ABSTRACT Loans and Advances ~ Loans sanctioned to Co-operative Institutions under the control of various Heads of Department — Consolidation of outstanding loans as on 31-3-2018 and ways and means advances sanctioned upto 31-3-2017 as a new loan with fresh terms and conditions— Orders — Issued. FINANCE (LOANS & ADVANCES CELL) DEPARTMENT G.O.Ms.No.70 Date: 26.02.2019. SteminS, ull ~ 13, PGsuervensut psi - 2050 READ: 1. Letter No.18681/ Finance (Loans & Advances Cell) Dept. /2017-3, dated 3-10-2018 addressed to concemed Departments of Secretariat and Heads of Department 2. Letter No.18681/ Finance (Loans & Advances Cell) Dept. /2017-4, dated 3-10-2018 addressed to Additional Chief Secretary/Principal Secretary/ Secretary to Government, Departments of Secretariat 3, Letter No.18681/ Finance (Loans & Advances Cell) Dept./2017-6, dated 12-10-2018 addressed to concerned Departments of Secretariat and Heads of Department. 4. From the Director of Adi-Dravidar Welfare Letter Na.Ka.No.A3/ 16864/12, dated 30-10-2018, 5. From the Registrar of Co-operative Societies (Housing) Letter Re.No.6153/2018/B3, dated 31-10-2018. 6. From the Registrar of Co-operative Societies Letter Re.No.68050/ 2019/RN2, dated 13-11-2018. 7. From the General Manager, Tamil Nadu Co-operative Housing Federation Limited Letter R.C.No.35337/2007-08/A1, dated 24-10-2018 and 28-11-2018 8. From the Director of Handlooms & Textiles Letter Na.Ka.No.33507/ 2018/N1, dated 28-11-2018. 9. From the Director of Animal Husbandry & Veterinary Services Letter Roc. No.40024/A2/2018, dated 30-11-2018. 10. From the Principal Secretary/Industries Commissioner and Director of Industries & Commerce Letter R.C.No.25060/AB2/2018, dated 7-11-2018, 7-12-2018 and 11-12-2018. 11. From the Commissioner of Sugar Letter Re.No. 12459/Accts.1/2017, dated 20-12-2018. ORDE! The ‘Loans and Advances’ segment of the Government accounts lacks accuracy for several years due to various reasons, which time and again attracts objection from {PTO}“2h the Accountant General. Due to this lacunae, the complete automation of Loans and Advances segment of the Government Accounts, is evading. On the books of accounts, there arg outstanding loan balances in many cases are unrecoverable / remained dormant for years together without recording any transaction. Moreover, as contemplated in the Integrated Financial and Human Resource Management System (IFHRMS), all the ioans and advances are to be prospectively monitored and dues be demanded to ensure effective recovery of Principal and interest by generating amortisation schedules, etc. For this purpose also, cleansing of past data and migration of information into the system is essential 2. These issues affect the calculation of interest dues and effective recovery of principal and interest dues and impact the State's scarcely available resources. It is also inviting a lot of audit observations from the Comptroller and Auditor General of India and the Public Accounts Committee. Therefore, it has become imperative to sort out this long pending issue both from administrative and financial perspective before rolling out Integrated Financial & Human Resources Management System (IFHRMS) for better loan management. 3. The Government in Finance Department had analysed these issues in detail and conducted several rounds of discussions with the officials of the Accountant General (A&E) and the officials of the concerned Heads of Department regarding the Loans and Ways and Means Advances sanctioned to various Co-operative Institutions. 4. Due to mis-match in the amount receivable and non-availability of proper records at the level of concerned Heads of Department, the balances could not be verified. Hence, Accountant General's accounts has been taken into account for Loan consolidation in respect of various Co-operative Institutions. 6. The Commissioner of Sugar, Registrar of Co-operative Societies, Registrar of Co-operative Societies (Housing), Director of Handlooms and Textiles have furnished the institution-wise balance and the same have been accepted. In the case of Commissioner of Sugar, the loan outstanding is Rs.1,261.0008 Crore whereas Accountant General's accounts for Commissionerate are Rs.1,259.7237 Crore and the net difference amount ‘of () Rs.1.2771 Crore is proposed to be adjusted against the Major Head “B680.Miscellaneous Government Accounts’. Similarly, in the case of Director of Handlooms and Textiles, the loan outstanding is Rs.352.0729 Crore whereas Accountant General's accounts for Directorate is Rs.367.0193 Crore and the net difference amount of Rs.14.9464 Crore is proposed to be adjusted against the Major Head “6660. Miscellaneous’ Government Accounts. As regards, the Registrar of Co-operative Societies, the loan outstanding is Rs.195.6832 Crore whereas Accountant General's accounts are Rs.207.0732 Crore and the net difference amount of Rs.11.3900 Crore is proposed to be adjusted against the Major Head “8680. Miscellaneous Government Accounts’. The details of other heads of department are given below: if - AG!s HoD's Adjusted | & Name of the Department actual_| actual _| against “8680” ee ~~ _{Rs. in Thousands) [4 | Registrar of Co-operative Societies | 451,32,01 | 453,06,04 74,03 |__| tetousing) _ | [ 2. | Directorate of industries & 1,63,18 99,46 63,72 Commerce i" Total | 452,95,19 | 454,05,60 4,10,34“36 6. Accordingly, the outstanding Loans and Ways and Means Advances as qn 31-3-2018 in respect of the schemes administered by the concemed Heads of Departments are detailed below: jount ie Name of the Head of Department (Rs. Le | 1, | Directorate of Adi-Dravidar & Tribal Welfare 18,05 2. [ Directorate of Animal Husbandry 43,12 3. | Registrar of Co-operative Societies 185 ,68,32 4. | Registrar of Co-operative Societies(Housing) _ “453,06,04 5. | Directorate of Handlooms & Textiles '352,07,29 6. | Directorate of industries & Commerce 99,46 7. | Commissionerate of Sugar_ 7,267,00,08 7 - Total 2,263,42,36 7. Taking into account of the above position, the Government have examined carefully and decided to consolidate the loans sanctioned till 31-3-2018 and ways and means advances sanctioned till 31-3-2017 to various Co-operative Institutions. Accordingly, out of the total outstanding amount mentioned in para 6 above, after excluding the Ways and Means Advance sanctioned in 2017-18, sanction is accorded for a sum of Rs.2,223,75,27,000/- (Rupees Two thousand two hundred and twenty three crore seventy five lakh and twenty seven thousand only) for conversion of the existing outstanding loan into single consolidated fresh loan to various Co-operative Institutions being administered by the concerned heads of department as indicated in the ‘Annexure-I to this order: nal Name of the Head of Department (Ris. te Thoweands) 1. | Directorate of Adi-Dravidar & Tribal Welfare 18,05 2. | Registrar of Co-operative Societies _ 195,53,00 '3._| Registrar of Co-operative Societies (Housing) 451,43,54 4. | Directorate of Handiooms & Textiles. a 350,32,94 5. | Commissionerate of Sugar 1,226,27,74 L Total __2,223,75,27 8. The amount sanctioned in para-7 above shall not be paid in cash, but it shall be debited/adjusted against the loan heads of account as indicated in the Annexure to this order. The Director of Adi-Dravidar & Tribal Welfare, the Registrar of Co-operative Societies, the Registrar of Co-operative Societies (Housing), the Director of Handlooms & Textiles and the Commissioner of Sugar are the Estimating, Reconciling and Controlling authority respectively for the New Heads of Account indicated in the Annexure-| to this order. 9. The amount sanctioned in para-7 above shall be recovered from the various Co-operative Institutions controlled by the concerned heads of department in 16 years with a moratorium period of 4 years at the rate of 9.5% per annum and credited into the respective newly opened loan and interest receipt heads of account. The interest shall be recovered on Quarterly basis and commence from 30-06-2019 and repayment of principal shall commence after the completion of moratorium period. The concerned Heads of Department are requested to reschedule the loans borrowing entity-wise and lending institution-wise and maintain Loan Register as mentioned in para-13 below. The recoveries of the consolidated loans shall commence from the financial year 2019-20. {PTO}ae 10. The Ways and Means Advances sanctioned to Director of Handlooms and Textiles and Commissioner of Sugar during 2017-18 and loan not consolidated in this order shall be continued with existing terms and conditions stipulated in the original Government order and the head of account wise outstanding loan details are indicated in the Annexure-II to this order: rst A Name of the Head of Department |_1.|Commissionerate of Sugar Directorate of Animal Husbandry Registrar of Co-operative Societies Registrar of Co-operative Societies(Housing)_ Directorate of Handlooms & Textiles | Directorate of Industries & Commerce lolol fool Total 11. The interest and penal interest dues for the outstanding Loan as on 31-3-2018 and Ways and Means Advance sanctioned upto the period 31-3-2017 to Co-operative Institutions under the control of the Heads of Department indicated in this order at para 7 & 10 above are waived as one time measure. 12. As the current loan consolidation activity approved in this order is only through book adjustments between two sets of Heads of Accounts and since the appropriation for the original loans had already been coming under the respective Demands for Grants in the relevant years, the current sanction does not require any fresh appropriations and the Accountant General (A&E) is requested to make necessary adjustment entries in their Books of Accounts against the outstanding loan heads of account as indicated in the Annexure-| to this order. If any remittance made under the existing loan heads of account during the financial year 2018-19, the concerned Heads of Department are directed to send necessary Transfer Entry proposal to the Accountant General (A&E) for booking under the relevant consolidated new heads of account. 13. The Tamil Nadu Financial Code Volume - |, in Chapter X — Loans and Advances, from Articles 219 to 225, lay down the procedure to be followed regarding sanction of Loans and Advances tll their final recovery. The Manual of Loans and Advances also contains the types of heads of department-wise loan, the Loan Register to be maintained by the respective department and the authority responsible for disbursalicollection/monitoring of collection, reconciliation of disbursals and recoveries and budgeting of Receipts and Outgo under the Loans and Advances. As per the above mentioned Code and Manual, the primary responsibility of monitoring and recovery of Loans and Ways and Means Advances sanctioned to the various Loanee Institutions by the Government solely rests with the Head of the Department/Administrative Department that draws and disburses the Loans/Mays and Means Advances. Hence, the concerned heads of department are requested to adhere to the Codal provisions contained in the Tamil Nadu Financial Code Volume — | and the Manual of Loans and Advances without any deviation. The concerned administrative department shall maintain the Loan Register and conduct periodical review on the outstanding loan amount and payment of interest by the concerned head of department (BY ORDER OF THE GOVERNOR) K. SHANMUGAM ADDITIONAL CHIEF SECRETARY TO GOVERNMENT To The Additional Chief Secretary to Government, Adi-Dravidar & Tribal Welfare Department, Secretariat, Chennai 600009.“Se ‘The Principal Secretary to Government, Co-operation, Food & Consumer Protection Department, Secretariat, Chennai 600009. ‘The Principal Secretary to Government, Housing & Urban Development Department, Secretariat, Chennai 600009 ‘The Principal Secretary to Government, Handlooms, Handicrafts, Textiles & Khadi Department, Secretariat, Chennai 600009. ‘The Principal Secretary to Government, Industries Department, Secretariat, Chennai 600009. ‘The Principal Secretary to Government, Animal Husbandry, Dairying & Fisheries Department, Secretariat, Chennai 600009, The Principal Secretary/industries Commissioner & Director of Industries & Commerce, Chennai 600032. ‘The Commissioner of Sugar, Chennai 600035. The Director of Adi-Dravidar Welfare, Chennai 600005. The Director of Tribal Welfare, Chennai 600005, The Registrar of Co-operative Societies, Chennai 600010 ‘The Registrar of Co-operative Societies (Housing), Chennai 600007. The Director of Handlooms & Textiles, Chennai 600108. ‘The Director of Animal Husbandry & Veterinary Services, Chennai 600035, ‘The Managing Director, Tamil Nadu Co-operative Housing Federation, Chennai 600007. ‘The Principal Accountant General (A & E), Chennai 600018 The Principal Accountant General (G&SSA), Chennai 600018. ‘The Accountant General (E&RSA), Chennai 600018. Copy to: All Officers in Finance Department, Secretariat, Chennai 600009, Finance (AD& TW / CF&CP / Hg. & MAWS / Industries / AH&F) Department, Secretariat, Chennai 600008. Stock File/Spare copies. 11 Forwarded by order /! 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