Rule 221 of The General Financial Rules 2017 Disposal of Unsaleable Goods
Original Rule Text
Visual Summary
Unsaleable surplus/obsolete items.
Sell at scrap value with approval.
Eco-friendly destruction if unsaleable.
Executive Summary
Rule 221 of the General Financial Rules, 2017 outlines the procedure for disposing of surplus, obsolete, or unserviceable government items that cannot be sold through regular advertised tenders or auctions. The primary method involves disposing of such items at their scrap value, requiring approval from the competent authority in consultation with the Finance Division. If an item cannot even be sold for scrap, the rule permits adopting other disposal methods, including environmentally friendly destruction.
In-Depth Analysis of the Rule
Rule 221 addresses a practical challenge in government inventory management: what to do with items that have reached the end of their useful life or are no longer needed, and for which conventional disposal methods (like tenders or auctions) have failed. It provides a clear, albeit last-resort, framework for handling such assets, emphasizing proper authorization and environmental considerations.
Breakdown of the Rule:
- Scope: Applies to surplus, obsolete, or unserviceable items that a Ministry or Department has failed to sell through advertised tender or auction.
- Primary Disposal Method: Such items may be disposed of at their scrap value.
- Approval for Scrap Value Disposal: This requires the approval of the competent authority, in consultation with the Finance Division. This ensures financial oversight even for minimal recovery.
- Last Resort Disposal: If an item cannot be sold even at its scrap value, the Ministry or Department may adopt any other mode of disposal.
- Eco-friendly Destruction: A key consideration for alternative disposal methods is that they should be conducted in an eco-friendly manner, reflecting modern environmental responsibility.
Practical Example:
Imagine a government department has several old, broken-down computers. They tried to sell them via an advertised tender, but received no bids. They then attempted an auction, which also failed. Under Rule 221, the department can now seek approval from the competent authority, in consultation with the Finance Division, to sell these computers for their scrap value (e.g., for their metal components). If even this fails, the rule allows them to arrange for the computers to be dismantled and recycled by an authorized e-waste management facility, ensuring an eco-friendly disposal.
Related Provisions
Understanding Rule 221 is enhanced by considering other rules related to inventory management and disposal:
- Rule 217 of The General Financial Rules 2017 Disposal of Goods: Provides the general framework for declaring items surplus, obsolete, or unserviceable and preparing them for disposal.
- Rule 219 of The General Financial Rules 2017 Disposal through Advertised Tender: Details the procedure for disposing of goods via advertised tenders, which Rule 221 addresses when such attempts fail.
- Rule 220 of The General Financial Rules 2017 Disposal through Auction: Outlines the process for disposing of goods through public auction, another method that must be attempted before resorting to Rule 221.
Learning Aids
Mnemonics:
- S.O.U.L. (Scrap, Obsolete, Unserviceable, Last-resort): Helps remember the types of items and the nature of disposal.
Process Flowchart:
Multiple Choice Questions
1. According to Rule 221 of the General Financial Rules, 2017, what is the primary method for disposing of an item that could not be sold through advertised tender or auction?
- A) Donate it to a charitable organization.
- B) Sell it at its scrap value.
- C) Store it indefinitely.
- D) Re-tender it immediately.
Show Answer
Correct Answer: B) Sell it at its scrap value.
2. Who must approve the disposal of an item at its scrap value, as per Rule 221 of the General Financial Rules, 2017?
- A) The Head of the Department only.
- B) The Accounts Officer.
- C) The competent authority in consultation with the Finance Division.
- D) The Minister in charge.
Show Answer
Correct Answer: C) The competent authority in consultation with the Finance Division.
3. If an item cannot be sold even at its scrap value, what alternative disposal method is suggested by Rule 221 of the General Financial Rules, 2017?
- A) Return it to the original manufacturer.
- B) Destroy it in an eco-friendly manner.
- C) Offer it for free to government employees.
- D) Keep it in storage for another year.
Show Answer
Correct Answer: B) Destroy it in an eco-friendly manner.
4. Rule 221 of the General Financial Rules, 2017 applies to items that are:
- A) Newly purchased and unused.
- B) Surplus, obsolete, or unserviceable.
- C) High-value assets only.
- D) Required for immediate operational use.
Show Answer
Correct Answer: B) Surplus, obsolete, or unserviceable.
5. Before resorting to disposal under Rule 221 of the General Financial Rules, 2017, what prior attempts at sale must have been made?
- A) Only direct negotiation with buyers.
- B) Advertised tender or auction.
- C) Internal transfer within departments.
- D) Sale to private sector companies only.
Show Answer
Correct Answer: B) Advertised tender or auction.
Frequently Asked Questions
What types of items fall under Rule 221 of the General Financial Rules, 2017 for disposal?
Rule 221 applies to surplus, obsolete, or unserviceable items that a Ministry or Department has been unable to sell through conventional methods like advertised tenders or auctions.
Is environmental impact considered when disposing of items under Rule 221 of the General Financial Rules, 2017?
Yes, if an item cannot be sold even at its scrap value, the rule explicitly states that any other mode of disposal, including destruction, must be adopted in an eco-friendly manner.
Who needs to be consulted for disposing of items at scrap value under Rule 221 of the General Financial Rules, 2017?
The approval of the competent authority is required, and this approval must be obtained in consultation with the Finance Division.
Key Takeaways
- Rule 221 provides a last-resort mechanism for disposing of government items that are surplus, obsolete, or unserviceable and could not be sold via tender or auction.
- Disposal at scrap value requires approval from the competent authority in consultation with the Finance Division.
- If scrap value disposal is not possible, other methods, including eco-friendly destruction, are permitted.
- The rule ensures that even unsaleable assets are managed and disposed of responsibly, with proper authorization and environmental consideration.
Conclusion
Rule 221 of the General Financial Rules, 2017 serves as a crucial guideline for government entities facing the challenge of disposing of assets that have exhausted all conventional sale avenues. By establishing a clear process for scrap value disposal and, as a final measure, eco-friendly destruction, it ensures that public property is managed efficiently and responsibly, even in the most difficult disposal scenarios, while upholding financial propriety and environmental standards.