4

RUI ES
SWAMy's - SAFF CAR
SWAMY'S STAF CAR RUES |RULE 43 RULE 44 |
subject to the conditions s
40
consultation with their F.A.(A92, dated 8-9-1993. and
ma be Writlen ofl in each cases. condemned vehicles in Il
(i) Afoneiar limit up to wnich the loss
subject to the following restrictions, laid down in this
Ministry's O.M. No 5 (5E.
This power may bc cxercised
2 lakhs. keeping in view the following: of the same
namely:
vehicles, in terms of distance run (in
with a fuel etticient vehicle
(a) The ives of various types of whichever is reached later, have been () The vehicle is replaced
kilometres) and length of use (in vears) category.
replacement of the vehicle
been made for the
(i) Specific provision has without any re-appropriations
fixed as un der
Years
in Budget for the year
Type of vchicles Kilometres
Commission of
of the Expenditure Reforms
() .... (ii) The recommendations their 10th Report Part-\I. Para 746
() Motor vehicles fitted with engines 6 staff cars contained in in the management of
Non-Plan
up to 20 hp (RAC)
1,50,000
covering certain significant issues
expenditure (extracls enclosed).
instructions
() ............ modi!ications, all other econom
has been obtained ? Subject to the abovenumber, dated 24-9-2000 will continue to be in
(c)A vehicle should be condemned only after a certificatevehicle is not fit for
contained in the O.M. of even
from one of the following authorities to the effect that the
force
use: Report Part-I Il
anv further economical
Extracts of Para. 7.46 ofthe Tenth CommiSS lon
Reforms
() an Electrical and Mechanical Workshop of the National Airports of the Ependiture
Authority; ing reguliar
Goverrment owning cars and employexpenditure,
(i) the Workshop of a State Road Transport Corporation; The present system of Government servants leads to excessiVe
drivers who are full time charges. salarv perquis1tes and pension
of the
(ii) at locations where workshops mentioned at (i) and (ii) are not by wav of maintenanceand repair ofhiring vehicles. Purchase of new cars may.
available, Transport Workshops under the Central or State cost
drivers, etc., compared to thewhen cld cas are condemned. the requirements as
Government Departments. therefore, be banned: as and In tact, intormal
far as ollicials are concerned, be net by taking cars on hiretncluding
|GL. ME, Notufication Nos. F. I (19)-# I| (M89, datcd the l6th October. nd maintaining
1990 snd F I (18)-E l (Ay96, dated the 26th September, 1996. ] studies show that ifall the costs ofoerating
drivers, etc., are factored n, it would be
the overtime and other allowances of
(C) Cundemned ehicles to be disposed of within three months from the more economical to hire vehicles.
C0-ord./2000, dated the l0th Otobc 2001
date of placing of fresh order.- It has been noticed that large number of vehicles, [GL. ME, O M No. 7 (4) E
declared condemned. lie outside tthe office buildings without any care for long
Administ rations of the Union
period. This may result in theft of various parts of such vehicles. The vehicles 44. In so far as the staff cars of the sha!l apply with rhe follow ing
also lose their monetary value The matter has been examined and it has Territories are concerned, the forgoing rules
been decided that the Ministries should ensure that both condemned and modifications:
prematurel, ondemned vehicies are dispused ot as per the procedure within a words Inder
period of three months from the date of placing of an order with the manufacturer () ln Rule 1, for the wor:ts "Under Seeretary", the be substituted.
for replacement of vehicles Assistant Secretary te the Administration shali
|GL F OM No 21 3) | Co-ofd 99 Jated th loh os ember, 1999. ] the words Secretary Joint
(i) in Note (1) ()) belo Rule S, for Ministry",
Secretary in the Administrative the words Chief
(8) Expenditure management, fiscal
purchase of vehicles.- This Department, prudence and austerity measures in Secretary to the Administration" shall be substituted.
ide its O.M.,
24-9-2000, issued instructions on the subjcct cited above.ofeven number, dated
Item (iv) related to (ii) In Rule 9
ban on purchase of new vehicles for a period of
one ear The matter regarding
continuation of ban has been (a) in sub-rule ), for the words "Secretarv to the Ministry.
purchase of additional vehicley examined and it has been
willcontinue Howeser. decided that the ban on "Secretary's co:asent" and "Secretars ", the words Chief
may purchase new vehicles in replu Ministries
ement of maturely and
/ Departments
Secretary to the Adminisration". *Chief Secretar'
prematurely consent" and "Chief Seeretary" shall respectively be
 MANUAL FOR PROCUREMENT OF GOODS 2017
Ministry of Finance Chapter -10
ON Department of Expenditure

cc mmy seek the approval of the CA with the concurrence of the Associated/integrated
iv)
Finance.

10.4 Modes of Disposal

the necessity to avoid
The mode of disposal may be determined by the CA, keeping in viewdeterioration in vlye of
accumulation of such goods, consequent blockage ot space and also
modes of disposal of scrap are:
goods to be disposed of. The uSual and so on, up to a value
Small value scrap such as waste paper or industrial sweepings, directly to the local scrap
sold
of Rs. 5,000 (Rupees Five thousand) in each case may be
dealers on a summary quotation basis;
Limited Tender basis to locally known
i) Scrap upto Rupees Two lakh may be sold on a
Scrap Dealers of relevant category;
for disposal or traditional public auction
i) Sale through the e-auction portal, or a tenderRupees two lakh. E-Avction should be the
above
may be resorted to for scrap value e-Auction platforms of NIC, MSTC, Indian
preferred mode for such disposals, using the
Railways or any other appropriate portal;
1.
Ministries/Departments/ 5
be useable by other
iv) Certain useable machinery/spare may still 20 (Twenty) per cent (7.5 (Seven and
be disposed at book value plus
PSUs;these should handling charges) directly to
half) per cent
and a
ahalf) per cent freight +12.5 (Twelve
the concerned organisation.
of Tenders: Disposal may also be done by submitting bids in
v) Sales by Submission materials, whether such invitations
response to publicinvitations for tenders for supplying sale
Departments, PSUs or by private bodies. This method of
are issued by Government proposed to dispose of its 'overstocks' and
surplus
suitable where it is
is particularly condition.
stores' which are in fit to use
or safety risk (stamps, negotiable instruments, money value
vi) Scrap which is a security destroyed suitably in an eco-friendiy manner in
documents, security press items) may be Pollution
with guidelines of Central Pollution Control Board (CPCB) or State
accordance
presence of a committee after obtaining C¤'s approval. The
Control Board (SPCB) in the
issue a certificate of having destroyed these. Video recording may
committee should
also be done of such disposal.
waste items would be governed by the following procedures in addition
Sale of hazardous (CPCB)/Ministry
vii)
guidelines/notifications issued by the Central Pollution Control Board
to from time to time:
of Environment and Forests (MoEF)
Sale of old batteries/lead acid batteries will be governed by the Batteries
a) amended from time to time;
(Management &Handling) Rules, 2001 or as
other categories of hazardous waste items will be governed by the
b Sale of Transboundary Movement)
Hazardous and Other Wastes (Management and
Rules, 2016 or as amended from time to time;
(Management) Rules, 20l6or as
c) Sale of e-waste shal be governed by EVWaste
amended from time to time;

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d) Bidders must submit a notarized copy of the valid registration certificates issued
by the State (or Union Territory) Pollution Control Board (SPCB) and produce it at
the time of taking delivery of the materials, failing which their bid will be liable
for rejection. In case of lead acid batteries, used/waste oils and nonferroUs metol
wastes, in addition to submitting necessary valid registration from the SPCB, the
bidder must also submit a notarized copy of the valid registrationcertificate from
CPCB (or MoEF); and
e) In case of a sale involving inter-state movement of goods, the buyer shall also
submit an NOCfrom the concerned SPCB, with whom the buyer is registered, to
the seller before taking delivery, failing which the buyer will be responsible for the
consequences and the seller shall take further decision as may be deemed fit.
10.5 Preparation for Disposal
10.5.1 Scrap recommended for disposal should be segregated from other materials into an
identifiable lot. It should be marked as such with a board, indicating the lot number and brief
description. Valuable scrap such as non-ferrous metals should be secured in lockable rooms.
10.5.2 Determining Reserve Price

In any mode of disposal, material should not be sold at rates per lot but bids should be
registered by rate per unit (number, length or weight) so that a complete check on the quantity
delivered can be exercised, at any time. The Head of Office holding the stock may determine
the reserve price with the concurrence of the Associated/integrated Finance and approval
of CA. In case of large value disposals a Reserve Price Committee may be appointed to
recommend the reserve price. The use of external costing experts, price databases, price indices
and data sharing may be done in the same manner as detailed in Chapter 2, para 2.1.1 (i)(e)
relating to the reasonableness for procurement prices. Large newspapers and economic dailies
have dedicated sections dealing with rates in the scrap market. The reserve price should be
recorded on a page numbered register in advance of the date of disposal. This register should
be sealed immediately after the reserve prices of all lots are recorded in the register, and kept
in safe custody. The sealed register should be opened just before the e-auction creation/tender
opening. Some methods for determining reserve prices are:
i) Book value with depreciation. In case the Book value is not available or has become
of
insignificant, the reserve price may be based on 5% of the Original or Market cost
the new item;

ii) Last sale price moderated by quantity, quality, location, market condition, price trend of
various metals, and so on;
ii) Prevailing market price ascertained through a market survey; and
(discounted for melting
iv) Costing analysis based on costs of various elements of the item
losses) labour charges and transportation cost; etc.
v) cases where the reserve price cannot be fixed as per the laid down procedure an
In (IRDA)-approved valuer may be
Insurance Regulatory and DevelopmentandAuthority
the Reserve Price Committee will take into
engaged for valuation of such material
reserve price.
account the valuation given by the valuer while recommending the
 MANUALof Finance
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10.6
Conditions of Disposal
10.6.1 'As-ls-Where-ls' basis Applicable to all Modes of Disposal
Notwparticulars
and ithstanding anytmaterial
ofhing forcontsale,ainedthein tsalehe e-auction or advertisementissued on the description
pior (et the buyer be aware) willisapply. on 'asiswhere-is' basis only and the principle of
quality/quantity indicated are approximate and theAs seller is where is means that the
description/
guarantee that the material will strictly gdhere to the does not give any assurance
shall be taken delivery of advertisement or e-auction. All tems
in from the site by the
description, any. Neither can the sale be successful bidders, with its faults and errors
compensation, whatsoever, invalidated nor the
on account of any defect in description or bidder make any claim/
and quality. No plea of deficiency in the quantity
misunderstanding
confirmation of sale shall be accepted. or ignorance of conditions put forth subsequent to a
10.6.2 Inspection by Bidders
Inview of the
'as-is-where-is'
ot items at the site. The biddercondition, bidders are advised to quote rates only atter
or his authorised inspection
the inspection schedule mentioned in the representative may inspect the materials as per
lunch hours) on any working day at the location auction details, between 11 am to 4 pm (excluding
specified
permission trom the contact person, as given in the auction details. The against each lot with the prior
alllots, including the list of spare parts, if detailed description ot
any, is available at the site.
10.6.3 Right to Reject all Bids
The seller reserves the right to
accept/reject and cancel any bid, amend the quantity under
any lot or withdraw any lot at any stage before or after
letter/sale order/delivery order/ deposit of the full sale acceptance of bid/issue of acceptance
value by the bidder, without assigning
any reason thereof and the value of such material, if paid for, shall be
shall not be responsible for damage/loss to bidders on account of such refundable. The seller
from the sale. withdrawal at any stage
10.6.4 Excise Duty and Taxes
Any statutory variations in the rate of taxes/duties are to be borne by the purchaser. VAT/excise
duty rates indicated in the e-auction catalogue or Tender advertisement are only indicative
and the actual VAT rates as applicable on the date shall be payable by the successful bidders
directly to the seller at the time of taking delivery of materials. Form 'C willbe accepled. In
order to avoid the imposition of penlty, the amount deposited by the successtul bidder towards
taxes and duties will be immediately deposited with the concerned tax authorities without
waiting for the actual delivery.
10.7 Disposal through Tender
Disposal through tender could take place through the eProcurementportal or normal tendering.
In the bidding documents, General Condtions of Sale (GCS, in place of GCC in procurement
tenders) may be laid out.

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are:
The broad steps to be adopted for this purpose
i) Preparation of bidding documents;
to be sold;
ii) Invitation of tender for the surplus goods
ii) Opening of bids;
iv) Analysis and evaluation of bids received;
Selection of the highest responsive bidder;
Collection of sale value from the selected bidder;
vi) Issue of sale release order to the selected bidder;
vi) Release of the sold surplus goods to the selected bidder; and
ix) Return of bid security to the unsuCcesstul bidders;
x) Any special conditions of contract for each lot may also be given. Important aspects x
be kept in view while disposing the goods through an advertised tender are:
a) The basic principle for sale of such goods through an advertised tender is ensurinn
transparency, competition, fairness and elimination of discretion. Wide publici
should be ensured of the sale plan and the goods to be sold;
b) All required terms and conditions of sale ore to be incorporated in the bidding
document conmprehensively in plain and simple language. The applicobility of
taxes, as relevant, should be clearly stated in the document. The bidding document
should also indicate the location and present condition of the goods to be sold so
that the bidders can inspect the goods before bidding:
c) Bidders should be asked to furnish bid securiy (EMD) along with their bids.
The amount of bid security should ordinarily be five per cent of the assessed or
reserved price of the goods. The exact bid security amount should be indicated
in the bidding document. The EMD shall be forfeited if the tenderer unilaterally
withdraws, amends, impairs or derogates from his offer in any respect within the
period of validity of his offer;
d) Late bids, that is, bids received after the specified date and time of receipt should
not to be considered;
e) The bid of the highest acceptable responsive bidder should
and an acceptance/sale order be issued. However, if the normally be accepted
price offered by that
bidder is not acceptable, a negotiation may be held only with that
bidder;
In case the selected bidder does not show interest in
sale value or in lifing the goods, the bid security shoulddepositing the balance
be forfeited and other
actions initiated including resale of the goods in question at the risk and
the defaulter; cost of
g) In case the total quantity to be disposed
acceptable bidder, the remaining quantity cannot be taken up by the highest
may be offered to the next higher
bidder(s) at the price offered by the highest acceptable
quantity to be accepted shallbe indicated in the tender; bidder. The minimum

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Department of Expenditure OF GOODS 2017

h) lf the tenderer's offer is not accepted, the tenderer''s EMD shall be refunded to
him. No interest shall be payable on such refunds. The EMD deposited by the
SUCcesstul tenderer shallremain with the disposing Department till paymen
the money has been made. It may be adjusted as part of the total SD money at
discretion of disposing Department;
i) The otter should be examined by the competent level of Tender Committee ds per
SoPP and TC recommendations should be accepted by the Competent AuthorY
as per the laid down SoPP:
Ihe acceptance letter/sale order would be issued to the successful bidder(s)
notitying the amounts and schedule of submission of SD and Balance Sale Value
(BSV);
k) Successful tenderers, herein after referred to as purchasers, shall have to submit a
SD @ 25 (Twenty-Five) per cent of the total sale value of the contract within seven
calendar days of the issue of the acceptance letter/sale order (excluding the date
of issue). The SD shall be deposited in the form of bank draft/pay order, drawn
onany of the commercial bank in favour of officer concerned as mentioned in the
NIT;
) BSV: The successful bidder in an e-aUction or tender sale may be allowed 15
(Fifeen) calendar days (including the date of acceptance letter/sale order) for
payment of BSV. The Head of Office (or the Officer delegated by an order as
per SoPP) after taking into consideration the prevailing market rates and trends,
may grant an extension of time for the payment of BSV with late payment charges
@ one per cent per week or part thereof up to twO weeks only and, thereafter,
the SD willstand forfeited without notice. Extensions should not be granted as a
matter of routine. The date of submission of the demand drat in the cash office
is the date of payment for all purposes. No interest will be paid to the purchaser
for the amounts paid or deposited and subsequently found refundable to the
purchaser under any of the conditions of the contract; and
m) Delivery Order: Delivery Order is an essential document required to be produced
to take delivery of the material from the custodian and therefore after depositing
BSV, the Delivery Order should be issued and the delivery should be made to
purchaser or his agent on the strength of the Delivery Order and after verifying
cashier's receipt.
10.8 Disposal through Auction
of either
i) AMinistry or Department may undertake auction of goods to be disposed
directly or through approved auctioneers;
applicable for disposal
The basic principles to be followed here are similar to thosecompetition,
ii) fairness and
through the advertised tender so as to ensure transparency, auctioned
goods to be
elimination of discretion. The auction plan including details of the and so on, should be
and their location, applicable terms and conditions of the sale,
of the advertised tender:
given wide publicity in the same manner as is done in case

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MANUAL FOR.PROCUREMENT Ministry. of Finance
Chapter- 10 Department of Expenditure

the condition and location of the goods to be

While starting the auction process, indicater
i)
applicable terms and conditions of sale, and so on, (as already beneft l
auctioned,
giving wide publicity to it), should be announced again for the
earlier while
the assembled bidders;
acceptance or rejection of a bid should be announced
iv) During the auction process, hammer. If a bid is accepted, SD (not less than 2s
immediately on the stroke of the from
immediately be taken on the spot
(Twenty-Five) per cent of the bid value) should the form of deposit-at-call-receipt, drawn ir
bidder either in cash or in
the successful goods should be handed over to the
of the disposing organisation. The
favour of the FA balance payment as in case ot sale through
sUCcesstul bidder only after receiving the
tenders; should
be decided by the CA. The team
) The composition of the auction team will Department and a
of the
preferably include an officer of the internal finance wing
representative of security staf.
10.9 Disposal at scrap value or by other modes
obsolete or unserviceable item at the
Ifa Ministry or Department is unable to sell any surplus or tender or auction, it may dispose it
reserve price, in spite of its attempts through an advertised Associated/integrated
off at its scrap value with the approval of the CA in consultation with the scrap value,
Finance. In case the Ministry or Department is unable to sell the item even at its eco-friendly
it may adopt any other mode of disposal including destruction of the item in an
manner.

10.10 Delivery of Sold Material

10.10.1 Free Delivery Time and Ground Rent
Delivery hs to be taken within 30 (Thirty) calendar days (called free delivery period) from
the date of the acceptance letter/saleorder (excluding the date of issue of acceptance leter/
sale order). The delivery of material will be given only after realisation of the demand draft/
poy order. f the purchaser is not able to lift the material within the free delivery period, he may
request for an extension. Such extensions are generaly granted after levying a ground rent @
i/2(half) per cent of the sale value per day. But, in some genuine cases, the levy of ground
rent may be waived. An accounts representative will be responsible for seeing that when the
ground rent has become due, it is recovered by the stockholder before delivery of the stores.
The amount realised as ground rent should be noted in the issue note by the stock holder and
certified by the stock verifier. The stockholder will be responsible for remitting the cash to the
cashier and obtaining areceipt.
10.10.2 All Risks to the Buyer
The items shallremain, in every aspect, at the risk of the buyer from the time of acceptance of
his offer. The seller willnot underiake any liability whatsoever for the safe custody, protection or
preservation after the sale has been confirmed. Lots are put up for sale, subject to change by
nature's wear and tear. No complaintregarding the quality or descripion of the maBerials sold
will be entertained once the bid has been accepted.

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Department of Expenditure

10.10.3 Terms of Delivery

No picking, choosing, sorting, welding, cutting or breaking of goods or materials sold will be
permitted unless otherwise specified. In used/waste oil. separation of oiland water,and so on,
shall not be allowed at the site. If these gctions are allowed, there is possibility of leakages. In
components behind.
mixed lots, the buyer may take undue advantage by leaving cheaper
whole machinery is sold and cutting and breaking is allowed,other it would be difficult to ensure that
and not unsold material or from other
the purchaser is taking out only his own cut material included
lots. Itany toreign maBerials are found to be mixed in the lot, other than the items
SCrap order, the seller reserves the right to remove
inthe auction catalogue and acceptance letter/saleentitled to re-sell an item, lot or part ot a lot
not be
them at the time of delivery. The buyer shall the seller and any such sale or assignment
still lying within the premises of
while the goods are quction will not be recognised. All documents tor
right to the material sold in an
of the buyer's only.
releasing materials will be made out in the name of the buyer
delivered only to the successful bidder or his authorised representatives
Ihe material will be
buyer's identity proof. If the successful bidder desires to authorise
against the presentation of the delivery, the bidder shall produce a suitable power
to accept
a representative or an agentletter for each lot separately, duly attested, by a notary public
ot attorney or authorisation agent to lift the material from the seller.
authorising his representative or
10.10.4 Default by Seller caUses
way, responsible for failure to deliver the material due to
The seller willnot be, in any hours,
strike, lockout, cessation of work by labourers, shortened to
beyond his control such as a contingencies whatsoever. The buyer shallnot be entitled
other proportionately.
act of God or other causes or shall automatically be extended
delivery
cancel the contract and the period of
10.10.5 Default by Buyer the seller
removed within the specified date will become the property of
Materials sold but not without any
right to dispose of such goods in any manner as he deems fit
and it will have the
notice.
10.10.6 Witnessing Delivery
before delivery, this being supervised by the:
Allmaterials sold shall be weighed or counted
i) Stock-holder's representative;
Accounts representative - stockverifier;
constable; and
i) Representative of the security force of a rank not less than
iv) Representative of the purchaser (if he wants to be present).
10.10.7 Deliveries of Scrap
weighment is to be done in
At the time of delivery of scrap material to the purchaser, the the Head of Office. The
the presence of the stockholder's representative, so nominated by
stockholder's representative and accounts representative will sign a joint statement indicating
the type of scrap, name of the party to whom scrap is delivered and quantity as per the

154
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Department of Expenditure
Chapter- 10
to be affected
stock-holder
the deliveries
according
should arrange forshould take every possible step to expedite
weighment slip. The and conditions ofsale. He shouldl count, measure or weigh each
and terms
the agreement auctioned materials. Thestock
verifier
shown inthe sold lot to ensurelotthator
deliveryof the comparisonof the description and quantity shown in the sold lot are being
part of a lot after as have been
quantities of materials notes in token of sUch a check. In giving delivery of
issued;
such kinds and
only
sign the gale passes and issue
be weighed on electronic
weighing scales fil and
he should material should verifier in his
scrap of
non-ferrous items, the
should be recorded in detail by the stock Weigh Bridaes
consignment
the weight of each should be done through Electronic Weigh Bridges. All the Government
the State
book. Alldeliveriescertificate from Weight &Measurement Department of
should have valid himself that entries made therein agree with
should sign the issue note after fully satisfying attested by the other representatives making
He book should be
those in the field book. The field their having accepted the correctness thereof.
delivery of the goods intoken of and particulars of the gate pass issued
carts should be weighed
The empty and loaded trucks orgate pass should be countersigned by the stock verifier.
recorded. The issue note and and
materials should be done under the supervision of the stockholder
The loadingof the sold representatives. The stockholder will be responsible for realising the
be witnesed by other
loading charges, if any, from the purchaser.
10.10.8 Variation in Available Quantity
delivery, the actual quantity may vary from the quantity mentioned in the delivery
At the time of seller reserves the right to retain material in
order. In case of excess available material, the
purchaser may be allowed to lift the additional
excess of quantity in the lot at its discretion. The
quantity after making the requisite additional payment to the seller.
announced quantity, the
If the quantity in a lot on actual weighment or count is less than the purchaser thereof will be
seller will not make good the deficiency under any circumstances. The
entiled to obiain a refund for the undelivered quantity at the quoted rate. No interest will be
paid on the amount of short delivered quantity. The reasons for shortfall should be recorded by
the stockholder and the Head ofOffice (or any other officer as per SoPP) should also record
his opinion. Any refund in this regard will be made with the Head of Office's (or any other
officer as per SoPP) recommendation, the Associated/integrated Finance's concurrence and
CA' approval.Copies of the weighment slip willbe the base for determining the refund amount.
It may be necessary to look into the ledgers for the total quantity held by the stockholder and
particularly so in the case of non-ferrous scrap; the item concerned may have to be processed
for special stock verification. In case of a short delivery of the material, the refund of taxes will
be the responsibility of the successful bidder only.
10.10.9 Conclusion of Delivery
The sellersresponsibility ends after the consignment has been loaded and handed over to the
representative of the purchasers. The seller will be no party to any dispute that may arise after
the loading has been completed. At the conclusion of the delivery of the lot or
to the item of scrap, any stock, left over should be verified by the lots, pertaining
Accounts Department with
 MANUAL FOR
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PROCUREMENT OF GOODS 2017
Ministry of Finance
Department of Expenditure
Chapter- 10

the book balance and any discrepancies adjusted. Such "left over" stock may be transferred to
k oSimilar description. At the conclusion, a report ofsale account of goods disposed
has to be submitted to the CA and FA. to show thot ony the material paid for (and noining
has been disposed of and that all povments due (and nothing less) have been credited to ne
relevant accounts. A format of the report is shown in Annexure Z
10.11 Procedure for Adjustment of Sale Proceeds in the Books of Accounts
of
Ihe following procedure may be followed for adiustment of sale proceeds in the books
accounts:

a) the sale proceeds should first be applied

IH the realised price is more than the book value,book value is lying, and the remaining
towards the "head of account' in which the
and
portion should be treated as "profit on sale of capital asset"; of
realised price is less than the book value, it should be apportioned in the ratio
b) lHthe sanction
and that of the spares. In this case, the CA's
the reserve price of the equipment
between the book value and the realised price
would be
to write off the difference
necessary.

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Department ofEXpenditure

or
(ii) For surplus or obsolete
are made over correctly to his successor. A unserviceable goods with residual
statement giving all relevant details of the Lakh, the
value less thán Rupees Twodetermined
goods, materials etc., in question shall be mode of disposal will be
prepared and signed with date by the by the competent authority,tokeeping in
relieving officer and the relieved officer. the necessity avoid
view
Each of these officers will retain a copy of accumulation of such goods and
the signed statement. consequential blockage of space and,
Disposal of Goods. also, deterioration in value of goods to
Rule 217 Ministries/
item may be declared surplus or be disposed of. far as
() Anobsolete or unserviceable if the same Departments should, as goods.
possible prepare a list of such
is of no. use to the Ministry or obsolete or
Department. The reasons for (ii) Certain surplus or as expired
obsolete unserviceable goods such
declaring the item surplus or recorded medicines, food grain, ammunition
be
or unserviceable should etc., which are
hazardous or unfit for
by the authority competent to should be
purchase the item. human consumption, immediately
disposed of or destroyed
may, at his
(ö) The competent authoritycommittee mode so as to
constitute a at by adopting suitable hazard and/or
discretion, as avoid any health also the
appropriate level to declare item(s) environmental pollution and
surplus orobsolete or unserviceable. possibility of misuse of such goods.
(iii) The book value, guiding
price and obsolete or unserviceable
required (iv) Surplus or and documents,
reserved price, which will be goods, goods, equipment
surplus security concerns (e.g.
while disposing of the out. In case which involve
currency, negotiable instruments,
should also be worked
work out the security press
where it is not possible to purchase receipt books, stamps,
original disposed of/ destroyed
book value, the question may be etc.) should be manner to ensure
price of the goods in in an appropriate
for disposal
utilised. A report of stores GFR- compliance with rules
relating to
Form 10. well as financial
shall be prepared in item becomes
official secrets as
(iv) In case an negligence, prudence.
Tender.
unserviceable due to
the part of a Rule 219 Disposal through Advertised
adopted for this
mischief on to be
fraud or
Government servant, responsibility () The broad steps follows:
purpose are as
be fixed. Preparation of bidding
for the same should (a)
waste/Scrap
(v) Sale of Hazardous waste: Scrap
Batteries/Electronic documents.
for the surplus
hazardous waste, (b) Invitation of tender
lots comprising of sold keeping in goods to be sold.
batteries etc. shall be
of Ministry
view the extant guidelines Prospective (c) Opening of bids. bids
of Environment & Forest.of hazardous (d) Analysis and evaluation of
bidders of such lots received.
should responsiv
waste/scrap batteries/ e-waste valid (e) Selection of highest
registration,
be in possession of and on the
bidder.
on the date of e-Auction () Collection of sale value
from th
date of delivery, as recycler/ pre selected bidder.
processor agency. order to th
(a) Issue of sale release
Rule 218 Modes of Disposal. unserviceable
selected bidder.
Surplus or obsolete or
(0) value (h) Release of the sold surplus gco
goods of assessed residual be to the selected bidder.
above Rupees Two Lakh should
disposed of by : () Return of bid security to tt
advertised unsuccessful bidders.
(a) obaining bids through ke
tender or (ü) The important aspects to be

in view while disposing the
goods
through advertised tender are as
under:
(o) The basic principle for sale of
such goods through
advertised tender is ensuring
transparency, competition,
fairness ond elimination of
discretion. Wide publicity
should be ensured of the sale
plan and the goods to be
sold. All the required terms
and conditions of sale ore to
be incorporated in the
bidding docUment
comprehensively in plain and
simple long uage
Applicability of toxes, as
relevant, should be clearly
stated in the document.
(b) The bidding document
should also indicate the
location and present
condition of the goods to be
sold so that the bidders can
inspect the goods before
bidding.
(c) The bidders should be asked
to furnish bid security along
with their bids. The amount of
bid security should ordinarily
be ten per cent. of the
assessed or reserved price of
the goods. The exact bid
security amount should be
indicated in the bidding
document.
(d) The bid of the highest
acceptable responsive bidder
should normaly be accepted.
However, if the price offered
by that bidder is not
acceptoble, negotiation may
be held only with that bidder.
In case sUch negotiation does
not provide the desired result,
the reasonable or acceptable
price may be counter offered
to the next highest responsive
bidder(s).
(e) In case the total quantitiy to be
disposed of cannot be taken
up by the highest acceptable
bidder, the remaining
quantily may be offered to the
OEINCKALCIINAINCIAU:NULCOYAVI
Ministry of Finance
Department of Expernditure
next higher bidder(s) at the
price offered by the highest
acceptable bidder.
(f) Full payment, i.e. the residual
amount after adjusting the bid
security should be obtained
from the successful bidder
before releasing the goods.
(g) In case the selected bidder
does not show interest in
liting the goods, the bid
security should be forteited
and other actions initiated
including re-sale of the goods
in question at the risk and cost
of the defaulter, after
obtoining legal odvice.
after the
(i) Late bids i.e. bids received should
specified date and time of receipt
not to be considered.
Rule 220 Disposal through Auction. may
() A Ministry or Department to be
undertake auction of goods
disposed of either directly or through
approved auctioneers.
be followed
() The basic principles to for
here are similar to those applicable
disposal through advertised tender so
transparency,
as to ensure
competition, fairness and elimination
of discretion. The ouction plan
including details of the goods to be
auctioned and their location,
applicable terms and conditions of the
sale etc. should be given wide publicity
in the sme manner as is donein case
of advertised tender.
(ii) While starting the auction process, the
condition and location of the goods to
be auctioned, applicable terms and
conditions of sale etc., (as already
indicated earlier while giving vide
publicity for the same), should be
announced again for the benefit of the
assembled bidders.
(iv) During the auction process,
acceptance or rejection of a bid should
be announced immediately on the
stroke of the hammer. If a bid is
accepted, earnest money (not less
than twenty-five per cent. of the bid
value) should immediately be taken on
the spot from the successful bidder
 Chapter
GENERALFI NANGIAL RULES 2017
Ministry ot Financo
Depariment Expenditure
either in cash or in the form of (i) anticipated losses on account of
obsolescence of stores or of purchases
Deposit-at-Coll-Receipt (DACR),
drown in fovour of the Ministry or in excess of requirements;
Department selling the goods. The (iv) losses due to damage, and
goods should be handed over to the (v) losses due to extra ordinary situations
sUCcesstul bidder only after receiving under 'Force Majeure' conditions like
the balance payment. fire, flood, enemy action, etc.;
(v) The composition of the auction team
will be decided by the competent
authority. The team should however
include an officer of the Internal
Finance Wing of the department
Rule 221 Disposal at scrap value or by ther
modes. If a Ministry or Department is
unable to sell any surplus or obsolete or
unserviceable item in spite of its attempts
through advertised tender or auction, it
may dispose of the same at its scrap value
with the approval of the competent
authority in consultation with Fingnce
division. In case the Ministry or
Department is unable to sell the item evern
at its scrap value, it may adopt any other
mode of disposal including destruction of
the item in on eco-friendly manner.
Rule 222 A sale account should be prepared for
goods disposed of in Form GFR 11 duly
signed by the officer who supervised the
sale or auction.
Rule 223 (1) Powers to write off. All profits and
losses due to revaluation, stock-taking or
other causes shall be duly recorded and
adjusted where necessary. Formal
sanction of the competent authority shall
be obtained in respect of losses, even
though no formal correction or adjustment
involved.
government accounts is
Powers to write off of losses are available
under the Delegation of Financial Powers
Rules.
Rule 223 (2) Losses due to depreciation: Losses
and
due to depreciation shall be analysed,
recorded under following heads, as
applicable :.
() normal fluctuation of market prices;
(ü) normal wear and tear;
(i) lack of foresight in regulating
purchases; and
(iv) negligence after purchase.
Rule 223 (3) Losses not due to depreciation :
Losses not due to depreciation shall be
grouped under the following heads:
0) losses due to theft or fraud;
(0 losses due to neglec;
 AIRPORTSAUTHORITY OF INDIA Annexure-A
The efer, ceiT, wB® SIKKIM. 34F57-fAe
Aayakas Bhaan,P-7chowringhee sy. DIRECTORATE OF EQUIPMENT
Kera7oce69 aIçA Ga tevr te Ciffice cf the Income Tax
cONDEMNATION INSPECTION REPÖRTer, (0SD)/PLO Seciion
1
26 JUN Z0ZU y
2.
Date
Inspection: 23lcecc TC/CE/TED
Particulars of Vehicle: Under Pr. CCIT, WB &Sikkirn
(#) YsU
(a) Regn. No. ...3.06.3269.:.. (e) Total Kms./Hrs. Run......6.99.KMA..AREM..........

(b) Make and ModelAMaASSAbeR.cAASSAG.180D0 Kms./Hrs. Run ater last overhaul ..

SZ MPEL
vehicle_Rs37LI26
(c) Date of induction into service..0O9 (9) Purchase cost of the

(d) RAC Horse Power.. LSeo(ce) (h) Total expenditure incurred on repairs and
maintenance so far.RS2357L52

Engine No: 3ELGJj09 75S

Present mechanical condition: Engine:
Chassis No : MA7AM18MGJUO01679
(a) Engine compression in cylinders

Poor/Satisfactory/Good Y2345h67816t42
(T) 5a NG-q
(b) Engine Pick-up Poor/Satisfactory/Good

(c) Top Overhaul Required/ Not- Required

(d) Major Overhaul Reuired/ Not- Required

4. t y qtafa
Transmission system:
() 4e
(a) Clutch Slip/ Spin/ pulsatlon/ nolsel needs Overhaul/ Satisfactory/ Good
() Mr RH
(b) Gear Box Humming/ nolsy/ slip outt need overhaul/ good/ satisfactory
od

(c) Power takeoff Humming/ nolsy/ sllp outt need overhaull good/ satlsfactory
() ty eTE
(d) Prop shaft Vlbratlon/ metalc rate/ sequel/ need replacement/ Satisfactory/ Good
(3) suifuG
(e) Differential/ differentials Humming/regular knock/knocking while turning/need O.Higood/satlsfactory
() Fufra
() Steering Stiff and hard/ excesslve free movement/ nolsyl need ol/ good/ satisfactory

(3) 19hnsi8\STHF Roob

Süspenst6.E) FyS: s Nolsyl losing/ need overhaul satisfactory/ good
(9)

(h) Break system Spongy/ sluggish/ pulling sidewise/ need Qverhaul/ satisfactory/ good
 AIRPORTSAUTHORITY OF INDIA Annexure-A
34F47-feTY
Theto Pre ceiT, wBsiKKIM DIRECTORATE OF EQUIPMENT
Aaykee Bhawen, -7 ehowtinghee s Office of the Ircome Tax
KoLKete-7ote69, CONDEMNATION INSPECTION REPORT
Officer, 0SD)/PLOSection

26 JUN 2UZU
1

Date of Inspectlon:
2.
Under Pr COII WB & Sikkim
Partlculars of Vehlcle:
(*) ohRUT Run...50..0h..K.M..aA.eR...
(a) Regn. No. ..B.0éB..32Gk.. (e) Total Kms./Hrs.

Model4MRASSADaRASSIC.I80-() Kms./Hrs. Run after last overhaul ......

(b) Make and
(1) HffT 6
SZMPFI.
ar vehiclo~uZLL264 the
(g) Purchase cost of
(c) Date of induction Into service...J

incurred on repairs and

(h) Total expenditure
(d) RAC Horse Power.
maintenance so
far.Rs.LZE.6481
3. dHa yiG fRf: s : I09730
Engine No: 3ELFJ
Present mechanical condition: Engine: Chassis No :MAZAMI&MJUOOI6S0

(a) Engine compression in cylinders

Poor/Satisfactory/Good 123 45 6 7 8 0 2

Poor/Satisfactory/Good
(b) Engine Pick-up

Required/ Not- Required

(c) Top Overhaul
(T) 3Ìar 3T
Reguired/ Not- Required
(d) Major Overhaul

4. t y qeafa
Transmission system:

Overhaul/ Satisfactory/ Good

(a) Clutch
Slip/ Spin/ pulsation/ nolse/ needs
() TH
satisfactory
Humming/ noisy/ slip out need overhaul/ good/
(b) Gear Box

satisfactory
(c) Power takeoff Humming/ noisy/ slip out/ need overhaul/ good/

Good
(d) Prop shaft VIbration/ metallic rattle/ sequel/ need replacementt Satisfactory/
(3) fsvtTT
(e) Differential/ differentials Hummingregular knock/knocking whlle turning/need 0.Higood/satisfactory
(T) Fura
satisfactory
(0 Steering Stiff and hard/ excessive free movement/ noisy/ need oill good/

() teH
(9) SuspeHsobroiäSs b Nolsy/ losing! need overhaul satisfactory/ good
(a) 54NA
(h) Break system Spongy/ sluggish/ pulling sidewise/ need overhaul/ satisfactory/ good
 () taea qLzft
(i) Cooling System:
(0) fstT

Rusty/ not cooling/ damaged/ perished/ choked/need

() Radlator
() eT qy
O.H/satisfactory/good
(i) Water Pump Nolsy/ leaking/ satisfactory/ good

(ii) Hose connection Perlshed/ cracked/ leaking

()
(O) Chassis Bent/ cracked/ damaged/ satisfactory/ good

()
(K) Body Ratting/ rusted/ body and floor needs renovation/ satisfactory/ good
(3) TEtt
() Upholstery Need repairs/ need renovation/ satisfactory

(m) Electrical system:

(i) ERT Aa
(0) Starter motor Needs O.H/ Unserviceable/ satisfactory
(ii) SGH/ 31CK
(i) Dynamol Alternator Needs O.H/ Unserviceable/ satisfactory

(ii) Battery Charger Needs O.H./ Unserviceable/ satisfactory

(iv) faualGdGNA
(iv) Electrical/ connection Needs replacementt needs repair/ satisfactory

(v) Controi Panels Needs replacement/ needs repair/ satisfactory

(n) Whether the required/ norms are fulfilled not wÝes/ No

(o) Condition of fitment items:

() TgR. (i) tt.
() Tyres...wtA.... (i) Battery.
(a) 3rafta
(p) Remarks

(g) Recomniended/ net reeMmeRded for condemnation

Tkis cass monethenl)eleven yeansoldo Itis
meured expenditune of Rs., T8,648- towands total ugpab
ten ,s0, 047KM nhis lipe tme, and
Ceds uls Condition and fds Bmaintenance tilLate. presenty he
aleseletemodel, lot ofexpenditre
his ca ahich will he CGER) kegane-fapepeoty heead -
ofeonlemnatim Meneetis necommendel Leyondeonomical
far hapae and this Qaefljuling hensns
condemnain
Name and signature of Inspector (s)

Sufit Baenin
Rroag az/Bijender kumer
trit tIRegjonal ERM Worahp
Wfa,Aaàa. rag g, G-52
AA.l., N.S.C.B.A. Airport, Kolkata-52