges, or payment against supplies of materials and equipment.<\/span><\/li>\n <li><span class=\"bi\">4\ufe0f\u20e3<\/span><span><strong>Counter-guarantees to banks<\/strong> in consideration of banks having issued letters of credit or authority to foreign suppliers.<\/span><\/li>\n <li><span class=\"bi\">5\ufe0f\u20e3<\/span><span>Guarantees given to <strong>Railways<\/strong> for due and punctual payment of dues by Central Government companies or corporations.<\/span><\/li>\n <li><span class=\"bi\">6\ufe0f\u20e3<\/span><span><strong>Others<\/strong> \u2014 guarantees not covered under the above five classes.<\/span><\/li>\n <\/ul>\n <\/div>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch11r282\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 282<\/span>\n <span class=\"rule-title\">Accounting for Guarantees \u2014 FRBM Disclosure<\/span>\n <\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udcdc<\/span><span><strong>FRBM Rule 6 of 2004<\/strong> requires Government to publish a <strong>disclosure statement on guarantees given by Government<\/strong> at the time of presenting the Annual Financial Statement and Demands for Grants. This statement covers class and number of guarantees, amounts guaranteed, outstanding, invocations, guarantee fee payable, and other material details.<\/span><\/li>\n <\/ul>\n <div class=\"sec-h\">Process of Compilation and Publication<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udd04<\/span><span><strong>(i)<\/strong> Statement compiled by <strong>Administrative Ministries\/Departments \u2192 submitted to Controller General of Accounts \u2192 forwarded to Budget Division<\/strong>. Based on inputs, a <strong>Statement of Guarantees is published as an annexure in the Receipt Budget<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\u2705<\/span><span><strong>(ii)<\/strong> Ministries\/Departments must ensure and certify that amounts shown <strong>tally with the total figures in the Detailed Demands for Grants<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccb<\/span><span><strong>(iii)<\/strong> Ministries\/Departments must also certify that information tallies with the material furnished to CGA for the Finance Accounts and is <strong>compliant with Indian Government Accounting Standard-1 (IGAS-1) relating to Government Guarantees<\/strong>. <span class=\"tag-amber\">\u2b50 IGAS-1<\/span><\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch11r283\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 283<\/span>\n <span class=\"rule-title\">Invocation of Guarantee \u2014 Guarantee Redemption Fund<\/span>\n <\/div>\n <div class=\"sec-h\">Sub-rule (1) \u2014 Guarantee Redemption Fund (GRF)<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83c\udfe6<\/span><span>A <strong>Guarantee Redemption Fund (GRF)<\/strong> has been established in the <strong>Public Account of India<\/strong> for redemption of guarantees given to CPSEs, Financial Institutions, etc., whenever such guarantees are invoked.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcb0<\/span><span>Funding to the GRF is done through <strong>budgetary appropriations<\/strong> under the head <strong>'Transfer to Guarantee Redemption Fund'<\/strong> through the Demands for Grants of the <strong>Department of Economic Affairs<\/strong>.<\/span><\/li>\n <\/ul>\n <div class=\"sec-h\">Sub-rule (2) \u2014 Advance Notice of Likely Invocation<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udce2<\/span><span>The <strong>Administrative Ministries\/Departments should inform any case of impending\/likely invocation, well in advance, to the Budget Division<\/strong>, along with the proposed corrective measures.<\/span><\/li>\n <\/ul>\n <div class=\"sec-h\">Sub-rule (3) \u2014 Discharge of Obligation on Invocation<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\u2696\ufe0f<\/span><span>In the event of invocation of a guarantee, the obligation may be discharged by <strong>sanctioning a loan to the borrowing entity equal to the amount of guarantee outstanding<\/strong> \u2014 with the approval of Budget Division, MoF.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcb3<\/span><span>However, any payment on this account will <strong>finally be charged to the Guarantee Redemption Fund maintained in the Public Accounts<\/strong>.<\/span><\/li>\n <\/ul>\n <div class=\"box-blue\">\n <div class=\"box-blue-lbl\">\ud83d\udccc Guarantee Invocation \u2014 Flow<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\u27a1\ufe0f<\/span><span>Guarantee invoked \u2192 Admin Ministry informs Budget Division in advance \u2192 Obligation discharged by <strong>sanction of loan to borrower (= amount of guarantee outstanding)<\/strong> with Budget Division approval \u2192 Payment finally <strong>charged to Guarantee Redemption Fund (Public Account)<\/strong><\/span><\/li>\n <\/ul>\n <\/div>\n <\/div>\n\n <div class=\"box-amber\" style=\"margin-top:36px\">\n <div class=\"box-amber-lbl\">\u2b50 Numbers and Key Facts to Remember \u2014 Chapter 11<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>Art. 292<\/strong> \u2014 Constitutional power for Union Government guarantees (R.275)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>Budget Division, DEA<\/strong> \u2014 holds power to grant GoI guarantee including on external borrowings (R.275)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>3 objectives<\/strong> of sovereign guarantee \u2014 project viability \u00b7 lower interest rates \u00b7 precondition for concessional loans (R.276)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>Principal + normal interest only<\/strong> \u2014 GoI guarantee does not cover other risks or exchange rate risk (R.277, R.278)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>NOT to private sector<\/strong> \u00b7 <strong>NOT normally for ECBs<\/strong> \u00b7 <strong>NOT for grants<\/strong> \u00b7 <strong>NOT for low-priority objectives<\/strong> \u00b7 <strong>NOT for financially strong CPSEs<\/strong> (R.277)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>Form GFR-26<\/strong> \u2014 data of operational parameters of PSU\/Entity furnished with guarantee proposal (R.277)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>Guarantee fee levied before giving + every 1st April<\/strong> on outstanding amount \u00b7 Default \u2192 <strong>2\u00d7 normal rate<\/strong> (R.279)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>Maximum 80%<\/strong> of project loan \u00b7 Exception: 100% when entity discharges Govt function (R.279)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>Same financial year<\/strong> \u2014 guarantee must be executed in same FY as Budget Division approval; else resubmit (R.280)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>Non-transferable<\/strong> \u2014 GoI guarantee ceases on ownership transfer unless re-confirmed (R.280)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>30th April<\/strong> \u2014 FA forwards annual review report to Budget Division (R.281)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>10th April<\/strong> \u2014 updated Form GFR-25 data sent to Budget Division (R.281)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>6 categories<\/strong> of guarantee classification (R.281)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>IGAS-1<\/strong> \u2014 Indian Government Accounting Standard on Government Guarantees (R.282)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>Guarantee Redemption Fund<\/strong> \u2014 in Public Account \u00b7 funded via DEA's DFG \u00b7 invocation discharged by sanctioning loan to borrower (R.283)<\/span><\/li>\n <\/ul>\n <\/div>\n <\/div>\n\n <div id=\"ch12\" class=\"ch-block\">\n\n <div class=\"ch-banner\">\n <div class=\"ch-num\">Chapter 12<\/div>\n <div class=\"ch-title\">Miscellaneous Subjects<\/div>\n <div class=\"ch-range\">Rules 284 to 324 \u00b7 Establishment \u00b7 Claims \u00b7 Security Deposits \u00b7 Land & Buildings \u00b7 Local Bodies \u00b7 Records \u00b7 Advances<\/div>\n <\/div>\n\n \n <div class=\"idx-outer\">\n <div class=\"idx-lbl\">Rules at a Glance \u2014 Nine Sections<\/div>\n <table class=\"idx-table\">\n <thead><tr><th style=\"width:110px\">Rule No.<\/th><th>Rule Title \/ Section<\/th><th>Key Point<\/th><\/tr><\/thead>\n <tbody>\n <tr><td class=\"r-num\" colspan=\"3\" style=\"background:#1a3a6b;color:#fff;font-weight:700;letter-spacing:.04em;padding:6px 12px\">I. ESTABLISHMENT (Rules 284\u2013299)<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 284<\/td><td class=\"r-title\">Proposals for Additions to Establishment<\/td><td class=\"r-key\">4 mandatory contents in every proposal \u00b7 Continuation beyond specified duration \u2192 explicit MoF approval \u00b7 Increase in emoluments \u2192 MoF approval<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 285<\/td><td class=\"r-title\">Digitised Service Records<\/td><td class=\"r-key\">All service matters (entry to exit) \u2014 leave, transfer, promotion, appraisal \u2014 in digitised format<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 286<\/td><td class=\"r-title\">Transfer of Charge<\/td><td class=\"r-key\">Form GFR-16 \u00b7 signed by both \u00b7 same day to HoD \u00b7 3 exceptions \u00b7 Cash Book closed on transfer date \u00b7 sudden casualty \u2192 next senior takes charge<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 287<\/td><td class=\"r-title\">Date of Birth Declaration<\/td><td class=\"r-key\">At appointment \u00b7 Matriculation+: Matric certificate \u00b7 Others: Municipal Birth Certificate or last school certificate<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 288<\/td><td class=\"r-title\">Service Book<\/td><td class=\"r-key\">Annual verification by HoO \u00b7 Duplicate: 1st copy with HoO; 2nd to employee (existing: 6 months; new: 1 month) \u00b7 January update, returned in 30 days \u00b7 Lost copy: \u20b9500 \u00b7 All to be digitised<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 289<\/td><td class=\"r-title\">Retrospective Sanction \u2014 Charge Due Date<\/td><td class=\"r-key\">Charge not due before it is sanctioned \u00b7 Time limit runs from date of sanction, not effective date<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 290<\/td><td class=\"r-title\">TA Claim Due Date<\/td><td class=\"r-key\">Due on day after journey completion \u00b7 Submit within 60 days \u00b7 Failure \u2192 forfeited<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 291<\/td><td class=\"r-title\">TA \u2014 Retired Govt Servant (Court)<\/td><td class=\"r-key\">Eligible only on honourable acquittal judgement \u00b7 Date of judgement = reference point<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 292<\/td><td class=\"r-title\">LTC Claim Due Date<\/td><td class=\"r-key\">Due on day after return journey \u00b7 With advance: 30 days \u00b7 Without advance: 60 days \u00b7 Failure \u2192 forfeited<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 293<\/td><td class=\"r-title\">Overtime Allowance Claims<\/td><td class=\"r-key\">Due on 1st of following month \u00b7 Forfeited if not submitted within 60 days<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 294<\/td><td class=\"r-title\">Withheld Increment \u2014 Due Date<\/td><td class=\"r-key\">1-year period from date increment falls due, NOT from date of Increment Certificate signing<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 295<\/td><td class=\"r-title\">Arrear Claims<\/td><td class=\"r-key\">Within 2 years \u2192 DDO\/AO after usual checks \u00b7 Beyond 2 years \u2192 HoD investigates; if satisfied, pays \u00b7 HoD may delegate to subordinate appointment authority<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 296<\/td><td class=\"r-title\">Time-Barred Claims<\/td><td class=\"r-key\">Entertained if prevented by causes beyond control \u00b7 Paid with express Govt sanction + prior Internal Finance Wing consent<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 297<\/td><td class=\"r-title\">Claims of Non-Govt Persons<\/td><td class=\"r-key\">Rules 289\u2013296 apply mutatis mutandis to persons not in Govt service<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 298<\/td><td class=\"r-title\">Retrospective Sanctions \u2014 Pay Revision<\/td><td class=\"r-key\">Retrospective effect for pay revision \/ concessions \u2192 only in very special circumstances with prior MoF consent<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 299<\/td><td class=\"r-title\">PF Advance Sanction Currency<\/td><td class=\"r-key\">Lapses after 3 months unless specifically renewed \u00b7 Exception: instalment withdrawals (valid till date specified in sanction)<\/td><\/tr>\n <tr><td class=\"r-num\" colspan=\"3\" style=\"background:#1a3a6b;color:#fff;font-weight:700;letter-spacing:.04em;padding:6px 12px\">II. REFUND OF REVENUE (Rules 300\u2013302)<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 300<\/td><td class=\"r-title\">Sanctions of Refunds<\/td><td class=\"r-key\">Regulated by orders of Administrator or departmental authority as per departmental manuals<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 301<\/td><td class=\"r-title\">Refund Procedure \u2014 Five Sub-rules<\/td><td class=\"r-key\">Sanction on bill or certified copy \u00b7 Link original entry in Cash Book to prevent double claims \u00b7 Remission before collection = reduction of demand, NOT refund \u00b7 Refunds not treated as expenditure \u00b7 Wrongly credited \u2192 authority to whom receipts correctly pertain is competent<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 302<\/td><td class=\"r-title\">Compensation for Accidental Loss of Property<\/td><td class=\"r-key\">Only with MoF approval \u00b7 Not for floods\/cyclone\/earthquake or ordinary accidents \u00b7 Being on duty or in Govt quarters not sufficient ground alone<\/td><\/tr>\n <tr><td class=\"r-num\" colspan=\"3\" style=\"background:#1a3a6b;color:#fff;font-weight:700;letter-spacing:.04em;padding:6px 12px\">III. DEBT & MISC. OBLIGATIONS (Rules 303\u2013305)<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 303<\/td><td class=\"r-title\">Public Debt<\/td><td class=\"r-key\">Managed by Reserve Bank of India<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 304<\/td><td class=\"r-title\">Provident Funds<\/td><td class=\"r-key\">HoO maintains complete subscriber list \u00b7 Monthly schedule tallied before bill submission \u00b7 Similar for NPS \u00b7 Interest at rates\/intervals prescribed by MoF<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 305<\/td><td class=\"r-title\">Postal Life Insurance Register<\/td><td class=\"r-key\">Form GFR-20 \u00b7 Alphabetical order \u00b7 Separate entry per policy \u00b7 Monthly recovery posted after pay bill<\/td><\/tr>\n <tr><td class=\"r-num\" colspan=\"3\" style=\"background:#1a3a6b;color:#fff;font-weight:700;letter-spacing:.04em;padding:6px 12px\">IV. SECURITY DEPOSITS (Rules 306\u2013308)<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 306<\/td><td class=\"r-title\">Security by Govt Servants Handling Cash<\/td><td class=\"r-key\">All cash\/store handlers must furnish \u00b7 Based on actual cash (excludes A\/c payee cheques) \u00b7 Fidelity Bond: Form GFR-17 \u00b7 Security Bond: Form GFR-14 \u00b7 Officiating \u22644 months: exemption if permanent Govt servant + no risk<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 307<\/td><td class=\"r-title\">Security Not Required \u2014 4 Categories<\/td><td class=\"r-key\">Negligible stores \u00b7 Office furniture\/stationery (if HoO satisfied) \u00b7 Librarian & library staff \u00b7 Drivers of Govt vehicles<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 308<\/td><td class=\"r-title\">Retention of Security<\/td><td class=\"r-key\">Deposit: retained at least 6 months after vacating post \u00b7 Bond: retained permanently<\/td><\/tr>\n <tr><td class=\"r-num\" colspan=\"3\" style=\"background:#1a3a6b;color:#fff;font-weight:700;letter-spacing:.04em;padding:6px 12px\">V. TRANSFER OF LAND & BUILDINGS (Rules 309\u2013310)<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 309<\/td><td class=\"r-title\">Sale of Govt Land<\/td><td class=\"r-key\">No sale without previous sanction of Government (applies to autonomous bodies, PSUs too)<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 310<\/td><td class=\"r-title\">Transfer of Land and Buildings<\/td><td class=\"r-key\">UT\u2194Dept and Dept\u2194Dept: no profit no loss \u00b7 Buildings: present day cost minus depreciation (CPWD) \u00b7 PSU allotment: market value \u00b7 Union\u2194State: Art. 294, 295, 298 & 299 + Appendix-7<\/td><\/tr>\n <tr><td class=\"r-num\" colspan=\"3\" style=\"background:#1a3a6b;color:#fff;font-weight:700;letter-spacing:.04em;padding:6px 12px\">VI\u2013IX. LOCAL BODIES \u00b7 RECORDS \u00b7 ADVANCES (Rules 311\u2013324)<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 311<\/td><td class=\"r-title\">Charitable Endowments and Other Trusts<\/td><td class=\"r-key\">Detailed instructions in Appendix-8<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 312<\/td><td class=\"r-title\">Financial Arrangements with Local Bodies<\/td><td class=\"r-key\">Local body pays in advance unless special arrangement \u00b7 Emergency (epidemics): no pre-payment for medicines<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 313<\/td><td class=\"r-title\">Recovery from Non-Paying Local Bodies<\/td><td class=\"r-key\">Dues unpaid \u2192 adjusted from any non-statutory grant sanctioned for it<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 314<\/td><td class=\"r-title\">Taxes Collected on Behalf of Local Bodies<\/td><td class=\"r-key\">Must pass through Consolidated Fund before appropriation to local fund \u2014 unless authorised by law<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 315\u2013319<\/td><td class=\"r-title\">Payments \u00b7 Audit \u00b7 Rounding<\/td><td class=\"r-key\">Audit by Indian Audit & Accounts Dept (Art. 149) \u00b7 Audit fees in consultation with CAG \u00b7 Govt Company supplementary audit: waived for CAG staff, enforced for professional auditors \u00b7 Transactions rounded to nearest Rupee<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 320<\/td><td class=\"r-title\">Destruction of Records<\/td><td class=\"r-key\">Only per Appendix-9 \u00b7 Electronic records: mandatory backup + strict retention + monthly\/annual verification<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 322<\/td><td class=\"r-title\">Permanent Advance \/ Imprest<\/td><td class=\"r-key\">Granted by HoD in consultation with Internal Finance Wing \u00b7 Kept to minimum required<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 323<\/td><td class=\"r-title\">Advances for Contingent Purpose<\/td><td class=\"r-key\">4 conditions \u00b7 Adjustment bill within 15 days \u00b7 Failure \u2192 recovered from next salary<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 324<\/td><td class=\"r-title\">Advance to Govt Pleader<\/td><td class=\"r-key\">Max \u20b925,000 at a time \u00b7 Adjusted at time of settlement of Counsel's fee bills<\/td><\/tr>\n <\/tbody>\n <\/table>\n <\/div>\n\n \n <div style=\"background:#f0f4ff;border-left:5px solid #1a3a6b;padding:10px 18px;border-radius:0 6px 6px 0;margin:10px 0;font-weight:700;color:#1a3a6b;font-size:14px;letter-spacing:.04em;text-transform:uppercase\">Section I \u2014 Establishment (Rules 284\u2013299)<\/div>\n\n \n <div class=\"rule-block\" id=\"ch12r284\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 284<\/span><span class=\"rule-title\">Proposals for Additions to Establishment<\/span><\/div>\n <div class=\"sec-h\">Sub-rule (2) \u2014 Four Mandatory Contents of Every Proposal<\/div>\n <div class=\"box-blue\">\n <div class=\"box-blue-lbl\">\ud83d\udccb Every Proposal for New Posts \/ Revision Must Contain<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">1\ufe0f\u20e3<\/span><span><strong>Present cost of the establishment<\/strong> in existence<\/span><\/li>\n <li><span class=\"bi\">2\ufe0f\u20e3<\/span><span><strong>Cost implications of the change<\/strong> \u2014 details of pay and allowances of post(s) proposed<\/span><\/li>\n <li><span class=\"bi\">3\ufe0f\u20e3<\/span><span>Expenditure in respect of <strong>pension, gratuity or other retirement benefits<\/strong> that may arise in consequence<\/span><\/li>\n <li><span class=\"bi\">4\ufe0f\u20e3<\/span><span>Details on <strong>how the expenditure is proposed to be met<\/strong>, including proposed re-appropriations<\/span><\/li>\n <\/ul>\n <\/div>\n <ul class=\"blist\" style=\"margin-top:10px\">\n <li><span class=\"bi\">\ud83d\udd12<\/span><span><strong>Sub-rule (3):<\/strong> Continuation of an existing post beyond the specified duration requires <strong>explicit MoF approval<\/strong>, based on functional justification.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udd12<\/span><span><strong>Sub-rule (4):<\/strong> All proposals for <strong>increase in emoluments<\/strong> for an existing post shall be <strong>referred to the Ministry of Finance for approval<\/strong>.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch12r285\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 285<\/span><span class=\"rule-title\">Digitised Service Records<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udcbb<\/span><span>All service matters from <strong>entry to exit<\/strong> \u2014 including <strong>leave, transfer, promotion, performance appraisal<\/strong> \u2014 should be maintained in a <strong>digitised format<\/strong>.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch12r286\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 286<\/span><span class=\"rule-title\">Transfer of Charge<\/span><\/div>\n <div class=\"sec-h\">Sub-rule (1) \u2014 Form GFR-16<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccb<\/span><span>Report of transfer of a Gazetted Government servant shall be made in <strong>Form GFR-16<\/strong>, <strong>signed by both the relieved and relieving<\/strong> Government servants, and sent to the HoD or Controlling Officers <strong>on the same day<\/strong>.<\/span><\/li>\n <\/ul>\n <div class=\"box-amber\">\n <div class=\"box-amber-lbl\">\u2b50 3 Exceptions \u2014 Independent Signing Permitted<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">1\ufe0f\u20e3<\/span><span>Assumes charge of a <strong>newly created or vacant post<\/strong>, or relinquishes charge of a <strong>post that has been abolished<\/strong><\/span><\/li>\n <li><span class=\"bi\">2\ufe0f\u20e3<\/span><span>Vacates a post for a <strong>short period and no formal\/officiating arrangement<\/strong> is made in his place<\/span><\/li>\n <li><span class=\"bi\">3\ufe0f\u20e3<\/span><span>Moves to another post due to <strong>administrative exigencies<\/strong> against local arrangement<\/span><\/li>\n <\/ul>\n <\/div>\n <div class=\"sec-h\">Sub-rule (2) \u2014 Transfer Involving Cash\/Stores<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udcd2<\/span><span><strong>(i)<\/strong> <strong>Cash Book or imprest account shall be closed on the date of transfer<\/strong> with a note signed by both, showing cash\/imprest balances and unused cheques\/receipt books.<\/span><\/li>\n <li><span class=\"bi\">\u26a0\ufe0f<\/span><span><strong>(ii)<\/strong> The relieving Government servant should <strong>bring to notice anything irregular or objectionable<\/strong> in the conduct of business to the incoming officer.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udea8<\/span><span><strong>(iii) Sudden casualty<\/strong> \u2014 the <strong>next senior officer present shall take charge<\/strong>. If not a Gazetted officer, must immediately report to nearest departmental superior and obtain orders about cash in hand.<\/span><\/li>\n <\/ul>\n <div class=\"sec-h\">Sub-rule (3)<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>Additional procedure for Audit\/Accounts Officers making over charge in connection with <strong>Charitable Endowments and other Trust Accounts<\/strong> is laid down in <strong>Appendix-8<\/strong>.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch12r287\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 287<\/span><span class=\"rule-title\">Date of Birth Declaration at Appointment<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udcc5<\/span><span>Every person newly appointed shall, at the time of appointment, declare the date of birth by the <strong>Christian era<\/strong> with confirmatory documentary evidence:\n <ul class=\"blist-sub\">\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span>Qualification is <strong>Matriculation or above<\/strong> \u2192 <strong>Matriculation Certificate<\/strong><\/span><\/li>\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span>Other cases \u2192 <strong>Municipal Birth Certificate<\/strong> or <strong>Certificate from recognised school last attended<\/strong><\/span><\/li>\n <\/ul>\n <\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch12r288\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 288<\/span><span class=\"rule-title\">Service Book \u2014 Maintenance, Duplicate Copy and Digitisation<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udcd2<\/span><span><strong>Sub-rule (1):<\/strong> Service Books shall be <strong>verified every year by the Head of Office<\/strong>. After satisfying himself, the HoO shall record the certificate: <em>\"Service verified from \u2026 upto \u2026\"<\/em><\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccb<\/span><span><strong>Sub-rule (2):<\/strong> Maintained in <strong>duplicate<\/strong>. First copy with HoO; second copy given to the Government servant:\n <ul class=\"blist-sub\">\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span>Existing employees \u2192 within <strong>6 months<\/strong> of rules becoming effective (if not already given)<\/span><\/li>\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span>New appointees \u2192 within <strong>1 month<\/strong> of date of appointment <span class=\"tag-red\">\u2757 1 month<\/span><\/span><\/li>\n <\/ul>\n <\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcc5<\/span><span><strong>Sub-rule (3):<\/strong> In <strong>January each year<\/strong>, the Government servant shall hand over his copy for updation. The office shall <strong>update and return it within 30 days<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcb0<\/span><span><strong>Sub-rule (4):<\/strong> If the Government servant's copy is <strong>lost<\/strong>, replaced on payment of <strong>\u20b9500<\/strong>. <span class=\"tag-red\">\u2757 \u20b9500<\/span><\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcbb<\/span><span><strong>Sub-rule (5):<\/strong> All Service Books should be <strong>digitised<\/strong> for easy reference and to avoid problems in case of loss.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch12r289\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 289<\/span><span class=\"rule-title\">Retrospective Claim \u2014 Date of Sanction is the Reference<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udcc5<\/span><span>In the case of sanction accorded with retrospective effect, the charge does <strong>not become due before it is sanctioned<\/strong>. The time-limit specified in Rule 296(1) should be reckoned from the <strong>date of sanction<\/strong> and not from the date on which the sanction takes effect.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch12r290\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 290<\/span><span class=\"rule-title\">Due Date of TA Claim<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udcc5<\/span><span>TA claim falls due for payment on the <strong>day succeeding the date of completion of the journey<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\u23f0<\/span><span>The Government servant shall submit the claim within <strong>60 days<\/strong> of its becoming due. Failure \u2192 claim stands <strong>forfeited<\/strong>. <span class=\"tag-red\">\u2757 60 days<\/span><\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch12r291\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 291<\/span><span class=\"rule-title\">TA of Retired Govt Servant Appearing in Court of Law<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\u2696\ufe0f<\/span><span>Retired Government servants become eligible for reimbursement of travelling expenses for court appearances (defending himself) <strong>only when the judgement relating to his honourable acquittal is pronounced<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcc5<\/span><span>The <strong>date of pronouncement of the judgement<\/strong> shall be the reference point for submission and reimbursement of the TA claim.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch12r292\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 292<\/span><span class=\"rule-title\">Due Date of Leave Travel Concession (LTC) Claim<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udcc5<\/span><span>LTC claim falls due for payment on the <strong>day succeeding the date of completion of return journey<\/strong>.<\/span><\/li>\n <\/ul>\n <div class=\"box-amber\">\n <div class=\"box-amber-lbl\">\u2b50 LTC Submission Time Limits<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udcb3<\/span><span><strong>Advance drawn:<\/strong> Submit within <strong>30 days<\/strong> of due date. Failure \u2192 advance recovered; Government employee may still submit as under (ii) below. <span class=\"tag-red\">\u2757 30 days<\/span><\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcb0<\/span><span><strong>Advance not drawn:<\/strong> Submit within <strong>60 days<\/strong> of due date. <span class=\"tag-red\">\u2757 60 days<\/span><\/span><\/li>\n <li><span class=\"bi\">\u26d4<\/span><span>Failure to submit in both the cases within prescribed timelines \u2192 claim stands <strong>forfeited<\/strong>.<\/span><\/li>\n <\/ul>\n <\/div>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch12r293\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 293<\/span><span class=\"rule-title\">Due Date of Overtime Allowance (OTA) Claims<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udcc5<\/span><span>OTA claim falls due for payment on <strong>the first day of the month following the month<\/strong> to which the overtime allowance relates.<\/span><\/li>\n <li><span class=\"bi\">\u23f0<\/span><span>Claim stands <strong>forfeited<\/strong> if not submitted within <strong>60 days<\/strong> of the due date. <span class=\"tag-red\">\u2757 60 days<\/span><\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch12r294\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 294<\/span><span class=\"rule-title\">Due Date of a Withheld Increment<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udcc5<\/span><span>The period of one year should be counted from the <strong>date on which the increment falls due<\/strong> \u2014 not with reference to the date on which the Increment Certificate is signed by the competent authority.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>Even where an increment is withheld, the time-limit should be reckoned from the date on which it <strong>falls due after taking into account the period for which it is withheld<\/strong>.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch12r295\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 295<\/span><span class=\"rule-title\">Arrear Claims<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udcc5<\/span><span><strong>Sub-rule (1):<\/strong> Any arrear claim preferred within <strong>two years<\/strong> of its becoming due shall be settled by the <strong>DDO or Accounts Officer<\/strong> after usual checks.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>Sub-rule (2):<\/strong> The date on which the claim is <strong>presented at the office of disbursement<\/strong> shall be considered the date on which it is preferred.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udd0d<\/span><span><strong>Sub-rule (3)(i):<\/strong> Claim remaining in abeyance for more than <strong>two years<\/strong> \u2192 investigated by the <strong>Head of Department<\/strong>. If satisfied about genuineness and valid reasons for delay, the HoD directs payment after usual checks.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udc65<\/span><span><strong>Sub-rule (3)(ii):<\/strong> HoD may <strong>delegate<\/strong> the above powers to the subordinate authority <strong>competent to appoint<\/strong> the Government servant by whom the claim is made.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch12r296\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 296<\/span><span class=\"rule-title\">Procedure for Dealing with Time-Barred Claims<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\u2705<\/span><span><strong>Sub-rule (1):<\/strong> Even a <strong>time-barred claim<\/strong> shall be entertained if the concerned authority is satisfied that the claimant was <strong>prevented from submitting within the prescribed time limit on account of causes and circumstances beyond his control<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccb<\/span><span><strong>Sub-rule (2):<\/strong> A time-barred claim shall be paid with the <strong>express sanction of the Government<\/strong> issued with the <strong>previous consent of the Internal Finance Wing<\/strong> of the Ministry or Department concerned.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch12r297\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 297<\/span><span class=\"rule-title\">Time-Barred Claims of Persons Not in Government Service<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>The provisions of <strong>Rules 289 to 296<\/strong> shall apply <strong>mutatis mutandis<\/strong> to arrear claims preferred against Government by <strong>persons not in Government service<\/strong>.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch12r298\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 298<\/span><span class=\"rule-title\">Retrospective Sanctions for Pay Revision and Concessions<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\u26d4<\/span><span>Retrospective effect shall <strong>not be given<\/strong> by competent authorities to sanctions relating to <strong>revision of pay or grant of concessions<\/strong> to Government servants, except in <strong>very special circumstances with the previous consent of the Ministry of Finance<\/strong>.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch12r299\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 299<\/span><span class=\"rule-title\">Currency of Sanction for Provident Fund Advance \/ Withdrawal<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\u23f0<\/span><span>A sanction to an advance or a non-refundable part withdrawal from Provident Fund shall, unless specifically renewed, <strong>lapse on the expiry of 3 months<\/strong>. <span class=\"tag-red\">\u2757 3 months<\/span><\/span><\/li>\n <li><span class=\"bi\">\u2705<\/span><span><strong>Exception:<\/strong> This shall <strong>not apply to withdrawals effected in instalments<\/strong>. In such cases, the sanction for non-refundable withdrawals shall remain valid up to a <strong>particular date specified by the sanctioning authority in the sanction order itself<\/strong>.<\/span><\/li>\n <\/ul>\n <\/div>\n\n \n <div style=\"background:#e8f0ff;border-left:5px solid #1a3a6b;padding:10px 18px;border-radius:0 6px 6px 0;margin:44px 0 10px;font-weight:700;color:#1a3a6b;font-size:14px;letter-spacing:.04em;text-transform:uppercase\">Section II \u2014 Refund of Revenue (Rules 300\u2013302)<\/div>\n\n \n <div class=\"rule-block\" id=\"ch12r300\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 300<\/span><span class=\"rule-title\">Sanctions of Refunds of Revenue<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccb<\/span><span>All sanctions to refunds of revenue shall be regulated by the orders of an Administrator or of the <strong>departmental authority<\/strong> as per the provisions of the rules and orders contained in <strong>departmental manuals<\/strong>.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch12r301\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 301<\/span><span class=\"rule-title\">Refund Procedure \u2014 Five Key Provisions<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccb<\/span><span><strong>Sub-rule (1):<\/strong> Sanction to a refund may be given on the <strong>bill itself<\/strong> or quoted therein with a certified copy attached.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udd12<\/span><span><strong>Sub-rule (2):<\/strong> Before a refund is made, the <strong>original demand or realisation must be linked<\/strong> and a reference to the refund recorded against the original entry in the Cash Book \u2014 to make entertainment of a <strong>double or erroneous claim impossible<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>Sub-rule (3):<\/strong> <strong>Remission of revenue before collection \u2260 Refund<\/strong>. Such remissions are treated as <strong>reduction of demands<\/strong>, not as refunds.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>Sub-rule (4):<\/strong> <strong>Refunds of revenues are not regarded as expenditure<\/strong> for the purposes of grants or appropriation.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>Sub-rule (5):<\/strong> Revenue credited to a <strong>wrong head of account<\/strong> \u2192 the <strong>authority to whom the original receipts correctly pertain<\/strong> is competent to order refund.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch12r302\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 302<\/span><span class=\"rule-title\">Compensation for Accidental Loss of Property<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\u26d4<\/span><span>No compensation for accidental loss of property shall be paid to an officer <strong>except with the approval of the Ministry of Finance<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>Compensation will <strong>not ordinarily be granted<\/strong> for:\n <ul class=\"blist-sub\">\n <li><span class=\"bsi\">\u274c<\/span><span>Loss due to <strong>floods, cyclone, earthquake or any other natural calamity<\/strong><\/span><\/li>\n <li><span class=\"bsi\">\u274c<\/span><span>Loss due to <strong>ordinary accident<\/strong> which may occur to any citizen (theft, railway accident, fire, etc.)<\/span><\/li>\n <\/ul>\n <\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>The mere fact that the Government servant is technically <strong>on duty<\/strong> or is living in <strong>Government quarters<\/strong> will <strong>not be considered a sufficient ground<\/strong> for grant of compensation.<\/span><\/li>\n <\/ul>\n <\/div>\n\n \n <div style=\"background:#f0faf5;border-left:5px solid #2aab6e;padding:10px 18px;border-radius:0 6px 6px 0;margin:44px 0 10px;font-weight:700;color:#1a6b5a;font-size:14px;letter-spacing:.04em;text-transform:uppercase\">Section III \u2014 Debt and Miscellaneous Obligations (Rules 303\u2013305)<\/div>\n\n \n <div class=\"rule-block\" id=\"ch12r303\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 303<\/span><span class=\"rule-title\">Public Debt<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83c\udfe6<\/span><span>The public debt raised by Government by issue of securities shall be <strong>managed by the Reserve Bank of India<\/strong>. The RBI shall also manage securities created under any other law or rule having the force of law, provided such law specifically provides for their management by RBI.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch12r304\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 304<\/span><span class=\"rule-title\">Provident Funds<\/span><\/div>\n <div class=\"sec-h\">Sub-rule (1) \u2014 Maintenance of Subscriber List<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udcd2<\/span><span>A <strong>complete list of subscribers<\/strong> to each fund shall be maintained by each disbursing office in the form of a schedule. Key requirements:\n <ul class=\"blist-sub\">\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span>Each new subscriber brought on the list; changes (transfer, rate change) clearly indicated<\/span><\/li>\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span>Death, quitting service or transfer \u2192 full particulars duly recorded<\/span><\/li>\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span>Transfer of a subscriber \u2192 note made in list of <strong>both<\/strong> the offices<\/span><\/li>\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span>Monthly schedule prepared from this list and <strong>tallied with recoveries before submission of bill<\/strong><\/span><\/li>\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span>Similar provisions shall be made for <strong>New Pension System (NPS)<\/strong> subscribers<\/span><\/li>\n <\/ul>\n <\/span><\/li>\n <\/ul>\n <div class=\"sec-h\">Sub-rule (2) \u2014 Crediting of Interest<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udcb0<\/span><span>Deposit accounts shall be credited with interest at such <strong>rates and at such intervals as may be prescribed by the Ministry of Finance<\/strong> in each case.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch12r305\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 305<\/span><span class=\"rule-title\">Maintenance of Register for Postal Life Insurance (PLI) Premia<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udcee<\/span><span>All drawing officers should maintain a record of <strong>Postal Life Insurance (PLI) policy holders in Form GFR-20<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccb<\/span><span>The register shall be kept up to date with names in <strong>alphabetical order by surname<\/strong>. A <strong>separate entry for each policy<\/strong> where a holder has more than one policy.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcca<\/span><span>After preparation of the monthly pay bill, the amount of recovery on account of PLI premium shown in the bill shall be <strong>posted in the monthly column of the register<\/strong>. Excess or non-recovery shall be noted in the remarks column.<\/span><\/li>\n <\/ul>\n <\/div>\n\n \n <div style=\"background:#fffbe6;border-left:5px solid #c9a227;padding:10px 18px;border-radius:0 6px 6px 0;margin:44px 0 10px;font-weight:700;color:#7a5500;font-size:14px;letter-spacing:.04em;text-transform:uppercase\">Section IV \u2014 Security Deposits (Rules 306\u2013308)<\/div>\n\n \n <div class=\"rule-block\" id=\"ch12r306\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 306<\/span><span class=\"rule-title\">Furnishing of Security by Government Servants Handling Cash<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udd12<\/span><span><strong>Sub-rule (1):<\/strong> Every Government servant who <strong>actually handles cash or stores<\/strong> shall be required to furnish security, in such amount and form as Central Government or an Administrator may prescribe, and to <strong>execute a security bond<\/strong> setting forth the conditions.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcb0<\/span><span><strong>Sub-rule (2):<\/strong> Amount of security shall be based on <strong>actual cash handled<\/strong> \u2014 shall <strong>not include account payee cheques and drafts<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccb<\/span><span><strong>Sub-rule (3):<\/strong> Security shall be furnished in the form of a <strong>Fidelity Bond in Form GFR-17<\/strong>; Security Bond executed in <strong>Form GFR-14<\/strong>. Administration shall ensure the Government servant pays premia to keep the Bond alive; failure to submit premium receipt \u2192 not allowed to perform duties.<\/span><\/li>\n <li><span class=\"bi\">\u26a0\ufe0f<\/span><span><strong>Sub-rule (4):<\/strong> Officiating Government servant must furnish <strong>full security prescribed for the post<\/strong>. Exemption for short-term officiating only if all three conditions are met:\n <ul class=\"blist-sub\">\n <li><span class=\"bsi\">\u2705<\/span><span>No risk involved<\/span><\/li>\n <li><span class=\"bsi\">\u2705<\/span><span>Only for a <strong>permanent Government servant<\/strong><\/span><\/li>\n <li><span class=\"bsi\">\u2705<\/span><span>Officiating period does <strong>not exceed four months<\/strong> <span class=\"tag-red\">\u2757 4 months<\/span><\/span><\/li>\n <\/ul>\n <\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch12r307\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 307<\/span><span class=\"rule-title\">Exemptions from Security \u2014 Four Categories<\/span><\/div>\n <p style=\"margin-bottom:12px;color:#444;font-size:15px\">Notwithstanding Rule 306, security need <strong>not<\/strong> be furnished in cases of:<\/p>\n <ul class=\"blist\">\n <li><span class=\"bi\">1\ufe0f\u20e3<\/span><span>Government servants entrusted with the custody of stores which, in the opinion of the competent authority, are <strong>not considerable<\/strong><\/span><\/li>\n <li><span class=\"bi\">2\ufe0f\u20e3<\/span><span>Government servants entrusted with custody of <strong>office furniture, stationery and other articles required for office management<\/strong>, if the HoO is satisfied about <strong>safeguards against loss through pilferage<\/strong><\/span><\/li>\n <li><span class=\"bi\">3\ufe0f\u20e3<\/span><span><strong>Librarian and Library Staff<\/strong><\/span><\/li>\n <li><span class=\"bi\">4\ufe0f\u20e3<\/span><span><strong>Drivers of Government vehicles<\/strong><\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch12r308\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 308<\/span><span class=\"rule-title\">Retention of Security<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udcc5<\/span><span>A security <strong>deposit<\/strong> taken from a Government servant shall be retained for <strong>at least six months from the date he vacates his post<\/strong>. <span class=\"tag-red\">\u2757 6 months minimum<\/span><\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccb<\/span><span>A security <strong>bond<\/strong> shall be retained <strong>permanently<\/strong> or until it is certain there is no further necessity for keeping it.<\/span><\/li>\n <\/ul>\n <\/div>\n\n \n <div style=\"background:#f0f4ff;border-left:5px solid #1a3a6b;padding:10px 18px;border-radius:0 6px 6px 0;margin:44px 0 10px;font-weight:700;color:#1a3a6b;font-size:14px;letter-spacing:.04em;text-transform:uppercase\">Section V \u2014 Transfer of Land and Buildings (Rules 309\u2013310)<\/div>\n\n \n <div class=\"rule-block\" id=\"ch12r309\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 309<\/span><span class=\"rule-title\">Sale of Government Land \u2014 Prior Sanction Required<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\u26d4<\/span><span>Save as otherwise provided in any law, rule or order, <strong>no land belonging to the Government or any of its bodies<\/strong> \u2014 including autonomous bodies, PSUs, etc. \u2014 shall be <strong>sold without previous sanction of the Government<\/strong>.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch12r310\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 310<\/span><span class=\"rule-title\">Transfer of Land and Buildings \u2014 Price Basis<\/span><\/div>\n <div class=\"box-blue\">\n <div class=\"box-blue-lbl\">\ud83d\udccb Transfer of Land \u2014 Price Basis by Type<\/div>\n <table style=\"width:100%;border-collapse:collapse;font-size:14px;margin-top:6px\">\n <thead>\n <tr style=\"background:#1a3a6b;color:#fff\">\n <th style=\"padding:8px 12px;text-align:left\">Transfer Type<\/th>\n <th style=\"padding:8px 12px;text-align:left\">Basis<\/th>\n <\/tr>\n <\/thead>\n <tbody>\n <tr style=\"background:#f0f6ff;border-bottom:1px solid #d0dcef\">\n <td style=\"padding:8px 12px\">UT \u2194 Central Govt Dept [R.310(1)]<\/td>\n <td style=\"padding:8px 12px\"><strong>No profit no loss<\/strong> (not necessarily zero cost \u2014 can be on mutually agreeable terms)<\/td>\n <\/tr>\n <tr style=\"background:#e8f0ff;border-bottom:1px solid #d0dcef\">\n <td style=\"padding:8px 12px\">Dept \u2194 Dept [R.310(2)]<\/td>\n <td style=\"padding:8px 12px\"><strong>No profit no loss<\/strong> (can include payment of value or exchange of equal value land)<\/td>\n <\/tr>\n <tr style=\"background:#f0f6ff;border-bottom:1px solid #d0dcef\">\n <td style=\"padding:8px 12px\">Buildings \/ Superstructures [R.310(3)]<\/td>\n <td style=\"padding:8px 12px\"><strong>Present day cost minus depreciation<\/strong> \u00b7 Valuation from <strong>CPWD<\/strong> at time of transfer<\/td>\n <\/tr>\n <tr style=\"background:#e8f0ff;border-bottom:1px solid #d0dcef\">\n <td style=\"padding:8px 12px\">Allotment to PSUs [R.310(4)]<\/td>\n <td style=\"padding:8px 12px\"><strong>Market value<\/strong> as defined in Appendix-7, para 2<\/td>\n <\/tr>\n <tr style=\"background:#f0f6ff\">\n <td style=\"padding:8px 12px\">Union \u2194 State Govts [R.310(5)]<\/td>\n <td style=\"padding:8px 12px\">Regulated by <strong>Art. 294, 295, 298 & 299<\/strong> of Constitution and <strong>Appendix-7<\/strong><\/td>\n <\/tr>\n <\/tbody>\n <\/table>\n <\/div>\n <\/div>\n\n \n <div style=\"background:#f0faf5;border-left:5px solid #2aab6e;padding:10px 18px;border-radius:0 6px 6px 0;margin:44px 0 10px;font-weight:700;color:#1a6b5a;font-size:14px;letter-spacing:.04em;text-transform:uppercase\">Sections VI\u2013IX \u2014 Local Bodies, Trusts, Records, Advances (Rules 311\u2013324)<\/div>\n\n \n <div class=\"rule-block\" id=\"ch12r311\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 311<\/span><span class=\"rule-title\">Charitable Endowments and Other Trusts<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>Detailed instructions relating to Charitable Endowments and other Trusts are embodied in <strong>Appendix-8<\/strong>.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch12r312\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 312<\/span><span class=\"rule-title\">Financial Arrangements between Central Government and Local Bodies<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udcb0<\/span><span><strong>Sub-rule (1):<\/strong> A local body will be required to <strong>pay in advance<\/strong> the estimated amount of charges unless one of the following special arrangements is authorised:\n <ul class=\"blist-sub\">\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span>Payments are <strong>debited to the balances of the deposits of the local fund with Government<\/strong>, or<\/span><\/li>\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span>Payments are made as <strong>advances from public funds<\/strong> pending recovery from the local funds<\/span><\/li>\n <\/ul>\n <\/span><\/li>\n <li><span class=\"bi\">\ud83c\udfe5<\/span><span><strong>Sub-rule (2) \u2014 Emergency Exception:<\/strong> In case of <strong>emergency such as epidemics<\/strong>, pre-payment will <strong>not<\/strong> be insisted upon from local bodies for <strong>supply of medicines from Medical Stores Depots of the Ministry of Health<\/strong>.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch12r313\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 313<\/span><span class=\"rule-title\">Recovery of Dues from Local Bodies<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>Any amount or loan <strong>not paid on due date<\/strong> to Government by a local body may be <strong>adjusted from any non-statutory grant<\/strong> sanctioned for payment to it.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch12r314\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 314<\/span><span class=\"rule-title\">Taxes Collected by Government on Behalf of Local Bodies<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udd12<\/span><span>Proceeds of taxes, fines or other revenues levied or collected by Government for or on behalf of local bodies shall <strong>not be appropriated directly to a local fund without passing through the Consolidated Fund<\/strong> \u2014 unless expressly authorised by law.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch12r315\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rules 315\u2013319<\/span><span class=\"rule-title\">Payments, Audit of Local Bodies and Rounding of Transactions<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udcb0<\/span><span><strong>R.315:<\/strong> Payments to local bodies in respect of revenue raised or received by Government on their behalf shall be made in such <strong>manner and on such date<\/strong> as authorised by general or special orders of Government.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udd0d<\/span><span><strong>R.316:<\/strong> Accounts of local bodies, other non-Government bodies or institutions will be audited by the <strong>Indian Audit and Accounts Department<\/strong> under terms agreed between Government and CAG (subject to any law under <strong>Article 149<\/strong>).<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcb0<\/span><span><strong>R.317:<\/strong> Audit fees charged at <strong>daily rates prescribed by Government in consultation with CAG<\/strong>. Not applicable where rates are prescribed by law or rules having force of law. Specific local bodies may be wholly or partially exempted.<\/span><\/li>\n <li><span class=\"bi\">\ud83c\udfe2<\/span><span><strong>R.318 \u2014 Government Companies (Supplementary Audit, S.143(6) Companies Act 2013):<\/strong>\n <ul class=\"blist-sub\">\n <li><span class=\"bsi\">\u2705<\/span><span>Cost recovery <strong>waived<\/strong> where audit is done by CAG through <strong>own departmental staff<\/strong><\/span><\/li>\n <li><span class=\"bsi\">\u26a0\ufe0f<\/span><span>Cost recovery <strong>enforced<\/strong> where CAG employs <strong>professional auditors<\/strong><\/span><\/li>\n <\/ul>\n <\/span><\/li>\n <li><span class=\"bi\">\ud83d\udd22<\/span><span><strong>R.319:<\/strong> Financial transactions between Government and local bodies shall be <strong>rounded off to the nearest Rupee<\/strong>.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch12r320\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 320<\/span><span class=\"rule-title\">Destruction of Records<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\uddc2\ufe0f<\/span><span><strong>Sub-rule (1):<\/strong> No Government record connected with accounts shall be destroyed <strong>except in accordance with the provisions of Appendix-9<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcbb<\/span><span><strong>Sub-rule (2):<\/strong> Records maintained in <strong>electronic form<\/strong> should mandatorily have a <strong>backup<\/strong> and adhere strictly to the <strong>retention period and prescribed formats<\/strong>. Responsibility for <strong>verification and certification on a monthly\/annual basis<\/strong> as prescribed under relevant rules shall also be ensured.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch12r321\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 321<\/span><span class=\"rule-title\">Contingent Expenditure<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>Rules relating to incurring contingent expenditure are available under <strong>Section III of Subsidiary Instructions to Central Government Account (Receipt & Payment) Rules 2022<\/strong>.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch12r322\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 322<\/span><span class=\"rule-title\">Permanent Advance or Imprest<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udcb3<\/span><span>Permanent advance or Imprest for meeting <strong>day-to-day contingent and emergent expenditure<\/strong> may be granted by the <strong>Head of the Department in consultation with the Internal Finance Wing<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>Amount of advance shall be kept at the <strong>minimum required for smooth functioning<\/strong>. Procedures are available in para 10.12 of the Civil Accounts Manual.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch12r323\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 323<\/span><span class=\"rule-title\">Advances for Contingent and Miscellaneous Purpose<\/span><\/div>\n <div class=\"sec-h\">Sub-rule (1) \u2014 Four Conditions<\/div>\n <div class=\"box-blue\">\n <div class=\"box-blue-lbl\">\ud83d\udccb Four Conditions for Sanctioning a Contingent Advance<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">1\ufe0f\u20e3<\/span><span>Amount of expenditure is <strong>higher than the Permanent Advance<\/strong> available and cannot be met from it<\/span><\/li>\n <li><span class=\"bi\">2\ufe0f\u20e3<\/span><span>Purchase or other purpose <strong>cannot be managed under the normal procedures<\/strong> (post-procurement payment system)<\/span><\/li>\n <li><span class=\"bi\">3\ufe0f\u20e3<\/span><span>Amount of advance is <strong>not more than the power delegated to the HoO<\/strong> for the purpose<\/span><\/li>\n <li><span class=\"bi\">4\ufe0f\u20e3<\/span><span>Head of Office shall be <strong>responsible for timely recovery or adjustment<\/strong> of the advance<\/span><\/li>\n <\/ul>\n <\/div>\n <div class=\"sec-h\">Sub-rule (2) \u2014 15-Day Adjustment Limit<\/div>\n <div class=\"box-red\">\n <span style=\"font-size:18px;flex-shrink:0;margin-top:2px\">\u26a0\ufe0f<\/span>\n <span>The adjustment bill, along with balance if any, shall be submitted by the Government servant within <strong>15 days of the drawl of advance<\/strong>. Failure \u2192 advance or balance <strong>recovered from his next salary(ies)<\/strong>. <span class=\"tag-red\">\u2757 15 days<\/span><\/span>\n <\/div>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch12r324\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 324<\/span><span class=\"rule-title\">Advance to Government Pleader<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\u2696\ufe0f<\/span><span>The Ministry or Department may sanction an advance to a <strong>Government Pleader<\/strong> in connection with law suits to which Government is a party \u2014 up to a <strong>maximum of \u20b925,000 at a time<\/strong>. <span class=\"tag-red\">\u2757 \u20b925,000 max<\/span><\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccb<\/span><span>The amount so advanced should be <strong>adjusted at the time of settlement of Counsel's fee bills<\/strong>.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"box-amber\" style=\"margin-top:36px\">\n <div class=\"box-amber-lbl\">\u2b50 Numbers and Key Facts to Remember \u2014 Chapter 12<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>4 mandatory contents<\/strong> in establishment proposals (R.284)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>Form GFR-16<\/strong> \u2014 Transfer of Charge \u00b7 signed by both \u00b7 sent to HoD on same day (R.286)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>Service Book duplicate<\/strong>: existing employees within 6 months; new appointees within <strong>1 month<\/strong> \u00b7 January update, returned in <strong>30 days<\/strong> \u00b7 lost copy: <strong>\u20b9500<\/strong> (R.288)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>TA: 60 days<\/strong> \u00b7 LTC with advance: <strong>30 days<\/strong> \u00b7 LTC without advance: <strong>60 days<\/strong> \u00b7 OTA: <strong>60 days<\/strong> \u00b7 Contingent advance adjustment: <strong>15 days<\/strong><\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>Arrear claims: 2 years<\/strong> \u2192 DDO\/AO settles; beyond 2 years \u2192 HoD investigates (R.295)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>PF advance sanction: 3 months<\/strong> \u2014 lapses unless renewed; exception for instalment withdrawals (R.299)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>Remission before collection = reduction of demand, NOT refund<\/strong> \u00b7 Refunds \u2260 expenditure for appropriation (R.301)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>Security Bond: Form GFR-14 \u00b7 Fidelity Bond: Form GFR-17 \u00b7 PLI Register: Form GFR-20<\/strong><\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>Security exemption for officiating: only if <strong>\u22644 months + permanent Govt servant + no risk<\/strong> (R.306)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>Security <strong>deposit: \u22656 months after vacation<\/strong> \u00b7 Security <strong>bond: permanently<\/strong> (R.308)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>4 categories exempt<\/strong> from security: negligible stores \u00b7 office furniture \u00b7 librarian\/library staff \u00b7 Govt vehicle drivers (R.307)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>Land transfer: UT\u2194Dept and Dept\u2194Dept = <strong>no profit no loss<\/strong> \u00b7 PSU = <strong>market value<\/strong> \u00b7 Buildings = <strong>present day cost minus depreciation (CPWD valuation)<\/strong> (R.310)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>Supplementary Audit (Govt Companies): cost recovery <strong>waived<\/strong> for CAG departmental staff; <strong>enforced<\/strong> for professional auditors (R.318)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>\u20b925,000<\/strong> \u2014 maximum advance to Government Pleader at a time (R.324)<\/span><\/li>\n <\/ul>\n <\/div>\n <\/div>\n\n <div id=\"coming-soon\">\n <div style=\"font-size:52px;margin-bottom:16px\">\ud83d\udea7<\/div>\n <h2 style=\"font-size:22px;color:#1a3a6b;margin-bottom:10px\">Notes Coming Soon<\/h2>\n <p class=\"cs-title\" style=\"font-size:15px;color:#888;font-style:italic;margin-bottom:18px\"><\/p>\n <p style=\"font-size:14px;color:#aaa\">Detailed notes for this chapter will be published shortly. 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\n\t\t\t\t\t\n\n\n\n\nGeneral Financial Rules, 2017 | CSS ADDA<\/title>\n<style>\n*, *::before, *::after { box-sizing: border-box; margin: 0; padding: 0; }\n\nbody {\n font-family: 'Bookman Old Style', 'Book Antiqua', Georgia, serif;\n background: #ececea;\n color: #1a1a1a;\n font-size: 15px;\n line-height: 1.9;\n}\na { text-decoration: none; color: inherit; }\n\n.breadcrumb-bar {\n background: #fff; border-bottom: 1px solid #ddd;\n padding: 9px 28px; font-size: 13px; color: #999;\n display: flex; align-items: center; gap: 6px;\n}\n.breadcrumb-bar a { color: #2a6496; }\n.breadcrumb-bar span { color: #ccc; }\n.breadcrumb-bar strong { color: #333; }\n\n.wrapper { display: flex; min-height: 100vh; align-items: flex-start; }\n\n\/* \u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550 SIDEBAR \u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550\u2550 *\/\n.sidebar {\n width: 280px; min-width: 280px;\n background: #1e4d35;\n min-height: 100vh;\n position: 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#e8c840; }\n.goi-dec:last-child { margin: 0; padding: 0; border: none; }\n.goi-dec-title { font-size: 14px; font-weight: 700; color: #5a3d00; margin-bottom: 10px; display: flex; align-items: center; gap: 8px; }\n\n\/* \u2550\u2550 TABS (Losses) \u2550\u2550 *\/\n.loss-tabs { display: flex; flex-wrap: wrap; gap: 4px; border-bottom: 2px solid #1e4d35; }\n.loss-tb { padding: 8px 13px; border: 1.5px solid #c0cce8; border-bottom: none; border-radius: 6px 6px 0 0; background: #eef1f8; color: #5a6480; font-family: 'Bookman Old Style','Book Antiqua',Georgia,serif; font-size: 11px; font-weight: 700; cursor: pointer; transition: all 0.16s; white-space: nowrap; }\n.loss-tb:hover { background: #dde6ff; color: #1a3a6b; }\n.loss-tb.on { background: #1e4d35; color: #f5c518; border-color: #1e4d35; }\n.loss-panel { display: none; padding: 16px 2px 4px; }\n.loss-panel.on { display: block; animation: fade .28s ease; }\n@keyframes fade { from{opacity:0;transform:translateY(6px)} to{opacity:1;transform:none} }\n.loss-intro { background: #1e4d35; color: #fff; border-left: 4px solid #f5c518; border-radius: 0 6px 6px 0; padding: 10px 14px; font-size: 13px; font-style: italic; line-height: 1.65; margin-bottom: 13px; }\n\n\/* \u2550\u2550 CTA \u2550\u2550 *\/\n.cta-link { display: inline-flex; align-items: center; gap: 6px; font-size: 14px; font-weight: 600; color: #2a6496; margin: 6px 0 14px; cursor: pointer; }\n.cta-link:hover { text-decoration: underline; }\n\n\/* \u2550\u2550 COMING SOON \u2550\u2550 *\/\n#coming-soon { display:none; text-align:center; padding: 80px 20px; }\n\n@media(max-width:860px){ .wrapper{flex-direction:column} .sidebar{width:100%;min-width:100%;position:static;max-height:none} .content-area{padding:20px 18px 48px} .pg-head{padding:16px 18px 12px} }\n<\/style>\n<\/head>\n<body>\n\n<div class=\"breadcrumb-bar\">\n <a href=\"#\">Home<\/a><span>\/<\/span>\n <a href=\"#\">Notes<\/a><span>\/<\/span>\n <strong>GFR 2017<\/strong>\n<\/div>\n\n<div class=\"wrapper\">\n\n\n<aside class=\"sidebar\">\n <div class=\"sb-brand\">\n <div class=\"ico\">\ud83d\udcdc<\/div>\n <div class=\"name\">CSS ADDA<\/div>\n <div class=\"sub\">Promotion Exams Portal<\/div>\n <div class=\"pill\">GFR 2017<\/div>\n <\/div>\n <div class=\"toc-hd\">\ud83d\udccb Chapters<\/div>\n <ul class=\"toc-list\">\n <li><a href=\"#\" data-ch=\"ch1\" class=\"active\">\n <span class=\"toc-ic\">\ud83d\udcd8<\/span>\n <span class=\"toc-tx\">Chapter 1<br><span style=\"font-size:11px;font-weight:400;color:inherit;opacity:.8\">Introduction<\/span><\/span>\n <span class=\"toc-rng\">R.1\u20136<\/span>\n <\/a><\/li>\n <li><a href=\"#\" data-ch=\"ch2\">\n <span class=\"toc-ic\">\ud83d\udcd7<\/span>\n <span class=\"toc-tx\">Chapter 2<br><span style=\"font-size:11px;font-weight:400;color:inherit;opacity:.8\">General System of Financial Management<\/span><\/span>\n <span class=\"toc-rng\">R.7\u201339<\/span>\n <\/a><\/li>\n <li><a href=\"#\" data-ch=\"ch3\">\n <span class=\"toc-ic\">\ud83d\udcd9<\/span>\n <span class=\"toc-tx\">Chapter 3<br><span style=\"font-size:11px;font-weight:400;color:inherit;opacity:.8\">Budget Formulation & Implementation<\/span><\/span>\n <span class=\"toc-rng\">R.42\u201370<\/span>\n <\/a><\/li>\n <li><a href=\"#\" data-ch=\"ch4\">\n <span class=\"toc-ic\">\ud83d\udcd5<\/span>\n <span class=\"toc-tx\">Chapter 4<br><span style=\"font-size:11px;font-weight:400;color:inherit;opacity:.8\">Government Accounts<\/span><\/span>\n <span class=\"toc-rng\">R.71\u2013129<\/span>\n <\/a><\/li>\n <li><a href=\"#\" data-ch=\"ch5\">\n <span class=\"toc-ic\">\ud83d\udcd2<\/span>\n <span class=\"toc-tx\">Chapter 5<br><span style=\"font-size:11px;font-weight:400;color:inherit;opacity:.8\">Works<\/span><\/span>\n <span class=\"toc-rng\">R.130\u2013141<\/span>\n <\/a><\/li>\n <li><a href=\"#\" data-ch=\"ch6\">\n <span class=\"toc-ic\">\ud83d\udcd3<\/span>\n <span class=\"toc-tx\">Chapter 6<br><span style=\"font-size:11px;font-weight:400;color:inherit;opacity:.8\">Procurement of Goods & Services<\/span><\/span>\n <span class=\"toc-rng\">R.142\u2013206<\/span>\n <\/a><\/li>\n <li><a href=\"#\" data-ch=\"ch7\">\n <span class=\"toc-ic\">\ud83d\udce6<\/span>\n <span class=\"toc-tx\">Chapter 7<br><span style=\"font-size:11px;font-weight:400;color:inherit;opacity:.8\">Inventory Management<\/span><\/span>\n <span class=\"toc-rng\">R.207\u2013223<\/span>\n <\/a><\/li>\n <li><a href=\"#\" data-ch=\"ch8\">\n <span class=\"toc-ic\">\ud83d\udcdd<\/span>\n <span class=\"toc-tx\">Chapter 8<br><span style=\"font-size:11px;font-weight:400;color:inherit;opacity:.8\">Contract Management<\/span><\/span>\n <span class=\"toc-rng\">R.224\u2013227A<\/span>\n <\/a><\/li>\n <li><a href=\"#\" data-ch=\"ch9\">\n <span class=\"toc-ic\">\ud83e\udd1d<\/span>\n <span class=\"toc-tx\">Chapter 9<br><span style=\"font-size:11px;font-weight:400;color:inherit;opacity:.8\">Grants-in-aid and Loans<\/span><\/span>\n <span class=\"toc-rng\">R.228\u2013263<\/span>\n <\/a><\/li>\n <li><a href=\"#\" data-ch=\"ch10\">\n <span class=\"toc-ic\">\ud83c\udf10<\/span>\n <span class=\"toc-tx\">Chapter 10<br><span style=\"font-size:11px;font-weight:400;color:inherit;opacity:.8\">Externally Aided Projects<\/span><\/span>\n <span class=\"toc-rng\">R.264\u2013274<\/span>\n <\/a><\/li>\n <li><a href=\"#\" data-ch=\"ch11\">\n <span class=\"toc-ic\">\ud83d\udee1\ufe0f<\/span>\n <span class=\"toc-tx\">Chapter 11<br><span style=\"font-size:11px;font-weight:400;color:inherit;opacity:.8\">Government Guarantees<\/span><\/span>\n <span class=\"toc-rng\">R.275\u2013283<\/span>\n <\/a><\/li>\n <li><a href=\"#\" data-ch=\"ch12\">\n <span class=\"toc-ic\">\ud83d\uddc2\ufe0f<\/span>\n <span class=\"toc-tx\">Chapter 12<br><span style=\"font-size:11px;font-weight:400;color:inherit;opacity:.8\">Miscellaneous<\/span><\/span>\n <span class=\"toc-rng\">R.284\u2013324<\/span>\n <\/a><\/li>\n <\/ul>\n<\/aside>\n\n\n<main class=\"main\">\n <div class=\"pg-head\">\n <h1>General Financial Rules, 2017 \u2014 Study Notes<\/h1>\n <div class=\"pg-sub\">Ministry of Finance \u00b7 CSS ADDA Promotion Exams Portal<\/div>\n <\/div>\n\n <div class=\"content-area\">\n\n \n <div id=\"ch1\" class=\"ch-block active\">\n\n <div class=\"ch-banner\">\n <div class=\"ch-num\">Chapter 1<\/div>\n <div class=\"ch-title\">Introduction<\/div>\n <div class=\"ch-range\">Rules 1 to 6 \u00b7 Short title, Definitions, Consultation, Modifications<\/div>\n <\/div>\n\n \n <div class=\"idx-outer\">\n <div class=\"idx-lbl\">Rules at a Glance<\/div>\n <table class=\"idx-table\">\n <thead><tr><th style=\"width:90px\">Rule No.<\/th><th>Rule Title<\/th><th>Key Point<\/th><\/tr><\/thead>\n <tbody>\n <tr><td class=\"r-num\">Rule 1<\/td><td class=\"r-title\">Short Title and Commencement<\/td><td class=\"r-key\">GFR 2017 \u00b7 At once \u00b7 Applies to all Central Govt. Ministries\/Depts \u00b7 Autonomous Bodies unless own rules<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 2<\/td><td class=\"r-title\">Definitions<\/td><td class=\"r-key\">32 definitions \u00b7 DDO = Gazetted Officer \u00b7 HoD = min. Dy. Secy. \u00b7 FY = 1 Apr\u201331 Mar \u00b7 CAPEX & OPEX models<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 3<\/td><td class=\"r-title\">Inter-Departmental Consultation<\/td><td class=\"r-key\">All concerned depts must concur OR Cabinet decides \u00b7 Indirect effect also counts<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 4<\/td><td class=\"r-title\">Departmental Regulations of Financial Character<\/td><td class=\"r-key\">All financial regulations \u2192 by or with MoF concurrence<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 5<\/td><td class=\"r-title\">Removal of Doubts<\/td><td class=\"r-key\">Interpretation doubts \u2192 Ministry of Finance decides \u00b7 Decision is final<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 6<\/td><td class=\"r-title\">Modifications<\/td><td class=\"r-key\">MoF may issue general\/special instructions \u00b7 Any other authority \u2192 EXPRESS MoF approval mandatory<\/td><\/tr>\n <\/tbody>\n <\/table>\n <\/div>\n\n \n <div class=\"rule-block\" id=\"r1\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 1<\/span>\n <span class=\"rule-title\">Short Title and Commencement<\/span>\n <\/div>\n <div class=\"sec-h\">The Rule<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udcdc<\/span><span>These rules shall be called the <strong>General Financial Rules, 2017<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\u26a1<\/span><span>They come into force <strong>at once<\/strong> \u2014 immediately upon publication in the Official Gazette.<\/span><\/li>\n <li><span class=\"bi\">\ud83c\udfdb\ufe0f<\/span><span>Apply to all <strong>Central Government Ministries and Departments<\/strong>, including their attached and subordinate offices.<\/span><\/li>\n <\/ul>\n <div class=\"box-green\">\n <div class=\"box-green-lbl\">\ud83d\udccc Autonomous Bodies<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83c\udfe2<\/span><span>GFR shall be <strong>deemed to apply to autonomous bodies<\/strong> also \u2014 <em>unless<\/em> such a body has its own <strong>Financial Rules incorporated in its bye-laws and approved by the Government<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\u26a0\ufe0f<\/span><span>The mere existence of bye-laws is not enough \u2014 the financial rules must be specifically incorporated <em>and<\/em> carry Government approval.<\/span><\/li>\n <\/ul>\n <\/div>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"r2\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 2<\/span>\n <span class=\"rule-title\">Definitions<\/span>\n <\/div>\n <p style=\"margin-bottom:14px;color:#555;font-size:14px\">Rule 2 contains <strong>32 definitions<\/strong>. The most important ones for examination purposes are set out below.<\/p>\n\n <div class=\"sec-h\">Key Definitions<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>Accounts Officer [Cl. i]:<\/strong> The Head of an office of accounts \u2014 i.e., the Head of a <strong>Pay and Accounts Office (PAO)<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>Appropriation [Cl. iii]:<\/strong> Assignment of funds to meet <strong>expenditure of a specified kind from a primary unit of appropriation<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>Competent Authority [Cl. v]:<\/strong> The <strong>President of India<\/strong>, or any authority to whom the President has delegated power under DFPR or through general\/special orders.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>Consolidated Fund of India [Cl. vii]:<\/strong> Fund under <strong>Article 266(1)<\/strong> of the Constitution \u2014 all revenues received and loans raised by the Government.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>Contingency Fund of India [Cl. viii]:<\/strong> Under <strong>Article 267(1)<\/strong> and the <strong>Contingency Fund of India Act, 1950<\/strong>. At the disposal of the President to meet unforeseen expenditure pending Parliamentary authorisation.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>Controlling Officer [Cl. x]:<\/strong> Responsible for <strong>supervising revenue collection and controlling expenditure<\/strong> under a major head. Includes Head of Department and Administrator.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>DDO [Cl. xii]:<\/strong> A <strong>Gazetted Officer<\/strong> authorised to draw bills and make payments on behalf of the Government \u2014 also includes Head of Department or Administrator where they discharge such functions. <span class=\"tag-amber\">\u2b50 Very Important<\/span><\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>Financial Year [Cl. xiv]:<\/strong> <strong>1st April to 31st March<\/strong> of the following year.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>Government Account [Cl. xvi]:<\/strong> Three parts \u2014 Consolidated Fund + Contingency Fund + Public Account of India.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>Head of Department [Cl. xvii]:<\/strong> Declared by competent authority \u2014 shall not be of a rank <strong>below that of Deputy Secretary to the Government of India<\/strong>. <span class=\"tag-amber\">\u2b50 Exam point<\/span><\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>Public Account of India [Cl. xxiii]:<\/strong> Under <strong>Article 266(2)<\/strong> \u2014 moneys received by or held on behalf of the Government other than those in the Consolidated Fund.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>Re-appropriation [Cl. xxvi]:<\/strong> Transfer of funds from <strong>one primary unit of appropriation to another<\/strong> within the same grant.<\/span><\/li>\n <\/ul>\n\n <div class=\"sec-h\">New in GFR 2017 \u2014 CAPEX and OPEX Models<\/div>\n <div class=\"box-blue\">\n <div class=\"box-blue-lbl\">\u2b50 Two New Definitions Added in 2017<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83c\udfd7\ufe0f<\/span><span><strong>CAPEX Model [Cl. xxxi]:<\/strong> Buyer <strong>purchases the asset outright<\/strong>. Arranges maintenance after warranty. <strong>Disposes of the asset<\/strong> at the end of useful life. Ownership transfers to buyer at once.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udd04<\/span><span><strong>OPEX Model [Cl. xxxii]:<\/strong> Seller <strong>provides, maintains, and supplies consumables<\/strong> for the asset. Takes it back at end of life. Buyer pays a <strong>staggered periodic fee<\/strong>. Seller retains ownership throughout.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <table class=\"ctable\">\n <thead><tr><th class=\"col-h\">Parameter<\/th><th>CAPEX<\/th><th>OPEX<\/th><\/tr><\/thead>\n <tbody>\n <tr><td class=\"col-h\">Ownership<\/td><td>Transfers to Buyer<\/td><td>Remains with Seller<\/td><\/tr>\n <tr><td class=\"col-h\">Payment<\/td><td>One-time \/ upfront<\/td><td>Staggered periodic payments<\/td><\/tr>\n <tr><td class=\"col-h\">Maintenance<\/td><td>Buyer (after warranty)<\/td><td>Seller throughout<\/td><\/tr>\n <tr><td class=\"col-h\">Consumables<\/td><td>Buyer procures separately<\/td><td>Seller supplies<\/td><\/tr>\n <tr><td class=\"col-h\">End of Life<\/td><td>Buyer disposes<\/td><td>Seller takes back<\/td><\/tr>\n <tr><td class=\"col-h\">Obsolescence Risk<\/td><td>Buyer<\/td><td>Seller<\/td><\/tr>\n <\/tbody>\n <\/table>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"r3\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 3<\/span>\n <span class=\"rule-title\">Inter-Departmental Consultation<\/span>\n <\/div>\n <div class=\"sec-h\">The Rule<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83e\udd1d<\/span><span>No order or rule on a matter <strong>affecting more than one Ministry or Department<\/strong> shall be issued without prior consultation with all concerned Ministries or Departments.<\/span><\/li>\n <li><span class=\"bi\">\u2705<\/span><span>Exception: If the matter has already been <strong>decided by the Cabinet<\/strong>, no prior consultation is required.<\/span><\/li>\n <\/ul>\n <div class=\"box-red\">\n <span style=\"font-size:18px;flex-shrink:0;margin-top:2px\">\u26a0\ufe0f<\/span>\n <span><strong>EXPLANATION:<\/strong> Even an <strong>indirect or incidental effect<\/strong> on another Department's functions is sufficient to trigger the consultation requirement. The test is not limited to matters squarely within another Department's jurisdiction.<\/span>\n <\/div>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"r4\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 4<\/span>\n <span class=\"rule-title\">Departmental Regulations of Financial Character<\/span>\n <\/div>\n <div class=\"sec-h\">The Rule<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccb<\/span><span>All <strong>Departmental Regulations of a financial character<\/strong> must be made <strong>by or with the concurrence of the Ministry of Finance<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\u26d4<\/span><span>No Ministry or Department can unilaterally issue financial regulations without MoF involvement.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"r5\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 5<\/span>\n <span class=\"rule-title\">Removal of Doubts<\/span>\n <\/div>\n <div class=\"sec-h\">The Rule<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\u2753<\/span><span>If any <strong>doubt arises regarding the interpretation<\/strong> of any provision of GFR, the matter shall be referred to the <strong>Ministry of Finance<\/strong>, whose decision shall be <strong>final<\/strong>.<\/span><\/li>\n <\/ul>\n <div class=\"box-blue\">\n <div class=\"box-blue-lbl\">\ud83d\udccc Key Point<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83c\udfdb\ufe0f<\/span><span>MoF is the <strong>sole and final interpreter<\/strong> of the GFR. No other authority can interpret its provisions \u2014 all doubts are referred to MoF.<\/span><\/li>\n <\/ul>\n <\/div>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"r6\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 6<\/span>\n <span class=\"rule-title\">Modifications<\/span>\n <\/div>\n <div class=\"sec-h\">The Rule<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\u270f\ufe0f<\/span><span>The <strong>Ministry of Finance<\/strong> may issue general or special instructions modifying the procedure prescribed in these rules.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udd12<\/span><span>Any <strong>other authority<\/strong> may modify GFR provisions only with the <strong>express approval of the Ministry of Finance<\/strong>.<\/span><\/li>\n <\/ul>\n <div class=\"box-red\">\n <span style=\"font-size:18px;flex-shrink:0;margin-top:2px\">\u26a0\ufe0f<\/span>\n <span><strong>EXPLANATION:<\/strong> The word <strong>\"express\"<\/strong> is critical \u2014 implied or presumed MoF approval is not sufficient. Approval must be explicitly recorded in writing before any modification can take effect.<\/span>\n <\/div>\n <\/div>\n <\/div>\n\n\n \n <div id=\"ch2\" class=\"ch-block\">\n\n <div class=\"ch-banner\">\n <div class=\"ch-num\">Chapter 2<\/div>\n <div class=\"ch-title\">General System of Financial Management<\/div>\n <div class=\"ch-range\">Rules 7 to 41 \u00b7 Four Sections: Govt. Receipts \u00b7 General Principles \u00b7 Losses \u00b7 Records & Audit<\/div>\n <\/div>\n\n \n <div class=\"idx-outer\">\n <div class=\"idx-lbl\">Rules at a Glance<\/div>\n <table class=\"idx-table\">\n <thead><tr><th style=\"width:110px\">Rule No.<\/th><th>Rule Title<\/th><th>Key Point<\/th><\/tr><\/thead>\n <tbody>\n <tr><td colspan=\"3\" style=\"background:#f0f4ff;font-weight:700;color:#1a3a6b;font-size:12px;letter-spacing:.06em;text-transform:uppercase;padding:8px 14px\">Government Receipts (Rules 7\u201320)<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 7<\/td><td class=\"r-title\">All Receipts into Government Account<\/td><td class=\"r-key\">All moneys received \u2192 brought into Govt Account without delay \u00b7 Art.150 & 283(1)<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 8<\/td><td class=\"r-title\">Moneys into Public Account \u00b7 Court Moneys<\/td><td class=\"r-key\">Art.284 \u2014 non-revenue moneys received by officers \u2192 Public Account \u00b7 Supreme Court & UT Courts included<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 9<\/td><td class=\"r-title\">Duty to Assess and Collect Receipts<\/td><td class=\"r-key\">Dept must ensure dues correctly and promptly assessed, collected and credited<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 10<\/td><td class=\"r-title\">Controlling Officer \u2014 Monthly Accounts<\/td><td class=\"r-key\">CO to obtain monthly accounts from subordinates \u00b7 Compare with Accounts Officer statements<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 11<\/td><td class=\"r-title\">Rules on Revenue Assessment & Receipt Books<\/td><td class=\"r-key\">Detailed rules in dept regulations \u00b7 Receipt books in Form GAR-6<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 12<\/td><td class=\"r-title\">Outstanding Dues<\/td><td class=\"r-key\">Amounts due not to be left outstanding \u00b7 If irrecoverable \u2192 competent authority orders<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 13<\/td><td class=\"r-title\">No Credit via Suspense Head<\/td><td class=\"r-key\">Credit must follow actual realisation \u00b7 No debit to suspense head unless specially authorised<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 14<\/td><td class=\"r-title\">Report of Revenue Collection Progress<\/td><td class=\"r-key\">HoD\/Administrator to keep Finance Ministry informed of revenue progress and variations from BE<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 15<\/td><td class=\"r-title\">Rents of Buildings and Lands<\/td><td class=\"r-key\">HoD responsible for recovery of rent \u00b7 Procedure as per CPWD rules<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 16<\/td><td class=\"r-title\">Fines<\/td><td class=\"r-key\">Authority to realise fines must deposit money \u00b7 Authority to refund must prevent double refunds<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 17<\/td><td class=\"r-title\">Miscellaneous Demands<\/td><td class=\"r-key\">Accounts Officers to watch realisation of misc. demands \u2014 contributions from States, Local Funds, contractors<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 18<\/td><td class=\"r-title\">Remission of Revenue<\/td><td class=\"r-key\">Revenue not to be remitted or abandoned without sanction of competent authority<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 19<\/td><td class=\"r-title\">Annual Statement of Remissions<\/td><td class=\"r-key\">Submit to Audit & Accounts Officer by 1st June annually \u00b7 Individual remissions below \u20b91,000 excluded<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 20<\/td><td class=\"r-title\">Rules on Remissions<\/td><td class=\"r-key\">Departments may make rules defining remissions and abandonments of revenue<\/td><\/tr>\n <tr><td colspan=\"3\" style=\"background:#e8f0ff;font-weight:700;color:#1a3a6b;font-size:12px;letter-spacing:.06em;text-transform:uppercase;padding:8px 14px\">Section I \u2014 General Principles Relating to Expenditure and Payment of Money (Rules 21\u201332)<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 21<\/td><td class=\"r-title\">Standards of Financial Propriety<\/td><td class=\"r-key\">4 principles \u00b7 Ordinary prudence \u00b7 No excess \u00b7 No self-benefit \u00b7 No private benefit except court-enforceable or policy<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 22<\/td><td class=\"r-title\">Expenditure from Public Funds<\/td><td class=\"r-key\">No expenditure unless sanctioned by competent authority \u00b7 Applies to CF, Contingency Fund, Public Account<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 23<\/td><td class=\"r-title\">Delegation of Financial Powers<\/td><td class=\"r-key\">Powers delegated via DFPR \u00b7 Undelegated powers vest in Finance Ministry<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 24<\/td><td class=\"r-title\">Consultation with Financial Advisers<\/td><td class=\"r-key\">All draft memos for EFC\/PIB\/CEE\/CCEA\/Cabinet \u2192 after FA consultation \u00b7 Confirmation in memo mandatory<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 25<\/td><td class=\"r-title\">Provision of Funds for Sanction<\/td><td class=\"r-key\">Sanction must indicate source of funds \u00b7 Must state if valid appropriation\/re-appropriation available<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 26<\/td><td class=\"r-title\">Responsibility of Controlling Officer<\/td><td class=\"r-key\">4 duties \u2014 No excess \u00b7 Right purpose \u00b7 Public interest \u00b7 Adequate control mechanism<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 27<\/td><td class=\"r-title\">Date of Effect of Sanction<\/td><td class=\"r-key\">Comes into force from date of issue \u00b7 For temporary posts \u2014 date of creation to be specified<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 28<\/td><td class=\"r-title\">Powers in Special Matters<\/td><td class=\"r-key\">No grant of land \/ assignment of revenue \/ mineral rights \/ relinquishment without Finance Ministry consent<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 29<\/td><td class=\"r-title\">Communication of Sanctions<\/td><td class=\"r-key\">All sanctions to be communicated to Audit & Accounts Officers \u00b7 12 sub-clauses for procedure<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 30<\/td><td class=\"r-title\">Lapse of Sanctions<\/td><td class=\"r-key\">Lapse if no payment in 12 months \u00b7 3 provisos (dept regulations \/ specific FY \/ stores with accepted tenders)<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 31<\/td><td class=\"r-title\">Non-lapsing Sanctions<\/td><td class=\"r-key\">Additions to permanent establishment under general scheme \/ allowances for post \u2014 do not lapse<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 32<\/td><td class=\"r-title\">Remission of Disallowances \/ Write-off of Overpayments<\/td><td class=\"r-key\">As per DFPR and instructions issued thereunder<\/td><\/tr>\n <tr><td colspan=\"3\" style=\"background:#f0faf5;font-weight:700;color:#1a6b5a;font-size:12px;letter-spacing:.06em;text-transform:uppercase;padding:8px 14px\">Section II \u2014 Defalcation and Losses (Rules 33\u201338)<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 33<\/td><td class=\"r-title\">Report of Losses (7 sub-rules)<\/td><td class=\"r-key\">Immediately to next higher authority + Statutory Audit Officer + Principal Accounts Officer \u00b7 2 exemptions \u00b7 2-stage reporting \u00b7 \u20b910,000 petty loss exemption<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 34<\/td><td class=\"r-title\">Loss due to Fire, Theft, Fraud<\/td><td class=\"r-key\">Losses above \u20b950,000 \u2192 reported to Police \u00b7 Police investigation report to be obtained<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 35<\/td><td class=\"r-title\">Loss of Immovable Property<\/td><td class=\"r-key\">Losses exceeding \u20b950,000 (buildings, works) due to natural causes \u2192 reported to Govt through usual channel<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 36<\/td><td class=\"r-title\">Report to Audit and Accounts Officers<\/td><td class=\"r-key\">Detailed report after full enquiry \u00b7 Copy simultaneously to Audit Officer and PAO<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 37<\/td><td class=\"r-title\">Responsibility for Losses<\/td><td class=\"r-key\">Personally responsible for own fraud\/negligence \u00b7 Also responsible for others' if contributed \u00b7 Dept proceedings per Appendix 1<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 38<\/td><td class=\"r-title\">Prompt Disposal of Loss Cases<\/td><td class=\"r-key\">All stages \u2014 detection, reporting, write-off, final disposal, action against delinquents \u2014 to be completed promptly<\/td><\/tr>\n <tr><td colspan=\"3\" style=\"background:#fffbe6;font-weight:700;color:#7a5500;font-size:12px;letter-spacing:.06em;text-transform:uppercase;padding:8px 14px\">Section III \u2014 Submission of Records and Information (Rules 39\u201341)<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 39<\/td><td class=\"r-title\">Demand for Information by Audit\/Accounts Officer<\/td><td class=\"r-key\">Afford all reasonable facilities to Audit Officer and PAO \u00b7 Furnish all information for accounts, reports, payments, internal audit<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 40<\/td><td class=\"r-title\">Non-withholding of Documents<\/td><td class=\"r-key\">No authority to withhold any information, books or documents from Audit\/Accounts Officer<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 41<\/td><td class=\"r-title\">Secret \/ Top Secret Files<\/td><td class=\"r-key\">Send personally to Head of Audit Office specifying classification \u00b7 Dealt with per standing instructions<\/td><\/tr>\n <\/tbody>\n <\/table>\n <\/div>\n\n \n <div style=\"background:#f0f4ff;border-left:5px solid #1a3a6b;padding:10px 18px;border-radius:0 6px 6px 0;margin:10px 0;font-weight:700;color:#1a3a6b;font-size:14px;letter-spacing:.04em;text-transform:uppercase\">Government Receipts \u2014 Rules 7\u201320<\/div>\n\n \n <div class=\"rule-block\" id=\"r7\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 7<\/span>\n <span class=\"rule-title\">All Moneys Received to be brought into Government Account<\/span>\n <\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udcb0<\/span><span>All moneys received by or on behalf of the Government \u2014 whether as <strong>dues of Government, for deposit, remittance, or otherwise<\/strong> \u2014 shall be <strong>brought into Government Account without delay<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcdc<\/span><span>This shall be in accordance with such general or special rules as may be issued under <strong>Articles 150 and 283(1)<\/strong> of the Constitution.<\/span><\/li>\n <\/ul>\n <div class=\"box-blue\">\n <div class=\"box-blue-lbl\">\ud83d\udccc Constitutional Basis<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\u2696\ufe0f<\/span><span><strong>Article 150:<\/strong> Accounts of the Union and States to be kept in such form as the President may, on advice of the C&AG, prescribe.<\/span><\/li>\n <li><span class=\"bi\">\u2696\ufe0f<\/span><span><strong>Article 283(1):<\/strong> Custody of the Consolidated Fund of India, the Contingency Fund of India, and payment of moneys into or withdrawal from such funds to be regulated by law made by Parliament.<\/span><\/li>\n <\/ul>\n <\/div>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"r8\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 8<\/span>\n <span class=\"rule-title\">Moneys into Public Account \u2014 Article 284 and Court Moneys<\/span>\n <\/div>\n <div class=\"sec-h\">Sub-rule (1) \u2014 Non-Revenue Moneys Received by Officers<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\u2696\ufe0f<\/span><span>Under <strong>Article 284<\/strong> of the Constitution, all moneys received by or deposited with any officer employed in connection with the affairs of the Union \u2014 <em>other than revenues or public moneys raised or received by Government<\/em> \u2014 shall be <strong>paid into the Public Account<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83c\udfdb\ufe0f<\/span><span>All moneys received by or deposited with the <strong>Supreme Court of India<\/strong>, or with any other Court <em>(other than a High Court)<\/em> within a <strong>Union Territory<\/strong>, shall also be dealt with similarly \u2014 paid into the Public Account.<\/span><\/li>\n <\/ul>\n <div class=\"sec-h\">Sub-rule (2) \u2014 Governing Rules<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccb<\/span><span>The head of account to which such moneys shall be credited and the procedure for withdrawal shall be governed by the:\n <ul class=\"blist-sub\">\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span><strong>Government Accounting Rules, 1990<\/strong>, and<\/span><\/li>\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span><strong>Central Government Account (Receipts and Payments) Rules, 1983<\/strong>, or such other general or special orders as may be issued in this behalf.<\/span><\/li>\n <\/ul>\n <\/span><\/li>\n <\/ul>\n <div class=\"box-amber\">\n <div class=\"box-amber-lbl\">\u2b50 Exam Point \u2014 Art. 284 vs Art. 266<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>Art. 266(1)<\/strong> \u2014 Consolidated Fund of India (revenues + loans raised by Govt).<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>Art. 266(2)<\/strong> \u2014 Public Account of India (moneys received on behalf of Govt, other than CF).<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>Art. 284<\/strong> \u2014 Non-revenue moneys received by officers \u2192 specifically directed to Public Account.<\/span><\/li>\n <\/ul>\n <\/div>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"r9\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 9<\/span>\n <span class=\"rule-title\">Duty of Department to Collect Receipts<\/span>\n <\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83c\udfdb\ufe0f<\/span><span>It is the <strong>duty of the Department of the Central Government<\/strong> concerned to ensure that the receipts and dues of the Government are:<\/span><\/li>\n <\/ul>\n <ul class=\"blist\" style=\"margin-left:30px;margin-top:8px\">\n <li><span class=\"bi\">1\ufe0f\u20e3<\/span><span><strong>Correctly assessed<\/strong><\/span><\/li>\n <li><span class=\"bi\">2\ufe0f\u20e3<\/span><span><strong>Promptly collected<\/strong><\/span><\/li>\n <li><span class=\"bi\">3\ufe0f\u20e3<\/span><span><strong>Duly credited<\/strong> to the Consolidated Fund or Public Account as the case may be.<\/span><\/li>\n <\/ul>\n <div class=\"box-red\">\n <span style=\"font-size:18px;flex-shrink:0;margin-top:2px\">\u26a0\ufe0f<\/span>\n <span><strong>Important:<\/strong> All three functions \u2014 assessment, collection and credit \u2014 are the department's responsibility. Failure in any one is a dereliction of duty.<\/span>\n <\/div>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"r10\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 10<\/span>\n <span class=\"rule-title\">Controlling Officer \u2014 Monthly Accounts and Reconciliation of Receipts<\/span>\n <\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udcca<\/span><span>The <strong>Controlling Officer<\/strong> shall arrange to obtain from his subordinate officers <strong>monthly accounts and returns<\/strong> in suitable form, claiming credit for the amounts paid into the treasury or bank.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udd04<\/span><span>He must <strong>compare these accounts with the statements of credits furnished by the Accounts Officer<\/strong> to verify that amounts reported as collected have been duly credited.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcc4<\/span><span>Each <strong>Accounts Officer<\/strong> shall send an extract from his accounts showing amounts brought to credit each month to the Controlling Officer concerned.<\/span><\/li>\n <\/ul>\n <div class=\"box-green\">\n <div class=\"box-green-lbl\">\ud83d\udccc Purpose<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\u2705<\/span><span>This monthly comparison ensures that <strong>all collections by subordinate officers are actually reaching the Government Account<\/strong> and are not being diverted or delayed.<\/span><\/li>\n <\/ul>\n <\/div>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"r11\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 11<\/span>\n <span class=\"rule-title\">Rules on Revenue Assessment and Receipt Books<\/span>\n <\/div>\n <div class=\"sec-h\">Sub-rule (1) \u2014 Departmental Regulations<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccb<\/span><span>Detailed rules and procedures regarding <strong>assessment, collection, allocation, remission and abandonment of revenue<\/strong> and other receipts shall be laid down in the <strong>regulations of the Department<\/strong> responsible for the same.<\/span><\/li>\n <\/ul>\n <div class=\"sec-h\">Sub-rule (2) \u2014 Receipt Books in Form GAR-6<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\uddc2\ufe0f<\/span><span>In departments where officers receive money on behalf of Government and issue receipts in <strong>Form GAR-6<\/strong>, the departmental regulations must provide for:\n <ul class=\"blist-sub\">\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span>Maintenance of a proper account of the <strong>receipt and issue of receipt books<\/strong>.<\/span><\/li>\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span>The number of receipt books to be <strong>issued at a time to each officer<\/strong>.<\/span><\/li>\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span>A check with the officer's accounts of the <strong>used books when returned<\/strong>.<\/span><\/li>\n <\/ul>\n <\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"r12\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 12<\/span>\n <span class=\"rule-title\">Outstanding Dues not to be Left Pending<\/span>\n <\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\u23f0<\/span><span>Amounts due to Government shall <strong>not be left outstanding without sufficient reasons<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccb<\/span><span>Where such amounts appear to be <strong>irrecoverable<\/strong>, the orders of the <strong>competent authority<\/strong> shall be obtained for their adjustment.<\/span><\/li>\n <\/ul>\n <div class=\"box-blue\">\n <div class=\"box-blue-lbl\">\ud83d\udccc Key Principle<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udca1<\/span><span>Outstanding dues are a risk of revenue loss. Officers must <strong>actively pursue collection<\/strong> and not let dues languish. If irrecoverable, formal orders are required before writing them off \u2014 unilateral abandonment is not permissible.<\/span><\/li>\n <\/ul>\n <\/div>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"r13\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 13<\/span>\n <span class=\"rule-title\">Credit Must Follow Actual Realisation \u2014 No Suspense Debit<\/span>\n <\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\u26d4<\/span><span>Unless specially authorised by any rule or order made by competent authority, <strong>no sums shall be credited as revenue by debit to a suspense head<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\u2705<\/span><span>The credit must <strong>follow and not precede<\/strong> actual realisation.<\/span><\/li>\n <\/ul>\n <div class=\"box-red\">\n <span style=\"font-size:18px;flex-shrink:0;margin-top:2px\">\u26a0\ufe0f<\/span>\n <span><strong>EXPLANATION:<\/strong> Crediting revenue before actual collection artificially inflates revenue figures and violates the basic accounting principle. Suspense heads are only temporary and must not be used to show unearned revenue.<\/span>\n <\/div>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"r14\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 14<\/span>\n <span class=\"rule-title\">Reporting of Revenue Collection Progress to Finance Ministry<\/span>\n <\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udcca<\/span><span>An <strong>Administrator or Head of a Department<\/strong> responsible for the collection of revenue shall <strong>keep the Finance Ministry fully informed<\/strong> of:\n <ul class=\"blist-sub\">\n <li><span class=\"bsi\">\ud83d\udcc8<\/span><span>The <strong>progress of collection of revenue<\/strong> under his control.<\/span><\/li>\n <li><span class=\"bsi\">\u26a0\ufe0f<\/span><span>All <strong>important variations<\/strong> in such collections as compared with the Budget Estimates.<\/span><\/li>\n <\/ul>\n <\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccb<\/span><span>This is subject to any general or special orders issued by the Department of the Central Government concerned.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"r15\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 15<\/span>\n <span class=\"rule-title\">Rents of Government Buildings and Lands<\/span>\n <\/div>\n <div class=\"sec-h\">Sub-rule (1) \u2014 Responsibility<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83c\udfe2<\/span><span>When the maintenance of any rentable building is entrusted to a civil department <em>(other than the Central Public Works Department)<\/em>, the <strong>Administrator or Head of Department concerned shall be responsible for the due recovery of rent<\/strong> thereof.<\/span><\/li>\n <\/ul>\n <div class=\"sec-h\">Sub-rule (2) \u2014 Procedure<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccb<\/span><span>The procedure for assessment and recovery of rent of any building hired out will be <strong>regulated generally by the rules applicable to buildings under the direct charge of CPWD<\/strong>.<\/span><\/li>\n <\/ul>\n <div class=\"sec-h\">Sub-rule (3) \u2014 Departmental Regulations<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udcc2<\/span><span>Detailed rules regarding <strong>demand and recovery of rent<\/strong> of Government buildings and lands are contained in the <strong>departmental regulations of the departments<\/strong> in charge of those buildings.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"r16\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 16<\/span>\n <span class=\"rule-title\">Fines \u2014 Realisation and Refund<\/span>\n <\/div>\n <div class=\"sec-h\">Sub-rule (1) \u2014 Realisation<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\u2696\ufe0f<\/span><span>Every authority having the power to <strong>impose and\/or realise a fine<\/strong> shall ensure that the money is:\n <ul class=\"blist-sub\">\n <li><span class=\"bsi\">\u2705<\/span><span><strong>Realised<\/strong><\/span><\/li>\n <li><span class=\"bsi\">\u2705<\/span><span><strong>Duly checked<\/strong><\/span><\/li>\n <li><span class=\"bsi\">\u2705<\/span><span><strong>Deposited into a treasury or bank<\/strong> as the case may be.<\/span><\/li>\n <\/ul>\n <\/span><\/li>\n <\/ul>\n <div class=\"sec-h\">Sub-rule (2) \u2014 Refunds<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\u26d4<\/span><span>Every authority having the power to <strong>refund fines<\/strong> shall ensure that:\n <ul class=\"blist-sub\">\n <li><span class=\"bsi\">\ud83d\udeab<\/span><span>No <strong>double refunds<\/strong> of amounts of fines collected are made.<\/span><\/li>\n <li><span class=\"bsi\">\ud83d\udeab<\/span><span>No refunds of fines <strong>not actually paid into a treasury or bank<\/strong> are made.<\/span><\/li>\n <\/ul>\n <\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"r17\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 17<\/span>\n <span class=\"rule-title\">Miscellaneous Demands<\/span>\n <\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udc40<\/span><span><strong>Accounts Officers<\/strong> shall watch the realisation of <strong>miscellaneous demands of Government<\/strong> not falling under the ordinary revenue administration.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccb<\/span><span>Examples include contributions from:\n <ul class=\"blist-sub\">\n <li><span class=\"bsi\">\ud83c\udfdb\ufe0f<\/span><span><strong>State Governments<\/strong><\/span><\/li>\n <li><span class=\"bsi\">\ud83c\udfd9\ufe0f<\/span><span><strong>Local Funds<\/strong><\/span><\/li>\n <li><span class=\"bsi\">\ud83c\udfd7\ufe0f<\/span><span><strong>Contractors<\/strong> and others towards <strong>establishment charges<\/strong><\/span><\/li>\n <\/ul>\n <\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"r18\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 18<\/span>\n <span class=\"rule-title\">Remission of Revenue<\/span>\n <\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\u26d4<\/span><span>A claim to revenue shall <strong>not be remitted or abandoned<\/strong> save with the <strong>sanction of the competent authority<\/strong>.<\/span><\/li>\n <\/ul>\n <div class=\"box-blue\">\n <div class=\"box-blue-lbl\">\ud83d\udccc Key Point<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udca1<\/span><span>Every rupee of Government revenue is public money. No officer can waive a Government's claim to revenue on his own \u2014 formal sanction from the authority empowered to remit is always required.<\/span><\/li>\n <\/ul>\n <\/div>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"r19\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 19<\/span>\n <span class=\"rule-title\">Annual Statement of Remissions of Revenue<\/span>\n <\/div>\n <div class=\"sec-h\">Sub-rule (1) \u2014 Annual Submission<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udcc5<\/span><span>Administrators and Heads of Departments <em>(other than those in the Department of Posts)<\/em> shall submit annually on <strong>1st June<\/strong> to the <strong>Audit Officer and Accounts Officer<\/strong> concerned, statements showing:\n <ul class=\"blist-sub\">\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span>Remissions of revenue and abandonments of claims to revenue <strong>sanctioned during the preceding year<\/strong> by competent authorities.<\/span><\/li>\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span>Exercised otherwise than by law or rule having the force of law.<\/span><\/li>\n <\/ul>\n <\/span><\/li>\n <li><span class=\"bi\">\ud83d\udca1<\/span><span><strong>Threshold:<\/strong> Individual remissions below <strong>\u20b91,000<\/strong> need not be included in the statements. <span class=\"tag-amber\">\u2b50 \u20b91,000 limit<\/span><\/span><\/li>\n <\/ul>\n <div class=\"sec-h\">Sub-rule (2) \u2014 Classification in the Statement<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccb<\/span><span>Remissions and abandonments should be <strong>classified broadly with reference to the grounds<\/strong> on which they were sanctioned.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcca<\/span><span>A <strong>total figure<\/strong> should be given for each class, with a <strong>brief explanation of circumstances<\/strong> leading to the remission for each class.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"r20\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 20<\/span>\n <span class=\"rule-title\">Departmental Rules on Remissions and Abandonments<\/span>\n <\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccb<\/span><span>Departments of the Central Government and Administrators may make rules <strong>defining remissions and abandonments of revenue<\/strong> for the purpose of Rule 19.<\/span><\/li>\n <\/ul>\n <\/div>\n\n \n <div style=\"background:#e8f0ff;border-left:5px solid #1a3a6b;padding:10px 18px;border-radius:0 6px 6px 0;margin:44px 0 10px;font-weight:700;color:#1a3a6b;font-size:14px;letter-spacing:.04em;text-transform:uppercase\">Section I \u2014 General Principles Relating to Expenditure and Payment of Money (Rules 21\u201332)<\/div>\n\n \n <div class=\"rule-div\" style=\"margin-top:8px\"><\/div>\n <div class=\"rule-block\" id=\"r21\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 21<\/span>\n <span class=\"rule-title\">Standards of Financial Propriety<\/span>\n <\/div>\n <p style=\"margin-bottom:14px;color:#444;font-size:15px\">Every officer incurring or authorising expenditure from public moneys should be guided by high standards of financial propriety and enforce financial order, strict economy, and compliance with all financial rules. The following <strong>four principles<\/strong> are specifically emphasised:<\/p>\n\n <div class=\"sec-h\">Principle I \u2014 Ordinary Prudence Standard<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udca1<\/span><span>Every officer is expected to exercise <strong>the same vigilance in respect of expenditure from public moneys as a person of ordinary prudence would exercise in respect of his own money<\/strong>.<\/span><\/li>\n <\/ul>\n\n <div class=\"sec-h\">Principle II \u2014 No Excess over Occasion<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udcb8<\/span><span>The expenditure should <strong>not be prima facie more than the occasion demands<\/strong>. Economy and proportionality are the watchwords.<\/span><\/li>\n <\/ul>\n\n <div class=\"sec-h\">Principle III \u2014 No Self-Benefit in Sanction<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\u26d4<\/span><span>No authority should exercise its powers of sanctioning expenditure to pass an order which will be <strong>directly or indirectly to its own advantage<\/strong>. No one shall be a judge in his own cause.<\/span><\/li>\n <\/ul>\n\n <div class=\"sec-h\">Principle IV \u2014 No Expenditure for Particular Person or Section<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udeab<\/span><span>Expenditure from public moneys should <strong>not be incurred for the benefit of a particular person or a section of the people<\/strong>, unless \u2014\n <ul class=\"blist-sub\">\n <li><span class=\"bsi\">\u2705<\/span><span><strong>(a)<\/strong> A claim for the amount could be <strong>enforced in a Court of Law<\/strong>, or<\/span><\/li>\n <li><span class=\"bsi\">\u2705<\/span><span><strong>(b)<\/strong> The expenditure is in pursuance of a <strong>recognised policy or custom<\/strong>.<\/span><\/li>\n <\/ul>\n <\/span><\/li>\n <\/ul>\n\n <div class=\"box-amber\">\n <div class=\"box-amber-lbl\">\u2b50 Note \u2014 Rule 21 vs. \"5 Canons\"<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\u26a0\ufe0f<\/span><span>GFR Rule 21 as enacted prescribes <strong>4 principles<\/strong> (not 5). The oft-cited \"5 Canons\" including \"No Loss of Interest\" is a popular study shorthand \u2014 but in the actual GFR text Rule 21 lists only the four principles above. Principle IV contains important <strong>two exceptions<\/strong> (court-enforceable or recognised policy) which are frequently tested.<\/span><\/li>\n <\/ul>\n <\/div>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"r22\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 22<\/span>\n <span class=\"rule-title\">Expenditure from Public Funds \u2014 Sanction is Mandatory<\/span>\n <\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\u26d4<\/span><span>No authority may <strong>incur any expenditure<\/strong> or enter into any liability involving expenditure or <strong>transfer of moneys for investment or deposit<\/strong> from public funds (Consolidated Fund \/ Contingency Fund \/ Public Accounts) unless the same has been <strong>sanctioned by a competent authority<\/strong>.<\/span><\/li>\n <\/ul>\n <div class=\"box-red\">\n <span style=\"font-size:18px;flex-shrink:0;margin-top:2px\">\u26a0\ufe0f<\/span>\n <span>This rule covers all three components of the Government Account \u2014 <strong>Consolidated Fund, Contingency Fund, and Public Account<\/strong>. Sanction is required across all three; no exception exists for moneys in the Public Account.<\/span>\n <\/div>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"r23\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 23<\/span>\n <span class=\"rule-title\">Delegation of Financial Powers<\/span>\n <\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccb<\/span><span>The financial powers of the Government have been delegated to various subordinate authorities vide the <strong>Delegation of Financial Powers Rules (DFPR)<\/strong>, as amended from time to time.<\/span><\/li>\n <li><span class=\"bi\">\ud83c\udfdb\ufe0f<\/span><span>The financial powers of the Government which have <strong>not been delegated<\/strong> to a subordinate authority shall <strong>vest in the Finance Ministry<\/strong>.<\/span><\/li>\n <\/ul>\n <div class=\"box-blue\">\n <div class=\"box-blue-lbl\">\ud83d\udccc Residual Powers<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udca1<\/span><span>DFPR creates the <strong>hierarchy of financial authority<\/strong>. Any power not explicitly delegated by DFPR flows upward to the Ministry of Finance. No vacuum exists in financial authority.<\/span><\/li>\n <\/ul>\n <\/div>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"r24\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 24<\/span>\n <span class=\"rule-title\">Consultation with Financial Advisers<\/span>\n <\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83e\udd1d<\/span><span>All <strong>draft memoranda<\/strong> for the following committees\/bodies shall be circulated by the Ministry or Department concerned <strong>after consultation with the Financial Adviser<\/strong> of that Ministry or Department:\n <ul class=\"blist-sub\">\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span><strong>Expenditure Finance Committee (EFC)<\/strong><\/span><\/li>\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span><strong>Public Investment Bureau (PIB)<\/strong><\/span><\/li>\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span><strong>Committee on Establishment Expenditure (CEE)<\/strong><\/span><\/li>\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span><strong>Cabinet Committee for Economic Affairs (CCEA)<\/strong><\/span><\/li>\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span><strong>Cabinet<\/strong><\/span><\/li>\n <\/ul>\n <\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcdd<\/span><span>A <strong>confirmation to this effect<\/strong> (that FA consultation has been done) shall be included in the draft memorandum at the <strong>circulation stage<\/strong>. <span class=\"tag-red\">\u2757 Exam point<\/span><\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"r25\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 25<\/span>\n <span class=\"rule-title\">Provision of Funds for Sanction<\/span>\n <\/div>\n <div class=\"sec-h\">Sub-rule (1) \u2014 Source to be Indicated<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccb<\/span><span>All sanctions to expenditure shall <strong>indicate the details of the provision in the relevant grant or appropriation<\/strong> wherefrom such expenditure is to be met.<\/span><\/li>\n <\/ul>\n <div class=\"sec-h\">Sub-rule (2) \u2014 Valid Appropriation Required<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udcca<\/span><span>All proposals for sanction to expenditure shall indicate whether such expenditure can be met by <strong>valid appropriation or re-appropriation<\/strong>.<\/span><\/li>\n <\/ul>\n <div class=\"sec-h\">Sub-rule (3) \u2014 Sanction Before Funds are Communicated<\/div>\n <div class=\"box-amber\">\n <div class=\"box-amber-lbl\">\u26a0\ufe0f Important Provision<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\u26a1<\/span><span>Where it becomes necessary to issue a sanction <strong>before funds are communicated<\/strong>, the sanction should specify that such expenditure is <strong>subject to funds being communicated in the budget of the year<\/strong>.<\/span><\/li>\n <\/ul>\n <\/div>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"r26\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 26<\/span>\n <span class=\"rule-title\">Responsibilities of the Controlling Officer in Respect of Budget Allocation<\/span>\n <\/div>\n <p style=\"margin-bottom:13px;color:#444;font-size:15px\">The Controlling Officer must ensure <strong>four things<\/strong> in respect of funds placed at his disposal:<\/p>\n <ul class=\"blist\">\n <li><span class=\"bi\">1\ufe0f\u20e3<\/span><span>That the <strong>expenditure does not exceed the budget allocation<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">2\ufe0f\u20e3<\/span><span>That the expenditure is <strong>incurred for the purpose for which funds have been provided<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">3\ufe0f\u20e3<\/span><span>That the expenditure is <strong>incurred in public interest<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">4\ufe0f\u20e3<\/span><span>That <strong>adequate control mechanisms are functioning<\/strong> in his Department for:\n <ul class=\"blist-sub\">\n <li><span class=\"bsi\">\ud83d\udd0d<\/span><span><strong>Prevention and detection of errors and irregularities<\/strong> in financial proceedings of subordinate offices.<\/span><\/li>\n <li><span class=\"bsi\">\ud83d\udee1\ufe0f<\/span><span>To guard against <strong>waste and loss of public money<\/strong>.<\/span><\/li>\n <\/ul>\n <\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"r27\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 27<\/span>\n <span class=\"rule-title\">Date of Effect of Sanction<\/span>\n <\/div>\n <div class=\"sec-h\">Sub-rule (1) \u2014 Comes into Force from Date of Issue<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udcc5<\/span><span>Subject to fulfillment of the provisions of DFPR, all rules, sanctions or orders shall <strong>come into force from the date of issue<\/strong>, unless any other date from which they shall come into force is specified therein.<\/span><\/li>\n <\/ul>\n <div class=\"sec-h\">Sub-rule (2) \u2014 Date of Creation for Temporary Posts<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udcdd<\/span><span>Orders sanctioning the creation of a <strong>temporary post<\/strong> should, in addition to the sanctioned duration, <strong>invariably specify the date from which it is to be created<\/strong>.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"r28\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 28<\/span>\n <span class=\"rule-title\">Powers in regard to Certain Special Matters<\/span>\n <\/div>\n <p style=\"margin-bottom:13px;color:#444;font-size:15px\">Except in pursuance of the general delegation made by, or with the approval of the President, a subordinate authority shall <strong>not<\/strong>, without the <strong>previous consent of the Finance Ministry<\/strong>, issue an order which involves:<\/p>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83c\udfde\ufe0f<\/span><span><strong>(i)<\/strong> Any <strong>grant of land, or assignment of revenue<\/strong>, or concession, grant, lease or licence of <strong>mineral or forest rights, or rights to water, power<\/strong> or any easement or privilege of such concessions, or<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcb8<\/span><span><strong>(ii)<\/strong> <strong>Relinquishment of revenue<\/strong> in any way.<\/span><\/li>\n <\/ul>\n <div class=\"box-red\">\n <span style=\"font-size:18px;flex-shrink:0;margin-top:2px\">\u26a0\ufe0f<\/span>\n <span><strong>Both categories require prior Finance Ministry consent.<\/strong> This rule safeguards against subordinate authorities alienating Government's valuable rights in land, revenue and natural resources without MoF oversight.<\/span>\n <\/div>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"r29\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 29<\/span>\n <span class=\"rule-title\">Procedure for Communication of Sanctions<\/span>\n <\/div>\n <p style=\"margin-bottom:13px;color:#444;font-size:15px\">All financial sanctions and orders issued by a competent authority <strong>shall be communicated to the Audit Officer and the Accounts Officer<\/strong>. The procedure is detailed in twelve sub-clauses, the key ones being:<\/p>\n\n <div class=\"sec-h\">Key Sub-clauses<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udd39<\/span><span><strong>(i)<\/strong> Sanctions relating to a <strong>matter concerning the Department proper<\/strong>, on the basis of which payment is to be made or authorised by the Accounts Officer \u2014 should be <strong>addressed to the Accounts Officer<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udd39<\/span><span><strong>(ii)<\/strong> <strong>All other sanctions<\/strong> should be accorded in the form of an Order \u2014 a copy thereof should be endorsed to the Accounts Officer concerned.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udd39<\/span><span><strong>(iii)<\/strong> For <strong>non-recurring expenditure<\/strong>, the sanctioning authority may accord sanction by <strong>signing or countersigning the bill or voucher<\/strong> instead of a separate sanction letter.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udd39<\/span><span><strong>(vi)<\/strong> All orders conveying sanctions to expenditure of a definite amount shall <strong>express the amount both in words and figures<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udd39<\/span><span><strong>(xi)<\/strong> Copies of all sanctions\/orders shall be endorsed to Audit Officers, <em>except<\/em> the following categories (which need not be sent to audit):\n <ul class=\"blist-sub\">\n <li><span class=\"bsi\">\ud83d\udeab<\/span><span>Advances to Central Govt. employees<\/span><\/li>\n <li><span class=\"bsi\">\ud83d\udeab<\/span><span>Appointment, promotion or transfer of Gazetted\/Non-Gazetted officers<\/span><\/li>\n <li><span class=\"bsi\">\ud83d\udeab<\/span><span>Creation, continuation or abolition of posts<\/span><\/li>\n <li><span class=\"bsi\">\ud83d\udeab<\/span><span>Handing over\/taking over charge<\/span><\/li>\n <li><span class=\"bsi\">\ud83d\udeab<\/span><span>GPF advances to Government servants<\/span><\/li>\n <li><span class=\"bsi\">\ud83d\udeab<\/span><span>Contingent expenditure under powers of Head of Office<\/span><\/li>\n <li><span class=\"bsi\">\ud83d\udeab<\/span><span>Other routine sanctions by Heads of Subordinate Officers<\/span><\/li>\n <\/ul>\n <\/span><\/li>\n <\/ul>\n <div class=\"box-green\">\n <div class=\"box-green-lbl\">\ud83d\udccc Special Rule for Union Territory Sanctions<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83c\udfdb\ufe0f<\/span><span>Orders issued by a Department of a Union Territory Government where Audit and Accounts <strong>have not been separated<\/strong> \u2192 communicated directly to the Audit authority. Where <strong>separated<\/strong> \u2192 copies endorsed to Audit authorities.<\/span><\/li>\n <\/ul>\n <\/div>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"r30\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 30<\/span>\n <span class=\"rule-title\">Lapse of Sanctions<\/span>\n <\/div>\n <div class=\"sec-h\">General Rule<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\u23f0<\/span><span>A sanction for any <strong>fresh charge<\/strong> shall, unless specifically renewed, <strong>lapse if no payment has been made<\/strong> (in whole or in part) during a period of <strong>twelve months<\/strong> from the date of issue. <span class=\"tag-red\">\u2757 12 months<\/span><\/span><\/li>\n <\/ul>\n <div class=\"sec-h\">Three Provisos \u2014 Exceptions<\/div>\n <div class=\"box-green\">\n <div class=\"box-green-lbl\">\u2705 When Sanctions Do NOT Lapse as per General Rule<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">1\ufe0f\u20e3<\/span><span><strong>Proviso (i):<\/strong> When the <strong>period of currency of the sanction is prescribed<\/strong> in departmental regulations or specified in the sanction itself \u2014 it lapses on the expiry of such period (not after 12 months).<\/span><\/li>\n <li><span class=\"bi\">2\ufe0f\u20e3<\/span><span><strong>Proviso (ii):<\/strong> When there is a <strong>specific provision<\/strong> in the sanction that expenditure would be met from the budget provision of a <strong>specified financial year<\/strong> \u2014 it lapses at the close of that financial year.<\/span><\/li>\n <li><span class=\"bi\">3\ufe0f\u20e3<\/span><span><strong>Proviso (iii) \u2014 Stores Purchase:<\/strong> A sanction shall <strong>not lapse<\/strong> if, in the case of purchase of stores, <strong>tenders have been accepted<\/strong> (for local\/direct purchase) or <strong>the indent has been placed<\/strong> (for Central Purchases) within the one-year period \u2014 even if actual payment has not been made.<\/span><\/li>\n <\/ul>\n <\/div>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"r31\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 31<\/span>\n <span class=\"rule-title\">Non-Lapsing of Certain Sanctions<\/span>\n <\/div>\n <p style=\"margin-bottom:13px;color:#444;font-size:15px\">Notwithstanding Rule 30, the following sanctions shall <strong>not lapse<\/strong>:<\/p>\n <ul class=\"blist\">\n <li><span class=\"bi\">\u2705<\/span><span>A sanction in respect of an <strong>addition to a permanent establishment made from year to year under a general scheme<\/strong> by a competent authority.<\/span><\/li>\n <li><span class=\"bi\">\u2705<\/span><span>A sanction in respect of an <strong>allowance sanctioned for a post or for a class of Government servants<\/strong> but not drawn by the officer(s) concerned.<\/span><\/li>\n <\/ul>\n <div class=\"box-blue\">\n <div class=\"box-blue-lbl\">\ud83d\udccc Rationale<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udca1<\/span><span>These recurring or structural sanctions are not \"fresh charges\" \u2014 they are ongoing obligations. Requiring their annual renewal would create unnecessary administrative burden. Hence they are exempted from the lapse rule.<\/span><\/li>\n <\/ul>\n <\/div>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"r32\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 32<\/span>\n <span class=\"rule-title\">Remission of Disallowances and Write-Off of Overpayments<\/span>\n <\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccb<\/span><span>The <strong>remission of disallowances by Audit<\/strong> and <strong>writing off of overpayments made to Government servants<\/strong> by competent authorities shall be in accordance with the provisions of the <strong>Delegation of Financial Powers Rules<\/strong> and instructions issued thereunder.<\/span><\/li>\n <\/ul>\n <\/div>\n\n \n <div style=\"background:#f0faf5;border-left:5px solid #2aab6e;padding:10px 18px;border-radius:0 6px 6px 0;margin:44px 0 10px;font-weight:700;color:#1a6b5a;font-size:14px;letter-spacing:.04em;text-transform:uppercase\">Section II \u2014 Defalcation and Losses (Rules 33\u201338)<\/div>\n\n \n <div class=\"rule-div\" style=\"margin-top:8px\"><\/div>\n <div class=\"rule-block\" id=\"r33\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 33<\/span>\n <span class=\"rule-title\">Report of Losses \u2014 Seven Sub-rules<\/span>\n <\/div>\n\n <div class=\"sec-h\">Sub-rule (1) \u2014 Mandatory Immediate Reporting<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udea8<\/span><span>Any loss or shortage of <strong>public moneys, departmental revenue, stamps, opium, stores or other Government property<\/strong> \u2014 irrespective of the cause of loss and manner of detection \u2014 shall be <strong>immediately reported<\/strong> by the subordinate authority to:\n <ul class=\"blist-sub\">\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span>The <strong>next higher authority<\/strong><\/span><\/li>\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span>The <strong>Statutory Audit Officer<\/strong><\/span><\/li>\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span>The concerned <strong>Principal Accounts Officer<\/strong><\/span><\/li>\n <\/ul>\n <\/span><\/li>\n <li><span class=\"bi\">\u2705<\/span><span>Reporting is required <strong>even when the loss has been made good<\/strong> by the party responsible for it.<\/span><\/li>\n <\/ul>\n <div class=\"box-green\">\n <div class=\"box-green-lbl\">\u2705 Two Categories of Losses Exempted from Reporting<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">1\ufe0f\u20e3<\/span><span><strong>Revenue assessment errors:<\/strong> (a) Mistakes discovered too late for supplementary claim; (b) Under-assessments overruled by higher authority after the time-limit under law has expired; (c) Refunds allowed on the ground that claims were time-barred.<\/span><\/li>\n <li><span class=\"bi\">2\ufe0f\u20e3<\/span><span><strong>Petty losses<\/strong> of value <strong>not exceeding \u20b910,000<\/strong>. <span class=\"tag-amber\">\u2b50 \u20b910,000 limit<\/span><\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"sec-h\">Sub-rule (2) \u2014 Serious Irregularities<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\u26a0\ufe0f<\/span><span>Cases involving <strong>serious irregularities<\/strong> shall also be brought to the notice of:\n <ul class=\"blist-sub\">\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span><strong>Financial Adviser or Chief Accounting Authority<\/strong> of the Ministry or Department<\/span><\/li>\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span><strong>Controller General of Accounts, Ministry of Finance<\/strong><\/span><\/li>\n <\/ul>\n <\/span><\/li>\n <\/ul>\n\n <div class=\"sec-h\">Sub-rule (3) \u2014 Two-Stage Reporting<\/div>\n <div class=\"box-blue\">\n <div class=\"box-blue-lbl\">\u26a0\ufe0f Initial Report + Final Report \u2014 Both Mandatory<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">1\ufe0f\u20e3<\/span><span><strong>Initial Report:<\/strong> Made as soon as a <strong>suspicion arises<\/strong> that a loss has taken place \u2014 no need to wait for confirmation.<\/span><\/li>\n <li><span class=\"bi\">2\ufe0f\u20e3<\/span><span><strong>Final Report:<\/strong> Sent after <strong>investigation<\/strong> indicating \u2014 nature and extent of loss, errors or neglect of rules which caused the loss, and <strong>prospects of recovery<\/strong>.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"sec-h\">Sub-rule (4) \u2014 Channel of Report and Disposal<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udd04<\/span><span>The complete report shall reach through proper channels to the <strong>Head of Department<\/strong>, who shall finally dispose of it under his delegated powers.<\/span><\/li>\n <li><span class=\"bi\">\ud83c\udfdb\ufe0f<\/span><span>Reports which he <strong>cannot finally dispose of<\/strong> under his delegated powers shall be submitted to the <strong>Finance Ministry<\/strong>.<\/span><\/li>\n <\/ul>\n\n <div class=\"sec-h\">Sub-rule (5) \u2014 Redrawal Pending Investigation<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udcb0<\/span><span>An amount lost through <strong>misappropriation, defalcation, embezzlement etc.<\/strong> may be <strong>redrawn on a simple receipt<\/strong> pending investigation, recovery or write-off \u2014 with the approval of the <strong>authority competent to write-off<\/strong> the loss in question.<\/span><\/li>\n <\/ul>\n\n <div class=\"sec-h\">Sub-rule (6) \u2014 Which Government Bears the Loss<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83c\udfdb\ufe0f<\/span><span>In cases of loss due to culpability of Government servants, the loss should be <strong>borne by the Central Govt. Department or State Govt. concerned<\/strong> with the transaction.<\/span><\/li>\n <li><span class=\"bi\">\u2705<\/span><span>If any recoveries are made from the erring official in cash, the receipt will be <strong>credited back to the Government that sustained the loss<\/strong>.<\/span><\/li>\n <\/ul>\n\n <div class=\"sec-h\">Sub-rule (7) \u2014 Irregular Cheques \/ Accounting of Receipts<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udcc4<\/span><span>All cases involving loss from <strong>erroneous or irregular issue of cheques<\/strong> or <strong>irregular accounting of receipts<\/strong> shall be reported to the <strong>Controller General of Accounts<\/strong> along with the circumstances \u2014 so that defects in rules or procedures can be remedied.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"r34\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 34<\/span>\n <span class=\"rule-title\">Loss of Government Property due to Fire, Theft, Fraud<\/span>\n <\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udd25<\/span><span>Departmental Officers shall, in addition to taking action under Rule 33, follow the provisions below in cases involving <strong>material loss or destruction of Government property<\/strong> as a result of fire, theft, fraud, etc.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\ude94<\/span><span>All losses <strong>above \u20b950,000<\/strong> due to suspected fire, theft, fraud, etc., shall be <strong>invariably reported to the Police<\/strong> for investigation as early as possible. <span class=\"tag-red\">\u2757 \u20b950,000 threshold for Police<\/span><\/span><\/li>\n <li><span class=\"bi\">\ud83e\udd1d<\/span><span>Once the matter is reported to the Police, all concerned must <strong>assist the Police in their investigation<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccb<\/span><span>A <strong>formal investigation report shall be obtained from the Police Authorities<\/strong> in all cases referred to them.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"r35\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 35<\/span>\n <span class=\"rule-title\">Loss of Immovable Property by Fire, Flood, Natural Causes<\/span>\n <\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83c\udf2a\ufe0f<\/span><span>All loss of <strong>immovable property exceeding \u20b950,000<\/strong> \u2014 such as buildings, communications, or other works \u2014 caused by <strong>fire, flood, cyclone, earthquake or any other natural cause<\/strong> \u2014 shall be <strong>reported at once<\/strong> by the subordinate authority to Government through the usual channel. <span class=\"tag-red\">\u2757 \u20b950,000 threshold<\/span><\/span><\/li>\n <li><span class=\"bi\">\ud83d\udce2<\/span><span>All <strong>other losses<\/strong> (below \u20b950,000) should be <strong>immediately brought to the notice of the next higher authority<\/strong>.<\/span><\/li>\n <\/ul>\n <div class=\"box-amber\">\n <div class=\"box-amber-lbl\">\u2b50 Rules 34 vs 35 \u2014 Key Distinction<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udd25<\/span><span><strong>Rule 34:<\/strong> Loss of <strong>movable Government property<\/strong> due to fire\/theft\/fraud \u2192 Police report (above \u20b950,000).<\/span><\/li>\n <li><span class=\"bi\">\ud83c\udfe2<\/span><span><strong>Rule 35:<\/strong> Loss of <strong>immovable property<\/strong> due to natural causes \u2192 Report to Government through usual channel (above \u20b950,000).<\/span><\/li>\n <\/ul>\n <\/div>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"r36\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 36<\/span>\n <span class=\"rule-title\">Detailed Report to Audit and Accounts Officers<\/span>\n <\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udd0e<\/span><span>After a <strong>full enquiry<\/strong> into the cause and extent of the loss has been made, the <strong>detailed report<\/strong> should be sent by the subordinate authority concerned to Government through the proper channel.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcec<\/span><span>A <strong>copy of the report or an abstract thereof<\/strong> shall be <strong>simultaneously forwarded<\/strong> to the <strong>Audit Officer<\/strong> and the <strong>Pay and Accounts Officer<\/strong>.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"r37\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 37<\/span>\n <span class=\"rule-title\">Responsibility for Losses<\/span>\n <\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udc64<\/span><span>An officer shall be held <strong>personally responsible<\/strong> for any loss sustained by the Government through <strong>fraud or negligence on his own part<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udd17<\/span><span>He shall also be held <strong>personally responsible for any loss arising from fraud or negligence of any other officer<\/strong> to the extent to which it may be shown that <strong>he contributed to the loss<\/strong> by his own action or negligence.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccb<\/span><span>Departmental proceedings for assessment of responsibility shall be conducted according to the instructions contained in <strong>Appendix 1<\/strong> and those issued by the <strong>Ministry of Personnel<\/strong> from time to time.<\/span><\/li>\n <\/ul>\n <div class=\"box-red\">\n <span style=\"font-size:18px;flex-shrink:0;margin-top:2px\">\u26a0\ufe0f<\/span>\n <span><strong>Contributory Liability:<\/strong> Even if an officer did not personally commit the fraud or negligence, he is liable if it can be shown he contributed to the loss by his inaction or failure of supervision. There is no escape from supervisory responsibility.<\/span>\n <\/div>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"r38\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 38<\/span>\n <span class=\"rule-title\">Prompt Disposal of Cases of Loss<\/span>\n <\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\u26a1<\/span><span>Action at <strong>each stage<\/strong> of detection, reporting, write-off, and final disposal shall be completed <strong>promptly<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udc6e<\/span><span><strong>Special attention<\/strong> must be given to:\n <ul class=\"blist-sub\">\n <li><span class=\"bsi\">\u2696\ufe0f<\/span><span>Action against <strong>delinquents<\/strong>.<\/span><\/li>\n <li><span class=\"bsi\">\ud83d\udee1\ufe0f<\/span><span><strong>Remedial measures<\/strong> taken to strengthen the control system.<\/span><\/li>\n <\/ul>\n <\/span><\/li>\n <\/ul>\n <\/div>\n\n \n <div style=\"background:#fffbe6;border-left:5px solid #c9a227;padding:10px 18px;border-radius:0 6px 6px 0;margin:44px 0 10px;font-weight:700;color:#7a5500;font-size:14px;letter-spacing:.04em;text-transform:uppercase\">Section III \u2014 Submission of Records and Information (Rules 39\u201341)<\/div>\n\n \n <div class=\"rule-div\" style=\"margin-top:8px\"><\/div>\n <div class=\"rule-block\" id=\"r39\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 39<\/span>\n <span class=\"rule-title\">Demand for Information by Audit or Accounts Officer<\/span>\n <\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83e\udd1d<\/span><span>A subordinate authority shall <strong>afford all reasonable facilities<\/strong> to the <strong>Audit Officer<\/strong> and <strong>Pay and Accounts Officer<\/strong> for the discharge of his functions.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcc4<\/span><span>Shall furnish the <strong>fullest possible information<\/strong> required for:\n <ul class=\"blist-sub\">\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span>Preparation of any <strong>official account or report<\/strong><\/span><\/li>\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span><strong>Payments<\/strong><\/span><\/li>\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span><strong>Internal audit<\/strong><\/span><\/li>\n <\/ul>\n <\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"r40\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 40<\/span>\n <span class=\"rule-title\">Non-withholding of Documents from Audit<\/span>\n <\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\u26d4<\/span><span>A subordinate authority shall <strong>not withhold any information, books or other documents<\/strong> required by the <strong>Audit Officer or Accounts Officer<\/strong>.<\/span><\/li>\n <\/ul>\n <div class=\"box-red\">\n <span style=\"font-size:18px;flex-shrink:0;margin-top:2px\">\u26a0\ufe0f<\/span>\n <span><strong>Absolute obligation.<\/strong> There is no discretion here \u2014 withholding documents from audit is a serious misconduct and is actionable under the Conduct Rules. The only exception is for classified files, which are handled under Rule 41.<\/span>\n <\/div>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"r41\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 41<\/span>\n <span class=\"rule-title\">Secret and Top Secret Files<\/span>\n <\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udd12<\/span><span>If the contents of any file are categorised as <strong>'Secret' or 'Top Secret'<\/strong>, the file may be sent <strong>personally to the Head of the Audit Office<\/strong>, specifying this fact.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccb<\/span><span>The Head of the Audit Office will then deal with it in accordance with the <strong>standing instructions for handling and custody of such classified documents<\/strong>.<\/span><\/li>\n <\/ul>\n <div class=\"box-green\">\n <div class=\"box-green-lbl\">\ud83d\udccc Interaction with Rule 40<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udca1<\/span><span>Rule 41 <strong>does not override Rule 40<\/strong> \u2014 even classified files must be made available to the Head of Audit. The difference is only in the <em>manner<\/em> \u2014 they are sent personally and dealt with as per classified document procedures, not through normal channels.<\/span><\/li>\n <\/ul>\n <\/div>\n <\/div>\n\n <div class=\"box-amber\" style=\"margin-top:36px\">\n <div class=\"box-amber-lbl\">\u2b50 Numbers to Remember \u2014 Chapter 2<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>4 Principles<\/strong> of Financial Propriety (R.21) \u00b7 <strong>4 Duties<\/strong> of Controlling Officer (R.26)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>\u20b91,000<\/strong> \u2014 individual remissions below this excluded from annual statement (R.19)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>\u20b910,000<\/strong> \u2014 petty losses below this exempted from mandatory loss reporting (R.33)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>\u20b950,000<\/strong> \u2014 threshold for Police reporting (movable, R.34) and Govt. reporting (immovable, R.35)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>12 months<\/strong> \u2014 period after which sanction lapses if no payment made (R.30)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>1st June<\/strong> \u2014 annual statement of remissions to be submitted to Audit & Accounts Officer (R.19)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>5 bodies<\/strong> \u2014 draft memos for EFC \/ PIB \/ CEE \/ CCEA \/ Cabinet \u2192 FA consultation mandatory (R.24)<\/span><\/li>\n <\/ul>\n <\/div>\n <\/div>\n\n\n <div id=\"ch3\" class=\"ch-block\">\n\n <div class=\"ch-banner\">\n <div class=\"ch-num\">Chapter 3<\/div>\n <div class=\"ch-title\">Budget Formulation and Implementation<\/div>\n <div class=\"ch-range\">Rules 42 to 70 \u00b7 Two Sections: Budget Formulation \u00b7 Control of Expenditure Against Budget<\/div>\n <\/div>\n\n \n <div class=\"idx-outer\">\n <div class=\"idx-lbl\">Rules at a Glance<\/div>\n <table class=\"idx-table\">\n <thead><tr><th style=\"width:110px\">Rule No.<\/th><th>Rule Title<\/th><th>Key Point<\/th><\/tr><\/thead>\n <tbody>\n <tr><td colspan=\"3\" style=\"background:#f0f4ff;font-weight:700;color:#1a3a6b;font-size:12px;letter-spacing:.06em;text-transform:uppercase;padding:8px 14px\">Budget Formulation (Rules 42\u201356)<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 42<\/td><td class=\"r-title\">Financial Year<\/td><td class=\"r-key\">1 April \u2013 31 March<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 43<\/td><td class=\"r-title\">Presentation of Budget to Parliament<\/td><td class=\"r-key\">Art.112(1) \u00b7 Finance Minister lays AFS before both Houses \u00b7 Railway Budget merged w.e.f. 2017-18 \u00b7 Art.112\u2013116 governs \u00b7 MoF Budget Division issues guidelines<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 44<\/td><td class=\"r-title\">Contents of Budget<\/td><td class=\"r-key\">Revenue estimates \u00b7 Expenditure per programme\/scheme\/project \u00b7 Interest & debt servicing \u00b7 Any other prescribed information<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 45<\/td><td class=\"r-title\">Receipt Estimates<\/td><td class=\"r-key\">Prepared by estimating authority \u00b7 Major Head\u2013wise \u00b7 Break-up of Minor\/Sub\/Detailed heads \u00b7 Actuals of past 3 years \u00b7 Cogent reasons for major variations<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 46<\/td><td class=\"r-title\">Non-Tax Revenues<\/td><td class=\"r-key\">Collected through all Ministries\/Depts and autonomous bodies \u00b7 Tax revenues etc. managed by MoF departments<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 47<\/td><td class=\"r-title\">User Charges<\/td><td class=\"r-key\">Must recover current cost + reasonable return \u00b7 Deviations recorded with reasons \u00b7 Reviewed every 3 years \u00b7 Fixed through Rules\/Executive orders (not statute) wherever possible<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 48<\/td><td class=\"r-title\">Dividends and Profits<\/td><td class=\"r-key\">CPSEs must pay dividend promptly after AGM decision \u00b7 Ministry to monitor \u00b7 As per DIPAM guidelines<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 49<\/td><td class=\"r-title\">Receipts Portal (e-Receipts)<\/td><td class=\"r-key\">All Ministries\/Depts to migrate to e-Receipts \u00b7 Prompt credit to Government account<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 50<\/td><td class=\"r-title\">Expenditure Estimates<\/td><td class=\"r-key\">Charged vs Voted separated \u00b7 Revenue vs Capital separated \u00b7 Up to object head \u00b7 Scrutinised by FA \u2192 approved by Secretary \u2192 sent to Budget Division<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 51<\/td><td class=\"r-title\">Demands for Grants<\/td><td class=\"r-key\">Generally 1 DFG per Ministry \u00b7 Main DFG by MoF Budget Division \u00b7 Detailed DFG by Ministry before DRSC<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 52<\/td><td class=\"r-title\">Form of AFS and DFG<\/td><td class=\"r-key\">Form prescribed by Finance Ministry \u00b7 No change without MoF approval \u00b7 Major head provisions in Detailed DFG must match Demands for Grants<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 53<\/td><td class=\"r-title\">Acceptance and Inclusion of Estimates<\/td><td class=\"r-key\">Scrutinised in Budget Division \u00b7 Secy (Expenditure) holds pre-budget meetings \u00b7 Final estimates incorporated in Budget documents<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 54<\/td><td class=\"r-title\">Outcome Budget<\/td><td class=\"r-key\">DoE + NITI Aayog + Ministry \u00b7 Links outlays to outputs\/outcomes \u00b7 Measurable\/quantitative terms \u00b7 Based on MTEF projections \u00b7 Performance determines continuation & allocation<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 55<\/td><td class=\"r-title\">Vote on Account<\/td><td class=\"r-key\">Pending Appropriation Bill \u2192 MoF obtains Vote on Account under Art.116 \u00b7 Not to be used for New Service<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 56<\/td><td class=\"r-title\">Communication of Grants<\/td><td class=\"r-key\">After Appropriation Bill \u2192 MoF communicates to Ministries \u2192 Ministries distribute to subordinate formations \u2192 also communicated to PAOs<\/td><\/tr>\n <tr><td colspan=\"3\" style=\"background:#e8f0ff;font-weight:700;color:#1a3a6b;font-size:12px;letter-spacing:.06em;text-transform:uppercase;padding:8px 14px\">Section II \u2014 Control of Expenditure Against Budget (Rules 57\u201370)<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 57<\/td><td class=\"r-title\">Responsibility for Control of Expenditure (8 sub-rules)<\/td><td class=\"r-key\">Dept responsible through HoDs\/COs\/DDOs \u00b7 Grant usable only in FY \u00b7 No excess without Supplementary Grant or CF Advance \u00b7 Monthly reconciliation: DDO\u2194PAO \u00b7 Quarterly certificate by 15th of 2nd month after quarter end \u00b7 GFR forms 5,6,7,8,9 maintained<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 58<\/td><td class=\"r-title\">Liability Register<\/td><td class=\"r-key\">CO to obtain liability statements in Form GFR 3-A monthly from October \u00b7 CO to maintain Liability Register in Form GFR 3<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 59<\/td><td class=\"r-title\">Estimating Savings or Excesses<\/td><td class=\"r-key\">HoD\/CO must be in position to estimate likelihood of savings or excesses every month<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 60<\/td><td class=\"r-title\">Disproportionate Expenditure<\/td><td class=\"r-key\">Accounts Officer reports to HoD on first appearance \u00b7 But ultimate responsibility rests with authority administering the grant<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 61<\/td><td class=\"r-title\">Excess Expenditure<\/td><td class=\"r-key\">PAO shall not allow payment in excess of Budget provisions without CAA's approval \u00b7 FA\/CAA must ensure funds available through Re-appropriation or SDG<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 62<\/td><td class=\"r-title\">Surrender of Savings<\/td><td class=\"r-key\">Surrender to Finance Ministry by prescribed dates \u00b7 Savings surrendered immediately on foresight \u00b7 No reserve for future excesses \u00b7 Rush of expenditure in closing months = breach of financial propriety \u00b7 FA to ensure adherence to Monthly & Quarterly Expenditure Plans<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 63<\/td><td class=\"r-title\">Expenditure on New Service<\/td><td class=\"r-key\">No expenditure on New Service unless Supplementary Grant or CF Advance obtained<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 64<\/td><td class=\"r-title\">Additional Allotment for Excess<\/td><td class=\"r-key\">Subordinate authority must get additional allotment before incurring excess \u00b7 Disbursing Officer cannot self-authorise excess \u00b7 Take orders of administrative authority \u2192 Re-appropriation or SDG or CF Advance<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 65<\/td><td class=\"r-title\">Re-appropriation of Funds<\/td><td class=\"r-key\">Between primary units within a grant \u00b7 Before close of FY \u00b7 Only from units with expected savings \u00b7 Not to create false savings with intent to restore \u00b7 Supported by Form GFR 1 \u00b7 Reasons for saving\/excess of \u20b91 lakh+ to be stated \u00b7 Copy to Accounts Officer<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 66<\/td><td class=\"r-title\">Supplementary Grants<\/td><td class=\"r-key\">If no savings within grant or New Service \u2014 Supplementary Grant under Art.115(1) before payment<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 67<\/td><td class=\"r-title\">Advance from Contingency Fund<\/td><td class=\"r-key\">Unforeseen expenditure + no time for Supplementary Demand \u00b7 Art.267(1) \u00b7 Also for excess over Vote on Account \u00b7 Procedure as per CF of India (Amendment) Rules, 2021<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 68<\/td><td class=\"r-title\">Inevitable Payments<\/td><td class=\"r-key\">Money indisputably payable shall not ordinarily be left unpaid \u00b7 Provision for anticipated liabilities must be in DFG<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 69<\/td><td class=\"r-title\">Pre-check of Bills<\/td><td class=\"r-key\">Appendix 10 contains procedure for Accounts Office check against provision of funds<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 70<\/td><td class=\"r-title\">Duties of Chief Accounting Authority (Secretary)<\/td><td class=\"r-key\">9 duties \u2014 financial management \u00b7 proper use of funds \u00b7 effective\/efficient\/economical use \u00b7 appear before PAC \u00b7 monitor programme performance \u00b7 expenditure statements \u00b7 internal controls \u00b7 procurement procedures \u00b7 collect dues & avoid unauthorised expenditure<\/td><\/tr>\n <\/tbody>\n <\/table>\n <\/div>\n\n \n <div style=\"background:#f0f4ff;border-left:5px solid #1a3a6b;padding:10px 18px;border-radius:0 6px 6px 0;margin:10px 0;font-weight:700;color:#1a3a6b;font-size:14px;letter-spacing:.04em;text-transform:uppercase\">Budget Formulation \u2014 Rules 42\u201356<\/div>\n\n \n <div class=\"rule-block\" id=\"ch3r42\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 42<\/span>\n <span class=\"rule-title\">Financial Year<\/span>\n <\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udcc5<\/span><span>The <strong>financial year of the Government<\/strong> shall commence on the <strong>1st day of April<\/strong> of each year and end on the <strong>31st day of March<\/strong> of the following year.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch3r43\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 43<\/span>\n <span class=\"rule-title\">Presentation of Budget to Parliament<\/span>\n <\/div>\n <div class=\"sec-h\">Sub-rule (1) \u2014 Annual Financial Statement<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83c\udfdb\ufe0f<\/span><span>In accordance with <strong>Article 112(1)<\/strong> of the Constitution, the <strong>Finance Minister<\/strong> shall arrange to lay before both the Houses of Parliament an <strong>Annual Financial Statement<\/strong> (also known as the 'Budget') showing the estimated receipts and expenditure of the Central Government in respect of a financial year, <strong>before the commencement of that year<\/strong>.<\/span><\/li>\n <\/ul>\n <div class=\"sec-h\">Sub-rule (2) \u2014 Merger of Railway Budget<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\ude82<\/span><span>The receipts and expenditure of the <strong>Railways<\/strong> (a departmental commercial organisation) form part of the Government's receipts and expenditure and are included in the Annual Financial Statement.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcc5<\/span><span>With the <strong>merger of Railway Budget with the General Budget<\/strong>, the Demands for Grants and the Statement of Budget Estimates of Railways shall be part of the General Budget <strong>with effect from 2017-18<\/strong>. <span class=\"tag-amber\">\u2b50 Exam point<\/span><\/span><\/li>\n <\/ul>\n <div class=\"sec-h\">Sub-rule (3) \u2014 Constitutional Provisions<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\u2696\ufe0f<\/span><span>The provisions for preparation, formulation and submission of budget to Parliament are contained in <strong>Articles 112 to 116<\/strong> of the Constitution of India.<\/span><\/li>\n <\/ul>\n <div class=\"sec-h\">Sub-rule (4) \u2014 MoF Budget Division Guidelines<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccb<\/span><span>The <strong>Ministry of Finance, Budget Division<\/strong> shall issue guidelines for preparation of budget estimates from time to time. All Ministries\/Departments shall <strong>comply in full<\/strong> with these guidelines.<\/span><\/li>\n <\/ul>\n <div class=\"box-blue\">\n <div class=\"box-blue-lbl\">\ud83d\udccc Constitutional Articles \u2014 Budget Quick Reference<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\u2696\ufe0f<\/span><span><strong>Art. 112<\/strong> \u2014 Annual Financial Statement (Budget) \u00b7 <strong>Art. 113<\/strong> \u2014 Procedure for Demands for Grants<\/span><\/li>\n <li><span class=\"bi\">\u2696\ufe0f<\/span><span><strong>Art. 114<\/strong> \u2014 Appropriation Bill \u00b7 <strong>Art. 115<\/strong> \u2014 Supplementary Grants \u00b7 <strong>Art. 116<\/strong> \u2014 Vote on Account<\/span><\/li>\n <\/ul>\n <\/div>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch3r44\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 44<\/span>\n <span class=\"rule-title\">Contents of the Budget<\/span>\n <\/div>\n <p style=\"margin-bottom:13px;color:#444;font-size:15px\">The budget shall contain the following:<\/p>\n <ul class=\"blist\">\n <li><span class=\"bi\">1\ufe0f\u20e3<\/span><span>Estimates of all <strong>revenues expected to be raised<\/strong> during the financial year to which the budget relates.<\/span><\/li>\n <li><span class=\"bi\">2\ufe0f\u20e3<\/span><span>Estimates of all <strong>expenditure for each programme, scheme and project<\/strong> in that financial year.<\/span><\/li>\n <li><span class=\"bi\">3\ufe0f\u20e3<\/span><span>Estimates of all <strong>interest and debt servicing charges<\/strong> and any <strong>repayments on loans<\/strong> in that financial year.<\/span><\/li>\n <li><span class=\"bi\">4\ufe0f\u20e3<\/span><span><strong>Any other information<\/strong> as may be prescribed.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch3r45\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 45<\/span>\n <span class=\"rule-title\">Receipt Estimates<\/span>\n <\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udcca<\/span><span>Detailed estimates of receipts shall be prepared by the <strong>estimating authorities separately for each Major Head of Account<\/strong> in the prescribed form.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccb<\/span><span>For each Major Head, the estimating authority shall give the <strong>break-up of the Minor \/ Sub-head \/ Detailed-wise estimate<\/strong> along with <strong>actuals of the past three years<\/strong>. <span class=\"tag-amber\">\u2b50 Past 3 years actuals<\/span><\/span><\/li>\n <li><span class=\"bi\">\ud83d\udd0d<\/span><span>Item-wise break-up of all major items of <strong>tax and non-tax revenues<\/strong> shall be clearly identified and depicted in the receipt estimates.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcdd<\/span><span>Any <strong>major variation<\/strong> in estimates with reference to past actuals or Budget Estimates shall be <strong>supported by cogent reasons<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83c\udfdb\ufe0f<\/span><span>Accounting heads under which major tax and non-tax revenues are collected shall be prescribed by the <strong>administrative Ministry in consultation with Budget Division, MoF<\/strong>.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch3r46\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 46<\/span>\n <span class=\"rule-title\">Non-Tax Revenues<\/span>\n <\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udcb0<\/span><span>While <strong>tax revenues, non-debt capital receipts<\/strong> (including disinvestments) and <strong>borrowings<\/strong> are managed by the various Departments of the Ministry of Finance \u2014<\/span><\/li>\n <li><span class=\"bi\">\ud83c\udfdb\ufe0f<\/span><span><strong>Non-tax revenues<\/strong> are collected through <strong>all Ministries\/Departments<\/strong> and other autonomous bodies and implementing agencies, comprising an important source of revenue for the Government.<\/span><\/li>\n <\/ul>\n <div class=\"box-amber\">\n <div class=\"box-amber-lbl\">\u2b50 Who Manages What<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>MoF departments manage:<\/strong> Tax revenues \u00b7 Non-debt capital receipts \u00b7 Disinvestments \u00b7 Borrowings<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>All Ministries\/Depts manage:<\/strong> Non-tax revenues (fees, user charges, dividends, fines, etc.)<\/span><\/li>\n <\/ul>\n <\/div>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch3r47\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 47<\/span>\n <span class=\"rule-title\">User Charges<\/span>\n <\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udca1<\/span><span>'User Charges' is an important component of non-tax revenues. Each Ministry\/Department shall identify the user charges levied by it and <strong>publish them on its website<\/strong>.<\/span><\/li>\n <\/ul>\n <div class=\"sec-h\">Rules for Fixing User Charges<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">1\ufe0f\u20e3<\/span><span>User charges must <strong>recover the current cost of providing services<\/strong> with a <strong>reasonable return on capital investment<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">2\ufe0f\u20e3<\/span><span>Any <strong>deviation<\/strong> from cost-recovery norms shall be <strong>specifically recorded with reasons<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">3\ufe0f\u20e3<\/span><span>Rates of user charges shall be <strong>linked with appropriate price indices<\/strong> and <strong>reviewed at least every three years<\/strong>. <span class=\"tag-red\">\u2757 Every 3 years<\/span><\/span><\/li>\n <li><span class=\"bi\">4\ufe0f\u20e3<\/span><span>To enable ease of revision, user charges shall be fixed, wherever possible, through <strong>Rules or executive orders \u2014 not through a statute<\/strong>. <span class=\"tag-amber\">\u2b50 Exam point<\/span><\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch3r48\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 48<\/span>\n <span class=\"rule-title\">Dividends and Profits from CPSEs<\/span>\n <\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udcc8<\/span><span>Dividends and profits \u2014 including the <strong>transfer of surplus from the Reserve Bank of India<\/strong> \u2014 are a major component of non-tax revenues.<\/span><\/li>\n <li><span class=\"bi\">\u26a1<\/span><span>Payment of dividends\/profits by <strong>Central Public Sector Enterprises (CPSEs)<\/strong> shall <strong>not be delayed<\/strong> and must be paid within an appropriate time frame <strong>immediately after the decision on dividend is taken in the AGM<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udc40<\/span><span>Ministries or Departments shall <strong>monitor timely payments<\/strong> of dividends and profits.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccb<\/span><span>The dividend shall be payable as per the <strong>guidelines issued by DIPAM<\/strong> (Department of Investment and Public Asset Management).<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch3r49\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 49<\/span>\n <span class=\"rule-title\">Receipts Portal \u2014 e-Receipts<\/span>\n <\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udcbb<\/span><span>The Government has provided a <strong>public portal for online collection<\/strong> of various non-tax revenues including fees and user charges through <strong>e-Receipts<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\ude80<\/span><span>All Ministries\/Departments shall take <strong>prompt measures for migration to e-Receipts<\/strong>, to ensure:\n <ul class=\"blist-sub\">\n <li><span class=\"bsi\">\ud83d\udc64<\/span><span><strong>Customer convenience<\/strong><\/span><\/li>\n <li><span class=\"bsi\">\u26a1<\/span><span><strong>Immediate credit of receipts<\/strong> to the Government account<\/span><\/li>\n <\/ul>\n <\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch3r50\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 50<\/span>\n <span class=\"rule-title\">Expenditure Estimates<\/span>\n <\/div>\n <div class=\"sec-h\">Sub-rule (1) \u2014 Charged vs Voted<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\u2696\ufe0f<\/span><span>The expenditure estimates shall show separately:\n <ul class=\"blist-sub\">\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span>Sums required to meet expenditure <strong>Charged on the Consolidated Fund<\/strong> under Article 112(3) \u2014 no vote required.<\/span><\/li>\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span>Sums required to meet <strong>other expenditure for which a vote of Lok Sabha is required<\/strong> under Article 113(2) \u2014 voted expenditure.<\/span><\/li>\n <\/ul>\n <\/span><\/li>\n <\/ul>\n <div class=\"sec-h\">Sub-rule (2) \u2014 Revenue vs Capital<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udcca<\/span><span>Estimates shall also distinguish provisions for <strong>Revenue Account<\/strong> from <strong>Capital Account<\/strong>, including loans by the Government and repayment of loans, treasury bills, cash management bills, and ways and means advances.<\/span><\/li>\n <\/ul>\n <div class=\"sec-h\">Sub-rule (3) \u2014 Level of Detail<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udd0d<\/span><span>Detailed estimates of expenditure shall be prepared up to the <strong>final unit of appropriation (Object Head)<\/strong> under prescribed Major and Minor Heads for both Revenue and Capital expenditure.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccb<\/span><span>Estimates shall include suitable provision for <strong>liabilities of the previous years<\/strong> to be discharged during the year.<\/span><\/li>\n <\/ul>\n <div class=\"sec-h\">Sub-rule (5) \u2014 Approval and Submission Process<\/div>\n <div class=\"box-blue\">\n <div class=\"box-blue-lbl\">\u26a0\ufe0f Three-Step Process for RE and BE<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">1\ufe0f\u20e3<\/span><span>Scrutinised by the <strong>Financial Adviser<\/strong> of the Ministry\/Department.<\/span><\/li>\n <li><span class=\"bi\">2\ufe0f\u20e3<\/span><span>Approved by the <strong>Secretary<\/strong> of the Administrative Ministry or Department.<\/span><\/li>\n <li><span class=\"bi\">3\ufe0f\u20e3<\/span><span>Forwarded to the <strong>Budget Division, Ministry of Finance<\/strong> in such manner and forms as may be prescribed.<\/span><\/li>\n <\/ul>\n <\/div>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch3r51\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 51<\/span>\n <span class=\"rule-title\">Demands for Grants<\/span>\n <\/div>\n <div class=\"sec-h\">Sub-rule (1) \u2014 Form of DFG<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccb<\/span><span>The estimates for expenditure for which a <strong>vote of Lok Sabha is required<\/strong> shall be in the form of <strong>Demands for Grants<\/strong>.<\/span><\/li>\n <\/ul>\n <div class=\"sec-h\">Sub-rule (2) \u2014 One per Ministry (Generally)<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83c\udfdb\ufe0f<\/span><span>Generally, <strong>one Demand for Grant<\/strong> is presented in respect of each Ministry or Department. However, for <strong>large Ministries<\/strong>, more than one Demand may be presented.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcca<\/span><span>Each Demand normally includes provisions required for a service \u2014 i.e., revenue expenditure, capital expenditure, grants to State and UT Governments, and loans and advances relating to the service.<\/span><\/li>\n <\/ul>\n <div class=\"sec-h\">Sub-rule (3) \u2014 Two Levels of Presentation to Parliament<\/div>\n <div class=\"box-blue\">\n <div class=\"box-blue-lbl\">\u26a0\ufe0f Main DFG vs Detailed DFG<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udcc4<\/span><span><strong>Main Demand for Grants:<\/strong> Presented to Parliament by the <strong>Ministry of Finance, Budget Division<\/strong>, along with the Annual Financial Statement.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcd1<\/span><span><strong>Detailed Demands for Grants:<\/strong> Laid on the Table of Lok Sabha by the concerned <strong>Ministries\/Departments<\/strong> for consideration by the <strong>Departmentally Related Standing Committee (DRSC)<\/strong>.<\/span><\/li>\n <\/ul>\n <\/div>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch3r52\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 52<\/span>\n <span class=\"rule-title\">Form of Annual Financial Statement and Demands for Grants<\/span>\n <\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccb<\/span><span>The form of the Annual Financial Statement and Demands for Grants shall be laid down by the <strong>Finance Ministry<\/strong> \u2014 no alteration of arrangement or classification shall be made <strong>without the approval of that Ministry<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udd11<\/span><span>The heads under which provision for expenditure shall be made shall be <strong>prescribed by the Finance Ministry in consultation with the Administrative Ministry or Department<\/strong>. The authorised heads for a year shall be as shown in the <strong>Detailed Demands for Grants passed by Parliament<\/strong> \u2014 no change without formal MoF approval.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udd04<\/span><span>The <strong>major head-wise provisions in the Detailed DFG must match<\/strong> with the provision made in the Demands for Grants presented by Budget Division, as appropriations are sought on the basis of Demands for Grants.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch3r53\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 53<\/span>\n <span class=\"rule-title\">Acceptance and Inclusion of Estimates<\/span>\n <\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udd0d<\/span><span>The estimates of receipts and expenditure of each Ministry\/Department shall be <strong>scrutinised in the Budget Division, Ministry of Finance<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83e\udd1d<\/span><span><strong>Secretary (Expenditure)<\/strong> may hold <strong>pre-budget meetings<\/strong> with Secretaries or Financial Advisers of Administrative Ministries\/Departments to discuss the totality of requirements.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcca<\/span><span>The estimates initially submitted may undergo changes as a result of scrutiny and pre-budget meetings. The <strong>final estimates arrived at on the basis of scrutiny and meetings shall be incorporated in the Budget documents<\/strong>.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch3r54\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 54<\/span>\n <span class=\"rule-title\">Outcome Budget<\/span>\n <\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83c\udfaf<\/span><span>After finalisation of budgetary allocations, the <strong>Department of Expenditure<\/strong> in consultation with <strong>NITI Aayog<\/strong> and the concerned Ministries shall prepare an <strong>Outcome Budget Statement<\/strong> linking outlays against each scheme\/project with the <strong>outputs\/deliverables and medium-term outcomes<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcca<\/span><span>Outputs\/deliverables shall be mandatorily given in <strong>measurable\/quantitative terms<\/strong> on the basis of parameters decided in advance, based on projections in the <strong>Medium-Term Expenditure Framework (MTEF) Statement<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udd12<\/span><span>Allocations shall be against a <strong>firm set of deliverables<\/strong> which shall be adhered to.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcc8<\/span><span>The <strong>performance against specified outcomes<\/strong> would form the basis of deciding on the <strong>continuation of the scheme and the quantum of budget allocation<\/strong>.<\/span><\/li>\n <\/ul>\n <div class=\"box-amber\">\n <div class=\"box-amber-lbl\">\u2b50 Key Concept \u2014 Outcome Budget<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udca1<\/span><span>The Outcome Budget is a shift from <strong>input-based budgeting to results-based budgeting<\/strong>. It connects money spent (outlays) to what is actually achieved (outcomes). Poor performance = reduced future allocation.<\/span><\/li>\n <\/ul>\n <\/div>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch3r55\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 55<\/span>\n <span class=\"rule-title\">Vote on Account<\/span>\n <\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\u23f0<\/span><span>If the <strong>Appropriation Bill<\/strong> is likely to be passed <em>after<\/em> the start of the financial year to which it corresponds, the <strong>Finance Ministry may obtain a 'Vote on Account'<\/strong> to cover expenditure for a brief period \u2014 in accordance with the provisions of <strong>Article 116<\/strong> of the Constitution.<\/span><\/li>\n <\/ul>\n <div class=\"box-red\">\n <span style=\"font-size:18px;flex-shrink:0;margin-top:2px\">\u26a0\ufe0f<\/span>\n <span><strong>Restriction:<\/strong> Funds made available under Vote on Account are <strong>not to be utilised for expenditure on a 'New Service'<\/strong>. Vote on Account is only for meeting routine, ongoing expenditure pending passage of the full Budget.<\/span>\n <\/div>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch3r56\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 56<\/span>\n <span class=\"rule-title\">Communication and Distribution of Grants and Appropriations<\/span>\n <\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udce4<\/span><span>After the <strong>Appropriation Bill<\/strong> relating to the Budget is passed, the <strong>Ministry of Finance<\/strong> shall communicate the grants and appropriations to the Ministries\/Departments.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udd04<\/span><span>Ministries\/Departments shall in turn <strong>distribute the same to their subordinate formations<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udce2<\/span><span>The distribution made shall also be <strong>communicated to the respective Pay and Accounts Officers<\/strong>, who shall exercise check against the allocation to each subordinate authority.<\/span><\/li>\n <\/ul>\n <div class=\"box-blue\">\n <div class=\"box-blue-lbl\">\ud83d\udccc Flow of Grant Communication<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\u27a1\ufe0f<\/span><span><strong>Appropriation Bill passed \u2192 MoF \u2192 Ministry\/Dept \u2192 Subordinate formations \u2192 PAOs informed<\/strong><\/span><\/li>\n <\/ul>\n <\/div>\n <\/div>\n\n \n <div style=\"background:#e8f0ff;border-left:5px solid #1a3a6b;padding:10px 18px;border-radius:0 6px 6px 0;margin:44px 0 10px;font-weight:700;color:#1a3a6b;font-size:14px;letter-spacing:.04em;text-transform:uppercase\">Section II \u2014 Control of Expenditure Against Budget (Rules 57\u201370)<\/div>\n\n \n <div class=\"rule-div\" style=\"margin-top:8px\"><\/div>\n <div class=\"rule-block\" id=\"ch3r57\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 57<\/span>\n <span class=\"rule-title\">Responsibility for Control of Expenditure (8 Sub-rules)<\/span>\n <\/div>\n\n <div class=\"sec-h\">Sub-rule (1) \u2014 Who is Responsible<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83c\udfdb\ufe0f<\/span><span>The <strong>Departments of the Central Government<\/strong> shall be responsible for the control of expenditure against the sanctioned grants and appropriations placed at their disposal.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udd17<\/span><span>Control shall be exercised through <strong>Heads of Departments, other Controlling Officers,<\/strong> and <strong>Disbursing Officers<\/strong> subordinate to them.<\/span><\/li>\n <\/ul>\n\n <div class=\"sec-h\">Sub-rule (2) \u2014 Grant Usable Only Within the Financial Year<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udcc5<\/span><span>A Grant or Appropriation can be utilised <strong>only to cover charges to be paid during the financial year<\/strong> of the Grant or Appropriation and adjusted in the account of the year.<\/span><\/li>\n <li><span class=\"bi\">\u26d4<\/span><span><strong>No charges<\/strong> against a Grant or Appropriation can be authorised <strong>after the expiry of the financial year<\/strong>.<\/span><\/li>\n <\/ul>\n\n <div class=\"sec-h\">Sub-rule (3) \u2014 No Excess Without Supplementary Grant or CF Advance<\/div>\n <div class=\"box-red\">\n <span style=\"font-size:18px;flex-shrink:0;margin-top:2px\">\u26a0\ufe0f<\/span>\n <span>No expenditure shall be incurred which may have the effect of <strong>exceeding the total grant or appropriation<\/strong> authorised by Parliament, except after obtaining a <strong>Supplementary Grant or Appropriation<\/strong> or an advance from the <strong>Contingency Fund<\/strong>. Since voted and charged portions \u2014 and revenue and capital sections \u2014 of a Grant are distinct, <strong>re-appropriation between them is not permissible<\/strong>. An excess in any portion is treated as an excess in the whole Grant.<\/span>\n <\/div>\n\n <div class=\"sec-h\">Sub-rule (4) \u2014 Procedure for DDOs and Controlling Officers<\/div>\n <div class=\"box-blue\">\n <div class=\"box-blue-lbl\">\u26a0\ufe0f GFR Forms Used in Expenditure Control<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccb<\/span><span><strong>Form GFR 5<\/strong> \u2014 Allocation register maintained by DDOs (minor\/sub-head wise); entries sent to HoD by <strong>3rd of each month<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccb<\/span><span><strong>Form GFR 6<\/strong> \u2014 Broadsheet maintained by Controlling Officer to monitor receipt of DDO returns.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccb<\/span><span><strong>Form GFR 7<\/strong> \u2014 Monthly compiled statement prepared by Controlling Officer (totals from DDOs + his own registers + adjustments from Accounts Officer).<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccb<\/span><span><strong>Form GFR 8<\/strong> \u2014 Consolidated account prepared by HoD showing complete expenditure up to end of preceding month.<\/span><\/li>\n <\/ul>\n <\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>DDO's key duties on bills: (a) Prepare charged and voted bills <strong>separately<\/strong>; (b) Enter <strong>complete accounts classification<\/strong> from major head to object head; (c) Enter <strong>progressive total of expenditure<\/strong> up to date on each bill.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcc5<\/span><span>Returns from DDOs due to HoD by <strong>3rd of each month<\/strong>. If no entries, a <strong>'Nil' statement must still be sent<\/strong>.<\/span><\/li>\n <\/ul>\n\n <div class=\"sec-h\">Sub-rule (5) \u2014 Monthly Reconciliation: DDO \u2194 PAO<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udd04<\/span><span>The <strong>Head of the Department and the Accounts Officer shall be jointly responsible<\/strong> for the monthly reconciliation of departmental figures with those in the Accounts Officer's books.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccb<\/span><span>DDOs shall maintain a <strong>Bill Register in Form TR 28-A<\/strong> and note all bills presented to the PAO.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcc5<\/span><span>DDO shall furnish a <strong>certificate of agreement<\/strong> to the PAO by the <strong>last day of the month following the month of accounts<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcca<\/span><span>HoD shall furnish a <strong>quarterly certificate<\/strong> to the Principal Accounts Officer certifying correctness of figures for the quarter \u2014 <strong>by the 15th of the second month following the end of each quarter<\/strong>. <span class=\"tag-red\">\u2757 Exam point<\/span><\/span><\/li>\n <\/ul>\n\n <div class=\"sec-h\">Sub-rule (6) \u2014 Departmental Figures to be Submitted to Ministry<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udcc5<\/span><span>Departments shall obtain Form GFR 8 figures from HoDs by the <strong>15th of the month following<\/strong> the month to which the returns relate.<\/span><\/li>\n <li><span class=\"bi\">\u26a0\ufe0f<\/span><span>If Accounts Office figures are found to be higher than departmental figures, the <strong>Accounts Office figures shall be assumed to be correct<\/strong> \u2014 as appropriation accounts are prepared on that basis.<\/span><\/li>\n <\/ul>\n\n <div class=\"sec-h\">Sub-rule (7) \u2014 Physical Progress Statements<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udcc8<\/span><span>Departments shall also obtain <strong>statements showing physical progress<\/strong> of the schemes \u2014 name of scheme, Budget provision, progressive expenditure, progress in physical terms, and detailed reasons for shortfalls or excess against both physical and financial targets.<\/span><\/li>\n <\/ul>\n\n <div class=\"sec-h\">Sub-rule (8) \u2014 Broadsheet in Form GFR 9<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccb<\/span><span>A <strong>Broadsheet in Form GFR 9<\/strong> shall be maintained by the Departments of Central Government or each HoD to watch the prompt receipt of various returns and to rectify any defaults.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch3r58\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 58<\/span>\n <span class=\"rule-title\">Liability Register for Expenditure Control<\/span>\n <\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccb<\/span><span>In order to maintain proper control over expenditure, a <strong>Controlling Officer<\/strong> shall obtain from the spending authorities <strong>liability statements in Form GFR 3-A<\/strong> every month, starting from the <strong>month of October<\/strong> in each financial year. <span class=\"tag-amber\">\u2b50 From October<\/span><\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcd2<\/span><span>The Controlling Officer shall also maintain a <strong>Liability Register in Form GFR 3<\/strong>.<\/span><\/li>\n <\/ul>\n <div class=\"box-green\">\n <div class=\"box-green-lbl\">\ud83d\udccc Why From October?<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udca1<\/span><span>October marks the mid-point of the financial year. Liability monitoring from October allows the Controlling Officer to identify impending excesses or savings with enough time to take corrective action (re-appropriation, surrender or seeking supplementary grants) before the close of the year on 31st March.<\/span><\/li>\n <\/ul>\n <\/div>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch3r59\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 59<\/span>\n <span class=\"rule-title\">Estimating Savings or Excesses \u2014 Personal Attention of HoD\/CO<\/span>\n <\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udc64<\/span><span>A <strong>Head of Department or Controlling Officer<\/strong> shall be in a position to estimate the <strong>likelihood of savings or excesses every month<\/strong> and to regularise them in accordance with the instructions laid down in Rule 62.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch3r60\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 60<\/span>\n <span class=\"rule-title\">Disproportionate Expenditure \u2014 Report by Accounts Officer<\/span>\n <\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\u26a0\ufe0f<\/span><span>The <strong>Accounts Officer shall report to the Head of the Department<\/strong> immediately on the <strong>first appearance of any disproportionate expenditure<\/strong>, particularly in respect of recurring items of expenditure under any grant, appropriation, or a primary unit thereof.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udd11<\/span><span>However, the <strong>authority administering a grant\/appropriation is ultimately responsible<\/strong> for the control of expenditure \u2014 <strong>not the Accounts Officer<\/strong>.<\/span><\/li>\n <\/ul>\n <div class=\"box-red\">\n <span style=\"font-size:18px;flex-shrink:0;margin-top:2px\">\u26a0\ufe0f<\/span>\n <span><strong>Key Distinction:<\/strong> The Accounts Officer's role is advisory and early-warning. <strong>Ultimate accountability rests with the spending Ministry\/Department<\/strong>. An officer cannot shift blame for excess expenditure to the Accounts Officer for failing to warn earlier.<\/span>\n <\/div>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch3r61\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 61<\/span>\n <span class=\"rule-title\">Excess Expenditure<\/span>\n <\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">1\ufe0f\u20e3<\/span><span>The <strong>Accounts Officer shall not allow any payment against sanctions in excess of the Budget provisions<\/strong> unless there is <strong>specific approval of the Chief Accounting Authority<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">2\ufe0f\u20e3<\/span><span>The <strong>Financial Advisers and Chief Accounting Authority<\/strong>, before according concurrence for excess under any Head, shall ensure <strong>availability of funds through Re-appropriation or Supplementary Demands for Grants<\/strong>.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch3r62\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 62<\/span>\n <span class=\"rule-title\">Surrender of Savings<\/span>\n <\/div>\n <div class=\"sec-h\">Sub-rule (1) \u2014 Surrender to Finance Ministry<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udce4<\/span><span>Departments shall <strong>surrender to the Finance Ministry, by the prescribed dates<\/strong>, all anticipated savings noticed in the Grants or Appropriations controlled by them.<\/span><\/li>\n <li><span class=\"bi\">\u23f0<\/span><span>Funds provided during the financial year and <strong>not utilised before the close of that financial year shall stand lapsed<\/strong> at the close of the year.<\/span><\/li>\n <\/ul>\n <div class=\"sec-h\">Sub-rule (2) \u2014 Surrender Immediately on Foresight<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\u26a1<\/span><span>Savings shall be <strong>surrendered immediately<\/strong> when foreseen \u2014 without waiting till the end of the year.<\/span><\/li>\n <li><span class=\"bi\">\u26d4<\/span><span><strong>No savings shall be held in reserve<\/strong> for possible future excesses.<\/span><\/li>\n <\/ul>\n <div class=\"sec-h\">Sub-rule (3) \u2014 Rush of Expenditure in Closing Months<\/div>\n <div class=\"box-red\">\n <span style=\"font-size:18px;flex-shrink:0;margin-top:2px\">\u26a0\ufe0f<\/span>\n <span><strong>Rush of expenditure, particularly in the closing months of the Financial Year, shall be regarded as a breach of financial propriety and shall be avoided.<\/strong> Financial Advisers shall ensure adherence to the Monthly Expenditure Plan and guidelines issued by Budget Division, DEA.<\/span>\n <\/div>\n <div class=\"sec-h\">Sub-rule (4) \u2014 Quarterly Expenditure Plan<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udcca<\/span><span>The Financial Advisers of Ministries\/Departments shall ensure adherence to the <strong>Quarterly Expenditure Plan<\/strong> and guidelines issued by Ministry of Finance from time to time.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch3r63\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 63<\/span>\n <span class=\"rule-title\">Expenditure on New Service<\/span>\n <\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\u26d4<\/span><span>No expenditure shall be incurred during a financial year on a <strong>\"New Service\"<\/strong> not contemplated in the Annual Budget for the year \u2014 except after obtaining a <strong>Supplementary Grant or Appropriation<\/strong> or an <strong>advance from the Contingency Fund<\/strong> during that year.<\/span><\/li>\n <\/ul>\n <div class=\"box-green\">\n <div class=\"box-green-lbl\">\ud83d\udccc What is a \"New Service\"?<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udca1<\/span><span>Guidelines to determine cases of \"New Service\" \/ \"New Instrument of Service\" are contained in <strong>Annexure-1 to Appendix-3<\/strong> of GFR 2017. The key principle is that Parliament must authorise all new expenditure \u2014 the Executive cannot spend on something Parliament has not approved in the Budget.<\/span><\/li>\n <\/ul>\n <\/div>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch3r64\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 64<\/span>\n <span class=\"rule-title\">Additional Allotment for Excess Expenditure<\/span>\n <\/div>\n <div class=\"sec-h\">Sub-rule (1) \u2014 Responsibility of Subordinate Authority<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udc64<\/span><span>A subordinate authority incurring expenditure is responsible for ensuring the <strong>allotment at its disposal is not exceeded<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\u2705<\/span><span>Where any excess is apprehended, the subordinate authority shall <strong>obtain additional allotment before incurring the excess expenditure<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcd2<\/span><span>For this purpose, authorities incurring expenditure shall maintain a <strong>Liability Register in Form GFR 3<\/strong>.<\/span><\/li>\n <\/ul>\n <div class=\"sec-h\">Sub-rule (2) \u2014 Disbursing Officer Cannot Self-Authorise Excess<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\u26d4<\/span><span>A <strong>Disbursing Officer may not, on his own authority, authorise any payment in excess<\/strong> of the funds placed at his disposal.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udd04<\/span><span>If faced with a claim certain to produce an excess, he shall <strong>take the orders of the administrative authority<\/strong> to which he is subordinate, who shall then arrange \u2014 Re-appropriation, or Supplementary Grant\/Appropriation, or advance from the Contingency Fund.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch3r65\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 65<\/span>\n <span class=\"rule-title\">Re-appropriation of Funds<\/span>\n <\/div>\n <div class=\"sec-h\">Sub-rule (1) \u2014 When Permissible<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udd04<\/span><span>Re-appropriation of funds from one <strong>primary unit of appropriation to another<\/strong> within a grant or appropriation may be sanctioned by a competent authority <strong>at any time before the close of the financial year<\/strong> \u2014 subject to DFPR Rule 10 and restrictions imposed by Finance Ministry.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>The <strong>primary unit = final unit of appropriation = Object Head of Account<\/strong>.<\/span><\/li>\n <\/ul>\n <div class=\"sec-h\">Sub-rule (2) \u2014 Only from Units with Surplus<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\u2705<\/span><span>Re-appropriation shall be made <strong>only when it is known or anticipated that the appropriation for the unit from which funds are transferred shall not be utilised in full<\/strong>.<\/span><\/li>\n <\/ul>\n <div class=\"sec-h\">Sub-rule (3) \u2014 No Artificial Diversion<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\u26d4<\/span><span>Funds shall <strong>not be re-appropriated with the intention of restoring the diverted appropriation<\/strong> when savings become available under other units later in the year. No manipulation allowed.<\/span><\/li>\n <\/ul>\n <div class=\"sec-h\">Sub-rule (4) \u2014 Form and Documentation<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccb<\/span><span>Application for re-appropriation ordinarily supported by a statement in <strong>Form GFR 1<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcdd<\/span><span>In all orders sanctioning re-appropriation, <strong>reasons for saving and excess of \u20b91 lakh or over<\/strong> and the primary units affected shall be <strong>invariably stated<\/strong>. <span class=\"tag-red\">\u2757 \u20b91 lakh threshold<\/span><\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcec<\/span><span>The authority sanctioning the re-appropriation shall <strong>endorse a copy of the order to the Accounts Officer<\/strong>.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch3r66\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 66<\/span>\n <span class=\"rule-title\">Supplementary Grants<\/span>\n <\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83c\udfdb\ufe0f<\/span><span>If savings are <strong>not available within the Grant<\/strong> to which the payment is required to be debited, or if the expenditure is on a <strong>\"New Service\" or \"New Instrument of Service\"<\/strong> not provided in the budget, a necessary <strong>Supplementary Grant or Appropriation<\/strong> in accordance with <strong>Article 115(1)<\/strong> of the Constitution shall be obtained <strong>before payment is authorised<\/strong>.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch3r67\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 67<\/span>\n <span class=\"rule-title\">Advance from Contingency Fund<\/span>\n <\/div>\n <div class=\"sec-h\">Sub-rule (1) \u2014 When Required<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\u26a1<\/span><span>When a need arises to incur <strong>unforeseen expenditure<\/strong> in excess of the sanctioned grant or appropriation, or on a <strong>New Service not provided in Budget<\/strong>, and there is <strong>not sufficient time for voting of Supplementary Demand<\/strong> before close of the financial year \u2014 an advance from the <strong>Contingency Fund<\/strong> set up under <strong>Article 267(1)<\/strong> of the Constitution shall be obtained <strong>before incurring the expenditure<\/strong>.<\/span><\/li>\n <\/ul>\n <div class=\"sec-h\">Sub-rule (2) \u2014 Excess over Vote on Account<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccb<\/span><span>An advance from the Contingency Fund shall also be obtained to meet expenditure in <strong>excess of the provisions for the service included in an Appropriation (Vote on Account) Act<\/strong>.<\/span><\/li>\n <\/ul>\n <div class=\"sec-h\">Sub-rule (4) \u2014 Governing Rules<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udcdc<\/span><span>The procedure for obtaining an advance and recoupment of the Fund shall be as laid down in the <strong>Contingency Fund of India (Amendment) Rules, 2021<\/strong> (placed at Appendix-6).<\/span><\/li>\n <\/ul>\n <div class=\"box-amber\">\n <div class=\"box-amber-lbl\">\u2b50 Supplementary Grant vs Contingency Fund Advance<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83c\udfdb\ufe0f<\/span><span><strong>Supplementary Grant (R.66):<\/strong> Voted by Parliament \u00b7 Used when time permits \u00b7 Permanent authorisation<\/span><\/li>\n <li><span class=\"bi\">\u26a1<\/span><span><strong>CF Advance (R.67):<\/strong> No time for Supplementary demand \u00b7 President's discretion \u00b7 Must be recouped (replaced) by Supplementary Grant subsequently<\/span><\/li>\n <\/ul>\n <\/div>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch3r68\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 68<\/span>\n <span class=\"rule-title\">Inevitable Payments<\/span>\n <\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udcb0<\/span><span>Subject to the provisions of Article 114(3) of the Constitution, <strong>money indisputably payable by Government shall not ordinarily be left unpaid<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccb<\/span><span>Suitable provision for <strong>anticipated liabilities shall invariably be made in Demands for Grants<\/strong> to be placed before Parliament.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch3r69\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 69<\/span>\n <span class=\"rule-title\">Pre-check of Bills \u2014 Reference to Appendix 10<\/span>\n <\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udcce<\/span><span>For easy reference, an extract relating to the <strong>procedures followed in the Accounts Office for check against provision of funds<\/strong> as a part of <strong>pre-check of bills<\/strong> has been placed at <strong>Appendix 10<\/strong>.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch3r70\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 70<\/span>\n <span class=\"rule-title\">Duties and Responsibilities of the Chief Accounting Authority<\/span>\n <\/div>\n <p style=\"margin-bottom:13px;color:#444;font-size:15px\">The <strong>Secretary of a Ministry\/Department<\/strong>, who is the <strong>Chief Accounting Authority (CAA)<\/strong>, shall be responsible for all of the following <strong>nine duties<\/strong>:<\/p>\n <ul class=\"blist\">\n <li><span class=\"bi\">1\ufe0f\u20e3<\/span><span><strong>Financial Management:<\/strong> Be responsible and accountable for the financial management of his Ministry or Department.<\/span><\/li>\n <li><span class=\"bi\">2\ufe0f\u20e3<\/span><span><strong>Proper Use of Funds:<\/strong> Ensure that public funds appropriated to the Ministry\/Department are used <strong>for the purpose for which they were meant<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">3\ufe0f\u20e3<\/span><span><strong>Effective, Efficient, Economical and Transparent Use:<\/strong> Be responsible for such use of resources in achieving the stated project objectives, whilst complying with performance standards.<\/span><\/li>\n <li><span class=\"bi\">4\ufe0f\u20e3<\/span><span><strong>Parliament:<\/strong> Appear before the <strong>Committee on Public Accounts (PAC)<\/strong> and any other Parliamentary Committee for examination.<\/span><\/li>\n <li><span class=\"bi\">5\ufe0f\u20e3<\/span><span><strong>Performance Monitoring:<\/strong> Review and monitor regularly the performance of programmes and projects assigned to his Ministry to determine whether stated objectives are achieved.<\/span><\/li>\n <li><span class=\"bi\">6\ufe0f\u20e3<\/span><span><strong>Expenditure Statements:<\/strong> Be responsible for preparation of <strong>expenditure and other statements<\/strong> relating to his Ministry\/Department as required by regulations, guidelines or directives issued by MoF.<\/span><\/li>\n <li><span class=\"bi\">7\ufe0f\u20e3<\/span><span><strong>Internal Controls:<\/strong> Ensure that his Ministry\/Department <strong>maintains full and proper records<\/strong> of financial transactions and adopts systems and procedures that shall at all times afford <strong>internal controls<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">8\ufe0f\u20e3<\/span><span><strong>Procurement Procedures:<\/strong> Ensure that his Ministry\/Department follows Government <strong>procurement procedure<\/strong> for execution of works, services and supplies, and implements it in a <strong>fair, equitable, transparent, competitive and cost-effective manner<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">9\ufe0f\u20e3<\/span><span><strong>Collections and Avoiding Waste:<\/strong> Take effective steps to ensure his Ministry\/Department: (a) <strong>collects all moneys due<\/strong> to the Government; and (b) <strong>avoids unauthorised, irregular and wasteful expenditure<\/strong>.<\/span><\/li>\n <\/ul>\n <div class=\"box-amber\">\n <div class=\"box-amber-lbl\">\u2b50 Quick Recall \u2014 CAA's 9 Duties<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udcdd<\/span><span><strong>Financial Mgmt \u00b7 Proper Use \u00b7 4E Use \u00b7 PAC \u00b7 Performance \u00b7 Statements \u00b7 Internal Controls \u00b7 Procurement \u00b7 Collections & No Waste<\/strong><\/span><\/li>\n <li><span class=\"bi\">\u26a0\ufe0f<\/span><span>The CAA is the <strong>Secretary<\/strong> of the Ministry \u2014 <em>not<\/em> the Financial Adviser. This is a frequently tested distinction.<\/span><\/li>\n <\/ul>\n <\/div>\n <\/div>\n\n <div class=\"box-amber\" style=\"margin-top:36px\">\n <div class=\"box-amber-lbl\">\u2b50 Numbers to Remember \u2014 Chapter 3<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>Art. 112\u2013116<\/strong> \u2014 Constitutional provisions governing the Budget<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>2017-18<\/strong> \u2014 Year from which Railway Budget merged with General Budget (R.43)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>Past 3 years actuals<\/strong> \u2014 required in Receipt Estimates (R.45)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>Every 3 years<\/strong> \u2014 User charges to be reviewed at least (R.47)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>3rd of each month<\/strong> \u2014 DDOs send Form GFR 5 returns to HoD (R.57)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>15th of month following<\/strong> \u2014 Departments obtain GFR 8 returns from HoDs (R.57)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>15th of 2nd month after quarter end<\/strong> \u2014 HoD furnishes quarterly certificate to PAO (R.57)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>From October<\/strong> \u2014 Controlling Officer starts collecting monthly liability statements (R.58)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>\u20b91 lakh<\/strong> \u2014 threshold above which reasons for saving\/excess to be stated in re-appropriation orders (R.65)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>9 duties<\/strong> \u2014 of the Chief Accounting Authority (Secretary of Ministry) under Rule 70<\/span><\/li>\n <\/ul>\n <\/div>\n <\/div>\n\n <div id=\"ch4\" class=\"ch-block\">\n\n <div class=\"ch-banner\">\n <div class=\"ch-num\">Chapter 4<\/div>\n <div class=\"ch-title\">Government Accounts<\/div>\n <div class=\"ch-range\">Rules 71 to 129 \u00b7 Accounts Preparation \u00b7 Classification \u00b7 PFMS \u00b7 DBT \u00b7 Annual Accounts \u00b7 Capital & Revenue \u00b7 Adjustments<\/div>\n <\/div>\n\n \n <div class=\"idx-outer\">\n <div class=\"idx-lbl\">Rules at a Glance \u2014 Eight Sections<\/div>\n <table class=\"idx-table\">\n <thead><tr><th style=\"width:110px\">Rule No.<\/th><th>Rule Title \/ Section<\/th><th>Key Point<\/th><\/tr><\/thead>\n <tbody>\n <tr><td class=\"r-num\" colspan=\"3\" style=\"background:#1a3a6b;color:#fff;font-weight:700;letter-spacing:.04em;padding:6px 12px\">I. PREPARATION AND FORM OF ACCOUNTS (Rules 71\u201387)<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 71<\/td><td class=\"r-title\">Preparation and Presentation of Accounts<\/td><td class=\"r-key\">Prepared by CGA \u00b7 Certified by CAG \u00b7 Submitted to President (preferably within 6 months of close of FY) \u00b7 Laid before each House of Parliament<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 72<\/td><td class=\"r-title\">Form of Accounts<\/td><td class=\"r-key\">Art.150 \u2014 in form President prescribes on advice of CAG \u00b7 CGA prescribes form of accounts of Union and States<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 73<\/td><td class=\"r-title\">Principles of Accounting<\/td><td class=\"r-key\">Governed by Government Accounting Rules 1990 \u00b7 Accounting Rules for Treasuries \u00b7 Account Code Volume-III<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 74<\/td><td class=\"r-title\">Cash-Based Accounting<\/td><td class=\"r-key\">Accounts prepared on cash basis \u00b7 Transactions = actual cash receipts and disbursements during FY (not amounts due)<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 75<\/td><td class=\"r-title\">Period of Accounts<\/td><td class=\"r-key\">Financial year: 1st April to 31st March<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 76<\/td><td class=\"r-title\">Currency of Accounts<\/td><td class=\"r-key\">Maintained in Indian Rupees \u00b7 Foreign currency and foreign aid converted to INR before accounting<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 77<\/td><td class=\"r-title\">Main Divisions of Accounts \u2014 Three Parts<\/td><td class=\"r-key\">Part I: Consolidated Fund (Revenue + Capital divisions) \u00b7 Part II: Contingency Fund (Art.267) \u2014 single Major Head \u00b7 Part III: Public Account (debt, reserves, deposits, advances, suspense, remittances, cash balances)<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 78<\/td><td class=\"r-title\">Classification of Transactions \u2014 Six Tiers<\/td><td class=\"r-key\">Function\/programme\/activity based \u00b7 Major Head \u2192 Sub-Major \u2192 Minor \u2192 Sub-Head \u2192 Detailed \u2192 Object Head \u00b7 15-digit numeric code<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 79<\/td><td class=\"r-title\">Authority to Open New Head of Account<\/td><td class=\"r-key\">CGA \u2014 authorised to open Major\/Minor Heads on CAG's advice under Art.150 \u00b7 Ministries open Sub\/Detailed Heads with Budget Division concurrence \u00b7 Object Heads \u2014 DoE on CAG's advice<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 80<\/td><td class=\"r-title\">Budget Heads to Conform to Classification Rules<\/td><td class=\"r-key\">Budget heads in estimates and appropriation orders must conform to prescribed classification rules<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 81<\/td><td class=\"r-title\">Responsibility of Departmental Officers<\/td><td class=\"r-key\">Every officer responsible for collection\/expenditure must maintain proper accounts and render all returns promptly<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 82<\/td><td class=\"r-title\">Classification on Bills and Challans<\/td><td class=\"r-key\">Drawing Officers must record suitable classification on all bills drawn \u00b7 Departmental Officers record classification on challans \u00b7 Doubts \u2192 Principal Accounts Officer \u2192 CGA\/MoF<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 83<\/td><td class=\"r-title\">Charged or Voted Expenditure<\/td><td class=\"r-key\">Art.112(3) \u2014 Charged expenditure: not subject to vote of legislature \u00b7 All other = Voted expenditure \u00b7 Both shown separately in accounts and Budget<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 84<\/td><td class=\"r-title\">Capital or Revenue Expenditure (Definition)<\/td><td class=\"r-key\">Capital: acquiring tangible permanent assets \/ enhancing utility \u00b7 Revenue: maintenance, upkeep, working expenses, day-to-day running, establishment \u00b7 Both shown separately<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 85<\/td><td class=\"r-title\">Banking Arrangements<\/td><td class=\"r-key\">RBI is banker to Government \u00b7 RBI (in consultation with CGA) nominates Accredited Bank for each Ministry\/Dept \u00b7 Pay & Accounts Offices and CDDOs have assignment accounts \u00b7 Tax revenues collected by RBI<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 86<\/td><td class=\"r-title\">Public Financial Management System (PFMS)<\/td><td class=\"r-key\">Integrated FMS of CGA \u00b7 Used for sanction, bills, payment, receipts, DBT, fund flow, financial reporting \u00b7 All grant-in-aid implementing agencies registered on PFMS \u00b7 Payments 'just-in-time' \u00b7 DDG uploaded at start of FY \u00b7 Re-appropriation\/surrender orders through PFMS \u00b7 UCs submitted on PFMS<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 87<\/td><td class=\"r-title\">Direct Benefit Transfer (DBT)<\/td><td class=\"r-key\">Benefits directly to beneficiaries via ICT \u00b7 Includes in-kind and cash transfers + honorariums to community workers \u00b7 Three routes: (a) directly from Ministry (b) State Treasury (c) Implementing Agency \u00b7 Electronic UCs (E-UCs) generated on PFMS portal \u00b7 Transaction charges paid as stipulated by MoF<\/td><\/tr>\n <tr><td class=\"r-num\" colspan=\"3\" style=\"background:#1a3a6b;color:#fff;font-weight:700;letter-spacing:.04em;padding:6px 12px\">II. ANNUAL ACCOUNTS (Rules 88\u201391)<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 88<\/td><td class=\"r-title\">Appropriation Accounts<\/td><td class=\"r-key\">Prepared by Principal Accounts Officers \u00b7 Signed by CAA (Secretary) \u00b7 Consolidated by CGA \u00b7 Defence: Secretary, MoD \u00b7 Railways: Chairman, Railway Board \u00b7 Posts: Secretary, Dept of Posts<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 89<\/td><td class=\"r-title\">Finance Accounts<\/td><td class=\"r-key\">Annual receipts, disbursements and balances \u00b7 Prepared and signed by CGA \u00b7 Countersigned by Secretary (Expenditure), MoF \u00b7 Includes Posts, Defence, Railways, UT Govt transactions<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 90<\/td><td class=\"r-title\">Presentation of Annual Accounts<\/td><td class=\"r-key\">Prepared on dates agreed with CAG \u00b7 Sent to CAG for certification \u00b7 CAG submits certified accounts + reports to President under S.11 of CAG Act 1971 and Art.151(1)<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 91<\/td><td class=\"r-title\">PPP \/ PSC \/ JV Disclosure<\/td><td class=\"r-key\">Admin Ministry financial stakes in PPP\/PSC\/JV\/Subsidiary companies to be disclosed in Annual Report<\/td><\/tr>\n <tr><td class=\"r-num\" colspan=\"3\" style=\"background:#1a3a6b;color:#fff;font-weight:700;letter-spacing:.04em;padding:6px 12px\">III. PROFORMA ACCOUNTS (Rules 92\u201395)<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 92\u201395<\/td><td class=\"r-title\">Subsidiary Accounts \u2014 Commercial Depts<\/td><td class=\"r-key\">Commercial\/quasi-commercial Govt Depts maintain proforma accounts (Manufacturing, Trading, P&L, Balance Sheet) \u00b7 Methods regulated by Govt orders \u00b7 Head of unit ensures cost accounts are accurate \u00b7 Submitted to Accounts Officer and appended to Appropriation Accounts<\/td><\/tr>\n <tr><td class=\"r-num\" colspan=\"3\" style=\"background:#1a3a6b;color:#fff;font-weight:700;letter-spacing:.04em;padding:6px 12px\">IV. PERSONAL DEPOSIT ACCOUNTS (Rules 96\u201397)<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 96<\/td><td class=\"r-title\">Personal Deposit Account \u2014 Concept<\/td><td class=\"r-key\">Device to facilitate designated officer to credit and withdraw directly from account \u00b7 No minus balance allowed \u00b7 Only Govt officers in official capacity can be Designated Officer<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 97<\/td><td class=\"r-title\">Authority to Open PD Account \u2014 5 Types<\/td><td class=\"r-key\">Authorised by Ministry\/Dept special order in consultation with CGA \u00b7 Forms part of Public Account \u00b7 5 types: wards\/attached estates \u00b7 Civil\/Criminal Courts deposits \u00b7 Regulatory receipts under statute \u00b7 Law-mandated PD accounts \u00b7 Defence public funds<\/td><\/tr>\n <tr><td class=\"r-num\" colspan=\"3\" style=\"background:#1a3a6b;color:#fff;font-weight:700;letter-spacing:.04em;padding:6px 12px\">V. CAPITAL AND REVENUE ACCOUNTS (Rules 98\u2013103)<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 98<\/td><td class=\"r-title\">Capital Expenditure (Detailed Definition)<\/td><td class=\"r-key\">Tangible permanent assets \/ enhancing utility = Capital \u00b7 Maintenance, upkeep, establishment = Revenue \u00b7 Temporary asset \/ grants-in-aid: not Capital unless President authorises on CAG's advice \u00b7 Capital met from capital receipts generally; may be from ordinary revenue if sufficient<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 99<\/td><td class=\"r-title\">Principles for Allocation between Capital and Revenue (5 principles)<\/td><td class=\"r-key\">(a) Capital bears first construction, equipment, intermediate maintenance, improvements enhancing asset life \u00b7 (b) Revenue bears maintenance, working expenses, renewals \u00b7 (c) Renewal\/replacement: Revenue pays or funds adequate replacement of depreciation; genuine improvements to Capital \u00b7 (d) Extraordinary calamities: Capital or Revenue or divided, depending on whether new asset created or existing restored \u00b7 (e) Temporary asset \u2192 not Capital except with President's sanction on CAG's advice<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 100<\/td><td class=\"r-title\">Allocation on Capital Schemes<\/td><td class=\"r-key\">Determined by Govt orders after consultation with CAG, where separate Capital and Revenue Accounts kept<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 101<\/td><td class=\"r-title\">Capital Receipts during Construction<\/td><td class=\"r-key\">Capital receipts accruing during construction \u2192 utilised in reduction of capital expenditure \u00b7 Not credited to revenue account except under special order<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 102<\/td><td class=\"r-title\">Receipts Representing Recoveries of Capital Expenditure<\/td><td class=\"r-key\">Receipts representing recoveries of expenditure previously debited to a Capital Major Head \u2192 taken in reduction of expenditure under that Major Head<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 103<\/td><td class=\"r-title\">Conversion of Loans into Equity \/ Grants-in-Aid<\/td><td class=\"r-key\">Parliament approval required via token provision in DFG or Supplementary DFG \u00b7 After approval, balances corrected proforma under Loan\/Capital Major Heads<\/td><\/tr>\n <tr><td class=\"r-num\" colspan=\"3\" style=\"background:#1a3a6b;color:#fff;font-weight:700;letter-spacing:.04em;padding:6px 12px\">VI. INTEREST ON CAPITAL (Rules 104\u2013107)<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 104<\/td><td class=\"r-title\">Interest Rate on Capital<\/td><td class=\"r-key\">Charged in accounts of all Commercial Depts for which separate capital and revenue accounts are maintained \u00b7 Rates prescribed by Govt from time to time<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 105<\/td><td class=\"r-title\">Interest on Capital Outlay<\/td><td class=\"r-key\">Specific loans: at rate prescribed by Govt based on actual interest paid on that loan \u00b7 Other capital outlay: at rate determined each year by DEA, MoF<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 106<\/td><td class=\"r-title\">Method of Calculation of Interest<\/td><td class=\"r-key\">Calculated on direct capital outlay at end of previous year + half the outlay of current year<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 107<\/td><td class=\"r-title\">Writing Back of Capitalised Interest<\/td><td class=\"r-key\">Capitalised interest during construction \u2192 first charge on any capital receipts or surplus revenue from project when opened for working<\/td><\/tr>\n <tr><td class=\"r-num\" colspan=\"3\" style=\"background:#1a3a6b;color:#fff;font-weight:700;letter-spacing:.04em;padding:6px 12px\">VII. ADJUSTMENTS WITH GOVERNMENT DEPARTMENTS (Rules 108\u2013122)<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 108<\/td><td class=\"r-title\">Adjustments with State Governments<\/td><td class=\"r-key\">Mutually agreed basis \u00b7 7 specific matters regulated by Appendix-5 to GAR 1990 (binding on all States)<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 109<\/td><td class=\"r-title\">Re-audit Period<\/td><td class=\"r-key\">3 years accepted for re-audit of past transactions involving errors in classification<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 110<\/td><td class=\"r-title\">When Adjustment Is Necessary<\/td><td class=\"r-key\">Mandatory when a commercial\/store dept is involved, or when an adjustment would have been made if the transaction were between two Central Govt depts<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 111<\/td><td class=\"r-title\">Petty Claims Not to Be Preferred<\/td><td class=\"r-key\">Central Govt and State Govts have agreed not to prefer petty and isolated claims not exceeding \u20b910,000 against one another<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 112<\/td><td class=\"r-title\">Criteria for Reciprocal Arrangement<\/td><td class=\"r-key\">Claim must be both petty AND occasional \u00b7 Covers services rendered (not supplies) \u00b7 Excludes Railway, Posts, Electrical undertakings (commercial) \u00b7 Doubts \u2192 mutual consultation<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 113<\/td><td class=\"r-title\">Projects Jointly Executed by States<\/td><td class=\"r-key\">Expenditure incurred by one Govt and shared by others \u2192 recoveries from other Govts = abatement of charges under relevant expenditure head<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 114\u2013116<\/td><td class=\"r-title\">Agency Functions under Art.258<\/td><td class=\"r-key\">Claims of States for extra cost of agency functions \u00b7 Extra staff\/contingency cost: reimbursed in lumpsum \u00b7 Work entrusted (construction\/maintenance): adjusted direct in Central accounts under relevant Head \u00b7 \u2264\u20b950,000 per item per year: 5-year contract offered to State \u00b7 >\u20b950,000: annual statement required<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 117<\/td><td class=\"r-title\">Closure of Inter-Governmental Adjustments<\/td><td class=\"r-key\">Carried out up to 10th April (or date specified by CGA in consultation with RBI) \u2014 date on which RBI books are closed for March<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 118\u2013122<\/td><td class=\"r-title\">Adjustments with Foreign Govts and Non-Govt Bodies<\/td><td class=\"r-key\">Services to foreign Govts\/non-Govt bodies \u2192 only on payment unless exempted \u00b7 Recoveries for services rendered = receipts of Govt \u00b7 Govt as agent: entire cost recovered (net cost to Govt = nil) \u00b7 Relief to outside body \u2192 through grant-in-aid, not remission of dues<\/td><\/tr>\n <tr><td class=\"r-num\" colspan=\"3\" style=\"background:#1a3a6b;color:#fff;font-weight:700;letter-spacing:.04em;padding:6px 12px\">VIII. INTER-DEPARTMENTAL ADJUSTMENTS (Rules 123\u2013129)<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 123<\/td><td class=\"r-title\">Inter-Departmental Adjustments<\/td><td class=\"r-key\">Service Dept shall NOT charge other depts for services within its normal functions \u00b7 Commercial Dept SHALL charge and be charged for supplies\/services<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 124<\/td><td class=\"r-title\">Service vs Commercial Departments<\/td><td class=\"r-key\">Service Depts: inseparable from Govt functions (Police, Jails, Defence, Medical, etc.) \u00b7 Commercial Depts: render services on payment, work to a financial result under commercial accounts<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 125<\/td><td class=\"r-title\">Period for Preferment of Claims<\/td><td class=\"r-key\">Claims between Depts: within same FY and not beyond 3 years from date of transaction \u00b7 Waivable by mutual agreement<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 126\u2013127<\/td><td class=\"r-title\">Settlement Procedure<\/td><td class=\"r-key\">Regulated by Ch.4 of GAR 1990 \u00b7 Adjustments in account year \u00b7 Recurring payments \u2192 Accounts Officer adjusts automatically before books close \u00b7 Service dept recoveries = deduction from gross expenditure \u00b7 Commercial dept recoveries = receipts of that dept<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 128\u2013129<\/td><td class=\"r-title\">Pensionary Charges \u2014 Commercial Depts<\/td><td class=\"r-key\">Commercial depts with proforma accounts: contribution basis at rates fixed by Govt \u00b7 Without proforma accounts: included in overhead charges \u00b7 Railways\/Posts\/Defence treated as separate Govts for pension adjustment \u00b7 Declared commercial depts: average of percentage for 15th year of service<\/td><\/tr>\n <\/tbody>\n <\/table>\n <\/div>\n\n \n <div style=\"background:#f0f4ff;border-left:5px solid #1a3a6b;padding:10px 18px;border-radius:0 6px 6px 0;margin:10px 0;font-weight:700;color:#1a3a6b;font-size:14px;letter-spacing:.04em;text-transform:uppercase\">Section I \u2014 Preparation, Form and Classification of Accounts (Rules 71\u201387)<\/div>\n\n \n <div class=\"rule-block\" id=\"ch4r71\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 71<\/span><span class=\"rule-title\">Preparation and Presentation of Accounts<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udcd2<\/span><span>Accounts of the Union Government shall be prepared every year showing <strong>receipts and disbursements<\/strong>, <strong>surplus or deficit<\/strong>, and <strong>changes in Government liabilities and assets<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83c\udfdb\ufe0f<\/span><span>Accounts shall be <strong>prepared by the Controller General of Accounts (CGA)<\/strong>, <strong>certified by the Comptroller and Auditor General of India (CAG)<\/strong>, and submitted to the <strong>President of India preferably within six months of close of the Financial Year<\/strong>. <span class=\"tag-red\">\u2757 6 months<\/span><\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcdc<\/span><span>The President shall cause them to be <strong>laid before each House of Parliament<\/strong>.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch4r72\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 72<\/span><span class=\"rule-title\">Form of Accounts \u2014 Article 150<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\u2696\ufe0f<\/span><span>By virtue of <strong>Article 150<\/strong> of the Constitution, the accounts of the Union Government shall be kept in such form as the <strong>President may, on the advice of the CAG, prescribe<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83c\udfdb\ufe0f<\/span><span>The <strong>Controller General of Accounts (CGA), Ministry of Finance (DoE)<\/strong> is responsible for prescribing the form of accounts of the Union and States, and to frame or revise rules and manuals relating thereto on behalf of the President \u2014 on the advice of the CAG.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch4r73\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 73<\/span><span class=\"rule-title\">Principles of Accounting \u2014 Governing Documents<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccb<\/span><span>Main principles for maintenance of Government accounts are contained in:\n <ul class=\"blist-sub\">\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span><strong>Government Accounting Rules, 1990<\/strong><\/span><\/li>\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span><strong>Accounting Rules for Treasuries<\/strong><\/span><\/li>\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span><strong>Account Code Volume-III<\/strong><\/span><\/li>\n <\/ul>\n <\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>Detailed rules for technical departments (Posts, etc.) are in their respective Accounts Manuals or departmental regulations.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch4r74\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 74<\/span><span class=\"rule-title\">Cash-Based Accounting<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udcb0<\/span><span>Government accounts shall be prepared on <strong>cash basis<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>Transactions in Government accounts shall represent <strong>actual cash receipts and disbursements during a financial year<\/strong> \u2014 as distinguished from amounts <em>due<\/em> to or by Government during the same period.<\/span><\/li>\n <li><span class=\"bi\">\u2705<\/span><span>Exception: such book adjustments as may be authorised by Government Accounting Rules 1990 or by general\/special order of the Central Government on the advice of the CAG.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch4r75\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 75<\/span><span class=\"rule-title\">Period of Accounts<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udcc5<\/span><span>The annual accounts of the Central Government shall record transactions which take place during a <strong>financial year running from 1st April to 31st March<\/strong>.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch4r76\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 76<\/span><span class=\"rule-title\">Currency in which Accounts Are Kept<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udcb1<\/span><span>The accounts of Government shall be maintained in <strong>Indian Rupees<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udd04<\/span><span>All <strong>foreign currency transactions and foreign aid<\/strong> shall be brought into account <strong>after conversion into Indian Rupees<\/strong>.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch4r77\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 77<\/span><span class=\"rule-title\">Main Divisions and Structure of Accounts \u2014 Three Parts<\/span><\/div>\n <div class=\"box-blue\">\n <div class=\"box-blue-lbl\">\ud83d\udccc Three Parts of Government Accounts<\/div>\n <table style=\"width:100%;border-collapse:collapse;font-size:14px;margin-top:6px\">\n <thead>\n <tr style=\"background:#1a3a6b;color:#fff\">\n <th style=\"padding:8px 12px\">Part<\/th>\n <th style=\"padding:8px 12px\">Name<\/th>\n <th style=\"padding:8px 12px\">Contents<\/th>\n <\/tr>\n <\/thead>\n <tbody>\n <tr style=\"background:#f0f6ff;border-bottom:1px solid #d0dcef\">\n <td style=\"padding:8px 12px\"><strong>Part I<\/strong><\/td>\n <td style=\"padding:8px 12px\"><strong>Consolidated Fund<\/strong><\/td>\n <td style=\"padding:8px 12px\">Revenue Division (Receipt + Expenditure heads) and Capital Division (Receipt + Expenditure + Public Debt\/Loans\/Advances) \u00b7 Divided into sectors: General Services, Social & Community Services, Economic Services, etc. \u2192 Major Heads \u2192 Sub-Major Heads<\/td>\n <\/tr>\n <tr style=\"background:#e8f0ff;border-bottom:1px solid #d0dcef\">\n <td style=\"padding:8px 12px\"><strong>Part II<\/strong><\/td>\n <td style=\"padding:8px 12px\"><strong>Contingency Fund<\/strong><\/td>\n <td style=\"padding:8px 12px\">Transactions under Art.267 CF (or S.48 of Govt of UT Act 1963) \u00b7 <strong>Single Major Head<\/strong> \u2192 followed by Minor, Sub and\/or Detailed Heads<\/td>\n <\/tr>\n <tr style=\"background:#f0f6ff\">\n <td style=\"padding:8px 12px\"><strong>Part III<\/strong><\/td>\n <td style=\"padding:8px 12px\"><strong>Public Account<\/strong><\/td>\n <td style=\"padding:8px 12px\">Debt (other than in Part I) \u00b7 Reserve funds \u00b7 Deposits \u00b7 Advances \u00b7 Suspense \u00b7 Remittances \u00b7 Cash balances<\/td>\n <\/tr>\n <\/tbody>\n <\/table>\n <\/div>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch4r78\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 78<\/span><span class=\"rule-title\">Classification of Transactions \u2014 Six Tiers and 15-Digit Code<\/span><\/div>\n <div class=\"box-blue\">\n <div class=\"box-blue-lbl\">\ud83d\udccc Six-Tier Classification Structure<\/div>\n <table style=\"width:100%;border-collapse:collapse;font-size:14px;margin-top:6px\">\n <thead>\n <tr style=\"background:#1a3a6b;color:#fff\">\n <th style=\"padding:8px 12px\">Tier<\/th>\n <th style=\"padding:8px 12px\">Head<\/th>\n <th style=\"padding:8px 12px\">Represents<\/th>\n <\/tr>\n <\/thead>\n <tbody>\n <tr style=\"background:#f0f6ff;border-bottom:1px solid #d0dcef\"><td style=\"padding:8px 12px\">1<\/td><td style=\"padding:8px 12px\"><strong>Major Head<\/strong> (incl. Sub-Major)<\/td><td style=\"padding:8px 12px\"><strong>Function<\/strong> of Government<\/td><\/tr>\n <tr style=\"background:#e8f0ff;border-bottom:1px solid #d0dcef\"><td style=\"padding:8px 12px\">2<\/td><td style=\"padding:8px 12px\"><strong>Minor Head<\/strong><\/td><td style=\"padding:8px 12px\"><strong>Programme<\/strong> to achieve the function<\/td><\/tr>\n <tr style=\"background:#f0f6ff;border-bottom:1px solid #d0dcef\"><td style=\"padding:8px 12px\">3<\/td><td style=\"padding:8px 12px\"><strong>Sub-Head<\/strong><\/td><td style=\"padding:8px 12px\"><strong>Scheme<\/strong><\/td><\/tr>\n <tr style=\"background:#e8f0ff;border-bottom:1px solid #d0dcef\"><td style=\"padding:8px 12px\">4<\/td><td style=\"padding:8px 12px\"><strong>Detailed Head<\/strong><\/td><td style=\"padding:8px 12px\"><strong>Sub-scheme<\/strong><\/td><\/tr>\n <tr style=\"background:#f0f6ff;border-bottom:1px solid #d0dcef\"><td style=\"padding:8px 12px\">5<\/td><td style=\"padding:8px 12px\"><strong>Object Head<\/strong><\/td><td style=\"padding:8px 12px\">Primary unit of appropriation \u2014 <strong>economic nature of expenditure<\/strong> (salaries, office expenses, TA, professional services, grants-in-aid, etc.)<\/td><\/tr>\n <tr style=\"background:#e8f0ff\"><td style=\"padding:8px 12px\" colspan=\"3\" style=\"padding:8px 12px;font-style:italic\">The above six tiers are represented by a unique <strong>15-digit numeric code<\/strong><\/td><\/tr>\n <\/tbody>\n <\/table>\n <\/div>\n <ul class=\"blist\" style=\"margin-top:10px\">\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>Classification shall have closer reference to <strong>functions, programmes and activities<\/strong> of the Government and the <strong>object of revenue or expenditure<\/strong>, rather than the department where it occurs.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch4r79\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 79<\/span><span class=\"rule-title\">Authority to Open a New Head of Account<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83c\udfdb\ufe0f<\/span><span><strong>New Major\/Minor Heads<\/strong> \u2014 authorised by <strong>CGA (MoF, DoE)<\/strong> on the advice of the CAG under Art.150 powers.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccb<\/span><span><strong>Sub-Heads and Detailed Heads<\/strong> \u2014 opened by Ministries\/Departments in consultation with the <strong>Budget Division, MoF<\/strong>. Principal Accounts Offices may open Sub\/Detailed Heads under Minor Heads falling within the Public Account.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>Object Heads<\/strong> \u2014 prescribed under DFPR Rule 8. Power to amend\/modify or open new Object Heads rests with <strong>DoE, MoF on the advice of the CAG<\/strong>.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch4r80\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 80<\/span><span class=\"rule-title\">Conformity of Budget Heads with Classification Rules<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>Budget Heads exhibited in estimates of receipts and expenditure framed by the Government, or in any appropriation order, shall <strong>conform to the prescribed rules of classification<\/strong>.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch4r81\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 81<\/span><span class=\"rule-title\">Responsibility of Departmental Officers<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udc64<\/span><span>Every officer responsible for the collection of Government dues or expenditure of Government money shall see that <strong>proper accounts are maintained<\/strong> in the prescribed form, and <strong>tender accurately and promptly all accounts and returns<\/strong> as may be required by Government, Controlling Officer or Accounts Officer.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch4r82\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 82<\/span><span class=\"rule-title\">Classification to Be Recorded on All Bills and Challans<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccb<\/span><span><strong>Drawing Officers<\/strong> shall record suitable classification on <strong>all bills drawn<\/strong> by them.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccb<\/span><span><strong>Departmental Officers<\/strong> responsible for collection shall indicate or record classification on <strong>challans crediting Government money into the Bank<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\u2753<\/span><span>In cases of <strong>doubt<\/strong> regarding the correct Head, the matter shall be referred to the <strong>Principal Accounts Officer \u2192 CGA\/MoF<\/strong> for clarification.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch4r83\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 83<\/span><span class=\"rule-title\">Charged or Voted Expenditure<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\u2696\ufe0f<\/span><span>Expenditure covered under <strong>Article 112(3)<\/strong> of the Constitution is <strong>Charged on the Consolidated Fund<\/strong> and is <strong>not subject to vote by the legislature<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>All <strong>other<\/strong> expenditure met out of the Consolidated Fund is treated as <strong>Voted expenditure<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccb<\/span><span>Charged or Voted expenditure shall be shown <strong>separately<\/strong> both in the accounts and in the Budget documents.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch4r84\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 84<\/span><span class=\"rule-title\">Capital or Revenue Expenditure \u2014 Definitions<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83c\udfd7\ufe0f<\/span><span><strong>Capital Expenditure:<\/strong> Significant expenditure incurred with the object of <strong>acquiring tangible assets of a permanent nature<\/strong> (for use in the organisation and not for sale) or <strong>enhancing the utility of existing assets<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udd27<\/span><span><strong>Revenue Expenditure:<\/strong> Subsequent charges on <strong>maintenance, repair, upkeep and working expenses<\/strong> required to maintain assets in running order + all expenses for <strong>day-to-day running<\/strong> of the organisation including establishment and administrative expenses.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccb<\/span><span>Capital and Revenue expenditure shall be shown <strong>separately<\/strong> in the Accounts.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch4r85\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 85<\/span><span class=\"rule-title\">Banking Arrangements \u2014 RBI as Banker to Government<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83c\udfe6<\/span><span>The <strong>Reserve Bank of India (RBI) shall be the banker to the Government<\/strong>. It shall maintain cash balance of the Government and provide banking facilities either directly through its own offices or through its <strong>agent banks<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>RBI, in consultation with the CGA, shall nominate a bank to function as the <strong>Accredited Bank of a Ministry or Department<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcb3<\/span><span><strong>Pay & Accounts Offices<\/strong> and <strong>Cheque Drawing and Disbursing Officers (CDDOs)<\/strong> shall have <strong>assignment accounts<\/strong> with the identified branches of the Accredited Bank. All payments shall be made through these branches.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcb0<\/span><span><strong>Tax revenues<\/strong> of the Government shall be collected by the RBI through its own offices or through nominated branches of its agent banks.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch4r86\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 86<\/span><span class=\"rule-title\">Public Financial Management System (PFMS)<\/span><\/div>\n <div class=\"box-blue\">\n <div class=\"box-blue-lbl\">\ud83d\udccc PFMS \u2014 Six Key Mandates<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">1\ufe0f\u20e3<\/span><span>PFMS, the <strong>integrated Financial Management System of CGA, GoI<\/strong>, shall be used for <strong>sanction preparation, bill processing, payment, receipt management, DBT, fund flow management and financial reporting<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">2\ufe0f\u20e3<\/span><span>All Ministries sanctioning grant-in-aid shall <strong>register all implementing agencies till the last level of implementation<\/strong> on PFMS to track fund flow and unspent balances.<\/span><\/li>\n <li><span class=\"bi\">3\ufe0f\u20e3<\/span><span>All payments shall, to the extent possible, be released <strong>'just-in-time'<\/strong> by the Ministries through PFMS.<\/span><\/li>\n <li><span class=\"bi\">4\ufe0f\u20e3<\/span><span>Detailed Demands for Grants (DDG), as approved, must be <strong>uploaded on PFMS at the start of each Financial Year<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">5\ufe0f\u20e3<\/span><span>All <strong>re-appropriation orders and surrender orders<\/strong> shall be generated through the PFMS system.<\/span><\/li>\n <li><span class=\"bi\">6\ufe0f\u20e3<\/span><span>All <strong>grantee institutions shall submit Utilisation Certificates (UCs) on PFMS<\/strong>.<\/span><\/li>\n <\/ul>\n <\/div>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch4r87\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 87<\/span><span class=\"rule-title\">Direct Benefit Transfer (DBT)<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83c\udfaf<\/span><span><strong>Sub-rule (1):<\/strong> Transfer of benefits shall be done <strong>directly to beneficiaries<\/strong> using <strong>Information and Communication Technology (ICT)<\/strong>. Process reengineering to minimise intermediary levels, reduce delays, and minimise pilferage and duplication.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udce6<\/span><span><strong>Sub-rule (2):<\/strong> DBT includes <strong>in-kind and cash transfers<\/strong> to beneficiaries, as well as <strong>transfers\/honorariums given to community workers<\/strong> and other enablers of Government schemes.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udd04<\/span><span><strong>Sub-rule (3):<\/strong> Three routes for cash benefits:\n <ul class=\"blist-sub\">\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span><strong>(a)<\/strong> Directly from Ministries\/Departments to beneficiaries<\/span><\/li>\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span><strong>(b)<\/strong> Through <strong>State Treasury Account<\/strong><\/span><\/li>\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span><strong>(c)<\/strong> Through any <strong>Implementing Agency<\/strong> as appointed by Central\/State Governments<\/span><\/li>\n <\/ul>\n <\/span><\/li>\n <li><span class=\"bi\">\ud83d\udce6<\/span><span><strong>Sub-rule (4):<\/strong> <strong>In-kind transfers<\/strong> to individual beneficiary\/household\/service provider \u2014 includes schemes where in-kind benefits are given by Government or through any Implementing Agency.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcbb<\/span><span><strong>Sub-rules (5) & (6):<\/strong> Ministries\/Departments shall use <strong>PFMS platform<\/strong> for processing of DBT payments. Implementing Agencies shall generate <strong>Electronic Utilisation Certificates (E-UCs) on PFMS portal<\/strong> online \u2014 to certify that money was actually utilised for the purpose sanctioned, eliminating the need for physical UCs.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcb0<\/span><span><strong>Sub-rule (7):<\/strong> Transaction charges for financial intermediaries facilitating DBT payments shall be paid as stipulated by <strong>Ministry of Finance<\/strong>.<\/span><\/li>\n <\/ul>\n <\/div>\n\n \n <div style=\"background:#e8f0ff;border-left:5px solid #1a3a6b;padding:10px 18px;border-radius:0 6px 6px 0;margin:44px 0 10px;font-weight:700;color:#1a3a6b;font-size:14px;letter-spacing:.04em;text-transform:uppercase\">Section II \u2014 Annual Accounts (Rules 88\u201391)<\/div>\n\n \n <div class=\"rule-block\" id=\"ch4r88\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 88<\/span><span class=\"rule-title\">Appropriation Accounts<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccb<\/span><span>Appropriation Accounts of Central Ministries (except Railways) and Civil Departments (except Posts and Defence) shall be <strong>prepared by the Principal Accounts Officers<\/strong> of the respective Ministries\/Departments (under guidance and supervision of CGA) and <strong>signed by the Chief Accounting Authority (Secretary)<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcd2<\/span><span><strong>Union Government Appropriation Accounts (Civil)<\/strong> submitted to Parliament shall be <strong>prepared by the CGA<\/strong> by consolidating the aforesaid Appropriation Accounts.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>Special cases:\n <ul class=\"blist-sub\">\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span><strong>Department of Posts:<\/strong> Prepared and signed by the <strong>Secretary, Dept of Posts<\/strong><\/span><\/li>\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span><strong>Defence Services:<\/strong> Prepared and signed by the <strong>Secretary, Ministry of Defence<\/strong><\/span><\/li>\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span><strong>Ministry of Railways:<\/strong> Signed by the <strong>Chairman, Railway Board<\/strong><\/span><\/li>\n <\/ul>\n <\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch4r89\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 89<\/span><span class=\"rule-title\">Finance Accounts<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udcd2<\/span><span>Annual accounts of the Government of India \u2014 including transactions of Posts, Defence, Railways, and UT Governments under the Public Account \u2014 showing annual receipts, disbursements and statement of balances, are called <strong>Finance Accounts<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\u270d\ufe0f<\/span><span>Finance Accounts shall be <strong>prepared and signed by the CGA<\/strong> and <strong>countersigned by the Secretary (Expenditure), Ministry of Finance<\/strong>.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch4r90\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 90<\/span><span class=\"rule-title\">Presentation of Annual Accounts<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udcc5<\/span><span>Appropriation and Finance Accounts shall be prepared on <strong>dates mutually agreed upon with the CAG<\/strong>, in forms prescribed by the President on the advice of the CAG, and sent to the CAG for recording his\/her certificate.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcdc<\/span><span>The certified Annual Accounts and Reports shall be submitted by the <strong>CAG to the President<\/strong> in accordance with <strong>Section 11 of the CAG (Duties, Powers and Conditions of Service) Act, 1971<\/strong> and <strong>Article 151(1)<\/strong> of the Constitution.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch4r91\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 91<\/span><span class=\"rule-title\">Disclosure of Financial Stakes in PPP \/ JV \/ Subsidiary Companies<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udce2<\/span><span>Administrative Ministries \/ PSUs \/ Subordinate \/ Statutory \/ Autonomous Bodies may have financial stakes in <strong>PPP \/ Production Sharing Contracts (PSCs) \/ Joint Ventures (JVs) \/ Subsidiary companies<\/strong>. Details of such financial stakes shall be <strong>disclosed in the Annual Report of the Administrative Ministry<\/strong>.<\/span><\/li>\n <\/ul>\n <\/div>\n\n \n <div style=\"background:#f0faf5;border-left:5px solid #2aab6e;padding:10px 18px;border-radius:0 6px 6px 0;margin:44px 0 10px;font-weight:700;color:#1a6b5a;font-size:14px;letter-spacing:.04em;text-transform:uppercase\">Sections III & IV \u2014 Proforma Accounts and Personal Deposit Accounts (Rules 92\u201397)<\/div>\n\n \n <div class=\"rule-block\" id=\"ch4r92\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 92<\/span><span class=\"rule-title\">Subsidiary Accounts of Commercial Government Departments<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83c\udfed<\/span><span>Where operations of certain Government Departments working on a <strong>commercial or quasi-commercial basis<\/strong> (e.g., industrial factory or store) cannot be suitably brought within the cash-based accounting system, the Head of the unit shall maintain <strong>subsidiary proforma accounts in commercial form<\/strong>, as agreed between Government and CAG.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcd2<\/span><span>This includes maintenance of <strong>Manufacturing, Trading, Profit & Loss Accounts and Balance Sheet<\/strong>.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch4r93\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rules 93\u201395<\/span><span class=\"rule-title\">Methods, Cost Accuracy and Submission of Proforma Accounts<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccb<\/span><span><strong>R.93:<\/strong> Methods and principles for proforma accounts shall be <strong>regulated by orders and instructions issued by Government<\/strong> in each case. Regular Workshops\/Factories follow departmental regulations; Public Works proforma accounts prepared by Accounts Officers per Account Code for Accountants General.<\/span><\/li>\n <li><span class=\"bi\">\u2705<\/span><span><strong>R.94:<\/strong> Where commercial accounts are maintained for <strong>cost assessment<\/strong>, the Head of the unit shall ensure that <strong>adequate regulations are framed with Government approval<\/strong> to ensure the cost deduced is <strong>accurate and true<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcc5<\/span><span><strong>R.95:<\/strong> Such accounts and statements shall be submitted to the <strong>Accounts Officer on such date as required<\/strong> and shall be <strong>appended to the Appropriation Accounts<\/strong> of each year.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch4r96\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 96<\/span><span class=\"rule-title\">Personal Deposit Account \u2014 Concept<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83c\udfe6<\/span><span>A <strong>Personal Deposit (PD) Account<\/strong> is a device to facilitate the <strong>Designated Officer<\/strong> to credit receipts into and effect withdrawals directly from the account, subject to an overall check by the bank.<\/span><\/li>\n <li><span class=\"bi\">\u26d4<\/span><span>The Designated Officer shall ensure that <strong>no withdrawal will result in a minus balance<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udc64<\/span><span>Only <strong>Government officers acting in their official or any other capacity<\/strong> shall be the Designated Officer.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch4r97\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 97<\/span><span class=\"rule-title\">Authority to Open Personal Deposit Account \u2014 Five Types<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83c\udfdb\ufe0f<\/span><span><strong>Sub-rule (1):<\/strong> Authorised to be opened by a <strong>special order of the concerned Ministry\/Department in consultation with the CGA<\/strong>. Every PD Account shall <strong>form part of the Government Account<\/strong> and be located in the <strong>Public Account<\/strong>.<\/span><\/li>\n <\/ul>\n <div class=\"box-amber\">\n <div class=\"box-amber-lbl\">\u2b50 Five Types of Cases \u2014 PD Accounts Authorised<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">1\ufe0f\u20e3<\/span><span><strong>(a)<\/strong> In favour of Designated Officer administering monies tendered by or on behalf of <strong>wards and attached estates<\/strong> under Government management<\/span><\/li>\n <li><span class=\"bi\">2\ufe0f\u20e3<\/span><span><strong>(b)<\/strong> In relation to <strong>Civil and Criminal Courts' deposits<\/strong> \u2014 in favour of the Chief Judicial Authority concerned<\/span><\/li>\n <li><span class=\"bi\">3\ufe0f\u20e3<\/span><span><strong>(c)<\/strong> Where, under certain <strong>regulatory activities<\/strong> of Government, receipts are realised and credited to a Fund\/Account under an Act to be utilised thereunder \u2014 and <strong>no outgo from the Consolidated Fund is involved<\/strong><\/span><\/li>\n <li><span class=\"bi\">4\ufe0f\u20e3<\/span><span><strong>(d)<\/strong> Where a PD Account is required to be created by a <strong>law or rules having the force of law<\/strong> and certain liabilities devolve on Government out of special enactments<\/span><\/li>\n <li><span class=\"bi\">5\ufe0f\u20e3<\/span><span><strong>(e)<\/strong> Officers commanding units and others concerned in the administration of <strong>public funds in the Defence Departments<\/strong><\/span><\/li>\n <\/ul>\n <\/div>\n <\/div>\n\n \n <div style=\"background:#fffbe6;border-left:5px solid #c9a227;padding:10px 18px;border-radius:0 6px 6px 0;margin:44px 0 10px;font-weight:700;color:#7a5500;font-size:14px;letter-spacing:.04em;text-transform:uppercase\">Section V \u2014 Capital and Revenue Accounts (Rules 98\u2013103)<\/div>\n\n \n <div class=\"rule-block\" id=\"ch4r98\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 98<\/span><span class=\"rule-title\">Capital Expenditure \u2014 Detailed Definition and Rules<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83c\udfd7\ufe0f<\/span><span>Capital expenditure = significant expenditure to acquire <strong>tangible assets of a permanent nature<\/strong> (not for sale) or to <strong>enhance the utility of existing assets<\/strong>. Revenue expenditure = maintenance, repair, upkeep, working expenses and establishment\/administrative costs.<\/span><\/li>\n <li><span class=\"bi\">\u26d4<\/span><span><strong>Temporary assets and grants-in-aid<\/strong> cannot ordinarily be classified as Capital expenditure unless specifically authorised by the <strong>President on the advice of the CAG<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcb0<\/span><span>Capital expenditure is generally met from <strong>capital receipts<\/strong> (as distinguished from ordinary revenues from taxes, duties, fees, fines). However, it is open to Government to meet capital expenditure from ordinary revenues if <strong>sufficient revenue resources<\/strong> are available.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccb<\/span><span>Expenditure of a capital nature shall <strong>not be classed as Capital expenditure<\/strong> in Government Accounts unless the classification has been <strong>expressly authorised by general or special orders of Government<\/strong>. Must be distinguished from Revenue expenditure in both Budget Estimates and Accounts.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch4r99\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 99<\/span><span class=\"rule-title\">Principles for Allocation between Capital and Revenue \u2014 Five Principles<\/span><\/div>\n <div class=\"box-blue\">\n <div class=\"box-blue-lbl\">\ud83d\udccc Five Principles of Capital vs Revenue Allocation<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83c\udd50<\/span><span><strong>(a) Capital bears:<\/strong> Charges for <strong>first construction and equipment<\/strong> of a project \u00b7 <strong>Intermediate maintenance<\/strong> while not yet opened for service \u00b7 <strong>Improvements enhancing asset life<\/strong> (as sanctioned under rules of competent authority)<\/span><\/li>\n <li><span class=\"bi\">\ud83c\udd51<\/span><span><strong>(b) Revenue bears:<\/strong> Subsequent charges for <strong>maintenance and all working expenses<\/strong> \u00b7 Expenditure on working and upkeep of the project \u00b7 Renewals, replacements, additions or improvements of revenue nature<\/span><\/li>\n <li><span class=\"bi\">\ud83c\udd52<\/span><span><strong>(c) Renewal\/Replacement (mixed nature):<\/strong> <strong>Revenue should pay or provide a fund<\/strong> for adequate replacement of all wastage or depreciation of property originally provided from capital grants. Only the cost of genuine improvements enhancing asset life may be debited to Capital. Where a Depreciation\/Renewals Reserve Fund is established, distribution shall guard against over-capitalisation on the one hand and excessive Fund withdrawals on the other.<\/span><\/li>\n <li><span class=\"bi\">\ud83c\udd53<\/span><span><strong>(d) Extraordinary calamities<\/strong> (flood, fire, earthquake, enemy action, etc.): Expenditure charged to Capital, Revenue, or divided between them \u2014 depending on whether <strong>new asset is created<\/strong> (Capital) or <strong>existing asset is merely restored<\/strong> (Revenue), as determined by Government.<\/span><\/li>\n <li><span class=\"bi\">\ud83c\udd54<\/span><span><strong>(e) Temporary assets<\/strong> \u2192 not Capital expenditure except where specifically authorised by the <strong>President on the advice of the CAG<\/strong>.<\/span><\/li>\n <\/ul>\n <\/div>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch4r100\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 100<\/span><span class=\"rule-title\">Allocation between Capital and Revenue on Capital Schemes<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccb<\/span><span>For Capital schemes where separate Capital and Revenue Accounts are kept, allocation shall be determined in accordance with <strong>Govt orders prescribed after consultation with the CAG<\/strong>.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch4r101\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 101<\/span><span class=\"rule-title\">Capital Receipts during Construction \u2014 Utilised to Reduce Capital Expenditure<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>Capital receipts relating to expenditure previously debited to Capital, accruing <strong>during the process of construction<\/strong>, shall be <strong>utilised in reduction of capital expenditure<\/strong>. Thereafter they shall <strong>not be credited to the revenue account<\/strong> except under special rule or order of Government.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch4r102\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 102<\/span><span class=\"rule-title\">Receipts Representing Recoveries of Capital Expenditure<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>Receipts and recoveries on Capital Account in so far as they represent <strong>recoveries of expenditure previously debited to a Capital Major Head<\/strong> shall be taken in <strong>reduction of expenditure under that Major Head<\/strong> \u2014 except where rules of allocation for a particular department require them to be taken to Revenue.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch4r103\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 103<\/span><span class=\"rule-title\">Conversion of Outstanding Loans into Equity Investments or Grants-in-Aid<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udd04<\/span><span>Where loans outstanding against PSUs are proposed to be <strong>converted into equity investments or grants-in-aid<\/strong>, <strong>approval of Parliament<\/strong> shall be obtained by including a <strong>token provision in the relevant DFG or Supplementary DFG<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcd2<\/span><span>After obtaining Parliamentary approval, the balances under loans and progressive expenditure shall be <strong>corrected proforma in the relevant Accounts<\/strong> under the Loan\/Capital Major Heads concerned.<\/span><\/li>\n <\/ul>\n <\/div>\n\n \n <div style=\"background:#f0f4ff;border-left:5px solid #1a3a6b;padding:10px 18px;border-radius:0 6px 6px 0;margin:44px 0 10px;font-weight:700;color:#1a3a6b;font-size:14px;letter-spacing:.04em;text-transform:uppercase\">Section VI \u2014 Interest on Capital (Rules 104\u2013107)<\/div>\n\n \n <div class=\"rule-block\" id=\"ch4r104\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 104<\/span><span class=\"rule-title\">Interest Rate on Capital \u2014 Commercial Departments<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udcb0<\/span><span>Interest at rates <strong>specified by Government from time to time<\/strong> shall be charged in the accounts of all <strong>Commercial Departments or units<\/strong> for which separate capital and revenue accounts are maintained within Government accounts.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch4r105\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 105<\/span><span class=\"rule-title\">Charging Interest on Capital Outlay \u2014 Two Methods<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83c\udfe6<\/span><span><strong>Sub-rule (1) \u2014 Specific Loans:<\/strong> For capital outlay met from <strong>specific loans raised by Government<\/strong>, interest shall be charged at a rate prescribed by Government, having regard to the rate of interest actually paid on such loans and incidental charges. Specific loans = loans raised in the open market for one specific purpose clearly specified in the prospectus.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcb0<\/span><span><strong>Sub-rule (2) \u2014 Other Capital Outlay:<\/strong> For capital outlay provided otherwise, interest shall be charged at a rate determined <strong>each year by the Department of Economic Affairs, MoF<\/strong>.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch4r106\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 106<\/span><span class=\"rule-title\">Method of Calculation of Interest on Capital<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udcd0<\/span><span>Interest shall be calculated on the <strong>direct capital outlay at the end of the previous year + half the outlay of the current year itself<\/strong> \u2014 irrespective of whether such outlay has been met from current revenues or from other sources.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch4r107\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 107<\/span><span class=\"rule-title\">Writing Back of Capitalised Interest<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>When charges for interest during the process of construction are temporarily met from capital, the <strong>writing back of capitalised interest shall form the first charge<\/strong> on any capital receipts or surplus revenue derived from the project when opened for working.<\/span><\/li>\n <\/ul>\n <\/div>\n\n \n <div style=\"background:#f0faf5;border-left:5px solid #2aab6e;padding:10px 18px;border-radius:0 6px 6px 0;margin:44px 0 10px;font-weight:700;color:#1a6b5a;font-size:14px;letter-spacing:.04em;text-transform:uppercase\">Sections VII & VIII \u2014 Adjustments with Govts, Departments and Inter-Departmental (Rules 108\u2013129)<\/div>\n\n \n <div class=\"rule-block\" id=\"ch4r108\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 108<\/span><span class=\"rule-title\">Adjustments with State Governments \u2014 Seven Specific Matters<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>Adjustments with State Governments shall be made as <strong>mutually agreed<\/strong> between the Central and State Government concerned, unless otherwise provided by the Constitution or law.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccb<\/span><span>Seven specific matters are regulated by <strong>Appendix-5 to the Government Accounting Rules, 1990<\/strong> (binding on all State Governments):\n <ul class=\"blist-sub\">\n <li><span class=\"bsi\">1\ufe0f\u20e3<\/span><span>Pay and Allowances (other than Leave Salaries)<\/span><\/li>\n <li><span class=\"bsi\">2\ufe0f\u20e3<\/span><span>Leave Salaries<\/span><\/li>\n <li><span class=\"bsi\">3\ufe0f\u20e3<\/span><span>Pensions<\/span><\/li>\n <li><span class=\"bsi\">4\ufe0f\u20e3<\/span><span>Expenditure involved in Audit and keeping Accounts<\/span><\/li>\n <li><span class=\"bsi\">5\ufe0f\u20e3<\/span><span>Cost of Police functions on Railways including cost of protecting Railway Bridges<\/span><\/li>\n <li><span class=\"bsi\">6\ufe0f\u20e3<\/span><span>Cost of Forest Surveys by Survey of India and Forest maps prepared by that Department<\/span><\/li>\n <li><span class=\"bsi\">7\ufe0f\u20e3<\/span><span>Leave Salary and Pension Contributions recovered in respect of Government servants lent on Foreign Service<\/span><\/li>\n <\/ul>\n <\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch4r109\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 109<\/span><span class=\"rule-title\">Re-audit \u2014 Three Year Period<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udcc5<\/span><span>As a convention, a period of <strong>three years<\/strong> has been accepted by Central and State Governments for the <strong>re-audit of past transactions involving errors in classification<\/strong>. <span class=\"tag-red\">\u2757 3 years<\/span><\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch4r110\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 110<\/span><span class=\"rule-title\">When Adjustment with State Govt is Necessary<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>Adjustment shall always be made unless otherwise agreed upon, if:\n <ul class=\"blist-sub\">\n <li><span class=\"bsi\">(a)<\/span><span>A <strong>commercial department or undertaking or a regularly organised store department<\/strong> is concerned, or<\/span><\/li>\n <li><span class=\"bsi\">(b)<\/span><span>Under the operation of any rule or order, an adjustment would have been made if the particular transaction with State Government <strong>were a transaction between two departments of the Central Government<\/strong><\/span><\/li>\n <\/ul>\n <\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch4r111\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 111<\/span><span class=\"rule-title\">Petty and Isolated Claims \u2014 Not to Be Preferred<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>The Central Government (including Union Territories) and the State Governments have agreed under <strong>reciprocal arrangements not to prefer petty and isolated claims for an amount not exceeding \u20b910,000<\/strong> against one another. <span class=\"tag-red\">\u2757 \u20b910,000<\/span><\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch4r112\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 112<\/span><span class=\"rule-title\">Criteria for Reciprocal Arrangement<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>For a claim to be covered by the reciprocal arrangement, it must be:\n <ul class=\"blist-sub\">\n <li><span class=\"bsi\">\u2705<\/span><span>Both <strong>petty AND of an occasional character<\/strong><\/span><\/li>\n <li><span class=\"bsi\">\u2705<\/span><span>Cover <strong>services rendered<\/strong> \u2014 not supplies (unless the latter forms part of the service)<\/span><\/li>\n <\/ul>\n <\/span><\/li>\n <li><span class=\"bi\">\u26d4<\/span><span>Claims relating to <strong>Commercial undertakings<\/strong> (Railways, Posts, Electrical undertakings, etc.) shall <strong>fall outside<\/strong> the purview and continue to be settled as hitherto.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcc5<\/span><span>Arrangement remains in force <strong>without any time limit<\/strong> in respect of all State Governments.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch4r113\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 113<\/span><span class=\"rule-title\">Projects Jointly Executed by Several State Governments<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83c\udfd7\ufe0f<\/span><span>Where expenditure is to be shared by several participating Governments in agreed proportions but incurred ab-initio by one Government, <strong>recoveries from other Governments shall be exhibited as abatement of charges<\/strong> under the relevant expenditure Head of Account in the books of the Government incurring the expenditure initially.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch4r114\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rules 114\u2013116<\/span><span class=\"rule-title\">Agency Functions under Article 258 \u2014 Claims of State Governments<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccb<\/span><span><strong>R.114:<\/strong> Claims of State Governments for extra cost of agency functions under <strong>Article 258<\/strong> shall be dealt with and settled in accordance with such directions as may be issued by the President.<\/span><\/li>\n <li><span class=\"bi\">\ud83c\udfed<\/span><span><strong>R.115 \u2014 Key principles:<\/strong>\n <ul class=\"blist-sub\">\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span>State Commercial Department engaged \u2192 may charge its <strong>normal commercial costs<\/strong><\/span><\/li>\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span>PWD agency costs \u2192 <strong>percentage charges on cost<\/strong> of Central Works as agreed between Centre and State<\/span><\/li>\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span>Charges per item \u2264 <strong>\u20b950,000 per annum<\/strong> \u2192 offer <strong>5-year contract<\/strong> at fixed sum per annum (reviewed every 5 years) <span class=\"tag-red\">\u2757 \u20b950,000 \/ 5-year<\/span><\/span><\/li>\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span>Charges per item > \u20b950,000 \u2192 <strong>annual statement<\/strong> of proposed charges required at budget time (contract system may still be adopted if charges are obviously static)<\/span><\/li>\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span>Arbitration in exceptional cases \u2192 arranged by MoF \u00b7 MoF to be consulted on all Art.258(3) matters<\/span><\/li>\n <\/ul>\n <\/span><\/li>\n <li><span class=\"bi\">\ud83d\udd04<\/span><span><strong>R.116 \u2014 Procedure for transactions:<\/strong>\n <ul class=\"blist-sub\">\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span><strong>Extra staff\/contingency cost<\/strong> (e.g., Census administration): provided in State Budget first; <strong>reimbursed in lumpsum<\/strong> by Centre under distinct sub-head \"Amounts paid to other Governments, Departments, etc.\"<\/span><\/li>\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span><strong>Work entrusted to State<\/strong> (e.g., National Highways, Defence Works): expenditure adjusted <strong>direct in Central accounts<\/strong> under relevant Head \u00b7 adjusted under <strong>Head 8658 \u2014 Suspense Accounts \u2014 PAO Suspense<\/strong> in State accounts pending eventual clearance<\/span><\/li>\n <\/ul>\n <\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch4r117\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 117<\/span><span class=\"rule-title\">Crucial Date for Closure of Inter-Governmental Adjustments<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udcc5<\/span><span>Inter-Governmental adjustments can be carried out up to the <strong>10th of April<\/strong> (or the date specified by CGA in consultation with RBI from time to time) \u2014 which is the date on which the books of the Reserve Bank are closed for the month of March. <span class=\"tag-red\">\u2757 10th April<\/span><\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>Every endeavour must be made to <strong>settle all transactions with State Governments before the close of the year<\/strong>.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch4r118\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 118<\/span><span class=\"rule-title\">Adjustments with Foreign Governments and Outside Bodies \u2014 Services Only on Payment<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83c\udf10<\/span><span>Unless exempted by Government by general or special orders, services shall <strong>not be rendered to any foreign Government or non-Government body or institution or to a separate fund<\/strong> except <strong>on payment<\/strong>.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch4r119\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 119<\/span><span class=\"rule-title\">Recoveries for Services Rendered to Non-Government Parties \u2014 Classified as Receipts<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>Recoveries of expenditure for services rendered or supplies made to <strong>non-Government parties or other Governments<\/strong> (including local funds and Governments outside India) shall, in all cases, be <strong>classified as receipts<\/strong> of the Government rendering such services.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch4r120\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 120<\/span><span class=\"rule-title\">Recoveries Where Government Acts as Agent \u2014 Net Cost to Government = Nil<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>When a Government undertakes a service merely as an <strong>agent of a private body<\/strong>, the <strong>entire cost of the service shall be recovered<\/strong> from that body so that the <strong>net cost to Government is nil<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>The recoveries shall be taken as <strong>reduction of expenditure<\/strong>.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch4r121\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 121<\/span><span class=\"rule-title\">Relief to Outside Body \u2014 Through Grant-in-Aid, Not Remission of Dues<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>Any relief in respect of payment for services rendered or supplies made to any outside body or fund shall ordinarily be given through a <strong>grant-in-aid<\/strong> rather than by <strong>remission of dues<\/strong>.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch4r122\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 122<\/span><span class=\"rule-title\">Charges Relating to Maintenance and Demarcation of International Boundaries<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83c\udf0d<\/span><span><strong>Maintenance:<\/strong> <strong>Half the maintenance charges<\/strong> shall be borne by the Central Government; the other half recovered from the foreign country. If recovery fails, the foreign country's share shall also be borne by the Central Government.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccb<\/span><span><strong>Demarcation and Disputes:<\/strong> Charges relating to demarcation of boundaries and boundary disputes shall be borne by the Central Government under <strong>Entry 10 of the Union List<\/strong>, subject to such recovery as shall be made from the foreign country.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udca7<\/span><span><strong>Watercourse boundaries<\/strong> (median line principle): Each Government bears the cost of maintenance of the boundary line and survey marks on <strong>its own side<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>Exceptions:<\/strong> Application to <strong>Nepal<\/strong> \u2014 subject to special arrangements worked out in consultation with Nepal Government. <strong>Bhutan's<\/strong> share for maintenance, demarcation and disputes shall be <strong>borne by the Central Government for the present<\/strong>.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch4r123\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 123<\/span><span class=\"rule-title\">Inter-Departmental Adjustments \u2014 Service vs Commercial Departments<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\u26d4<\/span><span>A <strong>Service Department shall NOT charge other Departments<\/strong> for services rendered or supplies made which fall within the class of duties for which it is constituted.<\/span><\/li>\n <li><span class=\"bi\">\u2705<\/span><span>A <strong>Commercial Department or undertaking shall ordinarily charge<\/strong> and be charged for any supplies made and services rendered to, or by, other departments of Government.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch4r124\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 124<\/span><span class=\"rule-title\">Division of Departments \u2014 Service vs Commercial<\/span><\/div>\n <div class=\"box-amber\">\n <div class=\"box-amber-lbl\">\u2b50 Service vs Commercial Departments<\/div>\n <table style=\"width:100%;border-collapse:collapse;font-size:14px;margin-top:6px\">\n <thead>\n <tr style=\"background:#c9a227;color:#1a3400\">\n <th style=\"padding:8px 12px;text-align:left\">Type<\/th>\n <th style=\"padding:8px 12px;text-align:left\">Description<\/th>\n <th style=\"padding:8px 12px;text-align:left\">Examples<\/th>\n <\/tr>\n <\/thead>\n <tbody>\n <tr style=\"background:#fffdf0;border-bottom:1px solid #e8e0c0\">\n <td style=\"padding:8px 12px\"><strong>Service Departments<\/strong><\/td>\n <td style=\"padding:8px 12px\">Discharge functions inseparable from Govt or necessary for its general conduct \u00b7 Do NOT charge other depts for normal functions<\/td>\n <td style=\"padding:8px 12px\">Police, Jails, Justice, Education, Medical, Public Health, Forest, Defence, Survey, Govt Printing, Stationery, CPWD, DGS&D<\/td>\n <\/tr>\n <tr style=\"background:#fff8e8\">\n <td style=\"padding:8px 12px\"><strong>Commercial Departments<\/strong><\/td>\n <td style=\"padding:8px 12px\">Render services or provide supplies on payment \u00b7 Work to a financial result through commercial accounts \u00b7 Functions not necessarily governmental<\/td>\n <td style=\"padding:8px 12px\">Railways, Department of Posts, Electrical Undertakings, Industrial Factories\/Stores<\/td>\n <\/tr>\n <\/tbody>\n <\/table>\n <\/div>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch4r125\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 125<\/span><span class=\"rule-title\">Period for Preferment of Inter-Departmental Claims<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udcc5<\/span><span>All claims shall ordinarily be preferred between Departments within the <strong>same financial year<\/strong> and <strong>not beyond three years from the date of transaction<\/strong>. This limitation may be waived in specific cases by <strong>mutual agreement<\/strong>. <span class=\"tag-red\">\u2757 3 years<\/span><\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch4r126\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 126<\/span><span class=\"rule-title\">Procedure for Settlement of Inter-Departmental Adjustments<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccb<\/span><span>Settlement of inter-departmental adjustments shall be regulated by the directions contained in <strong>Chapter 4 of Government Accounting Rules, 1990<\/strong>.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch4r127\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 127<\/span><span class=\"rule-title\">Inter-Departmental Adjustments to Be Made in the Account Year<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udcc5<\/span><span>Inter-departmental and other adjustments are to be made in the <strong>accounts of the current year<\/strong>, not the past year, if they could not have been reasonably anticipated in time for funds to be obtained from the proper authority.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>For <strong>recurring or fixed-character payments<\/strong> to another Government or department, the Accounts Officer will <strong>automatically make the adjustment before the accounts are finally closed<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\u2696\ufe0f<\/span><span>The <strong>onus of proving that adjustments could not have been reasonably anticipated<\/strong> shall lie with the <strong>Controlling Officer<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>Classification of recoveries<\/strong> between departments of the same Government:\n <ul class=\"blist-sub\">\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span>Recoveries by a <strong>Service Department<\/strong> for services rendered to another Dept = <strong>deduction from gross expenditure<\/strong><\/span><\/li>\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span>Recoveries by a <strong>Commercial Department<\/strong> (Railways, Posts, etc.) for its constituted functions = <strong>receipts of that Department<\/strong><\/span><\/li>\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span>Commercial Dept acting as <strong>agent<\/strong> for functions not germane to its essential purpose = <strong>reduction of expenditure<\/strong><\/span><\/li>\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span>Exception: Recoveries of fees for purchase, inspection, etc. by <strong>Central Purchase Organisations<\/strong> of GoI = treated as <strong>receipts of the Department concerned<\/strong><\/span><\/li>\n <\/ul>\n <\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccb<\/span><span>Recoveries classified as deduction from gross expenditure shall be shown in the relevant DFG as <strong>\"below the line\" recovery<\/strong> under the appropriate Major Head. Recovery actually effected shall be adjusted in the schedule of recovery attached to the <strong>Appropriation Account of the year in which recovery is effected<\/strong>.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch4r128\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 128<\/span><span class=\"rule-title\">Adjustment of Pensionary Charges of Commercial Departments<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udcb0<\/span><span><strong>With proforma commercial accounts:<\/strong> Pensionary liability of commercial departments and undertakings shall be assessed on a <strong>contribution basis at rates fixed by Government<\/strong> from time to time.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcb0<\/span><span><strong>Without proforma commercial accounts<\/strong> (but allowed to charge for products\/services): Pensionary liability shall be taken into account in <strong>overhead charges and manufacturing costs<\/strong> for calculating the issue price of goods or fees for services rendered, at <strong>rates prescribed by Government<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>Note:<\/strong> The <strong>Railways, Posts and Defence Departments<\/strong> are regarded as <strong>separate Governments<\/strong> for the purpose of adjustment of pensionary charges.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch4r129\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 129<\/span><span class=\"rule-title\">Pensionary Liability for Government Departments Declared as Commercial<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udcd0<\/span><span>In the case of Government Departments and Undertakings <strong>declared as commercial<\/strong>, adjustment of pensionary liability shall be made in the regular accounts by charging the <strong>average of the percentage for the 15th year of service<\/strong>, based on the rates of monthly contribution of pension as prescribed in the appropriate order issued from time to time under <strong>Appendix-II of Fundamental and Supplementary Rules<\/strong>.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"box-amber\" style=\"margin-top:36px\">\n <div class=\"box-amber-lbl\">\u2b50 Numbers and Key Facts to Remember \u2014 Chapter 4<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>6 months<\/strong> \u2014 preferred time limit for submission of accounts to President after close of FY (R.71)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>Art.150<\/strong> \u2014 form of accounts prescribed by President on advice of CAG \u00b7 CGA prescribes on behalf of President (R.72)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>Cash-based accounting<\/strong> \u2014 actual cash receipts and disbursements, not amounts due (R.74)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>Three Parts<\/strong> of accounts: Consolidated Fund (Part I) \u00b7 Contingency Fund (Part II, single Major Head) \u00b7 Public Account (Part III) (R.77)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>Six tiers<\/strong>: Major Head (function) \u2192 Minor Head (programme) \u2192 Sub-Head (scheme) \u2192 Detailed Head (sub-scheme) \u2192 Object Head (economic nature) \u00b7 <strong>15-digit code<\/strong> (R.78)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>PFMS<\/strong> \u2014 integrated FMS of CGA \u00b7 'just-in-time' payments \u00b7 DDG uploaded at start of FY \u00b7 re-appropriation\/surrender orders through PFMS (R.86)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>DBT \u2014 three routes<\/strong>: directly from Ministry \/ State Treasury Account \/ Implementing Agency \u00b7 E-UCs on PFMS portal (R.87)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>Finance Accounts<\/strong>: prepared and signed by CGA \u00b7 countersigned by Secretary (Expenditure), MoF (R.89)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>Art.112(3)<\/strong> \u2014 Charged expenditure; not subject to vote \u00b7 All others = Voted (R.83)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>Capital interest formula<\/strong>: outlay at end of previous year + \u00bd outlay of current year (R.106)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>7 specific matters<\/strong> with State Govts regulated by Appendix-5 to GAR 1990 (R.108)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>\u20b910,000<\/strong> \u2014 petty claims not preferred under reciprocal arrangement (R.111)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>\u20b950,000 per annum<\/strong> \u2014 threshold for 5-year contract vs annual statement for Art.258 agency work (R.115)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>10th April<\/strong> \u2014 Inter-Governmental adjustments closed (RBI books close for March) (R.117)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>3 years<\/strong> \u2014 period for preferment of inter-departmental claims \u00b7 also period for re-audit (R.109, R.125)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>Railways, Posts and Defence<\/strong> \u2014 treated as separate Governments for pensionary charges adjustment (R.128)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>Head <strong>8658 \u2014 PAO Suspense<\/strong>: used for State expenditure on Central works pending clearance (R.116)<\/span><\/li>\n <\/ul>\n <\/div>\n <\/div>\n\n \n \n\n <div id=\"ch5\" class=\"ch-block\">\n\n <div class=\"ch-banner\">\n <div class=\"ch-num\">Chapter 5<\/div>\n <div class=\"ch-title\">Works<\/div>\n <div class=\"ch-range\">Rules 130 to 141 \u00b7 Definitions \u00b7 Execution \u00b7 Review of Projects<\/div>\n <\/div>\n\n \n <div class=\"idx-outer\">\n <div class=\"idx-lbl\">Rules at a Glance<\/div>\n <table class=\"idx-table\">\n <thead><tr><th style=\"width:110px\">Rule No.<\/th><th>Rule Title<\/th><th>Key Point<\/th><\/tr><\/thead>\n <tbody>\n <tr><td class=\"r-num\">Rule 130<\/td><td class=\"r-title\">Definitions \u2014 Original, Minor, Repair Works<\/td><td class=\"r-key\">Original = new constructions + additions + alterations + special repairs to purchased\/abandoned structures \u00b7 Minor = adds capital value, no new asset \u00b7 Repair = maintains existing buildings & fixtures<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 131<\/td><td class=\"r-title\">Administrative Control of Works<\/td><td class=\"r-key\">3 elements \u2014 Full responsibility for construction\/maintenance \u00b7 Proper utilisation \u00b7 Provision of funds<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 132<\/td><td class=\"r-title\">Powers to Sanction Works<\/td><td class=\"r-key\">Regulated by DFPR and departmental regulations<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 133<\/td><td class=\"r-title\">Execution \u2014 Direct or through PWO\/PSU<\/td><td class=\"r-key\">Repair \u2264\u20b960 lakh \u2192 Ministry can execute directly \u00b7 Repair >\u20b960 lakh or original works of any value \u2192 assign to PWO (R.133(2)) or PSU\/notified org (R.133(3)) \u00b7 Competition on lump sum service charges mandatory<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 134<\/td><td class=\"r-title\">Works under CPWD<\/td><td class=\"r-key\">Works not allotted to any Ministry \u2192 included in Grants for Civil Works under CPWD \u00b7 No split funding between departmental and civil works budget<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 135<\/td><td class=\"r-title\">General Rules for Works<\/td><td class=\"r-key\">Detailed rules in departmental regulations \u00b7 Empowered project teams for large value projects \u2014 dedicated to project execution only<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 136<\/td><td class=\"r-title\">7 Pre-conditions Before Commencing Works<\/td><td class=\"r-key\">Admin approval \u00b7 Expenditure sanction \u00b7 Detailed design sanctioned (life cycle cost considered) \u00b7 Estimates on Schedule of Rates \u00b7 Funds provided \u00b7 Tenders invited \u00b7 Work Order issued \u00b7 Exception: urgency \u2014 officer's own judgement with simultaneous reporting<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 137<\/td><td class=\"r-title\">Group of Works as One Project<\/td><td class=\"r-key\">Group forming one project = one work for sanction purposes \u00b7 Cannot split to avoid higher authority sanction \u00b7 Does not apply to independent similar works<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 138<\/td><td class=\"r-title\">Savings from Sanctioned Estimates<\/td><td class=\"r-key\">Savings shall not be applied to additional work not in original project without special authority<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 139<\/td><td class=\"r-title\">Procedure for Execution of Works<\/td><td class=\"r-key\">Design & estimates before sanction \u00b7 Admin approval & expenditure sanction before commencement \u00b7 Open tenders: \u20b910 lakh\u2013\u20b960 lakh \u00b7 Limited tenders: <\u20b910 lakh \u00b7 Work Order before commencement \u00b7 Final payment on Officer's Personal Certificate<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 140<\/td><td class=\"r-title\">Works Entrusted to PWO\/PSU<\/td><td class=\"r-key\">AA & expenditure sanction by Ministry \u00b7 PWO\/PSU executes under their own rules \u00b7 MoU may be drawn<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 141<\/td><td class=\"r-title\">Review of Projects<\/td><td class=\"r-key\">Projects \u2265\u20b9100 crore \u2192 Review Committee (Admin Ministry + Finance\/IFW + Executing Agency) mandatory \u00b7 Committee can accept variation within 10% \u00b7 <\u20b9100 crore \u2192 Ministry's discretion<\/td><\/tr>\n <\/tbody>\n <\/table>\n <\/div>\n\n \n <div style=\"background:#f0f4ff;border-left:5px solid #1a3a6b;padding:10px 18px;border-radius:0 6px 6px 0;margin:10px 0;font-weight:700;color:#1a3a6b;font-size:14px;letter-spacing:.04em;text-transform:uppercase\">Definitions and Scope \u2014 Rules 130\u2013132<\/div>\n\n \n <div class=\"rule-block\" id=\"ch5r130\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 130<\/span>\n <span class=\"rule-title\">Definitions \u2014 Original Works, Minor Works, Repair Works<\/span>\n <\/div>\n\n <div class=\"sec-h\">Original Works<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83c\udfd7\ufe0f<\/span><span><strong>Original works<\/strong> means all:<\/span><\/li>\n <\/ul>\n <ul class=\"blist\" style=\"margin-left:28px\">\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>New constructions<\/strong><\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>Site preparation<\/strong><\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>Additions and alterations<\/strong> to existing works<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>Special repairs<\/strong> to newly purchased or previously abandoned buildings or structures, including <strong>remodelling or replacement<\/strong><\/span><\/li>\n <\/ul>\n\n <div class=\"sec-h\">Minor Works<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udd27<\/span><span><strong>Minor works<\/strong> mean works which <strong>add capital value to existing assets but do not create new assets<\/strong>.<\/span><\/li>\n <\/ul>\n\n <div class=\"sec-h\">Repair Works<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udee0\ufe0f<\/span><span><strong>Repair works<\/strong> means works undertaken to <strong>maintain buildings and fixtures<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccb<\/span><span>Works shall also include <strong>services or goods incidental or consequential<\/strong> to the original or repair works.<\/span><\/li>\n <\/ul>\n\n <div class=\"box-amber\">\n <div class=\"box-amber-lbl\">\u2b50 Three Types of Works \u2014 Key Distinction<\/div>\n <table style=\"width:100%;border-collapse:collapse;font-size:14px;margin-top:6px\">\n <thead>\n <tr style=\"background:#f5c518;color:#1a3400\">\n <th style=\"padding:8px 12px;text-align:left\">Type<\/th>\n <th style=\"padding:8px 12px;text-align:left\">Creates New Asset?<\/th>\n <th style=\"padding:8px 12px;text-align:left\">Purpose<\/th>\n <\/tr>\n <\/thead>\n <tbody>\n <tr style=\"background:#fffdf0;border-bottom:1px solid #e8e0c0\">\n <td style=\"padding:8px 12px\"><strong>Original Works<\/strong><\/td>\n <td style=\"padding:8px 12px\"><span class=\"tag-green\">\u2705 Yes<\/span><\/td>\n <td style=\"padding:8px 12px\">New construction \/ additions \/ special repairs to purchased\/abandoned structures<\/td>\n <\/tr>\n <tr style=\"background:#fff8e8;border-bottom:1px solid #e8e0c0\">\n <td style=\"padding:8px 12px\"><strong>Minor Works<\/strong><\/td>\n <td style=\"padding:8px 12px\"><span class=\"tag-amber\">\u2b06\ufe0f Adds capital value<\/span><\/td>\n <td style=\"padding:8px 12px\">Improves existing asset but does not create a new one<\/td>\n <\/tr>\n <tr style=\"background:#fffdf0\">\n <td style=\"padding:8px 12px\"><strong>Repair Works<\/strong><\/td>\n <td style=\"padding:8px 12px\"><span class=\"tag-red\">\u274c No<\/span><\/td>\n <td style=\"padding:8px 12px\">Maintains existing buildings and fixtures \u2014 no capital addition<\/td>\n <\/tr>\n <\/tbody>\n <\/table>\n <\/div>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch5r131\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 131<\/span>\n <span class=\"rule-title\">Administrative Control of Works \u2014 Three Elements<\/span>\n <\/div>\n <p style=\"margin-bottom:13px;color:#444;font-size:15px\">Administrative control of works includes all three of the following:<\/p>\n <ul class=\"blist\">\n <li><span class=\"bi\">1\ufe0f\u20e3<\/span><span><strong>Assumption of full responsibility<\/strong> for construction, maintenance and upkeep.<\/span><\/li>\n <li><span class=\"bi\">2\ufe0f\u20e3<\/span><span><strong>Proper utilisation<\/strong> of buildings and allied works.<\/span><\/li>\n <li><span class=\"bi\">3\ufe0f\u20e3<\/span><span><strong>Provision of funds<\/strong> for execution of these functions.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch5r132\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 132<\/span>\n <span class=\"rule-title\">Powers to Sanction Works<\/span>\n <\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccb<\/span><span>The powers delegated to various subordinate authorities to:\n <ul class=\"blist-sub\">\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span>Accord <strong>administrative approval<\/strong><\/span><\/li>\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span>Sanction <strong>expenditure<\/strong><\/span><\/li>\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span><strong>Re-appropriate funds<\/strong> for works<\/span><\/li>\n <\/ul>\n <\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcdc<\/span><span>\u2026are regulated by the <strong>Delegation of Financial Powers Rules (DFPR)<\/strong> and other orders contained in the respective <strong>departmental regulations<\/strong>.<\/span><\/li>\n <\/ul>\n <\/div>\n\n \n <div style=\"background:#e8f0ff;border-left:5px solid #1a3a6b;padding:10px 18px;border-radius:0 6px 6px 0;margin:44px 0 10px;font-weight:700;color:#1a3a6b;font-size:14px;letter-spacing:.04em;text-transform:uppercase\">Execution of Works \u2014 Rules 133\u2013141<\/div>\n\n \n <div class=\"rule-div\" style=\"margin-top:8px\"><\/div>\n <div class=\"rule-block\" id=\"ch5r133\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 133<\/span>\n <span class=\"rule-title\">Three Modes of Executing Works<\/span>\n <\/div>\n\n <div class=\"sec-h\">Sub-rule (1) \u2014 Direct Execution by Ministry (Repair Works \u2264 \u20b960 Lakh)<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83c\udfdb\ufe0f<\/span><span>A Ministry or Department may, at its discretion, <strong>directly execute repair works estimated to cost up to \u20b960 Lakhs<\/strong>, after following the procedure indicated in Rules 139, 159 & 160. <span class=\"tag-red\">\u2757 \u20b960 lakh threshold<\/span><\/span><\/li>\n <\/ul>\n\n <div class=\"sec-h\">Sub-rule (2) \u2014 Assignment to Public Works Organisation (PWO)<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83c\udfd7\ufe0f<\/span><span>A Ministry or Department may assign:\n <ul class=\"blist-sub\">\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span><strong>Repair works estimated to cost above \u20b960 Lakhs<\/strong>, and<\/span><\/li>\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span><strong>Original\/minor works of any value<\/strong><\/span><\/li>\n <\/ul>\n \u2026to any <strong>Public Works Organisation (PWO)<\/strong> such as:\n <\/span><\/li>\n <\/ul>\n <ul class=\"blist\" style=\"margin-left:28px\">\n <li><span class=\"bi\">\ud83c\udfe2<\/span><span><strong>CPWD<\/strong> (Central Public Works Department)<\/span><\/li>\n <li><span class=\"bi\">\ud83c\udfe2<\/span><span>State Public Works Departments<\/span><\/li>\n <li><span class=\"bi\">\ud83c\udfe2<\/span><span>Other Central Govt. organisations authorised for civil\/electrical works \u2014 <strong>MES<\/strong> (Military Engineering Service), <strong>BRO<\/strong> (Border Roads Organisation), etc.<\/span><\/li>\n <li><span class=\"bi\">\ud83c\udfe2<\/span><span>Construction wings of Railways, Defence, Environment & Forests, Information & Broadcasting, Posts, Space, etc.<\/span><\/li>\n <\/ul>\n\n <div class=\"sec-h\">Sub-rule (3) \u2014 Alternative: Award to PSU or Notified Organisation<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83c\udfed<\/span><span>As an <strong>alternative to Rule 133(2)<\/strong>, a Ministry\/Department may award repair works above \u20b960 lakh and original works of any value to:\n <ul class=\"blist-sub\">\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span><strong>(i)<\/strong> Any <strong>Public Sector Undertaking<\/strong> set up by the Central or State Government to carry out civil or electrical works, or<\/span><\/li>\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span><strong>(ii)<\/strong> Any other Central\/State Govt. organisation\/PSU <strong>notified by MoHUA<\/strong> (Ministry of Housing and Urban Affairs) after evaluating their financial strength and technical competence.<\/span><\/li>\n <\/ul>\n <\/span><\/li>\n <li><span class=\"bi\">\u2696\ufe0f<\/span><span>For award under this sub-rule, the Ministry\/Department shall ensure <strong>competition among such PSUs\/Organisations \u2014 essentially on lump sum service charges<\/strong> to be claimed for execution.<\/span><\/li>\n <\/ul>\n <div class=\"box-red\">\n <span style=\"font-size:18px;flex-shrink:0;margin-top:2px\">\u26a0\ufe0f<\/span>\n <span><strong>Nomination Basis (Exceptional Cases):<\/strong> Award on nomination basis is permissible only in exceptional cases subject to conditions in <strong>Rule 194<\/strong>. Work shall be awarded only on the basis of <strong>lump sum service charge<\/strong> even in such cases.<\/span>\n <\/div>\n <div class=\"box-blue\">\n <div class=\"box-blue-lbl\">\ud83d\udccc Three Modes of Execution \u2014 Summary<\/div>\n <table style=\"width:100%;border-collapse:collapse;font-size:14px;margin-top:6px\">\n <thead>\n <tr style=\"background:#1a3a6b;color:#fff\">\n <th style=\"padding:8px 12px;text-align:left\">Mode<\/th>\n <th style=\"padding:8px 12px;text-align:left\">Applicable To<\/th>\n <th style=\"padding:8px 12px;text-align:left\">Authority<\/th>\n <\/tr>\n <\/thead>\n <tbody>\n <tr style=\"background:#f0f6ff;border-bottom:1px solid #d0dcef\">\n <td style=\"padding:8px 12px\"><strong>Direct [R.133(1)]<\/strong><\/td>\n <td style=\"padding:8px 12px\">Repair works \u2264 \u20b960 lakh<\/td>\n <td style=\"padding:8px 12px\">Ministry\/Dept itself<\/td>\n <\/tr>\n <tr style=\"background:#e8f0ff;border-bottom:1px solid #d0dcef\">\n <td style=\"padding:8px 12px\"><strong>PWO [R.133(2)]<\/strong><\/td>\n <td style=\"padding:8px 12px\">Repair >\u20b960 lakh \u00b7 Original\/minor of any value<\/td>\n <td style=\"padding:8px 12px\">CPWD \/ MES \/ BRO \/ Dept construction wings<\/td>\n <\/tr>\n <tr style=\"background:#f0f6ff\">\n <td style=\"padding:8px 12px\"><strong>PSU\/Notified Org [R.133(3)]<\/strong><\/td>\n <td style=\"padding:8px 12px\">Repair >\u20b960 lakh \u00b7 Original of any value<\/td>\n <td style=\"padding:8px 12px\">Central\/State PSU or MoHUA-notified org \u00b7 Competition on service charges<\/td>\n <\/tr>\n <\/tbody>\n <\/table>\n <\/div>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch5r134\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 134<\/span>\n <span class=\"rule-title\">Works Under Administrative Control of CPWD<\/span>\n <\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83c\udfdb\ufe0f<\/span><span>Works <strong>not specifically allotted to any Ministry or Department<\/strong> shall be included in the <strong>Grants for Civil Works<\/strong> to be administered by the <strong>Central Public Works Department<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\u26d4<\/span><span>No such work may be <strong>financed partly from departmental budget and partly from the budget for Civil Works<\/strong> \u2014 split funding is not permissible.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch5r135\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 135<\/span>\n <span class=\"rule-title\">General Rules for Initiation and Execution of Works<\/span>\n <\/div>\n <div class=\"sec-h\">Sub-rule (1) \u2014 Departmental Regulations Govern<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccb<\/span><span>Subject to Rule 144, the initiation, authorisation and execution of works allotted to a Ministry or Department shall be regulated by <strong>detailed rules and orders in their departmental regulations<\/strong> and other special orders applicable to them.<\/span><\/li>\n <\/ul>\n <div class=\"sec-h\">Sub-rule (2) \u2014 Empowered Project Teams for Large Works<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udc65<\/span><span>A Ministry or Department shall put in place, as far as possible, <strong>empowered project teams for all large value projects<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83c\udfaf<\/span><span>These teams should be <strong>tasked only with project execution and not given other operational duties<\/strong>. <span class=\"tag-amber\">\u2b50 Exam point \u2014 dedicated teams<\/span><\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch5r136\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 136<\/span>\n <span class=\"rule-title\">Seven Pre-conditions Before Commencing Any Work<\/span>\n <\/div>\n <div class=\"sec-h\">Sub-rule (1) \u2014 The Seven Conditions<\/div>\n <p style=\"margin-bottom:13px;color:#444;font-size:15px\">No works shall be commenced or liability incurred in connection with it until <strong>all seven of the following conditions<\/strong> are satisfied:<\/p>\n <ul class=\"blist\">\n <li><span class=\"bi\">1\ufe0f\u20e3<\/span><span><strong>Administrative Approval<\/strong> obtained from the appropriate authority.<\/span><\/li>\n <li><span class=\"bi\">2\ufe0f\u20e3<\/span><span><strong>Sanction to incur expenditure<\/strong> obtained from the competent authority.<\/span><\/li>\n <li><span class=\"bi\">3\ufe0f\u20e3<\/span><span>A <strong>properly detailed design<\/strong> has been sanctioned. While designing, principles of <strong>Life Cycle Cost<\/strong> may also be considered.<\/span><\/li>\n <li><span class=\"bi\">4\ufe0f\u20e3<\/span><span><strong>Estimates<\/strong> containing detailed specifications and quantities have been prepared on the basis of the <strong>Schedule of Rates maintained by CPWD<\/strong> or other PWOs \u2014 and sanctioned.<\/span><\/li>\n <li><span class=\"bi\">5\ufe0f\u20e3<\/span><span><strong>Funds<\/strong> to cover the charge during the year have been provided by competent authority.<\/span><\/li>\n <li><span class=\"bi\">6\ufe0f\u20e3<\/span><span><strong>Tenders invited and processed<\/strong> in accordance with rules.<\/span><\/li>\n <li><span class=\"bi\">7\ufe0f\u20e3<\/span><span>A <strong>Work Order issued<\/strong>.<\/span><\/li>\n <\/ul>\n\n <div class=\"sec-h\">Sub-rule (2) \u2014 Urgency Exception<\/div>\n <div class=\"box-amber\">\n <div class=\"box-amber-lbl\">\u26a0\ufe0f Emergency \/ Urgency Provision<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\u26a1<\/span><span>If on grounds of <strong>urgency<\/strong> the seven conditions cannot be complied with, the concerned <strong>executive officer may act on his own judgement and responsibility<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccb<\/span><span><strong>Simultaneously<\/strong>, he must:\n <ul class=\"blist-sub\">\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span>Initiate action to <strong>obtain approval from the competent authority<\/strong>, and<\/span><\/li>\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span><strong>Intimate the concerned Accounts Officer<\/strong>.<\/span><\/li>\n <\/ul>\n <\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"sec-h\">Sub-rule (3) \u2014 Supplementary Estimate for New Developments<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udcdd<\/span><span>Any development of a project considered necessary <strong>while a work is in progress<\/strong>, which is <strong>not contingent on the execution of work as first sanctioned<\/strong>, shall have to be covered by a <strong>supplementary estimate<\/strong>.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch5r137\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 137<\/span>\n <span class=\"rule-title\">Group of Works to be Treated as One Project<\/span>\n <\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udce6<\/span><span>For the purpose of approval and sanctions, a <strong>group of works which forms one project shall be considered as one work<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\u26d4<\/span><span>The necessity for obtaining approval or sanction of a <strong>higher authority shall not be avoided<\/strong> merely because the cost of each particular work in the project is within the powers of approval or sanction of a lower authority.<\/span><\/li>\n <\/ul>\n <div class=\"box-red\">\n <span style=\"font-size:18px;flex-shrink:0;margin-top:2px\">\u26a0\ufe0f<\/span>\n <span><strong>Anti-splitting Rule:<\/strong> Projects cannot be artificially split into smaller parts to route sanctions through lower authorities. The entire project cost must be evaluated as one work for determining the appropriate sanctioning authority.<\/span>\n <\/div>\n <ul class=\"blist\" style=\"margin-top:12px\">\n <li><span class=\"bi\">\u2705<\/span><span><strong>Exception:<\/strong> This provision shall <strong>not apply in case of works of similar nature which are independent of each other<\/strong>.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch5r138\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 138<\/span>\n <span class=\"rule-title\">Savings from Sanctioned Estimates<\/span>\n <\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\u26d4<\/span><span>Any anticipated or actual savings from a <strong>sanctioned estimate for a definite project<\/strong> shall not, without <strong>special authority<\/strong>, be applied to carry out <strong>additional work not contemplated in the original project<\/strong>.<\/span><\/li>\n <\/ul>\n <div class=\"box-blue\">\n <div class=\"box-blue-lbl\">\ud83d\udccc Rationale<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udca1<\/span><span>Savings in a sanctioned estimate belong to the approved scope of the project. Diverting them to unauthorised additional works would bypass the requirement to obtain a fresh sanction for the new work \u2014 which is not permissible without specific authority.<\/span><\/li>\n <\/ul>\n <\/div>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch5r139\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 139<\/span>\n <span class=\"rule-title\">Procedure for Direct Execution of Works by Ministry \/ Department<\/span>\n <\/div>\n <p style=\"margin-bottom:13px;color:#444;font-size:15px\">The broad procedure to be followed by a Ministry or Department for execution of works under its own arrangements:<\/p>\n <ul class=\"blist\">\n <li><span class=\"bi\">1\ufe0f\u20e3<\/span><span>The detailed procedure shall be prescribed by <strong>departmental regulations framed in consultation with the Accounts Officer<\/strong>, generally based on the principles underlying the financial and accounting rules for similar works carried out by CPWD.<\/span><\/li>\n <li><span class=\"bi\">2\ufe0f\u20e3<\/span><span><strong>Preparation of detailed design and estimates shall precede any sanction<\/strong> for works.<\/span><\/li>\n <li><span class=\"bi\">3\ufe0f\u20e3<\/span><span>No work shall be undertaken before issue of <strong>Administrative Approval and Expenditure Sanction<\/strong> by the competent authority on the basis of the estimates framed.<\/span><\/li>\n <li><span class=\"bi\">4\ufe0f\u20e3<\/span><span><strong>Open tenders<\/strong> shall be called for works costing <strong>\u20b910 lakh to \u20b960 lakh<\/strong>. <span class=\"tag-amber\">\u2b50 \u20b910L\u2013\u20b960L \u2192 Open tender<\/span><\/span><\/li>\n <li><span class=\"bi\">5\ufe0f\u20e3<\/span><span><strong>Limited tenders<\/strong> shall be called for works costing <strong>less than \u20b910 lakhs<\/strong>. <span class=\"tag-amber\">\u2b50 <\u20b910L \u2192 Limited tender<\/span><\/span><\/li>\n <li><span class=\"bi\">6\ufe0f\u20e3<\/span><span><strong>Execution of Contract Agreement or Award of work<\/strong> should be done <strong>before commencement<\/strong> of the work.<\/span><\/li>\n <li><span class=\"bi\">7\ufe0f\u20e3<\/span><span><strong>Final payment<\/strong> for work shall be made only on the <strong>Personal Certificate of the Officer-in-charge<\/strong> of execution of the work, in the following format:<\/span><\/li>\n <\/ul>\n <div class=\"box-green\" style=\"margin-top:10px;font-style:italic;font-size:14px\">\n <div class=\"box-green-lbl\">\ud83d\udcdc Officer's Personal Certificate (Mandatory for Final Payment)<\/div>\n <p style=\"margin:8px 0 0;\">\"I, Executing Officer of (Name of the Work), am personally satisfied that the work has been executed as per the specifications laid down in the Contract Agreement and the workmanship is up to the standards followed in the Industry.\"<\/p>\n <\/div>\n\n <div class=\"box-amber\" style=\"margin-top:14px\">\n <div class=\"box-amber-lbl\">\u2b50 Tender Type Quick Reference (Rule 139)<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udd13<\/span><span><strong>Open Tenders:<\/strong> Works costing <strong>\u20b910 lakh to \u20b960 lakh<\/strong><\/span><\/li>\n <li><span class=\"bi\">\ud83d\udd12<\/span><span><strong>Limited Tenders:<\/strong> Works costing <strong>less than \u20b910 lakhs<\/strong><\/span><\/li>\n <li><span class=\"bi\">\u26a1<\/span><span>For works above \u20b960 lakh \u2192 assigned to PWO\/PSU under Rule 133(2)\/(3), not direct execution<\/span><\/li>\n <\/ul>\n <\/div>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch5r140\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 140<\/span>\n <span class=\"rule-title\">Works Entrusted to PWO or PSU \u2014 Division of Responsibility<\/span>\n <\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83c\udfdb\ufe0f<\/span><span>For works entrusted as per Rule 133(2) or 133(3), the <strong>Administrative Approval and Expenditure Sanction shall be accorded and funds allotted by the concerned Ministry\/Department<\/strong> under these rules and in accordance with DFPR.<\/span><\/li>\n <li><span class=\"bi\">\ud83c\udfd7\ufe0f<\/span><span>The <strong>Public Works Organisation or PSU<\/strong> to which work is allotted shall then <strong>execute the work under the rules and procedures prescribed in that organisation<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccb<\/span><span>A <strong>Memorandum of Understanding (MoU)<\/strong> may be drawn with the Public Works Organisation or PSU for proper execution of work.<\/span><\/li>\n <\/ul>\n <div class=\"box-blue\">\n <div class=\"box-blue-lbl\">\ud83d\udccc Who Does What<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83c\udfdb\ufe0f<\/span><span><strong>Ministry\/Department:<\/strong> Administrative Approval + Expenditure Sanction + Fund Allotment<\/span><\/li>\n <li><span class=\"bi\">\ud83c\udfd7\ufe0f<\/span><span><strong>PWO\/PSU:<\/strong> Actual execution under its own rules + procedures<\/span><\/li>\n <\/ul>\n <\/div>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch5r141\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 141<\/span>\n <span class=\"rule-title\">Review of Projects<\/span>\n <\/div>\n <div class=\"sec-h\">Projects \u2265 \u20b9100 Crore \u2014 Mandatory Review Committee<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83c\udfd7\ufe0f<\/span><span>After a project costing <strong>\u20b9100 crore or above<\/strong> is approved, the Administrative Ministry or Department shall set up a <strong>Review Committee<\/strong> consisting of a representative each from:\n <ul class=\"blist-sub\">\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span><strong>Administrative Ministry<\/strong><\/span><\/li>\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span><strong>Finance (Internal Finance Wing)<\/strong><\/span><\/li>\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span><strong>Executing Agency<\/strong><\/span><\/li>\n <\/ul>\n <\/span><\/li>\n <li><span class=\"bi\">\u2696\ufe0f<\/span><span>The Review Committee shall have the powers to <strong>accept variation within 10%<\/strong> of the approved estimates. <span class=\"tag-red\">\u2757 10% variation limit<\/span><\/span><\/li>\n <\/ul>\n <div class=\"sec-h\">Projects < \u20b9100 Crore \u2014 Ministry's Discretion<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83c\udfdb\ufe0f<\/span><span>For works costing <strong>less than \u20b9100 crores<\/strong>, it shall be at the <strong>discretion of the Administrative Ministry\/Department<\/strong> to set up a suitable mechanism for review and acceptance of variation within 10% of the approved estimates.<\/span><\/li>\n <\/ul>\n <div class=\"box-amber\">\n <div class=\"box-amber-lbl\">\u2b50 Rule 141 \u2014 Key Numbers<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>\u20b9100 crore or above:<\/strong> Review Committee is <strong>mandatory<\/strong> \u2014 3 members (Admin Ministry + IFW + Executing Agency)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>Below \u20b9100 crore:<\/strong> Review mechanism at Ministry's <strong>discretion<\/strong><\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>10%<\/strong> \u2014 Maximum variation that Review Committee can accept within the approved estimate<\/span><\/li>\n <\/ul>\n <\/div>\n <\/div>\n\n <div class=\"box-amber\" style=\"margin-top:36px\">\n <div class=\"box-amber-lbl\">\u2b50 Numbers to Remember \u2014 Chapter 5<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>\u20b960 lakh<\/strong> \u2014 threshold for direct execution of repair works by Ministry (R.133)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>\u20b910 lakh to \u20b960 lakh<\/strong> \u2014 Open tenders required (R.139)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>Below \u20b910 lakh<\/strong> \u2014 Limited tenders (R.139)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>7 pre-conditions<\/strong> before commencing any work (R.136)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>\u20b9100 crore or above<\/strong> \u2014 Review Committee mandatory with 3 members (R.141)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>10%<\/strong> \u2014 variation limit that Review Committee can accept (R.141)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>Schedule of Rates maintained by CPWD<\/strong> \u2014 basis for preparing estimates (R.136)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>Life Cycle Cost<\/strong> \u2014 principle to be considered while designing projects (R.136)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>MoU may be drawn<\/strong> with PWO\/PSU for execution (R.140)<\/span><\/li>\n <\/ul>\n <\/div>\n <\/div>\n\n <div id=\"ch6\" class=\"ch-block\">\n\n <div class=\"ch-banner\">\n <div class=\"ch-num\">Chapter 6<\/div>\n <div class=\"ch-title\">Procurement of Goods and Services<\/div>\n <div class=\"ch-range\">Rules 142 to 172 \u00b7 GeM \u00b7 Tender Methods \u00b7 Bid Security \u00b7 Performance Security \u00b7 Advance Payment<\/div>\n <\/div>\n\n \n <div class=\"idx-outer\">\n <div class=\"idx-lbl\">Rules at a Glance \u2014 Chapter 6<\/div>\n <table class=\"idx-table\">\n <thead><tr><th style=\"width:120px\">Rule No.<\/th><th>Subject<\/th><th>Key Point<\/th><\/tr><\/thead>\n <tbody>\n <tr><td class=\"r-num\">Rule 142<\/td><td class=\"r-title\">Scope<\/td><td class=\"r-key\">General rules for all Ministries\/Depts for procurement of goods for public service<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 143<\/td><td class=\"r-title\">Definition of Goods<\/td><td class=\"r-key\">Wide definition \u2014 articles, material, machinery, software, IP, livestock, spares, vehicles, etc. \u00b7 Includes incidental works and services (transport, insurance, installation, commissioning, training, maintenance) \u00b7 Excludes library books\/publications<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 144<\/td><td class=\"r-title\">Fundamental Principles of Public Buying<\/td><td class=\"r-key\">Efficiency, economy, transparency, fair treatment, competition \u00b7 11 yardsticks including: objective specs \u00b7 no brand names \u00b7 Annual Procurement Plan on website \u00b7 DoE may restrict procurement from certain countries on national security grounds<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 145<\/td><td class=\"r-title\">Authorities Competent to Purchase<\/td><td class=\"r-key\">Authority competent to incur expenditure may sanction purchase as per DFPR<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 146<\/td><td class=\"r-title\">Procurement on Mobilisation<\/td><td class=\"r-key\">Regulated by special rules\/orders issued by Government from time to time<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 147<\/td><td class=\"r-title\">Powers for Procurement<\/td><td class=\"r-key\">Full powers to Ministries\/Depts for goods\/services NOT available on GeM \u00b7 Items available on GeM must be procured mandatorily through GeM (per Rule 149)<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 149<\/td><td class=\"r-title\">Government e-Marketplace (GeM)<\/td><td class=\"r-key\">Mandatory procurement through GeM for all available goods\/services \u00b7 Three tiers: \u2264\u20b950,000 (any seller) \u00b7 \u20b950,000\u2013\u20b910L (lowest price among \u22653 manufacturers) \u00b7 >\u20b910L (online bidding\/reverse auction mandatory) \u00b7 Annual Procurement Plan on GeM portal within 30 days of Budget approval \u00b7 Demand not to be split to avoid higher thresholds<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 150<\/td><td class=\"r-title\">Registration of Suppliers<\/td><td class=\"r-key\">For goods not on GeM \u00b7 Registration period: 1\u20133 years \u00b7 Performance watched continuously \u00b7 Grounds for removal: substandard goods, false declaration, failure to supply on time, not in public interest \u00b7 List exhibited on website<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 151<\/td><td class=\"r-title\">Debarment from Bidding<\/td><td class=\"r-key\">Mandatory debarment: conviction under Prevention of Corruption Act \/ BNS for loss of life or property \u00b7 Period: up to 3 years (DoE list on CPPP) \u00b7 Discretionary: Code of Integrity breach \u2192 up to 2 years (Ministry list on website) \u00b7 Reasonable opportunity to represent before debarment<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 152<\/td><td class=\"r-title\">Indian Agents for Foreign Principals<\/td><td class=\"r-key\">Ministries\/Depts may enlist Indian agents to quote directly on behalf of foreign principals<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 153<\/td><td class=\"r-title\">Reserved Items and Purchase Preference<\/td><td class=\"r-key\">Khadi goods: exclusively from KVIC \u00b7 Handloom textiles: at least 20% mandatory from KVIC\/Handloom Clusters \u00b7 MSME Procurement Policy under MSMED Act 2006 \u00b7 Central Govt may notify mandatory procurement from any category or preference for locally manufactured goods<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 154<\/td><td class=\"r-title\">Purchase Without Quotation<\/td><td class=\"r-key\">\u2264\u20b950,000 (when item not on GeM) \u00b7 Certificate of personal satisfaction by competent authority \u00b7 No quotations or bids required<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 155<\/td><td class=\"r-title\">Purchase by Purchase Committee<\/td><td class=\"r-key\">Above \u20b950,000 and up to \u20b95,00,000 (when not on GeM) \u00b7 3-member Local Purchase Committee \u00b7 Joint certificate of satisfaction by all members \u00b7 Certificate must confirm supplier is not debarred by DoE or Ministry<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 157<\/td><td class=\"r-title\">No Splitting of Demand<\/td><td class=\"r-key\">Demand for goods shall not be divided into small quantities to avoid higher authority sanction or competitive tendering<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 158<\/td><td class=\"r-title\">Purchase by Obtaining Bids \u2014 Five Methods<\/td><td class=\"r-key\">(i) Advertised Tender Enquiry (ii) Limited Tender Enquiry (iii) Two-Stage Bidding (iv) Single Tender Enquiry (v) Electronic Reverse Auction<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 159<\/td><td class=\"r-title\">E-Publishing \u2014 Mandatory<\/td><td class=\"r-key\">Mandatory publication on GeM-CPPP for all Ministries\/Depts\/Autonomous Bodies \u00b7 Exemption: national security \u2014 Secretary + FA concurrence \u00b7 Statistical info on exemptions \u2192 MoF\/DoE quarterly \u00b7 Applies to all forms of tender\/RFP\/EOI\/pre-qualification notices \u00b7 Exempted: R.154 and R.155 purchases<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 160<\/td><td class=\"r-title\">E-Procurement \u2014 Mandatory<\/td><td class=\"r-key\">Mandatory receipt of all bids through e-procurement portals \u00b7 NIC solution available for low-volume depts \u00b7 National security exemption with Secretary approval + FA concurrence \u00b7 Indian Missions Abroad: Competent Authority may exempt<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 161<\/td><td class=\"r-title\">Advertised Tender Enquiry<\/td><td class=\"r-key\">Estimated value \u2265\u20b950 lakhs \u00b7 Published on GeM + GeM-CPPP + own website \u00b7 Complete bidding document on website \u00b7 Minimum 3 weeks for bid submission (4 weeks if foreign bids invited) \u00b7 No GTE for tenders up to \u20b9200 crore (relaxation from Competent Authority for exceptions) \u00b7 No cost for tender documents downloaded from website<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 162<\/td><td class=\"r-title\">Limited Tender Enquiry<\/td><td class=\"r-key\">Estimated value up to \u20b950 lakhs \u00b7 More than 3 supplier firms \u00b7 Published on GeM-CPPP \u00b7 Unsolicited bids not accepted \u00b7 Permitted beyond \u20b950 lakhs if: urgency certified \/ not in public interest to advertise \/ sources of supply definitely known<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 163<\/td><td class=\"r-title\">Two-Bid System (Technical + Financial)<\/td><td class=\"r-key\">For high-value complex plant\/machinery \u00b7 Separate sealed envelopes for technical and financial bids inside outer envelope \u00b7 Technical bids opened first and evaluated \u00b7 Financial bids of only technically accepted offers opened in second stage<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 164<\/td><td class=\"r-title\">Two-Stage Bidding<\/td><td class=\"r-key\">For procurements where detailed specs cannot be formulated without bidder inputs \u00b7 Or rapid technology\/market changes \u00b7 Or R&D contracts \u00b7 Or comprehensive survey needed \u00b7 First stage: technical bids without price; committee evaluates, may hold discussions (equal opportunity to all) \u00b7 Second stage: revised specs \u2192 final bids with prices \u00b7 Bidder may withdraw without penalty if modifications are unacceptable<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 165<\/td><td class=\"r-title\">Late Bids<\/td><td class=\"r-key\">Late bids (received after specified date and time) shall NOT be considered in advertised or limited tender enquiry<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 166<\/td><td class=\"r-title\">Single Tender Enquiry<\/td><td class=\"r-key\">Three circumstances: (i) only one manufacturer known (ii) emergency requiring specific source (iii) standardisation of spares\/machinery \u00b7 Proprietary Article Certificate required for (i) and (iii)<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 167<\/td><td class=\"r-title\">Electronic Reverse Auction<\/td><td class=\"r-key\">Online real-time technique \u00b7 Successively more favourable bids during scheduled period \u00b7 Conditions: detailed description feasible + competitive market + criteria quantifiable in monetary terms<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 168<\/td><td class=\"r-title\">Contents of Bidding Document<\/td><td class=\"r-key\">7 chapters: Instructions to Bidders \u00b7 Conditions of Contract \u00b7 Schedule of Requirements \u00b7 Specifications\/Technical Details \u00b7 Price Schedule \u00b7 Contract Form \u00b7 Other Standard Forms<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 169<\/td><td class=\"r-title\">Maintenance Contract<\/td><td class=\"r-key\">Needed for sophisticated\/costly equipment \u00b7 Maintenance free of charge during warranty period \u00b7 Paid maintenance commences only after warranty period<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 170<\/td><td class=\"r-title\">Bid Security (Earnest Money)<\/td><td class=\"r-key\">2%\u20135% of estimated value \u00b7 Exempted: MSEs (MSME policy) \/ registered suppliers \/ CPO \/ DPIIT-recognised Startups \u00b7 Forms: Insurance Surety Bond \/ A\/c Payee DD \/ FDR \/ Banker's Cheque \/ BG (incl. e-BG) \/ online payment \u00b7 Valid 45 days beyond final bid validity \u00b7 Returned to unsuccessful bidders by 30th day after contract award \u00b7 Two-packet\/two-stage: unsuccessful 1st-stage bidders get BG back within 30 days of 1st-stage result<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 171<\/td><td class=\"r-title\">Performance Security<\/td><td class=\"r-key\">3%\u20135% of contract value (for goods\/consultancy\/non-consultancy services) \u00b7 Valid 60 days beyond completion of all contractual obligations including warranty \u00b7 Bid security refunded on receipt of Performance Security \u00b7 Forms: Insurance Surety Bond \/ A\/c Payee DD \/ FDR \/ BG (incl. e-BG) \/ online payment<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 172(1)<\/td><td class=\"r-title\">Advance Payment to Supplier<\/td><td class=\"r-key\">Ordinarily after services rendered\/supplies made \u00b7 Advance ceilings: 30% (private firms) \u00b7 40% (Central\/State Govt agency or PSU) \u00b7 Maintenance contract: up to 6 months' amount \u00b7 Can be relaxed by Ministry in consultation with FA \u00b7 Bank guarantee\/adequate safeguards mandatory<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 172(2)<\/td><td class=\"r-title\">Part Payment to Suppliers<\/td><td class=\"r-key\">Part payment may be released after dispatch of goods from supplier's premises as per contract terms<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 173<\/td><td class=\"r-title\">Transparency, Competition and Fairness \u2014 22 Measures<\/td><td class=\"r-key\">Bidding doc must be self-contained \u00b7 NIL bid = unresponsive \u00b7 No new condition during evaluation \u00b7 Post-bid negotiation severely discouraged (only with L-1 if unavoidable) \u00b7 Single offer in open\/limited tender = single tender contract \u00b7 >\u20b950L Purchase Committee: no direct reporting between members \u00b7 BEE Star Rating mandatory \u00b7 4 grounds for rejecting all bids \u00b7 Lack of competition not solely by number of bidders<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 174<\/td><td class=\"r-title\">Efficiency, Economy and Accountability<\/td><td class=\"r-key\">Prescribe time frame for each procurement stage \u00b7 Delegate purchasing powers wherever necessary \u00b7 Contract to be placed within original bid validity \u00b7 Extension of bid validity to be discouraged<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 175<\/td><td class=\"r-title\">Code of Integrity \u2014 8 Prohibitions<\/td><td class=\"r-key\">Bribery \u00b7 Misrepresentation \u00b7 Collusion\/bid rigging \u00b7 Improper use of information \u00b7 Conflict transactions \u00b7 Coercion\/threat \u00b7 Obstruction \u00b7 False declaration \u00b7 Disclosure of conflict of interest \u00b7 Disclosure of prior transgressions in last 3 years \u00b7 Reasonable opportunity before action<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 176<\/td><td class=\"r-title\">Buy-Back Offer<\/td><td class=\"r-key\">Old item traded while purchasing new one with competent authority approval \u00b7 Clause in bidding document \u00b7 Option to trade or not trade kept open<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 177<\/td><td class=\"r-title\">Definition \u2014 Consulting Services<\/td><td class=\"r-key\">Non-physical, project-specific, intellectual and procedural processes \u00b7 Outcomes vary from consultant to consultant \u00b7 Does NOT include direct engagement of retired Govt servant \u00b7 Examples: management\/policy\/communications consultants, feasibility studies, project management, finance\/accounting\/taxation, training<\/td><\/tr>\n <tr><td class=\"r-num\">Rules 178\u2013182<\/td><td class=\"r-title\">Consulting Services \u2014 Preliminary Steps<\/td><td class=\"r-key\">R.178: May hire external consultants for specific, time-bound job \u00b7 R.180: Only if Ministry lacks requisite expertise; competent authority approval needed \u00b7 R.181: Prepare scope, objectives, eligibility criteria \u00b7 R.182: Estimate reasonable expenditure from market conditions<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 183<\/td><td class=\"r-title\">Identification of Consultant Sources \u2014 Two Tiers<\/td><td class=\"r-key\">\u2264\u20b950L: Long list from informal enquiries, CII, associations \u00b7 >\u20b950L: Expression of Interest (EOI) published on GeM + GeM-CPPP; adequate time to be allowed<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 184<\/td><td class=\"r-title\">Short-Listing of Consultants<\/td><td class=\"r-key\">Short-listed consultants shall not be less than 3<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 185<\/td><td class=\"r-title\">Terms of Reference (TOR) \u2014 5 Elements<\/td><td class=\"r-key\">(i) Statement of objectives (ii) Outline of tasks (iii) Schedule for completion (iv) Support\/inputs to be provided by Ministry (v) Final outputs required<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 186<\/td><td class=\"r-title\">Request for Proposal (RFP) \u2014 9 Contents<\/td><td class=\"r-key\">Letter of Invitation \u00b7 Information to Consultants \u00b7 TOR \u00b7 Eligibility\/pre-qualification criteria \u00b7 Key positions for CV evaluation \u00b7 Evaluation criteria and selection procedure \u00b7 Standard formats for technical and financial proposals \u00b7 Proposed contract terms \u00b7 Mid-term review procedure<\/td><\/tr>\n <tr><td class=\"r-num\">Rules 187\u2013190<\/td><td class=\"r-title\">Receipt, Opening and Evaluation of Proposals<\/td><td class=\"r-key\">Two-bid system (technical + financial in separate sealed envelopes) \u00b7 Technical proposals opened first \u00b7 Late bids not considered \u00b7 CEC evaluates technical bids with detailed reasons for acceptance\/rejection \u00b7 Financial bids opened only for technically qualified bidders<\/td><\/tr>\n <tr><td class=\"r-num\">Rules 191\u2013194<\/td><td class=\"r-title\">Methods of Consultancy Selection \u2014 3 Methods<\/td><td class=\"r-key\">QCBS: Quality + Cost combined score; technical weight \u226480%; highest combined score wins \u00b7 LCS: Standard\/routine assignments; lowest cost among technically qualified \u00b7 Single Source\/Nomination: 5 circumstances (continuation of previous work, emergency, proprietary, special circumstance, fairness ensured); full justification + competent authority approval<\/td><\/tr>\n <tr><td class=\"r-num\">Rules 195\u2013196<\/td><td class=\"r-title\">Monitoring and Design Competition<\/td><td class=\"r-key\">R.195: Task force approach; continuous monitoring throughout \u00b7 R.196: Design competition (symbols\/logos) \u2014 transparent, fair, wide publicity; published on Ministry website + GeM-CPPP; jury composition may be notified<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 197<\/td><td class=\"r-title\">Definition \u2014 Non-Consulting Services<\/td><td class=\"r-key\">Physical, measurable deliverables\/outcomes; performance standards clearly identifiable \u00b7 Examples: maintenance, vehicle hiring, facilities management, security, photocopier, janitor, drilling, aerial photography, satellite imagery, mapping<\/td><\/tr>\n <tr><td class=\"r-num\">Rules 198\u2013200<\/td><td class=\"r-title\">Non-Consulting Services \u2014 General and Tender Enquiry<\/td><td class=\"r-key\">R.198: Procured in interest of economy and efficiency \u00b7 R.199: List of contractors from Yellow Pages, trade journals, websites, enquiries \u00b7 R.200: Tender enquiry must include 4 elements: work details, facilities\/inputs provided, eligibility criteria, statutory\/contractual obligations<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 201<\/td><td class=\"r-title\">Invitation of Bids \u2014 Non-Consulting Two Tiers<\/td><td class=\"r-key\">\u2264\u20b950L: Limited Tender Enquiry to more than 3 contractors \u00b7 >\u20b950L: Open advertisement on GeM + GeM-CPPP (and own website)<\/td><\/tr>\n <tr><td class=\"r-num\">Rules 202\u2013205<\/td><td class=\"r-title\">Evaluation, Nomination and Monitoring<\/td><td class=\"r-key\">R.202: Late bids not considered \u00b7 R.203: Evaluate, segregate, rank responsive bids \u00b7 R.204: Nomination for non-consulting \u2014 Competent Authority + FA consultation; detailed justification integral part of proposal \u00b7 R.205: Continuous monitoring of contractor performance throughout<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 206<\/td><td class=\"r-title\">Residual Applicability<\/td><td class=\"r-key\">Gaps in Rules 198\u2013205 \u2192 governed by Rules 142\u2013176 (goods rules), NOT consulting rules<\/td><\/tr>\n <\/tbody>\n <\/table>\n <\/div>\n\n \n <div style=\"background:#f0f4ff;border-left:5px solid #1a3a6b;padding:10px 18px;border-radius:0 6px 6px 0;margin:10px 0;font-weight:700;color:#1a3a6b;font-size:14px;letter-spacing:.04em;text-transform:uppercase\">Section I \u2014 Scope, Definitions and Fundamental Principles (Rules 142\u2013144)<\/div>\n\n \n <div class=\"rule-block\" id=\"ch6r142\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 142<\/span><span class=\"rule-title\">Scope of Chapter 6<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccb<\/span><span>This chapter contains the <strong>general rules applicable to all Ministries or Departments<\/strong> regarding procurement of goods required for use in the public service.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>Procuring departments may issue detailed instructions broadly in conformity with the general rules contained in this Chapter.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch6r143\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 143<\/span><span class=\"rule-title\">Definition of Goods<\/span><\/div>\n <div class=\"box-blue\">\n <div class=\"box-blue-lbl\">\ud83d\udccc What \"Goods\" Includes<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udce6<\/span><span><strong>Physical goods:<\/strong> All articles, material, commodity, livestock, furniture, fixtures, raw material, spares, instruments, machinery, equipment, industrial plant, vehicles, aircraft, ships, medicines, railway rolling stock, assemblies, subassemblies, accessories, group of machineries comprising an integrated production process<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcbb<\/span><span><strong>Intangible products:<\/strong> Software, technology transfer, licences, patents or other intellectual properties \u2014 <strong>purchased or otherwise acquired for use of Government<\/strong><\/span><\/li>\n <li><span class=\"bi\">\ud83d\udd27<\/span><span><strong>Incidental works and services:<\/strong> Transportation, insurance, installation, commissioning, training and maintenance \u2014 which are <strong>incidental or consequential to the supply of such goods<\/strong><\/span><\/li>\n <\/ul>\n <\/div>\n <ul class=\"blist\" style=\"margin-top:10px\">\n <li><span class=\"bi\">\u26d4<\/span><span><strong>Excluded:<\/strong> Books, publications, periodicals, etc. for a library.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch6r144\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 144<\/span><span class=\"rule-title\">Fundamental Principles of Public Buying \u2014 Eleven Yardsticks<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83c\udfaf<\/span><span>Every authority delegated with powers to procure goods shall have the responsibility and accountability to bring <strong>efficiency, economy, and transparency<\/strong> in public procurement and for <strong>fair and equitable treatment of suppliers and promotion of competition<\/strong>.<\/span><\/li>\n <\/ul>\n <div class=\"box-amber\">\n <div class=\"box-amber-lbl\">\u2b50 Eleven Yardsticks for Public Procurement<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">(i)<\/span><span>Description of procurement shall be <strong>objective, functional, generic and measurable<\/strong> \u2014 specifying technical, qualitative and performance characteristics. <strong>No particular trade mark, trade name or brand<\/strong> to be indicated.<\/span><\/li>\n <li><span class=\"bi\">(ii)<\/span><span>Specifications shall be clearly spelt out to <strong>meet basic needs without superfluous or non-essential features<\/strong> (which may cause unwarranted expenditure).<\/span><\/li>\n <li><span class=\"bi\">(iii)<\/span><span>Technical specifications shall be based on <strong>national technical regulations or recognised national standards or building codes<\/strong>, or in their absence, relevant <strong>international standards<\/strong>. For GoI-funded projects abroad, may be based on host country standards.<\/span><\/li>\n <li><span class=\"bi\">(iv)<\/span><span>Avoid purchasing quantities <strong>in excess of requirement<\/strong> to avoid inventory carrying costs.<\/span><\/li>\n <li><span class=\"bi\">(v)<\/span><span>Offers to be invited following a <strong>fair, transparent and reasonable procedure<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">(vi)<\/span><span>Procuring authority must be satisfied that the selected offer <strong>adequately meets the requirement in all respects<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">(vii)<\/span><span>Procuring authority must satisfy itself that the price of the selected offer is <strong>reasonable and consistent with the quality required<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">(viii)<\/span><span>At each stage of procurement, the procuring authority must <strong>place on record in precise terms the considerations<\/strong> which weighed while taking the procurement decision.<\/span><\/li>\n <li><span class=\"bi\">(ix)<\/span><span>A <strong>complete schedule of procurement cycle<\/strong> from date of issuing the tender to date of issuing the contract should be published when the tender is issued.<\/span><\/li>\n <li><span class=\"bi\">(x)<\/span><span>All Ministries\/Departments shall prepare an <strong>Annual Procurement Plan before the commencement of the year<\/strong> and the same shall also be placed on their website.<\/span><\/li>\n <li><span class=\"bi\">(xi)<\/span><span>DoE may, <strong>by order in writing, impose restrictions<\/strong> (including prior registration and\/or screening) on procurement from bidders from, or having commercial arrangements with, a country or countries \u2014 on grounds of <strong>defence of India or national security<\/strong>. <strong>No procurement shall be made in violation of such restrictions.<\/strong> <span class=\"tag-red\">\u2757 National Security Restriction<\/span><\/span><\/li>\n <\/ul>\n <\/div>\n <\/div>\n\n \n <div style=\"background:#e8f0ff;border-left:5px solid #1a3a6b;padding:10px 18px;border-radius:0 6px 6px 0;margin:44px 0 10px;font-weight:700;color:#1a3a6b;font-size:14px;letter-spacing:.04em;text-transform:uppercase\">Section II \u2014 Government e-Marketplace and Authorities (Rules 145\u2013153)<\/div>\n\n \n <div class=\"rule-block\" id=\"ch6r145\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 145<\/span><span class=\"rule-title\">Authorities Competent to Purchase Goods<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udc64<\/span><span>An authority which is <strong>competent to incur expenditure<\/strong> may sanction the purchase of goods required for use in public service in accordance with the <strong>Delegation of Financial Powers Rules (DFPR)<\/strong>, following the general procedure in the rules below.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch6r146\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 146<\/span><span class=\"rule-title\">Procurement of Goods Required on Mobilisation<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83e\ude96<\/span><span>Procurement of goods required <strong>on mobilisation and\/or during the continuance of Military operations<\/strong> shall be regulated by any <strong>special rules and orders issued by the Government<\/strong> on this behalf from time to time.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch6r147\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 147<\/span><span class=\"rule-title\">Powers for Procurement of Goods<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>Ministries or Departments have been delegated <strong>full powers to make their own arrangements<\/strong> for procurement of goods and services that are <strong>not available on GeM<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\uded2<\/span><span><strong>Common use Goods and Services available on GeM<\/strong> are required to be procured <strong>mandatorily through GeM<\/strong> as per Rule 149.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch6r149\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 149<\/span><span class=\"rule-title\">Government e-Marketplace (GeM) \u2014 Three Procurement Tiers<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\uded2<\/span><span>Government of India has established <strong>GeM (Government e-Marketplace)<\/strong> for common use Goods and Services. Procurement of Goods and Services by Ministries or Departments is <strong>mandatory<\/strong> for Goods or Services available on GeM.<\/span><\/li>\n <li><span class=\"bi\">\u2705<\/span><span>Credentials of suppliers certified by <strong>GeM SPV<\/strong>. Procuring authorities certify reasonableness of rates.<\/span><\/li>\n <\/ul>\n <div class=\"box-blue\">\n <div class=\"box-blue-lbl\">\ud83d\udccc Three-Tier GeM Procurement Structure<\/div>\n <table style=\"width:100%;border-collapse:collapse;font-size:14px;margin-top:6px\">\n <thead>\n <tr style=\"background:#1a3a6b;color:#fff\">\n <th style=\"padding:8px 12px\">Tier<\/th>\n <th style=\"padding:8px 12px\">Value<\/th>\n <th style=\"padding:8px 12px\">Procedure<\/th>\n <\/tr>\n <\/thead>\n <tbody>\n <tr style=\"background:#f0f6ff;border-bottom:1px solid #d0dcef\">\n <td style=\"padding:8px 12px\"><strong>(i)<\/strong><\/td>\n <td style=\"padding:8px 12px\"><strong>Up to \u20b950,000<\/strong><\/td>\n <td style=\"padding:8px 12px\">Any available supplier on GeM meeting requisite quality, specification and delivery period. (Automobiles: no ceiling limit)<\/td>\n <\/tr>\n <tr style=\"background:#e8f0ff;border-bottom:1px solid #d0dcef\">\n <td style=\"padding:8px 12px\"><strong>(ii)<\/strong><\/td>\n <td style=\"padding:8px 12px\"><strong>Above \u20b950,000 up to \u20b910,00,000<\/strong><\/td>\n <td style=\"padding:8px 12px\">GeM Seller having <strong>lowest price among available sellers of at least 3 different manufacturers<\/strong> on GeM, meeting requisite quality, specification and delivery period. Online bidding\/reverse auction tools may be used even for procurements less than \u20b910L<\/td>\n <\/tr>\n <tr style=\"background:#f0f6ff\">\n <td style=\"padding:8px 12px\"><strong>(iii)<\/strong><\/td>\n <td style=\"padding:8px 12px\"><strong>Above \u20b910,00,000<\/strong><\/td>\n <td style=\"padding:8px 12px\">Supplier having lowest price after <strong>mandatorily obtaining bids using online bidding or reverse auction<\/strong> on GeM<\/td>\n <\/tr>\n <\/tbody>\n <\/table>\n <\/div>\n <ul class=\"blist\" style=\"margin-top:10px\">\n <li><span class=\"bi\">\ud83d\udcc5<\/span><span><strong>Annual Procurement Plan<\/strong> of goods and services shall be projected on GeM portal <strong>within 30 days of Budget approval<\/strong>. <span class=\"tag-red\">\u2757 30 days<\/span><\/span><\/li>\n <li><span class=\"bi\">\u26d4<\/span><span>A demand for goods shall <strong>not be divided into small quantities<\/strong> to make piecemeal purchases to avoid L-1 buying\/bidding\/reverse auction on GeM or to avoid the necessity of obtaining the sanction of higher authorities.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcca<\/span><span>Government Buyers may ascertain reasonableness of prices using <strong>Business Analytics (BA) tools on GeM<\/strong> including Last Purchase Price on GeM and Department's own Last Purchase Price.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccb<\/span><span>The monetary ceilings under (i)\u2013(iii) above apply <strong>only for GeM purchases<\/strong>. For purchases outside GeM, relevant GFR rules shall apply.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch6r150\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 150<\/span><span class=\"rule-title\">Registration of Suppliers \u2014 For Goods Not on GeM<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccb<\/span><span><strong>Sub-rule (i):<\/strong> For goods and services not available on GeM, Head of Ministry\/Department may register suppliers periodically following a <strong>fair, transparent and reasonable procedure with due publicity<\/strong>. Such registered suppliers should be boarded on GeM as and when the item gets listed.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udd0d<\/span><span><strong>Sub-rule (ii):<\/strong> Before registration, <strong>credentials, manufacturing capability, quality control systems, past performance, after-sales service and financial background<\/strong> shall be carefully verified.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcc5<\/span><span><strong>Sub-rule (iii):<\/strong> Registered for a <strong>fixed period of 1 to 3 years<\/strong> depending on nature of goods. At end of period, willing suppliers apply afresh for renewal. New suppliers may be considered at any time if they fulfil all conditions. <span class=\"tag-red\">\u2757 1\u20133 years<\/span><\/span><\/li>\n <li><span class=\"bi\">\ud83d\udc41\ufe0f<\/span><span><strong>Sub-rule (iv):<\/strong> Performance and conduct of every registered supplier shall be watched. Grounds for removal from approved list: failure to supply on time \u00b7 supply of substandard goods \u00b7 false declaration to any Government agency \u00b7 any ground not in public interest.<\/span><\/li>\n <li><span class=\"bi\">\ud83c\udf10<\/span><span><strong>Sub-rule (v):<\/strong> List of registered suppliers shall be <strong>exhibited on the website of the Procuring Entity \/ their e-Procurement portals<\/strong>.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch6r151\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 151<\/span><span class=\"rule-title\">Debarment from Bidding<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\u26d4<\/span><span><strong>Mandatory debarment [Sub-rule (i)]:<\/strong> A bidder shall be debarred if convicted of an offence under:\n <ul class=\"blist-sub\">\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span>The <strong>Prevention of Corruption Act, 1988<\/strong>; or<\/span><\/li>\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span>The <strong>Bharatiya Nyaya Sanhita or any other law<\/strong> for causing any loss of life or property or threat to public health as part of execution of a public procurement contract<\/span><\/li>\n <\/ul>\n <\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcc5<\/span><span><strong>Sub-rule (ii):<\/strong> A mandatorily debarred bidder or any <strong>successor<\/strong> shall not be eligible for any procuring entity for a period <strong>not exceeding three years<\/strong> from the date of debarment. <strong>DoE shall maintain the list<\/strong>, displayed on the <strong>Central Public Procurement Portal<\/strong>. <span class=\"tag-red\">\u2757 Up to 3 years \u2014 DoE\/CPPP<\/span><\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcc5<\/span><span><strong>Sub-rule (iii) \u2014 Discretionary debarment:<\/strong> A procuring entity may debar a bidder (or successors) from its own procurement processes for a period <strong>not exceeding two years<\/strong> if it determines the bidder has <strong>breached the code of integrity<\/strong>. <strong>Ministry\/Department shall maintain the list<\/strong>, displayed on <strong>their website<\/strong>. <span class=\"tag-amber\">\u26a0\ufe0f Up to 2 years \u2014 Ministry\/website<\/span><\/span><\/li>\n <li><span class=\"bi\">\u2696\ufe0f<\/span><span><strong>Sub-rule (iv):<\/strong> A bidder shall <strong>not be debarred<\/strong> unless given a <strong>reasonable opportunity to represent<\/strong> against such debarment.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch6r152\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 152<\/span><span class=\"rule-title\">Enlistment of Indian Agents for Foreign Principals<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83c\udf10<\/span><span>Ministries\/Departments, if they so require, may <strong>enlist Indian agents who desire to quote directly on behalf of their foreign principals<\/strong>.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch6r153\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 153<\/span><span class=\"rule-title\">Reserved Items and Purchase\/Price Preference Policy<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83e\uddf6<\/span><span><strong>Sub-rule (i) \u2014 Khadi and Handloom:<\/strong> All items of <strong>hand spun and hand-woven textiles (khadi goods)<\/strong> are reserved for exclusive purchase from <strong>KVIC<\/strong>. Of all textiles, at least <strong>20% mandatory procurement from handloom origin<\/strong> from KVIC and\/or Handloom Clusters (Co-operative Societies, SHG Federations, JLG, Producer Companies, Corporations, Weavers with Pehchan Cards). <span class=\"tag-red\">\u2757 20% handloom<\/span><\/span><\/li>\n <li><span class=\"bi\">\ud83c\udfed<\/span><span><strong>Sub-rule (ii) \u2014 MSME Policy:<\/strong> Ministry of MSME has notified procurement policy under <strong>Section 11 of the MSMED Act, 2006<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccb<\/span><span><strong>Sub-rule (iii) \u2014 Central Govt discretion:<\/strong> Central Government may, by notification, provide for <strong>mandatory procurement from any category of bidders<\/strong> or provide for <strong>preference to bidders<\/strong> on the grounds of promotion of locally manufactured goods or locally provided services.<\/span><\/li>\n <\/ul>\n <\/div>\n\n \n <div style=\"background:#f0faf5;border-left:5px solid #2aab6e;padding:10px 18px;border-radius:0 6px 6px 0;margin:44px 0 10px;font-weight:700;color:#1a6b5a;font-size:14px;letter-spacing:.04em;text-transform:uppercase\">Section III \u2014 Methods of Purchase (Rules 154\u2013172)<\/div>\n\n \n <div class=\"rule-block\" id=\"ch6r154\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 154<\/span><span class=\"rule-title\">Purchase of Goods Without Quotation \u2014 Up to \u20b950,000<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>When a certain item is <strong>not available on GeM portal<\/strong>, purchase of goods up to the value of <strong>\u20b950,000 on each occasion<\/strong> may be made <strong>without inviting quotations or bids<\/strong>, on the basis of a certificate to be recorded by the competent authority. <span class=\"tag-red\">\u2757 \u2264\u20b950,000<\/span><\/span><\/li>\n <\/ul>\n <div class=\"box-green\">\n <div class=\"box-green-lbl\">\ud83d\udccb Certificate Format (Rule 154)<\/div>\n <p style=\"font-style:italic;color:#1a3a00;margin:6px 0\">\"I am personally satisfied that these goods purchased are of the requisite quality and specification and have been purchased from a reliable supplier at a reasonable price.\"<\/p>\n <\/div>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch6r155\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 155<\/span><span class=\"rule-title\">Purchase of Goods by Purchase Committee \u2014 Above \u20b950,000 to \u20b95,00,000<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>When a certain item is <strong>not available on GeM portal<\/strong>, purchase of goods costing <strong>above \u20b950,000 and up to \u20b95,00,000 on each occasion<\/strong> may be made on the recommendations of a duly constituted <strong>Local Purchase Committee of 3 members<\/strong> at an appropriate level as decided by the Head of the Department. <span class=\"tag-red\">\u2757 \u20b950,000\u2013\u20b95,00,000 \u00b7 3 members<\/span><\/span><\/li>\n <li><span class=\"bi\">\ud83d\udd0d<\/span><span>The committee will <strong>survey the market<\/strong> to ascertain reasonableness of rate, quality and specifications and identify the appropriate supplier.<\/span><\/li>\n <\/ul>\n <div class=\"box-green\">\n <div class=\"box-green-lbl\">\ud83d\udccb Joint Certificate Format (Rule 155)<\/div>\n <p style=\"font-style:italic;color:#1a3a00;margin:6px 0\">\"Certified that we, members of the purchase committee are jointly and individually satisfied that the goods recommended for purchase are of the requisite specification and quality, priced at the prevailing market rate and the supplier recommended is reliable and competent to supply the goods in question, and it is not debarred by Department of Expenditure or Ministry\/Department concerned.\"<\/p>\n <\/div>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch6r157\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 157<\/span><span class=\"rule-title\">No Splitting of Demand<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\u26d4<\/span><span>A demand for goods shall <strong>not be divided into small quantities<\/strong> to make piecemeal purchases to avoid the necessity of obtaining the <strong>sanction of higher authority<\/strong> required with reference to the estimated value of the <strong>total demand<\/strong>.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch6r158\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 158<\/span><span class=\"rule-title\">Purchase of Goods by Obtaining Bids \u2014 Five Methods<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>Except in cases covered under Rules 154 and 155, Ministries or Departments shall procure goods by following the standard method of obtaining bids in:<\/span><\/li>\n <\/ul>\n <div class=\"box-blue\">\n <div class=\"box-blue-lbl\">\ud83d\udccc Five Standard Methods of Procurement (Rule 158)<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">1\ufe0f\u20e3<\/span><span><strong>Advertised Tender Enquiry<\/strong> \u2014 open to all (Rule 161)<\/span><\/li>\n <li><span class=\"bi\">2\ufe0f\u20e3<\/span><span><strong>Limited Tender Enquiry<\/strong> \u2014 to registered\/known suppliers (Rule 162)<\/span><\/li>\n <li><span class=\"bi\">3\ufe0f\u20e3<\/span><span><strong>Two-Stage Bidding<\/strong> \u2014 technical bids first, financial bids later (Rule 164)<\/span><\/li>\n <li><span class=\"bi\">4\ufe0f\u20e3<\/span><span><strong>Single Tender Enquiry<\/strong> \u2014 from a single source (Rule 166)<\/span><\/li>\n <li><span class=\"bi\">5\ufe0f\u20e3<\/span><span><strong>Electronic Reverse Auctions<\/strong> \u2014 online real-time bidding (Rule 167)<\/span><\/li>\n <\/ul>\n <\/div>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch6r159\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 159<\/span><span class=\"rule-title\">E-Publishing \u2014 Mandatory on GeM-CPPP<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udcbb<\/span><span><strong>Sub-rule (i):<\/strong> It is <strong>mandatory<\/strong> for all Ministries\/Departments, their attached and subordinate offices and Autonomous\/Statutory Bodies to <strong>publish their tender enquiries, corrigenda thereon and details of bid awards on GeM-Central Public Procurement Portal (GeM-CPPP)<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udd12<\/span><span><strong>Sub-rule (ii) \u2014 Exemption (National Security):<\/strong> Individual cases requiring confidentiality for reasons of <strong>national security<\/strong> may be exempted. Decision to exempt requires approval of <strong>Secretary of the Ministry\/Department with FA concurrence<\/strong> (for Autonomous\/Statutory Bodies: Head of Body + Head of Finance). Statistical information on exemptions (number of cases and value) shall be intimated to <strong>MoF\/DoE on a Quarterly basis<\/strong>. <span class=\"tag-red\">\u2757 Quarterly to DoE<\/span><\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccb<\/span><span><strong>Sub-rule (iii):<\/strong> Applies to all forms: tender enquiries, RFPs, Requests for EOIs, Notice for Pre-Qualification\/Registration, or any other notice inviting bids \u2014 whether advertised, limited or single party.<\/span><\/li>\n <li><span class=\"bi\">\u2705<\/span><span><strong>Sub-rule (v) \u2014 Exempted:<\/strong> Procurements under Rule 154 (without quotation) and Rule 155 (purchase committee) are <strong>not required to comply<\/strong> with e-publishing.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch6r160\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 160<\/span><span class=\"rule-title\">E-Procurement \u2014 Mandatory Receipt of Bids<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udcbb<\/span><span><strong>Sub-rule (i):<\/strong> It is <strong>mandatory<\/strong> for Ministries\/Departments to <strong>receive all bids through e-procurement portals<\/strong> in respect of all procurements.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>Sub-rule (ii):<\/strong> Low-volume procurement Ministries or those carrying out procurements only for day-to-day office running may use the <strong>e-procurement solution developed by NIC<\/strong>. Others may use NIC or engage any other service provider following due process.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udd12<\/span><span><strong>Sub-rule (iv) \u2014 Exemption:<\/strong> Where national security and strategic considerations demand confidentiality, the Ministry\/Department may exempt after seeking <strong>approval of the concerned Secretary with FA concurrence<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83c\udf0d<\/span><span><strong>Sub-rule (v):<\/strong> For <strong>tenders floated by Indian Missions Abroad<\/strong>, the Competent Authority to decide the tender may exempt from e-procurement.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch6r161\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 161<\/span><span class=\"rule-title\">Advertised Tender Enquiry \u2014 Estimated Value \u2265 \u20b950 Lakhs<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udce2<\/span><span><strong>Sub-rule (i):<\/strong> Invitation to tenders by advertisement shall be used for procurement of goods of <strong>estimated value of \u20b950 lakhs and above<\/strong>. Advertisement to be given on <strong>GeM as well as GeM-CPPP<\/strong>. Own website must also publish advertised tender enquiries. <span class=\"tag-red\">\u2757 \u2265\u20b950 lakhs<\/span><\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcc4<\/span><span><strong>Sub-rules (ii) & (iii):<\/strong> Complete bidding document to be posted on the organisation's website and on GeM-CPPP. Advertisement must give the complete web address for downloading bidding documents.<\/span><\/li>\n <li><span class=\"bi\">\ud83c\udf10<\/span><span><strong>Sub-rule (iv) \u2014 Global Tender Enquiry (GTE):<\/strong>\n <ul class=\"blist-sub\">\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span><strong>(a)<\/strong> Where goods of required quality may not be available in India, Ministry may send copies of tender notice to Indian Embassies abroad and Foreign Embassies in India. In such cases, e-procurement as per Rule 160 may not be insisted.<\/span><\/li>\n <li><span class=\"bsi\">\u26d4<\/span><span><strong>(b) No GTE<\/strong> shall be invited for tenders <strong>up to \u20b9200 crore<\/strong> (or such limit as prescribed by DoE). For tenders below such limit, GTE in exceptional cases requires detailed justification and <strong>prior approval for relaxation from the Competent Authority specified by DoE<\/strong>. <span class=\"tag-red\">\u2757 \u20b9200 crore GTE threshold<\/span><\/span><\/li>\n <\/ul>\n <\/span><\/li>\n <li><span class=\"bi\">\ud83c\udd93<\/span><span><strong>Sub-rule (v):<\/strong> <strong>No cost<\/strong> may be charged for tender documents downloaded by bidders (to promote wider participation).<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcc5<\/span><span><strong>Sub-rule (vi) \u2014 Minimum bid submission time:<\/strong> Ordinarily <strong>at least 3 weeks<\/strong> from date of publication of tender notice or availability of bidding document for sale (whichever is later). Where bids also invited from abroad: <strong>minimum 4 weeks<\/strong> for both domestic and foreign bidders. <span class=\"tag-red\">\u2757 3 weeks \/ 4 weeks (if abroad)<\/span><\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch6r162\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 162<\/span><span class=\"rule-title\">Limited Tender Enquiry \u2014 Estimated Value up to \u20b950 Lakhs<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccb<\/span><span><strong>Sub-rule (i):<\/strong> This method may be adopted when estimated value of goods to be procured is <strong>up to \u20b950 lakhs<\/strong>. Bidding documents to be sent directly by speed post\/registered post\/courier\/e-mail to firms on the <strong>list of registered suppliers<\/strong>. <strong>Number of supplier firms must be more than 3<\/strong>. Also published on GeM and GeM-CPPP. <span class=\"tag-red\">\u2757 \u2264\u20b950 lakhs \u00b7 >3 firms<\/span><\/span><\/li>\n <li><span class=\"bi\">\u26d4<\/span><span><strong>Sub-rule (ii):<\/strong> <strong>Unsolicited bids shall not be accepted<\/strong>. However, Ministries\/Departments should evolve a system by which interested firms can register and bid in the next round of tendering.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>Sub-rule (iii) \u2014 LTE permitted even above \u20b950 lakhs<\/strong> in three circumstances:\n <ul class=\"blist-sub\">\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span><strong>(a) Urgency:<\/strong> Competent authority certifies demand is urgent; additional expenditure justified; nature of urgency and reasons why procurement could not be anticipated placed on record<\/span><\/li>\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span><strong>(b) Public interest:<\/strong> Sufficient reasons, recorded in writing by competent authority, that it will not be in public interest to procure through advertised tender<\/span><\/li>\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span><strong>(c) Known sources:<\/strong> Sources of supply are definitely known and possibility of fresh sources beyond those being tapped is remote<\/span><\/li>\n <\/ul>\n <\/span><\/li>\n <li><span class=\"bi\">\u23f1\ufe0f<\/span><span><strong>Sub-rule (iv):<\/strong> Sufficient time shall be allowed for submission of bids in LTE cases.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch6r163\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 163<\/span><span class=\"rule-title\">Two-Bid System \u2014 Simultaneous Receipt of Separate Technical and Financial Bids<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udce6<\/span><span>For purchasing <strong>high-value plant, machinery etc. of a complex and technical nature<\/strong>, bids may be obtained in two parts:\n <ul class=\"blist-sub\">\n <li><span class=\"bsi\">1\ufe0f\u20e3<\/span><span><strong>Technical bid<\/strong> \u2014 all technical details along with commercial terms and conditions<\/span><\/li>\n <li><span class=\"bsi\">2\ufe0f\u20e3<\/span><span><strong>Financial bid<\/strong> \u2014 item-wise prices for the items mentioned in the technical bid<\/span><\/li>\n <\/ul>\n <\/span><\/li>\n <li><span class=\"bi\">\u2709\ufe0f<\/span><span>Both sealed in <strong>separate covers<\/strong> duly super-scribed, both placed in a <strong>bigger sealed outer cover<\/strong>, also duly super-scribed.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccb<\/span><span><strong>Process:<\/strong> Technical bids opened first \u2192 evaluated by a competent committee or authority \u2192 financial bids of <strong>only technically acceptable offers<\/strong> are opened at the second stage after intimating them the date and time of financial bid opening \u2192 further evaluation and ranking \u2192 contract awarded.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch6r164\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 164<\/span><span class=\"rule-title\">Two-Stage Bidding<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>Ministry\/Department may use two-stage bidding if any of the following conditions apply:\n <ul class=\"blist-sub\">\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span><strong>(a)<\/strong> Not feasible to formulate detailed specifications without receiving <strong>technical inputs from bidders<\/strong><\/span><\/li>\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span><strong>(b)<\/strong> Subject matter is subject to <strong>rapid technological advances or market fluctuations<\/strong><\/span><\/li>\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span><strong>(c)<\/strong> Contract is for <strong>research, experiment, study or development<\/strong> (except where it includes production of items in quantities sufficient to establish commercial viability or recover R&D costs)<\/span><\/li>\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span><strong>(d)<\/strong> Bidder expected to carry out a <strong>detailed survey\/investigation and comprehensive risk, cost and obligation assessment<\/strong><\/span><\/li>\n <\/ul>\n <\/span><\/li>\n <\/ul>\n <div class=\"box-blue\">\n <div class=\"box-blue-lbl\">\ud83d\udccc Two-Stage Bidding Procedure<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">1\ufe0f\u20e3<\/span><span><strong>First Stage:<\/strong> Ministry\/Department invites bids through advertised tender with technical aspects and contractual terms \u2014 <strong>without bid price<\/strong><\/span><\/li>\n <li><span class=\"bi\">2\ufe0f\u20e3<\/span><span>All eligible first-stage bids evaluated through a <strong>committee<\/strong>. Committee may hold discussions with bidders \u2014 <strong>equal opportunity to all<\/strong><\/span><\/li>\n <li><span class=\"bi\">3\ufe0f\u20e3<\/span><span>Procuring entity may <strong>add, amend or omit any specification or evaluation criterion<\/strong>, but shall not modify the <strong>fundamental nature of the procurement<\/strong><\/span><\/li>\n <li><span class=\"bi\">4\ufe0f\u20e3<\/span><span><strong>Second Stage:<\/strong> Bids invited from all bidders whose first-stage bids were not rejected \u2014 to present <strong>final bids with prices<\/strong> in response to a <strong>revised set of terms and conditions<\/strong><\/span><\/li>\n <li><span class=\"bi\">5\ufe0f\u20e3<\/span><span>Any bidder who cannot supply due to modifications in specifications may <strong>withdraw from bidding proceedings without forfeiting any bid security and without being penalised<\/strong>, by declaring intention to withdraw with adequate justification<\/span><\/li>\n <\/ul>\n <\/div>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch6r165\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 165<\/span><span class=\"rule-title\">Late Bids \u2014 Not to Be Considered<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\u26d4<\/span><span>In the case of advertised tender enquiry or limited tender enquiry, <strong>late bids<\/strong> (i.e., bids received after the specified date and time for receipt of bids) <strong>should not be considered<\/strong>.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch6r166\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 166<\/span><span class=\"rule-title\">Single Tender Enquiry \u2014 Three Circumstances<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>Procurement from a <strong>single source<\/strong> may be resorted to in the following circumstances:\n <ul class=\"blist-sub\">\n <li><span class=\"bsi\">1\ufe0f\u20e3<\/span><span><strong>(i)<\/strong> It is in the knowledge of the user department that <strong>only a particular firm is the manufacturer<\/strong> of the required goods<\/span><\/li>\n <li><span class=\"bsi\">2\ufe0f\u20e3<\/span><span><strong>(ii)<\/strong> In a case of <strong>emergency<\/strong>, the required goods are necessarily to be purchased from a particular source \u2014 reason to be <strong>recorded<\/strong> and <strong>approval of competent authority<\/strong> obtained<\/span><\/li>\n <li><span class=\"bsi\">3\ufe0f\u20e3<\/span><span><strong>(iii)<\/strong> For <strong>standardisation of machinery or spare parts<\/strong> to be compatible to existing sets of equipment \u2014 on the advice of a <strong>competent technical expert<\/strong> and approved by the <strong>competent authority<\/strong><\/span><\/li>\n <\/ul>\n <\/span><\/li>\n <\/ul>\n <div class=\"box-amber\">\n <div class=\"box-amber-lbl\">\u2b50 Proprietary Article Certificate \u2014 Required for Circumstances (i) and (iii)<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccb<\/span><span>(i) The indented goods are manufactured by M\/s \u2026\u2026\u2026\u2026\u2026<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccb<\/span><span>(ii) No other make or model is acceptable for the following reasons: \u2026\u2026\u2026\u2026\u2026<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccb<\/span><span>(iii) Concurrence of finance wing to the proposal vide: \u2026\u2026\u2026\u2026\u2026<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccb<\/span><span>(iv) Approval of the competent authority vide: (Signature with date and designation of the indenting officer)<\/span><\/li>\n <\/ul>\n <\/div>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch6r167\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 167<\/span><span class=\"rule-title\">Electronic Reverse Auction<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udcbb<\/span><span><strong>Sub-rule (i):<\/strong> Electronic Reverse Auction means an <strong>online real-time purchasing technique<\/strong> where bidders present <strong>successively more favourable bids<\/strong> during a scheduled period of time, with automatic evaluation.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>Sub-rule (ii) \u2014 Conditions:<\/strong> A procuring entity may use electronic reverse auction if:\n <ul class=\"blist-sub\">\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span><strong>(a)<\/strong> It is feasible to formulate a <strong>detailed description<\/strong> of the subject matter<\/span><\/li>\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span><strong>(b)<\/strong> There is a <strong>competitive market<\/strong> of qualified bidders anticipated to participate \u2014 to ensure effective competition<\/span><\/li>\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span><strong>(c)<\/strong> Criteria for determining the successful bid are <strong>quantifiable and can be expressed in monetary terms<\/strong><\/span><\/li>\n <\/ul>\n <\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccb<\/span><span><strong>Sub-rule (iii) \u2014 Procedure:<\/strong> Solicit bids through an invitation published\/communicated as per e-procurement provisions. The invitation shall include details relating to access and registration for the auction, opening and closing of the auction, and norms for conduct of the auction.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch6r168\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 168<\/span><span class=\"rule-title\">Contents of Bidding Document \u2014 Seven Chapters<\/span><\/div>\n <div class=\"box-blue\">\n <div class=\"box-blue-lbl\">\ud83d\udccc Standard Bidding Document \u2014 Seven Chapters<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">Ch.1<\/span><span><strong>Instructions to Bidders<\/strong><\/span><\/li>\n <li><span class=\"bi\">Ch.2<\/span><span><strong>Conditions of Contract<\/strong><\/span><\/li>\n <li><span class=\"bi\">Ch.3<\/span><span><strong>Schedule of Requirements<\/strong><\/span><\/li>\n <li><span class=\"bi\">Ch.4<\/span><span><strong>Specifications and Allied Technical Details<\/strong><\/span><\/li>\n <li><span class=\"bi\">Ch.5<\/span><span><strong>Price Schedule<\/strong> (to be utilised by bidders for quoting their prices)<\/span><\/li>\n <li><span class=\"bi\">Ch.6<\/span><span><strong>Contract Form<\/strong><\/span><\/li>\n <li><span class=\"bi\">Ch.7<\/span><span><strong>Other Standard Forms<\/strong>, if any, to be utilised by the purchaser and the bidders<\/span><\/li>\n <\/ul>\n <\/div>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch6r169\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 169<\/span><span class=\"rule-title\">Maintenance Contract<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udd27<\/span><span>Depending on cost and nature of goods, it may be necessary to enter into <strong>maintenance contract(s) of suitable period<\/strong>, either with the supplier of the goods or with any other competent firm.<\/span><\/li>\n <li><span class=\"bi\">\u26a0\ufe0f<\/span><span>Especially needed for <strong>sophisticated and costly equipment and machinery<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcc5<\/span><span>Equipment or machinery is maintained <strong>free of charge by the supplier during its warranty period<\/strong> or such other extended periods as the contract terms may provide. <strong>Paid maintenance shall commence only thereafter<\/strong>.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch6r170\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 170<\/span><span class=\"rule-title\">Bid Security (Earnest Money)<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udd10<\/span><span><strong>Purpose:<\/strong> To safeguard against a bidder's withdrawing or altering its bid during the bid validity period in the case of advertised or limited tender enquiry.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcb0<\/span><span><strong>Amount:<\/strong> Ordinarily <strong>2% to 5%<\/strong> of the estimated value of goods to be procured. Amount to be determined and indicated in bidding documents. <span class=\"tag-red\">\u2757 2%\u20135%<\/span><\/span><\/li>\n <li><span class=\"bi\">\u2705<\/span><span><strong>Exempted from bid security:<\/strong> MSEs (as defined in MSME Procurement Policy) \u00b7 Suppliers registered with Central Purchase Organisation or concerned Ministry\/Department \u00b7 <strong>Startups recognised by DPIIT<\/strong><\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccb<\/span><span><strong>Acceptable forms:<\/strong> Insurance Surety Bonds \u00b7 Account Payee Demand Draft \u00b7 Fixed Deposit Receipt \u00b7 Banker's Cheque \u00b7 Bank Guarantee (including e-Bank Guarantee) from any Commercial Bank \u00b7 Online payment in acceptable form<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcc5<\/span><span>Bid security to remain valid for a period of <strong>45 days beyond the final bid validity period<\/strong>. <span class=\"tag-red\">\u2757 45 days beyond bid validity<\/span><\/span><\/li>\n <li><span class=\"bi\">\ud83d\udd04<\/span><span><strong>Return of bid security:<\/strong> Unsuccessful bidders \u2014 returned at the earliest after expiry of final bid validity and <strong>latest on or before the 30th day after the award of the contract<\/strong>. <span class=\"tag-red\">\u2757 30th day after award<\/span><\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>Two-packet\/two-stage bidding:<\/strong> Bid securities of unsuccessful bidders at the <strong>first stage (technical evaluation)<\/strong> shall be returned <strong>within 30 days of declaration of first-stage result<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccb<\/span><span><strong>Alternative \u2014 Bid Securing Declaration:<\/strong> In place of bid security, Ministries\/Departments may require bidders to sign a <strong>Bid Securing Declaration<\/strong> \u2014 accepting that if they withdraw\/modify their bid during validity, or fail to sign the contract or submit performance security before the deadline, they will be <strong>suspended for the specified period from being eligible to submit bids<\/strong> for contracts with that entity.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch6r171\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 171<\/span><span class=\"rule-title\">Performance Security<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udd10<\/span><span><strong>Purpose:<\/strong> To ensure due performance of the contract. Obtained from the <strong>successful bidder awarded the contract<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcb0<\/span><span><strong>Amount:<\/strong> For procurement of <strong>Goods\/Consultancy Services\/Non-Consultancy Services<\/strong>: <strong>3% to 5%<\/strong> of the value of the contract as specified in bid documents. <span class=\"tag-red\">\u2757 3%\u20135% (Goods\/Consultancy\/Non-Consultancy)<\/span><\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><em>Note:<\/em> Amount of Performance Security <strong>plus security deposit\/retention money for procurement of Works<\/strong> will continue to be <strong>3% to 10%<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccb<\/span><span><strong>Acceptable forms:<\/strong> Insurance Surety Bond \u00b7 Account Payee Demand Draft \u00b7 Fixed Deposit Receipt from a Commercial Bank \u00b7 Bank Guarantee (including e-Bank Guarantee) from a Commercial Bank \u00b7 Online payment in acceptable form<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcc5<\/span><span>Performance Security should remain valid for a period of <strong>60 days beyond the date of completion of all contractual obligations including warranty obligations<\/strong>. <span class=\"tag-red\">\u2757 60 days beyond completion + warranty<\/span><\/span><\/li>\n <li><span class=\"bi\">\ud83d\udd04<\/span><span>Bid security shall be <strong>refunded to the successful bidder on receipt of Performance Security<\/strong>.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch6r172\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 172(1)<\/span><span class=\"rule-title\">Advance Payment to Supplier \u2014 Ceilings and Safeguards<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>Ordinarily, payments for services rendered or supplies made should be <strong>released only after the services have been rendered or supplies made<\/strong>. However, advance payments may be made in the following types of cases:\n <ul class=\"blist-sub\">\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span>Advance demanded by firms holding <strong>maintenance contracts<\/strong> for servicing of Air-conditioners, computers, other costly equipment, etc.<\/span><\/li>\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span>Advance demanded by firms against <strong>fabrication contracts, turn-key contracts<\/strong>, etc.<\/span><\/li>\n <\/ul>\n <\/span><\/li>\n <\/ul>\n <div class=\"box-amber\">\n <div class=\"box-amber-lbl\">\u2b50 Advance Payment Ceilings \u2014 Rule 172(1)<\/div>\n <table style=\"width:100%;border-collapse:collapse;font-size:14px;margin-top:6px\">\n <thead>\n <tr style=\"background:#c9a227;color:#1a3400\">\n <th style=\"padding:8px 12px;text-align:left\">Recipient<\/th>\n <th style=\"padding:8px 12px;text-align:left\">Ceiling<\/th>\n <\/tr>\n <\/thead>\n <tbody>\n <tr style=\"background:#fffdf0;border-bottom:1px solid #e8e0c0\">\n <td style=\"padding:8px 12px\"><strong>Private firms<\/strong><\/td>\n <td style=\"padding:8px 12px\"><strong>30%<\/strong> of the contract value<\/td>\n <\/tr>\n <tr style=\"background:#fff8e8;border-bottom:1px solid #e8e0c0\">\n <td style=\"padding:8px 12px\"><strong>State or Central Government agency or PSU<\/strong><\/td>\n <td style=\"padding:8px 12px\"><strong>40%<\/strong> of the contract value<\/td>\n <\/tr>\n <tr style=\"background:#fffdf0\">\n <td style=\"padding:8px 12px\"><strong>Maintenance contracts<\/strong><\/td>\n <td style=\"padding:8px 12px\">Amount should not exceed the amount payable for <strong>6 months<\/strong> under the contract<\/td>\n <\/tr>\n <\/tbody>\n <\/table>\n <\/div>\n <ul class=\"blist\" style=\"margin-top:10px\">\n <li><span class=\"bi\">\u2696\ufe0f<\/span><span>Ministries or Departments may <strong>relax these ceilings<\/strong> (including the 30% for private firms) in consultation with their <strong>Financial Advisers<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udd10<\/span><span>While making any advance payment, <strong>adequate safeguards in the form of bank guarantee<\/strong> etc. shall be obtained from the firm.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch6r172b\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 172(2)<\/span><span class=\"rule-title\">Part Payment to Suppliers<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>Depending on the terms of delivery incorporated in a contract, <strong>part payment to the supplier may be released<\/strong> after it <strong>dispatches the goods from its premises<\/strong> in terms of the contract.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"box-amber\" style=\"margin-top:36px\">\n <div class=\"box-amber-lbl\">\u2b50 Key Numbers and Facts to Remember \u2014 Chapter 6<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>GeM tiers:<\/strong> \u2264\u20b950,000 (any seller) \u00b7 \u20b950,000\u2013\u20b910L (lowest among \u22653 manufacturers) \u00b7 >\u20b910L (online bidding\/reverse auction mandatory) (R.149)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>Annual Procurement Plan<\/strong> on GeM portal within <strong>30 days of Budget approval<\/strong> (R.149)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>Supplier registration period: 1\u20133 years<\/strong> depending on nature of goods (R.150)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>Debarment:<\/strong> Mandatory conviction \u2014 up to <strong>3 years<\/strong> (DoE maintains list on CPPP) \u00b7 Code of Integrity breach \u2014 up to <strong>2 years<\/strong> (Ministry maintains list on website) (R.151)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>Handloom textiles:<\/strong> At least <strong>20%<\/strong> mandatory from KVIC\/Handloom Clusters (R.153)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>Purchase without quotation:<\/strong> \u2264<strong>\u20b950,000<\/strong> \u00b7 Personal satisfaction certificate by competent authority (R.154)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>Purchase Committee:<\/strong> Above <strong>\u20b950,000 to \u20b95,00,000<\/strong> \u00b7 <strong>3-member<\/strong> Local Purchase Committee (R.155)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>5 procurement methods<\/strong>: Advertised Tender \u00b7 Limited Tender \u00b7 Two-Stage Bidding \u00b7 Single Tender \u00b7 Electronic Reverse Auction (R.158)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>E-Publishing exemptions<\/strong> (national security): Secretary + FA concurrence \u00b7 Quarterly statistics to DoE (R.159)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>Advertised Tender:<\/strong> \u2265<strong>\u20b950 lakhs<\/strong> \u00b7 Min <strong>3 weeks<\/strong> for bid submission (<strong>4 weeks<\/strong> if foreign bids) \u00b7 No GTE for tenders \u2264<strong>\u20b9200 crore<\/strong> (R.161)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>Limited Tender:<\/strong> Up to <strong>\u20b950 lakhs<\/strong> \u00b7 More than <strong>3 firms<\/strong> \u00b7 Unsolicited bids not accepted (R.162)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>Single Tender:<\/strong> 3 circumstances: sole manufacturer \/ emergency \/ standardisation of spares \u00b7 Proprietary Article Certificate for (i) & (iii) (R.166)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>Bidding document:<\/strong> 7 chapters (R.168)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>Bid Security:<\/strong> <strong>2%\u20135%<\/strong> of estimated value \u00b7 Exempted: MSEs, registered suppliers, DPIIT Startups \u00b7 Valid <strong>45 days beyond bid validity<\/strong> \u00b7 Returned by <strong>30th day after contract award<\/strong> (R.170)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>Performance Security:<\/strong> <strong>3%\u20135%<\/strong> (goods\/consultancy\/non-consultancy) \u00b7 <strong>3%\u201310%<\/strong> (works) \u00b7 Valid <strong>60 days beyond completion + warranty<\/strong> (R.171)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>Advance payment:<\/strong> <strong>30%<\/strong> (private firms) \u00b7 <strong>40%<\/strong> (Govt agency\/PSU) \u00b7 <strong>6 months<\/strong> (maintenance contracts) \u00b7 Bank guarantee\/safeguards mandatory (R.172)<\/span><\/li>\n <\/ul>\n <\/div>\n\n\n \n <div style=\"background:#fffbe6;border-left:5px solid #c9a227;padding:10px 18px;border-radius:0 6px 6px 0;margin:44px 0 10px;font-weight:700;color:#7a5500;font-size:14px;letter-spacing:.04em;text-transform:uppercase\">Section IV \u2014 Transparency, Integrity and Buy-Back (Rules 173\u2013176)<\/div>\n\n \n <div class=\"rule-block\" id=\"ch6r173\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 173<\/span><span class=\"rule-title\">Transparency, Competition, Fairness and Elimination of Arbitrariness \u2014 Twenty-Two Measures<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83c\udfaf<\/span><span>All Government purchases should be made in a <strong>transparent, competitive and fair manner<\/strong> to secure best value for money and enable prospective bidders to formulate competitive bids with confidence.<\/span><\/li>\n <\/ul>\n <div class=\"box-blue\">\n <div class=\"box-blue-lbl\">\ud83d\udccc Key Measures \u2014 Rule 173<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">(i)<\/span><span><strong>Bidding document must be self-contained and comprehensive<\/strong> without ambiguities. Essential elements to include:\n <ul class=\"blist-sub\">\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span>(a) Description, specifications, quantity, time and place of delivery<\/span><\/li>\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span>(b) Eligibility and qualification criteria (experience, technical capability, financial position, etc.)<\/span><\/li>\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span>(c) Eligibility criteria for goods (legal restrictions, origin conditions)<\/span><\/li>\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span>(d) Procedure, date, time and place for sending bids<\/span><\/li>\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span>(e) Date, time and place of bid opening<\/span><\/li>\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span>(f) Criteria for evaluation of bids<\/span><\/li>\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span>(g) Special terms affecting performance<\/span><\/li>\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span>(h) Essential terms of the procurement contract<\/span><\/li>\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span>(i) Clause that <strong>NIL charges\/consideration bid = unresponsive, not to be considered<\/strong><\/span><\/li>\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span><em>Note:<\/em> Prior turnover and prior experience conditions may be <strong>relaxed for Startups<\/strong> (DIPP-defined), subject to quality and technical specifications<\/span><\/li>\n <\/ul>\n <\/span><\/li>\n <li><span class=\"bi\">(iii)<\/span><span><strong>Modification to bidding document:<\/strong>\n <ul class=\"blist-sub\">\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span>(a) Material modifications\/clarifications must be published\/communicated in the same manner as the original<\/span><\/li>\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span>(b) If clarification\/modification is issued, time limit for bid submission must be extended if more time is required<\/span><\/li>\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span>(c) Bidders who submitted against original invitation may <strong>modify, re-submit or withdraw<\/strong> their bid within the (extended) time if modification materially affects essential terms. The <strong>last submitted or modified bid shall be considered for evaluation<\/strong><\/span><\/li>\n <\/ul>\n <\/span><\/li>\n <li><span class=\"bi\">(iv)<\/span><span>Suitable provision to enable bidder to <strong>question the bidding conditions, process and\/or rejection of its bid<\/strong>. Reasons for rejecting a tender or non-issuance of tender document must be <strong>disclosed on enquiry<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">(v)<\/span><span>Provision for <strong>settlement of disputes<\/strong> arising from the resultant contract to be kept in the bidding document.<\/span><\/li>\n <li><span class=\"bi\">(vi)<\/span><span>Bidding document to clearly state that the resultant contract will be interpreted under <strong>Indian Laws<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">(vii)<\/span><span>Bidders should be given <strong>reasonable time<\/strong> to prepare and send their bids.<\/span><\/li>\n <li><span class=\"bi\">(viii)<\/span><span>Bids should be <strong>opened in public<\/strong> and authorised representatives of bidders shall be <strong>permitted to attend bid opening<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">(ix)<\/span><span>Specifications should be clearly stated without ambiguity and should be <strong>broad-based to the extent feasible<\/strong> to attract sufficient bidders.<\/span><\/li>\n <li><span class=\"bi\">(x)<\/span><span><strong>Pre-bid conference:<\/strong> Suitable provision to be kept for one or more rounds of pre-bid conference for turn-key contracts, sophisticated\/costly equipment or wherever felt necessary. Date, time, place to be indicated in bidding document (sufficiently ahead of bid opening). Records of conference to be <strong>intimated to all bidders and exhibited on website(s)<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">(xi)<\/span><span><strong>Responsiveness criteria for evaluation:<\/strong> (a) Time of delivery \u00b7 (b) Performance\/efficiency\/environmental characteristics \u00b7 (c) Terms of payment and guarantees \u00b7 (d) Price \u00b7 (e) Cost of operating, maintaining and repairing<\/span><\/li>\n <li><span class=\"bi\">(xii)<\/span><span>Bids must be evaluated in terms of conditions <strong>already in the bidding document<\/strong>. <strong>No new condition<\/strong> to be brought in during evaluation. Responsiveness determined based on <strong>contents of the bid itself without recourse to extrinsic evidence<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">(xiii)<\/span><span>Bidders shall <strong>not be permitted to alter or modify their bids<\/strong> after expiry of the deadline for receipt of bids.<\/span><\/li>\n <li><span class=\"bi\">(xiv)<\/span><span><strong>Post-bid negotiation must be severely discouraged.<\/strong> In exceptional circumstances (ad-hoc procurement, unavoidable circumstances), price negotiation may be resorted to <strong>only with the lowest evaluated responsive bidder<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">(xvi)<\/span><span>Contract should ordinarily be awarded to the <strong>lowest evaluated bidder<\/strong> whose bid is responsive and who is eligible and qualified. Where the lowest acceptable bidder for ad-hoc requirement cannot supply the full quantity, the remaining quantity shall, as far as possible, be ordered from the <strong>next higher responsive bidder at the rates offered by the lowest<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">(xvii)<\/span><span><strong>Energy Efficient Electrical Appliances:<\/strong> Ministries\/Departments while procuring electrical appliances notified by DoE shall ensure they carry the notified threshold or <strong>higher Star Rating of BEE (Bureau of Energy Efficiency)<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">(xviii)<\/span><span>Name of the successful bidder shall be mentioned on <strong>GeM-CPPP, Ministry\/Department website and notice board or bulletin<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">(xix)<\/span><span><strong>Rejection of all bids is justified when:<\/strong>\n <ul class=\"blist-sub\">\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span>(a) Effective competition is lacking<\/span><\/li>\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span>(b) All bids\/proposals are not substantially responsive to procurement document requirements<\/span><\/li>\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span>(c) Bid prices are substantially higher than updated cost estimate or available budget<\/span><\/li>\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span>(d) None of the technical proposals meets the minimum technical qualifying score<\/span><\/li>\n <\/ul>\n <\/span><\/li>\n <li><span class=\"bi\">(xx)<\/span><span><strong>Lack of competition [under (xix)] shall not be determined solely on the basis of the number of bidders.<\/strong> Even if only one bid is submitted, the process may be considered valid if: (a) procurement was satisfactorily advertised with sufficient time \u00b7 (b) qualification criteria were not unduly restrictive \u00b7 (c) prices are reasonable compared to market values.<\/span><\/li>\n <li><span class=\"bi\">(xxi)<\/span><span>When a limited or open tender results in <strong>only one effective offer<\/strong>, it shall be treated as a <strong>single tender contract<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">(xxii)<\/span><span>In a Purchase Committee where estimated value of procurement exceeds <strong>\u20b950 lakhs<\/strong>, <strong>no member of the purchase committee should report directly to any other member<\/strong> of that committee. <span class=\"tag-red\">\u2757 >\u20b950L \u2014 no direct reporting relationship<\/span><\/span><\/li>\n <\/ul>\n <\/div>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch6r174\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 174<\/span><span class=\"rule-title\">Efficiency, Economy and Accountability in Public Procurement<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\u23f1\ufe0f<\/span><span><strong>(i)<\/strong> To reduce delay, appropriate <strong>time frame for each stage of procurement<\/strong> should be prescribed by the Ministry or Department.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccb<\/span><span><strong>(ii)<\/strong> To minimise time for decision-making and contract placement, every Ministry\/Department, with the approval of the competent authority, may <strong>delegate appropriate purchasing powers to lower functionaries<\/strong> wherever necessary.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcc5<\/span><span><strong>(iii)<\/strong> Ministries\/Departments should ensure placement of contract <strong>within the original validity of the bids<\/strong>. <strong>Extension of bid validity must be discouraged<\/strong> and resorted to only in exceptional circumstances.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch6r175\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 175<\/span><span class=\"rule-title\">Code of Integrity \u2014 Eight Prohibitions and Two Disclosures<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\u2696\ufe0f<\/span><span><strong>Sub-rule (1):<\/strong> No official of a procuring entity or a bidder shall act in contravention of the Code, which includes:<\/span><\/li>\n <\/ul>\n <div class=\"box-red\">\n <div class=\"box-red-lbl\">\u26d4 Eight Prohibited Acts \u2014 Rule 175(1)(i)<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">(a)<\/span><span><strong>Bribery<\/strong> \u2014 making offer, solicitation or acceptance of bribe, reward, gift or any material benefit (directly or indirectly) in exchange for unfair advantage or to influence the procurement process<\/span><\/li>\n <li><span class=\"bi\">(b)<\/span><span><strong>Misrepresentation<\/strong> \u2014 any omission or misrepresentation that may mislead or attempt to mislead so that financial or other benefit may be obtained or an obligation avoided<\/span><\/li>\n <li><span class=\"bi\">(c)<\/span><span><strong>Collusion \/ Bid rigging<\/strong> \u2014 any collusion, bid rigging or anticompetitive behaviour that may impair transparency, fairness and progress of the procurement process<\/span><\/li>\n <li><span class=\"bi\">(d)<\/span><span><strong>Improper use of information<\/strong> \u2014 improper use of information provided by the procuring entity to the bidder for gaining unfair advantage or for personal gain<\/span><\/li>\n <li><span class=\"bi\">(e)<\/span><span><strong>Conflict transactions<\/strong> \u2014 any financial or business transactions between the bidder and any official of the procuring entity related to the tender or execution of contract, which can affect the decision of the procuring entity directly or indirectly<\/span><\/li>\n <li><span class=\"bi\">(f)<\/span><span><strong>Coercion \/ threat<\/strong> \u2014 any coercion or threat to impair or harm, directly or indirectly, any party or its property to influence the procurement process<\/span><\/li>\n <li><span class=\"bi\">(g)<\/span><span><strong>Obstruction<\/strong> \u2014 obstruction of any investigation or auditing of a procurement process<\/span><\/li>\n <li><span class=\"bi\">(h)<\/span><span><strong>False declaration<\/strong> \u2014 making false declaration or providing false information for participation in a tender process or to secure a contract<\/span><\/li>\n <\/ul>\n <\/div>\n <ul class=\"blist\" style=\"margin-top:10px\">\n <li><span class=\"bi\">\ud83d\udce2<\/span><span><strong>Sub-rule (1)(ii):<\/strong> <strong>Disclosure of conflict of interest<\/strong> is mandatory.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udce2<\/span><span><strong>Sub-rule (1)(iii):<\/strong> Bidder must disclose any <strong>previous transgressions<\/strong> of sub-clause (i) with any entity in any country <strong>during the last 3 years<\/strong>, or of being debarred by any other procuring entity. <span class=\"tag-red\">\u2757 3-year lookback<\/span><\/span><\/li>\n <li><span class=\"bi\">\u2696\ufe0f<\/span><span><strong>Sub-rule (2):<\/strong> The procuring entity, after giving a <strong>reasonable opportunity of being heard<\/strong>, may take appropriate measures if it concludes that a bidder or prospective bidder has contravened the code of integrity.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch6r176\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 176<\/span><span class=\"rule-title\">Buy-Back Offer<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udd04<\/span><span>When it is decided, with the approval of the <strong>competent authority<\/strong>, to replace an existing old item with a new and better version, the department may <strong>trade the existing old item while purchasing the new one<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccb<\/span><span>A suitable clause shall be incorporated in the bidding document so that prospective bidders can formulate their bids accordingly. The time and mode of handing over the old item to the successful bidder shall be decided based on its value and condition.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>The bidding document should also provide suitable provision to enable the purchaser to <strong>either trade or not trade the item<\/strong> while purchasing the new one (option kept open).<\/span><\/li>\n <\/ul>\n <\/div>\n\n \n <div style=\"background:#f0faf5;border-left:5px solid #2aab6e;padding:10px 18px;border-radius:0 6px 6px 0;margin:44px 0 10px;font-weight:700;color:#1a6b5a;font-size:14px;letter-spacing:.04em;text-transform:uppercase\">Section V \u2014 Consulting Services (Rules 177\u2013196)<\/div>\n\n \n <div class=\"rule-block\" id=\"ch6r177\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 177<\/span><span class=\"rule-title\">Definition of Consulting Services<\/span><\/div>\n <div class=\"box-blue\">\n <div class=\"box-blue-lbl\">\ud83d\udccc Consulting Service vs Non-Consulting Service<\/div>\n <table style=\"width:100%;border-collapse:collapse;font-size:14px;margin-top:6px\">\n <thead>\n <tr style=\"background:#1a3a6b;color:#fff\">\n <th style=\"padding:8px 12px;text-align:left\">Type<\/th>\n <th style=\"padding:8px 12px;text-align:left\">Nature<\/th>\n <th style=\"padding:8px 12px;text-align:left\">Examples<\/th>\n <\/tr>\n <\/thead>\n <tbody>\n <tr style=\"background:#f0f6ff;border-bottom:1px solid #d0dcef\">\n <td style=\"padding:8px 12px\"><strong>Consulting Services<\/strong><\/td>\n <td style=\"padding:8px 12px\">Primarily <strong>non-physical, project-specific, intellectual and procedural processes<\/strong> where outcomes\/deliverables vary from one consultant to another \u00b7 Does NOT include direct engagement of a retired Government servant<\/td>\n <td style=\"padding:8px 12px\">Management consultants, policy consultants, communications consultants, feasibility studies, project management, engineering services, finance\/accounting\/taxation services, training and development<\/td>\n <\/tr>\n <tr style=\"background:#e8f0ff\">\n <td style=\"padding:8px 12px\"><strong>Non-Consulting Services<\/strong><\/td>\n <td style=\"padding:8px 12px\">Involve <strong>physical, measurable deliverables\/outcomes<\/strong> where performance standards can be clearly identified and consistently applied<\/td>\n <td style=\"padding:8px 12px\">Maintenance, hiring of vehicles, building facilities management, security, photocopier service, janitor, office errand services, drilling, aerial photography, satellite imagery, mapping<\/td>\n <\/tr>\n <\/tbody>\n <\/table>\n <\/div>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch6r178\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rules 178\u2013182<\/span><span class=\"rule-title\">Engagement of Consultants \u2014 Preliminary Steps<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccb<\/span><span><strong>R.178:<\/strong> Ministries\/Departments may hire <strong>external professionals, consultancy firms or consultants<\/strong> for a specific job, which is well defined in terms of content and time frame for its completion.<\/span><\/li>\n <li><span class=\"bi\">\u2705<\/span><span><strong>R.180:<\/strong> Engagement of consultants may be resorted to in situations requiring <strong>high quality services for which the Ministry\/Department does not have requisite expertise<\/strong>. <strong>Approval of the competent authority<\/strong> shall be obtained before engaging consultants.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcdd<\/span><span><strong>R.181:<\/strong> Ministries\/Departments should prepare in simple and concise language the <strong>requirement, objectives and scope of the assignment<\/strong>. Eligibility and prequalification criteria for consultants should also be identified at this stage.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcb0<\/span><span><strong>R.182:<\/strong> Ministry\/Department should <strong>estimate reasonable expenditure<\/strong> by ascertaining prevalent market conditions and consulting other organisations engaged in similar activities.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch6r183\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 183<\/span><span class=\"rule-title\">Identification of Likely Sources \u2014 Two Tiers<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccb<\/span><span><strong>Sub-rule (i) \u2014 Estimated cost up to \u20b950 lakhs:<\/strong> Preparation of a <strong>long list of potential consultants<\/strong> may be done on the basis of formal or informal enquiries from other Ministries\/Departments, Chambers of Commerce & Industry, Association of consultancy firms, etc.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udce2<\/span><span><strong>Sub-rule (ii) \u2014 Estimated cost above \u20b950 lakhs:<\/strong> In addition to (i), an enquiry for seeking <strong>Expression of Interest (EOI)<\/strong> shall be published on <strong>GeM as well as GeM-CPPP<\/strong> (and own website). EOI should include: broad scope of work \u00b7 inputs to be provided by Ministry \u00b7 eligibility and prequalification criteria \u00b7 consultant's past experience in similar work. Consultants may be asked for comments on objectives and scope. Adequate time shall be allowed. <span class=\"tag-red\">\u2757 >\u20b950L \u2014 EOI on GeM-CPPP<\/span><\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch6r184\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 184<\/span><span class=\"rule-title\">Short-Listing of Consultants \u2014 Minimum Three<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccb<\/span><span>On the basis of responses received as per Rule 183, consultants meeting requirements should be short-listed. <strong>Number of short-listed consultants should not be less than three<\/strong>. <span class=\"tag-red\">\u2757 Minimum 3<\/span><\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch6r185\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 185<\/span><span class=\"rule-title\">Preparation of Terms of Reference (TOR) \u2014 Five Elements<\/span><\/div>\n <div class=\"box-amber\">\n <div class=\"box-amber-lbl\">\u2b50 TOR Must Include \u2014 Five Elements<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">1\ufe0f\u20e3<\/span><span>Precise <strong>statement of objectives<\/strong><\/span><\/li>\n <li><span class=\"bi\">2\ufe0f\u20e3<\/span><span>Outline of the <strong>tasks to be carried out<\/strong><\/span><\/li>\n <li><span class=\"bi\">3\ufe0f\u20e3<\/span><span><strong>Schedule for completion<\/strong> of tasks<\/span><\/li>\n <li><span class=\"bi\">4\ufe0f\u20e3<\/span><span>The <strong>support or inputs to be provided by the Ministry\/Department<\/strong> to facilitate the consultancy<\/span><\/li>\n <li><span class=\"bi\">5\ufe0f\u20e3<\/span><span>The <strong>final outputs<\/strong> that will be required of the Consultant<\/span><\/li>\n <\/ul>\n <\/div>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch6r186\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 186<\/span><span class=\"rule-title\">Preparation and Issue of Request for Proposal (RFP) \u2014 Nine Contents<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccb<\/span><span>RFP is the document used by the Ministry\/Department for obtaining offers from consultants. Issued to <strong>short-listed consultants<\/strong> to seek their technical and financial proposals. RFP should contain:<\/span><\/li>\n <\/ul>\n <div class=\"box-blue\">\n <div class=\"box-blue-lbl\">\ud83d\udccc Nine Contents of an RFP<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">1\ufe0f\u20e3<\/span><span>A <strong>Letter of Invitation<\/strong><\/span><\/li>\n <li><span class=\"bi\">2\ufe0f\u20e3<\/span><span><strong>Information to Consultants<\/strong> regarding procedure for submission of proposal<\/span><\/li>\n <li><span class=\"bi\">3\ufe0f\u20e3<\/span><span><strong>Terms of Reference (TOR)<\/strong><\/span><\/li>\n <li><span class=\"bi\">4\ufe0f\u20e3<\/span><span>Eligibility and pre-qualification criteria (if not ascertained through EOI)<\/span><\/li>\n <li><span class=\"bi\">5\ufe0f\u20e3<\/span><span>List of <strong>key positions whose CV and experience<\/strong> would be evaluated<\/span><\/li>\n <li><span class=\"bi\">6\ufe0f\u20e3<\/span><span><strong>Bid evaluation criteria and selection procedure<\/strong><\/span><\/li>\n <li><span class=\"bi\">7\ufe0f\u20e3<\/span><span>Standard formats for <strong>technical and financial proposal<\/strong><\/span><\/li>\n <li><span class=\"bi\">8\ufe0f\u20e3<\/span><span><strong>Proposed contract terms<\/strong><\/span><\/li>\n <li><span class=\"bi\">9\ufe0f\u20e3<\/span><span>Procedure for <strong>mid-term review of progress<\/strong> and review of the final draft report<\/span><\/li>\n <\/ul>\n <\/div>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch6r187\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rules 187\u2013190<\/span><span class=\"rule-title\">Receipt, Opening and Evaluation of Proposals<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\u2709\ufe0f<\/span><span><strong>R.187 \u2014 Receipt and Opening:<\/strong> Proposals to be asked in <strong>Two-bid system<\/strong> \u2014 technical and financial bids sealed separately, both placed in a bigger sealed envelope. On receipt, <strong>technical proposals opened first<\/strong> at the specified date, time and place.<\/span><\/li>\n <li><span class=\"bi\">\u26d4<\/span><span><strong>R.188 \u2014 Late Bids:<\/strong> <strong>Not to be considered<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcca<\/span><span><strong>R.189 \u2014 Technical Evaluation:<\/strong> Technical bids analysed and evaluated by a <strong>Consultancy Evaluation Committee (CEC)<\/strong> constituted by the Ministry\/Department. CEC shall <strong>record in detail the reasons for acceptance or rejection<\/strong> of technical proposals.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcb0<\/span><span><strong>R.190 \u2014 Financial Evaluation:<\/strong> Financial bids opened only for bidders declared <strong>technically qualified by the CEC<\/strong> (per Rule 189) \u2014 for further analysis, evaluation, ranking and selection of the successful bidder.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch6r191\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 191<\/span><span class=\"rule-title\">Methods of Selection \/ Evaluation of Consultancy Proposals \u2014 Three Methods<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>The basis of selection of the consultant shall follow any of the methods given in <strong>Rules 192 to 194<\/strong> as appropriate for the circumstances in each case.<\/span><\/li>\n <\/ul>\n <div class=\"box-blue\">\n <div class=\"box-blue-lbl\">\ud83d\udccc Three Methods of Consultancy Selection<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">1\ufe0f\u20e3<\/span><span><strong>Quality and Cost Based Selection (QCBS)<\/strong> \u2014 Rule 192<\/span><\/li>\n <li><span class=\"bi\">2\ufe0f\u20e3<\/span><span><strong>Least Cost System (LCS)<\/strong> \u2014 Rule 193<\/span><\/li>\n <li><span class=\"bi\">3\ufe0f\u20e3<\/span><span><strong>Single Source Selection \/ Consultancy by Nomination<\/strong> \u2014 Rule 194<\/span><\/li>\n <\/ul>\n <\/div>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch6r192\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 192<\/span><span class=\"rule-title\">Quality and Cost Based Selection (QCBS)<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83c\udfaf<\/span><span>Used where <strong>quality of consultancy is of prime concern<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcca<\/span><span><strong>Step 1:<\/strong> Quality of technical proposals scored as per criteria announced in the RFP. Only responsive proposals achieving <strong>at least the minimum specified qualifying score<\/strong> in technical quality are considered further.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcca<\/span><span><strong>Step 2:<\/strong> Financial proposals of technically qualified bidders are opened and scored. A <strong>final combined score<\/strong> is arrived at by giving predefined relative weightages to technical score and financial score.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccb<\/span><span>RFP shall specify the <strong>minimum qualifying score for technical quality<\/strong> and the <strong>relative weightages<\/strong> to be given to quality and cost (determined per case, e.g. 70:30, 60:40, 50:50). <strong>Proposal with the highest weighted combined score<\/strong> shall be selected.<\/span><\/li>\n <li><span class=\"bi\">\u26a0\ufe0f<\/span><span>The weightage of <strong>technical (non-financial) parameters shall in no case exceed 80%<\/strong>. <span class=\"tag-red\">\u2757 Technical weight \u226480%<\/span><\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch6r193\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 193<\/span><span class=\"rule-title\">Least Cost System (LCS)<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>Appropriate for <strong>assignments of a standard or routine nature<\/strong> (such as audits and engineering design of non-complex works) where well-established methodologies, practices and standards exist.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcb0<\/span><span>Unlike QCBS, there is <strong>no weightage for technical score in the final evaluation<\/strong>. The responsive technically qualified proposal with the <strong>lowest evaluated cost<\/strong> shall be selected.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch6r194\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 194<\/span><span class=\"rule-title\">Single Source Selection \/ Consultancy by Nomination \u2014 Five Circumstances<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>Selection by <strong>direct negotiation\/nomination<\/strong> (on lines of Single Tender for goods) is appropriate only under <strong>exceptional circumstances<\/strong>:<\/span><\/li>\n <\/ul>\n <div class=\"box-amber\">\n <div class=\"box-amber-lbl\">\u2b50 Five Circumstances for Single Source Selection<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">1\ufe0f\u20e3<\/span><span><strong>(i)<\/strong> Tasks that represent a <strong>natural continuation of previous work<\/strong> carried out by the firm<\/span><\/li>\n <li><span class=\"bi\">2\ufe0f\u20e3<\/span><span><strong>(ii)<\/strong> In case of <strong>emergency, natural disasters, or where timely completion is of utmost importance<\/strong><\/span><\/li>\n <li><span class=\"bi\">3\ufe0f\u20e3<\/span><span><strong>(iii)<\/strong> Execution involves <strong>proprietary techniques<\/strong> or only one consultant has the requisite expertise<\/span><\/li>\n <li><span class=\"bi\">4\ufe0f\u20e3<\/span><span><strong>(iv)<\/strong> Under <strong>special circumstances<\/strong> where adequate justification is available in the overall interest of the Ministry\/Department \u2014 full justification recorded in file + competent authority approval before resorting to single-source selection<\/span><\/li>\n <li><span class=\"bi\">5\ufe0f\u20e3<\/span><span><strong>(v)<\/strong> A procedure must be in place to ensure: <strong>fairness and equity<\/strong> \u00b7 prices are <strong>reasonable and consistent with market rates<\/strong> for similar tasks \u00b7 required consultancy services are <strong>not split<\/strong> into smaller procurements<\/span><\/li>\n <\/ul>\n <\/div>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch6r195\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 195<\/span><span class=\"rule-title\">Monitoring the Consultancy Contract<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udc41\ufe0f<\/span><span>The Ministry\/Department should be <strong>involved throughout in the conduct of consultancy<\/strong>, preferably by taking a <strong>task force approach<\/strong> and <strong>continuously monitoring<\/strong> the performance of the consultant(s) so that the output is in line with the Ministry\/Department's objectives.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch6r196\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 196<\/span><span class=\"rule-title\">Public Competition for Design of Symbols \/ Logos<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83c\udfa8<\/span><span>Design competition shall be conducted in a <strong>transparent, fair and objective manner<\/strong> with wide publicity to ensure information is accessible to all possible participants.<\/span><\/li>\n <li><span class=\"bi\">\ud83c\udf10<\/span><span>Publication on the <strong>Ministry\/Department website<\/strong> as well as on <strong>GeM-CPPP<\/strong> is required. If selection is by a <strong>jury of experts<\/strong> nominated for the purpose, the <strong>composition of the jury may also be notified<\/strong>.<\/span><\/li>\n <\/ul>\n <\/div>\n\n \n <div style=\"background:#f0f4ff;border-left:5px solid #1a3a6b;padding:10px 18px;border-radius:0 6px 6px 0;margin:44px 0 10px;font-weight:700;color:#1a3a6b;font-size:14px;letter-spacing:.04em;text-transform:uppercase\">Section VI \u2014 Outsourcing \/ Non-Consulting Services (Rules 197\u2013206)<\/div>\n\n \n <div class=\"rule-block\" id=\"ch6r197\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 197<\/span><span class=\"rule-title\">Definition \u2014 Non-Consulting Services<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>Non-Consulting Services involve <strong>physical, measurable deliverables\/outcomes<\/strong> where performance standards can be clearly identified and consistently applied \u2014 other than goods or works (except those incidental to the service).<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udd27<\/span><span><strong>Examples:<\/strong> Maintenance \u00b7 Hiring of vehicles \u00b7 Building facilities management \u00b7 Security \u00b7 Photocopier service \u00b7 Janitor \u00b7 Office errand services \u00b7 Drilling \u00b7 Aerial photography \u00b7 Satellite imagery \u00b7 Mapping<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch6r198\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 198<\/span><span class=\"rule-title\">Procurement of Non-Consulting Services \u2014 General<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccb<\/span><span>A Ministry or Department may procure certain non-consulting services in the <strong>interest of economy and efficiency<\/strong> and may prescribe detailed instructions and procedures for this purpose, without contravening the basic guidelines in Rules 198\u2013206.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch6r199\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 199<\/span><span class=\"rule-title\">Identification of Likely Contractors<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccb<\/span><span>Ministry\/Department should prepare a list of likely and potential contractors on the basis of formal or informal enquiries from other Ministries\/Departments and organisations involved in similar activities, <strong>scrutiny of Yellow Pages, trade journals, websites<\/strong>, etc.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch6r200\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 200<\/span><span class=\"rule-title\">Preparation of Tender Enquiry \u2014 Four Elements<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccb<\/span><span>Ministry\/Department should prepare a tender enquiry containing, inter alia:<\/span><\/li>\n <\/ul>\n <div class=\"box-amber\">\n <div class=\"box-amber-lbl\">\u2b50 Four Elements of Non-Consulting Tender Enquiry<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">1\ufe0f\u20e3<\/span><span>Details of the <strong>work or service to be performed<\/strong> by the contractor<\/span><\/li>\n <li><span class=\"bi\">2\ufe0f\u20e3<\/span><span>The <strong>facilities and inputs<\/strong> to be provided to the contractor by the Ministry\/Department<\/span><\/li>\n <li><span class=\"bi\">3\ufe0f\u20e3<\/span><span><strong>Eligibility and qualification criteria<\/strong> to be met by the contractor<\/span><\/li>\n <li><span class=\"bi\">4\ufe0f\u20e3<\/span><span>The <strong>statutory and contractual obligations<\/strong> to be complied with by the contractor<\/span><\/li>\n <\/ul>\n <\/div>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch6r201\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 201<\/span><span class=\"rule-title\">Invitation of Bids \u2014 Two Tiers<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccb<\/span><span><strong>Sub-rule (i) \u2014 Up to \u20b950 lakhs:<\/strong> Scrutinise the preliminary list of contractors (Rule 199), decide prima facie eligible and capable contractors, and issue <strong>Limited Tender Enquiry<\/strong> to them. Number of contractors for LTE shall be <strong>more than three<\/strong>. <span class=\"tag-red\">\u2757 >3 contractors<\/span><\/span><\/li>\n <li><span class=\"bi\">\ud83d\udce2<\/span><span><strong>Sub-rule (ii) \u2014 Above \u20b950 lakhs:<\/strong> Issue advertisement on <strong>GeM as well as GeM-CPPP<\/strong> (and own website). Advertisement must give complete web address for downloading bidding documents. <span class=\"tag-red\">\u2757 >\u20b950L \u2014 GeM + GeM-CPPP<\/span><\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch6r202\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 202<\/span><span class=\"rule-title\">Late Bids \u2014 Not to Be Considered<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\u26d4<\/span><span>Late bids (received after the specified date and time) shall <strong>not be considered<\/strong>.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch6r203\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 203<\/span><span class=\"rule-title\">Evaluation of Bids Received<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udcca<\/span><span>The Ministry\/Department should <strong>evaluate, segregate, rank<\/strong> the responsive bids and select the <strong>successful bidder<\/strong> for placement of the contract.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch6r204\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 204<\/span><span class=\"rule-title\">Procurement of Non-Consulting Services by Nomination \u2014 Exceptional Circumstances<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>Should it become necessary in an <strong>exceptional situation<\/strong> to procure a non-consulting service from a specifically chosen contractor, the <strong>Competent Authority<\/strong> in the Ministry\/Department may do so <strong>in consultation with the Financial Adviser<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccb<\/span><span>In such cases, the <strong>detailed justification, circumstances leading to such procurement by choice, and the special interest or purpose<\/strong> it shall serve, shall form an <strong>integral part of the proposal<\/strong>.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch6r205\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 205<\/span><span class=\"rule-title\">Monitoring the Non-Consulting Services Contract<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udc41\ufe0f<\/span><span>The Ministry\/Department should be <strong>involved throughout<\/strong> in the conduct of the contract and <strong>continuously monitor<\/strong> the performance of the contractor.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch6r206\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 206<\/span><span class=\"rule-title\">Residual Applicability \u2014 Rules 142\u2013176 Apply<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>Any circumstances not covered in Rules 198\u2013205 for procurement of non-consulting services shall be governed by <strong>Rules 142 to 176<\/strong> (pertaining to <strong>procurement of goods<\/strong>) and <strong>not<\/strong> the rules pertaining to procurement of consulting services.<\/span><\/li>\n <\/ul>\n <\/div>\n\n \n <div class=\"box-amber\" style=\"margin-top:36px\">\n <div class=\"box-amber-lbl\">\u2b50 Additional Key Numbers and Facts \u2014 Rules 173\u2013206<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>NIL bid<\/strong> = unresponsive, not to be considered (R.173(i))<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>Prior turnover\/experience relaxable<\/strong> for DIPP-recognised Startups (R.173(i))<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>Post-bid <strong>negotiation severely discouraged<\/strong>; if unavoidable (ad-hoc), only with <strong>lowest evaluated responsive bidder<\/strong> (R.173(xiv))<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>One effective offer in open\/limited tender = treated as <strong>single tender contract<\/strong> (R.173(xxi))<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>Purchase Committee with value >\u20b950 lakhs: <strong>No member shall directly report to another member<\/strong> of the same committee (R.173(xxii))<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>Code of Integrity \u2014 <strong>8 prohibited acts<\/strong> \u00b7 Prior transgressions disclosure for <strong>last 3 years<\/strong> (R.175)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>Consulting EOI published on GeM-CPPP when estimated cost is <strong>above \u20b950 lakhs<\/strong> (R.183)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>Short-listed consultants: <strong>minimum 3<\/strong> (R.184)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>TOR: <strong>5 elements<\/strong> (R.185) \u00b7 RFP: <strong>9 contents<\/strong> (R.186)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>CEC (Consultancy Evaluation Committee) \u2014 evaluates technical bids and must <strong>record detailed reasons for acceptance\/rejection<\/strong> (R.189)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>3 consultancy selection methods:<\/strong> QCBS \u00b7 LCS \u00b7 Single Source \/ Nomination (R.191\u2013194)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>QCBS: Technical weightage <strong>shall not exceed 80%<\/strong> (R.192)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>LCS: No technical weightage in final score; lowest cost among technically qualified = selected (R.193)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>Single Source consultancy: <strong>5 circumstances<\/strong> \u00b7 Full justification on file \u00b7 Competent authority approval (R.194)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>Non-consulting services: LTE for \u2264\u20b950L (>3 contractors) \u00b7 Open tender\/GeM-CPPP for >\u20b950L (R.201)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>Nomination for non-consulting: Competent Authority + <strong>FA consultation<\/strong> \u00b7 Justification integral part of proposal (R.204)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>Residual gaps in non-consulting rules: governed by <strong>R.142\u2013176<\/strong> (goods rules), NOT consulting rules (R.206)<\/span><\/li>\n <\/ul>\n <\/div>\n <\/div>\n <div id=\"ch7\" class=\"ch-block\">\n\n <div class=\"ch-banner\">\n <div class=\"ch-num\">Chapter 7<\/div>\n <div class=\"ch-title\">Inventory Management<\/div>\n <div class=\"ch-range\">Rules 207 to 223 \u00b7 Receipt \u00b7 Custody \u00b7 Verification \u00b7 Disposal \u00b7 Write-off<\/div>\n <\/div>\n\n \n <div class=\"idx-outer\">\n <div class=\"idx-lbl\">Rules at a Glance<\/div>\n <table class=\"idx-table\">\n <thead><tr><th style=\"width:110px\">Rule No.<\/th><th>Rule Title<\/th><th>Key Point<\/th><\/tr><\/thead>\n <tbody>\n <tr><td class=\"r-num\">Rule 207<\/td><td class=\"r-title\">Scope and Application<\/td><td class=\"r-key\">Basic rules for all Ministries\/Depts \u00b7 Detailed instructions may be prescribed in conformity with this chapter<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 208<\/td><td class=\"r-title\">Receipt from Private Suppliers<\/td><td class=\"r-key\">Count\/measure\/weigh + visual inspection at receipt \u00b7 Technical inspection where required \u00b7 Entry in stock register (IT-based preferred) \u00b7 Officer's certificate of receipt<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 209<\/td><td class=\"r-title\">Receipt\/Issue from Internal Divisions<\/td><td class=\"r-key\">Indent in prescribed form \u00b7 Examine\/count at receipt \u00b7 Written\/online acknowledgement mandatory \u00b7 Materials to contractor \u2192 cost particulars & recovery rates acknowledged \u00b7 Partial supply with note in indent copy<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 210<\/td><td class=\"r-title\">Custody of Goods<\/td><td class=\"r-key\">Safe custody arrangements \u00b7 Proper storage \u00b7 Temperature, dust-free environment etc. for valuable\/combustible articles<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 211<\/td><td class=\"r-title\">Lists and Accounts \u2014 GFR Forms<\/td><td class=\"r-key\">Item-wise lists and accounts \u00b7 Check actual vs book balances at any time \u00b7 GFR-22 (Fixed Assets) \u00b7 GFR-23 (Consumables) \u00b7 GFR-18 (Library Books) \u00b7 GFR-24 (Historical\/Artistic Assets)<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 212<\/td><td class=\"r-title\">Hiring Out of Fixed Assets<\/td><td class=\"r-key\">Proper record of assets \u00b7 Hire charges recovered regularly \u00b7 Charges based on historical cost<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 213<\/td><td class=\"r-title\">Physical Verification<\/td><td class=\"r-key\">Fixed assets: at least once a year \u00b7 Consumables: at least once a year \u00b7 In presence of custody officer \u00b7 Certificate of verification in stock register \u00b7 Discrepancies \u2192 R.33\u201338<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 214<\/td><td class=\"r-title\">Buffer Stock<\/td><td class=\"r-key\">Optimum buffer stock determined by competent authority \u00b7 Item in stock >1 year = generally surplus \u00b7 Deal as per R.217<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 215<\/td><td class=\"r-title\">Physical Verification of Library Books<\/td><td class=\"r-key\">\u226420,000 vol: yearly \u00b7 20,001\u201350,000 vol: once in 3 years \u00b7 >50,000 vol: sample verification every 3 years \u00b7 Loss of 5 per 1,000 volumes issued = reasonable \u00b7 Book >\u20b91,000 or rare books \u2192 investigated<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 216<\/td><td class=\"r-title\">Transfer of Charge<\/td><td class=\"r-key\">Goods handed over to successor correctly \u00b7 Statement signed by both relieving and relieved officer \u00b7 Each retains a copy<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 217<\/td><td class=\"r-title\">Disposal of Goods<\/td><td class=\"r-key\">Declare surplus\/obsolete\/unserviceable with recorded reasons \u00b7 Committee may be constituted \u00b7 Book value\/guiding\/reserved price worked out \u00b7 Form GFR-10 \u00b7 Negligence \u2192 fix responsibility \u00b7 Hazardous waste per MoEF guidelines<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 218<\/td><td class=\"r-title\">Modes of Disposal<\/td><td class=\"r-key\">Residual value >\u20b94 lakh \u2192 advertised tender or public auction \u00b7 <\u20b94 lakh \u2192 competent authority decides \u00b7 Hazardous\/expired items \u2192 destroy immediately \u00b7 Security items \u2192 destroy per official secrets rules<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 219<\/td><td class=\"r-title\">Disposal through Advertised Tender<\/td><td class=\"r-key\">8-step process \u00b7 Bid security = 10% of assessed\/reserved price \u00b7 Highest responsive bidder accepted \u00b7 Negotiation only with that bidder \u00b7 Full payment before release \u00b7 Default \u2192 forfeit bid security + re-sale at defaulter's risk & cost<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 220<\/td><td class=\"r-title\">Disposal through Auction<\/td><td class=\"r-key\">Direct or through approved auctioneers \u00b7 Wide publicity \u00b7 Earnest money \u226525% of bid value immediately on acceptance \u00b7 Balance before handing over \u00b7 IFW officer must be on auction team<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 221<\/td><td class=\"r-title\">Disposal at Scrap Value \/ Other Modes<\/td><td class=\"r-key\">If tender and auction both fail \u2192 scrap value with Finance division concurrence \u00b7 If unsold even at scrap \u2192 any mode including eco-friendly destruction<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 222<\/td><td class=\"r-title\">Sale Account<\/td><td class=\"r-key\">Sale account in Form GFR-11 \u00b7 Signed by officer who supervised the sale\/auction<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 223<\/td><td class=\"r-title\">Write-off of Losses<\/td><td class=\"r-key\">Formal sanction from competent authority mandatory even if no account adjustment \u00b7 Powers under DFPR \u00b7 Losses due to depreciation: 4 heads \u00b7 Losses not due to depreciation: 5 heads<\/td><\/tr>\n <\/tbody>\n <\/table>\n <\/div>\n\n \n <div style=\"background:#f0f4ff;border-left:5px solid #1a3a6b;padding:10px 18px;border-radius:0 6px 6px 0;margin:10px 0;font-weight:700;color:#1a3a6b;font-size:14px;letter-spacing:.04em;text-transform:uppercase\">Receipt, Custody and Accounts \u2014 Rules 207\u2013212<\/div>\n\n \n <div class=\"rule-block\" id=\"ch7r207\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 207<\/span>\n <span class=\"rule-title\">Scope and Application<\/span>\n <\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccb<\/span><span>This chapter contains the <strong>basic rules applicable to all Ministries or Departments<\/strong> regarding inventory management.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcdd<\/span><span>Detailed instructions and procedures relating to inventory management may be prescribed by various Ministries or Departments <strong>broadly in conformity with the basic rules<\/strong> contained in this chapter.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch7r208\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 208<\/span>\n <span class=\"rule-title\">Receipt of Goods and Materials from Private Suppliers<\/span>\n <\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udcdc<\/span><span><strong>(i)<\/strong> The officer-in-charge of stores should refer to the <strong>relevant contract terms<\/strong> and follow the prescribed procedure for receiving materials.<\/span><\/li>\n <li><span class=\"bi\">\u2696\ufe0f<\/span><span><strong>(ii)<\/strong> All materials shall be <strong>counted, measured or weighed<\/strong> and subjected to <strong>visual inspection<\/strong> at the time of receipt to ensure:\n <ul class=\"blist-sub\">\n <li><span class=\"bsi\">\u2705<\/span><span>Quantities are <strong>correct<\/strong><\/span><\/li>\n <li><span class=\"bsi\">\u2705<\/span><span>Quality is <strong>according to required specifications<\/strong><\/span><\/li>\n <li><span class=\"bsi\">\u2705<\/span><span>No <strong>damage or deficiency<\/strong> in the materials<\/span><\/li>\n <\/ul>\n <strong>Technical inspection<\/strong> where required should be carried out at this stage by Technical Inspector or Agency approved for the purpose.\n <\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcd2<\/span><span><strong>(iii)<\/strong> Details of material received shall be entered in the <strong>appropriate stock register, preferably in an IT-based system<\/strong>. The officer-in-charge of stores should <strong>certify that he has actually received the material<\/strong> and recorded it in the appropriate stock registers.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch7r209\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 209<\/span>\n <span class=\"rule-title\">Receipt \/ Issue of Goods from Internal Divisions<\/span>\n <\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccb<\/span><span><strong>(i) Receiving from internal divisions:<\/strong> The indenting officer shall <strong>project an indent in the prescribed form<\/strong>. On receipt, he shall examine, count, measure or weigh materials and provide an <strong>appropriate receipt<\/strong> to the sending division.<\/span><\/li>\n <li><span class=\"bi\">\u270d\ufe0f<\/span><span><strong>(ii) Issue from stock for departmental use:<\/strong> The officer-in-charge of stores shall ensure an <strong>indent in the prescribed form has been projected<\/strong>. A <strong>written\/online acknowledgement of receipt<\/strong> shall be obtained from the indenting officer or his authorised representative <strong>at the time of issue<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83c\udfd7\ufe0f<\/span><span><strong>(iii) Issue to contractor (cost recoverable):<\/strong> All relevant particulars \u2014 including <strong>recovery rates and total value chargeable to the contractor<\/strong> \u2014 should be <strong>got acknowledged from the contractor, duly signed and dated<\/strong>. <span class=\"tag-red\">\u2757 Exam point<\/span><\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcdd<\/span><span><strong>(iv) Partial supply:<\/strong> If unable to comply with the indent in full, the officer-in-charge should make supply to the extent available and make a <strong>suitable entry in the indentor's copy of the indent<\/strong>. If alternatives are available, a <strong>suitable indication<\/strong> may be made in the document.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch7r210\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 210<\/span>\n <span class=\"rule-title\">Custody of Goods and Materials<\/span>\n <\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udd12<\/span><span>The officer-in-charge of stores having custody of goods and materials \u2014 especially <strong>valuable and\/or combustible articles<\/strong> \u2014 shall take appropriate steps for:\n <ul class=\"blist-sub\">\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span><strong>Safe custody<\/strong><\/span><\/li>\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span><strong>Proper storage accommodation<\/strong><\/span><\/li>\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span>Arrangements for maintaining required <strong>temperature, dust-free environment<\/strong>, etc.<\/span><\/li>\n <\/ul>\n <\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch7r211\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 211<\/span>\n <span class=\"rule-title\">Lists and Accounts \u2014 GFR Forms for Different Asset Types<\/span>\n <\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udcd2<\/span><span><strong>(i)<\/strong> The officer-in-charge shall maintain <strong>suitable item-wise lists and accounts<\/strong> and prepare accurate returns in respect of goods and materials in his charge, making it possible at <strong>any point of time to check actual balances with book balances<\/strong>.<\/span><\/li>\n <\/ul>\n <div class=\"sec-h\">Sub-clause (ii) \u2014 Four Separate Accounts<\/div>\n <div class=\"box-blue\">\n <div class=\"box-blue-lbl\">\ud83d\udccb GFR Forms for Stock Accounts<\/div>\n <table style=\"width:100%;border-collapse:collapse;font-size:14px;margin-top:6px\">\n <thead>\n <tr style=\"background:#1a3a6b;color:#fff\">\n <th style=\"padding:8px 12px;text-align:left\">Category<\/th>\n <th style=\"padding:8px 12px;text-align:left\">Examples<\/th>\n <th style=\"padding:8px 12px;text-align:center\">Form<\/th>\n <\/tr>\n <\/thead>\n <tbody>\n <tr style=\"background:#f0f6ff;border-bottom:1px solid #d0dcef\">\n <td style=\"padding:8px 12px\"><strong>Fixed Assets<\/strong><\/td>\n <td style=\"padding:8px 12px\">Plant, machinery, equipment, furniture, fixtures<\/td>\n <td style=\"padding:8px 12px;text-align:center\"><span class=\"tag-green\">GFR-22<\/span><\/td>\n <\/tr>\n <tr style=\"background:#e8f0ff;border-bottom:1px solid #d0dcef\">\n <td style=\"padding:8px 12px\"><strong>Consumables<\/strong><\/td>\n <td style=\"padding:8px 12px\">Office stationery, chemicals, maintenance spare parts<\/td>\n <td style=\"padding:8px 12px;text-align:center\"><span class=\"tag-green\">GFR-23<\/span><\/td>\n <\/tr>\n <tr style=\"background:#f0f6ff;border-bottom:1px solid #d0dcef\">\n <td style=\"padding:8px 12px\"><strong>Library Books<\/strong><\/td>\n <td style=\"padding:8px 12px\">Books held in government libraries<\/td>\n <td style=\"padding:8px 12px;text-align:center\"><span class=\"tag-green\">GFR-18<\/span><\/td>\n <\/tr>\n <tr style=\"background:#e8f0ff\">\n <td style=\"padding:8px 12px\"><strong>Historical \/ Artistic Assets<\/strong><\/td>\n <td style=\"padding:8px 12px\">Assets held by museums\/govt. departments<\/td>\n <td style=\"padding:8px 12px;text-align:center\"><span class=\"tag-green\">GFR-24<\/span><\/td>\n <\/tr>\n <\/tbody>\n <\/table>\n <\/div>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch7r212\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 212<\/span>\n <span class=\"rule-title\">Hiring Out of Fixed Assets<\/span>\n <\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccb<\/span><span>When a fixed asset is hired to <strong>local bodies, contractors or others<\/strong>, proper record should be kept of the assets.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcb0<\/span><span>Hire and other charges as determined under rules prescribed by the <strong>competent authority shall be recovered regularly<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcd0<\/span><span>Calculation of charges shall be based on the <strong>historical cost<\/strong> of the asset. <span class=\"tag-amber\">\u2b50 Historical cost basis<\/span><\/span><\/li>\n <\/ul>\n <\/div>\n\n \n <div style=\"background:#e8f0ff;border-left:5px solid #1a3a6b;padding:10px 18px;border-radius:0 6px 6px 0;margin:44px 0 10px;font-weight:700;color:#1a3a6b;font-size:14px;letter-spacing:.04em;text-transform:uppercase\">Physical Verification and Buffer Stock \u2014 Rules 213\u2013216<\/div>\n\n \n <div class=\"rule-div\" style=\"margin-top:8px\"><\/div>\n <div class=\"rule-block\" id=\"ch7r213\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 213<\/span>\n <span class=\"rule-title\">Physical Verification \u2014 Fixed Assets and Consumables<\/span>\n <\/div>\n <div class=\"sec-h\">Sub-rule (1) \u2014 Fixed Assets<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83c\udfed<\/span><span>The inventory for fixed assets shall ordinarily be <strong>maintained at site<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcc5<\/span><span>Fixed assets should be verified <strong>at least once in a year<\/strong> and the outcome of verification <strong>recorded in the corresponding register<\/strong>. <span class=\"tag-red\">\u2757 Once a year<\/span><\/span><\/li>\n <li><span class=\"bi\">\ud83d\udd0d<\/span><span>Discrepancies, if any, shall be <strong>promptly investigated and brought to account<\/strong>.<\/span><\/li>\n <\/ul>\n <div class=\"sec-h\">Sub-rule (2) \u2014 Consumables<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udce6<\/span><span>A physical verification of all consumable goods and materials should be undertaken <strong>at least once in a year<\/strong> and discrepancies shall be recorded in the stock register for appropriate action by the competent authority.<\/span><\/li>\n <\/ul>\n <div class=\"sec-h\">Sub-rule (3) \u2014 Procedure for Verification<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">1\ufe0f\u20e3<\/span><span>Verification shall always be made in the <strong>presence of the officer responsible for custody<\/strong> of the inventory being verified.<\/span><\/li>\n <li><span class=\"bi\">2\ufe0f\u20e3<\/span><span>A <strong>certificate of verification along with the findings<\/strong> shall be recorded in the stock register.<\/span><\/li>\n <li><span class=\"bi\">3\ufe0f\u20e3<\/span><span>Discrepancies including <strong>shortages, damages and unserviceable goods<\/strong> identified during verification shall immediately be brought to the notice of the competent authority for action in accordance with <strong>Rules 33 to 38<\/strong> (Loss reporting and responsibility).<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch7r214\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 214<\/span>\n <span class=\"rule-title\">Buffer Stock<\/span>\n <\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udcca<\/span><span>Depending on the <strong>frequency of requirement, quantity thereof, and pattern of supply<\/strong> of a consumable material, <strong>optimum buffer stock<\/strong> should be determined by the competent authority.<\/span><\/li>\n <\/ul>\n <div class=\"box-red\">\n <span style=\"font-size:18px;flex-shrink:0;margin-top:2px\">\u26a0\ufe0f<\/span>\n <span><strong>Surplus Rule:<\/strong> As inventory carrying cost is an expenditure that does not add value to the material stocked, a material remaining in stock for <strong>over one year shall generally be considered surplus<\/strong>, unless adequate reasons to treat it otherwise exist. Items so declared surplus shall be dealt with as per <strong>Rule 217<\/strong>. <span class=\"tag-red\">\u2757 >1 year in stock = surplus<\/span><\/span>\n <\/div>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch7r215\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 215<\/span>\n <span class=\"rule-title\">Physical Verification of Library Books<\/span>\n <\/div>\n <div class=\"sec-h\">Sub-rule (i) \u2014 Verification Frequency by Library Size<\/div>\n <div class=\"box-blue\">\n <div class=\"box-blue-lbl\">\u2b50 Library Verification Schedule \u2014 Three Tiers<\/div>\n <table style=\"width:100%;border-collapse:collapse;font-size:14px;margin-top:6px\">\n <thead>\n <tr style=\"background:#1a3a6b;color:#fff\">\n <th style=\"padding:8px 12px;text-align:left\">Library Size (Volumes)<\/th>\n <th style=\"padding:8px 12px;text-align:left\">Type of Verification<\/th>\n <th style=\"padding:8px 12px;text-align:left\">Frequency<\/th>\n <\/tr>\n <\/thead>\n <tbody>\n <tr style=\"background:#f0f6ff;border-bottom:1px solid #d0dcef\">\n <td style=\"padding:8px 12px\"><strong>Up to 20,000<\/strong><\/td>\n <td style=\"padding:8px 12px\">Complete verification<\/td>\n <td style=\"padding:8px 12px\"><span class=\"tag-green\">Every year<\/span><\/td>\n <\/tr>\n <tr style=\"background:#e8f0ff;border-bottom:1px solid #d0dcef\">\n <td style=\"padding:8px 12px\"><strong>20,001 \u2013 50,000<\/strong><\/td>\n <td style=\"padding:8px 12px\">Complete verification<\/td>\n <td style=\"padding:8px 12px\"><span class=\"tag-amber\">At least once in 3 years<\/span><\/td>\n <\/tr>\n <tr style=\"background:#f0f6ff\">\n <td style=\"padding:8px 12px\"><strong>More than 50,000<\/strong><\/td>\n <td style=\"padding:8px 12px\">Sample verification<\/td>\n <td style=\"padding:8px 12px\"><span class=\"tag-amber\">Intervals \u2264 3 years<\/span><\/td>\n <\/tr>\n <\/tbody>\n <\/table>\n <\/div>\n <ul class=\"blist\" style=\"margin-top:10px\">\n <li><span class=\"bi\">\u26a0\ufe0f<\/span><span>In case sample verification reveals <strong>unusual or unreasonable shortages<\/strong>, <strong>complete verification<\/strong> shall be done.<\/span><\/li>\n <\/ul>\n <div class=\"sec-h\">Sub-rule (ii) \u2014 Acceptable Loss in Libraries<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udcca<\/span><span>Loss of <strong>five volumes per one thousand volumes<\/strong> of books issued\/consulted in a year may be taken as <strong>reasonable<\/strong> \u2014 provided such losses are not attributable to dishonesty or negligence. <span class=\"tag-amber\">\u2b50 5 per 1,000 = reasonable<\/span><\/span><\/li>\n <li><span class=\"bi\">\ud83d\udd0d<\/span><span>However, <strong>loss of a book of value exceeding \u20b91,000<\/strong> and <strong>rare books irrespective of value<\/strong> shall <strong>invariably be investigated<\/strong> and appropriate action taken. <span class=\"tag-red\">\u2757 \u20b91,000 threshold<\/span><\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch7r216\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 216<\/span>\n <span class=\"rule-title\">Transfer of Charge of Goods and Materials<\/span>\n <\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udd04<\/span><span>In case of <strong>transfer of Officer-in-charge of the goods, materials, etc.<\/strong>, the transferred officer shall see that the goods or materials are <strong>made over correctly to his successor<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccb<\/span><span>A <strong>statement giving all relevant details<\/strong> of the goods\/materials in question shall be <strong>prepared and signed with date by both the relieving officer and the relieved officer<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcc4<\/span><span><strong>Each of these officers will retain a copy<\/strong> of the signed statement.<\/span><\/li>\n <\/ul>\n <\/div>\n\n \n <div style=\"background:#f0faf5;border-left:5px solid #2aab6e;padding:10px 18px;border-radius:0 6px 6px 0;margin:44px 0 10px;font-weight:700;color:#1a6b5a;font-size:14px;letter-spacing:.04em;text-transform:uppercase\">Disposal of Goods and Write-off \u2014 Rules 217\u2013223<\/div>\n\n \n <div class=\"rule-div\" style=\"margin-top:8px\"><\/div>\n <div class=\"rule-block\" id=\"ch7r217\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 217<\/span>\n <span class=\"rule-title\">Disposal of Goods \u2014 Declaration and Process<\/span>\n <\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccb<\/span><span><strong>(i)<\/strong> An item may be declared <strong>surplus or obsolete or unserviceable<\/strong> if it is of no use to the Ministry or Department. <strong>Reasons for declaring<\/strong> the item surplus\/obsolete\/unserviceable should be <strong>recorded by the authority competent to purchase<\/strong> the item.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udc65<\/span><span><strong>(ii)<\/strong> The competent authority may constitute a <strong>committee at appropriate level<\/strong> to declare items as surplus\/obsolete\/unserviceable.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcb0<\/span><span><strong>(iii)<\/strong> The <strong>book value, guiding price and reserved price<\/strong> should be worked out before disposal. Where book value is not possible to work out, the <strong>original purchase price<\/strong> may be utilised. A report of stores for disposal shall be prepared in <strong>Form GFR-10<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\u2696\ufe0f<\/span><span><strong>(iv)<\/strong> If an item becomes unserviceable due to <strong>negligence, fraud or mischief<\/strong> on the part of a government servant, <strong>responsibility for the same should be fixed<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\u2620\ufe0f<\/span><span><strong>(v)<\/strong> <strong>Hazardous waste\/Scrap Batteries\/E-waste:<\/strong> Scrap lots comprising hazardous waste, batteries, etc. shall be sold keeping in view the guidelines of the <strong>Ministry of Environment & Forest<\/strong>. Prospective bidders must hold <strong>valid registration as recycler\/preprocessor agency<\/strong> on the date of e-Auction and delivery.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch7r218\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 218<\/span>\n <span class=\"rule-title\">Modes of Disposal \u2014 Based on Residual Value<\/span>\n <\/div>\n <div class=\"box-blue\">\n <div class=\"box-blue-lbl\">\u2b50 Disposal Mode Decision Chart<\/div>\n <table style=\"width:100%;border-collapse:collapse;font-size:14px;margin-top:6px\">\n <thead>\n <tr style=\"background:#1a3a6b;color:#fff\">\n <th style=\"padding:8px 12px;text-align:left\">Residual Value<\/th>\n <th style=\"padding:8px 12px;text-align:left\">Mode of Disposal<\/th>\n <\/tr>\n <\/thead>\n <tbody>\n <tr style=\"background:#f0f6ff;border-bottom:1px solid #d0dcef\">\n <td style=\"padding:8px 12px\"><strong>Above \u20b94 lakh<\/strong><\/td>\n <td style=\"padding:8px 12px\">Advertised tender <strong>OR<\/strong> Public auction (mandatory)<\/td>\n <\/tr>\n <tr style=\"background:#e8f0ff;border-bottom:1px solid #d0dcef\">\n <td style=\"padding:8px 12px\"><strong>Below \u20b94 lakh<\/strong><\/td>\n <td style=\"padding:8px 12px\">Mode determined by competent authority (to avoid accumulation & deterioration)<\/td>\n <\/tr>\n <tr style=\"background:#fff0f0;border-bottom:1px solid #d0dcef\">\n <td style=\"padding:8px 12px\"><strong>Hazardous \/ expired items<\/strong><br><small>(expired medicines, food grain, ammunition)<\/small><\/td>\n <td style=\"padding:8px 12px\"><span class=\"tag-red\">\u26a0\ufe0f Dispose \/ Destroy immediately<\/span> \u2014 to avoid health hazard, environmental pollution and misuse<\/td>\n <\/tr>\n <tr style=\"background:#fff8e8\">\n <td style=\"padding:8px 12px\"><strong>Security-sensitive items<\/strong><br><small>(currency, stamps, receipt books, negotiable instruments)<\/small><\/td>\n <td style=\"padding:8px 12px\">Dispose \/ Destroy per <strong>official secrets rules<\/strong> and financial prudence<\/td>\n <\/tr>\n <\/tbody>\n <\/table>\n <\/div>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch7r219\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 219<\/span>\n <span class=\"rule-title\">Disposal through Advertised Tender<\/span>\n <\/div>\n <div class=\"sec-h\">Eight Steps of the Process<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">1\ufe0f\u20e3<\/span><span>Preparation of bidding documents<\/span><\/li>\n <li><span class=\"bi\">2\ufe0f\u20e3<\/span><span>Invitation of tender for the surplus goods to be sold<\/span><\/li>\n <li><span class=\"bi\">3\ufe0f\u20e3<\/span><span>Opening of bids<\/span><\/li>\n <li><span class=\"bi\">4\ufe0f\u20e3<\/span><span>Analysis and evaluation of bids received<\/span><\/li>\n <li><span class=\"bi\">5\ufe0f\u20e3<\/span><span>Selection of highest responsive bidder<\/span><\/li>\n <li><span class=\"bi\">6\ufe0f\u20e3<\/span><span>Collection of sale value from the selected bidder<\/span><\/li>\n <li><span class=\"bi\">7\ufe0f\u20e3<\/span><span>Issue of sale release order to the selected bidder<\/span><\/li>\n <li><span class=\"bi\">8\ufe0f\u20e3<\/span><span>Release of sold surplus goods to the selected bidder \u00b7 Return of bid security to unsuccessful bidders<\/span><\/li>\n <\/ul>\n <div class=\"sec-h\">Key Conditions<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udce3<\/span><span><strong>Transparency, competition, fairness, elimination of discretion<\/strong> are the basic principles. Wide publicity of the sale plan is mandatory.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udd0d<\/span><span>Bidding documents must indicate the <strong>location and present condition<\/strong> of goods so bidders can inspect before bidding.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcb0<\/span><span><strong>Bid security = ordinarily 10%<\/strong> of the assessed or reserved price. The exact amount must be stated in the bidding document. <span class=\"tag-red\">\u2757 10% bid security<\/span><\/span><\/li>\n <li><span class=\"bi\">\ud83c\udfc6<\/span><span><strong>Highest acceptable responsive bidder<\/strong> shall normally be accepted. Negotiation is permissible <strong>only with that bidder<\/strong>. If negotiation fails, the reasonable price may be counter-offered to the next highest responsive bidder(s).<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udce6<\/span><span>If the total quantity cannot be taken by the highest acceptable bidder, the <strong>remaining quantity may be offered to the next higher bidder(s) at the price offered by the highest acceptable bidder<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcb3<\/span><span><strong>Full payment<\/strong> (residual amount after adjusting bid security) shall be obtained from the successful bidder <strong>before releasing the goods<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\u26a0\ufe0f<\/span><span><strong>Default by selected bidder:<\/strong> <strong>Bid security shall be forfeited<\/strong> and the goods re-sold at the <strong>risk and cost of the defaulter<\/strong> after obtaining legal advice.<\/span><\/li>\n <li><span class=\"bi\">\u23f0<\/span><span><strong>Late bids<\/strong> i.e. bids received after the specified date and time of receipt <strong>shall not be considered<\/strong>.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch7r220\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 220<\/span>\n <span class=\"rule-title\">Disposal through Auction<\/span>\n <\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udd28<\/span><span>A Ministry or Department may undertake auction of goods either <strong>directly or through approved auctioneers<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udce3<\/span><span>The basic principles are the same as for advertised tender \u2014 <strong>transparency, competition, fairness and elimination of discretion<\/strong>. The auction plan must be <strong>widely publicised<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83c\udfa4<\/span><span>At the start of the auction, the <strong>condition and location of goods, terms and conditions of sale shall be announced again<\/strong> for the benefit of assembled bidders.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcb0<\/span><span>On acceptance of a bid, <strong>earnest money of not less than 25% of the bid value<\/strong> shall be taken <strong>immediately on the spot<\/strong> from the successful bidder \u2014 in cash or by <strong>Deposit-at-Call-Receipt (DACR)<\/strong> in favour of the Ministry\/Department. <span class=\"tag-red\">\u2757 25% earnest money at auction<\/span><\/span><\/li>\n <li><span class=\"bi\">\ud83d\udce6<\/span><span>Goods shall be <strong>handed over to the successful bidder only after receiving the balance payment<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udc65<\/span><span>The composition of the auction team shall be decided by the competent authority. The team must include an <strong>officer of the Internal Finance Wing<\/strong> of the department. <span class=\"tag-amber\">\u2b50 IFW officer mandatory<\/span><\/span><\/li>\n <\/ul>\n <div class=\"box-amber\">\n <div class=\"box-amber-lbl\">\u2b50 Advertised Tender vs Auction \u2014 Key Numbers<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>Advertised Tender:<\/strong> Bid security = <strong>10%<\/strong> of assessed\/reserved price<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>Auction:<\/strong> Earnest money = <strong>\u2265 25%<\/strong> of bid value, collected on the spot<\/span><\/li>\n <\/ul>\n <\/div>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch7r221\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 221<\/span>\n <span class=\"rule-title\">Disposal at Scrap Value or Other Modes<\/span>\n <\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\uddd1\ufe0f<\/span><span>If a Ministry or Department is unable to sell any surplus\/obsolete\/unserviceable item despite attempts through <strong>both advertised tender and auction<\/strong>, it may dispose of the same at its <strong>scrap value with the approval of the competent authority in consultation with Finance division<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\u267b\ufe0f<\/span><span>If unable to sell even at scrap value, it may adopt <strong>any other mode of disposal including destruction of the item in an eco-friendly manner<\/strong>.<\/span><\/li>\n <\/ul>\n <div class=\"box-blue\">\n <div class=\"box-blue-lbl\">\ud83d\udccc Disposal Escalation Sequence<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">1\ufe0f\u20e3<\/span><span><strong>Advertised Tender \/ Auction<\/strong> (if residual value > \u20b94 lakh) \u2192 R.218\u2013220<\/span><\/li>\n <li><span class=\"bi\">2\ufe0f\u20e3<\/span><span>If both fail \u2192 <strong>Scrap value<\/strong> with competent authority approval + Finance concurrence \u2192 R.221<\/span><\/li>\n <li><span class=\"bi\">3\ufe0f\u20e3<\/span><span>If still unsold \u2192 <strong>Any other mode including eco-friendly destruction<\/strong> \u2192 R.221<\/span><\/li>\n <\/ul>\n <\/div>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch7r222\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 222<\/span>\n <span class=\"rule-title\">Sale Account<\/span>\n <\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccb<\/span><span>A <strong>sale account should be prepared for goods disposed of in Form GFR-11<\/strong>, duly signed by the officer who supervised the sale or auction.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch7r223\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 223<\/span>\n <span class=\"rule-title\">Write-off of Losses \u2014 Powers and Classification<\/span>\n <\/div>\n <div class=\"sec-h\">Sub-rule (1) \u2014 Formal Sanction is Always Required<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccb<\/span><span>All profits and losses due to revaluation, stock-taking or other causes shall be <strong>duly recorded and adjusted<\/strong> where necessary.<\/span><\/li>\n <li><span class=\"bi\">\u26a0\ufe0f<\/span><span><strong>Formal sanction of the competent authority<\/strong> shall be obtained in respect of losses, <strong>even though no formal correction or adjustment in Government accounts is involved<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcdc<\/span><span>Powers to write off losses are available under the <strong>Delegation of Financial Powers Rules (DFPR)<\/strong>.<\/span><\/li>\n <\/ul>\n\n <div class=\"sec-h\">Sub-rule (2) \u2014 Losses Due to Depreciation: 4 Heads<\/div>\n <div class=\"box-blue\">\n <div class=\"box-blue-lbl\">\ud83d\udccb Losses Due to Depreciation<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">1\ufe0f\u20e3<\/span><span><strong>Normal fluctuation of market prices<\/strong><\/span><\/li>\n <li><span class=\"bi\">2\ufe0f\u20e3<\/span><span><strong>Normal wear and tear<\/strong><\/span><\/li>\n <li><span class=\"bi\">3\ufe0f\u20e3<\/span><span><strong>Lack of foresight in regulating purchases<\/strong><\/span><\/li>\n <li><span class=\"bi\">4\ufe0f\u20e3<\/span><span><strong>Negligence after purchase<\/strong><\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"sec-h\">Sub-rule (3) \u2014 Losses NOT Due to Depreciation: 5 Heads<\/div>\n <div class=\"box-green\">\n <div class=\"box-green-lbl\">\ud83d\udccb Losses Not Due to Depreciation<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">1\ufe0f\u20e3<\/span><span><strong>Losses due to theft or fraud<\/strong><\/span><\/li>\n <li><span class=\"bi\">2\ufe0f\u20e3<\/span><span><strong>Losses due to neglect<\/strong><\/span><\/li>\n <li><span class=\"bi\">3\ufe0f\u20e3<\/span><span><strong>Anticipated losses on account of obsolescence<\/strong> of stores or purchases in excess of requirements<\/span><\/li>\n <li><span class=\"bi\">4\ufe0f\u20e3<\/span><span><strong>Losses due to damage<\/strong><\/span><\/li>\n <li><span class=\"bi\">5\ufe0f\u20e3<\/span><span><strong>Losses due to extraordinary situations<\/strong> under <strong>'Force Majeure'<\/strong> conditions \u2014 fire, flood, enemy action, etc.<\/span><\/li>\n <\/ul>\n <\/div>\n <\/div>\n\n <div class=\"box-amber\" style=\"margin-top:36px\">\n <div class=\"box-amber-lbl\">\u2b50 Numbers to Remember \u2014 Chapter 7<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>GFR-22<\/strong> \u2014 Fixed Assets \u00b7 <strong>GFR-23<\/strong> \u2014 Consumables \u00b7 <strong>GFR-18<\/strong> \u2014 Library Books \u00b7 <strong>GFR-24<\/strong> \u2014 Historical\/Artistic Assets (R.211)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>At least once a year<\/strong> \u2014 Physical verification of fixed assets and consumables (R.213)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>> 1 year in stock<\/strong> \u2014 Generally treated as surplus (R.214)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>Library books<\/strong> \u2014 \u226420,000: yearly \u00b7 20,001\u201350,000: once in 3 years \u00b7 >50,000: sample every 3 years (R.215)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>5 per 1,000 volumes issued<\/strong> \u2014 Reasonable loss in libraries \u00b7 Book >\u20b91,000 or rare book \u2192 investigate (R.215)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>\u20b94 lakh threshold<\/strong> \u2014 Above \u2192 advertised tender or auction mandatory \u00b7 Below \u2192 competent authority decides (R.218)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>Bid security = 10%<\/strong> of assessed\/reserved price (advertised tender) (R.219)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>Earnest money \u2265 25%<\/strong> of bid value collected on the spot (auction) (R.220)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>GFR-10<\/strong> \u2014 Report of stores for disposal \u00b7 <strong>GFR-11<\/strong> \u2014 Sale account (R.217, R.222)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>IFW officer mandatory<\/strong> in auction team (R.220)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>4 heads<\/strong> of depreciation losses \u00b7 <strong>5 heads<\/strong> of non-depreciation losses (R.223)<\/span><\/li>\n <\/ul>\n <\/div>\n <\/div>\n\n <div id=\"ch8\" class=\"ch-block\">\n\n <div class=\"ch-banner\">\n <div class=\"ch-num\">Chapter 8<\/div>\n <div class=\"ch-title\">Contract Management<\/div>\n <div class=\"ch-range\">Rules 224 to 227A \u00b7 Authority \u00b7 General Principles \u00b7 Management \u00b7 Disputes & Arbitration<\/div>\n <\/div>\n\n \n <div class=\"idx-outer\">\n <div class=\"idx-lbl\">Rules at a Glance<\/div>\n <table class=\"idx-table\">\n <thead><tr><th style=\"width:110px\">Rule No.<\/th><th>Rule Title<\/th><th>Key Point<\/th><\/tr><\/thead>\n <tbody>\n <tr><td class=\"r-num\">Rule 224<\/td><td class=\"r-title\">Authority to Make Contracts<\/td><td class=\"r-key\">Art.299(1) \u00b7 Empowered by or under orders of the President \u00b7 Executed \"for and on behalf of the President of India\" \u00b7 Powers under DFPR Rule 11<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 225<\/td><td class=\"r-title\">General Principles for Contracts (19 sub-clauses)<\/td><td class=\"r-key\">Precise terms \u00b7 Standard forms \u00b7 Legal & financial advice \u00b7 Purchase orders \u2264\u20b92.5L \u00b7 Contract document for works\/purchases \u2265\u20b910L \u00b7 Execution within 21 days of LoA \u00b7 Cost plus to be avoided \u00b7 Price variation only for delivery >18 months \u00b7 LD clause mandatory \u00b7 Warranty clause mandatory \u00b7 No claim after 3 years \u00b7 Copies of contracts \u2265\u20b925L to Audit\/Accounts<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 226<\/td><td class=\"r-title\">Management of Contracts<\/td><td class=\"r-key\">Strict monitoring \u00b7 Prompt notices on breach \u00b7 Monthly review of BGs expiring in 3 months \u00b7 Extensions of BGs sought immediately<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 227<\/td><td class=\"r-title\">Legal Advice on Disputes<\/td><td class=\"r-key\">Legal advice before conciliation\/arbitration\/suit \u00b7 Draft plaint vetted by legal & financial advice \u00b7 Documents scrutinised to safeguard Govt. interest<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 227A<\/td><td class=\"r-title\">Arbitration Awards<\/td><td class=\"r-key\">If award challenged \u2192 Ministry pays 75% of award against Bank Guarantee \u00b7 May be into Escrow Account \u00b7 Used first for lenders' dues, then project completion, then other projects<\/td><\/tr>\n <\/tbody>\n <\/table>\n <\/div>\n\n \n <div style=\"background:#f0f4ff;border-left:5px solid #1a3a6b;padding:10px 18px;border-radius:0 6px 6px 0;margin:10px 0;font-weight:700;color:#1a3a6b;font-size:14px;letter-spacing:.04em;text-transform:uppercase\">Authority to Contract \u2014 Rule 224<\/div>\n\n \n <div class=\"rule-block\" id=\"ch8r224\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 224<\/span>\n <span class=\"rule-title\">Authority to Make Contracts \u2014 Article 299(1)<\/span>\n <\/div>\n <div class=\"sec-h\">Sub-rule (1) \u2014 Empowered Authority<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\u2696\ufe0f<\/span><span>All contracts shall be made by an authority <strong>empowered to do so by or under the orders of the President<\/strong> in terms of <strong>Article 299(1)<\/strong> of the Constitution of India.<\/span><\/li>\n <\/ul>\n <div class=\"sec-h\">Sub-rule (2) \u2014 Execution on Behalf of the President<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83c\udfdb\ufe0f<\/span><span>All contracts and assurances of property made in the exercise of the <strong>executive power of the Union<\/strong> shall be executed <strong>on behalf of the President<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcdd<\/span><span>The words <strong>\"for and on behalf of the President of India\"<\/strong> should follow the designation appended below the signature of the authorised officer. <span class=\"tag-red\">\u2757 Exact wording required<\/span><\/span><\/li>\n <\/ul>\n <div class=\"box-blue\">\n <div class=\"box-blue-lbl\">\ud83d\udccc Constitutional & Legal Basis<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\u2696\ufe0f<\/span><span><strong>Article 299(1):<\/strong> All contracts made in exercise of executive power of the Union shall be expressed to be made by the President and executed by persons authorised by the President.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcdc<\/span><span>Classes of contracts and assurances of property are specified in <strong>Notifications issued by the Ministry of Law<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccb<\/span><span>Powers, conditions and general procedure are laid down in <strong>Rule 11 of the DFPR<\/strong>.<\/span><\/li>\n <\/ul>\n <\/div>\n <\/div>\n\n \n <div style=\"background:#e8f0ff;border-left:5px solid #1a3a6b;padding:10px 18px;border-radius:0 6px 6px 0;margin:44px 0 10px;font-weight:700;color:#1a3a6b;font-size:14px;letter-spacing:.04em;text-transform:uppercase\">General Principles for Contracts \u2014 Rule 225<\/div>\n\n \n <div class=\"rule-div\" style=\"margin-top:8px\"><\/div>\n <div class=\"rule-block\" id=\"ch8r225\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 225<\/span>\n <span class=\"rule-title\">General Principles for Contracts \u2014 19 Sub-clauses<\/span>\n <\/div>\n\n <div class=\"sec-h\">(i) Precise and Definite Terms<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccb<\/span><span>The terms of contract must be <strong>precise, definite and without any ambiguities<\/strong>. The terms should <strong>not involve an uncertain or indefinite liability<\/strong>, except in the case of a cost plus contract or where there is a price variation clause.<\/span><\/li>\n <\/ul>\n\n <div class=\"sec-h\">(ii) Standard Forms of Contract<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udcc4<\/span><span><strong>Standard forms of contracts<\/strong> should be adopted wherever possible, with such modifications as are considered necessary for individual contracts. Modifications should be carried out <strong>only after obtaining financial and legal advice<\/strong>.<\/span><\/li>\n <\/ul>\n\n <div class=\"sec-h\">(iii) Legal & Financial Advice for Non-Standard Contracts<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\u2696\ufe0f<\/span><span>Where standard forms are not used, <strong>legal and financial advice should be taken in drafting the clauses<\/strong>.<\/span><\/li>\n <\/ul>\n\n <div class=\"sec-h\">(iv) Type of Contract Document Based on Value<\/div>\n <div class=\"box-blue\">\n <div class=\"box-blue-lbl\">\u2b50 Contract Document Requirements by Value<\/div>\n <table style=\"width:100%;border-collapse:collapse;font-size:14px;margin-top:6px\">\n <thead>\n <tr style=\"background:#1a3a6b;color:#fff\">\n <th style=\"padding:8px 12px;text-align:left\">Value \/ Type<\/th>\n <th style=\"padding:8px 12px;text-align:left\">Document Required<\/th>\n <\/tr>\n <\/thead>\n <tbody>\n <tr style=\"background:#f0f6ff;border-bottom:1px solid #d0dcef\">\n <td style=\"padding:8px 12px\">Purchases <strong>\u2264 \u20b92.5 lakh<\/strong><\/td>\n <td style=\"padding:8px 12px\">Simple <strong>Purchase Order<\/strong> with basic terms and conditions<\/td>\n <\/tr>\n <tr style=\"background:#e8f0ff;border-bottom:1px solid #d0dcef\">\n <td style=\"padding:8px 12px\">Works contracts or Purchases <strong>\u20b91 lakh \u2013 \u20b910 lakhs<\/strong> (with GCC + SCC in tender docs)<\/td>\n <td style=\"padding:8px 12px\"><strong>Letter of Acceptance<\/strong> creates binding contract<\/td>\n <\/tr>\n <tr style=\"background:#f0f6ff;border-bottom:1px solid #d0dcef\">\n <td style=\"padding:8px 12px\">Works <strong>\u2265 \u20b910 lakhs<\/strong> or Purchases <strong>> \u20b910 lakhs<\/strong><\/td>\n <td style=\"padding:8px 12px\">Full <strong>Contract Document<\/strong> with all necessary clauses (self-contained) \u00b7 Or simple one-page contract attaching GCC, SCC, specifications, offer, LoA<\/td>\n <\/tr>\n <tr style=\"background:#e8f0ff\">\n <td style=\"padding:8px 12px\">Turnkey works \/ Maintenance agreements \/ Service provision<\/td>\n <td style=\"padding:8px 12px\">Contract document <strong>invariably executed<\/strong><\/td>\n <\/tr>\n <\/tbody>\n <\/table>\n <\/div>\n\n <div class=\"sec-h\">(v) No Work without Agreement<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\u26d4<\/span><span>No work of any kind should be commenced <strong>without proper execution of an agreement<\/strong> as given in the foregoing provisions.<\/span><\/li>\n <\/ul>\n\n <div class=\"sec-h\">(vi) Execution Within 21 Days of Letter of Acceptance<\/div>\n <div class=\"box-red\">\n <span style=\"font-size:18px;flex-shrink:0;margin-top:2px\">\u26a0\ufe0f<\/span>\n <span>Contract document shall be executed <strong>within 21 days of the issue of letter of acceptance<\/strong>. Non-fulfilment of this condition by the Contractor or Supplier constitutes sufficient ground for <strong>annulment of the award and forfeiture of Earnest Money Deposit<\/strong>. <span class=\"tag-red\">\u2757 21 days<\/span><\/span>\n <\/div>\n\n <div class=\"sec-h\">(vii) Cost Plus Contracts \u2014 To Be Avoided<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\u26d4<\/span><span><strong>Cost plus contracts should ordinarily be avoided.<\/strong> Where unavoidable, <strong>full justification shall be recorded<\/strong> before entering into the contract.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udd04<\/span><span>Where such contracts continue over a long duration, efforts should be made to <strong>convert future contracts to a firm price basis<\/strong> after allowing a reasonable period for the supplier\/contractor to stabilise their production\/execution methods.<\/span><\/li>\n <\/ul>\n <div class=\"box-green\">\n <div class=\"box-green-lbl\">\ud83d\udccc Definition \u2014 Cost Plus Contract<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udca1<\/span><span>A contract in which the price payable is determined on the basis of <strong>actual cost of production + profit<\/strong> \u2014 either at a fixed rate per unit or at a fixed percentage on actual cost of production.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"sec-h\">(viii) Price Variation Clause (PVC) \u2014 11 Sub-conditions<\/div>\n <div class=\"box-amber\">\n <div class=\"box-amber-lbl\">\u2b50 Price Variation Clause \u2014 Key Rules<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udcc5<\/span><span><strong>(a)<\/strong> PVC can be provided <strong>only in long-term contracts where the delivery period extends beyond 18 months<\/strong>. Short-term contracts must have firm and fixed prices. <span class=\"tag-red\">\u2757 >18 months only<\/span><\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcca<\/span><span><strong>(a)<\/strong> The price agreed upon should specify the <strong>base level (month and year)<\/strong> to which the price is linked, to enable calculation of variations.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcd0<\/span><span><strong>(b)<\/strong> A formula for calculation of price variations between the Base Level and Scheduled Delivery Date should be included. Variations are calculated using <strong>indices published by Governments or Chambers of Commerce<\/strong> (Appendix-11).<\/span><\/li>\n <li><span class=\"bi\">\u2702\ufe0f<\/span><span><strong>(c)<\/strong> PVC should specify <strong>cut-off dates for material and labour<\/strong>, as these taper off well before Scheduled Delivery Dates.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udd12<\/span><span><strong>(d)<\/strong> PVC should provide for a <strong>ceiling on price variations<\/strong> \u2014 either a percentage per annum, an overall ceiling, or both. Buyer must ensure benefit of any price <strong>reduction<\/strong> is also passed on.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccf<\/span><span><strong>(e)<\/strong> PVC should stipulate a <strong>minimum percentage<\/strong> of variation above which price adjustments are admissible (e.g., if increase is below 2%, no price adjustment in favour of supplier).<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcb3<\/span><span><strong>(f)<\/strong> Where advance or stage payments are made, <strong>no price variations will be admissible on such portions after the dates of such payment<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\u2696\ufe0f<\/span><span><strong>(g)<\/strong> Where deliveries are accepted beyond Scheduled Delivery Date subject to liquidated damages, LD (if a percentage of price) will be applicable on the <strong>price as varied by the PVC<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\u26d4<\/span><span><strong>(h)<\/strong> <strong>No price variation admissible beyond the original Scheduled Delivery Date for defaults on the part of the supplier<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\u2705<\/span><span><strong>(i)<\/strong> Price variation may be allowed beyond the original Scheduled Delivery Date <strong>only by formal amendment to the contract<\/strong> in cases of <strong>Force Majeure<\/strong> or <strong>defaults by Government<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83c\udf10<\/span><span><strong>(j)<\/strong> For imported goods (subject to customs duty and foreign exchange fluctuations), the <strong>percentage of duties and taxes<\/strong> included in the price and the <strong>selling rate of foreign exchange<\/strong> taken into account should be specifically stated. Mode of calculation and documents to be produced in support of claims should also be stipulated.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcb0<\/span><span><strong>(k)<\/strong> The clause should contain the <strong>mode and terms of payment of the price variation admissible<\/strong>.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"sec-h\">(ix) Taxes<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udcb0<\/span><span>Contracts should include provision for <strong>payment of all applicable taxes by the contractor or supplier<\/strong>.<\/span><\/li>\n <\/ul>\n\n <div class=\"sec-h\">(x) Lump Sum Contracts \u2014 To Be Avoided<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\u26d4<\/span><span><strong>Lump sum contracts should not be entered into except in cases of absolute necessity.<\/strong> Where unavoidable, <strong>full justification shall be recorded<\/strong>. The contracting authority should ensure adequate safeguards for Government interest.<\/span><\/li>\n <\/ul>\n\n <div class=\"sec-h\">(xi) Departmental Issue of Materials<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\u26d4<\/span><span><strong>Departmental issue of materials should be avoided as far as possible.<\/strong> Where decided, a <strong>schedule of quantities with issue rates<\/strong> of such material should form an essential part of the contract.<\/span><\/li>\n <\/ul>\n\n <div class=\"sec-h\">(xii) Government Property Entrusted to Contractor<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udd12<\/span><span><strong>(a)<\/strong> Where Government property is entrusted to a contractor (for use on payment of hire charges or for further work on such property), the contract must include specific provision for:\n <ul class=\"blist-sub\">\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span><strong>Safeguarding Government property<\/strong> (including insurance cover)<\/span><\/li>\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span><strong>Recovery of hire charges regularly<\/strong><\/span><\/li>\n <\/ul>\n <\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccb<\/span><span><strong>(b)<\/strong> Provision shall be made for <strong>periodical physical verification<\/strong> of the number and physical condition of the items at the contractor's premises. Results shall be recorded and penal action taken where necessary.<\/span><\/li>\n <\/ul>\n\n <div class=\"sec-h\">(xiii) Copies of Contracts to Audit \/ Accounts Officer<\/div>\n <div class=\"box-red\">\n <span style=\"font-size:18px;flex-shrink:0;margin-top:2px\">\u26a0\ufe0f<\/span>\n <span>Copies of all contracts and agreements for purchases of the value of <strong>\u20b925 lakhs and above<\/strong> entered into by civil departments of the Government should be sent to the <strong>Audit Officer and\/or Accounts Officer<\/strong> as the case may be. <span class=\"tag-red\">\u2757 \u20b925 lakh threshold<\/span><\/span>\n <\/div>\n\n <div class=\"sec-h\">(xiv) No Material Variation of Contract Terms<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\u26d4<\/span><span><strong>(a)<\/strong> The terms of a contract \u2014 including the scope and specification \u2014 once entered into, should <strong>not be materially varied<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccb<\/span><span><strong>(b)<\/strong> Where material variation becomes unavoidable, the <strong>financial and other effects shall be examined, recorded<\/strong> and <strong>specific approval of the authority competent to approve the revised commitments<\/strong> shall be obtained before varying the conditions.<\/span><\/li>\n <li><span class=\"bi\">\u270d\ufe0f<\/span><span><strong>(c)<\/strong> All such changes should be in the form of a <strong>formal amendment to the contract duly signed by all parties<\/strong>.<\/span><\/li>\n <\/ul>\n\n <div class=\"sec-h\">(xv) Extensions of Delivery \/ Completion Dates<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udcc5<\/span><span>Normally <strong>no extensions<\/strong> of scheduled delivery or completion dates shall be granted except where <strong>Force Majeure<\/strong> events have occurred or the contract itself contains such a provision. Extensions shall be allowed through <strong>formal amendments<\/strong> to the contract duly signed by the parties.<\/span><\/li>\n <\/ul>\n\n <div class=\"sec-h\">(xvi) Liquidated Damages (LD) Clause \u2014 Mandatory<\/div>\n <div class=\"box-red\">\n <span style=\"font-size:18px;flex-shrink:0;margin-top:2px\">\u26a0\ufe0f<\/span>\n <span><strong>All contracts shall contain a provision for recovery of liquidated damages for defaults on the part of the contractor.<\/strong> Exemption from such provision can be made only in exceptional circumstances, to be <strong>justified by the procuring entity in writing<\/strong>.<\/span>\n <\/div>\n\n <div class=\"sec-h\">(xvii) Warranty Clause \u2014 Mandatory<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udd27<\/span><span>A <strong>warranty clause should be incorporated in every contract<\/strong>, requiring the supplier to \u2014 without charge \u2014 <strong>repair or rectify defective goods or replace such goods<\/strong> with similar goods free from defect. Any goods repaired or replaced shall be <strong>delivered at the buyer's premises without costs to the buyer<\/strong>.<\/span><\/li>\n <\/ul>\n\n <div class=\"sec-h\">(xviii) Right to Reject Non-Conforming Goods<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\u26d4<\/span><span>All contracts for supply of goods should <strong>reserve the right of Government to reject goods which do not conform to the specifications<\/strong>.<\/span><\/li>\n <\/ul>\n\n <div class=\"sec-h\">(xix) Time Limit for Claims \u2014 3 Years<\/div>\n <div class=\"box-amber\">\n <div class=\"box-amber-lbl\">\u2b50 Limitation Period for Contractor's Claims<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\u23f0<\/span><span>No claim for payment from the contractor shall be entertained after the lapse of <strong>three years of arising of the claim<\/strong>. <span class=\"tag-red\">\u2757 3-year limit<\/span><\/span><\/li>\n <\/ul>\n <\/div>\n <\/div>\n\n \n <div style=\"background:#f0faf5;border-left:5px solid #2aab6e;padding:10px 18px;border-radius:0 6px 6px 0;margin:44px 0 10px;font-weight:700;color:#1a6b5a;font-size:14px;letter-spacing:.04em;text-transform:uppercase\">Contract Management, Disputes and Arbitration \u2014 Rules 226\u2013227A<\/div>\n\n \n <div class=\"rule-div\" style=\"margin-top:8px\"><\/div>\n <div class=\"rule-block\" id=\"ch8r226\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 226<\/span>\n <span class=\"rule-title\">Management of Contracts<\/span>\n <\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udc40<\/span><span><strong>(i)<\/strong> Implementation of the contract should be <strong>strictly monitored<\/strong> and <strong>notices issued promptly<\/strong> whenever a breach of provisions occurs.<\/span><\/li>\n <li><span class=\"bi\">\ud83c\udfe6<\/span><span><strong>(ii)<\/strong> Proper procedure for <strong>safe custody and monitoring of Bank Guarantees (BGs)<\/strong> or other instruments should be laid down. Monitoring should include:\n <ul class=\"blist-sub\">\n <li><span class=\"bsi\">\ud83d\udcc5<\/span><span>A <strong>monthly review of all BGs or other instruments expiring after three months<\/strong>, along with a review of the progress of supply or work. <span class=\"tag-red\">\u2757 Monthly review of BGs expiring in 3 months<\/span><\/span><\/li>\n <li><span class=\"bsi\">\u26a1<\/span><span>Extensions of BGs or other instruments, where warranted, should be <strong>sought immediately<\/strong>.<\/span><\/li>\n <\/ul>\n <\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch8r227\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 227<\/span>\n <span class=\"rule-title\">Legal Advice in Disputes<\/span>\n <\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\u2696\ufe0f<\/span><span>Wherever <strong>disputes arise during implementation of a contract<\/strong>, <strong>legal advice should be sought before<\/strong>:\n <ul class=\"blist-sub\">\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span>Initiating action to refer the dispute to <strong>conciliation and\/or arbitration<\/strong> as provided in the contract, or<\/span><\/li>\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span>Filing a <strong>suit<\/strong> where the contract does not include an arbitration clause.<\/span><\/li>\n <\/ul>\n <\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcc4<\/span><span>The <strong>draft of the plaint for arbitration<\/strong> should be got <strong>vetted by obtaining legal and financial advice<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udd0d<\/span><span>Documents to be filed in resolution of disputes should be <strong>carefully scrutinised before filing to safeguard Government interest<\/strong>.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch8r227a\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 227A<\/span>\n <span class=\"rule-title\">Arbitration Awards \u2014 Payment Pending Challenge<\/span>\n <\/div>\n <div class=\"sec-h\">Sub-rule (i) \u2014 75% Payment Against Bank Guarantee<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\u2696\ufe0f<\/span><span>In cases where the Ministry\/Department has <strong>challenged an arbitral award<\/strong> and the amount has therefore not been paid, <strong>75% of the arbitral award<\/strong> (which may include interest up to date of the award) shall be <strong>paid by the Ministry\/Department to the contractor\/concessionaire against a Bank Guarantee<\/strong>. <span class=\"tag-red\">\u2757 75% against BG<\/span><\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>The BG shall <strong>only be for the 75% of the arbitral award<\/strong> \u2014 not for the interest which may become payable to the Ministry\/Department should a subsequent court order require refund of the said amount.<\/span><\/li>\n <\/ul>\n <div class=\"sec-h\">Sub-rule (ii) \u2014 Escrow Account Option<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83c\udfe6<\/span><span>The payment may be made into a <strong>designated Escrow Account<\/strong> with the stipulation that the proceeds will be used in the following priority order:\n <ul class=\"blist-sub\">\n <li><span class=\"bsi\">1\ufe0f\u20e3<\/span><span><strong>Payment of lenders' dues<\/strong><\/span><\/li>\n <li><span class=\"bsi\">2\ufe0f\u20e3<\/span><span><strong>Completion of the project<\/strong><\/span><\/li>\n <li><span class=\"bsi\">3\ufe0f\u20e3<\/span><span><strong>Completion of other projects<\/strong> of the same Ministry\/Department as mutually agreed\/decided<\/span><\/li>\n <\/ul>\n <\/span><\/li>\n <li><span class=\"bi\">\u2705<\/span><span>Any <strong>balance remaining after settlement of lenders' dues and project completion<\/strong> may be allowed to be used by the contractor\/concessionaire with the <strong>prior approval of the lead banker and the Ministry\/Department<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccb<\/span><span>If otherwise eligible and subject to contractual provisions, <strong>retention money and other amounts withheld<\/strong> may also be <strong>released against Bank Guarantee<\/strong>.<\/span><\/li>\n <\/ul>\n <div class=\"box-blue\">\n <div class=\"box-blue-lbl\">\ud83d\udccc Why 75% and Not 100%?<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udca1<\/span><span>Rule 227A strikes a balance between the <strong>contractor's right to receive payment awarded by the arbitrator<\/strong> and the <strong>Government's right to challenge the award in court<\/strong>. The 25% withheld protects Government in case the award is partially or fully set aside. The Bank Guarantee protects the Government's right to recover the 75% if the award is overturned.<\/span><\/li>\n <\/ul>\n <\/div>\n <\/div>\n\n <div class=\"box-amber\" style=\"margin-top:36px\">\n <div class=\"box-amber-lbl\">\u2b50 Numbers to Remember \u2014 Chapter 8<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>Art. 299(1)<\/strong> \u2014 Constitutional authority for contracts \u00b7 \"for and on behalf of the President of India\" (R.224)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>\u2264 \u20b92.5 lakh<\/strong> \u2014 Purchase order sufficient (R.225(iv)(a))<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>\u20b91L\u2013\u20b910L<\/strong> \u2014 Letter of Acceptance = binding contract (with GCC\/SCC) (R.225(iv)(b))<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>\u2265 \u20b910 lakh<\/strong> \u2014 Full contract document required (R.225(iv)(c))<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>21 days<\/strong> \u2014 Contract must be executed after Letter of Acceptance \u00b7 Default \u2192 LoA annulled + EMD forfeited (R.225(vi))<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>> 18 months delivery<\/strong> \u2014 Price Variation Clause permissible only for long-term contracts (R.225(viii)(a))<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>\u20b925 lakh and above<\/strong> \u2014 Copies of contracts sent to Audit\/Accounts Officer (R.225(xiii))<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>3 years<\/strong> \u2014 Time limit for contractor's claims after arising of claim (R.225(xix))<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>Monthly review<\/strong> of BGs expiring in <strong>3 months<\/strong> (R.226)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>75% of arbitral award<\/strong> to be paid against Bank Guarantee when award is challenged (R.227A)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>Escrow Account priority:<\/strong> Lenders' dues \u2192 Project completion \u2192 Other projects (R.227A)<\/span><\/li>\n <\/ul>\n <\/div>\n <\/div>\n\n<div id=\"ch9\" class=\"ch-block\">\n\n <div class=\"ch-banner\">\n <div class=\"ch-num\">Chapter 9<\/div>\n <div class=\"ch-title\">Grants-in-Aid and Loans<\/div>\n <div class=\"ch-range\">Rules 228 to 245 \u00b7 Autonomous Bodies \u00b7 Procedure \u00b7 Utilisation Certificates \u00b7 Audit \u00b7 Performance Reports<\/div>\n <\/div>\n\n \n <div class=\"idx-outer\">\n <div class=\"idx-lbl\">Rules at a Glance \u2014 Chapter 9<\/div>\n <table class=\"idx-table\">\n <thead><tr><th style=\"width:130px\">Rule No.<\/th><th>Subject<\/th><th>Key Point<\/th><\/tr><\/thead>\n <tbody>\n <tr><td class=\"r-num\" colspan=\"3\" style=\"background:#1a3a6b;color:#fff;font-weight:700;letter-spacing:.04em;padding:6px 12px\">I. GRANTS-IN-AID (Rules 228\u2013245)<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 228<\/td><td class=\"r-title\">Who Can Receive Grants-in-Aid \u2014 Six Categories<\/td><td class=\"r-key\">Autonomous Organisations (statute\/society\/trust) \u00b7 Voluntary Orgs\/NGOs \u00b7 Educational institutions (scholarships) \u00b7 Urban\/Rural local self-govt bodies \u00b7 Co-operative societies \u00b7 Govt servants' social\/sports clubs<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 229<\/td><td class=\"r-title\">Principles for Setting Up Autonomous Organisations \u2014 Twelve Guidelines<\/td><td class=\"r-key\">No new autonomous body without Cabinet approval \u00b7 No body-created bodies without appraisal \u00b7 Regional offices with Admin Ministry + MoF concurrence \u00b7 Corpus Fund from budget: MoF prior concurrence \u00b7 User charges reviewed at least once a year \u00b7 MoU mandatory if budgetary support >\u20b95 crore per annum \u00b7 Peer review every 3 or 5 years \u00b7 Findings to be considered before further releases<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 230(1)<\/td><td class=\"r-title\">Procedure for Award of Grants-in-Aid<\/td><td class=\"r-key\">Application with Articles of Association, audited accounts, sources of income\/expenditure \u00b7 Certification: no duplicate grant from other Ministry\/Dept or State Govt<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 230(2)<\/td><td class=\"r-title\">Anti-Duplication List<\/td><td class=\"r-key\">Each Ministry\/Dept to maintain list of grantee institutions with amount and purpose \u00b7 Details to be on website<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 230(3)<\/td><td class=\"r-title\">Viable Schemes Required<\/td><td class=\"r-key\">Grants only on basis of viable, specific schemes with quantified\/qualitative targets \u00b7 CFA (reimbursement basis): no UC required<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 230(4)<\/td><td class=\"r-title\">Recurring vs Non-Recurring Grants<\/td><td class=\"r-key\">Recurring = periodic to same org for same purpose \u00b7 Non-recurring = one-time \u00b7 Every sanction order to specify recurring\/non-recurring, object, conditions, and time limit for spending<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 230(5)<\/td><td class=\"r-title\">Capital and Revenue Accounts<\/td><td class=\"r-key\">Central Autonomous Orgs must account for capital and revenue separately \u00b7 MoF standard formats mandatory<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 230(6)<\/td><td class=\"r-title\">Internal Resources Generation<\/td><td class=\"r-key\">Grants authority should consider setting targets for internal resource generation, especially for recurring grants<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 230(7)<\/td><td class=\"r-title\">Unspent Balances \u2014 Just-in-Time Release<\/td><td class=\"r-key\">Unspent balance from previous grant taken into account before sanctioning subsequent grant \u00b7 PFMS portal used to check bank balance before each release \u00b7 Cash balance preferably not more than 3 months' requirement \u00b7 Just-in-time release principle<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 230(8)<\/td><td class=\"r-title\">Interest Earnings on Grants<\/td><td class=\"r-key\">All interest or other earnings on grants\/advances (other than reimbursement) must be mandatorily remitted to Consolidated Fund of India immediately after finalisation of accounts \u00b7 Not adjustable against future releases<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 230(9)<\/td><td class=\"r-title\">Disposal of Assets Acquired from Grants<\/td><td class=\"r-key\">Assets acquired wholly or substantially from Govt grants shall not be disposed of without prior approval of the grant-sanctioning authority (except assets declared obsolete\/unserviceable\/condemned per GFR)<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 230(10)<\/td><td class=\"r-title\">Instalment Release Conditions<\/td><td class=\"r-key\">Last instalment conditional on reasonable evidence of proper utilisation of earlier instalments \u00b7 CFA: full evidence of objectives + audited statement \u2192 released in one instalment \u00b7 No UC for CFA cases<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 230(11)<\/td><td class=\"r-title\">Budget Estimates Timeline<\/td><td class=\"r-key\">Institutions to submit requirement by end of September of preceding year \u00b7 Ministry to inform outcome by April of succeeding year<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 230(12)<\/td><td class=\"r-title\">Service Conditions of Grantee Employees<\/td><td class=\"r-key\">If >50% recurring expenditure from grants: service terms of employees not higher than Central Govt employees (relaxation with MoF consultation) \u00b7 Should use market pension\/insurance\/loan schemes<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 230(13)<\/td><td class=\"r-title\">Buildings Constructed with Grants<\/td><td class=\"r-key\">Sanctioning authority decides whether ownership vests with Govt or grantee \u00b7 If Govt-owned: grantee occupies as lessee \u00b7 Maintenance responsibility always with grantee<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 230(14)\u2013(16)<\/td><td class=\"r-title\">Miscellaneous Grant Conditions<\/td><td class=\"r-key\">(14) Special conditions incorporated in Articles of Association\/bye-laws before release \u00b7 (15) Grants may cover expenditure incurred not earlier than 2 years prior to date of sanction \u00b7 (16) Refund of unutilised amount with interest to be clearly stated in sanction letter and bond<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 230(17)<\/td><td class=\"r-title\">SC\/ST\/OBC Reservation Clause<\/td><td class=\"r-key\">Mandatory reservation clause for bodies with: >20 regular employees + \u226550% recurring expenditure from Central grants + registered society\/co-operative receiving \u2265\u20b920 lakhs general purpose annual grant from CFI<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 231(1)<\/td><td class=\"r-title\">Grants to Voluntary Organisations<\/td><td class=\"r-key\">Grant for admin expenditure: must not exceed 25% of approved pay and allowances of personnel \u00b7 Private institutions: not ordinarily sanctioned; exceptional cases with Internal Finance Wing concurrence<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 231(2)<\/td><td class=\"r-title\">Execution of Bond<\/td><td class=\"r-key\">Executive Committee members to execute bonds jointly and severally \u00b7 Breach \u2192 refund entire\/part grant with 10% interest per annum \u00b7 Stamp duty borne by Government<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 231(3)<\/td><td class=\"r-title\">Bond Not Required<\/td><td class=\"r-key\">Quasi-Government Institutions \u00b7 Central Autonomous Organisations \u00b7 Institutions whose budget is approved by Govt<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 232<\/td><td class=\"r-title\">Centrally Sponsored Schemes \u2014 Eight Principles<\/td><td class=\"r-key\">Time-bound quantifiable targets \u00b7 Designed in consultation with States \u00b7 Convergence of overlapping schemes \u00b7 Restrict number of schemes \u00b7 PFMS for fund release and monitoring \u00b7 Focus on outcomes not expenditure \u00b7 Concurrent monitoring built into scheme \u00b7 Post-completion review by States with copy to Ministry<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 233<\/td><td class=\"r-title\">Funding of Sponsored Projects (R&D)<\/td><td class=\"r-key\">Projects to Universities\/IITs\/ICAR\/CSIR\/ICMR etc. \u00b7 Funds NOT treated as grants-in-aid by implementing agency \u00b7 Ownership of physical and intellectual assets vests in sponsor \u00b7 On completion: assets returned\/sold\/retained as decided by Ministry \u00b7 Proceeds of sale credited to sponsoring Dept<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 234<\/td><td class=\"r-title\">Register of Grants<\/td><td class=\"r-key\">Register in Form GFR-21 \u00b7 Columns (i)\u2013(v) filled at time of sanction, attested by Gazetted Officer \u00b7 Serial number noted on body of sanction \u00b7 No bill signed unless noted in Register \u00b7 Guards against double payment<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 235<\/td><td class=\"r-title\">Accounts of Grantee Institutions<\/td><td class=\"r-key\">All grantee institutions (irrespective of amount) to maintain subsidiary accounts and furnish audited statements to Accounts Officer after utilisation or whenever called for<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 236(1)<\/td><td class=\"r-title\">Audit \u2014 Open to CAG and Internal Audit<\/td><td class=\"r-key\">Accounts open to sanctioning authority inspection + CAG audit (under CAG DPC Act 1971) + internal audit by Principal Accounts Office \u00b7 Provision to this effect must be in every grant sanction order<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 236(2)<\/td><td class=\"r-title\">CAG Audit Thresholds<\/td><td class=\"r-key\">Section 14: grants\/loans in a FY \u2265\u20b925 lakhs AND \u226575% of total expenditure \u2192 CAG audit mandatory \u00b7 OR grants\/loans \u2265\u20b91 crore \u2192 CAG audit \u00b7 Once CAG audits, continues for 2 further years even if conditions not fulfilled<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 237<\/td><td class=\"r-title\">Time Schedule for Annual Accounts<\/td><td class=\"r-key\">Accounts available for audit: 30th June \u00b7 Final SAR with audit certificate: 31st October \u00b7 Annual Report + Audited Accounts to Nodal Ministry for Parliament: 31st December<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 238(1)<\/td><td class=\"r-title\">Utilisation Certificate \u2014 Non-Recurring Grants<\/td><td class=\"r-key\">Form GFR 12-A \u00b7 Submitted within 12 months of closure of financial year \u00b7 Output-based (not input-based) performance assessment \u00b7 Non-submission \u2192 Ministry may blacklist from future grants\/subsidies<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 238(2)<\/td><td class=\"r-title\">Utilisation Certificate \u2014 Recurring Grants<\/td><td class=\"r-key\">Next FY release only after provisional UC for preceding FY \u00b7 Release exceeding 75% of total sanctioned for next FY only after UC + annual audited statement submitted to satisfaction of Ministry<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 238(3)\u2013(4)<\/td><td class=\"r-title\">UC Exceptions and Special Disclosure<\/td><td class=\"r-key\">(3) UC not required for grants\/CFA on reimbursement basis (audited accounts submitted) \u00b7 (4) Central Autonomous Orgs UC to separately disclose: funds given to stores suppliers, construction agencies, staff loans \u2014 treated as unutilised grants carried forward<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 238(5)\u2013(6)<\/td><td class=\"r-title\">Parliament Reporting Thresholds<\/td><td class=\"r-key\">Recurring: \u20b910L\u2013\u20b950L \u2192 statement in Annual Report \u00b7 \u2265\u20b950L \u2192 Annual Report and Accounts laid on table of Parliament within 9 months \u00b7 Non-recurring: \u20b910L\u2013\u20b95Cr \u2192 statement in Annual Report \u00b7 \u2265\u20b95Cr \u2192 laid on table within 9 months<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 239\u2013241<\/td><td class=\"r-title\">State Govt and DBT Utilisation Certificates<\/td><td class=\"r-key\">R.239: UC in Form GFR 12-C countersigned by Administrative Secretary\/Finance Secretary \u00b7 R.240: State Govt furnishes UC when funds routed through local bodies\/private institutions \u00b7 R.241: DBT schemes \u2014 bank\/NPCI deposit intimation treated as UC<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 242<\/td><td class=\"r-title\">Performance\/Achievement Reports<\/td><td class=\"r-key\">Submitted within 6 months of close of FY \u00b7 Not required for: non-recurring grants (anniversaries, tours, maintenance) \u00b7 For recurring grants \u2264\u20b925 lakhs: sanctioning authority may dispense \u00b7 Autonomous Orgs \u2265\u20b92 crore: laid on Parliament table \u00b7 \u2265\u20b950L recurring \/ \u2265\u20b95Cr non-recurring: full review in Annual Report<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 243<\/td><td class=\"r-title\">Discretionary Grants<\/td><td class=\"r-key\">Regulated by general\/special orders of competent authority \u00b7 Must be non-recurring \u00b7 Must not involve future commitment<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 244<\/td><td class=\"r-title\">Other Grants<\/td><td class=\"r-key\">Grants to States and others not covered by foregoing rules \u2192 under special orders of Government<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 245<\/td><td class=\"r-title\">Grants for Govt Employees' Welfare (Staff Clubs)<\/td><td class=\"r-key\">\u20b950 per head per annum + matching grant up to \u20b925 per head per annum \u00b7 Based on strength as on 31st March of previous FY \u00b7 One-time grant for setting up Recreation Club: \u20b950,000 maximum \u00b7 Accounts audited by Internal Auditor \u2014 submitted by 30th April \u00b7 Staff contingencies\/work-charged excluded from calculation<\/td><\/tr>\n <\/tbody>\n <\/table>\n <\/div>\n\n \n <div style=\"background:#f0f4ff;border-left:5px solid #1a3a6b;padding:10px 18px;border-radius:0 6px 6px 0;margin:10px 0;font-weight:700;color:#1a3a6b;font-size:14px;letter-spacing:.04em;text-transform:uppercase\">Section I \u2014 Eligibility and Autonomous Organisation Principles (Rules 228\u2013229)<\/div>\n\n \n <div class=\"rule-block\" id=\"ch9r228\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 228<\/span><span class=\"rule-title\">Who Can Receive Grants-in-Aid \u2014 Six Categories<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccb<\/span><span>As a general principle, Grants-in-aid can be given to a <strong>person or a public body or an institution having a distinct legal entity<\/strong>. Grants-in-aid including scholarships may be sanctioned by an authority competent to do so under the DFPR to:<\/span><\/li>\n <\/ul>\n <div class=\"box-blue\">\n <div class=\"box-blue-lbl\">\ud83d\udccc Six Categories of Eligible Recipients<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">(a)<\/span><span><strong>Autonomous Organisations<\/strong> set up under a specific statute or as a society registered under the <strong>Societies Registration Act, 1860<\/strong> or <strong>Indian Trusts Act, 1882<\/strong> or other statutes<\/span><\/li>\n <li><span class=\"bi\">(b)<\/span><span><strong>Voluntary Organisations \/ NGOs<\/strong> carrying out activities which promote the welfare schemes and programmes of the Government \u2014 selected on the basis of well-defined criteria regarding financial and other resources, credibility and type of activities undertaken<\/span><\/li>\n <li><span class=\"bi\">(c)<\/span><span><strong>Educational and other institutions<\/strong> by way of <strong>scholarships or stipends<\/strong> to students<\/span><\/li>\n <li><span class=\"bi\">(d)<\/span><span><strong>Urban and Rural local self-government institutions<\/strong><\/span><\/li>\n <li><span class=\"bi\">(e)<\/span><span><strong>Co-operative societies<\/strong><\/span><\/li>\n <li><span class=\"bi\">(f)<\/span><span>Societies or clubs set up by <strong>Government servants<\/strong> to promote amongst themselves <strong>social, cultural and sports activities<\/strong> as recreational avenues<\/span><\/li>\n <\/ul>\n <\/div>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch9r229\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 229<\/span><span class=\"rule-title\">Principles for Setting Up Autonomous Organisations \u2014 Twelve Guidelines<\/span><\/div>\n <div class=\"box-amber\">\n <div class=\"box-amber-lbl\">\u2b50 Twelve Guidelines \u2014 Autonomous Organisations<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">(i)<\/span><span>No new autonomous institution shall be created by Ministries\/Departments without the <strong>approval of the Cabinet<\/strong>. <span class=\"tag-red\">\u2757 Cabinet approval mandatory<\/span><\/span><\/li>\n <li><span class=\"bi\">(ii)<\/span><span>No new autonomous institution shall be created by an <strong>Autonomous Body itself<\/strong> without going through the appraisal\/approval process. However, <strong>Regional Centres\/Offices\/Sub-Stations<\/strong> of any autonomous body may be created with <strong>prior approval of the Administrative Ministry in consultation with MoF<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">(iii)<\/span><span><strong>Stringent criteria<\/strong> to be followed. Ministry shall examine: (a) whether activities are necessary at all; (b) whether they need to be done through a new autonomous body or can be performed by an existing Govt agency or organisation.<\/span><\/li>\n <li><span class=\"bi\">(iv)<\/span><span>All autonomous organisations should be encouraged to <strong>maximise internal resources<\/strong> and eventually <strong>attain self-sufficiency<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">(v)<\/span><span><strong>Corpus Fund<\/strong> from budgetary allocation: requires <strong>prior concurrence of MoF<\/strong>. From internal accruals: requires <strong>approval of the Administrative Ministry<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">(vi)<\/span><span><strong>User charges<\/strong> to be reviewed by the Governing Body <strong>at least once a year<\/strong> and information communicated to the Administrative Ministry \u2014 preferably before formulation of Union Annual Budget. <span class=\"tag-red\">\u2757 At least once a year<\/span><\/span><\/li>\n <li><span class=\"bi\">(vii)<\/span><span>All Autonomous Bodies shall maintain <strong>database relating to grants, income, expenditure, investment, assets and employee strength<\/strong> in format prescribed by DoE, MoF.<\/span><\/li>\n <li><span class=\"bi\">(viii)<\/span><span><strong>Financial advice:<\/strong> Every autonomous organisation shall designate an officer at appropriate level to render financial advice, whose concurrence shall be obtained for sanction and incurring of expenditure. The <strong>CEO of the Autonomous Body is responsible for overall financial management<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">(ix)<\/span><span><strong>Peer review<\/strong> every <strong>3 or 5 years<\/strong> depending on size and nature of activity \u2014 responsibility of the concerned administrative division. Review shall focus on: (a) whether objectives are being achieved \u00b7 (b) whether activities should be continued \u00b7 (c) whether they need to be done by an autonomous body \u00b7 (d) scope for merger\/winding up \u00b7 (e) whether staff complement is at a minimum \u00b7 (f) whether user charges are levied appropriately \u00b7 (g) scope for maximising internal resource generation. <span class=\"tag-red\">\u2757 3 or 5 years<\/span><\/span><\/li>\n <li><span class=\"bi\">(x)<\/span><span>Outstanding internationally acclaimed organisations may be granted <strong>greater autonomy and flexibility<\/strong> in recruitment and financial rules.<\/span><\/li>\n <li><span class=\"bi\">(xi)<\/span><span>Autonomous bodies with budgetary support of <strong>more than \u20b95 crore per annum<\/strong> shall be required to enter into a <strong>Memorandum of Understanding (MoU)<\/strong> with the Administrative Ministry\/Department spelling out performance parameters, output targets in measurable units and commensurate input requirements. <span class=\"tag-red\">\u2757 >\u20b95 crore \u2192 MoU mandatory<\/span><\/span><\/li>\n <li><span class=\"bi\">(xii)<\/span><span>Findings of peer review shall be examined by the Secretary of the Administrative Department. <strong>Further releases (after 3 or 5 years)<\/strong> shall be made <strong>conditional on conduct and decisions on the findings<\/strong> of such peer review.<\/span><\/li>\n <\/ul>\n <\/div>\n <\/div>\n\n \n <div style=\"background:#e8f0ff;border-left:5px solid #1a3a6b;padding:10px 18px;border-radius:0 6px 6px 0;margin:44px 0 10px;font-weight:700;color:#1a3a6b;font-size:14px;letter-spacing:.04em;text-transform:uppercase\">Section II \u2014 Principles and Procedure for Award of Grants-in-Aid (Rule 230)<\/div>\n\n \n <div class=\"rule-block\" id=\"ch9r230\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 230(1)<\/span><span class=\"rule-title\">Procedure for Award \u2014 Application and Non-Duplication Certificate<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccb<\/span><span>Any institution seeking Grants-in-aid must submit an application including: <strong>Articles of Association, bye-laws, audited statement of accounts, sources and pattern of income and expenditure<\/strong>, enabling the sanctioning authority to assess suitability.<\/span><\/li>\n <li><span class=\"bi\">\u2705<\/span><span>The institution must <strong>certify that it has not obtained or applied for grants for the same purpose<\/strong> from any other Ministry\/Department of GoI or State Government. <span class=\"tag-red\">\u2757 Non-duplication certificate mandatory<\/span><\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch9r230b\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 230(2)<\/span><span class=\"rule-title\">Anti-Duplication List Maintained by Each Ministry<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccb<\/span><span>Each Ministry\/Department shall <strong>maintain a list of institutions along with details of amount and purpose of grants<\/strong> given to them, to obviate duplication. These details shall also be made <strong>available on the website<\/strong> of the Ministry\/Department.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch9r230c\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 230(3)<\/span><span class=\"rule-title\">Grants Only for Viable, Specific Schemes<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>Award of grants shall be considered only on the basis of <strong>viable and specific schemes drawn up in sufficient detail<\/strong>, disclosing specific quantified and qualitative targets against the outlay.<\/span><\/li>\n <li><span class=\"bi\">\u2705<\/span><span><strong>Central Financial Assistance (CFA)<\/strong> \u2014 where grants are given as reimbursement of expenditure already incurred on an approved project \u2014 shall be treated as CFA and <strong>no Utilisation Certificate shall be required<\/strong> in such reimbursement cases.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch9r230d\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 230(4)<\/span><span class=\"rule-title\">Recurring vs Non-Recurring Grants<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udd04<\/span><span><strong>Recurring Grant:<\/strong> Released <strong>periodically<\/strong> to the same organisation for the <strong>same purpose<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">1\ufe0f\u20e3<\/span><span><strong>Non-Recurring Grant:<\/strong> <strong>One-time<\/strong> release for a special purpose (may be released in instalments).<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccb<\/span><span>Every order sanctioning a grant shall:\n <ul class=\"blist-sub\">\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span>Indicate whether it is <strong>recurring or non-recurring<\/strong><\/span><\/li>\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span>Specify clearly the <strong>object<\/strong> for which it is given<\/span><\/li>\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span>Specify all <strong>general and special conditions<\/strong>, if any<\/span><\/li>\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span>For non-recurring grants: also specify the <strong>time limit<\/strong> within which the grant or each instalment is to be spent<\/span><\/li>\n <\/ul>\n <\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch9r230e\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 230(5)\u2013(6)<\/span><span class=\"rule-title\">Accounts Format and Internal Resources Generation<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udcd2<\/span><span><strong>R.230(5):<\/strong> Central Autonomous Organisations shall <strong>account for capital and revenue expenditure separately<\/strong>. All grant-sanctioning authorities shall enforce the condition of maintaining and presenting annual accounts in the <strong>standard formats prescribed by MoF<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcb0<\/span><span><strong>R.230(6):<\/strong> Grant-sanctioning authorities shall not only consider internally generated resources while regulating grants, but should consider <strong>laying down targets for internal resource generation<\/strong> by grantee institutions \u2014 particularly where grants are given on a recurring basis every year.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch9r230f\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 230(7)<\/span><span class=\"rule-title\">Unspent Balances \u2014 Just-in-Time Release Principles<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udcbb<\/span><span>When recurring grants are sanctioned for the same purpose, the <strong>unspent balance of the previous grant<\/strong> shall be taken into account in sanctioning the subsequent grant. The <strong>PFMS portal<\/strong> shall be used to know the bank balance of recipients <strong>before making each release<\/strong>.<\/span><\/li>\n <\/ul>\n <div class=\"box-blue\">\n <div class=\"box-blue-lbl\">\ud83d\udccc Just-in-Time Release Principles<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">1\ufe0f\u20e3<\/span><span>Cash balance at any time should preferably <strong>not be more than 3 months of requirements<\/strong>. <span class=\"tag-red\">\u2757 \u22643 months cash balance<\/span><\/span><\/li>\n <li><span class=\"bi\">2\ufe0f\u20e3<\/span><span>Funds released as per <strong>actual requirements<\/strong>. Sanction may precede the release of funds, though its validity may be limited to that financial year.<\/span><\/li>\n <\/ul>\n <\/div>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch9r230g\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 230(8)<\/span><span class=\"rule-title\">Interest Earnings on Grants \u2014 Mandatory Remittance to Consolidated Fund<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udcb0<\/span><span>All interests or other earnings against grants-in-aid or advances (other than reimbursement) released to any grantee institution shall be <strong>mandatorily remitted to the Consolidated Fund of India<\/strong> immediately after finalisation of accounts. <span class=\"tag-red\">\u2757 Mandatory remittance to CFI<\/span><\/span><\/li>\n <li><span class=\"bi\">\u26d4<\/span><span>Such advances <strong>shall not be allowed to be adjusted against future releases<\/strong>.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch9r230h\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 230(9)<\/span><span class=\"rule-title\">Disposal of Assets Acquired from Grants<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83c\udfd7\ufe0f<\/span><span>Assets acquired <strong>wholly or substantially<\/strong> out of Government Grants (in Non-Govt or Quasi-Govt institutions) <strong>shall not be disposed of<\/strong> without obtaining the <strong>prior approval of the grant-sanctioning authority<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\u2705<\/span><span>Exception: Assets declared as <strong>obsolete, unserviceable or condemned<\/strong> in accordance with GFR procedure.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch9r230i\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 230(10)<\/span><span class=\"rule-title\">Instalment Release Conditions<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccb<\/span><span>The sanctioning authority may prescribe conditions regarding quantum and periodicity for release of grants in instalments in consultation with the Financial Adviser.<\/span><\/li>\n <li><span class=\"bi\">\u26a0\ufe0f<\/span><span>The <strong>release of the last instalment<\/strong> of the Annual Grant must be <strong>conditional upon the grantee providing reasonable evidence of proper utilisation<\/strong> of earlier instalments.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>CFA (Central Financial Assistance) cases:<\/strong> Grant released in <strong>one instalment<\/strong> upon providing <strong>complete evidence of achieving specified objectives and audited statement of expenditure<\/strong>. No UC required in CFA cases.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch9r230j\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 230(11)<\/span><span class=\"rule-title\">Budget Estimates Timeline<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udcc5<\/span><span>Institutions desiring grants shall submit their requirements with supporting details by the <strong>end of September of the year preceding the year<\/strong> for which the grant is sought.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcc5<\/span><span>The Ministry\/Department shall finalise examination with utmost expedition and inform the institution of the result of their requests by <strong>April of the succeeding year<\/strong>.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch9r230k\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 230(12)\u2013(17)<\/span><span class=\"rule-title\">Employee Conditions, Buildings, Bond, SC\/ST Clause and Other Conditions<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udc65<\/span><span><strong>R.230(12):<\/strong> Where grantee receives <strong>>50% recurring expenditure<\/strong> from grants: employee service terms shall <strong>not be higher than Central Govt employees<\/strong> (relaxation with MoF consultation). Should use market pension\/insurance\/loan schemes.<\/span><\/li>\n <li><span class=\"bi\">\ud83c\udfe2<\/span><span><strong>R.230(13):<\/strong> Sanctioning authority decides whether ownership of buildings constructed with grants vests with <strong>Govt or grantee<\/strong>. If Govt-owned, grantee occupies as <strong>lessee<\/strong>. <strong>Maintenance is always the grantee's responsibility<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccb<\/span><span><strong>R.230(14):<\/strong> Special terms to be incorporated in <strong>Articles of Association or bye-laws before release<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcc5<\/span><span><strong>R.230(15):<\/strong> Grants may cover expenditure incurred <strong>not earlier than 2 years prior to the date of issue of sanction<\/strong>. <span class=\"tag-red\">\u2757 2-year look-back<\/span><\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcb0<\/span><span><strong>R.230(16):<\/strong> Refund of unutilised amount <strong>with interest thereon<\/strong> must be clearly stated in the sanction letter and in the bond.<\/span><\/li>\n <li><span class=\"bi\">\u2b50<\/span><span><strong>R.230(17) \u2014 SC\/ST\/OBC Reservation Clause:<\/strong> Mandatory where: (a) recipient employs <strong>>20 persons on regular basis<\/strong> AND \u226550% recurring expenditure from Central grants; <strong>AND<\/strong> (b) registered society or co-operative receiving <strong>general purpose annual grant of \u20b920 lakhs and above from CFI<\/strong>. <span class=\"tag-red\">\u2757 >20 employees + \u2265\u20b920L grant \u2192 SC\/ST\/OBC clause mandatory<\/span><\/span><\/li>\n <\/ul>\n <\/div>\n\n \n <div style=\"background:#f0faf5;border-left:5px solid #2aab6e;padding:10px 18px;border-radius:0 6px 6px 0;margin:44px 0 10px;font-weight:700;color:#1a6b5a;font-size:14px;letter-spacing:.04em;text-transform:uppercase\">Section III \u2014 Bonds, Voluntary Orgs, CSS and Sponsored Projects (Rules 231\u2013233)<\/div>\n\n \n <div class=\"rule-block\" id=\"ch9r231\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 231<\/span><span class=\"rule-title\">Grants to Voluntary Organisations and Execution of Bonds<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccb<\/span><span><strong>R.231(1) \u2014 Ceiling:<\/strong> Grant for administrative expenditure to voluntary organisations shall <strong>not exceed 25% of approved pay and allowances<\/strong> of the personnel of the voluntary organisation. Grants to meet admin expenditure of private institutions (other than voluntary orgs) shall not ordinarily be sanctioned; exceptional cases require <strong>Internal Finance Wing concurrence<\/strong>. <span class=\"tag-red\">\u2757 Max 25% of approved pay and allowances<\/span><\/span><\/li>\n <\/ul>\n <div class=\"box-amber\">\n <div class=\"box-amber-lbl\">\u2b50 Execution of Bond \u2014 Rule 231(2) \u2014 Four Obligations<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>Before a grant is released, members of the <strong>Executive Committee<\/strong> shall execute bonds in prescribed format binding themselves <strong>jointly and severally<\/strong> to:<\/span><\/li>\n <li><span class=\"bi\">1\ufe0f\u20e3<\/span><span>Abide by the <strong>conditions of the grant<\/strong> and target dates, if any<\/span><\/li>\n <li><span class=\"bi\">2\ufe0f\u20e3<\/span><span><strong>Not divert the grant<\/strong> or entrust execution of the scheme to another institution\/organisation<\/span><\/li>\n <li><span class=\"bi\">3\ufe0f\u20e3<\/span><span>Abide by any <strong>other conditions<\/strong> specified in the agreement<\/span><\/li>\n <li><span class=\"bi\">4\ufe0f\u20e3<\/span><span>In event of <strong>breach<\/strong>: jointly and severally liable to <strong>refund the whole or part of the grant with interest at <span class=\"tag-red\">10% per annum<\/span><\/strong>. <strong>Stamp duty borne by Government.<\/strong><\/span><\/li>\n <\/ul>\n <\/div>\n <ul class=\"blist\" style=\"margin-top:10px\">\n <li><span class=\"bi\">\u2705<\/span><span><strong>R.231(3) \u2014 Bond not required for:<\/strong> Quasi-Government Institutions \u00b7 Central Autonomous Organisations \u00b7 Institutions whose budget is approved by Government.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch9r232\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 232<\/span><span class=\"rule-title\">Centrally Sponsored Schemes \u2014 Eight Principles<\/span><\/div>\n <div class=\"box-blue\">\n <div class=\"box-blue-lbl\">\ud83d\udccc Eight Principles for Centrally Sponsored Schemes<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">1\ufe0f\u20e3<\/span><span>Every CSS shall have <strong>time-bound quantifiable and measurable outcome targets<\/strong> with provisions for periodic monitoring, mid-term evaluation and detailed impact studies<\/span><\/li>\n <li><span class=\"bi\">2\ufe0f\u20e3<\/span><span>Designed <strong>in consultation with States and UTs<\/strong>. States may change details to suit local conditions subject to reporting to the concerned Ministry\/Department<\/span><\/li>\n <li><span class=\"bi\">3\ufe0f\u20e3<\/span><span>Schemes with <strong>similar objectives targeting the same population<\/strong> should be <strong>converged<\/strong><\/span><\/li>\n <li><span class=\"bi\">4\ufe0f\u20e3<\/span><span>Number of schemes should be <strong>restricted<\/strong> to maximise gain. Central Ministries' role: <strong>capacity building, inter-sectoral coordination and detailed monitoring<\/strong><\/span><\/li>\n <li><span class=\"bi\">5\ufe0f\u20e3<\/span><span>Release of funds to States and monitoring through <strong>PFMS<\/strong>. Before further releases, ensure earlier funds effectively utilised and State capacity to spend is adequate<\/span><\/li>\n <li><span class=\"bi\">6\ufe0f\u20e3<\/span><span>Focus on <strong>attainment of objectives, not on expenditure<\/strong>. Mechanism to avoid release of large part of funds towards year-end to be built into scheme design<\/span><\/li>\n <li><span class=\"bi\">7\ufe0f\u20e3<\/span><span><strong>Concurrent monitoring and evaluation mechanism<\/strong> to be built into the scheme. Periodic review for mid-course corrections<\/span><\/li>\n <li><span class=\"bi\">8\ufe0f\u20e3<\/span><span><strong>Post-completion review<\/strong> by State Governments\/UTs implementing the scheme \u2014 highlighting time and cost overruns and suggestions for future schemes. Copy to be obtained by the Ministry<\/span><\/li>\n <\/ul>\n <\/div>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch9r233\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 233<\/span><span class=\"rule-title\">Funding of Sponsored Projects \/ Schemes (R&D)<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udd2c<\/span><span>Ministries\/Departments may sponsor projects to <strong>Universities, IITs, and Autonomous Organisations such as ICAR, CSIR, ICMR<\/strong>, etc., whose results are expected to be in national interest. Normally the <strong>entire expenditure including capital expenditure<\/strong> is funded by the Ministry\/Department.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>Funds for such projects are <strong>NOT treated as grants-in-aid<\/strong> in the books of the implementing agency.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccb<\/span><span><strong>Ownership of physical and intellectual assets<\/strong> created or acquired out of such funds shall <strong>vest in the sponsor<\/strong>. While ongoing, the recipient shall <strong>not treat such assets as their own assets<\/strong> but shall disclose their holding and use in the <strong>Notes to Accounts<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udd04<\/span><span><strong>On completion:<\/strong> Ministry\/Department shall communicate whether the assets should be <strong>returned, sold or retained<\/strong> by the implementing agency.\n <ul class=\"blist-sub\">\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span>If sold: proceeds credited to the <strong>account of the sponsoring Department\/Organisation<\/strong><\/span><\/li>\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span>If retained: implementing agency includes assets at <strong>book value in their own accounts<\/strong><\/span><\/li>\n <\/ul>\n <\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><em>Note:<\/em> Scientific Departments are allowed to extend the provisions of Rule 233(i)&(ii) to <strong>private sector\/NGOs<\/strong> commissioned to execute projects or schemes.<\/span><\/li>\n <\/ul>\n <\/div>\n\n \n <div style=\"background:#fffbe6;border-left:5px solid #c9a227;padding:10px 18px;border-radius:0 6px 6px 0;margin:44px 0 10px;font-weight:700;color:#7a5500;font-size:14px;letter-spacing:.04em;text-transform:uppercase\">Section IV \u2014 Registers, Accounts and Audit (Rules 234\u2013237)<\/div>\n\n \n <div class=\"rule-block\" id=\"ch9r234\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 234<\/span><span class=\"rule-title\">Register of Grants \u2014 Form GFR-21<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udcd2<\/span><span>A <strong>Register of Grants<\/strong> shall be maintained by the sanctioning authority in <strong>Form GFR-21<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\u270d\ufe0f<\/span><span><strong>Columns (i)\u2013(v)<\/strong> filled simultaneously with issue of the sanction order, attested by a nominated <strong>Gazetted Officer<\/strong>. The serial number shall be recorded on the body of the sanction.<\/span><\/li>\n <li><span class=\"bi\">\u270d\ufe0f<\/span><span><strong>Columns (vi)\u2013(vii)<\/strong> filled and attested by the Gazetted Officer as soon as the bill is ready. Bill submitted to the DDO with the register for signing.<\/span><\/li>\n <li><span class=\"bi\">\u26d4<\/span><span><strong>No bill shall be signed<\/strong> unless it has been noted in the Register of Grants against the relevant sanction. This guards against <strong>double payment<\/strong> and facilitates watching of instalment payments.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>Column (xiii) information used for regulating subsequent grants.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch9r235\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 235<\/span><span class=\"rule-title\">Accounts of Grantee Institutions<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udcd2<\/span><span>Institutions receiving grants shall, <strong>irrespective of the amount involved<\/strong>, be required to:\n <ul class=\"blist-sub\">\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span>Maintain <strong>subsidiary accounts<\/strong> of the Government grant<\/span><\/li>\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span>Furnish to the Accounts Officer a set of <strong>audited statement of accounts<\/strong> after utilisation of the grants or whenever called for<\/span><\/li>\n <\/ul>\n <\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch9r236\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 236<\/span><span class=\"rule-title\">Audit of Accounts \u2014 CAG and Internal Audit<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udd0d<\/span><span><strong>R.236(1):<\/strong> Accounts of all grantee institutions are open to inspection by the sanctioning authority and audit by both the <strong>CAG<\/strong> (under CAG DPC Act 1971) and <strong>internal audit by the Principal Accounts Office<\/strong>. A provision to this effect shall <strong>invariably be incorporated<\/strong> in all orders sanctioning grants-in-aid.<\/span><\/li>\n <\/ul>\n <div class=\"box-blue\">\n <div class=\"box-blue-lbl\">\ud83d\udccc CAG Audit Thresholds \u2014 Rule 236(2) \u2014 Section 14 of CAG DPC Act<\/div>\n <table style=\"width:100%;border-collapse:collapse;font-size:14px;margin-top:6px\">\n <thead>\n <tr style=\"background:#1a3a6b;color:#fff\">\n <th style=\"padding:8px 12px\">Threshold<\/th>\n <th style=\"padding:8px 12px\">Condition<\/th>\n <th style=\"padding:8px 12px\">Effect<\/th>\n <\/tr>\n <\/thead>\n <tbody>\n <tr style=\"background:#f0f6ff;border-bottom:1px solid #d0dcef\">\n <td style=\"padding:8px 12px\"><strong>\u2265\u20b925 lakhs AND \u226575% of total expenditure<\/strong><\/td>\n <td style=\"padding:8px 12px\">Grants\/loans in a financial year meet both conditions<\/td>\n <td style=\"padding:8px 12px\">CAG audit under <strong>Section 14<\/strong> of CAG DPC Act \u2014 <strong>mandatory<\/strong><\/td>\n <\/tr>\n <tr style=\"background:#e8f0ff;border-bottom:1px solid #d0dcef\">\n <td style=\"padding:8px 12px\"><strong>\u2265\u20b91 crore<\/strong><\/td>\n <td style=\"padding:8px 12px\">Grants\/loans in a financial year reach \u20b91 crore<\/td>\n <td style=\"padding:8px 12px\">CAG <strong>may also audit<\/strong><\/td>\n <\/tr>\n <tr style=\"background:#f0f6ff\">\n <td style=\"padding:8px 12px\"><strong>Continuation<\/strong><\/td>\n <td style=\"padding:8px 12px\">Once CAG audits in a FY<\/td>\n <td style=\"padding:8px 12px\">CAG shall continue to audit for a <strong>further period of 2 years<\/strong> even if conditions above are not fulfilled thereafter. <span class=\"tag-red\">\u2757 2 more years<\/span><\/td>\n <\/tr>\n <\/tbody>\n <\/table>\n <\/div>\n <ul class=\"blist\" style=\"margin-top:10px\">\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>R.236(2)(ii) \u2014 Section 15:<\/strong> CAG may scrutinise the procedures by which the sanctioning authority satisfies itself as to the <strong>fulfilment of conditions<\/strong> for grant-specific purposes, and has <strong>right of access<\/strong> to books and accounts of that institution (except foreign states\/international bodies).<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>R.236(3):<\/strong> In all other cases, the institution shall get its accounts audited from <strong>Chartered Accountants of its own choice<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcb0<\/span><span><strong>R.236(4):<\/strong> Where CAG is the sole auditor for a local body or institution, <strong>auditing charges shall be payable by the auditee institution in full<\/strong> unless specifically waived by Government.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch9r237\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 237<\/span><span class=\"rule-title\">Time Schedule for Submission of Annual Accounts \u2014 Three Dates<\/span><\/div>\n <div class=\"box-amber\">\n <div class=\"box-amber-lbl\">\u2b50 Three Milestone Dates \u2014 Annual Accounts<\/div>\n <table style=\"width:100%;border-collapse:collapse;font-size:14px;margin-top:6px\">\n <thead>\n <tr style=\"background:#c9a227;color:#1a3400\">\n <th style=\"padding:8px 12px;text-align:left\">Deadline<\/th>\n <th style=\"padding:8px 12px;text-align:left\">Activity<\/th>\n <\/tr>\n <\/thead>\n <tbody>\n <tr style=\"background:#fffdf0;border-bottom:1px solid #e8e0c0\"><td style=\"padding:8px 12px\"><strong>30th June<\/strong><\/td><td style=\"padding:8px 12px\">Approved and authenticated annual accounts made available by Autonomous Body to the concerned Audit Office \u2192 commencement of audit of annual accounts<\/td><\/tr>\n <tr style=\"background:#fff8e8;border-bottom:1px solid #e8e0c0\"><td style=\"padding:8px 12px\"><strong>31st October<\/strong><\/td><td style=\"padding:8px 12px\">Issue of the final SAR (Statement of Audit Report) in English version with audit certificate to Autonomous Body\/Government concerned<\/td><\/tr>\n <tr style=\"background:#fffdf0\"><td style=\"padding:8px 12px\"><strong>31st December<\/strong><\/td><td style=\"padding:8px 12px\">Submission of Annual Report and Audited Accounts to the Nodal Ministry for laying on the Table of Parliament<\/td><\/tr>\n <\/tbody>\n <\/table>\n <\/div>\n <\/div>\n\n \n <div style=\"background:#f0f4ff;border-left:5px solid #1a3a6b;padding:10px 18px;border-radius:0 6px 6px 0;margin:44px 0 10px;font-weight:700;color:#1a3a6b;font-size:14px;letter-spacing:.04em;text-transform:uppercase\">Section V \u2014 Utilisation Certificates and Performance Reports (Rules 238\u2013242)<\/div>\n\n \n <div class=\"rule-block\" id=\"ch9r238\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 238(1)<\/span><span class=\"rule-title\">Utilisation Certificate \u2014 Non-Recurring Grants<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccb<\/span><span>For non-recurring grants, a <strong>Utilisation Certificate in Form GFR 12-A<\/strong> shall be insisted upon in the sanction order.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcca<\/span><span>The UC shall disclose whether specified, quantified and qualitative targets were actually reached \u2014 it shall contain an <strong>output-based (not input-based) performance assessment<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcc5<\/span><span>UC shall be submitted <strong>within 12 months of the closure of the financial year<\/strong>. <span class=\"tag-red\">\u2757 12 months<\/span><\/span><\/li>\n <li><span class=\"bi\">\u26d4<\/span><span>Where UC is not received within the prescribed time, the Ministry\/Department is at liberty to <strong>blacklist such institution from any future grant, subsidy or other financial support<\/strong> from Government.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch9r238b\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 238(2)<\/span><span class=\"rule-title\">Utilisation Certificate \u2014 Recurring Grants<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccb<\/span><span>For recurring grants, the next financial year release shall be made <strong>only after provisional UC for the preceding financial year is submitted<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>Release of grants <strong>exceeding 75% of the total amount sanctioned for the subsequent FY<\/strong> shall be done only after the <strong>UC plus annual audited statement relating to the preceding year<\/strong> are submitted to the satisfaction of the Ministry\/Department. <span class=\"tag-red\">\u2757 75% threshold \u2014 UC + audited statement needed<\/span><\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>Internal Audit reports, Inspection Reports from IAAD and quarterly performance reports shall also be considered while sanctioning further grants.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><em>Scientific Departments special measure:<\/em> Permitted to release subsequent grants-in-aid on receipt of UCs confirming utilisation of <strong>75% of total value of previous grants<\/strong>.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch9r238c\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 238(3)\u2013(6)<\/span><span class=\"rule-title\">UC Exceptions, Special Disclosures and Parliament Reporting Thresholds<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\u2705<\/span><span><strong>R.238(3) \u2014 No UC required:<\/strong> For grants\/CFA given as <strong>reimbursement of expenditure already incurred<\/strong> on the basis of duly audited accounts. Sanction letters shall clearly specify that UCs will not be necessary.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcd2<\/span><span><strong>R.238(4) \u2014 Central Autonomous Orgs UC:<\/strong> Shall separately disclose: annual expenditure incurred AND funds given to <strong>(a) suppliers of stores\/assets (b) construction agencies (c) staff for house building\/conveyance loans<\/strong> \u2014 which do not constitute expenditure at that stage but are pending adjustment. Treated as unutilised grants allowed to be <strong>carried forward<\/strong>.<\/span><\/li>\n <\/ul>\n <div class=\"box-blue\">\n <div class=\"box-blue-lbl\">\ud83d\udccc Parliament Reporting Thresholds \u2014 Rules 238(5) and 238(6)<\/div>\n <table style=\"width:100%;border-collapse:collapse;font-size:14px;margin-top:6px\">\n <thead>\n <tr style=\"background:#1a3a6b;color:#fff\">\n <th style=\"padding:8px 12px\">Type<\/th>\n <th style=\"padding:8px 12px\">Amount Range<\/th>\n <th style=\"padding:8px 12px\">Requirement<\/th>\n <\/tr>\n <\/thead>\n <tbody>\n <tr style=\"background:#f0f6ff;border-bottom:1px solid #d0dcef\">\n <td style=\"padding:8px 12px\"><strong>Recurring<\/strong><\/td>\n <td style=\"padding:8px 12px\">\u20b910L to <\u20b950L<\/td>\n <td style=\"padding:8px 12px\">Statement in Ministry's Annual Report<\/td>\n <\/tr>\n <tr style=\"background:#e8f0ff;border-bottom:1px solid #d0dcef\">\n <td style=\"padding:8px 12px\"><strong>Recurring<\/strong><\/td>\n <td style=\"padding:8px 12px\">\u2265\u20b950L<\/td>\n <td style=\"padding:8px 12px\">Annual Report and Accounts laid on table of <strong>Parliament within 9 months<\/strong><\/td>\n <\/tr>\n <tr style=\"background:#f0f6ff;border-bottom:1px solid #d0dcef\">\n <td style=\"padding:8px 12px\"><strong>Non-Recurring (one-time)<\/strong><\/td>\n <td style=\"padding:8px 12px\">\u20b910L to \u20b95Cr<\/td>\n <td style=\"padding:8px 12px\">Statement in Ministry's Annual Report<\/td>\n <\/tr>\n <tr style=\"background:#e8f0ff\">\n <td style=\"padding:8px 12px\"><strong>Non-Recurring (one-time)<\/strong><\/td>\n <td style=\"padding:8px 12px\">\u2265\u20b95Cr<\/td>\n <td style=\"padding:8px 12px\">Annual Report and Audited Accounts laid on table of <strong>Parliament within 9 months<\/strong><\/td>\n <\/tr>\n <\/tbody>\n <\/table>\n <\/div>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch9r239\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rules 239\u2013241<\/span><span class=\"rule-title\">Utilisation Certificates \u2014 State Govts and DBT Schemes<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccb<\/span><span><strong>R.239 \u2014 CSS Grants to States:<\/strong> UC in <strong>Form GFR 12-C<\/strong> submitted by the State Government, countersigned by the <strong>Administrative Secretary of the Division regulating the Scheme \/ Finance Secretary<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccb<\/span><span><strong>R.240 \u2014 Grants through local bodies\/private institutions:<\/strong> When Central grants are given to State Governments for expenditure to be incurred through local bodies or private institutions, the <strong>State Government concerned<\/strong> shall furnish the Utilisation Certificates.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcb3<\/span><span><strong>R.241 \u2014 DBT Schemes:<\/strong> For schemes covered under Direct Benefit Transfers where funds flow directly from Central Government to beneficiaries, the <strong>intimation from the bank \/ NPCI (Aadhaar Payment Bridge) regarding deposit of funds in beneficiaries' bank accounts<\/strong> shall be treated as a <strong>Utilisation Certificate<\/strong>. The Ministry\/Department shall keep proper records of such direct releases.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch9r242\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 242<\/span><span class=\"rule-title\">Performance Parameters and Achievement-cum-Performance Reports<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udcca<\/span><span><strong>R.242(1):<\/strong> Performance parameters should be clearly set to allow better oversight of Autonomous Bodies.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcc5<\/span><span><strong>R.242(2)(i):<\/strong> Grantee institutions shall submit performance-cum-achievement reports <strong>within 6 months of the close of the financial year<\/strong>. <span class=\"tag-red\">\u2757 6 months<\/span><\/span><\/li>\n <li><span class=\"bi\">\u2705<\/span><span><strong>Performance reports NOT required for:<\/strong> Non-recurring grants (anniversaries, special tours, maintenance grants for education).<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccb<\/span><span><strong>Recurring grants \u2264\u20b925 lakhs:<\/strong> Sanctioning authority may <strong>dispense<\/strong> with performance-cum-achievement reports (refer to UCs and other available information instead). <span class=\"tag-red\">\u2757 \u2264\u20b925L \u2014 may be dispensed<\/span><\/span><\/li>\n <\/ul>\n <div class=\"box-blue\">\n <div class=\"box-blue-lbl\">\ud83d\udccc Annual Report Inclusion Thresholds \u2014 Rule 242(2)(iv)<\/div>\n <table style=\"width:100%;border-collapse:collapse;font-size:14px;margin-top:6px\">\n <thead>\n <tr style=\"background:#1a3a6b;color:#fff\">\n <th style=\"padding:8px 12px\">Organisation \/ Amount<\/th>\n <th style=\"padding:8px 12px\">Requirement<\/th>\n <\/tr>\n <\/thead>\n <tbody>\n <tr style=\"background:#f0f6ff;border-bottom:1px solid #d0dcef\">\n <td style=\"padding:8px 12px\">Autonomous Orgs getting <strong>\u2265\u20b92 crore<\/strong><\/td>\n <td style=\"padding:8px 12px\">Annual Report + Audited Accounts laid on table of Parliament \u2014 Ministry need not include performance-cum-achievement report in their own Annual Report<\/td>\n <\/tr>\n <tr style=\"background:#e8f0ff;border-bottom:1px solid #d0dcef\">\n <td style=\"padding:8px 12px\">Autonomous Orgs getting <strong><\u20b92 crore<\/strong><\/td>\n <td style=\"padding:8px 12px\">All Departments to include in their Annual Report: statement showing quantum of funds and purpose of utilisation<\/td>\n <\/tr>\n <tr style=\"background:#f0f6ff;border-bottom:1px solid #d0dcef\">\n <td style=\"padding:8px 12px\">Recurring: <strong>>\u20b910L\u2013<\u20b950L<\/strong> \/ Non-recurring: <strong>>\u20b910L\u2013<\u20b95Cr<\/strong><\/td>\n <td style=\"padding:8px 12px\">Ministry's own assessment of achievements\/performance of the institution to be included in Annual Report<\/td>\n <\/tr>\n <tr style=\"background:#e8f0ff\">\n <td style=\"padding:8px 12px\">Recurring: <strong>\u2265\u20b950L<\/strong> \/ Non-recurring: <strong>\u2265\u20b95Cr<\/strong><\/td>\n <td style=\"padding:8px 12px\">Full individual review in Ministry Annual Report \u2014 specifying achievements vis-\u00e0-vis amount spent, purpose and destination of grants<\/td>\n <\/tr>\n <\/tbody>\n <\/table>\n <\/div>\n <\/div>\n\n \n <div style=\"background:#e8f0ff;border-left:5px solid #1a3a6b;padding:10px 18px;border-radius:0 6px 6px 0;margin:44px 0 10px;font-weight:700;color:#1a3a6b;font-size:14px;letter-spacing:.04em;text-transform:uppercase\">Section VI \u2014 Discretionary, Other Grants and Employee Welfare (Rules 243\u2013245)<\/div>\n\n \n <div class=\"rule-block\" id=\"ch9r243\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 243<\/span><span class=\"rule-title\">Discretionary Grants<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccb<\/span><span>Expenditure from Discretionary Grants shall be regulated by <strong>general or special orders of the competent authority<\/strong> specifying the object and conditions applicable.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>Such Discretionary Grants must be:\n <ul class=\"blist-sub\">\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span><strong>Non-recurring<\/strong><\/span><\/li>\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span>Must <strong>not involve any future commitment<\/strong><\/span><\/li>\n <\/ul>\n <\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch9r244\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 244<\/span><span class=\"rule-title\">Other Grants<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>Grants, subventions, etc. \u2014 including grants to States other than those dealt with in the foregoing rules \u2014 shall be made under <strong>special orders of Government<\/strong>.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch9r245\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 245<\/span><span class=\"rule-title\">Recurring Grants for Government Employees' Welfare \u2014 Staff Clubs<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83c\udfc5<\/span><span>Grants-in-aid for provision of amenities or recreational\/welfare facilities to staff are regulated under orders of the <strong>Ministry of Home Affairs<\/strong>.<\/span><\/li>\n <\/ul>\n <div class=\"box-amber\">\n <div class=\"box-amber-lbl\">\u2b50 Staff Welfare Grant Rates and Key Rules<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udcb0<\/span><span><strong>Base rate:<\/strong> <strong>\u20b950 per head per annum<\/strong><\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcb0<\/span><span><strong>Matching grant:<\/strong> Additional up to <strong>\u20b925 per head per annum<\/strong> to match subscriptions collected during the previous financial year by existing staff clubs (or collected up to date of proposal for new clubs)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcc5<\/span><span><strong>Eligible strength<\/strong> = strength as on <strong>31st March of the previous financial year<\/strong> (or date of proposal for new clubs)<\/span><\/li>\n <li><span class=\"bi\">\u26d4<\/span><span><strong>Excluded from calculation:<\/strong> Staff paid from contingencies \u00b7 Work-charged staff \u00b7 Staff eligible for similar concession under other rules\/statutory provisions (e.g., industrial workers)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>Grant-in-aid in respect of <strong>Gazetted Officers<\/strong> is admissible only to that Ministry\/Department\/Office <strong>where membership of recreation club is open to such officers<\/strong><\/span><\/li>\n <li><span class=\"bi\">\ud83c\udfdb\ufe0f<\/span><span><strong>One-time grant for setting up a Recreation Club:<\/strong> Maximum <strong>\u20b950,000<\/strong> <span class=\"tag-red\">\u2757 Max \u20b950,000<\/span><\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcc5<\/span><span>Accounts of clubs for preceding year, duly audited by Internal Auditor, to be obtained by the Ministry\/Department <strong>by 30th April<\/strong> before allocating funds for the next financial year. <span class=\"tag-red\">\u2757 30th April<\/span><\/span><\/li>\n <\/ul>\n <\/div>\n <ul class=\"blist\" style=\"margin-top:10px\">\n <li><span class=\"bi\">\ud83d\udccb<\/span><span>Illustrative expenditure items from staff welfare grants include: sports equipment \u00b7 uniforms for teams \u00b7 magazines\/periodicals \u00b7 tournament entry fees \u00b7 hiring of playgrounds\/furniture \u00b7 conveyance expenses \u00b7 entertainments \u00b7 prizes \u00b7 film shows \u00b7 hiring of accommodation \u00b7 cultural\/sports\/physical development programmes \u00b7 inter-Ministerial and inter-Departmental meets.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"box-amber\" style=\"margin-top:36px\">\n <div class=\"box-amber-lbl\">\u2b50 Key Numbers and Facts to Remember \u2014 Chapter 9<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>6 categories<\/strong> of eligible grantee recipients (R.228)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>New autonomous body: <strong>Cabinet approval<\/strong> mandatory \u00b7 Regional offices: Admin Ministry + MoF concurrence (R.229)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>Corpus Fund from budget: <strong>MoF prior concurrence<\/strong> \u00b7 from internal accruals: <strong>Admin Ministry approval<\/strong> (R.229(v))<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>User charges reviewed: <strong>at least once a year<\/strong> (R.229(vi))<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>Peer review: every <strong>3 or 5 years<\/strong> depending on size and activity (R.229(ix))<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>MoU mandatory: budgetary support <strong>>\u20b95 crore per annum<\/strong> (R.229(xi))<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>Cash balance: preferably <strong>not more than 3 months<\/strong> of requirement (R.230(7))<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>Interest on grants: mandatorily remitted to <strong>Consolidated Fund of India<\/strong> (R.230(8))<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>Grants may cover expenditure <strong>not earlier than 2 years<\/strong> prior to sanction date (R.230(15))<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>SC\/ST\/OBC clause: ><strong>20 regular employees<\/strong> + \u226550% recurring expenditure from grants + registered society receiving <strong>\u2265\u20b920L<\/strong> general purpose annual grant from CFI (R.230(17))<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>Voluntary Org admin grant: max <strong>25%<\/strong> of approved pay and allowances (R.231(1))<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>Bond breach: refund with interest at <strong>10% per annum<\/strong> \u00b7 stamp duty borne by <strong>Govt<\/strong> (R.231(2))<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>Bond NOT required: Quasi-Govt Institutions \u00b7 Central Autonomous Orgs \u00b7 Budget-approved Institutions (R.231(3))<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>CAG audit (S.14): grants \u2265<strong>\u20b925L AND \u226575%<\/strong> of total expenditure \u00b7 OR \u2265<strong>\u20b91 crore<\/strong> \u00b7 Continues for <strong>2 further years<\/strong> once triggered (R.236)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>Annual accounts: <strong>30 June<\/strong> (to audit) \u2192 <strong>31 Oct<\/strong> (SAR with certificate) \u2192 <strong>31 Dec<\/strong> (to Parliament) (R.237)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>Non-recurring UC (Form GFR 12-A): within <strong>12 months<\/strong> of FY closure \u00b7 Non-submission \u2192 blacklisting (R.238(1))<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>Recurring grants: ><strong>75%<\/strong> of subsequent FY release needs UC + audited statement (R.238(2))<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>Parliament table \u2014 Recurring: <strong>\u2265\u20b950L within 9 months<\/strong> \u00b7 Non-recurring: <strong>\u2265\u20b95Cr within 9 months<\/strong> (R.238(5)\u2013(6))<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>DBT UC: bank\/NPCI deposit intimation = UC (R.241)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>Performance report: within <strong>6 months<\/strong> of FY close \u00b7 May be dispensed for recurring \u2264<strong>\u20b925L<\/strong> (R.242)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>Autonomous Orgs \u2265<strong>\u20b92Cr<\/strong>: Annual Report and Audited Accounts laid on Parliament table (R.242)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>Staff welfare: <strong>\u20b950\/head\/year<\/strong> + matching <strong>\u20b925\/head\/year<\/strong> \u00b7 One-time club setup: <strong>\u20b950,000<\/strong> max \u00b7 Accounts by <strong>30th April<\/strong> (R.245)<\/span><\/li>\n <\/ul>\n <\/div>\n\n\n \n <div style=\"background:#fffbe6;border-left:5px solid #c9a227;padding:10px 18px;border-radius:0 6px 6px 0;margin:44px 0 10px;font-weight:700;color:#7a5500;font-size:14px;letter-spacing:.04em;text-transform:uppercase\">Section VIII \u2014 Loans (Rules 246\u2013263)<\/div>\n\n \n <div class=\"idx-outer\">\n <div class=\"idx-lbl\">\ud83d\udccb Rules at a Glance \u2014 Loans (R.246\u2013263)<\/div>\n <table class=\"idx-table\">\n <thead><tr><th>Rule<\/th><th>Subject<\/th><th>Key Point<\/th><\/tr><\/thead>\n <tbody>\n <tr><td>246<\/td><td>Applicability<\/td><td>State Govts, UTs, local bodies, foreign Govts (on State recommendation), Govt institutions and bodies<\/td><\/tr>\n <tr><td>247<\/td><td>Powers and nodal division<\/td><td>DFPR powers \u00b7 Budget Division, DEA, MoF = nodal division for terms and conditions<\/td><\/tr>\n <tr><td>248<\/td><td>Certificate in sanction<\/td><td>Every sanction must certify compliance with MoF rules and MoF approval for interest rate and repayment period<\/td><\/tr>\n <tr><td>249<\/td><td>Sanction terms<\/td><td>Must specify all terms \u00b7 Modifications only for very special reasons + prior MoF concurrence<\/td><\/tr>\n <tr><td>250<\/td><td>General conditions \u2014 loans<\/td><td>Max 30 years \u00b7 Annual instalments \u00b7 Advance payment >14 days \u2192 full interest \u00b7 31 March holiday exception \u00b7 Notice Form GFR-19 one month before due date \u00b7 Security \u226533\u2153% above loan amount<\/td><\/tr>\n <tr><td>251<\/td><td>Interest calculation<\/td><td>Interest for day of payment, not day of repayment \u00b7 Days \u00d7 rate \u00f7 365 (366 leap year)<\/td><\/tr>\n <tr><td>252<\/td><td>Recovery and moratorium<\/td><td>Annual equal instalments \u00b7 Moratorium may be allowed for principal but NOT for interest<\/td><\/tr>\n <tr><td>253<\/td><td>Loans to State\/UT\/PSU<\/td><td>Normal rate \u00b7 Concession = direct subsidy (not reduced rate) \u00b7 Loan agreement with inspection clause \u00b7 Form GFR-15 for wholly Govt-owned companies<\/td><\/tr>\n <tr><td>254<\/td><td>Wholly Govt-owned companies<\/td><td>Undertaking in Form GFR-32 \u00b7 Fixed assets not to be hypothecated without Govt approval \u00b7 No stamp duty on undertaking<\/td><\/tr>\n <tr><td>255<\/td><td>Security requirement<\/td><td>Security \u226533\u2153% above loan amount \u00b7 Competent authority may accept less for recorded reasons<\/td><\/tr>\n <tr><td>256<\/td><td>Utilisation Certificates \u2014 loans<\/td><td>Form GFR 12-B \u00b7 Target date: 18 months from sanction \u00b7 Consolidated UC: by September of second succeeding FY<\/td><\/tr>\n <tr><td>257<\/td><td>Loan instalments<\/td><td>Each instalment = separate loan for interest\/repayment \u00b7 May be consolidated at FY end \u00b7 Moratorium for principal allowed; NOT for interest<\/td><\/tr>\n <tr><td>258<\/td><td>Default and penal interest<\/td><td>Penal rate \u2265 normal + 2.5% p.a. \u00b7 Default reported by Accounts Officer to sanctioning authority \u00b7 Interest-free loans: default triggers normal rate<\/td><\/tr>\n <tr><td>259<\/td><td>Irrecoverable loans<\/td><td>Write-off only with prior MoF approval<\/td><\/tr>\n <tr><td>260<\/td><td>Accounts and control<\/td><td>Maintained by Accounts Officer \u00b7 Recovery watched \u00b7 Conditions monitored<\/td><\/tr>\n <tr><td>262<\/td><td>Annual returns<\/td><td>Form GFR-13 \u00b7 Each PAO submits by 30 September for position as on 31 March<\/td><\/tr>\n <tr><td>263<\/td><td>Annual Assessment Report<\/td><td>FA submits to MoF by 30 June of each FY<\/td><\/tr>\n <\/tbody>\n <\/table>\n <\/div>\n\n \n <div class=\"rule-block\" id=\"ch9r246\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 246<\/span><span class=\"rule-title\">Applicability of Loan Rules<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>Rules 246\u2013263 shall be observed by all authorities competent to sanction loans of public moneys to: <strong>State Governments<\/strong> \u00b7 <strong>Local Administrations of Union Territories<\/strong> \u00b7 <strong>Local bodies<\/strong> \u00b7 <strong>Foreign Governments<\/strong> (on specific recommendation of State Government) \u00b7 <strong>Government institutions and other Government bodies<\/strong>.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch9r247\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 247<\/span><span class=\"rule-title\">Powers and Nodal Division<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccb<\/span><span><strong>Sub-rule (1):<\/strong> Powers of Departments and Administrators to sanction loans are given in the <strong>Delegation of Financial Powers Rules (DFPR)<\/strong> and other general and special orders.<\/span><\/li>\n <li><span class=\"bi\">\ud83c\udfdb\ufe0f<\/span><span><strong>Sub-rule (2):<\/strong> <strong>Budget Division, Department of Economic Affairs, Ministry of Finance<\/strong> shall be the <strong>nodal division<\/strong> in MoF to finalise terms and conditions of loans by the Central Government. <span class=\"tag-red\">\u2757 Budget Division, DEA = nodal<\/span><\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch9r248\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 248<\/span><span class=\"rule-title\">Mandatory Certificate in Every Loan Sanction<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccb<\/span><span>All sanctions of loans issued by a Department of Central Government or an Administrator of Union Territory shall include a <strong>certificate<\/strong> that: (a) the sanction is in accordance with <strong>rules or principles prescribed by the Ministry of Finance<\/strong>; and (b) the <strong>rate of interest<\/strong> on the loan and the <strong>period of repayment<\/strong> have been <strong>fixed with the approval of MoF<\/strong>.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch9r249\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 249<\/span><span class=\"rule-title\">Terms and Conditions \u2014 Strict Adherence<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccb<\/span><span><strong>Sub-rule (1):<\/strong> All loan sanctions shall be subject to DFPR and shall specify all terms and conditions including <strong>repayment terms and payment of interest<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\u26a0\ufe0f<\/span><span><strong>Sub-rule (2):<\/strong> Borrowers shall adhere strictly to the settled terms. <strong>Modifications<\/strong> can be made subsequently only for <strong>very special reasons<\/strong> and after seeking <strong>prior concurrence of Ministry of Finance<\/strong>. <span class=\"tag-red\">\u2757 Modification \u2192 prior MoF concurrence<\/span><\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch9r250\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 250<\/span><span class=\"rule-title\">General Conditions Regulating All Loans<\/span><\/div>\n\n <p class=\"sec-h\">Sub-rule (1) \u2014 Eight General Conditions<\/p>\n <div class=\"box-blue\">\n <div class=\"box-blue-lbl\">\ud83d\udccc Eight General Conditions \u2014 Rule 250(1)<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">(i)<\/span><span>A <strong>specific term shall be fixed<\/strong> \u2014 as short as possible \u2014 within which each loan must be fully repaid with interest. In very special cases, the term may extend to <strong>30 years<\/strong>. <span class=\"tag-red\">\u2757 Maximum: 30 years<\/span><\/span><\/li>\n <li><span class=\"bi\">(ii)<\/span><span>Term is calculated from the date on which the loan is <strong>completely drawn or declared closed<\/strong> by competent authority.<\/span><\/li>\n <li><span class=\"bi\">(iii)<\/span><span>Repayment shall be effected by <strong>instalments, ordinarily on annual basis<\/strong>, with due dates of payment specially prescribed.<\/span><\/li>\n <li><span class=\"bi\">(iv)<\/span><span><strong>Early payment:<\/strong> If instalment is paid before its due date, it may be applied entirely to principal provided interest due up to the date of actual payment is also paid. If interest is not paid, amount is first adjusted towards interest, and only the balance towards principal. However, if payment is <strong>in advance by 14 days or less<\/strong>, <strong>interest for the full period (half-year or full year)<\/strong> shall be payable. <span class=\"tag-amber\">\u2b50 Advance \u226414 days \u2192 full period interest<\/span><\/span><\/li>\n <li><span class=\"bi\">(v)<\/span><span><strong>Holiday rule:<\/strong> If due date falls on a Sunday or public holiday, payment on the <strong>next working day<\/strong> = payment on due date (no interest charged for the delay). <strong>Exception:<\/strong> If due date is <strong>31st March<\/strong> and it is a public holiday, recovery shall be made on the <strong>immediately preceding working day<\/strong>. If RBI is closed on the due date, shifted to next working day, except when due date is 31st March.<\/span><\/li>\n <li><span class=\"bi\">(vi)<\/span><span>Payment of interest and repayment of principal are always to be made with reference to the <strong>calendar date of payment of the loan<\/strong>. For a loan sanctioned to a State on or before 31st March but adjusted in RBI books in April, the instalments shall fall due on <strong>31st March of the succeeding year<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">(vii)<\/span><span><strong>Date of drawal by State Government:<\/strong> (a) Where monetary settlement is involved \u2014 calendar date on which loan is <strong>actually credited by RBI to the State Government's account<\/strong>. Exception: credit in April in accounts of previous year \u2192 deemed drawn on <strong>31st March<\/strong> of that FY. (b) Where no monetary settlement (accounts offices only) \u2014 <strong>last date of the month<\/strong> in which the adjustment is effected = date of drawal.<\/span><\/li>\n <li><span class=\"bi\">(viii)<\/span><span><strong>Advance notice:<\/strong> PAO\/Principal AO shall issue notices in <strong>Form GFR-19<\/strong> to loanees (other than State\/UT Govts), i.e. PSUs, statutory bodies, Govt institutions, approximately <strong>one month in advance<\/strong> of due date. However, <strong>omission to give notice does not exempt the loanee from consequences of default<\/strong>. <span class=\"tag-red\">\u2757 Notice: 1 month before due date \u00b7 Omission no excuse for default<\/span><\/span><\/li>\n <\/ul>\n <\/div>\n\n <p class=\"sec-h\">Sub-rule (2) \u2014 Loans to Private Institutions<\/p>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>Before sanctioning a loan to <strong>private institutions<\/strong>, the lending Ministry\/Department shall examine the <strong>financial health and managerial ability<\/strong> of such institutions.<\/span><\/li>\n <\/ul>\n\n <p class=\"sec-h\">Sub-rule (3) \u2014 Conditions Before Approving Loan to Non-State\/UT Parties<\/p>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccb<\/span><span><strong>(i) Pre-conditions:<\/strong> (a) Adequate budget provision must exist; (b) Grant of loan must be in accordance with approved Government policy and accepted patterns of assistance.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccb<\/span><span><strong>(ii) Information required from applicant:<\/strong><\/span><\/li>\n <\/ul>\n <div class=\"box-amber\">\n <div class=\"box-amber-lbl\">\u2b50 Six Documents Required from Loan Applicant<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">1\ufe0f\u20e3<\/span><span>Profit & Loss accounts \/ income & expenditure accounts and balance sheets for the <strong>last 3 years<\/strong><\/span><\/li>\n <li><span class=\"bi\">2\ufe0f\u20e3<\/span><span>Main sources of income and <strong>how the loan is proposed to be repaid<\/strong> within the stipulated period<\/span><\/li>\n <li><span class=\"bi\">3\ufe0f\u20e3<\/span><span>Security proposed to be offered + <strong>independent valuation<\/strong> + certificate that the asset is <strong>not already encumbered<\/strong><\/span><\/li>\n <li><span class=\"bi\">4\ufe0f\u20e3<\/span><span>Details of all previous Central\/State Government loans (amount, purpose, rate, period, date, outstanding balance, security)<\/span><\/li>\n <li><span class=\"bi\">5\ufe0f\u20e3<\/span><span>Complete list of all other outstanding loans and security against them<\/span><\/li>\n <li><span class=\"bi\">6\ufe0f\u20e3<\/span><span>Purpose for which loan is proposed to be utilised and the <strong>economics of the scheme<\/strong><\/span><\/li>\n <\/ul>\n <\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udd0d<\/span><span><strong>(iii)<\/strong> On receipt of information, <strong>confidential enquiries<\/strong> shall be made from other Depts\/State Govts from which the party has taken loans to judge past performance. If performance was unsatisfactory, the loan shall be <strong>refused<\/strong>. Security offered must be adequate and its value must be at least <strong>33\u2153% above the amount of the loan<\/strong>. Independent valuation may be obtained if possible. Applicant must satisfy <strong>both financial soundness and adequacy of security<\/strong>. <span class=\"tag-red\">\u2757 Security \u2265 loan + 33\u2153%<\/span><\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccb<\/span><span><strong>(iv)<\/strong> For institutions receiving grants-in-aid to meet part of their deficits: (a) income earmarked for servicing the loan shall not be included in computing the deficit; (b) scheme should be self-financing as far as possible; (c) institution must produce an undertaking from the State Government or Management that any shortfall towards repayment shall be made good by it.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcc5<\/span><span><strong>(v)<\/strong> Ministries\/Departments shall lay down a procedure for <strong>periodical review of old loans<\/strong> to take prompt action for enforcing regular payments.<\/span><\/li>\n <\/ul>\n\n <p class=\"sec-h\">Sub-rule (4) \u2014 Local Bodies<\/p>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>Detailed procedure for loans to local bodies is regulated by the <strong>Local Authorities Loans Act<\/strong> and other special Acts and rules thereunder.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch9r251\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 251<\/span><span class=\"rule-title\">Interest on Loans \u2014 Calculation Formula<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udcb0<\/span><span><strong>Sub-rule (1):<\/strong> Interest shall be charged at the rate <strong>prescribed by the Government<\/strong> for the particular loan or class of loans.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcd0<\/span><span><strong>Sub-rule (2):<\/strong> A loan shall bear interest for the <strong>day of payment but not for the day of repayment<\/strong>. For any period shorter than a complete year:<\/span><\/li>\n <\/ul>\n <div class=\"box-amber\">\n <div class=\"box-amber-lbl\">\u2b50 Interest Formula \u2014 Rule 251(2)<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>Interest = (Number of days \u00d7 Yearly rate of interest) \u00f7 365<\/strong> (366 in a leap year)<\/span><\/li>\n <\/ul>\n <\/div>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch9r252\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 252<\/span><span class=\"rule-title\">Recovery Procedure and Moratorium<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccb<\/span><span><strong>Sub-rule (1):<\/strong> Instructions issued by MoF from time to time prescribing interest rates and other terms for loans to State\/UT Govts, Local Bodies, Statutory Corporations, financial\/industrial\/commercial undertakings in Public Sector shall be <strong>strictly followed<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcca<\/span><span><strong>Sub-rule (2):<\/strong> Recovery shall ordinarily be effected in <strong>annual equal instalments of principal together with interest due on the outstanding principal<\/strong>. Instalments may be rounded off to nearest rupee, with final adjustment at the time of payment of the last instalment.<\/span><\/li>\n <li><span class=\"bi\">\u23f8\ufe0f<\/span><span><strong>Sub-rule (3):<\/strong> A suitable period of moratorium towards <strong>repayment of principal<\/strong> might be agreed to in individual cases. However, <strong>no moratorium shall ordinarily be allowed in respect of interest payable on loans<\/strong>. <span class=\"tag-red\">\u2757 Moratorium: principal YES \u00b7 interest NO<\/span><\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch9r253\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 253<\/span><span class=\"rule-title\">Loans to State\/UT Govts, Local Bodies, Statutory Corporations, PSUs \u2014 Agreements<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udcb0<\/span><span><strong>Sub-rule (1):<\/strong> Loans shall ordinarily be sanctioned at <strong>normal rates of interest<\/strong> prescribed by Government for the particular loanee category. If normal rate is considered too high and a concession is justified, it shall take the form of a <strong>direct subsidy<\/strong> debitable to the grants of the sanctioning authority \u2014 <strong>not a reduced interest rate<\/strong>. In such cases, borrower pays interest at normal rates first and <strong>claims subsidy separately<\/strong>.<\/span><\/li>\n <\/ul>\n <p class=\"sec-h\">Sub-rule (2) \u2014 Agreements and Documentation<\/p>\n <div class=\"box-blue\">\n <div class=\"box-blue-lbl\">\ud83d\udccc Documentation Requirements<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">1\ufe0f\u20e3<\/span><span><strong>For parties other than State Governments and wholly Govt-owned Companies:<\/strong> A <strong>loan agreement<\/strong> specifying all terms and conditions shall be executed. A clause shall invariably be inserted enabling Government to <strong>call for accounts and depute an officer to inspect books<\/strong> at any time.<\/span><\/li>\n <li><span class=\"bi\">2\ufe0f\u20e3<\/span><span><strong>For wholly Government-owned Companies:<\/strong> A written undertaking in <strong>Form GFR-15<\/strong> shall be obtained before drawal. The sanction shall specifically state that such an undertaking would be obtained and the Drawing Officer shall record a certificate that it has been obtained. <span class=\"tag-red\">\u2757 Form GFR-15 for wholly Govt-owned companies<\/span><\/span><\/li>\n <\/ul>\n <\/div>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch9r254\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 254<\/span><span class=\"rule-title\">Undertaking from Wholly-Owned Government Companies \u2014 Form GFR-32<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccb<\/span><span>For loans to wholly-owned Government Companies, a written undertaking that <strong>fixed assets of the company shall not be hypothecated without prior approval of the Government<\/strong> shall be obtained in <strong>Form GFR-32<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\u2705<\/span><span><strong>No stamp duty<\/strong> need be paid on these written undertakings. <span class=\"tag-amber\">\u2b50 No stamp duty<\/span><\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch9r255\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 255<\/span><span class=\"rule-title\">Security Requirement \u2014 One-Third Margin<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udd12<\/span><span>Loans to parties <em>other than<\/em> State Governments, wholly-owned Government Companies and Local Administration of Union Territories shall be sanctioned only against <strong>adequate security<\/strong>. Security shall ordinarily be at least <strong>33\u2153% (one-third) more than the amount of the loan<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccb<\/span><span>A competent authority may accept security of less value for <strong>adequate reasons to be recorded<\/strong>.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch9r256\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 256<\/span><span class=\"rule-title\">Utilization Certificates for Loans \u2014 Form GFR 12-B<\/span><\/div>\n\n <p class=\"sec-h\">Sub-rule (1) \u2014 Primary Responsibility<\/p>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>Where conditions are attached to the utilisation of a loan, the <strong>authority competent to sanction the loan is primarily responsible<\/strong> for certifying to the Accounts Officer that the conditions have been fulfilled. Loans to State Governments and Local Administration of UTs are excluded from this rule.<\/span><\/li>\n <\/ul>\n\n <p class=\"sec-h\">Sub-rule (2) \u2014 Key UC Provisions<\/p>\n <div class=\"box-blue\">\n <div class=\"box-blue-lbl\">\ud83d\udccc UC Rules for Loans \u2014 Key Points<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccb<\/span><span><strong>(i) Form:<\/strong> UC shall be furnished in <strong>Form GFR 12-B<\/strong> at intervals agreed between the Audit\/Accounts Officer and the Ministry\/Department.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccb<\/span><span><strong>(ii) Mandatory UC:<\/strong> A Certificate of Utilisation shall be furnished to the Accounts Officer in <strong>every case of loan made for specific purposes<\/strong>, even if no conditions are specifically attached to the grant. <strong>Not required<\/strong> where loan is not for a specific purpose\/object but is a temporary financial aid, or where loans to PSUs are for financing approved capital outlays.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccb<\/span><span><strong>(iii)\/(iv):<\/strong> Where detailed accounts are maintained by Accounts Office \u2192 UC for each individual case by sanctioning authority. Where accounts are maintained departmentally \u2192 <strong>consolidated UC<\/strong> furnished to Audit by Ministries\/Departments for total loans disbursed during each year (year-wise and object-wise break-up; sub-head-wise for Accounts Officer verification). Loans to individuals are excluded.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcc5<\/span><span><strong>(v) Target date:<\/strong> UCs shall be furnished within a reasonable time. Target date: <strong>not later than 18 months from the date of sanction of the loan<\/strong>. <span class=\"tag-red\">\u2757 UC within 18 months of sanction<\/span><\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcc5<\/span><span><strong>(vi) Consolidated UC:<\/strong> Where accounts are maintained departmentally, the 18-month period shall be reckoned from the <strong>expiry of the financial year in which the loans are disbursed<\/strong>. Therefore, consolidated UCs in respect of loans paid each year shall be furnished <strong>not later than September of the second succeeding financial year<\/strong>. <span class=\"tag-red\">\u2757 Consolidated UC by Sept of 2nd succeeding FY<\/span><\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcc5<\/span><span><strong>(vii):<\/strong> Due dates for UC submission shall be specified in the <strong>letter of sanction for loan<\/strong>. Extension only in very exceptional circumstances <strong>in consultation with MoF<\/strong> under intimation to Audit\/Accounts Officer. <strong>No further loans shall be sanctioned<\/strong> unless the sanctioning authority is satisfied about proper utilisation of earlier loans.<\/span><\/li>\n <\/ul>\n <\/div>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch9r257\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 257<\/span><span class=\"rule-title\">Loans Drawn in Instalments \u2014 Each Treated Separately<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>When a loan is drawn in instalments, <strong>each instalment shall be treated as a separate loan<\/strong> for purposes of repayment of principal and payment of interest \u2014 unless the various instalments drawn during a FY are <strong>consolidated into a single loan at the end of that FY<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcb0<\/span><span>In case of consolidation: <strong>simple interest at the prescribed rate<\/strong> on the various loan instalments from the date of drawal of each instalment to the date of their consolidation shall be separately payable by the borrower.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcc5<\/span><span>Repayment and interest shall be arranged <strong>annually on or before the anniversary date<\/strong> of drawal or consolidation of the loan. Sanctioning authority may allow a moratorium towards repayment of principal \u2014 but <strong>not for payment of interest<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>If there is undue delay on the part of the debtor in taking out the last instalment, the sanctioning authority may at any time <strong>declare the loan closed and order repayment to begin<\/strong>. The Accounts Officer shall bring any such delay to notice.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch9r258\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 258<\/span><span class=\"rule-title\">Defaults in Payment \u2014 Penal Interest<\/span><\/div>\n\n <p class=\"sec-h\">Sub-rule (1) \u2014 Penal Interest Rate<\/p>\n <div class=\"box-red\">\n <div class=\"box-red-lbl\">\u26d4 Default and Penal Interest \u2014 Rule 258(1)<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>For <strong>State\/UT Governments, wholly Govt-owned companies and PSUs:<\/strong> Loan sanctions\/undertakings\/agreements shall invariably include provision for <strong>levy of penal interest<\/strong> on overdue instalments.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>For <strong>all other cases:<\/strong> Sanctions\/agreements shall invariably stipulate a <strong>higher rate of interest<\/strong> with provision for a <strong>lower rate for punctual payments<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\u26a0\ufe0f<\/span><span>The penal\/higher rate of interest shall not, except under special orders of Government, be <strong>less than 2.5% per annum above the normal rate<\/strong>. <span class=\"tag-red\">\u2757 Minimum penal rate = normal + 2.5% p.a.<\/span><\/span><\/li>\n <\/ul>\n <\/div>\n\n <p class=\"sec-h\">Sub-rule (2) \u2014 Reporting of Default<\/p>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>Any <strong>default in payment of interest or repayment of principal<\/strong> shall be <strong>promptly reported by the Accounts Officer<\/strong> to the authority which sanctioned the loan (only for loans whose detailed accounts are kept by that Accounts Officer).<\/span><\/li>\n <\/ul>\n\n <p class=\"sec-h\">Sub-rule (3) \u2014 Interest-free and Concessional Rate Loans<\/p>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>(i) Interest-free loans<\/strong> (e.g., to technical educational institutions for hostels): Sanction letter shall provide that in the event of any default in repayment, <strong>interest at rates prescribed by Government<\/strong> will be chargeable.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>(ii) Concessional rate loans:<\/strong> The concession (difference between normal and concessional rate) shall be made <strong>conditional upon prompt repayments of principal and interest<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>(iii)<\/strong> Where subsidy is also provided along with interest-free loans, the sanction letter shall provide that in the event of default, the defaulted dues shall be <strong>recovered out of the subsidy payable<\/strong>.<\/span><\/li>\n <\/ul>\n\n <p class=\"sec-h\">Sub-rule (4) \u2014 Action on Default<\/p>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccb<\/span><span>On receipt of a default report, the authority concerned shall immediately take steps to <strong>get the default remedied<\/strong> and consider enforcement of penal\/higher rate of interest. Where the sanctioning authority is satisfied that penal\/higher interest need not be recovered, the borrower shall ordinarily be asked to pay interest at the <strong>normal rate on the overdue amount from the due date to the date of settlement<\/strong>. Recovery of additional interest shall <strong>not be waived except in special circumstances or where the period of default is very short (e.g., a few days)<\/strong>.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch9r259\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 259<\/span><span class=\"rule-title\">Irrecoverable Loans \u2014 Write-Off<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>A competent authority, after <strong>prior approval of the Ministry of Finance<\/strong>, may <strong>remit or write off any loans<\/strong> owing to their irrecoverability or otherwise. <span class=\"tag-red\">\u2757 Write-off of loans \u2192 prior MoF approval<\/span><\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch9r260\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rules 260\u2013261<\/span><span class=\"rule-title\">Accounts, Control and Audit<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udcca<\/span><span><strong>R.260:<\/strong> Detailed accounts of loans to Institutions and Organisations shall be <strong>maintained by the Accounts Officer<\/strong> who shall watch their recovery and see that the conditions attached to each loan are fulfilled (subject to directions of CAG).<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>R.261:<\/strong> The instructions in Chapter 9 relating to <strong>cost of audit of Grants-in-aid<\/strong> are applicable <em>mutatis mutandis<\/em> to loans as well.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch9r262\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 262<\/span><span class=\"rule-title\">Annual Returns \u2014 Form GFR-13 by 30 September<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udcc5<\/span><span>Each <strong>Principal Accounts Officer<\/strong> shall submit to the concerned Ministry\/Department a statement in <strong>Form GFR-13<\/strong> showing details of outstanding Central Loans borne on his books as on <strong>31st March each year<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcc5<\/span><span>This statement shall be submitted <strong>not later than the following 30th September<\/strong>. <span class=\"tag-red\">\u2757 Form GFR-13 by 30 September<\/span><\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccb<\/span><span>Statement shall indicate: aggregate outstanding balance of loans \u00b7 details of defaults in repayment of principal and\/or interest \u00b7 earliest period to which the default pertains \u2014 against each State\/UT Government, foreign Government, Railways\/Posts funds, Central PSUs and other Govt Institutions. Where detailed accounts are not maintained by the Accounts Office, the statement shall contain departmental authority-wise aggregate balances.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch9r263\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 263<\/span><span class=\"rule-title\">Annual Assessment Report \u2014 FA to MoF by 30 June<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udcc5<\/span><span><strong>Sub-rule (1):<\/strong> Administrative Ministries shall keep watch over the receipt of Annual Statements in <strong>Form GFR-20<\/strong> from the Accounts Officer. They shall conduct a close review of defaults in repayment of principal and\/or interest and take suitable measures for enforcing repayments. If statements not received in time, the <strong>Accounts Officer shall be reminded promptly<\/strong>. Ministries may also maintain centrally a list of all loan sanctions.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcc5<\/span><span><strong>Sub-rule (2) \u2014 Annual Assessment Report:<\/strong> A copy of the Annual Assessment Report on status of all outstanding loans (including timely and accurate payment of principal and interest due) shall be submitted by the <strong>Financial Adviser of the Administrative Ministry<\/strong> to the <strong>Ministry of Finance by 30th June of each financial year<\/strong>. <span class=\"tag-red\">\u2757 FA submits Annual Assessment Report to MoF by 30 June<\/span><\/span><\/li>\n <\/ul>\n <\/div>\n\n \n <div class=\"box-amber\" style=\"margin-top:36px\">\n <div class=\"box-amber-lbl\">\u2b50 Key Numbers at a Glance \u2014 Loans (Rules 246\u2013263)<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>Nodal division for loan terms: <strong>Budget Division, DEA, MoF<\/strong> (R.247)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>Every sanction must certify <strong>MoF approval for interest rate and repayment period<\/strong> (R.248)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>Modification to loan terms \u2192 <strong>prior MoF concurrence<\/strong> (R.249)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>Maximum loan term: <strong>30 years<\/strong> (R.250(1)(i))<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>Early payment \u226414 days before due date \u2192 <strong>full period interest<\/strong> payable (R.250(1)(iv))<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>Due date on holiday \u2192 next working day; except 31 March \u2192 <strong>preceding working day<\/strong> (R.250(1)(v))<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>Advance notice to loanees: <strong>Form GFR-19, ~1 month before due date<\/strong>; omission no excuse (R.250(1)(viii))<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>Security for loans (non-State\/UT\/wholly Govt co.): <strong>\u226533\u2153% above loan amount<\/strong> (R.255)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>Concession on interest rate: take form of <strong>direct subsidy<\/strong>, not reduced rate (R.253(1))<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>Form <strong>GFR-15<\/strong> \u2192 undertaking for wholly Govt-owned companies (R.253(2))<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>Form <strong>GFR-32<\/strong> \u2192 no-hypothecation undertaking for wholly Govt-owned companies \u00b7 <strong>No stamp duty<\/strong> (R.254)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>Moratorium: may be allowed for <strong>principal only<\/strong>; <strong>not for interest<\/strong> (R.252(3), R.257)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>Interest formula: <strong>Days \u00d7 Rate \u00f7 365<\/strong> (366 leap year) \u00b7 Interest for day of payment, NOT day of repayment (R.251)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>UC for loans: <strong>Form GFR 12-B<\/strong> \u00b7 Target: <strong>18 months from sanction<\/strong> \u00b7 Consolidated UC: <strong>by September of 2nd succeeding FY<\/strong> (R.256)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>No further loans until sanctioning authority is satisfied about <strong>proper utilisation of earlier loans<\/strong> (R.256(2)(vii))<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>Penal interest: minimum <strong>normal rate + 2.5% p.a.<\/strong> (R.258(1))<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>Default reported <strong>promptly by Accounts Officer<\/strong> to sanctioning authority (R.258(2))<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>Write-off of irrecoverable loans \u2192 <strong>prior MoF approval<\/strong> (R.259)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>Annual returns: <strong>Form GFR-13<\/strong> by each PAO \u00b7 by <strong>30 September<\/strong> for position as on 31 March (R.262)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>Annual Assessment Report: <strong>FA \u2192 MoF by 30 June<\/strong> \u00b7 Review against <strong>Form GFR-20<\/strong> (R.263)<\/span><\/li>\n <\/ul>\n <\/div>\n <\/div>\n\n\n <div id=\"ch10\" class=\"ch-block\">\n\n <div class=\"ch-banner\">\n <div class=\"ch-num\">Chapter 10<\/div>\n <div class=\"ch-title\">Budgeting and Accounting of Externally Aided Projects<\/div>\n <div class=\"ch-range\">Rules 264 to 274 \u00b7 Sources \u00b7 Withdrawal Procedures \u00b7 Fund Flow \u00b7 Repayment & Interest<\/div>\n <\/div>\n\n \n <div class=\"idx-outer\">\n <div class=\"idx-lbl\">Rules at a Glance<\/div>\n <table class=\"idx-table\">\n <thead><tr><th style=\"width:110px\">Rule No.<\/th><th>Rule Title<\/th><th>Key Point<\/th><\/tr><\/thead>\n <tbody>\n <tr><td class=\"r-num\">Rule 264<\/td><td class=\"r-title\">Implementation Through External Aid \u2014 Framework<\/td><td class=\"r-key\">Shown in Budget annually \u00b7 Bilateral (Govt-to-Govt) and Multilateral (World Bank etc.) sources \u00b7 DEA executes legal agreements \u00b7 CAAA implements financial covenants \u00b7 Copy of all agreements to CAAA<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 265<\/td><td class=\"r-title\">Currency of External Aid<\/td><td class=\"r-key\">Foreign currency or Indian Rupees \u00b7 Received by RBI Mumbai \u00b7 Rupee equivalent to CAAA account at RBI New Delhi \u00b7 Accounted as external loan\/grant in Consolidated Fund of India<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 266<\/td><td class=\"r-title\">Accounting of Cash Grants<\/td><td class=\"r-key\">Cash grants (not commodity\/in-kind) accounted only by CAAA, DEA<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 267(1)<\/td><td class=\"r-title\">Reimbursement Procedure<\/td><td class=\"r-key\">PIA spends first, claims later \u00b7 Special Account (Revolving Fund): Funding Agency provides 4-month estimated advance; CAAA replenishes \u00b7 Reimbursement outside Special Account: CAAA sends claims directly to Funding Agency<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 267(2)<\/td><td class=\"r-title\">Direct Payment Procedure<\/td><td class=\"r-key\">Funding Agency pays contractor\/supplier\/consultant directly \u00b7 CAAA recovers Rupee equivalent from PIA\/State Govts<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 268<\/td><td class=\"r-title\">Fund Flow for State Projects<\/td><td class=\"r-key\">State provides budget provision \u00b7 Under Reimbursement: CAAA consolidates State-wise \u2192 Plan Finance Div \u2192 IG Advice \u2192 RBI credits State account \u00b7 Under Direct Payment: CAAA works out Rupee equivalent (RBI buying rate on value date) \u2192 Plan Finance Div sanctions release & simultaneous recovery<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 269<\/td><td class=\"r-title\">Fund Flow for Central \/ CSS Projects<\/td><td class=\"r-key\">EAP funds under separate budget head \u00b7 Ministry\/Dept releases funds to PIA within 6 weeks of expenditure incurred<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 270<\/td><td class=\"r-title\">Fund Flow for PSUs \/ Financial Institutions<\/td><td class=\"r-key\">Admin Ministry provides funds in budget \u00b7 PIA submits claims to CAAA \u00b7 Ministry releases after CAAA certification \u00b7 If PSU negotiates loan directly \u2192 funds flow directly to that entity<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 271<\/td><td class=\"r-title\">Repayment of Loans<\/td><td class=\"r-key\">CAAA responsible for prompt repayment on due date \u00b7 Through designated Public Sector Commercial Banks and RBI \u00b7 Classified as charged expenditure \u00b7 Further on-lent amounts \u2192 recovery by respective Ministry\/Dept<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 272<\/td><td class=\"r-title\">Interest Payments<\/td><td class=\"r-key\">On due date as per agreement \u00b7 Debited under Major Head '2049-Interest Payments' in CF \u00b7 Classified as charged expenditure<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 273<\/td><td class=\"r-title\">Accounting of Exchange Variation<\/td><td class=\"r-key\">Exchange variation on fully repaid loans \u2192 adjusted\/written off to '8680-Miscellaneous Government Accounts' as per GAR and CGA procedures<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 274<\/td><td class=\"r-title\">Aid in Form of Materials and Equipment<\/td><td class=\"r-key\">Funding Agency advises Ministry of materials supplied with value \u00b7 Ministry intimates CAAA for budget provision \u00b7 Under Major Head '3606-Aid Materials and Equipment'<\/td><\/tr>\n <\/tbody>\n <\/table>\n <\/div>\n\n \n <div style=\"background:#f0f4ff;border-left:5px solid #1a3a6b;padding:10px 18px;border-radius:0 6px 6px 0;margin:10px 0;font-weight:700;color:#1a3a6b;font-size:14px;letter-spacing:.04em;text-transform:uppercase\">Framework and Sources of External Aid \u2014 Rules 264\u2013266<\/div>\n\n \n <div class=\"rule-block\" id=\"ch10r264\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 264<\/span>\n <span class=\"rule-title\">Implementation of Projects through External Aid \u2014 Four Sub-rules<\/span>\n <\/div>\n\n <div class=\"sec-h\">Sub-rule (1) \u2014 Shown in Annual Budget<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83c\udfdb\ufe0f<\/span><span>The projects or schemes of the Government of India to be implemented through external aid shall be <strong>shown in the budget proposals approved annually by Parliament<\/strong>.<\/span><\/li>\n <\/ul>\n\n <div class=\"sec-h\">Sub-rule (2) \u2014 Two Sources of External Aid<\/div>\n <div class=\"box-blue\">\n <div class=\"box-blue-lbl\">\ud83d\udccc Bilateral vs Multilateral Aid<\/div>\n <table style=\"width:100%;border-collapse:collapse;font-size:14px;margin-top:6px\">\n <thead>\n <tr style=\"background:#1a3a6b;color:#fff\">\n <th style=\"padding:8px 12px;text-align:left\">Type<\/th>\n <th style=\"padding:8px 12px;text-align:left\">Description<\/th>\n <th style=\"padding:8px 12px;text-align:left\">Agreement Type<\/th>\n <\/tr>\n <\/thead>\n <tbody>\n <tr style=\"background:#f0f6ff;border-bottom:1px solid #d0dcef\">\n <td style=\"padding:8px 12px\"><strong>Bilateral<\/strong><\/td>\n <td style=\"padding:8px 12px\">One country funds specific project(s) of another country<\/td>\n <td style=\"padding:8px 12px\"><strong>Government-to-Government agreement<\/strong><\/td>\n <\/tr>\n <tr style=\"background:#e8f0ff\">\n <td style=\"padding:8px 12px\"><strong>Multilateral<\/strong><\/td>\n <td style=\"padding:8px 12px\">Multi-lateral Funding Agencies \u2014 e.g. <strong>World Bank<\/strong><\/td>\n <td style=\"padding:8px 12px\">Agreement between <strong>borrower (GoI)<\/strong> and the Multilateral Funding Agency<\/td>\n <\/tr>\n <\/tbody>\n <\/table>\n <\/div>\n\n <div class=\"sec-h\">Sub-rule (3) \u2014 Who Executes Legal Agreements<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udcdc<\/span><span>The <strong>Department of Economic Affairs (DEA), Ministry of Finance<\/strong> as the <strong>nodal agency<\/strong> shall execute the legal agreement for loans or grants from external funding agencies.<\/span><\/li>\n <li><span class=\"bi\">\u2705<\/span><span><strong>Exception:<\/strong> Grant agreements for <strong>Technical Assistance<\/strong> can also be executed by the <strong>beneficiary Ministries or Departments with the approval of DEA, MoF<\/strong>.<\/span><\/li>\n <\/ul>\n\n <div class=\"sec-h\">Sub-rule (4) \u2014 Role of Controller of Aid Accounts and Audit (CAAA)<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83c\udfe6<\/span><span>The <strong>Office of the Controller of Aid Accounts and Audit (CAAA)<\/strong> in the Department of Economic Affairs, MoF shall be responsible for <strong>implementing the financial covenants<\/strong> laid down in the agreements.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccb<\/span><span>A <strong>copy of all such agreements<\/strong> shall be sent to the Office of CAAA, DEA for this purpose.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch10r265\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 265<\/span>\n <span class=\"rule-title\">Currency of External Aid \u2014 Flow of Funds<\/span>\n <\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udcb1<\/span><span>External aid shall flow from the Funding Agency in <strong>foreign currency or Indian Rupees<\/strong> and shall be <strong>received by the Reserve Bank of India, Mumbai<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udd04<\/span><span>RBI Mumbai shall remit the <strong>Rupee equivalent to the account of Controller, Aid Accounts and Audit, DEA at RBI New Delhi<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcd2<\/span><span>The remittances shall be accounted as <strong>external loan \/ Grant receipts in the Consolidated Fund of India<\/strong>.<\/span><\/li>\n <\/ul>\n <div class=\"box-blue\">\n <div class=\"box-blue-lbl\">\ud83d\udccc Flow of External Aid<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\u27a1\ufe0f<\/span><span><strong>Funding Agency \u2192 RBI Mumbai<\/strong> (foreign currency\/INR) \u2192 <strong>Rupee equivalent \u2192 CAAA account at RBI New Delhi<\/strong> \u2192 Credited as external loan\/grant in <strong>Consolidated Fund of India<\/strong><\/span><\/li>\n <\/ul>\n <\/div>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch10r266\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 266<\/span>\n <span class=\"rule-title\">Accounting of Cash Grants<\/span>\n <\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udcb0<\/span><span><strong>Cash grants<\/strong> \u2014 as distinct from commodity grants or other assistance in kind received from external sources \u2014 shall be <strong>accounted for only by the office of Controller of Aid Accounts and Audit, Department of Economic Affairs<\/strong>.<\/span><\/li>\n <\/ul>\n <div class=\"box-amber\">\n <div class=\"box-amber-lbl\">\u2b50 Cash Grant vs In-Kind Aid<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udcb5<\/span><span><strong>Cash Grants:<\/strong> Accounted exclusively by CAAA, DEA (Rule 266)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udce6<\/span><span><strong>Aid in form of Materials\/Equipment:<\/strong> Ministry is intimated by Funding Agency; Ministry then intimates CAAA for budget provision (Rule 274)<\/span><\/li>\n <\/ul>\n <\/div>\n <\/div>\n\n \n <div style=\"background:#e8f0ff;border-left:5px solid #1a3a6b;padding:10px 18px;border-radius:0 6px 6px 0;margin:44px 0 10px;font-weight:700;color:#1a3a6b;font-size:14px;letter-spacing:.04em;text-transform:uppercase\">Withdrawal Procedures \u2014 Rule 267<\/div>\n\n \n <div class=\"rule-div\" style=\"margin-top:8px\"><\/div>\n <div class=\"rule-block\" id=\"ch10r267\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 267<\/span>\n <span class=\"rule-title\">Two Procedures for Withdrawal of Funds<\/span>\n <\/div>\n <p style=\"margin-bottom:13px;color:#444;font-size:15px\">Administrative Ministries\/Departments must make provision of funds under the relevant head of account as <strong>'External Aided Component'<\/strong> in their Detailed Demands for Grants. There are two main procedures for withdrawal:<\/p>\n\n <div class=\"sec-h\">Sub-rule (1) \u2014 Reimbursement Procedure<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udd04<\/span><span>Under the reimbursement procedure, the <strong>Project Implementing Agency (PIA) shall initially spend or incur expenditure<\/strong> and subsequently claim the amount from the Funding Agency through the office of the CAAA.<\/span><\/li>\n <\/ul>\n <div class=\"box-blue\">\n <div class=\"box-blue-lbl\">\u26a0\ufe0f Two Types of Reimbursement<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">1\ufe0f\u20e3<\/span><span><strong>Reimbursement through Special Account (Revolving Fund Scheme):<\/strong>\n <ul style=\"margin-top:6px;list-style:none;padding:0\">\n <li style=\"padding:4px 0 4px 12px;border-left:3px solid #4a90d9\">Funding Agency disburses estimated expenditure of <strong>4 months<\/strong> as an initial advance to GoI after loan is declared effective. <span class=\"tag-red\">\u2757 4-month advance<\/span><\/li>\n <li style=\"padding:4px 0 4px 12px;border-left:3px solid #4a90d9\">Initial deposit (in US Dollars) \u2192 received by RBI Mumbai \u2192 Rupee equivalent passed to CAAA via Government Foreign Transaction (GFT) advice.<\/li>\n <li style=\"padding:4px 0 4px 12px;border-left:3px solid #4a90d9\">On receipt of reimbursement claims from PIA, CAAA advises RBI Mumbai to <strong>debit the Special Account<\/strong> with US Dollar equivalent of the eligible claim.<\/li>\n <li style=\"padding:4px 0 4px 12px;border-left:3px solid #4a90d9\">CAAA consolidates all claims and submits to Funding Agency for <strong>replenishment<\/strong> of Special Account, along with a statement of debits and credits by RBI Mumbai and supporting documents from PIA.<\/li>\n <\/ul>\n <\/span><\/li>\n <li><span class=\"bi\">2\ufe0f\u20e3<\/span><span style=\"margin-top:8px;display:block\"><strong>Reimbursement outside Special Account:<\/strong>\n <ul style=\"margin-top:6px;list-style:none;padding:0\">\n <li style=\"padding:4px 0 4px 12px;border-left:3px solid #4a90d9\">Used where <strong>no Special Account provision in the agreement<\/strong> or when the balance in the Special Account is 'Nil'.<\/li>\n <li style=\"padding:4px 0 4px 12px;border-left:3px solid #4a90d9\">CAAA sends reimbursement claims received from PIA <strong>directly to the Funding Agency<\/strong> after checking eligibility.<\/li>\n <li style=\"padding:4px 0 4px 12px;border-left:3px solid #4a90d9\">Funding Agency disburses eligible amount to borrower's account with RBI Mumbai \u2192 Rupee equivalent passed to CAAA at RBI New Delhi via GFT advice.<\/li>\n <\/ul>\n <\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"sec-h\">Sub-rule (2) \u2014 Direct Payment Procedure<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\u27a1\ufe0f<\/span><span>Under this procedure, the Funding Agency \u2014 on the request of the PIA (received through CAAA) and duly supported by relevant documents \u2014 <strong>directly pays the contractor, supplier or consultant<\/strong> from the loan\/credit\/grant account.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udce2<\/span><span>The Funding Agency apprises <strong>both CAAA and the PIA<\/strong> of the particulars of the payment made.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcb1<\/span><span>CAAA shall work out the <strong>Rupee equivalent<\/strong> of the foreign currency payment and <strong>recover this Rupee equivalent from the PIAs or State Governments<\/strong> which availed of the Direct Payment Procedure.<\/span><\/li>\n <\/ul>\n <div class=\"box-amber\">\n <div class=\"box-amber-lbl\">\u2b50 Reimbursement vs Direct Payment \u2014 Key Difference<\/div>\n <table style=\"width:100%;border-collapse:collapse;font-size:14px;margin-top:6px\">\n <thead>\n <tr style=\"background:#c9a227;color:#1a3400\">\n <th style=\"padding:8px 12px;text-align:left\">Feature<\/th>\n <th style=\"padding:8px 12px;text-align:left\">Reimbursement<\/th>\n <th style=\"padding:8px 12px;text-align:left\">Direct Payment<\/th>\n <\/tr>\n <\/thead>\n <tbody>\n <tr style=\"background:#fffdf0;border-bottom:1px solid #e8e0c0\">\n <td style=\"padding:8px 12px\"><strong>Who pays first?<\/strong><\/td>\n <td style=\"padding:8px 12px\">PIA pays first, then claims back<\/td>\n <td style=\"padding:8px 12px\">Funding Agency pays directly<\/td>\n <\/tr>\n <tr style=\"background:#fff8e8;border-bottom:1px solid #e8e0c0\">\n <td style=\"padding:8px 12px\"><strong>Paid to whom?<\/strong><\/td>\n <td style=\"padding:8px 12px\">GoI\/PIA's account<\/td>\n <td style=\"padding:8px 12px\">Contractor\/Supplier\/Consultant directly<\/td>\n <\/tr>\n <tr style=\"background:#fffdf0\">\n <td style=\"padding:8px 12px\"><strong>Rupee equivalent<\/strong><\/td>\n <td style=\"padding:8px 12px\">Credited to CAAA via GFT advice<\/td>\n <td style=\"padding:8px 12px\">Recovered by CAAA from PIA\/State Govt<\/td>\n <\/tr>\n <\/tbody>\n <\/table>\n <\/div>\n <\/div>\n\n \n <div style=\"background:#f0faf5;border-left:5px solid #2aab6e;padding:10px 18px;border-radius:0 6px 6px 0;margin:44px 0 10px;font-weight:700;color:#1a6b5a;font-size:14px;letter-spacing:.04em;text-transform:uppercase\">Fund Flow \u2014 Rules 268\u2013270<\/div>\n\n \n <div class=\"rule-div\" style=\"margin-top:8px\"><\/div>\n <div class=\"rule-block\" id=\"ch10r268\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 268<\/span>\n <span class=\"rule-title\">Fund Flow for State Projects financed from External Aid<\/span>\n <\/div>\n\n <div class=\"sec-h\">Sub-rule (1) \u2014 State Budget Provision<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83c\udfdb\ufe0f<\/span><span>Respective Departments of the State Government shall provide in the Budget the expenditure proposed to be incurred under <strong>Plan Schemes<\/strong> during the financial year by PIAs under State projects financed from external aid sources.<\/span><\/li>\n <\/ul>\n\n <div class=\"sec-h\">Sub-rule (2) \u2014 Fund Flow under Reimbursement Procedure (State Projects)<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udd04<\/span><span>CAAA consolidates disbursements <strong>State-wise at periodical intervals<\/strong> under each loan\/credit \u2192 sends details to <strong>Plan Finance Division, Department of Expenditure, MoF<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccb<\/span><span>Plan Finance Division issues <strong>sanctions for actual release<\/strong> to respective State Governments. A copy is endorsed to the Finance Department of the concerned State.<\/span><\/li>\n <li><span class=\"bi\">\ud83c\udfe6<\/span><span>The office of the <strong>Chief Controller of Accounts, MoF<\/strong> issues an <strong>Inter-Government (IG) Advice to RBI, Central Accounts Section, Nagpur<\/strong> \u2014 the State Government's account at RBI, CAS Nagpur is credited, completing the fund flow cycle.<\/span><\/li>\n <\/ul>\n\n <div class=\"sec-h\">Sub-rule (3) \u2014 Fund Flow under Direct Payment Procedure (State Projects)<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udcb1<\/span><span>CAAA works out the Rupee equivalent of Direct Payments based on <strong>RBI buying rate applicable for the value date on which the Direct Payment was made<\/strong>. <span class=\"tag-amber\">\u2b50 RBI buying rate on value date<\/span><\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcca<\/span><span>CAAA consolidates disbursements State-wise and requests Plan Finance Division to release the amount to the State <strong>notionally and simultaneously recover the same<\/strong> for credit back to CAAA's account.<\/span><\/li>\n <li><span class=\"bi\">\ud83c\udfe6<\/span><span>The Chief Controller of Accounts, MoF advises RBI, CAS Nagpur to make necessary <strong>adjustment entries<\/strong> in the accounts of the concerned State \u2014 completing the Direct Payment fund flow cycle.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch10r269\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 269<\/span>\n <span class=\"rule-title\">Fund Flow for Central \/ Centrally Sponsored Projects<\/span>\n <\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83c\udfdb\ufe0f<\/span><span>Under Central or Centrally Sponsored Projects (CSS) financed from external aid, the disbursement process is the same as explained in <strong>Rule 267<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccb<\/span><span>The respective Ministry or Department gets <strong>EAP (Externally Aided Project) funds under a separate budget head<\/strong> when Demands for Grants are passed in Parliament and advised by the Budget Division, MoF.<\/span><\/li>\n <li><span class=\"bi\">\u23f0<\/span><span>The funds shall be released to the <strong>Project Implementing Agency within six weeks<\/strong> by the administrative Ministry or Department with reference to expenditure incurred by the PIA. <span class=\"tag-red\">\u2757 6 weeks for release<\/span><\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch10r270\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 270<\/span>\n <span class=\"rule-title\">Fund Flow for PSUs and Financial Institutions<\/span>\n <\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83c\udfed<\/span><span>When the PIA under a Loan\/Credit Agreement is a <strong>Public Sector or Financial Institution or Autonomous Body<\/strong> and GoI is the Borrower:\n <ul class=\"blist-sub\">\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span>The <strong>Administrative Ministry<\/strong> concerned provides in its budget funds required to be passed on to the PIA.<\/span><\/li>\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span>The PIA submits claims to CAAA under reimbursement or direct payment procedures.<\/span><\/li>\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span>The concerned Ministry\/Department <strong>releases the amount to PIA based on the certification of disbursement<\/strong> received from the Funding Agency, as certified by CAAA.<\/span><\/li>\n <\/ul>\n <\/span><\/li>\n <li><span class=\"bi\">\u2705<\/span><span><strong>Exception:<\/strong> Where the loan is <strong>negotiated directly by a PSU or Financial Institution<\/strong>, the funds from the Funding Agency shall <strong>flow directly to the borrowing entity<\/strong>.<\/span><\/li>\n <\/ul>\n <\/div>\n\n \n <div style=\"background:#fffbe6;border-left:5px solid #c9a227;padding:10px 18px;border-radius:0 6px 6px 0;margin:44px 0 10px;font-weight:700;color:#7a5500;font-size:14px;letter-spacing:.04em;text-transform:uppercase\">Repayment, Interest and Accounting \u2014 Rules 271\u2013274<\/div>\n\n \n <div class=\"rule-div\" style=\"margin-top:8px\"><\/div>\n <div class=\"rule-block\" id=\"ch10r271\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 271<\/span>\n <span class=\"rule-title\">Repayment of Loans<\/span>\n <\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udcc5<\/span><span>The <strong>CAAA shall be responsible for prompt repayment of principal on the due date<\/strong> as per the agreements.<\/span><\/li>\n <li><span class=\"bi\">\ud83c\udfe6<\/span><span>Remittance of foreign currency is arranged through <strong>designated Public Sector Commercial Banks and RBI<\/strong>. The Rupee equivalent of foreign currency remitted is debited to CAAA's account.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcd2<\/span><span>On receipt of the advice from RBI New Delhi, CAAA shall <strong>debit the concerned loan account in the Consolidated Fund of India<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\u26a0\ufe0f<\/span><span>The repayment of loans shall be classified as <strong>Charged Expenditure<\/strong>. <span class=\"tag-amber\">\u2b50 Charged expenditure<\/span><\/span><\/li>\n <li><span class=\"bi\">\ud83d\udd04<\/span><span>In cases where EAP funds are <strong>further passed on as loans<\/strong>, the <strong>recovery of the loan along with interest shall be the responsibility of the respective administrative Ministry or Department<\/strong>.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch10r272\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 272<\/span>\n <span class=\"rule-title\">Interest Payments on External Loans<\/span>\n <\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udcc5<\/span><span>Interest on external loans shall be paid <strong>on the due date<\/strong> as stipulated in the loan\/credit agreements against the <strong>budget provision made for this purpose<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcd2<\/span><span>Interest payments shall be accounted for as debit under <strong>Major Head '2049 \u2014 Interest Payments'<\/strong> for external loans in the Consolidated Fund of India. <span class=\"tag-amber\">\u2b50 MH 2049<\/span><\/span><\/li>\n <li><span class=\"bi\">\ud83d\udd04<\/span><span>The procedure for transfer of amount shall be the <strong>same as followed in the case of repayment of loans<\/strong> (Rule 271).<\/span><\/li>\n <li><span class=\"bi\">\u26a0\ufe0f<\/span><span>Interest payment shall be classified as <strong>Charged Expenditure<\/strong>.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch10r273\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 273<\/span>\n <span class=\"rule-title\">Accounting of Exchange Variation<\/span>\n <\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udcb1<\/span><span>The <strong>exchange variation in respect of foreign loans that have been fully repaid<\/strong> shall be adjusted and written off to <strong>\"8680 \u2014 Miscellaneous Government Accounts \u2014 Write off\"<\/strong> in terms of Government Accounting Rules and the procedures prescribed by <strong>CGA in consultation with CAG<\/strong>.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch10r274\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 274<\/span>\n <span class=\"rule-title\">Aid in Form of Materials and Equipment<\/span>\n <\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udce6<\/span><span>In cases where <strong>materials, equipment and other commodities \u2014 without involving any cash inflow<\/strong> \u2014 are received as aid from foreign countries, the <strong>Funding Agency issues an advice<\/strong> to the concerned Ministry or Department giving details of materials supplied along with the value thereof.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccb<\/span><span>The Ministry or Department concerned shall in turn <strong>intimate the details to CAAA, DEA for making the budget provision<\/strong> in regard to aid material or equipment.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcd2<\/span><span>Accounted under <strong>Major Head '3606 \u2014 Aid Materials and Equipment'<\/strong> \u2014 refer Para 4.8.1 of the Civil Accounts Manual for detailed adjustment procedure. <span class=\"tag-amber\">\u2b50 MH 3606<\/span><\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"box-amber\" style=\"margin-top:36px\">\n <div class=\"box-amber-lbl\">\u2b50 Key Players \u2014 Chapter 10 Quick Reference<\/div>\n <table style=\"width:100%;border-collapse:collapse;font-size:14px;margin-top:8px\">\n <thead>\n <tr style=\"background:#c9a227;color:#1a3400\">\n <th style=\"padding:8px 12px;text-align:left\">Player<\/th>\n <th style=\"padding:8px 12px;text-align:left\">Role<\/th>\n <\/tr>\n <\/thead>\n <tbody>\n <tr style=\"background:#fffdf0;border-bottom:1px solid #e8e0c0\">\n <td style=\"padding:8px 12px\"><strong>DEA (Nodal Agency)<\/strong><\/td>\n <td style=\"padding:8px 12px\">Executes legal agreements for loans\/grants \u00b7 TA grants by beneficiary Ministry with DEA approval<\/td>\n <\/tr>\n <tr style=\"background:#fff8e8;border-bottom:1px solid #e8e0c0\">\n <td style=\"padding:8px 12px\"><strong>CAAA<\/strong><\/td>\n <td style=\"padding:8px 12px\">Implements financial covenants \u00b7 Processes withdrawal claims \u00b7 Accounts cash grants \u00b7 Responsible for loan repayment \u00b7 Recovers Rupee equivalent from PIAs under Direct Payment<\/td>\n <\/tr>\n <tr style=\"background:#fffdf0;border-bottom:1px solid #e8e0c0\">\n <td style=\"padding:8px 12px\"><strong>RBI Mumbai<\/strong><\/td>\n <td style=\"padding:8px 12px\">Receives foreign currency\/INR from Funding Agency \u00b7 Maintains Special Account proforma \u00b7 Issues GFT advice<\/td>\n <\/tr>\n <tr style=\"background:#fff8e8;border-bottom:1px solid #e8e0c0\">\n <td style=\"padding:8px 12px\"><strong>RBI New Delhi<\/strong><\/td>\n <td style=\"padding:8px 12px\">CAAA's account maintained here \u00b7 Receives Rupee equivalent from Mumbai<\/td>\n <\/tr>\n <tr style=\"background:#fffdf0;border-bottom:1px solid #e8e0c0\">\n <td style=\"padding:8px 12px\"><strong>Plan Finance Div, DoE<\/strong><\/td>\n <td style=\"padding:8px 12px\">Issues sanctions for release of funds to State Governments<\/td>\n <\/tr>\n <tr style=\"background:#fff8e8;border-bottom:1px solid #e8e0c0\">\n <td style=\"padding:8px 12px\"><strong>CCA, MoF<\/strong><\/td>\n <td style=\"padding:8px 12px\">Issues Inter-Government (IG) Advice to RBI CAS Nagpur for State fund releases<\/td>\n <\/tr>\n <tr style=\"background:#fffdf0\">\n <td style=\"padding:8px 12px\"><strong>RBI CAS, Nagpur<\/strong><\/td>\n <td style=\"padding:8px 12px\">Credits State Government accounts on receipt of IG Advice<\/td>\n <\/tr>\n <\/tbody>\n <\/table>\n <\/div>\n\n <div class=\"box-amber\" style=\"margin-top:20px\">\n <div class=\"box-amber-lbl\">\u2b50 Numbers and Heads to Remember \u2014 Chapter 10<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>4-month advance<\/strong> \u2014 Initial advance under Revolving Fund (Special Account) Scheme (R.267)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>6 weeks<\/strong> \u2014 Ministry\/Dept must release EAP funds to PIA for Central\/CSS projects (R.269)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>RBI buying rate on value date<\/strong> \u2014 basis for Rupee equivalent calculation under Direct Payment for States (R.268)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>Major Head 2049<\/strong> \u2014 Interest payments on external loans in CF of India (R.272)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>Major Head 3606<\/strong> \u2014 Aid Materials and Equipment (R.274)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>Head 8680<\/strong> \u2014 Exchange variation on fully repaid foreign loans written off (R.273)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>Charged expenditure<\/strong> \u2014 both loan repayment (R.271) and interest payment (R.272)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>GFT Advice<\/strong> \u2014 Government Foreign Transaction advice used to transfer Rupee equivalent from RBI Mumbai to CAAA account at RBI New Delhi<\/span><\/li>\n <\/ul>\n <\/div>\n <\/div>\n\n <div id=\"ch11\" class=\"ch-block\">\n\n <div class=\"ch-banner\">\n <div class=\"ch-num\">Chapter 11<\/div>\n <div class=\"ch-title\">Government Guarantees<\/div>\n <div class=\"ch-range\">Rules 275 to 283 \u00b7 Power \u00b7 Objectives \u00b7 Guidelines \u00b7 Fees \u00b7 Execution \u00b7 Review \u00b7 Invocation<\/div>\n <\/div>\n\n \n <div class=\"idx-outer\">\n <div class=\"idx-lbl\">Rules at a Glance<\/div>\n <table class=\"idx-table\">\n <thead><tr><th style=\"width:110px\">Rule No.<\/th><th>Rule Title<\/th><th>Key Point<\/th><\/tr><\/thead>\n <tbody>\n <tr><td class=\"r-num\">Rule 275<\/td><td class=\"r-title\">Power to Give and Limits on Guarantees<\/td><td class=\"r-key\">Art.292 of Constitution \u00b7 Subject to FRBM Act limits \u00b7 Powers vest with Budget Division, DEA (including external borrowings)<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 276<\/td><td class=\"r-title\">Objectives of Government Guarantees<\/td><td class=\"r-key\">3 objectives \u2014 Improve project viability \u00b7 Enable PSUs to borrow at lower rates \u00b7 Fulfill precondition for concessional bilateral\/multilateral loans<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 277<\/td><td class=\"r-title\">Guidelines for Grant of GoI Guarantee (14 sub-clauses)<\/td><td class=\"r-key\">Must be justified in public interest \u00b7 FA consultation \u00b7 Risk assessment independently \u00b7 Budget Division, DEA approval mandatory \u00b7 Data in Form GFR-26 \u00b7 Principal + normal interest only \u00b7 Only to Central PSUs\/agencies \u00b7 NOT to private sector \u00b7 NOT for ECBs normally \u00b7 NOT for grants \u00b7 Not for low-priority objectives \u00b7 Not for financially strong CPSEs<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 278<\/td><td class=\"r-title\">Borrowings by CPSUs from Multilateral Agencies<\/td><td class=\"r-key\">Direct borrowings without GoI intermediation \u00b7 GoI guarantee \u2192 prior Budget Division approval \u00b7 Guarantee fee on principal outstanding \u00b7 GoI covers principal + normal interest only \u00b7 Exchange rate risk shared between borrower and lender<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 279<\/td><td class=\"r-title\">Levy of Guarantee Fees<\/td><td class=\"r-key\">Rates notified by Budget Division, DEA (Appendix-12) \u00b7 Levied before guarantee and every 1st April on outstanding amount \u00b7 Default \u2192 double the normal rate \u00b7 Guarantee limit normally 80% of project loan \u00b7 100% only in exceptional cases where entity discharges Govt function<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 280<\/td><td class=\"r-title\">Execution of Government Guarantees<\/td><td class=\"r-key\">Executed and monitored by Administrative Ministry \u00b7 Back-to-back agreement with borrower mandatory \u00b7 No inconsistency with MoF approval \u00b7 Deviations \u2192 separate case to Budget Division \u00b7 Must be executed in same financial year as approval \u00b7 Guarantee for specific purpose only \u00b7 Non-transferable \u00b7 FA maintains records and reports<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 281<\/td><td class=\"r-title\">Review of Guarantees<\/td><td class=\"r-key\">Annual review by FA \u00b7 Copy of review report to Budget Division by 30th April \u00b7 Register of guarantees in Form GFR-25 maintained by FA \u00b7 Updated data sent to Budget Division by 10th April \u00b7 6 categories of guarantee classification<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 282<\/td><td class=\"r-title\">Accounting for Guarantees<\/td><td class=\"r-key\">FRBM Rule 6 \u2192 disclosure statement in Receipt Budget \u00b7 Compiled by Admin Ministries \u2192 CGA \u2192 Budget Division \u00b7 Must tally with Detailed DFG and Finance Accounts \u00b7 Compliant with IGAS-1<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 283<\/td><td class=\"r-title\">Invocation of Guarantee<\/td><td class=\"r-key\">Guarantee Redemption Fund (GRF) in Public Account \u00b7 Funded through budgetary appropriations under DEA's DFG \u00b7 Admin Ministry to inform Budget Division in advance of likely invocation \u00b7 On invocation \u2192 sanction loan to borrower equal to guarantee outstanding \u00b7 Finally charged to GRF in Public Account<\/td><\/tr>\n <\/tbody>\n <\/table>\n <\/div>\n\n \n <div style=\"background:#f0f4ff;border-left:5px solid #1a3a6b;padding:10px 18px;border-radius:0 6px 6px 0;margin:10px 0;font-weight:700;color:#1a3a6b;font-size:14px;letter-spacing:.04em;text-transform:uppercase\">Power, Limits and Objectives \u2014 Rules 275\u2013276<\/div>\n\n \n <div class=\"rule-block\" id=\"ch11r275\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 275<\/span>\n <span class=\"rule-title\">Power to Give and Limits on Government Guarantees<\/span>\n <\/div>\n <div class=\"sec-h\">Sub-rule (1) \u2014 Constitutional and Statutory Basis<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\u2696\ufe0f<\/span><span>The power of the Union Government to give guarantees emanates from and is subject to such limits as may be fixed in terms of <strong>Article 292 of the Constitution of India<\/strong>, the <strong>Fiscal Responsibility and Budget Management (FRBM) Act<\/strong> and Rules framed thereunder.<\/span><\/li>\n <\/ul>\n <div class=\"sec-h\">Sub-rule (2) \u2014 FRBM Aggregate Limit<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udd12<\/span><span>In terms of the FRBM Act and Rules, the Central Government shall not give guarantees <strong>aggregating the amount prescribed therein<\/strong>. The FRBM sets a ceiling on the total outstanding guarantees at any time.<\/span><\/li>\n <\/ul>\n <div class=\"sec-h\">Sub-rule (3) \u2014 Who Holds the Power<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83c\udfdb\ufe0f<\/span><span>Powers to grant <strong>Government of India Guarantee, including those on external borrowings, vest with the Budget Division, Department of Economic Affairs (DEA)<\/strong>. <span class=\"tag-red\">\u2757 Budget Division, DEA<\/span><\/span><\/li>\n <\/ul>\n <div class=\"box-blue\">\n <div class=\"box-blue-lbl\">\ud83d\udccc Constitutional Basis \u2014 Art. 292<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\u2696\ufe0f<\/span><span><strong>Article 292:<\/strong> The executive power of the Union extends to the giving of guarantees upon the security of the Consolidated Fund of India within such limits, if any, as may be fixed by Parliament by law.<\/span><\/li>\n <\/ul>\n <\/div>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch11r276\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 276<\/span>\n <span class=\"rule-title\">Three Objectives of Government Guarantees<\/span>\n <\/div>\n <p style=\"margin-bottom:13px;color:#444;font-size:15px\">The sovereign guarantee is normally extended for the purpose of achieving the following <strong>three objectives<\/strong>:<\/p>\n <ul class=\"blist\">\n <li><span class=\"bi\">1\ufe0f\u20e3<\/span><span>To <strong>improve viability of projects or activities<\/strong> undertaken by central entities with significant social and economic benefits.<\/span><\/li>\n <li><span class=\"bi\">2\ufe0f\u20e3<\/span><span>To enable <strong>Central Public Sector companies to raise resources at lower interest charges<\/strong> or on more favourable terms.<\/span><\/li>\n <li><span class=\"bi\">3\ufe0f\u20e3<\/span><span>To fulfil the requirement in cases where <strong>sovereign guarantee is a precondition for concessional loans from bilateral\/multilateral agencies<\/strong> to Central Public Sector companies\/agencies.<\/span><\/li>\n <\/ul>\n <\/div>\n\n \n <div style=\"background:#e8f0ff;border-left:5px solid #1a3a6b;padding:10px 18px;border-radius:0 6px 6px 0;margin:44px 0 10px;font-weight:700;color:#1a3a6b;font-size:14px;letter-spacing:.04em;text-transform:uppercase\">Guidelines for Grant of GoI Guarantee \u2014 Rule 277<\/div>\n\n \n <div class=\"rule-div\" style=\"margin-top:8px\"><\/div>\n <div class=\"rule-block\" id=\"ch11r277\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 277<\/span>\n <span class=\"rule-title\">Guidelines for Grant of GoI Guarantee \u2014 14 Sub-clauses<\/span>\n <\/div>\n\n <div class=\"sec-h\">(i) Must Be Justified in Public Interest<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83c\udfdb\ufe0f<\/span><span>A proposal for guarantee must be <strong>justified in public interest<\/strong> \u2014 such as borrowings by Central Public Sector institutions for approved development purposes or borrowings by CPSUs from Banks for working capital and other purposes.<\/span><\/li>\n <\/ul>\n\n <div class=\"sec-h\">(ii) Examination \u2014 Four Considerations<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udd0d<\/span><span>The Administrative Ministry\/Department or Credit Divisions of DEA shall examine the proposal <strong>in consultation with the Financial Adviser<\/strong>, in the same manner as a proposal for loan. Four considerations:\n <ul class=\"blist-sub\">\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span><strong>(a)<\/strong> Public interest the guarantee is expected to serve<\/span><\/li>\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span><strong>(b)<\/strong> <strong>Credit worthiness of the borrower<\/strong> \u2014 to ensure no undue risk<\/span><\/li>\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span><strong>(c)<\/strong> Terms of the borrowing shall take into account the <strong>yields as applicable on Government paper of similar maturity<\/strong><\/span><\/li>\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span><strong>(d)<\/strong> Conditions prescribed in the guarantee order\/agreement to ensure continued credit worthiness<\/span><\/li>\n <\/ul>\n <\/span><\/li>\n <\/ul>\n\n <div class=\"sec-h\">(iii) Independent Risk Assessment \u2014 Mandatory<\/div>\n <div class=\"box-red\">\n <span style=\"font-size:18px;flex-shrink:0;margin-top:2px\">\u26a0\ufe0f<\/span>\n <span>Risk associated with assumption of a new contingent liability\/guarantee, including the <strong>probability of future payouts, shall be thoroughly assessed<\/strong>. This assessment should <strong>ideally be entrusted to an independent unit<\/strong> and should be undertaken even when a higher authority has already decided to provide guarantees. The assessment should reveal an accurate picture of the financial condition of the entity and risks of implementation, to estimate funds needed to meet contingent liabilities in current or future budgets.<\/span>\n <\/div>\n\n <div class=\"sec-h\">(iv) Budget Division, DEA Approval is Mandatory<\/div>\n <div class=\"box-red\">\n <span style=\"font-size:18px;flex-shrink:0;margin-top:2px\">\u26a0\ufe0f<\/span>\n <span>After examination, all proposals for extending guarantees shall be <strong>referred to Budget Division, DEA for approval. No guarantees shall be given without the approval of Budget Division, DEA.<\/strong> <span class=\"tag-red\">\u2757 Mandatory approval<\/span><\/span>\n <\/div>\n\n <div class=\"sec-h\">(v) Data in Form GFR-26<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccb<\/span><span>All Ministries\/Departments should furnish to MoF the <strong>data of certain operational parameters of the PSU or Entity in Form GFR-26<\/strong> along with the proposal. Where accounts have been audited by CAG, the effect of CAG comments on profitability should be brought out. Where BIFR targets or Cabinet directions have been assigned, <strong>actuals vis-\u00e0-vis targets for the preceding three years<\/strong> should be indicated.<\/span><\/li>\n <\/ul>\n\n <div class=\"sec-h\">What Guarantees Cover and Don't Cover \u2014 Sub-clauses (vi) to (xiv)<\/div>\n <div class=\"box-amber\">\n <div class=\"box-amber-lbl\">\u2b50 Guarantee Scope \u2014 What's IN and What's OUT<\/div>\n <table style=\"width:100%;border-collapse:collapse;font-size:14px;margin-top:6px\">\n <thead>\n <tr style=\"background:#c9a227;color:#1a3400\">\n <th style=\"padding:8px 12px;text-align:left\">\u2705 PERMITTED<\/th>\n <th style=\"padding:8px 12px;text-align:left\">\u274c NOT PERMITTED<\/th>\n <\/tr>\n <\/thead>\n <tbody>\n <tr style=\"background:#f0faf5;border-bottom:1px solid #c8e6c9\">\n <td style=\"padding:8px 12px\">Repayment of <strong>principal + normal interest<\/strong> only (vi)<\/td>\n <td style=\"padding:8px 12px\">Other risks beyond principal + normal interest (vi)<\/td>\n <\/tr>\n <tr style=\"background:#fff8e8;border-bottom:1px solid #c8e6c9\">\n <td style=\"padding:8px 12px\">Only to <strong>Central Public Sector companies\/agencies<\/strong> (vii)<\/td>\n <td style=\"padding:8px 12px\"><strong>Private sector<\/strong> \u2014 guarantees shall not be provided (viii)<\/td>\n <\/tr>\n <tr style=\"background:#f0faf5;border-bottom:1px solid #c8e6c9\">\n <td style=\"padding:8px 12px\">Soft loan components of bilateral\/multilateral aid (x)<\/td>\n <td style=\"padding:8px 12px\"><strong>External Commercial Borrowings<\/strong> \u2014 normally not (ix)<\/td>\n <\/tr>\n <tr style=\"background:#fff8e8;border-bottom:1px solid #c8e6c9\">\n <td style=\"padding:8px 12px\">Donor insists on performance guarantee for grants \u2192 as a negotiating condition only (xi)<\/td>\n <td style=\"padding:8px 12px\"><strong>Grants<\/strong> \u2014 GoI guarantee will not be given for grants (xi) \u00b7 <strong>Commercial loan components<\/strong> of bilateral\/multilateral aid (x)<\/td>\n <\/tr>\n <tr style=\"background:#f0faf5;border-bottom:1px solid #c8e6c9\">\n <td style=\"padding:8px 12px\">Appropriate conditions \u2014 guarantee fee, period, Govt board representation, mortgage\/lien, periodic reports, audit rights (xii)<\/td>\n <td style=\"padding:8px 12px\"><strong>Low-priority objectives<\/strong> or programmes (xiii)<\/td>\n <\/tr>\n <tr style=\"background:#fff8e8\">\n <td style=\"padding:8px 12px\">\u2014<\/td>\n <td style=\"padding:8px 12px\">CPSEs with <strong>strong financial credentials and high credit rating<\/strong> that can raise resources without Govt guarantee (xiv)<\/td>\n <\/tr>\n <\/tbody>\n <\/table>\n <\/div>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch11r278\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 278<\/span>\n <span class=\"rule-title\">Borrowings from Multilateral Agencies by Central PSUs<\/span>\n <\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83c\udf10<\/span><span><strong>(i)<\/strong> All borrowings from multilateral agencies by CPSUs would be <strong>direct (without GoI intermediation)<\/strong> on terms mutually agreed between borrower and lender and <strong>approved by Government of India<\/strong>. Where such terms involve GoI guarantee, <strong>prior approval of Budget Division, MoF<\/strong> must be obtained.<\/span><\/li>\n <li><span class=\"bi\">\u2705<\/span><span><strong>(ii)<\/strong> The borrowing should relate to <strong>Projects approved by the prescribed competent authority<\/strong> of the Central Government.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcb0<\/span><span><strong>(iii)<\/strong> Where GoI guarantee is given, the borrower shall enter into an agreement with GoI for the <strong>payment of guarantee fee on the principal amount of the loan drawn and loan outstanding<\/strong> from time to time.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udd12<\/span><span><strong>(iv)<\/strong> GoI Guarantee would only cover <strong>principal amount and normal interest<\/strong>. <strong>All other risks including exchange rate risk<\/strong> would be shared between the borrower and lender as per the loan agreement.<\/span><\/li>\n <\/ul>\n <\/div>\n\n \n <div style=\"background:#f0faf5;border-left:5px solid #2aab6e;padding:10px 18px;border-radius:0 6px 6px 0;margin:44px 0 10px;font-weight:700;color:#1a6b5a;font-size:14px;letter-spacing:.04em;text-transform:uppercase\">Guarantee Fees and Execution \u2014 Rules 279\u2013280<\/div>\n\n \n <div class=\"rule-div\" style=\"margin-top:8px\"><\/div>\n <div class=\"rule-block\" id=\"ch11r279\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 279<\/span>\n <span class=\"rule-title\">Levy of Guarantee Fees<\/span>\n <\/div>\n <div class=\"sec-h\">Sub-rule (1) \u2014 Rates and Applicability<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udcb0<\/span><span>Rates of fee on guarantees would be as <strong>notified by the Budget Division, DEA, MoF from time to time<\/strong> (rates given in Appendix-12). All Ministries\/Departments shall levy the prescribed fee in <strong>all cases<\/strong>, including <strong>non-fund based borrowings or credits<\/strong> (letters of credit, bank guarantees, etc.).<\/span><\/li>\n <\/ul>\n <div class=\"sec-h\">Sub-rule (2) \u2014 When and on What Amount<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udcc5<\/span><span>Guarantee fee should be levied:\n <ul class=\"blist-sub\">\n <li><span class=\"bsi\">1\ufe0f\u20e3<\/span><span><strong>Before the guarantee is given<\/strong>, and<\/span><\/li>\n <li><span class=\"bsi\">2\ufe0f\u20e3<\/span><span>Thereafter on <strong>1st April every year<\/strong>. <span class=\"tag-red\">\u2757 1st April annually<\/span><\/span><\/li>\n <\/ul>\n <\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcca<\/span><span>The rate of guarantee fee is applied on the <strong>amount outstanding at the beginning of the guarantee year<\/strong>.<\/span><\/li>\n <\/ul>\n <div class=\"sec-h\">Sub-rule (3) \u2014 Default in Payment<\/div>\n <div class=\"box-red\">\n <span style=\"font-size:18px;flex-shrink:0;margin-top:2px\">\u26a0\ufe0f<\/span>\n <span>Where the guarantee fee is <strong>not paid on the due date<\/strong>, fee should be charged at <strong>double the normal rates<\/strong> for the period of default. <span class=\"tag-red\">\u2757 2\u00d7 for default<\/span><\/span>\n <\/div>\n <div class=\"sec-h\">Sub-rule (4) \u2014 80% Cap on Guarantee + Exception<\/div>\n <div class=\"box-amber\">\n <div class=\"box-amber-lbl\">\u2b50 Guarantee Ceiling \u2014 80% Rule<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udcca<\/span><span>The Government may guarantee <strong>no more than 80%<\/strong> of the project loan, depending on conditions imposed by the lender. This incentivises lenders to conduct proper analysis and bear at least <strong>20% of net loss<\/strong> associated with any default. <span class=\"tag-red\">\u2757 Max 80%<\/span><\/span><\/li>\n <li><span class=\"bi\">\u2705<\/span><span><strong>Exception:<\/strong> In certain <strong>exceptional circumstances<\/strong>, GoI may guarantee <strong>100%<\/strong> of the financing where the organisation concerned is <strong>discharging some function on behalf of the Government of India<\/strong>.<\/span><\/li>\n <\/ul>\n <\/div>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch11r280\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 280<\/span>\n <span class=\"rule-title\">Execution of Government Guarantees<\/span>\n <\/div>\n <div class=\"sec-h\">Sub-rule (i) \u2014 Execution and Monitoring by Administrative Ministry<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83c\udfdb\ufe0f<\/span><span>Once approved by MoF, guarantees will be <strong>executed and monitored by the Administrative Ministries<\/strong> concerned, who are required to <strong>report the status annually<\/strong> till they are invoked or obliterated.<\/span><\/li>\n <\/ul>\n <p style=\"margin-bottom:10px;color:#444;font-size:14px;font-style:italic\">Key execution guidelines:<\/p>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccb<\/span><span><strong>(a) Back-to-Back Agreement:<\/strong> The Admin Ministry\/Department shall enter into a <strong>back-to-back agreement with the borrower<\/strong> to ensure servicing of loan, guarantee monitoring, and adherence to terms. Necessary records to monitor the guarantee, including guarantee fee servicing, shall be maintained by the Line Ministry.<\/span><\/li>\n <li><span class=\"bi\">\u26a0\ufe0f<\/span><span><strong>(b) Consistency:<\/strong> The Admin Ministry must ensure <strong>no inconsistency between the guarantee approval given by MoF and the guarantee agreement signed with the borrower<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcdd<\/span><span><strong>(c) Deviations\/Amendments:<\/strong> Deviations or modifications on main conditions of the guarantee should <strong>not be referred routinely to Budget Division<\/strong>. The Admin Ministry shall make out a <strong>separate case fully justifying the need<\/strong>, after thorough scrutiny, before placing before Budget Division for final decision.<\/span><\/li>\n <li><span class=\"bi\">\ud83c\udf10<\/span><span><strong>(d) Bilateral\/Multilateral Credit:<\/strong> Standard format of guarantee of lending institutions shall be examined to ensure they are <strong>not in contradiction with conditions prescribed in this chapter<\/strong>, before signing. New conditions or covenants and differences shall be referred to Budget Division, DEA for concurrence.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcc5<\/span><span><strong>(e) Same Financial Year:<\/strong> Guarantee proposals approved by Budget Division shall be <strong>executed in the same financial year<\/strong>. If the guarantee\/loan agreement is not signed in the same FY as approval, the <strong>proposal shall be submitted again<\/strong>. <span class=\"tag-red\">\u2757 Same FY execution<\/span><\/span><\/li>\n <li><span class=\"bi\">\ud83c\udfaf<\/span><span><strong>(f) Specific Purpose:<\/strong> Guarantee shall hold <strong>only for the specific purpose agreed to by Budget Division<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udd12<\/span><span><strong>(g) Non-Transferable:<\/strong> Guarantee given by GoI shall be <strong>non-transferable<\/strong> and would <strong>cease to exist<\/strong> in case the ownership of the entity is transferred from GoI, unless the Guarantee is <strong>re-confirmed by the Budget Division<\/strong>.<\/span><\/li>\n <\/ul>\n <div class=\"sec-h\">Sub-rule (ii) \u2014 Financial Adviser's Responsibility<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udc64<\/span><span>The <strong>Financial Advisers in Ministry\/Department<\/strong> will perform the responsibility of <strong>maintenance of records and reporting<\/strong> including for the Finance Accounts and the IGAS, through the office of Controller\/Chief Controller of Accounts.<\/span><\/li>\n <\/ul>\n <\/div>\n\n \n <div style=\"background:#fffbe6;border-left:5px solid #c9a227;padding:10px 18px;border-radius:0 6px 6px 0;margin:44px 0 10px;font-weight:700;color:#7a5500;font-size:14px;letter-spacing:.04em;text-transform:uppercase\">Review, Accounting and Invocation \u2014 Rules 281\u2013283<\/div>\n\n \n <div class=\"rule-div\" style=\"margin-top:8px\"><\/div>\n <div class=\"rule-block\" id=\"ch11r281\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 281<\/span>\n <span class=\"rule-title\">Review of Guarantees<\/span>\n <\/div>\n <div class=\"sec-h\">Sub-rule (1) \u2014 Annual Review<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udcc5<\/span><span>All Ministries\/Departments shall ensure that all guarantees are <strong>reviewed every year<\/strong>. The monitoring\/review should examine:\n <ul class=\"blist-sub\">\n <li><span class=\"bsi\">\u2705<\/span><span>Whether the borrower is <strong>discharging repayment and interest obligations<\/strong> as per terms<\/span><\/li>\n <li><span class=\"bsi\">\u2705<\/span><span>Whether repaying capacity is impaired in any manner<\/span><\/li>\n <li><span class=\"bsi\">\u2705<\/span><span>Whether <strong>all covenants and conditions<\/strong> are being followed<\/span><\/li>\n <\/ul>\n <\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccb<\/span><span>The <strong>Financial Advisers<\/strong> of the Ministries\/Departments should undertake these reviews. A copy of the review report (including on timely payment of guarantee fees) shall be forwarded by the FA to the <strong>Budget Division by 30th April every year<\/strong> for the previous financial year. <span class=\"tag-red\">\u2757 30th April deadline<\/span><\/span><\/li>\n <\/ul>\n <div class=\"sec-h\">Sub-rule (2) \u2014 Register of Guarantees \u2014 Form GFR-25<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udcd2<\/span><span>The FA shall ensure a <strong>Register of Guarantees in Form GFR-25<\/strong> is maintained for:\n <ul class=\"blist-sub\">\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span>Record of guarantees<\/span><\/li>\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span>Information required from time to time<\/span><\/li>\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span>Record of annual reviews<\/span><\/li>\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span>Record of <strong>levy and recovery of guarantee fee<\/strong><\/span><\/li>\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span>Data in Form GFR-25 sent to Budget Division, DEA by <strong>10th of April<\/strong> every year. <span class=\"tag-red\">\u2757 10th April deadline<\/span><\/span><\/li>\n <\/ul>\n <\/span><\/li>\n <\/ul>\n <div class=\"sec-h\">Sub-rule (3) \u2014 External Loan Guarantees by MoF<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83c\udfdb\ufe0f<\/span><span>In respect of guarantees issued by MoF for external loans, the respective <strong>credit divisions of DEA shall conduct an annual review<\/strong> in consultation with the FA (DEA). Report forwarded to Budget Division in <strong>Form GFR-25<\/strong>. Where guarantees on external loans are issued by the administrative Ministry, <strong>that Ministry is responsible for the review<\/strong>.<\/span><\/li>\n <\/ul>\n <div class=\"sec-h\">Sub-rule (4) \u2014 Six Classification Categories of Guarantees<\/div>\n <div class=\"box-blue\">\n <div class=\"box-blue-lbl\">\ud83d\udccb Six Categories of Government Guarantees<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">1\ufe0f\u20e3<\/span><span>Guarantees to <strong>RBI, banks and financial institutions<\/strong> for repayment of principal, interest, cash credit, seasonal agricultural operations and\/or working capital.<\/span><\/li>\n <li><span class=\"bi\">2\ufe0f\u20e3<\/span><span>Guarantees for <strong>repayment of share capital, minimum annual dividend, bonds or loans, debentures<\/strong> issued by statutory corporations and CPSUs.<\/span><\/li>\n <li><span class=\"bi\">3\ufe0f\u20e3<\/span><span>Guarantees in pursuance of agreements with <strong>international financial institutions, foreign lending agencies, foreign governments, contractors, suppliers, consultants<\/strong> \u2014 for repayment of principal, interest, commitment charges, or payment against supplies of materials and equipment.<\/span><\/li>\n <li><span class=\"bi\">4\ufe0f\u20e3<\/span><span><strong>Counter-guarantees to banks<\/strong> in consideration of banks having issued letters of credit or authority to foreign suppliers.<\/span><\/li>\n <li><span class=\"bi\">5\ufe0f\u20e3<\/span><span>Guarantees given to <strong>Railways<\/strong> for due and punctual payment of dues by Central Government companies or corporations.<\/span><\/li>\n <li><span class=\"bi\">6\ufe0f\u20e3<\/span><span><strong>Others<\/strong> \u2014 guarantees not covered under the above five classes.<\/span><\/li>\n <\/ul>\n <\/div>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch11r282\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 282<\/span>\n <span class=\"rule-title\">Accounting for Guarantees \u2014 FRBM Disclosure<\/span>\n <\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udcdc<\/span><span><strong>FRBM Rule 6 of 2004<\/strong> requires Government to publish a <strong>disclosure statement on guarantees given by Government<\/strong> at the time of presenting the Annual Financial Statement and Demands for Grants. This statement covers class and number of guarantees, amounts guaranteed, outstanding, invocations, guarantee fee payable, and other material details.<\/span><\/li>\n <\/ul>\n <div class=\"sec-h\">Process of Compilation and Publication<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udd04<\/span><span><strong>(i)<\/strong> Statement compiled by <strong>Administrative Ministries\/Departments \u2192 submitted to Controller General of Accounts \u2192 forwarded to Budget Division<\/strong>. Based on inputs, a <strong>Statement of Guarantees is published as an annexure in the Receipt Budget<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\u2705<\/span><span><strong>(ii)<\/strong> Ministries\/Departments must ensure and certify that amounts shown <strong>tally with the total figures in the Detailed Demands for Grants<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccb<\/span><span><strong>(iii)<\/strong> Ministries\/Departments must also certify that information tallies with the material furnished to CGA for the Finance Accounts and is <strong>compliant with Indian Government Accounting Standard-1 (IGAS-1) relating to Government Guarantees<\/strong>. <span class=\"tag-amber\">\u2b50 IGAS-1<\/span><\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch11r283\">\n <div class=\"rule-head\">\n <span class=\"rule-badge\">Rule 283<\/span>\n <span class=\"rule-title\">Invocation of Guarantee \u2014 Guarantee Redemption Fund<\/span>\n <\/div>\n <div class=\"sec-h\">Sub-rule (1) \u2014 Guarantee Redemption Fund (GRF)<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83c\udfe6<\/span><span>A <strong>Guarantee Redemption Fund (GRF)<\/strong> has been established in the <strong>Public Account of India<\/strong> for redemption of guarantees given to CPSEs, Financial Institutions, etc., whenever such guarantees are invoked.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcb0<\/span><span>Funding to the GRF is done through <strong>budgetary appropriations<\/strong> under the head <strong>'Transfer to Guarantee Redemption Fund'<\/strong> through the Demands for Grants of the <strong>Department of Economic Affairs<\/strong>.<\/span><\/li>\n <\/ul>\n <div class=\"sec-h\">Sub-rule (2) \u2014 Advance Notice of Likely Invocation<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udce2<\/span><span>The <strong>Administrative Ministries\/Departments should inform any case of impending\/likely invocation, well in advance, to the Budget Division<\/strong>, along with the proposed corrective measures.<\/span><\/li>\n <\/ul>\n <div class=\"sec-h\">Sub-rule (3) \u2014 Discharge of Obligation on Invocation<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\u2696\ufe0f<\/span><span>In the event of invocation of a guarantee, the obligation may be discharged by <strong>sanctioning a loan to the borrowing entity equal to the amount of guarantee outstanding<\/strong> \u2014 with the approval of Budget Division, MoF.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcb3<\/span><span>However, any payment on this account will <strong>finally be charged to the Guarantee Redemption Fund maintained in the Public Accounts<\/strong>.<\/span><\/li>\n <\/ul>\n <div class=\"box-blue\">\n <div class=\"box-blue-lbl\">\ud83d\udccc Guarantee Invocation \u2014 Flow<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\u27a1\ufe0f<\/span><span>Guarantee invoked \u2192 Admin Ministry informs Budget Division in advance \u2192 Obligation discharged by <strong>sanction of loan to borrower (= amount of guarantee outstanding)<\/strong> with Budget Division approval \u2192 Payment finally <strong>charged to Guarantee Redemption Fund (Public Account)<\/strong><\/span><\/li>\n <\/ul>\n <\/div>\n <\/div>\n\n <div class=\"box-amber\" style=\"margin-top:36px\">\n <div class=\"box-amber-lbl\">\u2b50 Numbers and Key Facts to Remember \u2014 Chapter 11<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>Art. 292<\/strong> \u2014 Constitutional power for Union Government guarantees (R.275)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>Budget Division, DEA<\/strong> \u2014 holds power to grant GoI guarantee including on external borrowings (R.275)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>3 objectives<\/strong> of sovereign guarantee \u2014 project viability \u00b7 lower interest rates \u00b7 precondition for concessional loans (R.276)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>Principal + normal interest only<\/strong> \u2014 GoI guarantee does not cover other risks or exchange rate risk (R.277, R.278)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>NOT to private sector<\/strong> \u00b7 <strong>NOT normally for ECBs<\/strong> \u00b7 <strong>NOT for grants<\/strong> \u00b7 <strong>NOT for low-priority objectives<\/strong> \u00b7 <strong>NOT for financially strong CPSEs<\/strong> (R.277)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>Form GFR-26<\/strong> \u2014 data of operational parameters of PSU\/Entity furnished with guarantee proposal (R.277)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>Guarantee fee levied before giving + every 1st April<\/strong> on outstanding amount \u00b7 Default \u2192 <strong>2\u00d7 normal rate<\/strong> (R.279)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>Maximum 80%<\/strong> of project loan \u00b7 Exception: 100% when entity discharges Govt function (R.279)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>Same financial year<\/strong> \u2014 guarantee must be executed in same FY as Budget Division approval; else resubmit (R.280)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>Non-transferable<\/strong> \u2014 GoI guarantee ceases on ownership transfer unless re-confirmed (R.280)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>30th April<\/strong> \u2014 FA forwards annual review report to Budget Division (R.281)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>10th April<\/strong> \u2014 updated Form GFR-25 data sent to Budget Division (R.281)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>6 categories<\/strong> of guarantee classification (R.281)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>IGAS-1<\/strong> \u2014 Indian Government Accounting Standard on Government Guarantees (R.282)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>Guarantee Redemption Fund<\/strong> \u2014 in Public Account \u00b7 funded via DEA's DFG \u00b7 invocation discharged by sanctioning loan to borrower (R.283)<\/span><\/li>\n <\/ul>\n <\/div>\n <\/div>\n\n <div id=\"ch12\" class=\"ch-block\">\n\n <div class=\"ch-banner\">\n <div class=\"ch-num\">Chapter 12<\/div>\n <div class=\"ch-title\">Miscellaneous Subjects<\/div>\n <div class=\"ch-range\">Rules 284 to 324 \u00b7 Establishment \u00b7 Claims \u00b7 Security Deposits \u00b7 Land & Buildings \u00b7 Local Bodies \u00b7 Records \u00b7 Advances<\/div>\n <\/div>\n\n \n <div class=\"idx-outer\">\n <div class=\"idx-lbl\">Rules at a Glance \u2014 Nine Sections<\/div>\n <table class=\"idx-table\">\n <thead><tr><th style=\"width:110px\">Rule No.<\/th><th>Rule Title \/ Section<\/th><th>Key Point<\/th><\/tr><\/thead>\n <tbody>\n <tr><td class=\"r-num\" colspan=\"3\" style=\"background:#1a3a6b;color:#fff;font-weight:700;letter-spacing:.04em;padding:6px 12px\">I. ESTABLISHMENT (Rules 284\u2013299)<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 284<\/td><td class=\"r-title\">Proposals for Additions to Establishment<\/td><td class=\"r-key\">4 mandatory contents in every proposal \u00b7 Continuation beyond specified duration \u2192 explicit MoF approval \u00b7 Increase in emoluments \u2192 MoF approval<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 285<\/td><td class=\"r-title\">Digitised Service Records<\/td><td class=\"r-key\">All service matters (entry to exit) \u2014 leave, transfer, promotion, appraisal \u2014 in digitised format<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 286<\/td><td class=\"r-title\">Transfer of Charge<\/td><td class=\"r-key\">Form GFR-16 \u00b7 signed by both \u00b7 same day to HoD \u00b7 3 exceptions \u00b7 Cash Book closed on transfer date \u00b7 sudden casualty \u2192 next senior takes charge<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 287<\/td><td class=\"r-title\">Date of Birth Declaration<\/td><td class=\"r-key\">At appointment \u00b7 Matriculation+: Matric certificate \u00b7 Others: Municipal Birth Certificate or last school certificate<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 288<\/td><td class=\"r-title\">Service Book<\/td><td class=\"r-key\">Annual verification by HoO \u00b7 Duplicate: 1st copy with HoO; 2nd to employee (existing: 6 months; new: 1 month) \u00b7 January update, returned in 30 days \u00b7 Lost copy: \u20b9500 \u00b7 All to be digitised<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 289<\/td><td class=\"r-title\">Retrospective Sanction \u2014 Charge Due Date<\/td><td class=\"r-key\">Charge not due before it is sanctioned \u00b7 Time limit runs from date of sanction, not effective date<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 290<\/td><td class=\"r-title\">TA Claim Due Date<\/td><td class=\"r-key\">Due on day after journey completion \u00b7 Submit within 60 days \u00b7 Failure \u2192 forfeited<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 291<\/td><td class=\"r-title\">TA \u2014 Retired Govt Servant (Court)<\/td><td class=\"r-key\">Eligible only on honourable acquittal judgement \u00b7 Date of judgement = reference point<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 292<\/td><td class=\"r-title\">LTC Claim Due Date<\/td><td class=\"r-key\">Due on day after return journey \u00b7 With advance: 30 days \u00b7 Without advance: 60 days \u00b7 Failure \u2192 forfeited<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 293<\/td><td class=\"r-title\">Overtime Allowance Claims<\/td><td class=\"r-key\">Due on 1st of following month \u00b7 Forfeited if not submitted within 60 days<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 294<\/td><td class=\"r-title\">Withheld Increment \u2014 Due Date<\/td><td class=\"r-key\">1-year period from date increment falls due, NOT from date of Increment Certificate signing<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 295<\/td><td class=\"r-title\">Arrear Claims<\/td><td class=\"r-key\">Within 2 years \u2192 DDO\/AO after usual checks \u00b7 Beyond 2 years \u2192 HoD investigates; if satisfied, pays \u00b7 HoD may delegate to subordinate appointment authority<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 296<\/td><td class=\"r-title\">Time-Barred Claims<\/td><td class=\"r-key\">Entertained if prevented by causes beyond control \u00b7 Paid with express Govt sanction + prior Internal Finance Wing consent<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 297<\/td><td class=\"r-title\">Claims of Non-Govt Persons<\/td><td class=\"r-key\">Rules 289\u2013296 apply mutatis mutandis to persons not in Govt service<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 298<\/td><td class=\"r-title\">Retrospective Sanctions \u2014 Pay Revision<\/td><td class=\"r-key\">Retrospective effect for pay revision \/ concessions \u2192 only in very special circumstances with prior MoF consent<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 299<\/td><td class=\"r-title\">PF Advance Sanction Currency<\/td><td class=\"r-key\">Lapses after 3 months unless specifically renewed \u00b7 Exception: instalment withdrawals (valid till date specified in sanction)<\/td><\/tr>\n <tr><td class=\"r-num\" colspan=\"3\" style=\"background:#1a3a6b;color:#fff;font-weight:700;letter-spacing:.04em;padding:6px 12px\">II. REFUND OF REVENUE (Rules 300\u2013302)<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 300<\/td><td class=\"r-title\">Sanctions of Refunds<\/td><td class=\"r-key\">Regulated by orders of Administrator or departmental authority as per departmental manuals<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 301<\/td><td class=\"r-title\">Refund Procedure \u2014 Five Sub-rules<\/td><td class=\"r-key\">Sanction on bill or certified copy \u00b7 Link original entry in Cash Book to prevent double claims \u00b7 Remission before collection = reduction of demand, NOT refund \u00b7 Refunds not treated as expenditure \u00b7 Wrongly credited \u2192 authority to whom receipts correctly pertain is competent<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 302<\/td><td class=\"r-title\">Compensation for Accidental Loss of Property<\/td><td class=\"r-key\">Only with MoF approval \u00b7 Not for floods\/cyclone\/earthquake or ordinary accidents \u00b7 Being on duty or in Govt quarters not sufficient ground alone<\/td><\/tr>\n <tr><td class=\"r-num\" colspan=\"3\" style=\"background:#1a3a6b;color:#fff;font-weight:700;letter-spacing:.04em;padding:6px 12px\">III. DEBT & MISC. OBLIGATIONS (Rules 303\u2013305)<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 303<\/td><td class=\"r-title\">Public Debt<\/td><td class=\"r-key\">Managed by Reserve Bank of India<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 304<\/td><td class=\"r-title\">Provident Funds<\/td><td class=\"r-key\">HoO maintains complete subscriber list \u00b7 Monthly schedule tallied before bill submission \u00b7 Similar for NPS \u00b7 Interest at rates\/intervals prescribed by MoF<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 305<\/td><td class=\"r-title\">Postal Life Insurance Register<\/td><td class=\"r-key\">Form GFR-20 \u00b7 Alphabetical order \u00b7 Separate entry per policy \u00b7 Monthly recovery posted after pay bill<\/td><\/tr>\n <tr><td class=\"r-num\" colspan=\"3\" style=\"background:#1a3a6b;color:#fff;font-weight:700;letter-spacing:.04em;padding:6px 12px\">IV. SECURITY DEPOSITS (Rules 306\u2013308)<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 306<\/td><td class=\"r-title\">Security by Govt Servants Handling Cash<\/td><td class=\"r-key\">All cash\/store handlers must furnish \u00b7 Based on actual cash (excludes A\/c payee cheques) \u00b7 Fidelity Bond: Form GFR-17 \u00b7 Security Bond: Form GFR-14 \u00b7 Officiating \u22644 months: exemption if permanent Govt servant + no risk<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 307<\/td><td class=\"r-title\">Security Not Required \u2014 4 Categories<\/td><td class=\"r-key\">Negligible stores \u00b7 Office furniture\/stationery (if HoO satisfied) \u00b7 Librarian & library staff \u00b7 Drivers of Govt vehicles<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 308<\/td><td class=\"r-title\">Retention of Security<\/td><td class=\"r-key\">Deposit: retained at least 6 months after vacating post \u00b7 Bond: retained permanently<\/td><\/tr>\n <tr><td class=\"r-num\" colspan=\"3\" style=\"background:#1a3a6b;color:#fff;font-weight:700;letter-spacing:.04em;padding:6px 12px\">V. TRANSFER OF LAND & BUILDINGS (Rules 309\u2013310)<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 309<\/td><td class=\"r-title\">Sale of Govt Land<\/td><td class=\"r-key\">No sale without previous sanction of Government (applies to autonomous bodies, PSUs too)<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 310<\/td><td class=\"r-title\">Transfer of Land and Buildings<\/td><td class=\"r-key\">UT\u2194Dept and Dept\u2194Dept: no profit no loss \u00b7 Buildings: present day cost minus depreciation (CPWD) \u00b7 PSU allotment: market value \u00b7 Union\u2194State: Art. 294, 295, 298 & 299 + Appendix-7<\/td><\/tr>\n <tr><td class=\"r-num\" colspan=\"3\" style=\"background:#1a3a6b;color:#fff;font-weight:700;letter-spacing:.04em;padding:6px 12px\">VI\u2013IX. LOCAL BODIES \u00b7 RECORDS \u00b7 ADVANCES (Rules 311\u2013324)<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 311<\/td><td class=\"r-title\">Charitable Endowments and Other Trusts<\/td><td class=\"r-key\">Detailed instructions in Appendix-8<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 312<\/td><td class=\"r-title\">Financial Arrangements with Local Bodies<\/td><td class=\"r-key\">Local body pays in advance unless special arrangement \u00b7 Emergency (epidemics): no pre-payment for medicines<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 313<\/td><td class=\"r-title\">Recovery from Non-Paying Local Bodies<\/td><td class=\"r-key\">Dues unpaid \u2192 adjusted from any non-statutory grant sanctioned for it<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 314<\/td><td class=\"r-title\">Taxes Collected on Behalf of Local Bodies<\/td><td class=\"r-key\">Must pass through Consolidated Fund before appropriation to local fund \u2014 unless authorised by law<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 315\u2013319<\/td><td class=\"r-title\">Payments \u00b7 Audit \u00b7 Rounding<\/td><td class=\"r-key\">Audit by Indian Audit & Accounts Dept (Art. 149) \u00b7 Audit fees in consultation with CAG \u00b7 Govt Company supplementary audit: waived for CAG staff, enforced for professional auditors \u00b7 Transactions rounded to nearest Rupee<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 320<\/td><td class=\"r-title\">Destruction of Records<\/td><td class=\"r-key\">Only per Appendix-9 \u00b7 Electronic records: mandatory backup + strict retention + monthly\/annual verification<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 322<\/td><td class=\"r-title\">Permanent Advance \/ Imprest<\/td><td class=\"r-key\">Granted by HoD in consultation with Internal Finance Wing \u00b7 Kept to minimum required<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 323<\/td><td class=\"r-title\">Advances for Contingent Purpose<\/td><td class=\"r-key\">4 conditions \u00b7 Adjustment bill within 15 days \u00b7 Failure \u2192 recovered from next salary<\/td><\/tr>\n <tr><td class=\"r-num\">Rule 324<\/td><td class=\"r-title\">Advance to Govt Pleader<\/td><td class=\"r-key\">Max \u20b925,000 at a time \u00b7 Adjusted at time of settlement of Counsel's fee bills<\/td><\/tr>\n <\/tbody>\n <\/table>\n <\/div>\n\n \n <div style=\"background:#f0f4ff;border-left:5px solid #1a3a6b;padding:10px 18px;border-radius:0 6px 6px 0;margin:10px 0;font-weight:700;color:#1a3a6b;font-size:14px;letter-spacing:.04em;text-transform:uppercase\">Section I \u2014 Establishment (Rules 284\u2013299)<\/div>\n\n \n <div class=\"rule-block\" id=\"ch12r284\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 284<\/span><span class=\"rule-title\">Proposals for Additions to Establishment<\/span><\/div>\n <div class=\"sec-h\">Sub-rule (2) \u2014 Four Mandatory Contents of Every Proposal<\/div>\n <div class=\"box-blue\">\n <div class=\"box-blue-lbl\">\ud83d\udccb Every Proposal for New Posts \/ Revision Must Contain<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">1\ufe0f\u20e3<\/span><span><strong>Present cost of the establishment<\/strong> in existence<\/span><\/li>\n <li><span class=\"bi\">2\ufe0f\u20e3<\/span><span><strong>Cost implications of the change<\/strong> \u2014 details of pay and allowances of post(s) proposed<\/span><\/li>\n <li><span class=\"bi\">3\ufe0f\u20e3<\/span><span>Expenditure in respect of <strong>pension, gratuity or other retirement benefits<\/strong> that may arise in consequence<\/span><\/li>\n <li><span class=\"bi\">4\ufe0f\u20e3<\/span><span>Details on <strong>how the expenditure is proposed to be met<\/strong>, including proposed re-appropriations<\/span><\/li>\n <\/ul>\n <\/div>\n <ul class=\"blist\" style=\"margin-top:10px\">\n <li><span class=\"bi\">\ud83d\udd12<\/span><span><strong>Sub-rule (3):<\/strong> Continuation of an existing post beyond the specified duration requires <strong>explicit MoF approval<\/strong>, based on functional justification.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udd12<\/span><span><strong>Sub-rule (4):<\/strong> All proposals for <strong>increase in emoluments<\/strong> for an existing post shall be <strong>referred to the Ministry of Finance for approval<\/strong>.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch12r285\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 285<\/span><span class=\"rule-title\">Digitised Service Records<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udcbb<\/span><span>All service matters from <strong>entry to exit<\/strong> \u2014 including <strong>leave, transfer, promotion, performance appraisal<\/strong> \u2014 should be maintained in a <strong>digitised format<\/strong>.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch12r286\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 286<\/span><span class=\"rule-title\">Transfer of Charge<\/span><\/div>\n <div class=\"sec-h\">Sub-rule (1) \u2014 Form GFR-16<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccb<\/span><span>Report of transfer of a Gazetted Government servant shall be made in <strong>Form GFR-16<\/strong>, <strong>signed by both the relieved and relieving<\/strong> Government servants, and sent to the HoD or Controlling Officers <strong>on the same day<\/strong>.<\/span><\/li>\n <\/ul>\n <div class=\"box-amber\">\n <div class=\"box-amber-lbl\">\u2b50 3 Exceptions \u2014 Independent Signing Permitted<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">1\ufe0f\u20e3<\/span><span>Assumes charge of a <strong>newly created or vacant post<\/strong>, or relinquishes charge of a <strong>post that has been abolished<\/strong><\/span><\/li>\n <li><span class=\"bi\">2\ufe0f\u20e3<\/span><span>Vacates a post for a <strong>short period and no formal\/officiating arrangement<\/strong> is made in his place<\/span><\/li>\n <li><span class=\"bi\">3\ufe0f\u20e3<\/span><span>Moves to another post due to <strong>administrative exigencies<\/strong> against local arrangement<\/span><\/li>\n <\/ul>\n <\/div>\n <div class=\"sec-h\">Sub-rule (2) \u2014 Transfer Involving Cash\/Stores<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udcd2<\/span><span><strong>(i)<\/strong> <strong>Cash Book or imprest account shall be closed on the date of transfer<\/strong> with a note signed by both, showing cash\/imprest balances and unused cheques\/receipt books.<\/span><\/li>\n <li><span class=\"bi\">\u26a0\ufe0f<\/span><span><strong>(ii)<\/strong> The relieving Government servant should <strong>bring to notice anything irregular or objectionable<\/strong> in the conduct of business to the incoming officer.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udea8<\/span><span><strong>(iii) Sudden casualty<\/strong> \u2014 the <strong>next senior officer present shall take charge<\/strong>. If not a Gazetted officer, must immediately report to nearest departmental superior and obtain orders about cash in hand.<\/span><\/li>\n <\/ul>\n <div class=\"sec-h\">Sub-rule (3)<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>Additional procedure for Audit\/Accounts Officers making over charge in connection with <strong>Charitable Endowments and other Trust Accounts<\/strong> is laid down in <strong>Appendix-8<\/strong>.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch12r287\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 287<\/span><span class=\"rule-title\">Date of Birth Declaration at Appointment<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udcc5<\/span><span>Every person newly appointed shall, at the time of appointment, declare the date of birth by the <strong>Christian era<\/strong> with confirmatory documentary evidence:\n <ul class=\"blist-sub\">\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span>Qualification is <strong>Matriculation or above<\/strong> \u2192 <strong>Matriculation Certificate<\/strong><\/span><\/li>\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span>Other cases \u2192 <strong>Municipal Birth Certificate<\/strong> or <strong>Certificate from recognised school last attended<\/strong><\/span><\/li>\n <\/ul>\n <\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch12r288\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 288<\/span><span class=\"rule-title\">Service Book \u2014 Maintenance, Duplicate Copy and Digitisation<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udcd2<\/span><span><strong>Sub-rule (1):<\/strong> Service Books shall be <strong>verified every year by the Head of Office<\/strong>. After satisfying himself, the HoO shall record the certificate: <em>\"Service verified from \u2026 upto \u2026\"<\/em><\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccb<\/span><span><strong>Sub-rule (2):<\/strong> Maintained in <strong>duplicate<\/strong>. First copy with HoO; second copy given to the Government servant:\n <ul class=\"blist-sub\">\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span>Existing employees \u2192 within <strong>6 months<\/strong> of rules becoming effective (if not already given)<\/span><\/li>\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span>New appointees \u2192 within <strong>1 month<\/strong> of date of appointment <span class=\"tag-red\">\u2757 1 month<\/span><\/span><\/li>\n <\/ul>\n <\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcc5<\/span><span><strong>Sub-rule (3):<\/strong> In <strong>January each year<\/strong>, the Government servant shall hand over his copy for updation. The office shall <strong>update and return it within 30 days<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcb0<\/span><span><strong>Sub-rule (4):<\/strong> If the Government servant's copy is <strong>lost<\/strong>, replaced on payment of <strong>\u20b9500<\/strong>. <span class=\"tag-red\">\u2757 \u20b9500<\/span><\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcbb<\/span><span><strong>Sub-rule (5):<\/strong> All Service Books should be <strong>digitised<\/strong> for easy reference and to avoid problems in case of loss.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch12r289\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 289<\/span><span class=\"rule-title\">Retrospective Claim \u2014 Date of Sanction is the Reference<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udcc5<\/span><span>In the case of sanction accorded with retrospective effect, the charge does <strong>not become due before it is sanctioned<\/strong>. The time-limit specified in Rule 296(1) should be reckoned from the <strong>date of sanction<\/strong> and not from the date on which the sanction takes effect.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch12r290\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 290<\/span><span class=\"rule-title\">Due Date of TA Claim<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udcc5<\/span><span>TA claim falls due for payment on the <strong>day succeeding the date of completion of the journey<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\u23f0<\/span><span>The Government servant shall submit the claim within <strong>60 days<\/strong> of its becoming due. Failure \u2192 claim stands <strong>forfeited<\/strong>. <span class=\"tag-red\">\u2757 60 days<\/span><\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch12r291\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 291<\/span><span class=\"rule-title\">TA of Retired Govt Servant Appearing in Court of Law<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\u2696\ufe0f<\/span><span>Retired Government servants become eligible for reimbursement of travelling expenses for court appearances (defending himself) <strong>only when the judgement relating to his honourable acquittal is pronounced<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcc5<\/span><span>The <strong>date of pronouncement of the judgement<\/strong> shall be the reference point for submission and reimbursement of the TA claim.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch12r292\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 292<\/span><span class=\"rule-title\">Due Date of Leave Travel Concession (LTC) Claim<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udcc5<\/span><span>LTC claim falls due for payment on the <strong>day succeeding the date of completion of return journey<\/strong>.<\/span><\/li>\n <\/ul>\n <div class=\"box-amber\">\n <div class=\"box-amber-lbl\">\u2b50 LTC Submission Time Limits<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udcb3<\/span><span><strong>Advance drawn:<\/strong> Submit within <strong>30 days<\/strong> of due date. Failure \u2192 advance recovered; Government employee may still submit as under (ii) below. <span class=\"tag-red\">\u2757 30 days<\/span><\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcb0<\/span><span><strong>Advance not drawn:<\/strong> Submit within <strong>60 days<\/strong> of due date. <span class=\"tag-red\">\u2757 60 days<\/span><\/span><\/li>\n <li><span class=\"bi\">\u26d4<\/span><span>Failure to submit in both the cases within prescribed timelines \u2192 claim stands <strong>forfeited<\/strong>.<\/span><\/li>\n <\/ul>\n <\/div>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch12r293\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 293<\/span><span class=\"rule-title\">Due Date of Overtime Allowance (OTA) Claims<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udcc5<\/span><span>OTA claim falls due for payment on <strong>the first day of the month following the month<\/strong> to which the overtime allowance relates.<\/span><\/li>\n <li><span class=\"bi\">\u23f0<\/span><span>Claim stands <strong>forfeited<\/strong> if not submitted within <strong>60 days<\/strong> of the due date. <span class=\"tag-red\">\u2757 60 days<\/span><\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch12r294\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 294<\/span><span class=\"rule-title\">Due Date of a Withheld Increment<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udcc5<\/span><span>The period of one year should be counted from the <strong>date on which the increment falls due<\/strong> \u2014 not with reference to the date on which the Increment Certificate is signed by the competent authority.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>Even where an increment is withheld, the time-limit should be reckoned from the date on which it <strong>falls due after taking into account the period for which it is withheld<\/strong>.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch12r295\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 295<\/span><span class=\"rule-title\">Arrear Claims<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udcc5<\/span><span><strong>Sub-rule (1):<\/strong> Any arrear claim preferred within <strong>two years<\/strong> of its becoming due shall be settled by the <strong>DDO or Accounts Officer<\/strong> after usual checks.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>Sub-rule (2):<\/strong> The date on which the claim is <strong>presented at the office of disbursement<\/strong> shall be considered the date on which it is preferred.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udd0d<\/span><span><strong>Sub-rule (3)(i):<\/strong> Claim remaining in abeyance for more than <strong>two years<\/strong> \u2192 investigated by the <strong>Head of Department<\/strong>. If satisfied about genuineness and valid reasons for delay, the HoD directs payment after usual checks.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udc65<\/span><span><strong>Sub-rule (3)(ii):<\/strong> HoD may <strong>delegate<\/strong> the above powers to the subordinate authority <strong>competent to appoint<\/strong> the Government servant by whom the claim is made.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch12r296\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 296<\/span><span class=\"rule-title\">Procedure for Dealing with Time-Barred Claims<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\u2705<\/span><span><strong>Sub-rule (1):<\/strong> Even a <strong>time-barred claim<\/strong> shall be entertained if the concerned authority is satisfied that the claimant was <strong>prevented from submitting within the prescribed time limit on account of causes and circumstances beyond his control<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccb<\/span><span><strong>Sub-rule (2):<\/strong> A time-barred claim shall be paid with the <strong>express sanction of the Government<\/strong> issued with the <strong>previous consent of the Internal Finance Wing<\/strong> of the Ministry or Department concerned.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch12r297\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 297<\/span><span class=\"rule-title\">Time-Barred Claims of Persons Not in Government Service<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>The provisions of <strong>Rules 289 to 296<\/strong> shall apply <strong>mutatis mutandis<\/strong> to arrear claims preferred against Government by <strong>persons not in Government service<\/strong>.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch12r298\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 298<\/span><span class=\"rule-title\">Retrospective Sanctions for Pay Revision and Concessions<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\u26d4<\/span><span>Retrospective effect shall <strong>not be given<\/strong> by competent authorities to sanctions relating to <strong>revision of pay or grant of concessions<\/strong> to Government servants, except in <strong>very special circumstances with the previous consent of the Ministry of Finance<\/strong>.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch12r299\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 299<\/span><span class=\"rule-title\">Currency of Sanction for Provident Fund Advance \/ Withdrawal<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\u23f0<\/span><span>A sanction to an advance or a non-refundable part withdrawal from Provident Fund shall, unless specifically renewed, <strong>lapse on the expiry of 3 months<\/strong>. <span class=\"tag-red\">\u2757 3 months<\/span><\/span><\/li>\n <li><span class=\"bi\">\u2705<\/span><span><strong>Exception:<\/strong> This shall <strong>not apply to withdrawals effected in instalments<\/strong>. In such cases, the sanction for non-refundable withdrawals shall remain valid up to a <strong>particular date specified by the sanctioning authority in the sanction order itself<\/strong>.<\/span><\/li>\n <\/ul>\n <\/div>\n\n \n <div style=\"background:#e8f0ff;border-left:5px solid #1a3a6b;padding:10px 18px;border-radius:0 6px 6px 0;margin:44px 0 10px;font-weight:700;color:#1a3a6b;font-size:14px;letter-spacing:.04em;text-transform:uppercase\">Section II \u2014 Refund of Revenue (Rules 300\u2013302)<\/div>\n\n \n <div class=\"rule-block\" id=\"ch12r300\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 300<\/span><span class=\"rule-title\">Sanctions of Refunds of Revenue<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccb<\/span><span>All sanctions to refunds of revenue shall be regulated by the orders of an Administrator or of the <strong>departmental authority<\/strong> as per the provisions of the rules and orders contained in <strong>departmental manuals<\/strong>.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch12r301\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 301<\/span><span class=\"rule-title\">Refund Procedure \u2014 Five Key Provisions<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccb<\/span><span><strong>Sub-rule (1):<\/strong> Sanction to a refund may be given on the <strong>bill itself<\/strong> or quoted therein with a certified copy attached.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udd12<\/span><span><strong>Sub-rule (2):<\/strong> Before a refund is made, the <strong>original demand or realisation must be linked<\/strong> and a reference to the refund recorded against the original entry in the Cash Book \u2014 to make entertainment of a <strong>double or erroneous claim impossible<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>Sub-rule (3):<\/strong> <strong>Remission of revenue before collection \u2260 Refund<\/strong>. Such remissions are treated as <strong>reduction of demands<\/strong>, not as refunds.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>Sub-rule (4):<\/strong> <strong>Refunds of revenues are not regarded as expenditure<\/strong> for the purposes of grants or appropriation.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>Sub-rule (5):<\/strong> Revenue credited to a <strong>wrong head of account<\/strong> \u2192 the <strong>authority to whom the original receipts correctly pertain<\/strong> is competent to order refund.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch12r302\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 302<\/span><span class=\"rule-title\">Compensation for Accidental Loss of Property<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\u26d4<\/span><span>No compensation for accidental loss of property shall be paid to an officer <strong>except with the approval of the Ministry of Finance<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>Compensation will <strong>not ordinarily be granted<\/strong> for:\n <ul class=\"blist-sub\">\n <li><span class=\"bsi\">\u274c<\/span><span>Loss due to <strong>floods, cyclone, earthquake or any other natural calamity<\/strong><\/span><\/li>\n <li><span class=\"bsi\">\u274c<\/span><span>Loss due to <strong>ordinary accident<\/strong> which may occur to any citizen (theft, railway accident, fire, etc.)<\/span><\/li>\n <\/ul>\n <\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>The mere fact that the Government servant is technically <strong>on duty<\/strong> or is living in <strong>Government quarters<\/strong> will <strong>not be considered a sufficient ground<\/strong> for grant of compensation.<\/span><\/li>\n <\/ul>\n <\/div>\n\n \n <div style=\"background:#f0faf5;border-left:5px solid #2aab6e;padding:10px 18px;border-radius:0 6px 6px 0;margin:44px 0 10px;font-weight:700;color:#1a6b5a;font-size:14px;letter-spacing:.04em;text-transform:uppercase\">Section III \u2014 Debt and Miscellaneous Obligations (Rules 303\u2013305)<\/div>\n\n \n <div class=\"rule-block\" id=\"ch12r303\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 303<\/span><span class=\"rule-title\">Public Debt<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83c\udfe6<\/span><span>The public debt raised by Government by issue of securities shall be <strong>managed by the Reserve Bank of India<\/strong>. The RBI shall also manage securities created under any other law or rule having the force of law, provided such law specifically provides for their management by RBI.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch12r304\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 304<\/span><span class=\"rule-title\">Provident Funds<\/span><\/div>\n <div class=\"sec-h\">Sub-rule (1) \u2014 Maintenance of Subscriber List<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udcd2<\/span><span>A <strong>complete list of subscribers<\/strong> to each fund shall be maintained by each disbursing office in the form of a schedule. Key requirements:\n <ul class=\"blist-sub\">\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span>Each new subscriber brought on the list; changes (transfer, rate change) clearly indicated<\/span><\/li>\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span>Death, quitting service or transfer \u2192 full particulars duly recorded<\/span><\/li>\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span>Transfer of a subscriber \u2192 note made in list of <strong>both<\/strong> the offices<\/span><\/li>\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span>Monthly schedule prepared from this list and <strong>tallied with recoveries before submission of bill<\/strong><\/span><\/li>\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span>Similar provisions shall be made for <strong>New Pension System (NPS)<\/strong> subscribers<\/span><\/li>\n <\/ul>\n <\/span><\/li>\n <\/ul>\n <div class=\"sec-h\">Sub-rule (2) \u2014 Crediting of Interest<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udcb0<\/span><span>Deposit accounts shall be credited with interest at such <strong>rates and at such intervals as may be prescribed by the Ministry of Finance<\/strong> in each case.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch12r305\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 305<\/span><span class=\"rule-title\">Maintenance of Register for Postal Life Insurance (PLI) Premia<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udcee<\/span><span>All drawing officers should maintain a record of <strong>Postal Life Insurance (PLI) policy holders in Form GFR-20<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccb<\/span><span>The register shall be kept up to date with names in <strong>alphabetical order by surname<\/strong>. A <strong>separate entry for each policy<\/strong> where a holder has more than one policy.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcca<\/span><span>After preparation of the monthly pay bill, the amount of recovery on account of PLI premium shown in the bill shall be <strong>posted in the monthly column of the register<\/strong>. Excess or non-recovery shall be noted in the remarks column.<\/span><\/li>\n <\/ul>\n <\/div>\n\n \n <div style=\"background:#fffbe6;border-left:5px solid #c9a227;padding:10px 18px;border-radius:0 6px 6px 0;margin:44px 0 10px;font-weight:700;color:#7a5500;font-size:14px;letter-spacing:.04em;text-transform:uppercase\">Section IV \u2014 Security Deposits (Rules 306\u2013308)<\/div>\n\n \n <div class=\"rule-block\" id=\"ch12r306\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 306<\/span><span class=\"rule-title\">Furnishing of Security by Government Servants Handling Cash<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udd12<\/span><span><strong>Sub-rule (1):<\/strong> Every Government servant who <strong>actually handles cash or stores<\/strong> shall be required to furnish security, in such amount and form as Central Government or an Administrator may prescribe, and to <strong>execute a security bond<\/strong> setting forth the conditions.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcb0<\/span><span><strong>Sub-rule (2):<\/strong> Amount of security shall be based on <strong>actual cash handled<\/strong> \u2014 shall <strong>not include account payee cheques and drafts<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccb<\/span><span><strong>Sub-rule (3):<\/strong> Security shall be furnished in the form of a <strong>Fidelity Bond in Form GFR-17<\/strong>; Security Bond executed in <strong>Form GFR-14<\/strong>. Administration shall ensure the Government servant pays premia to keep the Bond alive; failure to submit premium receipt \u2192 not allowed to perform duties.<\/span><\/li>\n <li><span class=\"bi\">\u26a0\ufe0f<\/span><span><strong>Sub-rule (4):<\/strong> Officiating Government servant must furnish <strong>full security prescribed for the post<\/strong>. Exemption for short-term officiating only if all three conditions are met:\n <ul class=\"blist-sub\">\n <li><span class=\"bsi\">\u2705<\/span><span>No risk involved<\/span><\/li>\n <li><span class=\"bsi\">\u2705<\/span><span>Only for a <strong>permanent Government servant<\/strong><\/span><\/li>\n <li><span class=\"bsi\">\u2705<\/span><span>Officiating period does <strong>not exceed four months<\/strong> <span class=\"tag-red\">\u2757 4 months<\/span><\/span><\/li>\n <\/ul>\n <\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch12r307\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 307<\/span><span class=\"rule-title\">Exemptions from Security \u2014 Four Categories<\/span><\/div>\n <p style=\"margin-bottom:12px;color:#444;font-size:15px\">Notwithstanding Rule 306, security need <strong>not<\/strong> be furnished in cases of:<\/p>\n <ul class=\"blist\">\n <li><span class=\"bi\">1\ufe0f\u20e3<\/span><span>Government servants entrusted with the custody of stores which, in the opinion of the competent authority, are <strong>not considerable<\/strong><\/span><\/li>\n <li><span class=\"bi\">2\ufe0f\u20e3<\/span><span>Government servants entrusted with custody of <strong>office furniture, stationery and other articles required for office management<\/strong>, if the HoO is satisfied about <strong>safeguards against loss through pilferage<\/strong><\/span><\/li>\n <li><span class=\"bi\">3\ufe0f\u20e3<\/span><span><strong>Librarian and Library Staff<\/strong><\/span><\/li>\n <li><span class=\"bi\">4\ufe0f\u20e3<\/span><span><strong>Drivers of Government vehicles<\/strong><\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch12r308\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 308<\/span><span class=\"rule-title\">Retention of Security<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udcc5<\/span><span>A security <strong>deposit<\/strong> taken from a Government servant shall be retained for <strong>at least six months from the date he vacates his post<\/strong>. <span class=\"tag-red\">\u2757 6 months minimum<\/span><\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccb<\/span><span>A security <strong>bond<\/strong> shall be retained <strong>permanently<\/strong> or until it is certain there is no further necessity for keeping it.<\/span><\/li>\n <\/ul>\n <\/div>\n\n \n <div style=\"background:#f0f4ff;border-left:5px solid #1a3a6b;padding:10px 18px;border-radius:0 6px 6px 0;margin:44px 0 10px;font-weight:700;color:#1a3a6b;font-size:14px;letter-spacing:.04em;text-transform:uppercase\">Section V \u2014 Transfer of Land and Buildings (Rules 309\u2013310)<\/div>\n\n \n <div class=\"rule-block\" id=\"ch12r309\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 309<\/span><span class=\"rule-title\">Sale of Government Land \u2014 Prior Sanction Required<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\u26d4<\/span><span>Save as otherwise provided in any law, rule or order, <strong>no land belonging to the Government or any of its bodies<\/strong> \u2014 including autonomous bodies, PSUs, etc. \u2014 shall be <strong>sold without previous sanction of the Government<\/strong>.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch12r310\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 310<\/span><span class=\"rule-title\">Transfer of Land and Buildings \u2014 Price Basis<\/span><\/div>\n <div class=\"box-blue\">\n <div class=\"box-blue-lbl\">\ud83d\udccb Transfer of Land \u2014 Price Basis by Type<\/div>\n <table style=\"width:100%;border-collapse:collapse;font-size:14px;margin-top:6px\">\n <thead>\n <tr style=\"background:#1a3a6b;color:#fff\">\n <th style=\"padding:8px 12px;text-align:left\">Transfer Type<\/th>\n <th style=\"padding:8px 12px;text-align:left\">Basis<\/th>\n <\/tr>\n <\/thead>\n <tbody>\n <tr style=\"background:#f0f6ff;border-bottom:1px solid #d0dcef\">\n <td style=\"padding:8px 12px\">UT \u2194 Central Govt Dept [R.310(1)]<\/td>\n <td style=\"padding:8px 12px\"><strong>No profit no loss<\/strong> (not necessarily zero cost \u2014 can be on mutually agreeable terms)<\/td>\n <\/tr>\n <tr style=\"background:#e8f0ff;border-bottom:1px solid #d0dcef\">\n <td style=\"padding:8px 12px\">Dept \u2194 Dept [R.310(2)]<\/td>\n <td style=\"padding:8px 12px\"><strong>No profit no loss<\/strong> (can include payment of value or exchange of equal value land)<\/td>\n <\/tr>\n <tr style=\"background:#f0f6ff;border-bottom:1px solid #d0dcef\">\n <td style=\"padding:8px 12px\">Buildings \/ Superstructures [R.310(3)]<\/td>\n <td style=\"padding:8px 12px\"><strong>Present day cost minus depreciation<\/strong> \u00b7 Valuation from <strong>CPWD<\/strong> at time of transfer<\/td>\n <\/tr>\n <tr style=\"background:#e8f0ff;border-bottom:1px solid #d0dcef\">\n <td style=\"padding:8px 12px\">Allotment to PSUs [R.310(4)]<\/td>\n <td style=\"padding:8px 12px\"><strong>Market value<\/strong> as defined in Appendix-7, para 2<\/td>\n <\/tr>\n <tr style=\"background:#f0f6ff\">\n <td style=\"padding:8px 12px\">Union \u2194 State Govts [R.310(5)]<\/td>\n <td style=\"padding:8px 12px\">Regulated by <strong>Art. 294, 295, 298 & 299<\/strong> of Constitution and <strong>Appendix-7<\/strong><\/td>\n <\/tr>\n <\/tbody>\n <\/table>\n <\/div>\n <\/div>\n\n \n <div style=\"background:#f0faf5;border-left:5px solid #2aab6e;padding:10px 18px;border-radius:0 6px 6px 0;margin:44px 0 10px;font-weight:700;color:#1a6b5a;font-size:14px;letter-spacing:.04em;text-transform:uppercase\">Sections VI\u2013IX \u2014 Local Bodies, Trusts, Records, Advances (Rules 311\u2013324)<\/div>\n\n \n <div class=\"rule-block\" id=\"ch12r311\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 311<\/span><span class=\"rule-title\">Charitable Endowments and Other Trusts<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>Detailed instructions relating to Charitable Endowments and other Trusts are embodied in <strong>Appendix-8<\/strong>.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch12r312\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 312<\/span><span class=\"rule-title\">Financial Arrangements between Central Government and Local Bodies<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udcb0<\/span><span><strong>Sub-rule (1):<\/strong> A local body will be required to <strong>pay in advance<\/strong> the estimated amount of charges unless one of the following special arrangements is authorised:\n <ul class=\"blist-sub\">\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span>Payments are <strong>debited to the balances of the deposits of the local fund with Government<\/strong>, or<\/span><\/li>\n <li><span class=\"bsi\">\ud83d\udccc<\/span><span>Payments are made as <strong>advances from public funds<\/strong> pending recovery from the local funds<\/span><\/li>\n <\/ul>\n <\/span><\/li>\n <li><span class=\"bi\">\ud83c\udfe5<\/span><span><strong>Sub-rule (2) \u2014 Emergency Exception:<\/strong> In case of <strong>emergency such as epidemics<\/strong>, pre-payment will <strong>not<\/strong> be insisted upon from local bodies for <strong>supply of medicines from Medical Stores Depots of the Ministry of Health<\/strong>.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch12r313\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 313<\/span><span class=\"rule-title\">Recovery of Dues from Local Bodies<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>Any amount or loan <strong>not paid on due date<\/strong> to Government by a local body may be <strong>adjusted from any non-statutory grant<\/strong> sanctioned for payment to it.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch12r314\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 314<\/span><span class=\"rule-title\">Taxes Collected by Government on Behalf of Local Bodies<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udd12<\/span><span>Proceeds of taxes, fines or other revenues levied or collected by Government for or on behalf of local bodies shall <strong>not be appropriated directly to a local fund without passing through the Consolidated Fund<\/strong> \u2014 unless expressly authorised by law.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch12r315\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rules 315\u2013319<\/span><span class=\"rule-title\">Payments, Audit of Local Bodies and Rounding of Transactions<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udcb0<\/span><span><strong>R.315:<\/strong> Payments to local bodies in respect of revenue raised or received by Government on their behalf shall be made in such <strong>manner and on such date<\/strong> as authorised by general or special orders of Government.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udd0d<\/span><span><strong>R.316:<\/strong> Accounts of local bodies, other non-Government bodies or institutions will be audited by the <strong>Indian Audit and Accounts Department<\/strong> under terms agreed between Government and CAG (subject to any law under <strong>Article 149<\/strong>).<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcb0<\/span><span><strong>R.317:<\/strong> Audit fees charged at <strong>daily rates prescribed by Government in consultation with CAG<\/strong>. Not applicable where rates are prescribed by law or rules having force of law. Specific local bodies may be wholly or partially exempted.<\/span><\/li>\n <li><span class=\"bi\">\ud83c\udfe2<\/span><span><strong>R.318 \u2014 Government Companies (Supplementary Audit, S.143(6) Companies Act 2013):<\/strong>\n <ul class=\"blist-sub\">\n <li><span class=\"bsi\">\u2705<\/span><span>Cost recovery <strong>waived<\/strong> where audit is done by CAG through <strong>own departmental staff<\/strong><\/span><\/li>\n <li><span class=\"bsi\">\u26a0\ufe0f<\/span><span>Cost recovery <strong>enforced<\/strong> where CAG employs <strong>professional auditors<\/strong><\/span><\/li>\n <\/ul>\n <\/span><\/li>\n <li><span class=\"bi\">\ud83d\udd22<\/span><span><strong>R.319:<\/strong> Financial transactions between Government and local bodies shall be <strong>rounded off to the nearest Rupee<\/strong>.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch12r320\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 320<\/span><span class=\"rule-title\">Destruction of Records<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\uddc2\ufe0f<\/span><span><strong>Sub-rule (1):<\/strong> No Government record connected with accounts shall be destroyed <strong>except in accordance with the provisions of Appendix-9<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udcbb<\/span><span><strong>Sub-rule (2):<\/strong> Records maintained in <strong>electronic form<\/strong> should mandatorily have a <strong>backup<\/strong> and adhere strictly to the <strong>retention period and prescribed formats<\/strong>. Responsibility for <strong>verification and certification on a monthly\/annual basis<\/strong> as prescribed under relevant rules shall also be ensured.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch12r321\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 321<\/span><span class=\"rule-title\">Contingent Expenditure<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>Rules relating to incurring contingent expenditure are available under <strong>Section III of Subsidiary Instructions to Central Government Account (Receipt & Payment) Rules 2022<\/strong>.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch12r322\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 322<\/span><span class=\"rule-title\">Permanent Advance or Imprest<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udcb3<\/span><span>Permanent advance or Imprest for meeting <strong>day-to-day contingent and emergent expenditure<\/strong> may be granted by the <strong>Head of the Department in consultation with the Internal Finance Wing<\/strong>.<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>Amount of advance shall be kept at the <strong>minimum required for smooth functioning<\/strong>. Procedures are available in para 10.12 of the Civil Accounts Manual.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch12r323\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 323<\/span><span class=\"rule-title\">Advances for Contingent and Miscellaneous Purpose<\/span><\/div>\n <div class=\"sec-h\">Sub-rule (1) \u2014 Four Conditions<\/div>\n <div class=\"box-blue\">\n <div class=\"box-blue-lbl\">\ud83d\udccb Four Conditions for Sanctioning a Contingent Advance<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">1\ufe0f\u20e3<\/span><span>Amount of expenditure is <strong>higher than the Permanent Advance<\/strong> available and cannot be met from it<\/span><\/li>\n <li><span class=\"bi\">2\ufe0f\u20e3<\/span><span>Purchase or other purpose <strong>cannot be managed under the normal procedures<\/strong> (post-procurement payment system)<\/span><\/li>\n <li><span class=\"bi\">3\ufe0f\u20e3<\/span><span>Amount of advance is <strong>not more than the power delegated to the HoO<\/strong> for the purpose<\/span><\/li>\n <li><span class=\"bi\">4\ufe0f\u20e3<\/span><span>Head of Office shall be <strong>responsible for timely recovery or adjustment<\/strong> of the advance<\/span><\/li>\n <\/ul>\n <\/div>\n <div class=\"sec-h\">Sub-rule (2) \u2014 15-Day Adjustment Limit<\/div>\n <div class=\"box-red\">\n <span style=\"font-size:18px;flex-shrink:0;margin-top:2px\">\u26a0\ufe0f<\/span>\n <span>The adjustment bill, along with balance if any, shall be submitted by the Government servant within <strong>15 days of the drawl of advance<\/strong>. Failure \u2192 advance or balance <strong>recovered from his next salary(ies)<\/strong>. <span class=\"tag-red\">\u2757 15 days<\/span><\/span>\n <\/div>\n <\/div>\n\n <div class=\"rule-div\"><\/div>\n\n \n <div class=\"rule-block\" id=\"ch12r324\">\n <div class=\"rule-head\"><span class=\"rule-badge\">Rule 324<\/span><span class=\"rule-title\">Advance to Government Pleader<\/span><\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\u2696\ufe0f<\/span><span>The Ministry or Department may sanction an advance to a <strong>Government Pleader<\/strong> in connection with law suits to which Government is a party \u2014 up to a <strong>maximum of \u20b925,000 at a time<\/strong>. <span class=\"tag-red\">\u2757 \u20b925,000 max<\/span><\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccb<\/span><span>The amount so advanced should be <strong>adjusted at the time of settlement of Counsel's fee bills<\/strong>.<\/span><\/li>\n <\/ul>\n <\/div>\n\n <div class=\"box-amber\" style=\"margin-top:36px\">\n <div class=\"box-amber-lbl\">\u2b50 Numbers and Key Facts to Remember \u2014 Chapter 12<\/div>\n <ul class=\"blist\">\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>4 mandatory contents<\/strong> in establishment proposals (R.284)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>Form GFR-16<\/strong> \u2014 Transfer of Charge \u00b7 signed by both \u00b7 sent to HoD on same day (R.286)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>Service Book duplicate<\/strong>: existing employees within 6 months; new appointees within <strong>1 month<\/strong> \u00b7 January update, returned in <strong>30 days<\/strong> \u00b7 lost copy: <strong>\u20b9500<\/strong> (R.288)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>TA: 60 days<\/strong> \u00b7 LTC with advance: <strong>30 days<\/strong> \u00b7 LTC without advance: <strong>60 days<\/strong> \u00b7 OTA: <strong>60 days<\/strong> \u00b7 Contingent advance adjustment: <strong>15 days<\/strong><\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>Arrear claims: 2 years<\/strong> \u2192 DDO\/AO settles; beyond 2 years \u2192 HoD investigates (R.295)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>PF advance sanction: 3 months<\/strong> \u2014 lapses unless renewed; exception for instalment withdrawals (R.299)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>Remission before collection = reduction of demand, NOT refund<\/strong> \u00b7 Refunds \u2260 expenditure for appropriation (R.301)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>Security Bond: Form GFR-14 \u00b7 Fidelity Bond: Form GFR-17 \u00b7 PLI Register: Form GFR-20<\/strong><\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>Security exemption for officiating: only if <strong>\u22644 months + permanent Govt servant + no risk<\/strong> (R.306)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>Security <strong>deposit: \u22656 months after vacation<\/strong> \u00b7 Security <strong>bond: permanently<\/strong> (R.308)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>4 categories exempt<\/strong> from security: negligible stores \u00b7 office furniture \u00b7 librarian\/library staff \u00b7 Govt vehicle drivers (R.307)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>Land transfer: UT\u2194Dept and Dept\u2194Dept = <strong>no profit no loss<\/strong> \u00b7 PSU = <strong>market value<\/strong> \u00b7 Buildings = <strong>present day cost minus depreciation (CPWD valuation)<\/strong> (R.310)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span>Supplementary Audit (Govt Companies): cost recovery <strong>waived<\/strong> for CAG departmental staff; <strong>enforced<\/strong> for professional auditors (R.318)<\/span><\/li>\n <li><span class=\"bi\">\ud83d\udccc<\/span><span><strong>\u20b925,000<\/strong> \u2014 maximum advance to Government Pleader at a time (R.324)<\/span><\/li>\n <\/ul>\n <\/div>\n <\/div>\n\n <div id=\"coming-soon\">\n <div style=\"font-size:52px;margin-bottom:16px\">\ud83d\udea7<\/div>\n <h2 style=\"font-size:22px;color:#1a3a6b;margin-bottom:10px\">Notes Coming Soon<\/h2>\n <p class=\"cs-title\" style=\"font-size:15px;color:#888;font-style:italic;margin-bottom:18px\"><\/p>\n <p style=\"font-size:14px;color:#aaa\">Detailed notes for this chapter will be published shortly. 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