Rule 15 of the General Financial Rules 2017 Rents of buildings and lands

Rule 15 of the General Financial Rules 2017 Rents of buildings and lands

Original Rule Text

Rule 15 (1) Rents of buildings and lands. When the maintenance of any rentable building is entrusted to a civil department, other than the Central Public Works Department, the Administrator or the Head of the Department concerned shall be responsible for the due recovery of the rent thereof.Rule 15 (2) The procedure for the assessment and recovery of rent of any building hired out will be regulated generally by the rules applicable to buildings under the direct charge of the Central Public Works Department.Rule 15 (3) The detailed rules and procedure, regarding the demand and recovery of rent of Government buildings and lands, are contained in the departmental regulations of the departments in charge of those buildings.

Visual Summary

Rent Responsibility

The Head of the department managing a building (not CPWD) is responsible for collecting rent.

Standard Procedure

Rent assessment and recovery must generally follow the rules used by the Central Public Works Department (CPWD).

Detailed Rules

Specific, detailed procedures for rent collection are found in the managing department’s own regulations.

Executive Summary

Rule 15 clarifies who is responsible for collecting rent from government buildings and lands. If a civil department (other than the Central Public Works Department – CPWD) is in charge of a rentable property, the head of that department is responsible for ensuring the rent is collected. The general process for calculating and recovering this rent should follow the same rules that the CPWD uses. However, the specific, detailed procedures are located in the managing department’s own internal regulations.

In-Depth Analysis of the Rule

This rule establishes a clear framework for managing rental income from government properties, ensuring accountability and consistency.

Rule 15(1): Pinpointing Responsibility
This clause assigns direct responsibility for rent collection. The Central Public Works Department (CPWD) is the primary agency for government construction and maintenance. However, many other civil departments also manage their own buildings. This rule states that if such a department (e.g., the Department of Education, Ministry of Health) has a rentable building, its own Head or Administrator is accountable for collecting the rent. This prevents confusion and ensures that rental income, a source of government revenue, is not neglected.

Rule 15(2): Establishing a Standard Procedure
To maintain uniformity across different departments, this clause mandates that the general procedure for assessing (calculating) and recovering rent should align with the rules followed by the CPWD. The CPWD has well-established norms for property valuation and rent collection. By making these norms the standard, the rule ensures a consistent and fair approach, regardless of which department is managing the property. It prevents departments from creating arbitrary or inconsistent rental policies.

Rule 15(3): Acknowledging Department-Specific Details
While the general principles are standardized by referencing CPWD rules, this clause recognizes that each department may have unique operational needs. Therefore, the most detailed, step-by-step procedures—such as specific forms, deadlines for payment, and follow-up actions for non-payment—are contained within the departmental regulations of the organization in charge of the building. This provides a two-tiered system: a high-level standard for consistency and low-level flexibility for practical implementation.

Practical Example:
Imagine the Department of Science and Technology has a research facility with a few unused office spaces. They decide to rent these out to a tech startup. According to Rule 15(1), the Secretary of the Department of Science and Technology is ultimately responsible for making sure the rent is collected. To determine the rent amount, they would refer to the general valuation guidelines used by the CPWD, as per Rule 15(2). For the day-to-day process, like issuing the monthly rental invoice and the deadline for payment, they would follow the specific procedures laid out in the Department of Science and Technology’s own financial manual, as per Rule 15(3).

Related Provisions

This rule functions within the broader context of revenue management in the General Financial Rules. Understanding the following provisions can provide a more complete picture:

  • Rule 9: Assessment, collection and allocation of revenue – This rule places a general duty on departments to ensure all government dues, including rent, are correctly assessed and collected. Rule 15 is a specific application of this principle to rental properties.
  • Rule 14: Progress of collection of revenue – This rule requires departments to keep the Finance Ministry informed about revenue collection progress. This would include reporting on the rents collected under Rule 15.
  • Rule 18: Remission of Revenue – This rule states that a claim to revenue cannot be waived without sanction from a competent authority. This would apply if a department considered reducing or waiving the rent due on a property.

Learning Aids

Mnemonics
  • Remember the 3 ‘R’s of Rule 15: The Responsibility for Rent Recovery rests with the department head, following the Rules of CPWD.
Mindmap
Rentable Govt. BuildingManaged by CPWD?Head of the managingcivil department is responsibleCPWD is responsibleAssessment & RecoveryProcedure follows CPWD RulesDetailed procedures are inthe managing dept’s regulationsRent is Duly RecoveredNoYes

Multiple Choice Questions (MCQs)

1. [Easy] Who is responsible for the recovery of rent from a building maintained by a civil department, other than the Central Public Works Department (CPWD)?

  • A) The Ministry of Finance
  • B) The Central Public Works Department (CPWD)
  • C) The Administrator or the Head of the Department concerned
  • D) The tenant occupying the building
Show Answer

Correct Answer: C) The Administrator or the Head of the Department concerned.

2. [Medium] The general procedure for the assessment and recovery of rent for a building hired out by a government department is regulated by the rules applicable to which organization?

  • A) The Reserve Bank of India
  • B) The Central Public Works Department
  • C) The specific department’s own unique rules, independent of any other body
  • D) The local municipal corporation
Show Answer

Correct Answer: B) The Central Public Works Department.

3. [Hard] According to Rule 15, where would an official find the most specific and detailed procedures for demanding and recovering rent for a building managed by the Department of Posts?

  • A) In the rules generally applicable to buildings under the direct charge of the CPWD.
  • B) In the General Financial Rules, 2017 itself.
  • C) In the departmental regulations of the Department of Posts.
  • D) In a special circular issued by the Ministry of Finance.
Show Answer

Correct Answer: C) In the departmental regulations of the Department of Posts. (Rule 15(3) specifies that detailed rules are in the regulations of the department in charge).

Frequently Asked Questions

What happens if the building is managed by the CPWD?

This rule specifically applies to buildings managed by civil departments *other than* the CPWD. If a building is under the direct charge of the CPWD, then the CPWD itself is responsible for all aspects of its maintenance and rent recovery.

Does this rule set the exact rent amount for a property?

No, Rule 15 does not specify exact rent amounts. It establishes the framework of responsibility. It states that the *procedure* for assessing rent should follow CPWD guidelines, but the detailed rules for calculation and demand would be in the specific department’s own regulations.

Why is there a distinction between ‘general’ rules (CPWD) and ‘detailed’ rules (departmental)?

This creates a balanced system. Using CPWD rules as a general standard ensures consistency, fairness, and a baseline of professionalism across all government departments. Allowing for detailed rules within each department provides the necessary flexibility to handle their specific operational contexts and procedures efficiently.

Key Takeaways

  • The Head of a department managing a rentable building is directly responsible for collecting rent.
  • Rent calculation and collection methods should be consistent with the standards set by the CPWD.
  • For specific, day-to-day procedures on rent recovery, the managing department’s own rulebook is the final authority.