Rules Instructions and Procedures

    Condemnation and Disposal of Stores

    Condemnation and disposal of stores is governed by the rules for the Condemnation and Disposal of Unserviceable/Surplus Stores, contained in Annexure ‘C’ to chapter 15 of P.F.R. Volume 1 (Annexure I). The application of these rules has also been extended to the stores belonging to Public Sector Undertakings, Local Bodies etc. since 15-10-1984.

    Rule 3 of these rules stipulates that all the Heads of Departments in the State should forward to the Director, Supplies and Disposals, Haryana quarterly each year by the prescribed date (1st of January, April, July and October each year) a statement of unserviceable or surplus stores in the form prescribed in Appendix I of the said rules. But the State Government vide their memo No. i l(2)-4-5IB-II-85, dated 11-6-1985 (Annexure II), have recently entrusted the work of condemnation and disposal of vehicles in the districts to the Condemnation Committee constituted for each District under the Chairmanship of Deputy Commissioner concerned. The composition of this committee is as under

    The composition of this committee is as under
    Designation Committee
    Deputy Commissioner of the District concerned Chairman
    Representative of the Indenting Department/Organization Member
    S.D.O., Mechanical, B & R, Haryana -do-
    Works Manager, Haryana Roadways -do-
    Any other member whose inclusion in the Committee is considered necessary by the Chairman -do-

    As such the indents for the condemnation and disposal of vehicles belonging to Government Departments/Public Sector Undertakings etc. in the districts are to be sent to the office of the Deputy Commissioner concerned, while the work relating to all other types of unserviceable and surplus stores whether in the districts or at the State Headquarters as well as Vehicles of Government Departments/Public Sector Undertakings, Local Bodies etc. at the State Headquarters will continue to be condemned and disposed off by the Director, Supplies and Disposals, as heretofore.

    Indent Register and Opening of case file

    On receipt of an indent, it is entered in ‘the indent register in form CD 1 in chronological order and a new case file assigning corresponding No. of indent register is then opened. The Sr. No. given in the indent register is suffixed by the year of receipt of statement in the office of Director, Supplies & Disposals. For example, if a statement is received in the office of Director, Supplies & Disposals, in the year 1983-84 and has been registered in the indent register at Sr. No. 500, the case file No. will be DS & D/DISP/500/83-84.

    Submission of the case to the Condemnation Board

    The indent is examined by the dealing Assistant with reference to the following points namely

    • Only when the book value of the stores exceeds Rs. 10,000 the case is put up to the Board
    • Where the book value of such stores is less than Rs. 10,000 the Inden­ting Department is informed that it may be disposed off at their own level

    The case is submitted to Branch Officer seeking his approval for placing it before the next Condemnation Board for inspection and determination of reserve price as laid down in rules 12 and 14 ibid.

    The Board consists of five members including a representative each of the Indenting Department, Director, Supplies & Disposals and Deputy Commissioner of the Distt. concerned. The remaining two are members selected by Director, Supplies & Disposals out of the following, according to the nature of stores

    • Chief Engineer, Building and Roads Branch
    • Chief Engineer, Electricity Branch
    • Chief Engineer, Irrigation Branch
    • Chief Engineer, P.W.D. Public Health Branch
    • Inspector-General of Prisons, Haryana
    • Inspector-General of Police, Haryana
    • Director of Agriculture, Haryana
    • Director of Industries, Haryana
    • Director of Public Instructions, Haryana
    • Director of Health Services, Haryana
    • State Transport Controller, Haryana
    • Chief Conservator of Forests, Haryana

    In the case of vehicles, the representatives of the Transport Department and PWD (B&R) Mech. are invariably included.

    Three members form the quorum

    The present designation is Engineer-in-Chief.
    The present designation is Chairman HSEB

    Th e Board meets four times a year, once in each quarter normally in the month of January, April, July and 50 October. Since the association of technical members is essential it is advisable that such meetings are held in the office of the Works Manager, Haryana Roadways or XEN/SDE technical P. W. D., B & R especially when the stores involved are automobiles or machinery.

    After the approval of the Branch Officer the case is included in the programme of the next Condemnation Board. About a fortnight before the date of the meeting of the Condemnation Board, the agenda is sent to the Indenting Officers and to the members of the Condemnation Board, intimating the date and venue of meeting and the details of stores to be inspected.

    The Indenting Officer is sent a proforma of inspection report and proceedings in form CD2 with a request to keep six copies of the detailed particulars of the stores ready, duly typed, to be put up to the Condemnation Board.

    Inspection of Stores by Condemnation Board and Proceedings

    On the date fixed for the meeting of Condemnation Board, the detailed particulars of the stores giving its brief life history are put up to the members of the Board. Considering the life history of the stores, its present condition and the market trend, the Board fixes the reserve price of the stores. The proceedings of the Board are drawn up in the form CD3 as mentioned in rule No. 3(c) and six copies are prepared. The proceedings are signed by all the members on the spot.

    Sanction for Condemnation and Disposal

    Four copies of the inspection report of the Condemnation Board are handed over to the Indenting Officer. These proceedings form the basis of proposal for referring the case to the Administrative Department by the Indenting Officer for the declaration of the stores as unserviceable or surplus and their disposal, under rule 19.14A of PFR Volume L

    Sanction for disposal

    On receipt of administrative approval from the Indenting Department, Director, Supplies & Disposals, refers the case to the Government in the Industries Department for obtaining sanction for disposal of stores by “calling tenders under rule 21 of the Rules for the Condemnation and Disposal of Unserviceable or Surplus Stores, provided their book value exceeds Rs. 25,000. In the case of stores of lesser value, Director, Supplies & Disposals is himself competent to invite tenders. However, no such sanction is required to be obtained in the case of vehicles. These are to be disposed off by public auction as per latest Govt. decision in the manner laid down in Para 16.7 below.

    Disposal of Vehicles by Public Auction

    An auction notice is published in the press for holding of auction of these vehicles setting forth the time, date and venue of such auction and the Departments/Organizations concerned are informed accordingly. They are required to produce the vehicles at the venue of the auction at least one hour before the scheduled time of auction and depute their officer as well as the cashier along with receipt book to attend the public auction on behalf of the Indenting Department/ Organization. The auction is held at Panchkula within Haryana Territory so that the sales tax accrues to the State Government. The District Excise & Taxation Office is also required to depute an official for the collection of sales tax at the spot.

    The terms and conditions of auction are announced at the spot which are briefly as under

    • All the intending bidders shall be required to deposit Rs. 500/- as earnest money with the official of the Directorate. This earnest money will be adjusted towards the sale price in the case of successful bidders while in other cases, it will be refunded at the end of the auction
    • 25% amount of the highest bid which is finally accepted is to be deposited by the bidder with the cashier of the Indenting Department / Organization concerned at the fall of the hammer against receipt to be issued, by him and balance 75% amount within 72 hours failing which the amount already deposited shall stand forfeited to Government
    • In case the highest bidder fails to deposit 25% at the fall of the hammer, the earnest money deposited by him shall be forfeited
    • The highest bidder shall deposit sales tax/surcharge with the Sales Tax Assistant of this Directorate
    • Where the highest bidder wishes to deposit the total amount, he shall be allowed to do so on the spot whereupon a Sale order will be accordingly issued in bis favor by the officer of the Directorate holding the auction and the vehicles delivered to him there and then. In other cases the delivery is made after the full payment has been made by him. The documents of title are also delivered to him along with the vehicle
    • The vehicle is handed over on as is where is basis

    Auction bid sheet (form CD-4) is prepared in respect of each vehicle indicating the bid quoted by various bidders and final bid is encircled and initialled by the officer holding the auction. The auction bid sheet is signed by the officers of the Directorate and Indenting Department. A copy of the auction bid sheet is supplied there and then to the Indenting Officer.

    Immediately at the fall of the hammer, the highest bidder is called upon to deposit 25% amount of the highest bid with the Cashier of the concerned Indenting Department/Organization who issues the receipts in token of having received the payment. Similarly, he also has to deposit Sales tax/surcharge with the Sales Tax Assistant there and then against receipt.

    In case the highest bidder deposits the whole amount of the bid on the spot, sale order in form CD-5 is issued by the officer of the directorate, in charge of the auction which entitles him to take the delivery of the vehicle there and then along with the title documents. In other cases the sale order is issued by the Directorate only after he has deposited the balance amount of 75 % within 72 hour’s with the Indenting Officer. On the production of the sale order the Indenting Officer gives the delivery of the vehicle along with documents of title.

    In the case of auction at the District level, the auction bid has to be signed by all the members of the Condemnation Committee present at the time of auction.

    The sales tax is to be deposited by the highest bidder in the treasury or with the Sales Tax Inspector of the happens-to be present at the time of auction.

    The Sale letter (CD-6) is issued by the Indenting Officer on the spot if tile full payment is made. In other cases the sale letter is issued only after full payment has been received by him.

    The Deputy Commissioner sends a report of the auction proceedings in each case to this Directorate within a week in the form CD-7.

    Invitation of tenders for Disposal of Unserviceable Stores

    On receipt of the sanction of the Government in the Industries Department, for disposal of other unserviceable stores by calling tenders, the Indenting Officer is requested to deposit document of title e.g. registration book with the Di recto-rate. A tender notice is prepared and sent to the Administration section for including the same in the consolidated tender notice which is published on 1st and 16th of every month. Simultaneously a schedule is prepared inform CD-8 giving the serial number of tender, date and time of opening, file No., the parch-culars of the stores, where these are lying and other terms and conditions of the tender. Sufficient number of copies of this Schedule are placed with the receiptionist to be given to prospective tenderers. Copies of the Schedule are also supplied to the Indenting Officers, Head of the Departments concerned and the officer in charge holding the stores under a covering letter in Form CD-9. The tenders are required to be submitted on plain paper along with earnest money of Rs. 500/- in each case in form of Call Deposit Receipt drawn on any Scheduled Bank, in favor of the Director, Supplies & Disposals, Haryana.

    Procedure for Disposal of Surplus Stores

    In the case of Surplus stores, the lists of such stores are in the first instance circulated amongst various Departments who may be interested in the purchase of these stores at the reserve price. In case no intimation is received within 2 months, these are disposed off by calling tenders like other unserviceable stores.

    Opening of Tenders

    The tenders are received in the locked box as prescribed in para 6.7(b) of chapter VI. At the prescribed time the tender box is opened and sealed envelopes containing tenders are taken out. The Section In charge of Disposal Branch gets hold of all the sealed envelopes relating to tenders for disposal and then these are sorted out according to Sr. No. of each case. The same are then opened by a panel of the officers including three officers of the Directorate and a representative of the Vigilance Bureau, not below the rank of Deputy Superintendent of Police, in the presence of tenderers who might like to be present at that time. A bunch of tenders received in each case is prepared for each file. A covering list in duplicate is prepared by carbon process as prescribed in para 6:7(6) of Chapter VI with the exception that the column relating to test reports or sample is not included in the Schedule meant for tender of disposal of stores. The tenders are then signed by the panel of officers on each page and all cutting, overwriting etc. are clearly Attested. The tenders register in form SP-1.5 is then completed and signed by the panel of officers. The rates are announced to the tenderers who may be present, soon thereafter.

    Processing of the case

    All the tenders, sorted out case-wise and duly signed by the panel of the officers, are then placed in the relevant file. The tenders received late are marked as such and are not opened but the envelopes containing such tender are duly signed by the panel of officers and kept in the relevant file for record.

    Preparation of comparative statement

    A comparative statement is then prepared for each case in form CD-10 to show the position of all the offers relating. to the same type of stores as also its reserve price.

    The tenders which are not accompanied by earnest money and are ambiguous or have so. many cuttings/over writings due to which the tender is not decipherable are rejected. The tenders which are found in order in all respects after examination are put up to the Director Supplies and Disposals, through Branch Officer for approval of the highest valid offer.

    Director, Supplies and Disposals, may, in public interest, allow offers not accompanied by earnest money for being considered in the following cases

    • Where the stores have not been disposed off despite earlier attempt(s) and there is/are offer/offers higher than the reserve price against which no earnest money has been deposited
    • Where none of the tenderers has deposited the earnest money at all and the offers are considered to be reasonable
    • Where such offers are higher by 5% or Rs. 1,000/-(whichever is grater) than the highest valid offer received

    In such cases the tenderers may be required to furnish earnest money within a specified time not exceeding 15 days from the date of issue of letter to them.

    Issue of Acceptance Sale Letter

    After approval of highest valid offer by D.S. & D, an acceptance is issued in form CD-1 1 giving the particulars of the stores, the price accepted and time within which the security @ 10% and sales tax is to be deposited by the party whose tender has been accepted. The earnest money is adjusted towards security. A copy of acceptance is endorsed to sales tax Assistant asking him to accept the Sales Tax as and when deposited.

    On receipt of sales tax and security, the sale order in form CD-12 is issued. A copy of the sale order is endorsed to the Indenting Department with the direction that the stores may be handed over to the purchaser after getting the full amount of price of the stores deposited under the relevant head of account in the Government Treasury. The earnest money of unsuccessful tenderers is released at the same time. A sale order can not be cancelled after the purchaser has completed all the formalities vide L.R.'s advice reproduced in Annexure III.

    When the intimation is received from the Indenting Officer that the stores have been lifted after depositing the price, security of the party is released forthwith.

    In case the Indenting Officer does not confirm the lifting of stores immediately after the expiry of the time stipulated in the sale order for lifting of stores and the purchaser approaches this Directorate with a request to release earliest money/security a registered notice in form CD-1.3 is issued to the Indenting Officer to furnish the "no dues' certificate-in favor of purchaser within a specified time. In case no reply is received within the specified time, the. earnest money/security of the purchaser is released forthwith, after obtaining in writing from the purchaser that he has lifted the stores in terms of sale order.

    Extension of Lifting Period

    Normally the lifting period is 15 days but for cogent reasons it can be extended up to a period of further 15 days or more under the orders of D.$. & D./Branch Officer.

    Re-invitation of Tenders

    The tenders may be re-invited in the following cases

    • Where there is no response to the tenders
    • Where all the tenders are invalid
    • Where all the tenders are for a price below reserve price
    • Where there is a single valid tender but the price quoted, though above reserve price, is not considered reasonable in view of the other higher offers which are invalid for want of earnest money or for other reasons
    • Where even though there are more than one valid offers higher than the reserve price, but the highest price fetched is not considered reason-able by the Director for reasons to be recorded in writing
    • Where the tenderer whose offer has been accepted does not deposit the security or sales tax within the specified period
    • Where the purchaser has failed to lift the stores within the specified period mentioned in the registered notice issued to him in this behalf

    Action in case of Default by Par-chaser

    • Where the tenderer whose offer has been accepted, does not deposit the requisite amount of sales tax within the time specified in the letter of acceptance, the acceptance is cancelled and the earnest money deposited by him is forfeited
    • In cases involving more than one item of stores, if the tenderer deposits security/sales tax for only one item and docs not deposit for others, his security deposit is forfeited after issuing the usual show cause notice
    • Whore the purchaser does not lift the stores within the prescribed period of 15 days or extended period, a registered notice in form CD-14 is issued. If the party fails to reply to the registered notice or lift the material inspire of notice, the sale order is cancelled and the security/earnest money of the party is forfeited

      But on the request of the tenderer/purchaser an extension in time may be granted in suitable cases in Form CD-1 5 under the orders of the Director

    Cancellation of acceptance at the behest of Indenting officer

    Normally the Indenting Department is not supposed to incur any major expenditure on the repairs of the stores especially vehicle / machinery which has been condemned by the Board but exigencies of public interest may compel him to do so thereby making the reserve price fixed by the Board irrelevant and also he may not be willing to spare the same for disposal. In such cases, it is the duty of the Indenting Department to intimate the fact to the D.S. & D. forthwith so that the stores are struck off the record.

    Where, however, after the tenders have been called and acceptance letter/ sale order has been issued, an intimation is received from the Indenting Department about their inability to spare the stores for various reasons, the matter is take up with the purchaser who is persuaded to take back his security etc. and call off the transaction. Normally where the tenderer has no objection, the acceptance letter/sale order is withdrawn and the security deposited by the tenderer is refunded to him by the D.S. & D. and sales tax adjusted in other cases. But if the purchaser does not agree and has completed all the formalities, the sale order cannot be revoked under the law.

    Deposit of Safes Tax

    The purchaser is required to deposit the sales tax in the Directorate against the official receipt in form STR 3. T he amount so received is entered on the receipt side of cash book maintained specially for this purpose (called Sales Tax Cash Book) by the Sales Tax Assistant. To enable the sales tax Assistant to realize the -sales tax, a copy of acceptance letter inform CD-11 is endorsed to him. The entries in the Sales Tax cash book are attested by the Branch officer. The sales Tax so collected is deposited in to Government Treasury under the head ''040 Sales Tax" from day to day and entered on the payment side of the sales tax cash book under attestation of the Branch Officer. The sales tax cash book will be closed and cash certified in the same manner as for any other office cash prescribed in chapter II of P.F.R. Volume I.

    The sales tax Assistant shall maintain the following record

    • A file containing all the acceptances of tenders
    • File containing all copies of sale orders
    • Receipt Book
    • Cash Book
    • Sales Tax Registration No. File
    • Quarterly/Annual return of sales tax filed with the concerned assessing authority of sales tax department

    The sales tax Assistant is responsible for ensuring that the sales tax returns are filed in time and all the assessment proceedings before the assessing authority are attended to by him or by any other official of the Directorate.

    Re-fixation of Reserve Price

    When the Stores have been put to sale by calling tender twice or more but either there has been no response or the price quoted has been below the reserve price, the case is referred to the Condemnation Board again for re-fixation of reserve price, keeping in view the condition of the stores and prevailing market trend etc.

    After the Board has made its recommendation the case is processed for obtaining fresh administrative approval but no fresh orders for calling tenders etc. from Government in Industries Department are required, and stores disposed of in the manner laid down in preceding paragraphs.

    Sale Register

    A register in Form CD-16 is maintained by the Disposal Assistant showing the sales made and shall be kept up to date. An abstract showing the progressive total of sales etc. in Form CD-17 is maintained up-to-date and shown to Branch Officer/D.S. & D. by 10th of every month. It is checked by the Section Officer every week and all entries are authenticated by him in token of their correctness.

    Condemnation & Disposal of Vehicles belonging to Public Sector Undertakings, Local Bodies etc

    The State Government vide their letter No. 12/1/10-4-IB-II-84, dated 15-10-1984 (Annexure JV) has directed that all unserviceable/surplus stores belonging to Public Sector Undertakings viz. Boards, Corporations etc. will also be condemned and disposed off by this Directorate on receipt of 5% depart-mental charges on the sale proceeds. However, in view of the latest instructions the vehicles of these organizations will be condemned and disposed off by the Condemnation Committee of the districts concerned while the vehicles at State Headquarters and other unserviceable stores wherever located will be condemned and disposed off by this Directorate.

    All Public Sector Undertakings, Boards, Corporations and Local Bodies etc. are required to remit 5% of the sale proceeds as departmental charges to the Director, Supplies and Disposals by way of Cheque or Demand Draft in favour of Director, Supplies & Supplies & Disposals, within 7 days from the date of receipt of full payment from the purchasers. The Dealing Assistant is required to keep watch over this aspect and bring such cases to the notice of he branch officer where such organizations have failed to deposit departmental charges in could time so that matter be taken up with the higher authorities.