Rule 217 of The General Financial Rules 2017 Disposal of Goods

Rule 217 of The General Financial Rules 2017 Disposal of Goods

Visual Summary

Executive Summary

Rule 217 of The General Financial Rules, 2017 outlines the procedures for the disposal of surplus, obsolete, or unserviceable goods within government ministries and departments. It mandates that the competent authority must record reasons for declaring items as such and may form a committee for this purpose. The rule also requires the calculation of book, guiding, and reserved prices for disposal, and emphasizes fixing responsibility for items rendered unserviceable due to negligence or fraud. Special provisions are included for the sale of hazardous waste, scrap batteries, and e-waste, requiring adherence to environmental guidelines and proper registration of bidders.

In-Depth Analysis of the Rule

Rule 217 provides a structured approach to managing and disposing of government property that is no longer useful. This ensures accountability, transparency, and compliance with environmental regulations, particularly for sensitive materials.

Breakdown of the Rule:

• Declaration of Surplus/Obsolete/Unserviceable Items: An item is declared as such if it serves no further purpose to the Ministry or Department. The reasons for this declaration must be formally recorded by the authority empowered to purchase the item.
• Committee for Declaration: The competent authority has the discretion to form a committee to facilitate the declaration of items as surplus, obsolete, or unserviceable, ensuring a collective and informed decision-making process.
• Valuation for Disposal: Before disposal, the book value, guiding price, and reserved price of the surplus goods must be determined. If the book value cannot be ascertained, the original purchase price can be used. A formal report for disposal (Form GFR-10) is required.
• Responsibility for Unserviceable Items: If an item becomes unserviceable due to negligence, fraud, or mischief by a government servant, the rule mandates that responsibility for this must be fixed, implying potential disciplinary action or recovery of loss.
• Disposal of Hazardous Waste: Specific guidelines from the Ministry of Environment & Forest must be followed for the sale of hazardous waste, scrap batteries, and e-waste. Bidders for such items must possess valid registration as a recycler/preprocessor agency at the time of e-Auction and delivery.

Practical Example:

Imagine the Ministry of Health has a batch of expired medicines. According to Rule 217, a competent authority would declare these medicines as unserviceable, recording the reasons. A committee might be formed to oversee this. The book value (or original purchase price) would be determined, and a report in Form GFR-10 prepared. The disposal would then proceed strictly following the Ministry of Environment & Forest guidelines for hazardous waste, ensuring that only registered recyclers/preprocessors bid for and handle these materials to prevent environmental harm and misuse.

Related Provisions

Understanding Rule 217 is enhanced by considering other relevant rules:

• Rule 218 of The General Financial Rules, 2017 (Modes of Disposal): This rule details the various methods for disposing of surplus goods, such as advertised tender or public auction, directly following the declaration process outlined in Rule 217.
• Rule 213 of The General Financial Rules, 2017 (Physical Verification of Assets and Consumables): This rule mandates regular physical verification of fixed assets and consumables, which is the precursor to identifying items that may be declared surplus or unserviceable under Rule 217.
• Rule 33 of The General Financial Rules, 2017 (Report of Losses): This rule covers the reporting of losses, including those due to negligence or fraud, which directly ties into Rule 217(iv) regarding fixing responsibility for unserviceable items.

Learning Aids

Mnemonics:

• D.V.R.H.R. (Declare, Value, Report, Hazardous, Responsibility):
  Declare items as surplus.
  Value them (book, guiding, reserved price).
  Report on Form GFR-10.
  Handle Hazardous waste carefully.
  Responsibility for negligence.

Process Flowchart:

Multiple Choice Questions

Frequently Asked Questions

Key Takeaways

• Structured Disposal Process: Rule 217 mandates a formal process for declaring items as surplus, obsolete, or unserviceable, requiring recorded reasons and potentially a committee.
• Mandatory Valuation and Reporting: It requires the calculation of book, guiding, and reserved prices, and the preparation of a disposal report in Form GFR-10.
• Accountability for Damage: The rule emphasizes fixing responsibility for items that become unserviceable due to negligence, fraud, or mischief by government servants.
• Environmental Compliance for Hazardous Waste: Special provisions ensure that hazardous waste, e-waste, and scrap batteries are disposed of according to Ministry of Environment & Forest guidelines, using registered agencies.

Conclusion

Rule 217 of The General Financial Rules, 2017 is crucial for maintaining financial propriety and environmental responsibility in government operations. By establishing clear procedures for the disposal of goods, it prevents waste, ensures accountability, and promotes sustainable practices, especially concerning hazardous materials. Adherence to this rule is vital for efficient and ethical public asset management.