Rule 218 of The General Financial Rules 2017 Modes of Disposal
Original Rule Text
Visual Summary
Items over Rs. 4 Lakh via advertised tender or public auction.
Items under Rs. 4 Lakh by competent authority decision.
Hazardous, unfit, or security-sensitive goods require immediate destruction/disposal.
Executive Summary
Rule 218 of The General Financial Rules, 2017, outlines the procedures for disposing of surplus, obsolete, or unserviceable goods held by government ministries and departments. It categorizes disposal methods based on the residual value of the goods, mandating advertised tenders or public auctions for items valued above Rupees Four Lakh, while allowing competent authorities to determine methods for lower-value items. The rule also provides specific instructions for hazardous, unfit, or security-sensitive goods, emphasizing immediate and appropriate destruction or disposal to prevent health hazards, environmental pollution, or misuse.
In-Depth Analysis of the Rule
Rule 218 is a critical component of financial management, ensuring that government assets are managed efficiently even at the end of their lifecycle. Proper disposal prevents unnecessary accumulation, reduces storage costs, and mitigates risks associated with outdated or sensitive materials.
Breakdown of the Rule:
- Disposal of High-Value Goods: For items with an assessed residual value exceeding Rupees Four Lakh, disposal must be conducted through either advertised tender or public auction. This ensures transparency and competitive pricing.
- Disposal of Low-Value Goods: For items with a residual value below Rupees Four Lakh, the competent authority has the discretion to determine the appropriate mode of disposal. The key considerations are preventing accumulation, avoiding blockage of space, and preventing deterioration in value. Ministries/Departments are encouraged to maintain lists of such goods.
- Disposal of Hazardous/Unfit Goods: Goods like expired medicines, food grains, or ammunition that are hazardous or unfit for consumption must be disposed of or destroyed immediately. The method chosen must prevent health hazards, environmental pollution, and potential misuse.
- Disposal of Security-Sensitive Goods: Items involving security concerns, such as currency, negotiable instruments, or receipt books, require disposal or destruction in a manner that complies with official secrets rules and financial prudence.
Practical Example:
Imagine a government department has a fleet of old vehicles. If a vehicle’s residual value is estimated at Rs. 5 Lakh, it must be sold via advertised tender or public auction as per Rule 218(i). If another vehicle is only worth Rs. 50,000, the department’s competent authority can decide on a suitable disposal method, perhaps a local auction or direct sale to a scrap dealer, ensuring proper documentation and value realization. Simultaneously, if the department has expired chemicals, they must be destroyed immediately following environmental safety protocols as per Rule 218(iii).
Related Provisions
Understanding Rule 218 is enhanced by considering these related provisions:
- Rule 217 of The General Financial Rules 2017 Disposal of Goods: This rule precedes Rule 218 and sets the stage for declaring goods as surplus, obsolete, or unserviceable, which is a prerequisite for disposal.
- Rule 219 of The General Financial Rules 2017 Disposal through Advertised Tender: This rule details the specific procedure for disposal via advertised tender, which is one of the methods prescribed in Rule 218 for high-value goods.
- Rule 220 of The General Financial Rules 2017 Disposal through Auction: This rule provides the detailed process for disposal via public auction, another method mentioned in Rule 218 for high-value items.
Learning Aids
Mnemonics:
- “VALUE-SAFE-HAZARD”: Value (over/under 4 Lakh determines method), Safe (security-sensitive items), Hazard (hazardous/unfit items).
Process Flowchart:
Multiple Choice Questions (MCQs)
1. What is the primary method for disposing of surplus goods with an assessed residual value above Rupees Four Lakh, according to Rule 218 of The General Financial Rules, 2017?
- A) Direct sale to government employees
- B) Advertised tender or public auction
- C) Donation to charitable organizations
- D) Disposal by the Head of Office
Show Answer
Correct Answer: B) Advertised tender or public auction
2. For surplus goods with an assessed residual value less than Rupees Four Lakh, as per Rule 218 of The General Financial Rules, 2017, who determines the mode of disposal?
- A) The Ministry of Finance
- B) The Comptroller and Auditor General
- C) The competent authority
- D) The Public Works Organisation
Show Answer
Correct Answer: C) The competent authority
3. Rule 218(iii) of The General Financial Rules, 2017, mandates immediate disposal or destruction for which type of goods?
- A) Office furniture and fixtures
- B) Expired medicines, food grain, or ammunition
- C) Used vehicles and machinery
- D) Obsolete computer equipment
Show Answer
Correct Answer: B) Expired medicines, food grain, or ammunition
4. When disposing of goods that involve security concerns (e.g., currency, receipt books) under Rule 218(iv) of The General Financial Rules, 2017, what is a key consideration?
- A) Maximizing financial return
- B) Compliance with official secrets rules and financial prudence
- C) Speed of disposal
- D) Minimizing environmental impact only
Show Answer
Correct Answer: B) Compliance with official secrets rules and financial prudence
5. Which of the following is NOT a stated objective for determining the mode of disposal for low-value goods under Rule 218(ii) of The General Financial Rules, 2017?
- A) Avoiding accumulation of goods
- B) Preventing blockage of space
- C) Deterioration in value of goods
- D) Ensuring competitive bidding for all items
Show Answer
Correct Answer: D) Ensuring competitive bidding for all items
Frequently Asked Questions
Q1: What is the threshold for mandatory advertised tender or public auction under Rule 218 of The General Financial Rules, 2017?
A1: According to Rule 218(i), goods with an assessed residual value above Rupees Four Lakh must be disposed of through advertised tender or public auction.
Q2: How should hazardous goods like expired medicines be handled under Rule 218 of The General Financial Rules, 2017?
A2: Rule 218(iii) requires such goods to be disposed of or destroyed immediately using suitable modes to prevent health hazards, environmental pollution, and misuse.
Q3: Does Rule 218 of The General Financial Rules, 2017, allow for discretion in disposal methods for all goods?
A3: No, discretion is primarily for goods with a residual value less than Rupees Four Lakh. High-value, hazardous, or security-sensitive goods have specific mandatory disposal requirements.
Key Takeaways
- Rule 218 categorizes disposal methods based on the residual value of goods.
- Items above Rs. 4 Lakh require formal advertised tender or public auction.
- Items below Rs. 4 Lakh allow for discretion by the competent authority.
- Special provisions exist for hazardous, unfit, and security-sensitive goods, mandating immediate and appropriate destruction/disposal.
- The rule aims to prevent accumulation, reduce costs, and ensure responsible handling of government property.
Conclusion
Rule 218 of The General Financial Rules, 2017, provides a comprehensive framework for the systematic and responsible disposal of government assets. By differentiating between high-value, low-value, hazardous, and security-sensitive items, it ensures that appropriate, transparent, and safe methods are employed, thereby upholding financial propriety and environmental responsibility in public administration.