Rule 152 of The General Financial Rules 2017 Enlistment of Indian Agents
Original Rule Text
Visual Summary
Allow Ministries to enlist Indian agents for foreign principals.
Ministries/Departments must require such enlistment.
Indian agents can quote directly for foreign principals.
Executive Summary
Rule 152 of The General Financial Rules, 2017, permits Ministries and Departments to enlist Indian agents. This provision allows these agents to directly represent and quote on behalf of their foreign principals, provided the respective Ministry or Department deems such enlistment necessary. This facilitates international business engagements and procurement processes within the government framework.
In-Depth Analysis of the Rule
Rule 152 addresses the mechanism for engaging Indian agents to act on behalf of foreign principals in government procurement and other related activities. This rule is crucial for streamlining international transactions and ensuring that foreign entities can participate in the Indian market through authorized local representation.
Breakdown of the Rule:
- Enlistment of Indian Agents: Ministries and Departments have the discretion to enlist Indian agents. This implies a formal process of registration or approval.
- Requirement by Ministries/Departments: The power to enlist is conditional on the Ministry or Department requiring such agents. This ensures that the enlistment is driven by genuine operational needs.
- Representation of Foreign Principals: The primary function of these enlisted Indian agents is to quote directly on behalf of their foreign principals. This simplifies the bidding process for foreign companies and ensures local accountability.
Practical Example:
Imagine the Ministry of Defence needs to procure specialized equipment from a foreign manufacturer. Under Rule 152, the Ministry can enlist an Indian agent who is authorized to represent this foreign principal. This agent would then handle all communication, bidding, and contractual obligations on behalf of the foreign company, ensuring compliance with Indian regulations and facilitating smoother transactions. This avoids the need for the foreign principal to establish a direct presence for every tender, making the process more efficient.
Related Provisions
Rule 152 is part of a broader framework governing procurement and financial management. Other relevant rules include:
- Rule 144 of The General Financial Rules 2017 Fundamental Principles of Public Buying: Outlines the core principles for all public procurements, emphasizing efficiency, economy, and transparency.
- Rule 149 of The General Financial Rules 2017 Government e-Marketplace GeM: Mandates the use of the GeM portal for common use goods and services, which may involve agents.
- Rule 150 of The General Financial Rules 2017 Registration of Suppliers: Details the process for registering suppliers, which could include Indian agents for foreign principals.
Learning Aids
Mnemonics:
- Indian Agents For Principals: Inlistment of Agents For Procurement.
Process Flowchart:
Multiple Choice Questions
1. What is the primary purpose of Rule 152 of the General Financial Rules, 2017?
- A) To regulate inter-departmental consultations.
- B) To allow Ministries/Departments to enlist Indian agents for foreign principals.
- C) To define the financial year for government accounts.
- D) To establish procedures for public works.
Show Answer
Correct Answer: B) To allow Ministries/Departments to enlist Indian agents for foreign principals.
2. Under Rule 152 of the General Financial Rules, 2017, who can enlist Indian agents?
- A) Only the Ministry of Finance.
- B) Any Ministry/Department if they so require.
- C) Only foreign principals directly.
- D) The Comptroller and Auditor General of India.
Show Answer
Correct Answer: B) Any Ministry/Department if they so require.
3. What is the role of Indian agents enlisted under Rule 152 of the General Financial Rules, 2017?
- A) To provide financial advice to Ministries.
- B) To quote directly on behalf of their foreign principals.
- C) To manage government inventory.
- D) To audit government accounts.
Show Answer
Correct Answer: B) To quote directly on behalf of their foreign principals.
4. Rule 152 of the General Financial Rules, 2017, falls under which broader category of government financial management?
- A) Budget Formulation and Implementation.
- B) Government Accounts.
- C) Procurement of Goods and Services.
- D) Grants-in-Aid and Loans.
Show Answer
Correct Answer: C) Procurement of Goods and Services.
5. The discretion to enlist Indian agents under Rule 152 of the General Financial Rules, 2017, is exercised based on:
- A) The agent’s nationality.
- B) The financial strength of the foreign principal.
- C) The requirement of the Ministry/Department.
- D) The recommendation of the Reserve Bank of India.
Show Answer
Correct Answer: C) The requirement of the Ministry/Department.
Frequently Asked Questions
Q: Can any Indian agent be enlisted under Rule 152 of the General Financial Rules, 2017?
A: No, only those Indian agents that Ministries or Departments “so require” may be enlisted. The enlistment is at the discretion and need of the government entity.
Q: What is the primary function of an Indian agent enlisted under Rule 152 of the General Financial Rules, 2017?
A: The primary function is to quote directly on behalf of their foreign principals, facilitating their participation in government procurement processes.
Q: What is the benefit of enlisting Indian agents for foreign principals under Rule 152 of the General Financial Rules, 2017?
A: It simplifies the process for foreign entities to participate in government tenders by allowing them to operate through local, authorized representatives, ensuring compliance and facilitating communication.
Key Takeaways
- Rule 152 grants Ministries/Departments the discretion to enlist Indian agents.
- These agents act on behalf of foreign principals, primarily for quoting in procurement.
- Enlistment is based on the specific requirement of the Ministry/Department.
- This rule streamlines international participation in government procurement.
Conclusion
Rule 152 of The General Financial Rules, 2017, is a pragmatic provision that acknowledges the global nature of trade and procurement. By allowing the enlistment of Indian agents for foreign principals, it creates a structured channel for international businesses to engage with the Indian government, fostering transparency and efficiency in cross-border transactions while ensuring local accountability.