Dad Manual 2022

र० ले० िव०
कायिनदश पिु तका

DAD Manual
र ा लेखा िवभाग:
एक ानाजन संगठन
DEFENCE ACCOUNTS DEPARTMENT:
A LEARNING ORGANISATION
ल कथन:
हम लेखांकन एवं िव ीय सेवाओं तथा लेखा परी ा स ं धी

काय" म# उ%ृ'ता एवं (ावसाियकता )ा* करने का )यास
करते ह+ I
Mission Statement
We strive to achieve excellence and professionalism in accounting
and financial services and in performing audit functions.
गुणव ा नीित
र ा लेखा िवभाग .ाहक की संतुि' के िलये लेखा, भुगतान

तथा िव ीय सेवाऐं द ता, सटीकता एवं त3रता से दे ने के
िलये समिपत ह+ I यह जनता की जवाबदे ही हे तु द लेखा
परी ा सेवाओं के िलये भी )ितब6 है I
Quality Policy
The Defence Accounts Department is committed to render

efficient, correct and prompt accounting, payment and financial
services leading to customer satisfaction. It is also committed to
render efficient audit services to ensure public accountability.
PREFACE
The Defence Accounts Department (DAD), being one of the oldest

Departments of the nation, has gathered unparalleled expertise and domain
knowledge in extending its services to the Army, Navy, Air Force, Border Roads,
DRDO and other institutions in the fields of audit, accounting, financial advice
and internal auditor. The Department had strived hard from its inception to develop
itself as a supportive organ and provide strength to all the stakeholders through its
services. The Department has ensured transparency, accountability and innovation
in the financial transactions of the Ministry of Defence and the Armed Forces,
thereby bringing ease of doing business without compromising financial prudence
and the conceived notions of the Government of India for deriving the 3E’s,
Economy, Efficiency and Effectiveness in all areas.
Over the spread of almost three centuries, the Defence Accounts Department
had enriched itself through various functioning roles and innovations. The changing
sphere of requirement of every Government organization to ensure delivery of
activities with utmost user satisfaction linked with Information technology tools for
real-time monitoring and reporting systems made the Defence Accounts Department
to take several steps and move ahead to a new era of functional expertise. The
Department has imbibed the leveraging technological advancements and adopted
various IT Systems like System for Pension Administration (Raksha) (SPARSH - for
pension disbursement to Defence and Civilian Pensioners and their families,
Comprehensive Pay System – for meeting out all pay and allowances matters of the
Defence Forces and Civilian employees, PRABAL (Public Financial Management
System for Raksha Budget Aahran Evam Lekhankan), eoffice – for faster file
clearance and disposal of cases so as to meet the emerging challenges and the
growing trends in technology and functional requirements.
The change of methodology of functional requirements brought ahead a
challenge to streamline the functions and roles of 1000 odd offices of the Defence
Accounts Department dealing with myriad activities and roles throughout the
length and breadth of the country. These offices, till date, had been following the
footprints created through eighteen different manuals laying down roles and duties
of each office vis-à-vis the manner of discharging their functional activities.
In order to streamline the activities in the Department, it was felt few
months before that the Defence Accounts Department should look forward and
bring overall functional roles in one stream. The concept was passed on to the field
offices and after deliberations it was decided to compile and bring a new manual
following the motto ‘One DAD One Manual’ comprising all activities at one place.
This manual shall be a common guiding place for the workforce of the Department
with commonality of actions across all the desks in various offices of the Defence
Accounts Department.
It is an old saying that ‘One who thinks can do’. The team of officers from
different offices took a common stride and with the lightening speed have done
wonders beyond comprehension. The team had been able to bring out a single node of
compiled functional directions which will be utilised by the Defence Accounts
Department ahead.
I take pride in congratulating my Officers and Staff for entering into a new
era with a new Manual for their guidance.
I am quite sure that this DAD Manualwill definitely take the Defence
Accounts Department to provide its services to its client organizations in furthering
their organizational interests by adopting the policies of the Government of India
and ensuring financial discipline with due value for money in shortest period of
time.
I wish best of times ahead for each and every Officer and Staff of my
Department.
(Rajnish Kumar)
Kumar)
CGDA
Defence Accounts Department Manual 2022
Contents
Chapter Name Para Page
I INTRODUCTION: DAD: AN 1.1 – 1.10 1 – 12
ORGANISATIONAL INSIGHT
II ESTABLISHMENT WING 2.1 – 2.86 13 – 257
III PERSONNEL WING 3.1 – 3.33 258 – 319
IV ACCOUNTS WING 4.1 – 4.39 320 – 383
V PERSONNEL PAYMENT WING 5.1 – 5.75 384 – 581
VI SELLER PAYMENT WING 6.1 – 6.8 582 – 600
VII WORKS WING 7.1 – 7.42 601 – 693
VIII IFA WING 8.1 – 8.11 694 – 751
IX AUDIT WING 9.1 – 9.62 752 – 902
X INFORMATION TECHNOLOGY 10.1 – 10.11 903 – 931

(IT) WING
XI SYSTEMS WING 11.1 – 11.22 932 – 965
[I]
I INTRODUCTION: DAD: AN 1.1 – 1.10 1 – 12
ORGANISATIONAL INSIGHT
1 Introduction 1.1 – 1.4 1
2 Organizational Setup 1.5 2
3 DAD Headquarters 1.5.1 2
4 Field Organization 1.5.2 2
5 IFA Setup 1.5.3 2
6 Training Setup 1.5.4 2
7 Area Accounts Offices 1.5.5 3
8 Pay Accounts Offices (Other Ranks) 1.5.6 3
9 Local Audit Offices, Assistant Local Audit 1.5.7 3
Offices and Regional Audit Offices (MES)
10 Accounts Offices (Border Roads 1.5.8 3
Task Forces)
11 Accounts Officers/Assistant 1.5.9 4
Accounts Officers (Garrison Engineer)
(AOs /AAOs (GE))
12 Accounts Offices (DAD), Hindustan 1.5.10 4
Aeronautics Limited
13 Diagrammatic structure of offices in DAD 1.6 5-6
14 Objectives of the Defence 1.7 7-8
Accounts Department
15 Structure of Offices 1.8 9 - 10
16 DAD Headquarters 1.8.1 9
17 Field Organization 1.8.2 10
18 Classification of posts 1.9 11
19 Designation of various levels of officers 1.10 12
and staff in the Defence Accounts
Department
[II]
II ESTABLISHMENT WING 2.1 – 2.86 13 – 257
1 Objectives 2.1 13
2 Duties 2.2 13 – 15
3 Pay Personnel 2.3 16 - 17
4 Pay Levels 2.3.1 16
5 Pay Levels in DAD 2.3.2 16 -17
6 Pay fixation 2.4 18 – 19
7 Pay Fixation on Initial Appointment 2.4.1 18
8 General provisions of FR 22 2.4.2 19
9 Annual Increments 2.5 20
10 Allowances 2.6 21
11 Hours of attendance 2.7 22
12 Dak Diary System 2.8 23 -
13 e-Office Platform 2.8.1 23
14 Handling of Inward Dak 2.8.2 24
15 Distribution of Top Secret/ Secret/ 2.8.3 25
Confidential/ DO and important dak
16 Valuable Documents 2.8.4 26
17 Outward Dak 2.8.5 27 - 28
18 Postage 2.8.6 29 – 30
19 Stationery and forms 2.8.7 31 – 32
20 Local Purchase of Stationery 2.8.7.1 31
21 Stationery Account 2.8.7.2 31
22 Custody and issue of Stationery 2.8.7.3 31 – 32
23 Supply of Forms 2.8.8 33
24 Custody and Issue of forms 2.8.9 34
25 Issue of identity cards 2.9 35 - 36
26 General Instructions 2.9.1 35
27 Withdrawal of Identity Passes 2.9.2 35 - 36
28 Destruction of withdrawn Identity Passes 2.9.3 36
29 Penalty for Loss/Mutilation/Late 2.9.4 36
Renewal of Identity Cards
30 Issue of Identity Cards to DAD Pensioners 2.9.5 36
31 Service Book and Leave accounts of 2.10 37 - 38
Officers & Staff
32 Alteration in date of birth entered in 2.11 39
the Service Book
[III]
33 Leave 2.12 40 - 58
34 General conditions of leave 2.12.1 40 - 41
35 Leave in respect of IFAs (HAG/SAG) 2.12.2 41 - 42
36 Sanction of leave to other Officers and Staff 2.12.3 42
37 Types of Leave 2.12.4 43
38 Earned Leave 2.12.4.1 44
39 Half Pay Leave 2.12.4.2 45
40 Commuted Leave 2.12.4.3 46
41 Leave Not Due 2.12.4.4 47
42 Extraordinary Leave (EOL) 2.12.4.5 48 – 49
43 Maternity Leave 2.12.4.6 50
44 Paternity Leave 2.12.4.7 51
45 Leave to female Government employee 2.12.4.8 52
on adoption of child
46 Child Care Leave 2.12.4.9 53 – 54
47 Casual Leave 2.12.4.10 55
48 Special casual leave 2.12.4.11 56
49 Compensatory leave 2.12.4.12 57 - 58
50 Distribution of Work in Sections 2.13 59
51 Opening/ Closing of Offices 2.14 60
52 Administrative and Proforma 2.15 61
Controllers of PIFAs/IFAs
53 Auditing Controllers 2.16 62
54 Handing/Taking Over Reports 2.17 63 - 66
55 Regional Office Councils and 2.18 67
related activities
56 Scope of JCM 2.19 68
57 Structure of councils/associations in DAD 2.20 69
58 Headquarters Council (III Level) 2.20.1 69
59 Regional Official Council (IV Level) 2.20.2 69
60 Membership scheme 2.21 70
61 Meeting of the Associations 2.22 71 -72
62 Resident Welfare Association in 2.23 73 – 76
DAD Residential Complexes
63 Right to Information cell 2.24 77 - 78
64 Allotment, Occupation/Vacation of 2.25 79 – 80
DAD Residential Accommodation
[IV]
65 Care, Custody, Repair & Maintenance 2.26 81 - 82
of DAD Buildings
66 General 2.26.1 81
67 Provision of funds 2.26.2 81
68 Types of Services 2.26.3 82
69 Repairs / Maintenance Services 2.26.3.1 82
70 Periodical Services 2.26.3.2 82
71 Grant-in-Aid for Welfare 2.27 83
72 Application for admission to the Postal 2.28 84
Life Insurance
73 Leave salary and pension contributions in 2.29 85 - 89
respect of persons lent to and from the DAD
74 Drawal and disbursement of 2.30 90 - 91
Personal Computer Advance
75 General 2.30.1 90
76 Conditions for grant of Personal 2.30.2 90
Computer Advance
77 Allotment of funds 2.30.3 90 -91
78 Mode of recovery and accounting 2.31 92 – 93
of advances already disbursed
79 Motor Cars 2.31.1 92
80 Motor Cycles 2.31.2 93
81 Mortgage Bonds 2.32 94
82 House building advances 2.33 95
83 Withdrawals from General Provident Fund 2.34 96 - 97
84 Withdrawals 2.34.1 96
85 Advances 2.34.2 96 – 97
86 Conversion of an advance into 2.34.3 97
a withdrawal
87 Permanent Advance or Imprest 2.35 98
88 Office Contingent Expenditure 2.36 99 -
89 General 2.36.1 99
90 Maintenance of records of 2.36.2 99
contingent expenditure transactions
91 Nature of the contingent expenditure 2.36.3 100
charges
92 Custody, Disbursement and Accounting 2.37 101
of Cash
[V]
93 Cash Book 2.38 102
94 Register of Cash received 2.39 103
95 Non-Statutory Departmental Canteens 2.40 104
96 Unit Run Canteen (URC) 2.41 105
97 Defence Accounts Sports Control 2.42 106
Board (DASCB)
98 Defence Accounts Recreation Club (DARC) 2.43 107 - 109
99 General 2.43.1 107
100 Broad functions of the club 2.43.2 107
101 Constitution of the Executive Committee 2.43.3 107
102 Functions of the Executive Members 2.43.4 108
103 Term of the Executive Committee 2.43.5 109
104 Preservation of Records 2.44 110 - 111
105 Disposal of Time Barred Records 2.45 112 – 173
106 Inventory 2.46 174
maintenance/ verification/disposal
107 Office Equipments 2.47 175
108 Fire Prevention Provisions/ Orders 2.48 176
109 Security 2.49 177 – 179
110 Inspection 2.50 180
111 Procurement 2.51 181
112 Conservancy/ Outsourcing of Services 2.52 182
113 Project & Works 2.53 183
114 Construction of Office/ 2.53.1 183
Residential/ Transit accommodations for
use of Defence Accounts Department
115 Documents required/ Checklist for 2.53.1.2 184
processing the proposals related to
construction of accommodations
116 Proposals related to additions/ alterations/ 2.53.2 185
special repairs, etc. related to
accommodations pertaining to the
Department or for use of Department
117 Documents required/Checklist for 2.53.2.2 186
additions/alterations/special repair, etc.
118 Monitoring of Capital and Maintenance 2.53.3 187
Budget in respect of four heads
[VI]

demand/surrender of funds
120 Processing of proposals related to hiring 2.53.4 189

of accommodation
hiring/rehiring of accommodations
122 Grant of Re-appropriation sanction for 2.53.5 191
use of accommodation other than the
purpose for which accommodation
has been constructed
123 Documents required/Checklist 2.53.5.2 192
for processing the proposals related to
re-appropriation of building
124 Monitoring of proposals related to 2.53.6 193
transfer of land from Services to the
Department and also purchase of land
from State Government
125 Documents required/Checklist 2.53.6.2 194
for processing the proposals related
to Approval-in-Principle of IHQ of MOD
for land transfer
126 All estate related matters 2.53.7 195
including publication and amendment
of Defence Accounts Departmental Pool
Residential Accommodation Rules
127 DAD BUDGET 2.54 196
128 Allotment of funds to field offices in 2.55 197

Budget Estimates, Revised Estimates,
Modified Appropriation/ Final
Requirement, etc.
129 Preparation of Monthly Expenditure Report 2.56 198

of all PCDA/CDA where funds is provided
[VII]
by DAD HQrs.
130 Preparation of Appropriation Accounts and 2.57 199

its submission to MOD (Fin) via
Accounts Wing of DAD HQrs.
131 Preparation of Receipts Budgets in respect 2.58 200
of DAD heads
132 Maintenance of HBA fund, allotment 2.59 201
to Field offices and submission of demand
to the Ministry in BE and RE
133 Sanction of Permanent Advance to 2.60 202
the PCsDA/CsDA and all IFA offices and
their review
134 Procurement of New Staff Car and Utility 2.61 203
vehicle received from field offices and their
submission to the Ministry for approval
135 Legal Matters 2.62 204 - 205
136 Duties of Nodal Officer and Liaison Officer 2.63 206 – 207
137 Signing of documents to be filed 2.64 208
138 Diagrams on handling of Legal cases 2.65 208 - 210
139 Action in contempt cases 2.66 211
140 Filing of SLP/Appeal 2.67 212
141 Payment of Bills in respect of Govt. Counsel 2.68 213
142 Legal Information Management and 2.69 214
Briefing System (LIMBS)
143 Service of summons 2.70 215
144 Representation in Military Court of Enquiry 2.71 216
145 General Guidelines on Correspondence 2.72 217 - 218
146 Authentication of orders and 2.73 219
other instruments made and executed
in the name of the President of India
147 Office Orders 2.74 220
148 Secret and Confidential correspondence 2.75 221
149 Notification of Holidays 2.76 222
150 Observance of Government Drives 2.77 223
on important matters
151 Parliament Matters 2.78 224
152 Rajbhasha Cell 2.79 225
[VIII]
153 Official Language: Vital aspects 2.80 226
154 Library 2.81 227
155 Delegation of Powers 2.82 228
156 General Duties and responsibilities 2.83 229 - 236
of Principal Controllers/ Controllers
157 General Duties of Group Officers, ACDA- 2.84 237 -
in-Charge, SAO/ AO/ Assistant Director
(Official Languages)/ and AAO of Sections
158 General Duties of Group Officers 2.84.1 237 – 241
159 General Duties of ACDA-in-Charge, 2.84.2 241 – 246
SAO/ AO/ Assistant Director
(Official Languages)
160 General Duties of AAO of Sections 2.84.3 247 - 252
161 Powers delegated to the AAOs 2.85 251 - 256
162 Level jumping in processing of bills 2.86 257
– powers thereof
[IX]
III PERSONNEL WING 3.1 – 3.33 258 – 319
1 Objective 3.1 258

2 Duties 3.2 258 - 259
3 Recruitment Rules 3.3 260
4 Recruitment 3.4 261
5 Appointment 3.5 262
6 Appointment to Indian Defence 3.5.1 262
Accounts Service
7 Appointment to other Group ‘A’, ‘B’ & 3.5.2 262 - 263
‘C’ Posts
8 Compassionate Appointments 3.5.3 263
9 Appointment through Inter Departmental 3.5.4 263
transfer
10 Reservation in appointments 3.5.5 263
11 Probation and Confirmation 3.6 264 - 265
12 General 3.6.1 264
13 Period of Probation 3.6.2 264 - 265
14 Confirmation 3.6.3 265
15 Seniority Lists 3.7 266
16 Promotions 3.8 267 -
17 General 3.8.1 267
18 Non-Functional Upgradation 3.8.2 268
19 Processing of DPC Proposals 3.8.3 268
20 Reservation in promotions 3.8.4 268
21 Refusal of promotion to higher grade 3.9 269
22 Subordinate Accounts Services 3.10 270
(SAS) Examination & other
Departmental Examinations
23 Publishing of service events / casualties 3.11 271
24 Transfer and Postings 3.12 272
25 Deputation 3.13 273
26 Retirement/Superannuation 3.14 274
27 Conduct 3.15 275 - 278
28 Discipline 3.16 279 – 280
29 Procedure to be followed in cases of 3.17 281
Officers and Staff serving in offices of
PIFA/IFA/NADFM, Pune/ CDA (RTCs)/
[X]
DPTI, Prayagraj
30 Procedure to be followed in case of 3.18 282
transfer of the Charged Official
31 Initiation of disciplinary proceedings 3.19 283
against retired Government servants or
continuance thereof after retirement
32 Penalties 3.20 284 – 286
33 Suspension 3.21 287 - 290
34 Subsistence Allowance 3.22 291
35 Appeal, Revision and Review 3.23 292
36 Diagrammatic representations on minor and Referred in 293 - 294
major proceedings 3.16.4
37 Appointing & Disciplinary Authorities Referred in 295 - 302
in DAD 3.16.5
38 Vigilance matters 3.24 303
39 Complaints 3.25 304
40 CBI and Criminal cases 3.26 305
41 Sanction for Prosecution 3.27 306
42 Prevention of Sexual Harassment 3.28 307 - 309
of Working Women
43 General 3.28.1 307
44 She-BOX 3.28.2 307 – 308
45 Complaints Committee 3.28.3 308 - 309
regarding Prevention of Sexual
Harassment of Working Women
46 Report of Complaints Committee 3.28.4 309

regarding Prevention of Sexual
47 Periodic Review under FR 56/ RULE 42 3.29 310
of CCS (Pension) Rules, 2021 (erstwhile
Rule 48 of CCS (Pension) Rules, 1972)
48 Review of mechanism to ensure 3.30 311
probity against Government: Reports
through Probity Portal
49 Grant of ‘No Objection Certificate’ 3.31 312
50 Annual Performance Assessment Report 3.32 313 - 318
51 Grievance 3.33 319
[XI]
52 General 3.33.1 319

53 Appeal on Grievance 3.33.2 319
[XII]
IV ACCOUNTS WING 4.1 – 4.39 320 – 383
1 ACCOUNTS & BUDGET Wing at 4.1 – 4.15 320 - 335

DAD HQrs
2 Objectives 4.1 320
3 Duties 4.2 320 - 322
4 Review of Monthly Revenue, Debt 4.3 323
and Remittance Heads and Service
Heads Compilation
5 Preparation and Rendition of 4.4 324
Financial Statements and Accounts
6 Summary of balances (Statement No. 5) 4.5 325
7 Statement of Receipts Disbursements 4.6 326
and Balances under heads of Account
relating to Debt, Deposits and
Remittances and Contingency Fund of
India (Statement No. 13)
8 Defence Services portion of 4.7 327
Combined Finance and Revenue Accounts.
9 Statements No. 3, 4 & 11 of Union 4.8 328
Govt. Finance Accounts
10 Statement of extra expenditure incurred 4.9 329
on troops called in aid of civil power
on occasions like fire, floods,
earthquake, strike, etc.
11 Expenditure statements when troops are 4.10 330
sent overseas on International Assignments
12 Preparation of Budget Estimates in 4.11 331
respect of Defence/Civil Pension
13 Dealing with issues related to GeM 4.12 332
and PRABAL
14 Constant liaison with 4.13 333
other Ministries/Departments, Banks,
GASAB, etc. for various accounting and
budgeting roles
15 Advances from the Contingency Fund 4.14 334
of India and Charged Expenditure
16 Amendment to Classification Hand Book 4.15 335
[XIII]
and RD&R Heads of Pamphlet
17 ACCOUNTS WING AT PCsDA/ CsDA 4.16 – 4.39 336 - 383
19 Duties 4.17 336 - 337
20 Maintenance of electronic Debt 4.18 338
Head Registers
21 General 4.18.1 338
22 Posting e-DHR 4.18.2 339
23 Recovery of advances 4.18.3 339
24 Calculation of interest 4.18.4 339 - 340
25 Suspense account 4.19 341
26 Mortgage bond register 4.20 342 - 343
27 Procedure regarding adjustment 4.21 344 -
of transactions relating to Defence
Proforma Accounts
28 General 4.21.1 344
29 Adjustment procedure of e-MRO 4.21.2 345
30 Remittance to Defence services from 4.21.3 346
banks and treasuries i.e., payments made
through SBI CMP/SBI FAST PLUS
31 e-Focal Point Branch (FPB): SBI – Cash 4.21.4 347 - 348
Management Product
32 Minus debit scroll 4.21.5 349 - 350
33 Procedure for CMP rejections 4.22 351
34 Defence transactions through e-ticketing 4.23 352
35 Accounting procedure of Defence Travel 4.24 353 – 355
System
36 Rail travel 4.24.1 353 – 355
37 Accounting air travel 4.24.2 355
38 Transactions originating in Defence books 4.25 356 - 357
which are adjustable against other
PAOs/Civil Ministries/AGs including
Ministry of Railways, Department of
Posts and Ministry of External Affairs
and vice-versa
39 Settlement of Inter Departmental 4.25.1 356 - 357
Transactions (IGA) through book
adjustment or without resorting to cash
[XIV]
settlement (Letters of Authorization)
40 Adjustment of Foreign Transactions 4.25.2 358
41 IGA through digital LoA (Goods & Services 4.25.3 359
provided by MoD to other Civil Ministries)
42 IGA through digital LoA(Goods & Services 4.25.4 360
provided by other Civil Ministries to MoD)
43 Drawal of advances on emergency 4.26 361
cash requisitions
44 Exchange accounts between 4.27 362 - 363
Principal Controllers/ Controllers of
Defence Accounts
45 Budget estimates 4.28 364
46 General 4.28.1 364
47 Watching expenditure against allotments 4.28.2 365 - 366
48 Appropriation account 4.29 367
49 Transfer entries 4.30 368 - 369
50 Closing of annual accounts 4.31 370
51 Journal Entries 4.32 371
52 Maintenance of Defence ledger 4.33 372
53 General 4.33.1 372
54 Posting of Defence ledger 4.33.2 372
55 Closing of books 4.34 373
56 Review of balances 4.35 374 - 375
57 Annual statement of expenditure under 4.36 376
head 2049 interest on other obligations
58 Statement of central transactions (SCTs) 4.37 377
of Defence services receipts and charges
59 Levying penal interest on accredited 4.38 378
banks doing government agency
business for delayed remittances, etc.
60 Procedure for levying penal interest 4.39 379 - 383

on accredited banks for doing
government agency business
[XV]
V PERSONNEL PAYMENT WING: 5.1 – 5.75 384 – 581
• Pay & Allowances Group
• Medical Reimbursement Group
• Travelling Allowances Group
1 PAY & PENSION WING AT DAD 5.1 384
HQrs: Objectives & Duties:
2 PERSONNEL PAYMENT WING 5.2 -5.3 385 - 387
AT PCsDA/ CsDA
4 Duties 5.3 385 – 387
5 PAY & ALLOWANCES GROUP 5.4 – 5.9.71 388 - 488
6 Disbursement of Pay & Allowances 5.4 388 - 390
7 Grievances relating to Pay & Allowances 5.5 391
8 Commencement of Pay& Allowances 5.6 392
9 Increments of Pay 5.7 393
10 Modified Assured Career Progression 5.8 394
Scheme (MACP)
11 Exhaustive list of allowances dealt with 5.9 395 - 399
in Personnel Payment Wing
12 Aeronautical Allowance 5.9.1 400
13 Air Worthiness Certificate Allowance 5.9.2 401
14 Bhutan Compensatory Allowance 5.9.3 402
15 Boiler Watch Keeping Allowance 5.9.4 403
16 Brief Case Allowance 5.9.5 404
17 Canteen Allowance & Cooking Allowance 5.9.6 405
18 Cash Handling & Treasury Allowance 5.9.7 406
19 Children Education Assistance 5.9.8 407
20 Classification Allowance 5.9.9 408
21 Compassionate Allowance 5.9.10 409
22 Composite Personal 5.9.11 410
Maintenance Allowance (CPMA)
23 Constant Attendance Allowance 5.9.12 411
24 Conveyance Allowance 5.9.13 412
25 Counter Insurgency Allowance in 5.9.14 413 – 414
Peace, Field and Modified Field Area
26 Cycle Allowance 5.9.15 415
27 Daily Allowance 5.9.16 416 – 417
[XVI]
28 Dearness Allowance & Dearness Relief 5.9.17 418
29 Deputation (Duty) Allowance 5.9.18 419
30 Diving Allowance 5.9.19 420
31 Dip Money 5.9.20 421
32 Diving Attendant Allowance 5.9.21 422 - 423
33 Dress Allowance 5.9.22 424
34 Extra Work Allowance 5.9.23 425
35 Field Area Allowance 5.9.24 426
36 Fixed Medical Allowance 5.9.25 427
37 Flying Allowance 5.9.26 428
38 Free Fall Jump Instructor Allowance 5.9.27 429
39 Funeral Expense 5.9.28 430
40 Good Service/ Good Conduct/ Badge 5.9.29 431 – 432
Allowance
41 Hard Area Allowance 5.9.30 433
42 Hard Lying Money 5.9.31 434 - 437
43 Hazard Pay 5.9.32 438
44 High Altitude Uncongenial Climate 5.9.33 439 – 440
Allowance Cat – I, II & III
45 Highly Active Field Area Allowance 5.9.34 441 - 442
46 House Rent Allowance (HRA) 5.9.35 443 – 445
47 Hydrographic Survey Allowance 5.9.36 446 - 447
48 Island Special Duty Allowance 5.9.37 448 – 449
49 Language Allowance 5.9.38 450 - 451
50 Language Award 5.9.39 452
51 Military Service Pay 5.9.40 453
52 Monetary Allowance attached to 5.9.41 454
Gallantry Awards
53 MARCOS & Chariot Allowance 5.9.42 455
54 Newspaper Allowance 5.9.43 456
55 Night Duty Allowance 5.9.44 457
56 Non-Practicing Allowance 5.9.45 458
57 Overtime Allowance 5.9.46 459
58 Para Allowance 5.9.47 460 - 461
59 Para Reserve Allowance 5.9.48 462
60 Post Graduate Allowance 5.9.49 463
61 Project Allowance 5.9.50 464
[XVII]
62 Qualification Allowance 5.9.51 465
63 Ration Money Allowance 5.9.52 466
64 Reward for Meritorious service 5.9.53 467
65 Rum Allowance 5.9.54 468
66 Sea Going Allowance 5.9.55 469
67 Siachen Allowance 5.9.56 470
68 Special Allowance for Child Care 5.9.57 471
for Women with disabilities
69 Special Forces Allowance 5.9.58 472
70 Special Security Allowance 5.9.59 473
71 Specialist Allowance 5.9.60 474
72 Strategic Forces Allowance 5.9.61 475
73 Submarine Allowance 5.9.62 476
74 Submarine Duty Allowance 5.9.63 477
75 Submarine Technical Allowance 5.9.64 478
76 Subsistence Allowance 5.9.65 479
77 Technical Allowance 5.9.66 480 - 481
78 Test Pilot & Flight Test Engineer Allowance 5.9.67 482
79 Tough Locality Allowance 5.9.68 483
80 Training Allowance 5.9.69 484
81 Transportation Allowance. 5.9.70 485 – 486
82 Unit and Charge Certificate Allowances to 5.9.71 487 - 488
Engine Room Artificers and Mechanicians
83 MEDICAL REIMBURSEMENT 5.10 – 5.11 489 - 495
GROUP
84 General 5.10.1 489
85 Guidelines 5.10.2 489 - 492
86 Basic Drill for the Audit of Medical 5.11 493 - 495
Reimbursement Claims
87 TA/DA & LTC GROUP 5.12 - 5.29 496 - 525
88 Payment of Travelling, Daily Allowance 5.12 496
& LTC claims
89 Grievances relating to Travelling 5.13 497
Allowances Claims
90 Process flow for booking for air tickets 5.14 498
in DTS
91 Work Flow-Accounting, Payment and 5.15 499
[XVIII]
Settlement in DTS for the PAO
92 Travelling Allowance on Tour 5.16 500 - 504
93 General 5.16.1 500
94 Entitlements for Journeys on Tour 5.16.2 500 - 501
or Training
95 Mileage Allowance for Journeys by Road 5.16.3 501 - 502
96 Other Conditions 5.16.4 503 - 504
97 Travelling Allowance for Local Journeys 5.17 505 - 506
98 Travelling Allowance on 5.18 507
Temporary Transfer
99 Travelling allowance on transfer 5.19 508 - 510
100 General 5.19.1 508
101 Transfer TA entitlement 5.19.2 508 – 509
102 Transfer at the Same Station 5.19.3 509
103 Transfer between two stations within 5.19.4 509
a short distance of not more than 20 km
104 When both husband and wife 5.19.5 510
are transferred from one and the same
station to another same station
105 Travelling allowance on retirement 5.20 511 -
106 General 5.20.1 511
107 TA not admissible on resignation, 5.20.2 512
dismissal, etc.
108 Advances 5.20.3 512
109 Admissibility of TA to persons re- 5.20.4 512
employed in Government service
110 Travelling allowance to the family of 5.21 513
a deceased employee
111 Time-limit for submission of travelling 5.22 514
allowances claims
112 Leave Travel Concession (LTC) 5.23 515 - 516
113 Eligibility 5.23.1 515
114 Salient points 5.23.2 515 – 516
115 Carry forward 5.23.3 516
116 New recruits 5.23.4 516
117 Travelling allowance entitlements for LTC 5.24 517 - 520
118 Journey by Air/Rail/ Steamer – same as 5.24.1 517
on tour/ transfer
[XIX]
119 Special relaxation 5.24.2 517
120 Journey by road 5.24.3 518
121 By longer route in same/ different modes 5.24.4 518

of conveyance
122 Reimbursement 5.24.5 518 – 519
123 Advances 5.24.6 519
124 Adjustment of Claims 5.24.7 519 - 520
125 LTC to Home Town 5.25 521
126 LTC to any place in India 5.26 522
127 LTC for Escort 5.27 523
128 Misuse of LTC 5.28 524
129 Encashment of EL during LTC 5.29 525
130 PENSION GROUP 5.30 – 5.75 526 - 581
131 Sanction & disbursement of 5.30 526 - 527
pensionary awards
132 Pensionary/ terminal benefits: 5.31 528
Civilians Pension
133 Superannuation pension 5.32 529
134 Retiring pension 5.33 530
135 Voluntary retirement pension 5.34 531
136 Invalid pension 5.35 532
137 Compensation pension 5.36 533
138 Compulsory retirement pension 5.37 534
139 Compassionate allowance 5.38 535
140 Extraordinary pension 5.39 536
141 Family pension 5.40 537
142 Commutation of pension 5.41 538
143 Retirement gratuity 5.42 539
144 Death gratuity 5.43 540
145 Service gratuity 5.44 541
146 General Provident Fund and incentives 5.45 542
147 Deposit Linked Insurance Scheme 5.46 543
148 Contributory Provident Fund 5.47 544
149 Leave encashment 5.48 545
150 Central Government Employees 5.49 546
Group Insurance Scheme (CGEGIS)
[XX]
151 Pensionary/ terminal benefits: 5.50 547
Defence Personnel
152 Retiring pension for Commissioned Officers 5.51 548
153 Retiring pension for JCOs & ORs & 5.52 549
equivalents
154 Invalid pension 5.53 550
155 Commutation of pension: Defence 5.54 551 – 552
Pensioners
156 Pensionary benefits on death/disability 5.55 553 – 556
in attributable/ aggravated cases
157 Disability pension 5.56 557 - 558
158 Disability element for disability at the 5.56.1 557
time of discharge/retirement
159 Disability pension on invalidment 5.56.2 558
160 War injury pension on invalidment 5.57 559
161 War injury pension on retention in service 5.58 560
162 Lump sum compensation in lieu of 5.59 561
war injury pension
163 War injury element on 5.60 562
subsequent retirement
164 Liberalized disability pension 5.61 563
165 Liberalized Disability Element/ War 5.62 564
Injury Element on retirement/ discharge
166 Constant Attendance Allowance 5.63 565
167 Gratuity 5.64 566
168 Service gratuity 5.65 567
169 Retirement gratuity 5.66 568
170 Death gratuity 5.67 569
171 Residuary gratuity 5.68 570
172 Invalid gratuity 5.69 571
173 Ordinary family pension 5.70 572
174 Special family pension 5.71 573
175 Special family pension on re-marriage 5.72 574
of widow
176 Rates of special family pension 5.73 575
177 Liberalized family pension 5.74 576 – 579
[XXI]
178 Second life award of liberalized 5.75 580 - 581
family pension in respect of JCOs/ORs
[XXII]
VI SELLER PAYMENT WING 6.1 – 6.8 582 – 600
1 Objective 6.1 582

2 Duties 6.2 582 – 583
3 Handling of bills/ claims 6.3 584
4 Level jumping 6.4 585
5 Tax deduction at source of income tax 6.5 586
6 Tax deduction at source of goods & 6.6 587
services tax (GST)
7 Exhaustive list of types of bills dealt with 6.7 588 – 597
in Seller Payment Wing
8 List of Documentation Sets required 6.8 598 - 600
for various kinds of Bills/ Claims
[XXIII]
VII WORKS WING 7.1 – 7.42 601 – 693
1 Introductory 7.1 601

3 Duties 7.3 602 - 604
4 Classification of works 7.4 605 - 606
5 Administrative Approval 7.5 607
6 Audit of Administrative Approval 7.6 608 - 609
7 Technical Sanction 7.7 610 - 611
8 Audit of Technical Sanctions 7.8 612
9 Appropriations and re-appropriations 7.9 613
10 Audit of appropriations and re- 7.10 614
appropriations
11 Method of execution of works 7.11 615
12 Contracts 7.12 616 – 618
13 Amendments to the contracts 7.13 619
14 Deviation Orders 7.14 620 - 621
15 Earnest Money and Security Deposits 7.15 622 - 624
16 Refund of Security Deposits 7.16 625 - 627
17 Standing Security Deposit (Unlimited Class) 7.16.1 625 - 626
18 Standing Security Deposit (other than those 7.16.2 626
of Unlimited Class)
19 Refund of Security Deposit for 7.16.3 626 - 627
Individual Contracts
20 Stock verification of securities 7.17 628
21 Bills & payments 7.18 629 - 630
22 Post – audit of bills 7.19 631
23 Demands 7.20 632 - 633
24 Annual Review of Works Expenditure 7.21 634 - 636
25 Appropriation Accounts in respect of BRO 7.22 637
26 Re-appropriation statements of buildings 7.23 638 - 639
27 Demolition statements of buildings 7.24 640
28 Terminal compensation claims 7.25 641 – 643
29 Audit objections 7.26 644
30 Arbitration awards 7.27 645 - 646
31 Audit reports: Charged Expenditure cases 7.28 647 - 648
32 Measurement Book 7.29 649
33 Loss of Measurement Book 7.30 650
[XXIV]
34 Lease agreements in respect of 7.31 651
Border Roads land which come under the
financial powers of ADGBR/ DGBR
35 Proposals on account of advance payment 7.32 652
to other Central Govt. Departments/ State
Govt/PSUs, etc. relating to civil works
36 Project Appraisal/Project Review 7.33 653
37 Monitoring of IFA works done by sub- 7.34 654
offices
38 Payment of cost of maintenance of 7.35 655
P.O.W. Cemeteries
39 Verification and adjustment of the cost 7.36 656
of vehicles issued by the army to the MES
in the half-yearly statement rendered by
IHQ of MOD (Army)
40 Adjustment of Departmental Charges 7.37 657
for works done by MES in respect of
Navy / Air Force
41 Reports & Returns 7.38 658
42 Sub-offices involved in Works Accounting 7.39 659
43 Accounts Officer (Garrison Engineer) 7.39.1 659
44 Assistant Accounts Officer (Barrack/ 7.39.2 660
Stores Officer)
45 Accounts Officer (Project/ Task Force/ 7.39.3 661
Base Workshop/Stores Division/Records
GREF/ LCGDBR)
46 Role & Functions of AO (GE) 7.40 662 – 663
47 Role & Functions of AAO (BSO) 7.41 664
48 Main functions & duties of Accounts 7.42 665 -
Offices attached to BRO Units/ Formations
49 Duties as an Accountant 7.42.1 665
50 Duties as an Internal Auditor 7.42.2 666 - 667
51 Duties as a Financial Assistant & Advisor 7.42.3 667
52 Duties as an Integrated Financial 7.42.4 667 - 668
Advisor (IFA)
53 Register of Approvals (IAFW-1816) Annexure 669 - 670
‘7.6.A1’
54 Fly Leaf Instructions: Register of Annexure 671 - 672
[XXV]
Appropriations ‘7.9.A2’
55 Fly Leaf Instructions: Register of Contracts Annexure 673 - 674
‘7.12.A3’
56 Check List for scrutiny of contracts Annexure 675 - 682
by Works Wing ‘7.12.A4’
57 Fly Leaf Instructions for Critical Annexure 683
Review Register ‘7.12.A5’
58 Fly Leaf Instructions for Register Annexure 684

of Extension DOs ‘7.14.A6’
59 Fly Leaf Instructions for Register of Annexure 685 - 686

Security Deposit ‘7.15.A7’
60 Fly Leaf Instructions for Register of Annexure 687 – 688
Bank Guarantee Bonds ‘7.15.A8’
61 Check List for Audit of Contractor’s Annexure 689 - 692
RAR/ Final Bills in the Works Wing ‘7.18.A9’
of Main Office
62 Fly Leaf Instructions for Register Annexure 693
of Arbitration Cases ‘7.27.A10’
[XXVI]
VIII IFA WING 8.1 – 8.11 694 – 751
1 Background and origin of the IFA System 8.1 694 - 697

2 Introduction: IFA system 8.1.1 694
3 New Management Strategy 8.1.2 694 – 695
4 IFA scheme in Defence 8.1.3 695
5 New Management Strategy in Army 8.1.4 695 – 696
6 Advancement of IFA System in Army 8.1.5 696 - 697
7 Expectations from IFAs 8.1.6 697
8 Objectives of IFA Wing at DAD HQrs 8.2 698
9 Duties of IFA Wing at DAD HQrs 8.3 698 - 699
10 Role & duties of PIFA/ IFA offices 8.4 700 – 702
11 Scope of work of IFA 8.5 703
12 Stages of involvement of IFA in 8.6 704
expenditure proposals
13 Acceptance of Necessity (AON) Stage 8.6.1 705 – 711
14 Tendering stage 8.6.2 712 – 716
15 Expenditure Sanction Stage 8.6.3 717 – 718
16 Post Contract Management 8.6.4 719 - 727
17 Involvement of IFA in Works proposals 8.7 728
18 Scrutiny of works proposals by IFAs 8.8 729 - 745
19 Points to be seen by IFA in 8.9 746
outsourcing / conservancy cases
20 Outsourcing Cases 8.9.1 746
21 Conservancy Contracts 8.9.2 747 - 749
22 Record management in IFA offices 8.10 750
23 Reports & Returns 8.11 751
[XXVII]
IX AUDIT WING 9.1 – 9.62 752 – 902
1 AUDIT WING OF DAD HQrs 9.1 – 9.5 752 - 755

• Internal Audit Section
• Local Audit Section
• Management Information System (MIS)
Section
3 Duties 9.2 752 - 754
4 Internal Audit Section: Objectives & Duties 9.3 755
5 Local Audit Section: Objectives & Duties 9.4 756
6 Management Information System 9.5 755
Section: Objectives & Duties
7 AUDIT WING AT PCsDA/CsDA 9.6 758
OFFICES
• Seller Post Audit Group
• Pay & Allowances Post Audit Group
• Pension Post Audit Group
• Stores Audit Group
• Internal Audit Group
8 SELLER POST AUDIT GROUP 9.7 – 9.10 759 - 769
9 Objective & duties 9.7 759 - 760
10 Audit of sanctions 9.8 761 - 764
11 Performance audit 9.9 765 - 766
12 Risk based audit 9.10 767 - 769
13 PAY & ALLOWANCES POST 9.11 – 9.13 770 - 773
AUDIT GROUP
14 Objective & duties 9.11 770
15 Audit of pay & allowances 9.12 770
16 Scale Audit 9.13 771 - 773
17 AUDIT OF TRAVELLING ALLOWANCE, 9.14 774
DAILY ALLOWANCE AND
OTHER PERSONAL CLAIMS
18 Reimbursement Claims on account 9.15 775 - 777
of Medical Treatment
19 PENSION POST AUDIT GROUP 9.16 778 - 779
20 Audit of Pension Accounts 9.17 780
[XXVIII]
21 Audit of Change Statements 9.18 781
22 STORES AUDIT GROUP 9.19 – 9.36 782 - 813
24 Duties 9.20 782 - 783
25 Rates: General 9.21 784
26 Articles of A.S.C. Supply purchased locally 9.22 785 – 786
27 Rates for fodder 9.23 787
28 Pricing of payment issue vouchers, 9.24 788
loss statements, service transport indents,
etc. and adjustment of cost thereof
29 Payment Issue Vouchers 9.25 789 - 791
30 Loss Statements 9.26 792
31 Service Transport Indents 9.27 793
32 Audit of sale accounts relating to 9.28 794 – 797
surplus, obsolete and waste stores
33 Procedure for credit verification of 9.29 798 -799
credits of high value imported and
indigenous stores
34 Customs Duty charges 9.30 800 - 805
35 Central purchase of stores in India 9.31 806
36 Adjustment of Treasury Receipts/e-MRO 9.32 807
37 Adjustment of charges on account 9.33 808 - 809
of medical treatment between the
Defence Services, Ministry of Home
Affairs (Para military forces) and State
Governments (other than Tamil Nadu)
38 Recovery of extra expenditure incurred 9.34 810 - 811
by the Defence Services in connection with
aid to civil powers
39 Adjustment of claims for loss of stores 9.35 812
in transit
40 Scheduling of ‘E’ copies of issue vouchers 9.36 813
to consignee LAO
41 INTERNAL AUDIT GROUP 9.37- 9.62 814 - 902
43 Duties 9.38 815 – 817
44 Strengthening of Internal Audit 9.39 818
45 Entry/Exit conferences to be held by 9.40 819
[XXIX]
officers while conducting audit
by PCsDA/CsDA
46 Audit Conclaves 9.41 820
47 Examination and Circulation of 9.42 821
Government Letters, etc.
48 Examination of Defence Expenditure 9.43 822 – 823
for exploring means of achieving economy
49 Examination of sanctions to expenditure by 9.44 824
CFAs lower than the Government of India
50 Tendering financial advice to the local 9.45 825 - 826
administrative authorities and rendition of
quarterly report thereon to the DAD HQrs
51 Special Reports and Outstanding Objections 9.46 827 - 829
of Units and formations moving out
of Command or Disbanded
52 Test Audit Reports 9.47 830
53 Draft Paras of Local Audit interest 9.48 831 - 832
received from Director of Audit Defence
Services for incorporation in the Audit
Report, Defence Services
54 Consolidation and editing of the quarterly 9.49 833 - 837
audit report {erstwhile Major Financial and
Accounting Irregularities (MFAI)}
55 Internal Audit Report 9.50 838 - 841
56 Annual Audit Certificate 9.51 842 - 850
57 Audit of Loss Statements 9.52 851 - 852
58 Exhibition of Losses in the 9.53 853 – 857
Appropriation Accounts Losses of Cash,
Overpayments, etc.
59 Infructuous expenditure 9.54 858
60 Losses of Stores, Over Issue of Stores, etc. 9.55 859 - 860
61 References from LAOs / RAOs 9.56 861
62 Verification of Specimen Signatures 9.57 862
63 Tour Notes and Reviewing Officer's Reports 9.58 863
64 Cantonment Boards
65 General 9.59 864
66 Audit of Financial Statements 9.60 865
67 Audit Report on Financial Statements 9.61 866
[XXX]
68 Losses, irrecoverable items of revenue 9.62 867
& remission of Rent for Land, etc.
69 Draft Audit Para for the year Annexure’ 868 - 870
_____________. 9.48.A1’
70 PROFORMA I (FRESH CASES) Annexure’ 871 - 872
QUARTERLY AUDIT : REPORT 9.49.A2’
(ERSTWHILE MFAI)
71 Proforma II: QUARTERLY AUDIT Annexure’ 873 - 874
REPORT (ERSTWHILE MFAI) 9.49.A3’
LIST OF CASES ALREADY REPORTED
BUT STILL OUTSTANDING
72 QUARTERLY AUDIT REPORT Annexure’ 875 - 876
(ERSTWHILE MFAI) -QE ______ : 9.49.A4’
Specimen of Forwarding Memo
73 List of Annexures and their statements to be Annexure’ 877 - 896
furnished by the PCsDA/CsDA for 9.51.A5’
the Annual Audit Certificate (AAC)
74 Statement of Losses Annexure’ 897
9.53.A6’
75 Statement showing by various categories, Annexure’ 898 - 899
the total amount of stores losses pertaining 9.55.A7’
to the Defence Services finally dealt with
during the year ………..
76 Statement showing by various categories, Annexure’ 900
the total amount of cash losses pertaining to 9.53.A8’
the Defence Services relating to Post / Pre-
partition finally dealt with during the year
……..
77 Subject headings/ format for Annexure’ 901

preparation/ submission of draft Internal 9.50.A9’
Audit Report cases by the PCsDA/CsDA
78 Format for the forwarding letter of Annexure’ 902
Internal Audit Report submitted 9.50.A10’
by the PCsDA/CsDA
[XXXI]
X INFORMATION TECHNOLOGY 10.1 – 10.11 903 – 931
(IT) WING

2 Duties 10.2 904 - 905
3 Information Technology Wing of 10.3 906 – 908
DAD HQrs
4 Focus on improving core functions 10.4 909
of organisation / domain and outsource
non-core functions
5 Formulation and updation of DAD 10.5 910 - 911
IT Policy
6 Defining the Roadmap 10.6 912
7 Outsourcing of work/projects 10.7 913
8 Ensuring the General Standards 10.8 914
9 Constitution of Project Teams 10.9 915
10 Various IT Projects in DAD 10.10 916 -
11 PROJECT ‘TULIP’ 10.10.1 916
12 PROJECT ‘NIDHI’ 10.10.2 917
13 PROJECT ‘VISHWAK’ 10.10.3 918
14 PROJECT ‘RAKSHA AWAAS’ 10.10.4 919
15 PROJECT ‘LIFELINE PLUS’ 10.10.5 920
16 PROJECT ‘e - SUCHNA’ 10.10.6 921
17 PROJECT ‘NEW COMPILATION 10.10.7 922
SYSTEM (NCS)’
18 PROJECT ‘SPARSH – System of 10.10.8 923
Pension Administration (Raksha)’
19 PROJECT ‘SPARROW’ 10.10.9 924
20 PROJECT 10.10.10 925
‘INFORMATION TECHNOLOGY
MANAGEMENT SYSTEM (ITMS)’
21 PROJECT ‘e-OFFICE’ 10.10.11 926
22 AADHAR ENABLED BIOMETRIC 10.10.12 927
ATTENDANCE SYSTEM (AEBAS)
23 Project PRABAL 10.10.13 928
24 Project Comprehensive Pay System (CPS) 10.10.14 929 - 930
25 IT Support 10.11 931
[XXXII]
XI SYSTEMS WING 11.1 – 11.22 932 – 965
1 SYSTEMS WING OF DAD HQrs

2 Objectives & Duties 11.1 932
3 Maintenance, updation & vetting 11.2 933
of departmental codes & manuals
4 Analysis of thematic audit 11.3 934
reports submitted by PCsDA/ CsDA
5 Time & motion study 11.4 935
6 SYSTEMS AND PROCEDURE 11.5 936 - 938
7 INSPECTION GROUP 11.6 939 - 942
8 SYSTEMS WING AT PCsDA/ 11.7 943
CsDA OFFICES
• Coordination Group
• Organization & Methods Group
• Training
• Inspection & Total Quality
Management (TQM) Group
9 COORDINATION GROUP 11.8 – 11.9 944 - 945
11 Functions 11.9 945
12 ORGANIZATION & METHODS GROUP 11.10 –11.11 947 - 950
14 Functions 11.11 948 - 950
15 TRAINING GROUP 11.12 951 - 952
16 Training Advisory Committee (TAC) 11.13 953
17 Controllers Training Committee (CTC) 11.14 954 - 955
18 Training for newly recruited Auditors 11.15 956
& Clerks
19 INSPECTION GROUP 11.16 957
21 Functions 11.18 959 - 960
22 Scope of work 11.19 961
23 Preparation and disposal of 11.20 962 - 963
Inspection Reports
24 Inspection programme 11.21 964
25 Inspection reports of DAD HQrs 11.22 965
[XXXIII]
Chapter - I
INTRODUCTION
DEFENCE ACCOUNTS DEPARTMENT:
AN ORGANISATIONAL INSIGHT
1.1. The Defence Accounts Department discharges its role under the
administrative control of the Ministry of Defence (Finance). The
Department is responsible for internal audit, payment, accounting and
financial advice functions of Defence Expenditure. Any important
change in the duties and functions of Secretary (Defence Finance) or the
Defence Accounts Department requires approval of the Ministry of
Finance.
1.2. The Controller General of Defence Accounts is the Head of the

Department. He functions on behalf of the Secretary (Defence
Finance)/Financial Adviser (Defence Services). He is the Chief
Authority in all matters affecting internal audit and accounting in
respect of expenditure pertaining to the Defence Services and other
Defence related Organizations.
1.3. The Secretary (Defence Finance) is also the Chief Accounting

Officer for the Defence Services. He, in this capacity, prepares the
Appropriation Accounts for the Defence Services. He is also responsible
for the internal audit and accounting of Defence Expenditure. This
responsibility is discharged through the Controller General of Defence
Accounts.
1.4. The Defence Accounts Department provides services to the

following organizations:
DAD Clientele
Armed Forces: - Joint Staff & Inter Services - Border Roads Organisation;
- Army; Organizations; - Military Engineering
- Navy; -Defence Research & Development Services;
- Air Force Organisation - Canteen Stores
-Directorate General of Quality Department;
Assurance; - National Cadet Corps;
- Directorate of Ordnance (Co- - Coast Guard Organisation;
ordination & Services); - Sainik School Societies;
1
-Defence Public Sector Undertakings - Pensioners (Defence &
Defence Civilians)
1.5. Organizational Setup
1.5.1. DAD Headquarters
The headquarters of the Defence Accounts Department is located

at Delhi Cantt.
1.5.2. Field Organization
The field organization of the Department has been structured by

and large on the pattern of the organizational structure of the client
organizations. The location of Principal Controllers/ Controllers offices
is in close proximity to the Command Headquarters/Area
Headquarters, particular Service or functions, etc. It enables them to
render prompt services to the client organizations located in or nearby
stations.
1.5.3. IFA Setup
The Department has a well set-up system of Integrated Financial

Advisors (IFA) to render financial advice to the Competent Financial
Authorities (CFAs). This facilitates exercising of various activities, in
line with the Financial Powers delegated by the Government from time
to time to the various authorities/functionaries in the Armed Forces, etc.
1.5.4. Training Setup
The Centre for Training & Development (CENTRAD) in the DAD

Headquarters caters to the overall training requirements of the
Department. It also co-ordinates with the other training institutes of
DAD in the field organizations viz. National Academy of Defence
Financial Management (NADFM), Pune, Five Regional Training Centres
at Pune, Bengaluru, Kolkata, Meerut and Lucknow, Defence Pension
Training Institute (DPTI), Prayagraj, Delhi Training Centre, Gurugram
and two Regional Study Centres at Chennai and Mumbai for the
purpose.
2
1.5.5. Area Accounts Offices
The Area Accounts Offices are akin to the Principal

Controllers/Controllers Main Offices. In order to discharge various
functions in wide-spread commands, the Area Accounts Offices have
been created. They discharge the duties of payment, accounting, etc. for
the Units and Formations under their jurisdiction.
1.5.6. Pay Accounts Offices (Other Ranks)
Pay Accounts Offices are located at various stations across

India. They work in close association with Regimental Centres and
Depot Offices and are responsible for the maintenance of IRLAs of the
Army/GREF personnel based on the particular Corps/Regimental
Centres. They are also responsible for the maintenance of the AFPP
Fund Accounts.
1.5.7. Local Audit Offices, Assistant Local Audit Offices

and Regional Audit Offices (MES)
Local Audit Officers and Regional Audit Officers (MES)function

under the Principal Controllers/Controllers offices for local audit of
Stores Accounts and Inspection of cash accounts of Army Units and
Formations (including MES but excluding Air Force and Navy Units).
Similar officers for the Air Force and Navy operate function
under the PCsDA (Air Force), New Delhi and Dehradun and PCDA
(Navy), Mumbai, respectively.
When there is more than one such officer at a station, they will
be designated alphabetically, for example, for Army - LAO(A),
LAO(B), etc. – and for Air Force/Navy - L.A.O.(A) Air Force / Navy,
L.A.O.(B)Air Force/Navy, etc.
1.5.8. Accounts Offices (Border Roads Task Forces)
Co-located with the offices of the Border Roads Organisation, the

Accounts Offices (BRTF), caters to payment and accounting of the
Border Roads Organisation.
3
1.5.9. Accounts Officers/Assistant Accounts Officers
(Garrison Engineer) (AOs /AAOs (GE))
The functions of AOs /AAOs (GE) of the Defence Accounts

Department attached to Garrison Engineer offices are three-fold:
(i) As an Accountant: They maintain certain accounts, in

accordance with prescribed rules from the data furnished to
them.
(ii) As a primary Auditor: They apply certain preliminary checks to

the initial accounts and vouchers, etc.
(iii) As a financial Assistant and Advisor: They assist the head of the
MES formation in all matters relating to accounts and budget
estimates and the operation of financial rules.
1.5.10. Accounts Offices (DAD), Hindustan Aeronautics

Limited
These offices are responsible for exercising initial and cost

checks on behalf of Ministry of Defence (Finance Division). They are
responsible to PCDA Bengaluru for carrying out audit checks
devolving on the DAD and for payment of bills preferred by HAL,
Bharat Electronics Limited, Indian Telephone Industries Ltd.,
Bengaluru, etc. and for services rendered and supplies made to the
IAF. They are also responsible for carrying out financial checks and
scrutiny of costs from the books of HAL and for furnishing all data
required by DFA (AF) for fixing prices for adoption in the HAL
contracts. They have to render audit reports on price proposals in
respect of certain programmes and maintenance charges of AF stores at
HAL, etc. for fixing all-in-price as and when called for by the Ministry
of Defence (Finance) (Air). They have to co-ordinate the work of
Accounts Officers (AF) HAL. The Account Offices (HAL) are presently
located at Bengaluru, Koraput, Lucknow, Kanpur, Ojhar, Hyderabad
and Barrackpore.
1.6. The structure of Defence Accounts Department has been given in

the diagrammatic representation shown ahead.
4
Defence Accounts Department (DAD)
DAD Headquarters, Delhi Cantt. Field Organization

(Headed by CGDA) (Headed by PCDA/CDA or equivalent level officers)
FUNCTIONAL PCDA/CDA PIFA/IFA

REGIONAL PCDA/CDA
1. PCDA (O) Pune
1. PCDA(NC) Jammu
2. PCDA (AF) Dehradun
2. PCDA(CC) Lucknow
3. PCDA (AF) New Delhi
3. PCDA(WC) Chandigarh
4. PCDA (Navy) Mumbai
4. PCDA (SC) Pune
5. PCA(Fys) Kolkata
5. PCDA (SWC) Jaipur Continued
6. PCDA (Pensions) Prayagraj
6. PCDA Bengaluru
7. PCDA (R&D) New Delhi on next
7. PCDA New Delhi
8. PCDA (R&D) Hyderabad page….on
8. CDA (Army) Meerut
9. PCDA (BR) Delhi Cantt.
9. CDA Patna next page
10. CDA (BR) Guwahati
10. CDA Jabalpur
11. CDA (Navy & Coast Guard), New Delhi
11. CDA Chennai
12. CDA (R&D) Bengaluru
12. CDA Secunderabad
13. CDA (PD) Meerut
13. CDA Guwahati
14. CDA (Funds) Meerut
14. CDA (IDS) New Delhi
15. CDA (CSD) Mumbai
16. CDA (IT&SDC) Secunderabad
17. CDA (Training) & NADFM, Pune
18. CDA (RTCs) at Pune, Kolkata, Bengaluru, Meerut & Lucknow
SUB-OFFICES (AS PER FUNCTIONAL NEEDS)
Area Accounts Local Audit Offices, Accounts Offices Pay & Accounts Other Sub-Offices viz. AO(HAL)
Offices Regional Audit Offices, Garrison Engineers/ Offices (Other under PCDA, Bengaluru, DPTI under
Assistant Local Audit Offices Assistant Garrison Ranks) PCDA(P) Prayagraj, AO BRTF, etc.
Engineers(I)
5
Continued from
previous page
PIFA/IFA
ARMY NAVY
OTHERS
1. PIFA (Army-Q&M) New Delhi 1. PIFA (Navy) New AIR FORCE
2. PIFA (Army-O) New Delhi Delhi (i) R&D
3. IFA (NC) Udhampur 1. PIFA (Air HQ) New Delhi
2. IFA (WNC) Mumbai
4. IFA (WC) Chandimandir 2. IFA (MC) Nagpur 1. IFA (R&D. DRDO HQ) New Delhi
3. IFA (ENC)
5. IFA (CC) Lucknow Cantt. 3. IFA (WAC) Delhi Cantt. 2. IFA (R&D-Aeronautical) Bengaluru
Vishakhapatnam
6. IFA (EC) Kolkata 4. IFA (TC) Bengaluru 3. IFA (R&D-ECS) Bengaluru
4. IFA (SNC) Kochi
7. IFA (SC) Pune 5. IFA (SWAC) Gandhinagar 4. IFA (R&D-MSS) Hyderabad
5. IFA (P-75) New Delhi
8. IFA (SWC) Jaipur 6. IFA (CAC) Bamrauli 5. IFA (R&D-ACE) Pune
6. IFA (Project-Sea
9. IFA (ARTRAC) Shimla 7. IFA (EAC) Shillong
Bird) New Delhi
10. IFA (MAP) New Delhi 8. IFA (SAC) Trivandrum (ii) Integrated Defence Staff
7. IFA (Navy-Capital)
11. IFA (DGAFMS) New Delhi 9. IFA (AF-Capital) New Delhi
New Delhi
1. PIFA (IDS) New Delhi
12. IFA (Project VARSHA), New Delhi
2. IFA (ANC) Port Blair
13. IFA (Army-Capital) New Delhi
14. IFA (Delhi Area) Delhi Cantt. (iii) Coast Guard
15. IFA, Bengaluru
PIFA (Coast Guard) New Delhi
16. IFA, Secunderabad/Hyderabad
17. IFA 1 Corps Mathura Lower level of IFAs attached to (iv) Border Roads
18. IFA 2 Corps Ambala Units/Formations
IFA (BR) Delhi Cantt.
19. IFA 4 Corps Tezpur
20. IFA 10 Corps Bhatinda
21. IFA 11 Corps Jalandhar
22. IFA 12 Corps Jodhpur 6
23. IFA 15 Corps Srinagar
24. IFA 21 Corps Bhopal
1.7. OBJECTIVES OF THE DEFENCE ACCOUNTS
DEPARTMENT
(i) To pay the dues of personnel, units and formations of Defence

Services and DAD as per entitlement and by due dates.
(ii) To pay for and adjust promptly all supplies and services rendered to
the Defence Services.
(iii) To ensure that the pay and provident fund accounts of Officers, JCOs,
ORs and NCsE (Including Pay Accounts of non gazetted civilians
serving in operational / field areas) of Army, Navy and Air Force are
maintained properly and correctly by the concerned offices (PCDA
(O), Pune, Pay Accounts Offices (PAOs), AFCAO, IN Naval Pay
Office, etc.).
(iv) To audit cash and stores accounts kept by the various units and
formations (including arsenals, workshops and storage depots) in the
three services.
(v) To grant pensionary (including commutation) awards as admissible

under rules correctly and promptly by the due date.
(vi) To ensure correct computation, accounting and payment of

entitlements of pensions.
(vii) To ensure correct and prompt payment of personal dues of

employees.
(viii) To act as Integrated Financial Advisor to ensure prudent exercise of

delegated financial powers by the CFAs in accordance with extant
rules, regulations and orders/instructions of the Government of India
from time to time.
(ix) To provide necessary accounting, financial and internal audit

information and advice to the authorities of the client
organizations to help them in the discharge of their Management
functions.
7
(x) To maintain the efficiency of the Defence Accounts Department at a
high level.
(xi) To maintain Provident Fund Accounts, correct and complete in all

respect and timely issue of annual accounts lips to subscribers’.
(xii) To ensure implementation of DAD Training and Development Policy,

as amended from time to time, for developing professional
competency through a well-informed and trained work-force.
(xiii) To ensure expeditious payment of claims on account of

advances/withdrawals, wherever such claims are payable by that
office.
(xiv) To ensure prompt settlement of claims on subscribers’ becoming non-

effective.
8
1.8. STRUCTURE OF OFFICES
1.8.1. DAD HEADQUARTERS
The CGDA heads the DAD Headquarters. He is assisted by a Special

CGDA and three Additional CGsDA. The work is assigned among separate
wings. Each wing is headed by a Senior Joint CGDA or Joint CGDA, who
functions under the Special CGDA or Additional CGDA. The Personnel and
Establishment Wing is headed by the Senior Joint CGDA (P&E) who functions
directly under the CGDA.
Each wing is further divided into a number of sections. Each section is

under the charge of a Senior Deputy CGDA/ Deputy CGDA/ Senior Assistant
CGDA/Assistant CGDA. These sections are under the supervision of the
Senior Accounts Officers & Accounts Officers.
DAD HQrs
Personnel Establishment Pay & Pension AT - Coord

Wing Wing Allowances Wing Wing Wing
Systems IT Wing IFA Accounts

Wing Wing Wing
9
1.8.2. FIELD ORGANIZATION
The field offices are headed by the PCDA/CDA or equivalent level
officers. They are assisted by the Additional CDA or Joint CDA. Each office is
further divided into a number of groups comprising more than one section
which function under Deputy CDA or Assistant CDA. These Sections are
under the supervision of the Senior Accounts Officers & Accounts Officers.
PCDA/CDA Office
Personnel Establishment Pay & Allowances Accounts Seller Payment

Wing Wing Wing Wing Wing
Systems Audit Works ITWing IFA

Wing Wing Wing Wing
10
1.9. CLASSIFICATION OF POSTS
In terms of instructions issued by the Government, the present
classification of posts is as under:
Description of Posts Classification
A Central Civil Post carrying the pay in the Pay Group A

Matrix at the Level from 10 to 18
A Central Civil Post carrying the pay in the Pay Group B

A Central Civil Post carrying the pay in the Pay Group C

11
1.10. DESIGNATION OF VARIOUS LEVELS OF OFFICERS
AND STAFF IN THE DEFENCE ACCOUNTS DEPARTMENT
The Defence Accounts Department has following posts of officers and
staff:
TYPES OF POSTS
I Grou GAZETTED II Group NON-
p GAZETTED
IDAS CADRE 1 B Senior Auditor
1 A CGDA (Apex level) 2 B Senior
Translation
Officer
2 A Special CGDA (Apex level) 3 B Junior
Translation
Officer
3 A Additional CGDA (HAG+) 4 B Private Secretary
4 A PCDA or equivalent (HAG) 5 C Auditor
5 A CDA or equivalent (SAG) 6 C Stenographer
6 A Additional CDA or 7 C Data Entry
equivalent (Non-Functional Operator
Selection Grade of JAG)
7 A Joint CDA or equivalent 8 C Clerk-cum-
(JAG) Typist
8 A Deputy CDA or equivalent 9 C Librarian
(STS)
9 A Assistant CDA or 10 C Staff Car Driver
equivalent (JTS)
OTHERS 11 C Canteen Staff
10 A Assistant Director (Official 12 C Multi - Tasking
Language) Staff
A Principal Private Secretary
A Senior Accounts Officer
B Accounts Officer
B Assistant Accounts Officer
B Senior Private Secretary
12
Chapter - II
ESTABLISHMENT WING
2.1 Objectives
The objectives of the Establishment Wing are:-
(i) To look after various aspects of establishment of the

organization.
(ii) To provide a healthy living and working conditions for
officers and staff.
(iii) To effectively manage the affairs of the Defence Accounts
Department by issuing suitable orders/instructions for
smooth conduct and management of affairs of the
Department and its officers and staff.
2.2 Duties
The duties of the Establishment Wing are:
(i) Receipt, digitization, distribution and dispatch of dak.

(ii) Distribution and supply of forms, stationery, etc.
(iii) Maintenance of Service Records.
(iv) Issue of Identity Cards to serving personnel and DAD
Pensioners.
(v) Fixation of pay during various service events viz.
appointment, promotion, MACP, NFU, etc. of officers and
staff of DAD;
(vi) Security and care of Office building, Furniture and
equipments, etc.
(vii) Issue of Permanent advance and handling office contingent
and miscellaneous expenditure;
(viii) Custody, disbursement and accounting of cash;
(ix) Maintenance of Cash Book and other allied registers;
13
(x) Issue of orders regarding delegation of administrative and
other powers to the various levels of officers in DAD.
(xi) To issue instructions regarding powers and responsibilities of
the officers and staff of DAD.
(xii) Opening/Closing, etc. of offices.
(xiii) Preservation of records.
(xiv) Destruction of time-barred records.
(xv) Issue and watching of handing/taking over reports on
transfer of the officers/staff.
(xvi) Managing and watching allotment, occupation / vacation of
DAD residential accommodations.
(xvii) To take action for drawal and disbursement of advances.
(xviii) To process the applications for withdrawal/advance from
General Provident Fund.
(xix) Maintenance and drawal of Permanent Advance (Imprest) for
office.
(xx) To process the matters relating to Office Contingent
Expenditure.
(xxi) To deal with matters related to Non-Statutory Departmental
Canteens.
(xxii) To deal with matters related to Unit Run Canteens (popularly
known as CSD Canteens).
(xxiii) Payment and recovery of leave salary and pension
contributions in respect of persons lent to and from the
Defence Accounts Department;
(xxiv) Preparation of Budget estimates in respect of Locally
Controlled Heads and Cash Requirement Estimates of the
Defence Accounts Department;
(xxv) Control and distribution of Grant-in-Aid for amenities;
(xxvi) Application for subscribing to Postal Life Insurance;
(xxvii) Formation of Resident Welfare Association in DAD
Residential Complexes;
14
(xxviii) Formation of Regional Office Councils (ROC) and all related
actions;
(xxix) Nomination of Public Fund Account Officer, Vigilance Officer,
CPIOs, CAPIOs and First Appellate Authorities.
(xxx) Implementation of the provisions of the RTI Act, 2005 and
discharge of the activities connected to the Act.
(xxxi) To deal with the matters related to the Defence Accounts
Sports Control Board (DASCB)
(xxxii) To deal with the matters related to the Defence Accounts
Recreation Club (DARC).
(xxxiii) To deal with the Inventory maintenance/ verification/
disposal.
(xxxiv) To deal with matters related to Fire Prevention Provisions/
Orders
(xxxv) To make arrangement for security of office buildings and the
office property.
(xxxvi) Procurement of various goods and services for the office.
(xxxvii) To deal with all matters related to projects and works to be
carried out in organization/office.
(xxxviii) To deal with preparation, modification, etc. relating to the
DAD Budget.
(xxxix) To deal with the proposals for procurement of new Staff Car
or Utility Vehicles for the offices in DAD.
(xl) To handle the legal matters.
(xli) To issue general guidelines on correspondence in DAD
offices.
(xlii) To issue Part I & II Office Orders.
(xliii) To deal with all kinds of dak including secret and confidential
correspondence.
(xliv) To issue notification of holidays to be observed during a year.
(xlv) To take appropriate actions for observance of Government
drives on important matters.
(xlvi) To deal with parliamentary matters.
(xlvii) To manage the work of Rajbhasha Cell.
(xlviii) To manage office library.
15
2.3 Pay Personnel
2.3.1. Pay Levels
Pay Level of a post means the Level of the Pay Matrix attached to that
post. Consequent upon implementation of the recommendations of the
Seventh Central Pay Commission, w.e.f. 01.01.2016, there are 1 to 18 Pay
Levels for different posts in Central Government Service.
2.3.2. Pay Levels in DAD
The Pay Levels applicable to various categories of Officers & Staff of the
Defence Accounts Department are:
Level 7th CPC Level

Apex Level (CGDA & Special CGDA) 17
Higher Administrative Grade Plus (Additional CGDA) 16
Higher Administrative Grade (Senior Joint CGDA / 15
PCDA& equivalent)
Senior Administrative Grade (Joint CGDA / CDA & 14
equivalent)
Non-Functional Selection Grade of the Junior 13
Administrative Grade (Senior Deputy CGDA /
Additional CDA & equivalent)
Junior Administrative Grade (Deputy CGDA / Joint 12
CDA & equivalent)
Senior Time Scale (Senior Assistant CGDA / Deputy 11
CDA & equivalent)
Junior Time Scale (Assistant CGDA / Assistant CDA & 10
equivalent)
Principal Private Secretary 11
16
Level 7th CPC Level
Assistant Director (Official Languages) 10
Senior Accounts Officer 10
Accounts Officer 9
Senior Private Secretary 8
(NFU to level 9 after 4 years in SPS grade)
Assistant Accounts Officer 8
(NFU to level 9 after 4 years in AAO grade)
Private Secretary 7
Senior Translation Officer 7
Stenographer Grade – I 6
Senior Auditor 6
Data Entry Operator ‘C’ 6
Librarian 6
Junior Translation Officer 6
Staff Car Driver (Special Grade) 6
Data Entry Operator‘B’ 5
Auditor 5
Staff Car Driver (Grade-I) 5
Data Entry Operator ‘A’ 4
Steno Grade – II 4
Staff Car Driver (Grade-II) 4
Clerk 2
Staff Car Driver (Grade-III) 2
Senior Gestetner Operator 2
Record Clerk/Multi-Tasking Staff 1
17
2.4. PAY FIXATION
Pay of an employee is fixed on different occasion under various

provisions of Fundamental Rules and Supplementary Rules (FR & SR). The
most important of these events are as follows:-
2.4.1. Pay Fixation on Initial Appointment
(a) The pay of an employee who has been appointed as a Direct Recruit is
fixed at the minimum of the pay level in which he has been appointed under
the provisions of FR 22B.
(b) FR 22B(1) contains provisions of pay protection to Central Government
Servant consequent to appointment to a new post in different service or cadre
in Central Government, through direct recruitment. The DoP&T vide OM F.
No. 12/2/2017-Estt(Pay-I) dated 5th August 2020 has issued detailed
guidelines in this matter. Important conditions for pay protection rules are as
follows:-
(i) The employee should have been confirmed in his service in the
previous organization.
(ii) He must be holding lien in his previous organization.
(iii) His previous service must have been counted in the DAD by
PCDA (Pensions) Prayagraj.
(iv) Only substantive pay (the pay which an employee draws in the
permanent capacity) is protected.
(v) The employee draws presumptive pay (the pay a person was
drawing in his previous organization in substantive capacity) from the
date of appointment in the new post till completion of his probation
period.
(vi) After his confirmation in the new post, his pay is refixed as per the
provisions of FR 22.
18
2.4.2. General provisions of FR 22
(i) FR 22(I)(a)(1):- Pay fixation on appointment / promotion to a post

carrying higher responsibilities, e.g. from a lower pay level to a higher pay
level.
(ii) FR 22(I)(a)(2):- Pay fixation on appointment / promotion to a post not

involving higher duties & responsibilities e.g. between same pay levels.
(iii) FR 22(I)(a)(3):- Pay fixation on appointment / promotion to a post

carrying lower pay level.
(iv) Employees have the option to get their pay fixed either from the date of
promotion or from the date of next increment. They must exercise the option
within 1 month of notification of Promotion/ MACP. The option once
exercised is treated as Final.
19
2.5. Annual Increments
(i) After the implementation of 7th CPC, there shall be two dates for grant of
increment namely, 1stJanuary and 1stJuly, provided that an employee shall be
entitled to one annual increment either on 1stJanuary or 1stJuly depending on
the date of his appointment, promotion or grant of financial upgradation.
(ii) In case of absence of an employee on the date of increment due to Leave

(except on Casual Leave), etc. the financial effect of the annual increment is
from the date of joining the post/duty.
(ii) Annual increment may be withheld by the authority empowered to

withhold such increment in accordance with the relevant provisions of the
CCS (CCA) Rules, 1965.
(iii) Only such increment which has not already been drawn by an employee
can be withheld.
(iv) The detailed rules regarding increment are laid down in FR-26 and CCS
(RP) Rules 2016.
20
2.6 Allowances
All the allowances as notified by the Government from time to time are
admissible to the employees of DAD. A brief on the allowances is given in the
chapter on Personnel (Payment) Wing.
21
2.7 HOURS OF ATTENDANCE
The normal hours of attendance at office are 9.00 AM to 5.30 PM or 9.30

AM to 6 PM on all working days (excluding Saturdays). An interval from 1.00
PM to 1.30 PM or 1.30 PM to 2.00 PM for lunch and relaxation shall be
observed. The office will remain closed on all Saturdays except for the offices
which have a six day working.
Principal Controllers/Controllers may at their discretion authorise an

earlier opening hour/and or adjustment of lunch hours as a local arrangement.
This arrangement will in no case reduce the total working hours below 40
hours on an average in a week. The changes in office hours should, however,
be reported to the DAD HQrs.
Subject to the above condition, the hours of attendance of the employees

attached to units and formations (including MES formations) may also be
fixed by Principal Controllers/Controllers to conform to the working hours
followed by the Units/Formations concerned (5 day week or 6 day week as
the case may be). It should be ensured that they put in uniformly on an
average 40 hours a week irrespective of the number of working hours fixed for
the unit/ formation concerned. In case the offices follow six day week, the
second Saturday will be observed as a closed holiday.
22
2.8 DAK DIARY SYSTEM
2.8.1. e-Office Platform
In pursuance to the directions of the Government of India, the Defence

Accounts Department has implemented e-Office across all the offices (DAD
HQrs as well as field offices) for digital movement of dak and disposal of files,
etc. The e-Office platform will enable faster mode of transmission of dak as
well as their monitoring at all levels. This would result in cutting down the
expenditure made on postal charges of dak within the Department.
The e-Office platform also allows to issue digitally signed

communications between the linked offices. This facility shall be utilized for
enabling faster communication amongst the offices within DAD.
Till the e-Office is made operational in full swing, the dak diary shall
continue to be done as explained in succeeding paragraphs.
23
2.8.2. HANDLING OF INWARD DAK
The Section of the Establishment Wing entrusted with duty of dak diary,
etc. will take delivery of all post addressed to the office including local dak
received through messengers.
The addresses on all covers will be examined by the AAO or the Task
Holder, entrusted with such duties, of the concerned section to make sure that
the covers are meant for the office. Unregistered covers will be opened by one
or more Multi-Tasking Staff (MTS) in the presence of the dak sorter. Registered
covers will be opened by a Clerk under the supervision of the AAO. In
opening covers, care will be taken to see that the contents are not damaged.
The contents of each cover will be carefully taken out and each
document will be stamped with the office date stamp. The AAO, will ensure
that the stamp is not put in the body of a letter, etc. or in any other place which
is likely to obliterate its contents.
The dak received (other than secret or confidential dak), along with the
enclosures, will be scanned and passed on to the concerned Wing/Section
through e-office only.
Disputes, if any, regarding the particular Wing/Section to which a letter

pertains will be decided by the Officer-in-Charge of the concerned Section of
the Establishment Wing.
Any communication addressed to an outside party, but wrongly

received in the office will be transmitted to the correct party under advice to
the sender by the concerned Section of the Establishment Wing either by
registered or unregistered post, as the case may warrant.
All bills will be received via e-mode only through the respective
automated utility (GeM, PRABAL, CPS, etc.)
24
2.8.3. DISTRIBUTION OF TOP SECRET / SECRET /
CONFIDENTIAL / DEMI-OFFICIAL AND IMPORTANT DAK
The AAO will collect inner covers marked secret or confidential or DO
letters to the officers, enter the particulars thereof (viz. number, date and office
of dispatch as noted on the outside of such covers) in a transit book kept for
the purpose and personally hand over the transit book along with the covers to
the Officer-in-Charge of the concerned section of the Establishment Wing, who
will initial against the entries in the transit book in token of receipt of the
covers.
All secret and confidential covers brought to the DCDA/ACDA or the

Officer-in-Charge of the Establishment Wing by the AAO will be opened by
the DCDA/ACDA or the Officer-in-Charge of the Establishment Wing
personally and the communication contained therein will be shown to the
senior officer concerned viz. CGDA/PCDA/CDA, etc. (except any letter held
back by the officer from circulation).
The Demi-official letters addressed to the senior officers in an office will

be passed on to the personal staff of the officer to whom the communication is
addressed.
Important communications from the Government of India, DAD HQrs,

Army HQrs, etc., will be sent to the senior officers viz.
CGDA/PCDA/CDA/Addl.CDA/JCDA, etc. for perusal.
The above correspondence will also be entered on e-Office so that further

action on such important communications can be closely monitored. The
personal staff of the senior officers may also enter the above correspondences
in e-Office at their end.
25
2.8.4. Valuable documents
Valuable documents, viz., G.P. notes, fixed deposit receipts, post office
cash certificates, cheques, Demand Drafts, sheet rolls, long rolls, medical
history sheets, records of service, indemnity bonds, insurance policies, court
attachment orders and other documents of a legal nature, will also be diarized
in e-Office. The DAK ID for each valuable document will be generated by the
System and the same will be distributed to the respective Wings/Sections
along with the top-list indicating the DAK ID generated during the
registration process.
26
2.8.5. OUTWARD DAK
All outward correspondence within the DAD should invariably be made

through e-office. Only in exceptional circumstances (viz. return of valuable
documents, service documents, etc.) dispatch through post, courier, etc. should
be resorted to.
In cases of dispatch through post or courier or some other mode, the

concerned section of the Establishment Wing will:-
(i) Dispatch all outward letters, registered and insured parcels;
(ii) maintain Dispatch Registers in automated environment and record

therein the total number of envelopes sent by ordinary post and
other necessary particulars, e.g., numbers assigned and addresses
in respect of letters, etc., sent by registered post or speed post; and
(iii) keep stock of service labels and maintain a stamp account in

respect of service labels used in dispatching letters, etc. in respect
of franking machines or paper stamps.
Secret and confidential covers are treated as "important" and even when
they are not sent by registered/speed post, they should be entered in the
Dispatch Register.
The dispatch of confidential correspondence may be made through the

ordinary office dispatch register, but entries therein should afford no clue with
respect to the contents of the documents and should refer only to the entries in
the Confidential Register.
A separate record for the dispatch of secret and top-secret

correspondence would be maintained by the personal staff of the senior officer
concerned (CGDA/PCDA/CDA, etc.) or Officer-in-Charge of the concerned
Section of the Establishment Wing and this register should be kept under lock
and key.
Papers bearing security classification dispatched from the office should

be placed in double covers, the inner one (which should be sealed) only being
marked "secret" or "confidential" and superscribed with the name or
27
designation of the addressee and the number and date of the communication
enclosed therein, on the top left-hand corner, and the designation of the office
of origin in the bottom left-hand corner, the outer one should be addressed in
the ordinary manner.
Secret correspondence transmitted between Wings/Section or officers in

the Main Office should pass from hand to hand by personal delivery or be sent
in sealed covers.
28
2.8.6. Postage
Primarily the Remotely Managed Franking Machines are being used for
dispatch work wherein credit is being recouped by the Post Office concerned
on demand. In case of non-functioning/ non-availability of Franking Machine,
Book Now Pay Later (BNPL) Facility of India Post may be utilized for dispatch
work by concluding yearly contracts with Department of Post which are
further renewable on yearly basis. Thirdly, service labels are also being used
for dispatch work. Service labels should be kept in the custody of the AAO
under lock and key. He will issue them to the dispatchers in bulk as required
and keep an account of all such issues. When it is necessary for the AAO to
replenish the stock of service labels, a request for the same after obtaining
approval of the Group Officer of the Establishment Wing for the amount of
replenishment of service labels, should be sent to the concerned section of the
Establishment Wing for further necessary action at their end. The UTR number
of the payment made will be sent by the AAO with the requisition to the Post
Office from where the service labels will be issued.
The postage account will be maintained in the automated Dispatch

Register (IAFZ-2016). The amount of postage on each registered/speed post
cover in respect of the communications recorded in the Dispatch Register will
be entered in the column provided for the purpose and totalled daily.
No. of Value of stamps on Amount

envelopes each
Rs. P. Rs. P.
The surprise check of postage account will be exercised once in a month

by the AAO detailed for the purpose by the Officer-in-Charge of the concerned
section of the Establishment Wing, by actual counting of stamps in hand and
affixed on all stamped covers before sending them to the post and stock
balance as per Stock Register.
29
The total value of stamps expended on each date will be worked out and
the progressive totals carried forward to the end of the month when the
monthly postage account will be made up as follows:-
Balance on the 1st Rs. P. Expended during the Rs P
month of………………..
Received during Rs.P Balance in hand on Rs. P
the month of ………. ………….
Total ………………. ……………
When the above postage account is made up, the dispatcher will submit
it to the AAO who will verify the balance of stamps in hand, as shown in the
register, with the actual stock. The account will then be submitted to the
Officer-in-Charge of the concerned Section of the Establishment Wing for
examination and signature.
30
2.8.7. STATIONERY AND FORMS
2.8.7.1. Local purchase of stationery
Local Purchase of stationery items may be made through GeM as per the
extant orders provided by the Government vide General Financial Rules and
DFPR-1978 as amended by the Govt. from time to time. All cases of local
purchase of stationery, printing, binding, etc. will be regulated as per the
provisions laid down in Delegation of Financial Powers Rules 1978, as
amended from time to time.
The bills for stationery purchased locally will also be processed through
the Seller Payment Section.
2.8.7.2. Stationery account

A monthly account of receipt and issue of each article of stationery will
be kept by the Task Holder on Form S-41 to be available in automated
inventory management system, which shall be periodically (say every
fortnight) printed and kept in binders. An AAO from another section of the
office will be deputed half yearly by the PCDA/CDA to audit the stationery
register and to verify by actual counting the stock balances as shown in the
register. He will initial the balances of all articles in token of such verification.
Surprise checks will be exercised by the Officer-in-Charge of the Section at
least twice a year. The orders of the PCDA/CDA will be taken if any surpluses
or deficiencies are discovered.
2.8.7.3. Custody and issue of stationery
All articles of stationery will be kept under lock and key in a suitable
place where no deterioration can occur.
Stationery will ordinarily be issued to the office establishment once a

month on demands (O.F. 1615) signed by AAO of sections, who will ensure
that the demands are restricted to actual requirements and are within the
scales laid down in the stationery regulations.
On receipt of stationery demands from sections, they will be checked by

the stationery clerk and any articles in excess of the scale authorized will be
31
reduced to the correct scale. The demand will then be submitted through the
AAO to the Officer-in-Charge of the concerned Section of the Establishment
Wing for passing orders for the issue to be made.
32
2.8.8. Supply of Forms
Although the requirement of printed forms shall be miniscule while
working in e-Office and automated environment yet in desired cases the
estimates of annual requirements of all forms from the various sections of the
different Wings in the office will be obtained by the concerned section of the
Establishment Wing sufficiently in advance time for preparation of
consolidated indent on IAFZ- 2002 and sending it to the Manager, Govt. of
India Forms Store, Kolkata on the due date, after check with reference to
consumption during the past year and stock in hand.
Indents for forms received from sub-offices such as Pay Accounts Offices,
LAOs, Accounts Section of MES formations, etc. will be checked and after
countersignature passed on for direct compliance to the authorities as under:-
(i) Indent (lAFZ-2279) for forms To be submitted quarterly in advance to

other than those of CDA series appropriate stationery depot
(ii) Indent (IAFZ-2002) for To be submitted annually to the Manager,

forms of CDA series Government of India Store, Kolkata
33
2.8.9. Custody and issue of forms
The Task Holder in-Charge of forms will be responsible for the safe
custody and maintenance of a sufficient stock of all forms. An account of LPC
books, military credit notes, identity passes and cash requisitions will be
maintained in the Inventory Management System on IAF (CDA) 250.
In the system, the receipt and issue of each form will be shown and the
closing balance worked out at the end of each month. The same will be
checked by the AAO and submitted to the Officer-in-Charge of the concerned
section of the Establishment Wing monthly.
34
2.9. ISSUE OF IDENTITY CARDS
2.9.1. General Instructions
This wing shall also be responsible for issue of the Identity Cards to the
serving officers and staff, who join the respective office on appointment or
transfer or deputation, after furnishing of necessary information in the
requisite forms.
Permanent Identity passes in form IAFZ-3049 (Grey backing) and in

form IAFZ-3049-A (Yellow backing) should be issued to the Gazetted Officers
and Not-gazetted staff respectively by the Principal Controllers/Controllers
concerned for the members of their organisation, in accordance with the
instructions contained in Special Army Order 6/S/59, as amended from time
to time. 2
These forms, which are accountable, should be obtained from the

Commandant, Stationery Depots and taken on charge in a Register to be
maintained for showing their receipts and issues.
The size of the photograph to be pasted in the form should be 2'' x 11''
and the cost thereof shall be debited to the Office Contingencies.
2.9.2. Withdrawal of Identity Passes
These passes should be withdrawn from an officer or staff:
(a) On termination of service; or
(b) When more than two alterations to permanent passes become necessary;
or
(c) On their posting to other organisation or sub-offices located within the

limits of Army Unit/Formation.
(d) At the time he/she is placed under suspension; or
(e) At the time he/she proceeds on ex-India leave.
35
Note 1: Identity Passes in respect of individuals attached to
Units/Formations and those serving in the sub-offices of the Defence
Accounts Department located within the limits of any Army
Unit/Formation will be issued by the Army Unit/Formation concerned.
Note 2: Where an officer or staff, who was suspended, is subsequently

reinstated in service, a fresh Identity Pass may be issued.
2.9.3. Destruction of withdrawn Identity Passes
The withdrawn passes should be destroyed by burning under the

supervision of a Gazetted Officer and a certificate to that effect should also be
recorded in the register of Receipts/Issues.
2.9.4. Penalty for Loss/Mutilation/Late Renewal of Identity

Cards
(i) Loss of Identity Card Rs. 100/-
(ii) Mutilation Rs.50/-
(iii) Late renewal beyond one month Rs. 25/-
2.9.5. Issue of Identity Cards to DAD Pensioners
On receipt of requests from the Pensioners in prescribed forms, this wing

will issue the Identity Cards in the prescribed stationery to the Pensioners also.
36
2.10 Service Book and Leave accounts for Officers & Staff
The Service Books are maintained in the prescribed format under the
rules laid down in the F.R.S.R. Part I (General Rules) and other instructions
issued from time to time. The Service Books should be kept securely under
lock and key.
Service Book and leave accounts of all the officers and staff will be
maintained as under:
Sl. No. Level To be maintained by
1 SAG (CDA) level and below Respective PCDA/
CDA office
2 SAG and above level officers as well as the Establishment Wing
officers and staff serving in DAD HQrs of DAD HQrs
The Service Books should bear the personal number allotted to each
individual.
The Service Book of all officers will also be audited by the LAOs
responsible for audit of Service Books of non-gazetted staff.
On transfer of an officer or staff from the organisation of one
PCDA/CDA to another, the Service Book of the concerned officer or staff will
be forwarded to the new PCDA/CDA duly completed upto date and verified
in all respects.
Further, e-Service books will be maintained by all offices on e-office

platform which will be treated as legal tender for all purposes.
The service book of a Government Servant shall be maintained in

duplicate. First copy shall be retained and maintained by the Head of the
Office and the second copy should be given to the Government Servant for
safe custody as indicated below:-
(i) To the existing employees - within six months of the date on which
these rules became effective, if not already given.
(ii) To new appointees - within one month of the date of appointment.
37
In January each year, the Government servant shall handover his copy of
the Service Book to his office for updation. The office shall update and return
it to the Government Servant within thirty days of its receipt.
In case the Government servants’ copy is lost by the Government

Servant, it shall be replaced on payment of a sum of Rs. 500/-.
38
2.11. Alteration in Date of Birth entered in the Service Book
The CGDA in his capacity as the Head of the Department is competent
under Rule 287, GFR-2017 to authorise alteration in the dates of birth of non-
gazetted staff as originally recorded in the Service Books if a specific request is
made within 5 years of his entry in Government service and it is established
that a genuine bonafide clerical mistake has occurred/committed in recording
the date of birth in his Service Book.
39
2.12. LEAVE
Leave in respect of all the employees of DAD will be regulated in terms

of the provisions contained in the CCS (Leave) Rules 1972 and correlated
orders and instructions issued by the DoP&T from time to time.
2.12.1. General conditions of leave
(a) Leave cannot be claimed as a right and will not be granted unless
arrangements can be made for the work of the applicant during his/her
absence.
(b) Employee should not proceed on leave in anticipation of sanction.
(c) For extension of leave, advance application needs to be submitted before

expiry of leave, to enable the employee to join duty in case of refusal of
application.
(d) Failure to comply with instructions will render a member liable to be

treated as absent without leave.
The grant of leave to the CGDA requires the sanction of the Ministry of
Defence (Finance). For officers in the HAG+, HAG and officers in the Senior
Administrative Grade (other than those serving under Principal Controllers of
Defence Accounts and equivalent post), CGDA, or an officer to whom the
CGDA delegates this power, is the Leave Sanctioning Authority.
For SAG level officers serving under the Principal Controller of Defence
Accounts and equivalent, PCDA and equivalent are the Leave Sanctioning
Authorities.
Powers to grant leave to the IDAS Officers of the rank of Additional

CDA/Joint CDA/ equivalent and below including Probationary Officers, is
vested in the Principal Controller/Controller of Defence Accounts&
equivalent.
Principal Controllers/Controllers should also seek prior permission of

the CGDA whenever they leave their stations on vacation. However, they will
intimate to DAD HQrs whenever they leave their Headquarter on duty.
40
Copies of the Part II Office Orders issued on the subject showing the
date of arrival at and departure from each station will suffice for the purpose.
Such Office Orders should reach to CGDA ten days before the date on which
the Principal Controller/Controller proposes to leave his Headquarters.
The above Office Orders should invariably give a reference to the

preceding office order notifying the last tour program of the officer.
Leave addresses of officers of the Indian Defence Accounts Service

proceeding on leave should be intimated to the Leave Sanctioning Authority
just before the officer proceeds on leave.
Officers on leave ex-India should ascertain their posting order from the
DAD HQrs in sufficient time so as to permit time to send a suitable reply
through mail. In the absence of any fresh posting orders, officers of the Indian
Defence Accounts Service on leave in India will, after the expiry of their leave,
report for duty in the office from which they proceeded on leave
The sanction of the CGDA/ Government of India as the case may be

granting leave to the officers of the Indian Defence Accounts Service will be
communicated by the DAD HQrs to the respective Principal
Controllers/Controllers. On the authority of such communications, Principal
Controllers/Controllers will notify the leave in their Part II Office Orders in
the following form "Government of India/Controller General of Defence
Accounts, (as the case may be) have / has sanctioned...............days leave
from........to........to Shri/Smt./Kumari........It is also certified that the officer
would have, but for proceeding on leave continued to officiate in the post
during the period of leave".
2.12.2. Leave in respect of IFAs (HAG/SAG)
The leave of PIFAs/IFAs will be regularized by concerned Executive

Authority as under:-
i. Casual leave
ii. Earned Leave upto 15 days
41
iii. Leave on Medical Certificate upto 30 days
Leave beyond the limit prescribed above, would be forwarded

sufficiently in advance to the DAD HQrs for obtaining sanction of the
Competent Leave Sanctioning Authority.
PIFAs/IFAs (HAG/SAG) can themselves sanction leave in respect of

officers/staff working under their administrative control at par with powers
available with PCsDA/CsDA in respect of their officers/staff.
2.12.3. Sanction of leave to other Officers and Staff
Leave is sanctioned to other officers and Staff of the Department by the

Competent Authorities as per delegation of powers made to them.
The Principal Controllers/Controllers will also notify the leave in respect

of all the officers and staff serving under their organization/or as proforma
organization through Part II Office Orders and forward copies of the same to
all concerned.
42
2.12.4. Types of Leave
The different types of leave admissible to the Central Government.

employees have been briefly explained in the succeeding paras.
The detailed terms and conditions on admissibility of each kind of

leave, etc. are laid down in the CCS (Leave) Rules 1972.
43
2.12.4.1. Earned Leave
(a) 15 days of EL is credited in advance on 1st January and 1st July every
year.
(b) EL is credited @2 ½ days for each completed calendar month in respect

of the Government servant who is appointed/ retired/ resigned, etc. in
the respective half of the year rounded off to the nearest day.
(c) EL can be credited up to a maximum of 300+15 days.
(d) EL can be prefixed and suffixed with holidays.
(e) Holidays falling during the spell of EL are treated as EL.
44
2.12.4.2. Half Pay Leave
(a) 10 days of HPL is credited in advance on 1st January and 1st July every
year.
(b) HPL is credited @5/3 days for each completed calendar month in
respect of the Government servant who is appointed/ retired/ resigned,
etc. in the respective half of the year rounded off to the nearest day.
(c) HPL can be prefixed and suffixed with holidays.
(d) Holidays between the spell of HPL are treated as HPL.
(e) Half pay leave can be availed either with or without medical certificate
as per the conditions laid down in the CCS (Leave) Rules, 1972.
45
2.12.4.3. Commuted Leave
(a) Commuted Leave not exceeding half of the amount of Half Pay Leave
due can be taken on Medical Certificate issued by the prescribed
authority.
(b) Commuted leave may be taken upto a maximum of 90 days in entire

service for course of study in public interest.
(c) Commuted leave may be taken upto a maximum of 60 days by a female

Government servant in continuation of maternity leave.
46
2.12.4.4. Leave Not Due
(a) It may be granted to a permanent Government servant with no half pay

leave at credit. Temporary officials with minimum of one year’s service
and suffering from TB, Leprosy, Cancer or Mental illness may also be
granted Leave Not Due if the post from which the official proceeds on
leave is likely to last till his return.
(b) Leave Not Due is granted on medical certificate if the Leave Sanctioning
Authority is satisfied that there is a reasonable prospect of the
Government servant returning to duty on its expiry. However, in the
following circumstances, it may be granted without medical certificate:
(i) in continuation of maternity leave.
(ii) to a female Government servant with less than two surviving

children on adoption of a child less than a year old.
47
2.12.4.5. Extraordinary Leave (EOL)
EOL is granted to a Government employee:
(a) when no other leave is admissible;
(b) when other leave is admissible, but the Government servant applies
in writing for EOL.
Note: EOL cannot be availed concurrently during the notice period, when
going on voluntary retirement.
Limits on EOL:
1. No leave of any kind can be granted to a Government employee for a

continuous period exceeding five years. Subject to this limitation, any
amount of EOL may be sanctioned to a permanent Government
employee.
2. For temporary officials, the limit on any one occasion is
(a) All Officials: Upto 3 months with or without medical certificate.
(b) Officials with a minimum of one year continuous service: (i) Up to

6 months with medical certificate for common ailments. (ii) Up to
18 months with medical certificate for cancer, mental illness,
pulmonary tuberculosis or pleurisy of tubercular origin,
tuberculosis of any part of the body and leprosy.
(c) Officials with three or more years' continuous service: Upto 24

months, where the leave is required for the purpose of pursuing
studies certified to be in public interest.
(d) Officials belonging to Scheduled Castes/Scheduled Tribes: Heads

of Departments may grant leave exceeding three months for
attending the pre-examination training course at the centres
notified by the Government from time to time.
48
3. Two spells of extraordinary leave, intervened by any other kind of leave,
should be treated as one continuous spell for the purpose of applying
the maximum limit.
4. EOL may also be granted to regularize periods of absence without leave

retrospectively.
49
2.12.4.6. Maternity Leave
This leave is admissible to married/unmarried female employees during
(a) Pregnancy: 180 days. Admissible only to employees with less than two
surviving children.
(b) Miscarriage/abortion (induced or otherwise): Total of 45 days in the

entire service excluding any such leave taken prior to 16-6-1994.
Admissible irrespective of number of surviving children. Application
should be supported by a certificate from a Registered Medical
Practitioner/Government Hospital for Non-Gazetted Officers and from
AMA/Government Hospital for Gazetted Officers.
(c) In case of death of a child shortly after birth, the women employees may
be granted two months Maternity Leave for recovery after delivery of
the child.
50
2.12.4.7. Paternity Leave
Male Government employees with less than two surviving children are
eligible for this leave.
Duration of Leave
15 days during wife's confinement, i.e. up to 15 days before, or up to six

months from the date of delivery of the child or on valid adoption of a child
below the age of one year.
51
2.12.4.8. Leave to female Government employee on adoption of
child
This leave is granted to a female employee, with less than two surviving
children, on valid adoption of a child below the age of one year, for a period of
180 days immediately after the date of valid adoption.
52
2.12.4.9. Child Care Leave (CCL)
(a) Female Government servant and single male Government servant

may be granted Child Care Leave by an authority competent to grant leave for
a maximum period of seven hundred and thirty days during entire service for
taking care of two eldest surviving children, whether for rearing or for looking
after any of their needs, such as education, sickness and the like.
(b) Child Care Leave shall not be admissible if the child is of eighteen
years of age or older.
(c) During the period of Child Care Leave, a female Government

servant and a single male Government servant shall be paid one hundred
percent of the salary for the first three hundred and sixty five days, and at
eighty percent of the salary for the next three hundred and sixty five days.
Explanation—‘Single Male Government Servant’ means – an unmarried or

widower or divorcee Government servant.
(d) Child Care Leave shall not be debited against the leave account.
Child Care Leave may also be allowed for the third year as leave not due and
commuted leave up to 60 days (without production of medical certificate). It
may be combined with leave of the kind due and admissible.
(e) Conditions for grant of CCL
(i) In respect of disabled/ mentally challenged children, there is

no age limit subject to conditions and submission of
certificates.
(ii) Child Care Leave may not be granted for a period less than
five days at a time.
(iii) An employee on CCL may be permitted to leave

headquarters with the prior approval of appropriate
Competent Authority.
(iv) LTC may be availed while an employee is on CCL.
53
(v) An employee on CCL may proceed on foreign travel
provided clearances from appropriate Competent
Authorities are taken in advance.
(vi) It shall not ordinarily be granted during the probation period

except in case of certain extreme situations where the Leave
Sanctioning Authority is satisfied about the need of Child
Care Leave to the probationer, provided that the period for
which such leave is sanctioned is minimal
(vi) It shall not be granted for more than three spells in a

calendar year.
(vi) In case of a single female Government servant, the grant of

leave in three spells in a calendar year shall be extended to
six spells in a calendar year.
(vi) Intervening holidays will count as Child Care Leave as in the

case of Earned Leave.
(vii) The leave is to be treated like the Earned Leave and

sanctioned as such.
(viii) It requires prior sanction.
54
2.12.4.10. Casual Leave
(a) Casual Leave is granted for 8 days in a year subject to a limit of 5

days at any one time.
(b) The Casual Leave may be pre-fixed or suffixed to holidays
(c) Public holidays and weekly offs falling within a period of Casual
Leave will not be counted as part of the Casual Leave.
(d) It cannot be combined with the joining time availed by an

individual on transfer.
(e) Casual Leave can be granted for ½ day also.
55
2.12.4.11. SPECIAL CASUAL LEAVE
The power to grant Special Casual Leave is vested in the Head of

Department.
Principal Controllers/Controllers of Defence Accounts are competent to

grant Special Casual Leave to the DAD personnel serving in their respective
organisation. The detailed reasons and quantum of Special Casual Leave
admissible for them is provided in the CCS (Leave) Rules, 1972. Some of the
reasons are as follows:-
(a) Participation in sports events of national/ international

importance.
(b) 1/2 day for Blood donation
(c) Full day for Parliamentary/ Legislative elections.
56
2.12.4.12. Compensatory Leave
Applications for Compensatory Leave will be entertained only when

a member of the establishment has been required, under the orders of the
Officer in-Charge of the Section, to attend office on a Sunday, Saturday, or on
a day notified as a Gazetted holiday under the Negotiable Instruments Act
for work of a special or urgent nature provided further that the individual
concerned is not paid any over time allowance under the orders of the
Applications from those who attend the office, either of their own
accord or under orders to clear off arrears pertaining to their legitimate work,
will not be considered.
Note. Compensatory Leave may also be granted to an individual who is

required to work on a public holiday if desired by him in lieu of over time
pay.
Compensatory Leave will, however, not be given so as to cause evasion

of rules regarding:-
(i) Date of reckoning allowance;

(ii) Charge of office;
(iii) Return of duty;
or so as to extend the term of Earned Leave or other leave beyond the

time admissible by rule.
Note 1. Compensatory Leave should as a rule, be allowed within a month of

its becoming due. In exceptional circumstances this condition may be relaxed
with the approval of the Head of the Department where a sizeable number of
employees has to be put on work during holidays and it is difficult to grant
Compensatory Leave within one month, provided that not more than two
days Compensatory Leave is allowed to be availed of at a time.
57
Note 2. Compensatory leave may be prefixed or suffixed to regular leave or
Casual Leave subject to the conditions laid in the CCS (Leave) Rules, 1972 and
orders connected thereto issued from time to time
A register will be maintained by the Assistant Accounts Officer of each

section to record the attendance of Senior Auditors/Auditors/Clerks on such
holidays in respect of which Compensatory Leave is earned.
58
2.13. Distribution of Work in Sections
The work in each Section will be divided into a number of portions or

tasks corresponding to the number of Assistant Accounts Officers authorised
for the section.
The Assistant Accounts Officer of the Section is primarily responsible for

the equitable distribution of the work having regard to the capacity and ability
of the Senior Auditors/Auditors and Clerks in the Section.
The Assistant Accounts Officer will make this distribution with

concurrence of the AO/SAO/ACDA–in-charge of the Section.
59
2.14. Opening/ Closing of Offices
All proposals for opening, closing, up-gradation, down-gradation,

merger, shifting and renaming of DAD offices will be submitted to the DAD
HQrs for prior approval. The proposal must be accompanied with a Statement
of Case containing user’s demand/requirement duly recommended by the
PCDA/CDA. The proposal will be examined in consultation with the
concerned Wings/Sections in the DAD HQrs with respect to necessity angle
and availability of manpower for obtaining final decision and sanction of the
However, if the reorganisation does not involve any increase in the
establishment of Officers authorised for the Principal
Controllers/Controllers, prior approval of the Controller General of Defence
Accounts will not be necessary in such cases.
The decision will be conveyed to the PCDA/CDA concerned for further

necessary action.
60
2.15. Administrative and Proforma Controllers of
PIFAs/IFAs/CDA (RTCs)
The administrative and Proforma Controllers of IFA set-up is notified

Establishment Wing of DAD HQrs in consultation with IFA Wing. Similar
orders in respect of the various training institutes of the DAD are also issued
by the Establishment Wing.
61
2.16. Auditing Controllers
The Principal CDA (Pensions) Prayagraj is centrally discharging the role
as the Auditing Controller for the post audit of Defence Accounts
Department’s Pay Bills, TA Bills, Contingent bills, etc. w.e.f. 1 st April 1972.
However, the C.G.D.A. may at any point of time entrust this item of work to
any one or more of the PCsDA/CsDA in public interest.
The DAD Pay Bills, TA Bills, Contingent Bills of the office of the
Principal CDA (Pensions), Prayagraj, will, however, be post audited by the
office of the CDA, Patna.
62
2.17. HANDING/TAKING OVER REPORTS
At the time of change in incumbency in the posts of Clerks and
upwards upto the level of Group Officers/Deputy CDA in the DAD HQRs /
Principal Controllers /Controllers office and Sub-Offices, handing and
taking over reports will be prepared in the prescribed form given in
Annexure 2.17A.
The form may be modified or amplified by the DAD HQrs / Principal
Controllers/Controllers to suit local conditions and to provide for items of
work peculiar to the particular charges.
The distribution of Handing/Taking over Reports will be as follows:
1 Deputy 1 Copy-Office copy

CDA/ 1 Copy- Establishment/ Personnel Section of the Main
Office
Assistant
1 Copy-Relieving Officer
CDA
1 Copy-Relieved Officer
2 Senior 1 Copy-Office Copy
Accounts 1 Copy- Establishment/ Personnel Section of the Main
Officer / Office
1 Copy-Group Officer
Accounts
Officer
3 Assistant 1 Copy-Office Copy
Accounts 1 Copy-Senior Accounts Officer/ Accounts Officer
1 Copy-Group Officer
Officer
4 Senior 1 Copy-Office copy
Auditors/ 1 Copy-Assistant Accounts Officer
63
Auditors/ 1 Copy-Senior Accounts Officer/Accounts Officer
Clerks 1 Copy-Relieving Officer
The Handing/ Taking over Reports in respect of officers at item (1) and
(2) above will be put up to the PCDA/CDA/Additional CDA/Joint CDA
by the Establishment Wing of the Main Office for information.
Assistant Accounts Officer, Accounts Section attached to MES

formations, will, however, render transfer reports on IAF (CDA) 269 as
prescribed in Para 301 et. seq. of MES Accountants Manual.
64
ANNEXURE 2.17A
Handing/Taking Over Report
1. Name of the Office/Section Group:
2. Date of Handing/Taking Over (FN/AN)
I. General
3. Cash Book Cash in hand Cash in Bank

(a) Public Fund (b) Imprest (c)List of Cheque Pads/Cheque Books handed over
4. List of Dead Stock Articles under different categories.
5. (a) Establishment
(1) Posted Strength
(2) Authorised strength
(3) Strength demanded
(b) Disciplinary cases
(c) Liaison with Administrative Authorities.
(d) Details of progress of Expenditure against allotment to date in respect of
Loans/Advances, TA, Miscellaneous and Contingent expenditure of the DAD
Allotment Expenditure
6. List of important files

(a) Top Secret
(b) Secret
(c) Confidential, and
(d) Other Important files
7. Whether all the important Registers / Documents maintained have been brought up
to date. If not, specify the details.
65
II. Technical
8. State of Work
(a) List of Important / Special letters outstanding.

(b) List of Important cases initiated and pending decisions/ reply from higher/ other
authorities.
(c) Pre-audit bills / claims outstanding.
(d) Post-audit bills/claims outstanding.
(e) Total amount of demands outstanding more than;
(i) Six months (ii) one year
(f) Important objections /Notes, outstanding
(i) Internal Audit (ii)Test Audit (iii)Tour Notes.
(g) Arrears in audit / inspection (position regarding scheduling, pricing, adjustment of
DO Part II Orders, etc. should be indicated).
Note: Any special steps contemplated in this regard and proposed priorities, if any, with
reasons therefor should also be indicated.
9. Miscellaneous
Any other points of interest / information to be communicated to the Relieving
Officer.
HANDED OVER TAKEN OVER
(Signature of Officer relieved) (Signature of the Officer taking over)

(Name and Designation) (Name and Designation)
(in Block letters) (in Block letters)
Station
Note : Items not applicable should be scored through.
66
2.18. Regional Office Councils and related activities
The Central Civil Services (Recognition of Service Associations) Rules, 1993

lay down the norms for establishing an officially, recognized employees union or
staff associations in all Government establishments. These serve as the Joint
Consultative Machinery as they have representations from both official and staff
side. These associations are further affiliated to larger bodies like the Central
Government Employees Association.
The DAD also have(i) All India Defence Accounts Employees Welfare
Association (Kolkata and Pune Associations);and (ii) Defence Accounts
Department (Subordinate Accounts Service) Officers Association. These
associations have branch offices in the offices of all PCDA/CDA.
The SAO/AO/AAO and staff have their opportunity of democratically
electing representatives to the respective associations to represent their interest
and grievances.
The various issues/grievances are discussed between the frontline officer to
the HQrs (3rd level ROC) and National level (JCM) and the union representatives.
67
2.19. Scope of JCM
The Scheme caters for all the Central Govt. Civil Employees except Group A, B
employees and employees of Union Territories and Police Personnel.
The jurisdiction of the JCM Council includes matters relating to conditions of
service and work, welfare of employees and improvement of efficiency &
standard of work provided that;
1. In regard to recruitment, promotion and discipline, consultation will be
limited to matters of general principle; and
2. Individual cases will not be discussed.
The scheme provides for setting up of JCM councils at National Level,
Departmental (Ministry), Headquarters of the Department (DAD HQrs) and
Regional Office Council (PCDA/CDA).
Matters which are within the competence of DAD HQrs should not
generally be discussed at the meeting held at lower levels (office councils).
The subjects which are outside the competence of Heads of regions/offices
should not generally be brought up for discussion at that level, e.g. revision of
Pay & Allowances; Curtailment of prescribed duty hours; Change in regard to
principles governing promotion; Regulating seniority and departure from the
rules made by Government.
The various instructions regarding scope and functions, composition of
councils, etc. are issued by the Government of India/DAD HQrs from time to
time, which govern the activities related to the area.
68
2.20. Structure of councils/associations in DAD
2.20.1. Headquarters Council (III Level)
This Council is set up at the Headquarters of the Department and consists
of Members of both official and staff side. The grievances of various categories of
staff which are common will be considered at this level. The constitution at DAD
HQrs level is as under:
Chairman – CGDA
Official side Staff side
5 Members: Kolkata Association: 4
Senior Jt. CGDA (Personnel & Establishment) Pune Association : 4
Senior Dy. CGDA / Dy. CGDA
CVO
AO (Pers./Estt.) – Member Secy.
Special invitee – 2 to 3 in connection with any

particular items to be discussed at the meeting.
(Once in two months)
These council will deal regional/local problems

(Once in two months)
2.20.2. Regional Official Council (IV Level)

This Council is constituted at Regional Office Level viz. PCsDA/ CsDA
level. It consists of Members from official and staff side and will look after the
grievances of the particular region.
The distribution of seats in IV level Regional Office Council is made as per
the instructions contained in the CGDA, New Delhi important circular No.
AN/VI/17003/I/VII/Orders dated 2nd January, 2006, as amended from time to
time.
69
2.21 Membership scheme
The annual membership subscription is to be recovered by the DDOs
through check off system in the pay for the month of July, on the basis of the
consent note exercised by the members in April every year.
The Consent Form given in April will remain valid till altered/changed and
revision can be exercised only in April every year to be effective from July of that
year.
The deduction of subscription of not less than one rupee per month can also
be made from the pay bills on monthly basis.
70
2.22. Meeting of the Associations
The offices of the PCDA/CDA should take all necessary steps for
reconstitution of the ROC, wherever required, and to hold quarterly meetings of
the ROC, including DAD (SAS) Officers Association, as also to forward the
minutes of the meetings to the HQrs office on quarterly basis for perusal of the
The instructions issued by the Government of India and DAD HQrs in this
regard should be strictly followed for achieving the results of these joint exercises.
71
Process involved for holding the meetings with the associations
Seek approval for conduct of meeting and the convenient date

& time from the Competent Authority
Intimate the decision to the Associations and request to

forward agenda points by a fixed date
Intimate the Wings/Sections in office about convening of meeting

and seek status on decisions taken in last meeting held, if any
Forward the Agenda Points received from the Association(s) to the

Wings/Sections in office for examination and their comments
Meeting is held with the Associations, take note of the discussions and
directions of the Chairperson
Draft minutes of the meeting and submit for approval of the

Competent Authority
Circulate approved minutes to the associations and Wings/Sections in

office for further action
72
2.23. Resident Welfare Association in DAD Residential
Complexes
Over a period of time, the Defence Accounts Department has created many
residential complexes across the country to meet the accommodation needs of its
officers and staff. Considerable funds are also being spent on maintenance of
these residential complexes every year. To facilitate the living experience of
residents in the DAD residential complexes and to involve active participation of
the residents for conducting various welfare / cultural activities, the Resident
Welfare Associations in DAD Residential Complexes have been formed. The
detailed guidelines in this regard are as follows:
1. OBJECTIVES:
(a) To enhance the living experience of residents of the complex

(b) To foster a spirit of mutual help and goodwill among the inhabitants
of the colony in general, and the members of the Association in
particular, thereby, promoting communal harmony and national
integration.
(c) To secure the complex from any type of trespassing, to make efforts in
enhancing general amenities and cleanliness, afforestation, interaction
with authorities on any environmental aspects and for this purpose,
represent the interest of the residents before Appropriate Authorities.
(d)To undertake all such other lawful acts, deeds or things including
Sports and Cultural activities as are incidental or conducive to the
attainment of any or all of the above objects including the general
welfare of the employees and their families.
(e) To promote welfare and socio-economic activities.
(f) The Managing Committee will set development targets in the areas
defined under the objectives and may review on half-yearly basis to
assess the achievements of targets. This will be called the Annual
Development Plan of the Association.
73
2. MANAGING/ EXECUTIVE COMMITTEE:
(a) President - (One post)

(b) Vice- President – (One Post)
(c) Secretary - (One post)
(d)Treasurer - (One Post)
(e) Members - (Three Posts)
(i) Cultural and Sports Activities
(ii) Upkeep of maintenance, Security & environment
(iii) Lady Member - Representative of women & children
3. FORMATION OF MANAGING/ EXECUTIVE COMMITTEE:
(a) All office bearers and members of the Managing Committee will be elected
simultaneously.
(b) The office bearers and members of the Managing Committee shall hold the
office for two years. However, they shall continue until fresh elections are
held. (Note: Those persons who are due to retire within this period would
not be eligible to contest the election.)
(c) No office bearers i.e., President, Vice-President, Secretary and Treasurer
shall hold any of these offices for more than two terms continuously (Block
years) i.e., for a period of 4 (four) years. He/She may continue in the
Managing Committee in any other capacity.
(d)A member of the Managing Committee may, however, seek office after a
lapse of one term (two years) to any of the above mentioned FOUR posts.
(e) The committee shall meet once a month. A notice of 3 (three) days shall be
necessary to call an ordinary meeting whereas no notice shall be necessary
for an emergent meeting.
(f) Every member present and voting in the Managing Committee shall have
one vote, provided in the case of equal division of votes, the President shall
have casting vote.
(g) The committee shall be responsible for the day-to-day management of the
affairs of the Association and shall have the power to incur expenditure
within the funds available with the Association for conducting the activities
of the Association. It shall not go in debts or take loans for conducting its
activities.
74
(h) Area Welfare Officer {GO (Establishment /Personnel Section)} shall, at the
appropriate time, in consultation with the Managing Committee shall
appoint a Returning Officer from among the members of the Association for
holding the annual elections, provided that such member shall not himself
be taking part or contesting in the said elections (in case of absence of a
consensus between the Managing Committee and the Area Welfare Officer
about the appointment of a Returning Officer the matter will be referred to
the Estate Officer (PCDA/CDA) whose decision in this regard will be final).
No such person who held an executive post in the last Managing
Committee will be eligible to be appointed as Returning Officer.
(i) The Managing Committee shall have the right to accept or reject the
resignation(s) of office bearers/members. Area Welfare Officer shall make
appointment to fill vacancies caused either due to resignation or any other
reasons.
4. MEMBERSHIP:
(a) Every person allotted residential accommodation in the complex shall be

enrolled as a member of Association and shall have to pay SUBSCRIPTION
fee.
(b) The minimum subscription fee will be Rs. 50/- per month which can be
enhanced, if required, to suit the local conditions.
(c) Proper receipts will be issued to the members in token of having received
the subscription. The signatures of the members shall be obtained on the
office copy/ counterfoil of the receipt book in token of having received the
receipt.
(d)The Subscription should be paid monthly and promptly. A penalty @Rs.
5/- per month may be collected from members over and above the
subscription for late payment upto first six months and @Rs. 10/-per month
beyond thereafter.
(e) The list of members defaulting payment of subscription shall be intimated
to the Area Welfare Officer on quarterly-basis. The membership of all
members shall be reviewed by the Managing Committee within one month
of the beginning of the next official year. Membership can be revived only
after payment of all arrears on account of subscription or other dues
outstanding against the member.
75
(f) The Managing Committee in consultation and with consensus of members
may raise the funds or charge additional subscription from members for
any individual games, events, activity or function of the Association.
5. SOURCE OF INCOME:
The source of income of the Association shall be:-
(a) Subscriptions from the occupants of the residential complex.

(b) Grants received from any other source.
76
2.24. RIGHT TO INFORMATION CELL
Consequent upon implementation of RTI Act 2005, a cell called RTI Cell has
been set up in the DAD HQrs and all the offices of the PCsDA/ CsDA.
The objective of the RTI Call is to provide all assistance to the Central
Public Information Officer (CPIO)/First Appellate Authority (FAA) for
implementing the provisions of the RTI Act, 2005 in letters and spirit.
Functions of RTI Cell

The RTI Cell will perform the following functions:-
(i) To act as a single reference point to receive RTI applications, appeals, and
decisions of the Central Information Commission in respect of RTI cases
handled by the cell, physically as well as through RTI Online portal.
(ii) To maintain proper record of all applications, and appeals received by it
and allot a separate control number on receipt of every RTI application
along with prescribed fee under the Act.The applications or appeals
received physically shall also be uploaded on RTI Online Portal for
further processing.
(iii) To examine that correct fee (by correct mode), as prescribed in RTI Rules,
2012 or any other rule in force by order of the Appropriate Government,
has been received.
(iv) To take regular and timely action for nomination, maintenance of list and
updation of details on RTI Online Portal of Central Public Information
Officers (CPIO), Central Assistant Public Information Officers (CAPIO),
First Appellate Authorities (FAA) and Link Officers (nomination of
CPIO/CAPIO/FAA) during non-availability of nominated designates for
any reason) for the DAD HQrs/ other offices of the organization of the
PCsDA/CsDA.
(v) To segregate applications and appeals pertaining to life and liberty and
forward the same to the concerned CPIO without delay so that they can
be responded within the time frame specified in the Act.
(vi) To transfer in terms of Section 6(3) of the RTI Act, 2005, on its own
volition or in consultation with the concerned CPIO, the applications not
pertaining to the office of the Public Authority.
(vii) To monitor that the designated CAPIO/CPIO/FAA, who are responsible
for disposal of the requests/appeals in terms of the RTI Act, 2005, take
timely action on them. In case of any discrepancy, the matter shall be
77
submitted for information of the Head of the Public Authority (DAD
HQrs/PCDA/CDA).
(viii) To obtain, compile and render the requisite Reports and Returns.
(ix) To intimate the change in CPIO, CAPIO and First Appellate Authorities
to the DAD HQrs for updating details on RTI Portal.
(x) To monitor the disposal of the first appeals by the First Appellate
Authorities. In offices, where the RTI Cell has been assigned the
responsibility to deal with the appeals/requests, they should take
appropriate action for disposal within stipulated time-lines.
(xi) To correspond with the Nodal Officer in DAD HQrs for seeking
allotment of User ID’s for the nominated Central Public Information
Officers, Central Assistant Public Information Officers, First Appellate
Authorities for the Main Office and the sub-offices of the organization of
the PCsDA/CsDA.
(xii) To co-ordinate with all sections and sub-offices in the Main Office and
organisation of the DAD HQrs/PCDA/CDA for proactive/suo motu
disclosure on the web-site of the office in compliance with the Section 4 of
the RTI Act, 2005.
(xiii) To get the information under proactive/suo motu disclosure on the web-
site of the office in compliance with the Section 4 of the RTI Act, 2005
audited by the Third Party duly disclosing the name(s) of the Third Party
Auditors on the web-site.
(xiv) To conduct periodic Conferences / Seminars on RTI Act, 2005 to sensitize
familiarize and educate the concerned officials about provisions of the
Act.
The RTI Cell shall also discharge other duties and responsibilities, if any,
assigned to them for implementation of the RTI Act, 2005.
78
2.25. ALLOTMENT, OCCUPATION/VACATION OF DAD
RESIDENTIAL ACCOMMODATION
The allotment of DAD pool residential accommodations at various locations

in the country is governed by the provisions of the ‘Allotment of Defence
Accounts Department Pool Residential Accommodation Rules, 2019’ w.e.f. 17th
May, 2019.
The allotment of all DAD pool residential accommodation in the station
will be made by a duly constituted QCM.
A copy of the allotment letter and monthly occupation/vacation reports
will be rendered to the respective AAO BSOs/SAO/AO/AAO GEs doing
revenue work to regulate recovery of Licence Fee.
All cases of retention of Government accommodation will be decided by the
Estate Officer as per the extant orders and the recovery of damage rate of Licence
Fee, if any, will be intimated to the respective AAO BSOs/ SAO/AO/AAO GEs
doing revenue work for its prompt recovery.
The station-wise occupancy/ vacancy position of allotment of DAD pool
residential accommodation will be rendered on Half Yearly basis to the DAD
HQrs in the following format:
S. No. Information Required Type of Quarters Total Remarks

(I, II, III, IV.. and
so on)
1. No. of quarters
constructed at the
station
2. No. of quarters allotted
to DAD employees as
on 31st Dec/30th June
each year
79
S. Information Required Type of Quarters Total Remarks
No. (I, II, III, IV.. and
so on)
3. No. of quarters re-
appropriated with
purpose & authority
under which quarters re-
appropriated
4. No. of quarters lying
vacant as on 31st Dec/30th
June
5. No. of eligible applicants
(DAD employees) in
waiting list for allotment
6. Priority Date for
allotment of each type of
quarters
7. No. of quarters allotted to
other Central Govt.
employees vis-à-vis type
of quarters with name of
the Deptt. and authority
80
2.26. CARE, CUSTODY, REPAIR & MAINTENANCE OF DAD
BUILDINGS
2.26.1. General
Office and Residential accommodation have been constructed out of DAD
Works Budget at various stations. The care, custody, repair and maintenance of
these buildings are the responsibility of the MES vide Govt. of India, Min. of
Defence letter No. 170-15 (1)/78/AN/XVIII/864/US/D(W-I) dated 03-10-1980.
The procedure to be followed in this regard is enumerated in ibid letter.
While MES maintains the Register of Permanent Buildings, the
PCsDA/CsDA concerned should also maintain the Register of Permanent
Building and keep it posted up to date in liaison with the GE At the time of
taking over of the building by MES, the representative of the PCDA/CDA will be
associated with the preparation of inventory of the building including its fixtures.
A copy of the inventory made should be kept on record along with the Register of
Permanent Buildings, maintained by the PCDA/CDA.
Annual physical verification of the buildings including its fixtures and
fittings as per the inventory will be carried out by the PCDA/CDA. A certificate
that annual physical verification has been carried out should be kept on record
and annual certificate to this effect should be rendered to the DAD HQrs.
2.26.2. Provision of funds

Funds for the repairs/maintenance of the buildings including internal
Electric installation and road will be projected by the GE computed on the basis
of various scales laid down by the Government from time to time.
The PCsDA/CsDA should scrutinize the demands projected by the GE to
ensure that it covers their overall work requirements.
The allotment of funds is made to the concerned PCDA/CDA.
Depending upon the progress of work, the concerned PCDA/CDA will
release the funds to the Regional PCDA/CDA concerned for making the payment
through SAO/AO/AAO (GE).
81
The PCsDA/CsDA should decide the priorities about the
repair/maintenance work to be carried out by the MES in terms of Para 225 et.
seq. RMES (1986 Edition). A monthly watch over the expenditure out of the
maintenance grants should be kept to ensure that the repair/maintenance works
indicated by him to the GE have been carried out properly.
MES authorities should be asked to render monthly report on the
repaid/maintenance work undertaken during that month together with the
expenditure incurred thereon. The monthly progress report rendered to the DAD
HQrs should include the report on repairs/maintenance service also.
2.26.3. Types of Services

2.26.3.1. Repairs/Maintenance Services
The repairs/maintenance services comprise normally, petty repairs and
periodical services.
Petty repairs would cover, patch repair to cement plaster to walls in
addition to the other day-to-day maintenance of the Residential buildings based
on the complaint received from the occupants of the residences.
2.26.3.2. Periodical Services
Periodical Services cover internal and external lime washing (White or
tinted) distemper, Tarring and oiling and it should be carried out as per the
periodicity laid down in Table ‘G’ RMES (1986 Edition).
A register of Periodical Services Measurement Book (PSMB) should also be
maintained by the PCsDA/CsDA.
82
2.27. GRANT-IN-AID FOR WELFARE
A per capita grant-in-aid is sanctioned by the Government for the Welfare
of establishment.
The grant-in-aid is primarily intended to stimulate self-help and esprit-de-
corps and for the provision of amenities or of recreational or welfare facilities, but
does not cover within its scope any compassionate objects such as death benefits.
On receipts of the allotment, allocation will be made at the discretion of the
PCDA/CDA amongst the main office and sub-offices.
The Recreation Clubs, etc. for which sub-allotments have been made, will
claim the allotted amount on a Contingent Bill, duly supported by the relevant
vouchers, from this Wing. This Wing will maintain separate account for each
allotment and sub-allotment in order to keep allotment within limits.
The account for the entire expenditure out of the grant-in-aid will be
audited annually by the Local Audit Officer or by an officer appointed for the
purpose by the PCDA/CDA. The audit should be conducted to see inter-alia that:
(a) the amount of the allotment is spent on the objects for which it is
sanctioned;
(b) it is spent only on the basis of actual requirements; and
(c) the expenditure met out of this grant is supported by receipts and
vouchers.
83
2.28. APPLICATION FOR ADMISSION TO THE POSTAL LIFE
INSURANCE
On receipt of an application from a member of the establishment for
admission to the Postal Life Insurance, the application should be scrutinized to
ensure that:
(a) it is complete in all respects; and
(b) the applicant is eligible to subscribe to the Postal Life Insurance Fund
according to the Postal Life Insurance Rules and other Government orders
on the subject.
An extract of page of the Service Book containing personal details of the
individual applying for PLI will then be forwarded to the officer under whom the
individual is working for attestation by the Government servant in his presence.
After receipt back of the extract duly attested, the same will be attached to
the application form and the certificate on it will be completed under the
signature of the Group Officer or the Officer-in-Charge of the Establishment
Wing.
The application form accompanied by an Audit Certificate certifying the
eligibility of the applicant to subscribe to the Fund will then be forwarded to the
Medical Officer concerned, as indicated in Rule 24 & 25 of the PLI Rules, 2011, as
amended from time to time, for fixing a date for medical examination. The
individual will also be simultaneously informed that he should present himself
for medical examination.
On receipt of the intimation from the Postal Authorities for recovery of
subscription, the amount of the monthly subscription will, with effect from the
due date, be recovered from the pay of the individual through CPS.
The detailed instructions, as laid down in PLI Rules, 2011and as amended
from time to time, may be referred for purpose of this subscription.
84
2.29. LEAVE SALARY AND PENSION CONTRIBUTIONS IN
RESPECT OF PERSONS LENT TO AND FROM THE DEFENCE
ACCOUNTS DEPARTMENT
The general rules regarding the incidence of leave salary and pensionary
charges as notified by the Government from time to time are applicable mutatis
mutandis to individuals lent from and to the Defence Accounts Department.
The following special points should be borne in mind:-
(i) INDIVIDUALS ON FOREIGN SERVICE
Both leave salary and pension contributions are required to be paid either
by the employee himself or by the Borrowing Department in respect of personnel
on Deputation on Foreign Service terms. In case of employees covered under
National Pension System (NPS), the borrowing Department shall make 14%
contribution for pension and @4% contribution for gratuity to the NPS account of
the employee.
(ii) DEPUTATION TO STATE GOVERNMENTS OR OTHER

MINISTRY/DEPARTMENTS OF THE CENTRAL GOVERNMENT
The liability for pension including gratuity will be borne in full by the
Central/State Government to which the Government servant permanently
belongs at the time of retirement except in respect of All India Service Officers
(retired as well as retiring, both from the State and Central Government), in
whose case Government of India has taken over the entire liability of Pension
including gratuity with effect from 01.04.2008.
The rates of leave salary and pension contributions where recoverable in

the above cases are prescribed by the Government from time to time read with FR
116 & 117 as amended from time to time.
The leave salary contribution will be calculated at the appropriate rate on
the total period of service rendered in the Borrowing Department less any period
of leave granted while so employed and will be based on the actual pay drawn
85
during that period. The rates in this regard are notified by the Government of
India (DoP&T) from time to time.
Contribution for leave salary and pension in respect of individuals who are
on Foreign service are, however, recoverable from the Foreign employers every
month in accordance with SR 307 and other instructions in this context.
As regards the leave salary paid for the period of leave taken by the
deputationist, it is a charge against the Defence Accounts Department and
original debits on the account will be passed on by the Borrowing Department.
For the purpose of watching adjustment/recovery of leave salary and
pension/fund contributions, a register in IAF (CDA)-164 will be maintained
wherein the full particulars of deputationists will be noted as soon as the orders
notifying the deputation are received.
The amount of leave salary and pension contribution debited against /
recovered from the borrowing Body & Corporation, etc. together with the
voucher number of the punching media, etc. /number and date of the Treasury
Receipt, will be entered in this register.
An annual statement (in duplicate) showing the Defence Accounts
Departments staff on deputation to other departments (including Ministry of
Defence (Finance)) as on the 1st July of each year will be rendered by the
PCDA/CDA concerned to his "Auditing PCDA/CDA" in the prescribed
proforma (as in Annexures ‘2.29A1‘ and ‘2.29A2‘)so as to reach him by 10th July of
each year.
A certificate as to whether or not leave salary and pension contribution are
recovered in all cases, where necessary from the Borrowing Department, in
accordance with the rules, should also be furnished in the statement.
The "Auditing PCDA/CDA" will verify whether the recoveries of leave
salary and pension contributions are being properly effected in all cases where
such recoveries are to be effected and whether there is any delay in such recovery.
To enable the "Auditing PCDA/CDA" to carry out this verification it will be

necessary to indicate in the remarks column of the statement the rate at which
recoveries are being effected in respect of each individual and the period up to
which recoveries have been effected on the date of the submission of the return.
86
Cases where recoveries are not effected or where incorrect recoveries are
being effected will be included by the "Auditing PCDA/CDA" in his Objection
Statement against the PCDA/CDA concerned and their final settlement will be
watched by him in the usual manner. After taking necessary action as above, one
copy of the statement together with his remarks, if any, will be forwarded by the
"Auditing PCDA/CDA" to the DAD HQrs so as to reach there by the 10 th of
August each year.
87
1
Serial No.
2
Name
3
Serial No. in the roster
4
Department and office to
which deputed
1st of _____________ 20….
5
Date from which
proceeded on deputation
(date struck off)
6
No. and date of office
88
order notifying the
deputation
7
PROFORMA I
Post held in the

Borrowing Department
8
Pay level in Pay Matrix
and other extra
allowances during
deputation
9
Remarks
Accounts Officers (AAOs) who are on deputation to other departments as on the
Statement showing the particulars of the Defence Accounts Department Assistant
Annexure ‘2.29A1‘
1
Serial No.
2
Name
3
Account No.
4
Department and office to
which deputed
5
Date from which
proceeded on deputation
(date struck off)
as on the 1st of _____________ 20…….
6
No. and date of office
89
order notifying the
deputation
7
Post held in the
PROFORMA II
Borrowing Department
8
Pay level in Pay Matrix
and other extra
allowances during
deputation
9
Remarks
Statement showing the particulars of the Defence Accounts Department staff
(Senior Auditors/Auditors/Clerks) who are on deputation to other departments
Annexure ‘2.29A2‘
2.30. Drawal and disbursement of Personal Computer Advance
2.20.1. General
All Government Employees are eligible for grant of Personal Computer
Advance of Rs 50,000/- or actual price of the Personal Computer, whichever is
lower, to be sanctioned by Department of Central Government/ Administration/
Head of the Department.
2.30.2. Conditions for grant of Personal Computer Advance
(i) An application for the grant of Advance for the purchase of Personal
Computer shall be made in Form VI of the Compendium of Advances
for Government Servants, 2005.
(ii) A second or subsequent advance for purchase of a Personal Computer
cannot be granted before the expiry of three (3) years from the date of
drawal of the earlier advance.
(iii) May be allowed maximum five times during the entire service.
(iv) The advance cannot be used for payment of customs duty.
(v) Personal Computer purchased should be mortgaged to the Government.
The make, model and number of the Personal Computer should be
entered in the Form IV of the Compendium of Advances for
Government Servants, 2005.
(vi) Recovery of advance (principal) will be done in maximum 150 monthly
installments.
(vii) Interest is charged at the rates prescribed by the Government from time
to time.
(viii) Total recoveries on account of all advances, including Personal
Computer Advance, taken by a Government Servant shall not exceed
50% of the total emoluments.
2.30.3. Allotment of funds

The PCsDA/CsDA prepare estimates in respect of their requirements on
account of the Personal Computer advance and submit the same to the DAD
HQrs by the prescribed date.
The allotment is distributed by the DAD HQrs among the various
PCsDA/CsDA who will sanction the advances within the limits of the funds
90
allotted to them. Any unexpended balance of the allotment is reported by the
PCsDA/CsDA to the DAD HQrs in February of each year.
The general rules regulating the grant of advance for the purchase of
Personal Computer are contained in Rule 21(5) of Compendium of Rules on
Advances to Government Servants, 2005.
91
2.31. Mode of recovery and accounting of advances already
disbursed
2.31.1. MOTOR CARS
(a) The amount of advance granted to a Government servant for the

purchase of Motor Car, shall be recovered from him in such number of
equal monthly installments as he may have elected, however, not
exceeding 200 in any case.
(b) The Government servant may at his option repay more than one
installment in a month.
(c) The authority sanctioning an advance may, however, permit recovery to
be made in a smaller number of installments if the Government servant
receiving the advance so desires.
(d) Simple interest at the rate fixed by the Government for the purpose will
be calculated on the balance outstanding on the last day of each month
and the amount of interest calculated in this manner will be recovered in
one or more installments.
(e) The amount of installment for recovery of interest should normally not
be appreciably greater than the installments by which the principal was
recovered.
(f) The recovery of interest will commence from the month following that in
which the repayment of the principal has been completed.
Note: The amount of the advance to be recovered monthly should be fixed in whole rupees,
except in the case of the last installment when the remaining balance including any
fraction of a rupee should be recovered.
Prior permission of the Competent Authority is necessary to the sale of car

purchased with the aid of an advance which, with interest accrued has not been
fully repaid.
92
2.31.2. MOTOR CYCLES
The amount of advance granted to a Government servant for the purchase
of Motor Cycle, shall be recovered from him in such number of equal monthly
installments as he may have elected, however, not exceeding 70 in any case.
93
2.32. Mortgage Bonds
The mortgage bonds should be kept in the safe custody of the PCDA/CDA
sanctioning the advance.
The mortgage bonds and insurance policies, wherever required, shall be
obtained by the concerned Section of the Establishment Wing and forwarded to
the Accounts Section of the office of the PCDA/CDA for recording in the
Mortgage Bond Register (IAFA-505) and safe custody. These mortgage bonds
shall be uploaded on the system.
When the advance has been fully repaid, the bond should be returned to
the Government Servant concerned, duly cancelled, after obtaining a certificate
from the "Auditing PCDA/CDA" confirming complete repayment of the advance
and interest.
94
2.33. HOUSE BUILDING ADVANCES
The following categories of personnel are eligible for House Building
Advances:-
(i) All permanent Government employees.
(ii) All other employees with at least 5 years of continuous service, provided
they do not hold permanent appointment under a State Government and
the Sanctioning Authority is satisfied about their likely retention in
service till the house is built and mortgaged.
(iii) Members of All India Services deputed for service under the Central
Government/Company/Association/Body of Individuals whether
incorporated or not, which is wholly or substantially owned or
controlled by the Central Government or an International Organization,
and autonomous body not controlled by Government or Private Body.
(iv) Employees of Union Territories and North East Frontier Agency.
(v) Staff/ Artistes of the All India Radio who fulfill the condition prescribed
at (ii) above and have been appointed in long term contracts extending
to the age as per extant rules.
(vi) Central Government Employees governed by ‘The Payment of Wages
Act, 1936’.
(vii) Central Government Employees on deputation to another Department or
on Foreign Service. Such cases to be processed by the Head of the Office
of the Parent Department.
(viii) Extant rules for eligibility conditions of Ex-servicemen and of Central
Government Employees under suspension remains unchanged.
Application on the prescribed proforma for advance from those eligible,
will be submitted to the DAD HQrs through the office of the concerned
PCDA/CDA.
In cases where both the spouses are Central Government employees and
both are eligible for grant of House Building Advance, the advance will be
admissible to both of them jointly/ separately.
The detailed rules regarding grant of such advances are contained in the
House Building Advance Rules, 2017 issued by the Ministry of Housing & Urban
Affairs, New Delhi.
95
2.34. WITHDRAWALS FROM GENERAL PROVIDENT FUND
2.34.1. WITHDRAWALS
Applications for final withdrawals from General Provident Fund,
permissible under orders issued from time to time (e.g., to meet the cost of higher
education, for house building purposes, marriage expenses, etc.), will be received
and dealt with by the Establishment Wing under the general principles
enunciated in the Rule 15 and 16 of the GPF (Central Services) Rules, 1960, as
amended from time to time.
2.34.2. ADVANCES
Applications for advances from the General Provident Fund, permissible
under orders issued from time to time, will be received and dealt with by the
Establishment Wing under the general principles enunciated in the Rule 12 of
GPF (Central Services) Rules, 1960, as amended from time to time.
The applications in respect of above should be made in the prescribed form
duly supported by the relevant certificates and other required documents.
It will be verified from the latest Annual Statement of Accounts (CCO-9)
submitted in support of the application that the amount applied for is at the
credit of the subscriber. If an advance is already outstanding against a subscriber,
the facts will be verified from the records in possession of the office and the exact
balance standing to the credit of the subscriber will be worked out before
payment of the temporary advance is made. The number of installments in which
it should be recovered is also to be clearly indicated.
Doubtful cases will be referred to the office of the CDA (Funds), Meerut for
further information before payments are authorized.
The amount of advance sanctioned, and other particulars will be noted in a
Demand Register for watching recovery thereof. The advances paid during a
calendar month are required to be intimated to the office of the CDA (Funds),
Meerut through Project NIDHI, for posting in the respective ledger accounts of
individuals concerned.
Note 1: Authorities competent to sanction advances from the GPF are indicated in Fifth
Schedule of the General Provident Fund (Central Services) Rules, 1960.
96
Note 2: When an advance is sanctioned under sub-rule (2) of Rule 12 of the General
Provident Fund (Central Services) Rules, 1960 before repayment of last installments of
any previous advance is completed, the balance of any previous advance not recovered
shall be added to the advance so sanctioned and the installments for recovery shall be fixed
with reference to the consolidated advance.
The various instructions issued by the Government from time to time for
liberalization of provisions for drawal of withdrawal/advances from the General
Provident Fund by the subscribers should also be kept in view when sanctioning
the same.
The manner of recovery of advance sanctioned and action to be taken on
wrongful utilization of the advance are to be followed as enunciated in Rules 13
and 14 of the General Provident Fund (Central Services) Rules, 1960, as amended
from time to time.
2.34.3. Conversion of an advance into a withdrawal

The written requests of a subscriber for conversion of the advance drawn
under Rule 12 of the General Provident Fund Central Services) Rules, 1960 for
any purposes specified in sub-rule (1) of Rule 15 of the ibid rules, as amended
from time to time, shall be dealt with in terms of the provisions contained in the
Rule 16-A of the ibid rules.
97
2.35. Permanent Advance or Imprest
The amount of the permanent advance or Imprest in respect of the office of
a PCDA/CDA is fixed by the DAD HQrs to whom applications should be made
for reduction or increase, if necessity arises. The permanent advance sanctioned
by the DAD HQrs for the office of a PCDA/CDA is exclusive of the amount of
permanent advance required by their sub-offices.
In the case of Main Office, the cash balance of the permanent advance will
be in the custody of the cashier, who will be responsible for it. The cash balance
should be verified whenever a transfer of the PCDA/CDA or the Officer
nominated for the purpose. The officer detailed by the PCDA/CDA for carrying
out surprise cash check, under Para 2.38 of this manual, will check these balances
also. The above procedure for the custody, verification and check of the cash
balance will apply mutatis mutandis to the sub-offices of the organization of the
PCDA/CDA also.
The items of office contingent expenditure which can be paid out of the
permanent advance are laid down in the clauses (i) to (xii) of Para 2.36.1.
98
2.36. Office Contingent Expenditure
2.36.1. General
The officer incurring the expenditure shall exercise the same vigilance in
respect of contingent expenses as a person of ordinary prudence may be expected
to exercise in spending his own money.
He is responsible for seeing that the rules regarding the preparation of bills
are observed and ensure that:
(i) the money is either required for immediate disbursement or has already
been paid from the permanent advance
(ii) the expenditure is within the available appropriation;
(iii) all steps have been taken with a view to obtaining additional
appropriation, if the original appropriation has either been exceeded or
is likely to be exceeded.
(iv) the items of expenditure included in contingent bill are of obvious
necessity and are at fair and reasonable rates;
(v) the previous sanction for any item requiring it is attached;
(vi) the requisite vouchers are all attached and are in order; and,
(vii) the calculations are correct.
2.36.2. Maintenance of records of contingent expenditure
transactions
A register will be maintained on IAFA 481 in which all charges on account
of Office Contingent Expenditure will be recorded under each head of
expenditure, for which a separate allotment of funds has been made by the DAD
HQrs. Each entry in the register will be initialed by the Cashier or by the
concerned task holder and by the Officer-in-Charge of the concerned Section.
In order to watch the progress of expenditure under each head as compared
with the appropriation, a progressive total of all columns will be made monthly,
immediately after the monthly total, so as to include all payments under each
head and also charges adjusted by book transfer from the commencement of the
year up to the end of the last expired month.
The monthly totals will be agreed with the compilation and any
discrepancies will be brought to the notice of the Officer-in-Charge of the
concerned Section.
99
2.36.3. Nature of the contingent expenditure charges
The nature of the charges to be met from the allotment for contingencies is
given in Rule 98 to Government of India (Receipt & Payment) Rules, 1983, as
amended from time to time. Certain common types of contingent expenditure are
indicated below:-
(i) Cost of articles purchased locally, such as dusters, candles, matches,
phenyl, etc.
(ii) Conveyance charges for encashing cheques, casual labour outsourced
for shifting records, forms, stationery, etc.
(iii) Postal charges on covers insufficiently stamped.
(iv) Cost of books and periodicals.
(v) Regulating charges of office clocks.
(vi) Telephone and internet charges.
(vii) Charges on account of binding of records.
(viii) Charges on account of purchase of or repairs, other than petty repairs,
to office furniture and furnishings.
(ix) Charges on account of hot and cold weather establishment, such as
pay of waterman for coolers, cost of water pots, tumblers, signees, etc.
(x) Cost of liveries for Multi-Tasking Staff.
(xi) Cost of service labels.
(xii) Cost of fire extinguishers, fire buckets and other fire-fighting
equipment.
Before contingent expenditure is incurred, sanction of the Competent
Financial Authority (CFA) must be obtained.
The bills relating to Contingent Register will also be processed by the Seller
Payment Wing as per the laid down procedure.
NOTE: When the work pertaining to binding of records, repairs to Office Furniture and
recaning of chairs, etc. is done on contract basis, regular contract agreements should be
drawn up. Original copies of such agreement will be kept under lock and key in the
personal custody of the Officer-in-Charge of the concerned Section.
100
2.37. CUSTODY, DISBURSEMENT AND ACCOUNTING OF CASH
The PCDA/CDA is especially responsible for seeing that there is adequate

control over the section of his office which handles cash. The fact that the Cashier
(or other subordinate who handles cash) has executed a bond does not reduce his
special responsibility for ensuring that an effective system of control over the
custody, disbursement and accounting of cash exists and functions.
There should be continuous review of the arrangements for the:
(a) expeditious disbursement of money;
(b) custody thereof; and
(c) for the prompt and correct disposal of undisbursed balances and of
sums otherwise payable into the bank.
(d) adequate reconciliation, preferably without previous notice, of cash
balance with the accounts outstanding against the custodian of the
balances.
The PCDA/CDA should at irregular intervals satisfy himself that the
system of supervision as prescribed in authorized Codes or special orders is
observed properly and should remedy speedily the defects noticed, if any.
Similarly in the case of outstation offices, the Local Audit Officer or the
Head of the Office will ensure that an effective system of control exists over the
custody, disbursement and accounting of cash in his office and that the system of
supervision and safeguards as prescribed in regulations, authorized Codes or
special orders are being properly observed.
Money belonging to non-public funds, if any, should under no
circumstances be mixed up with office cash or kept in the same safe.
All the payments should preferably be made through SBI CMP/SBI FAST
Plus for direct credit into their bank accounts.
101
2.38. CASH BOOK
A Cash Book will be maintained on IAFA-125 by the Cashier under the
supervision of the DCDA/ ACDA (Establishment/Personnel) or, if no such
officer is functioning, the Officer-in-Charge of the Establishment/Personnel
Section. All payments made in favour of the PCDA/CDA and all payments made
out of the cash obtained by drawal of the amount will be accounted for in the
Cash Book. Payment must be supported by the acquittances of the payees and
other connected vouchers, if any.
All entries in the Cash Book and the Register of Acknowledgements and all
Acquittance Rolls will be initialed by the Officer-in-Charge,
Establishment/Personnel Section. The Cash Book will be closed monthly and
balanced, and submitted to the DCDA/ACDA (Establishment/Personnel) or the
Officer-in-Charge of the Establishment/Personnel Section, as the case may be.
In April each year, the Cash Book to the extent of one month's account, to
be selected by the PCDA/CDA, will be audited by an officer of the IDAS
specially detailed by him for the purpose.
The PCDA/CDA will also depute, at irregular intervals (not more than 03
times in a financial year), an officer of the IDAS to conduct surprise checks of the
actual cash in hand and as shown in the Cash Book. The officer will be selected by
the PCDA/CDA himself and under no circumstances will the date and time of
the check be made known to anyone except the officer selected to exercise the
check.
The results of the surprise check will be recorded in a Manuscript Register
which will be kept in the safe custody of the PCDA/CDA personally.
Any discrepancies found and irregularities discovered in the accounting of
Government moneys will be immediately brought to the personal notice of the
PCDA/CDA. If the PCDA/CDA is dissatisfied with the justification/explanation
of irregularities, he will institute such further investigations as may be considered
necessary and will also simultaneously furnish a detailed report to the DAD
HQrs.
102
2.39 REGISTER OF CASH RECEIVED
The register is maintained on IAFA-616. When a cheque, draft, Indian
Postal Order (RTI fee) or cash is received for credit to the Government, the
relevant columns in the register will be filled in by the Cashier who will note the
serial number of IAFA-616, both on covering memo and cheque / Demand Draft,
etc. and submit the register to the Officer-in-Charge of the
Establishment/Personnel Section. Then, the Cashier or the Assistant Cashier,
after linking the Serial Number of the register in IAFA-616 (wherein the cheque/
Demand Draft, etc. has been entered) on both of cheques/ Demand Draft and
forwarding memo / covering memo, will prepare the e-MRO.
Simultaneously, while handing over the above memo to the concerned
group of the Audit Section through the register, deposit the cheques/ Demand
Draft, etc. into the Bank immediately and hand over the original MRO (indicated
with 17 digits Military Index Number (MIN))/Bank Challan for e-MRO as
receipted by the Bank to the concerned group of the Audit Section after obtaining
the initials in the above register.
On receipt of the receipted MRO/Treasury Receipt/Bank Challan for e-
MRO, the concerned group of the Audit Section will immediately adjust it. The
Cashier/ Assistant Cashier while preparing the MRO/e-MRO will ensure that
full details of receipt money and name of the PCDA/CDA by whom the credit is
adjustable are clearly filled in bold capital letters on the MRO/e-MRO for easy
location of Duplicate MRO/Bank Challan received in the Account Wing with
Credit Scroll subsequently.
Note: The Military Index Number (MIN)/Bank Challan Number should be noted in the
Cash Register before forwarding to the section concerned / PCDA/CDA for adjustment.
103
2.40. Non-Statutory Departmental Canteens
This Wing, as per practice in vogue, discharges the activities relating to

management and running of the Non-Statutory Departmental Canteens in the
offices of the PCDA/CDA.
It also deals with activities relating to conduct of meetings of the nominated

Board of Officers for maintaining affairs of these canteens including pricing of
items, augmentation of facilities, deciding on prices of various food articles for
the benefit of the officers and staff of the Defence Accounts Department, etc.
This Wing is also mandated to take all measures to maintain healthy,

hygienic and safe food items and practices in Non-statutory Departmental
Canteens functioning in offices of the PCDA/CDA, as per instructions issued
from time to time.
104
2.41. Unit Run Canteen (URC)
Unit Run Canteens (normally called as CSD Canteens) have been

established at various stations for meeting the demand of officers and staff of
DAD including retired employees.
The establishment of new URC is initiated with the help of local army
formations based on strength of a particular office/station.
The URC runs under the guidance of the patron and its business is
administered by a Managing Committee through approved Bye-Laws clearly
bringing out the duties and responsibilities of nominated members to run the
day-to-day affairs of the URC.
The monthly/quarterly stock taking of the CSD items may be ensured. The
financial accounts of the CSD should be closed every year and profit utilized as
per decision of Managing Committee/Patron. The Cash Book, Bank
Reconciliation Statement, etc. should be made at regular interval and losses, if
any, may also be accounted for.
Sale of packing material may also be accounted for and credited into the
URC account.
105
2.42. Defence Accounts Sports Control Board (DASCB)
To promote sports and foster sportsmanship and camaraderie amongst the

officials of the DAD fraternity, Defence Accounts Sports Control Board was
established at DAD HQrs in May 1996 with the approval of Ministry of Defence
(Finance). An initial grant of Rs. 5.00 Lakhs and annual grant of Rs. 3.00 Lakhs,
which has now been increased to Rs. 12.00 Lakhs, has been authorised.
The CGDA is the ex-officio chairperson of the DASCB with Additional

CGDA as Vice-Chairperson. Five Zonal members from Western, Northern,
Eastern, Southern and Central zone are nominated from time to time to represent
their views.
The DASCB is affiliated to the following associations:
i) All India Carrom Federation
ii) The Table Tennis Federation of India
iii) Badminton Association of India
iv) All India Chess Federation
Various All India level tournaments in the field of Cricket, Carrom, Table
Tennis, Badminton, Chess, Athletics, Bridge, Trekking, Volleyball and Basketball
are organized by the DASCB.
106
2.43. Defence Accounts Recreation Club (DARC)
2.43.1. General
Defence Accounts Recreation Club has been setup in DAD HQrs and offices
of the PCsDA/CsDA for the welfare of Officers and Staff of the respective offices.
2.43.2. Broad functions of the club shall be:-
• To provide recreational facilities to its members;

• To organise cultural or recreational activities;
• To organise sports meets/tournaments, etc.;
• To provide facilities for indoor and outdoor games;
• To maintain a library and a reading room for the members; and
• To undertake such other recreational or welfare activities as may be
decided upon by the Executive Committee from time to time.
The correspondence related to the DARC is done by the designated Section

of the Establishment Wing in order to keep a watch on the functions performed
by the DARC.
The Head of the Office shall be the Patron of the Club and the Club shall
function under his overall guidance and directions.
2.43.3. Constitution of the Executive Committee

For conducting the day-to-day activities of the club, an Executive
Committee should be constituted which generally includes following Office
Bearers with Group Officer (Establishment/Personnel) as its ex-officio President:
• General Secretary
• Sports Secretary
• Library Secretary
• Cultural Secretary
• Treasurer
107
2.43.4. Functions of the Executive Members
President
The club shall function under the directions of the President and activities
of the club shall be conducted generally with his approval. He shall preside over
the meetings of the Executive Committee and shall have a casting vote.
General Secretary
He will be overall in charge of the day-to-day activities of the club and shall
be answerable to the President for all the actions of various office bearers and
Executive Committee members of the club.
He shall call meeting of the Executive Committee periodically or as and
when required as directed by the President, and keep a proper record of the
business transacted in such meeting in the Minute Book, which shall bear the full
signature of the Secretary and the President on each proceedings.
Sports Secretary
They shall be responsible for conducting activities in their respective fields
as decided by the Executive Committee.
Library Secretary
He shall be responsible for the maintenance of the library and the reading
room of the Club.
He shall maintain catalogue of Books, Stock Register of Books and
Newspapers and periodicals, etc.
Cultural Secretary
He shall be responsible for proposing and organizing cultural activities on
various events of importance and as decided by the Executive Committee.
Treasurer
The Treasurer of the Club shall maintain a proper CashBook which shall
include all items of cost and expenditure.
108
2.43.5. Term of the Executive Committee
The term of the Executive Committee shall ordinarily be one year but it
would continue to function as such till the new Executive Committee assumes
office.
109
2.44. PRESERVATION OF RECORDS
It is of the utmost importance that records which are sent to the Record
Room after they have ceased to be in active use are preserved with the utmost
care. The following important points should be kept in view.
(i) The room should not be damp as dampness cause attacks by insects and
vermins.
(ii) The room should have free circulation of air but should be as free from dust
as possible. Stagnant air is conducive to the growth of mould whereas particles of
dust form good nuclei for their growth and cut through paper fibres.
(iii) The floor and walls should preferably be of concrete without any crevices,
since these form passages and breeding spots for insects.
(iv) The stored material should be protected from direct sunlight. Prolonged
exposure to sunlight makes paper brittle.
(v) The window panes should preferably be of yellow or green coloured glass.
If coloured glass is not easily available, the window panes should be covered
with similarly coloured curtains or paper.
(vi) Adequate amount of naphthalene should be evenly distributed in the

shelves. If the record room smells of naphthalene, there will be little danger of
insects like bookworms, silverfish, cockroaches, etc.
(vii) The bundles should be dusted once a day since dust cuts through paper
fibres and forms nuclei for condensation leading to mildew, etc. Apart from
routine daily dusting, there should be special cleaning at least twice a year when
the bundles should be brought down on the floor, the shelves thoroughly cleaned
with wet rag and the bundles carefully dusted and replaced on the shelves.
(viii) Eatables should be scrupulously avoided within the room as they

invariably attract vermins.
(ix) Smoking should be strictly prohibited in the record room and any other
type of open fire should also be forbidden. No chemicals should be kept in the
record room.
110
(x) Necessary fire-fighting equipment, preferably of the gas type should
always be at hand.
111
2.45. Disposal of Time Barred Records
(i) The periods for which the various kinds of records and old editions of
books of regulations are to be kept are laid down in Appendix 2.45.A1 to
A2.45.A5.
(ii) The time expired records and the records which are not required for any
court case or otherwise will be disposed off as under:-
(a) Secret and Confidential Record and time expired paid cheques-These will
invariably be destroyed by burning in the presence of a gazetted officer.
(b) Other Records-Other Records will be sold either by open tender through
advertisement or through local dealers of old papers, by accepting the highest
rates quoted.
Note: Such of the unclassified records which are likely to reveal information
involving security should be torn into small pieces before they are sold.
112
ANNEXURE 2.45.A1
(Referred to in Para 2.45)
Statement showing the periods on the expiry of which various classes of record
may be destroyed
Sl. Description of Records Periods of Retention Remarks

No.
1 2 3 4
1. Abstract.
(1) Abstract of material (N) 5 years
(2) Miscellaneous abstract (N) 5 years
(3) Abstract of receipts & 2 years

charges (N)
(4) Abstract of cutter shop 2 years

leather (AF)
(5) Abstract of demand and 2 years

return notes (Fy.)
(6) Abstract of foundry cost 2 years

Statements (Fy.)
(7) Abstract of labour 2 years

including H form 9 (Fy.)
(8) Abstract of receipt & issues 2 years

of components (Fy.)
(9) Abstract Material including 2 years

H Form 10 (Fy.)
(10) Abstract overhead (Fy.) 2 years
(11) Abstract T.V. (Fy.) 2 years
113
No.
1 2 3 4
2. Accounts.
(1) Accounts, camp, 5 years

miscellaneous
(2) Accounts, capital and Forever As financial reviews

revenue (financial review) are not prepared at
present the 3 years
available copies
should be retained as
permanent record
(3) Accounts, cash military 3 years

farms
(4) Accounts, civil and military, 5 years

central adjusting (inward and
outward)
(5) Account, current, London 5 years

(inward)
(6) Account, current, London 5 years

(outward)
(7) Account, military treasure 5 years

chest
(8) Accounts, priced, (all kinds) 5 years

with receipt and issue vouchers
(9) Accounts, priced with 5 years

schedules of depots and
manufacturing establishments
(10) Accounts, stores, military 3 years

farms
(11) Accounts, training grant 1 year
114
No.
1 2 3 4
(12) Accounts annual 2 years

chronometer (N)
(13) Accounts annual deadstock 3 years

of dockyards and Naval
Establishments (N)
(14) Accounts capital and Forever

revenue expenditure of
dockyards 9N)
(15) Accounts, manufacture (N) 5 years
(16) Accounts monthly coal and 3 years

water of dockyards (N)
(17) Accounts production (N) 5 years
(18) Accounts, quarterly sale of 3 years

dockyards (N)
(19) Accounts monthly 2 years

victualling stores (N)
(20) Accounts, annual, printed, Forever

ordnance and clothing factories
(Fy.)
(21) Accounts, cash (A.F.) with 3 years from the date

schedules, vouchers and office of the accounts are
copies of punching media. finalized
(Imprest “M” ‘TA’ & Stores
Section and DE & J series)
(22) Accounts, cash, I.N. Ships 6 years from the date

and Establishment (N) of the accounts are
finalized
(23) (a) Accounts, Field Cashier 6 years from the date

Cash and other ancillary of the accounts are
documents. finalized
115
No.
1 2 3 4
(b) S&S Imprest Account and

ancillary documents
(24) Form ‘D’ issued to officers 3 ½ years.

and their families.
(25) Accounts indirect 2 years

expenditure with vouchers and
documents (Fy.)
(26) Accounts, Inward 10 years

Settlement
(27) Accounts, Outward 10 years

Settlement
3. Acquittance rolls for pay and 6 years except the

other allowances paid to the bills for June and
establishment of the Defence December which
Accounts Department. should be kept for 35
Years
4. Agreement form of labour 2 years

(Fy.)
5. Allocation of idle machines, 2 years

lists of (Fys)
6. Appeal files 5 years
7. Auction sale lists periodical 2 years

(Fy.)
8. Balances on outstanding 2 years

extracts list of (Fy.)
9. Back Sheets (mechanical) 2 years provided no

Ledger posting sheets discrepancy exists
(manual) (Fy.) between PSA & PSL
Balance
10. Balance Sheets
116
No.
1 2 3 4
(1) Balance sheet, annual of 3 years

tannery, curriery and cutter
shop (Fy.)
(2) Balance sheets, monthly of 2 years

cutter shop transactions (Fy.)
(3) Balance sheets, quarterly of 2 years

cutter shop transaction (Fy.)
(4) Balance sheet, timber (Fy.) 3 years
11. Bills
(1) Bills, contingent including 3 years

Medical reimbursement claims
(2) Bills contractors for cost of 5 years from the date

coal, suppliers to Defence of passing bills.
units/formations (Fy.)
Note: Contractors bills against this item do not include Disbursement Vouchers
mentioned at item 1 and 5 of Sl. No 120 of this Annexure (i.e. the ASC and MES
Contractors bills for which retention period of 10 years will remain unchanged)
* (3) Bills pay civilian Gazetted 6 years Pay bills for June and
Officers and establishment December should be
retained for 35 years
(4) Bills overtime allowance 3 years

(Fy.)
* (5) Bills Night duty allowance 6 years Bills for June &
(Fy.) December should be
as these claims are
preferred through
wage rolls
(6) Supplementary Bills for 3 years
117
No.
1 2 3 4
reimbursement of Tuition Fees

(Fy.)
(7) Bills, Railway (Railway 5 years

Claims)
(8) Bills, travelling allowance 3 years

(including L.T.C. bills)
(9) Local Purchase Bills 5 years
Note: The retention period in respect of contractors bills and local purchase bills
is subject to the following conditions :
(a) The retention period is counted from the date when the final bill against
the common supply order has also been finalized to facilitate linking of all
previous bills on the same supply order, if necessary.
(b) The bills under dispute/arbitration/litigation will be retained beyond the
above mentioned retention period till the finalization of the case.
(c) All advance payment bills including 90% or 95% payment will not be
subjected to above retention period which will count from the date of
payment of final adjustment claim.
12. Books and Regulations, etc.
(1) Army instructions, 1 Copy 10 years One copy each to be

by PCDA (Pensions)
(2) Army Staff List 25 years
(3) Annual Army List 10 years
(4) Army Orders 1 copy 10 years One copy each to be

by PCDA (Pensions)
(5) Civil Lists, all Current as well as the

previous list may be
retained
(6) Classification Hand Book of 110 years
118
No.
1 2 3 4
Receipts and Charges, one copy
(7) Service Books of officers Current as well as the

serving in Civil Department previous may be
retained
(8) Gazette of India, Parts I and 25 years

II, one copy
(9) Gazette of India other parts 3 years

with extraordinary, one copy
(10) List of units Until the next copy is

received
(11) Master Note Book 10 years
(12) Old books and regulation, 30 years One copy to be

codes, manuals and pamphlets, retained by the PCDA
one copy of each edition. (Pensions) for 75
years
(13) Postal Guide (India) 1 year
(14) State Gazettes one copy 1 year
(15) Seniority list of officers 10 years

(Defence Accounts Department)
one copy
(16) Seniority list of SO 10 years

(A)/AAO (Defence Accounts
Department), one copy
* (17) Seniority list of other 10 years

clerical government servants
(Defence Accounts
Department), 1 copy
* (18) Special roster for Class III 10 years

employees of D.A.D.
119
No.
1 2 3 4
(19) Service Book 10 years after death or Before destruction it

5 years after should be ensured
retirement or 5 years that
from the date of final pension/provident
settlement of terminal fund cases have been
benefits for those finalized.
individuals who
resign or are
retrenched, removed
or dismissed
* (20) Telegraph Guide 1 year
(21) Navy Fleet orders 10 years One copy of each to

be retained for 50
years by the PCDA
(Pensions)
(22) Navy instructions 10 years
(23) Navy lists one copy 10 years One copy of each to

be retained for 25
years by the PCDA
(Pensions)
(24) Drafting orders (N) 5 years
(25) Air Force instructions one 10 years or till such One copy of each will
copy (A.F.) time a compendium is be retained for 50
published years by the PCDA
(Pensions)
(26) Air Headquarters Permanent

organization memoranda one
copy (A.F.) To be reviewed after
30 years for further
(27) Air Headquarters, -do- retention.
administrative instructions one
copy (A.F.)
120
No.
1 2 3 4
(28) Air Headquarters routine -d0-

orders part IV, one copy (A.F.)
(29) Air Force Orders, one copy 10 years or till such One copy to be
(A.F.) time a compendium is retained for 25 year
published by the PCDA
(30) Air Force Lists 10 years (Pensions)
(31) Air Headquarters Permanent

Equipment Accounting
Instruction (A.F.) one copy. To be reviewed after
30 years for further
(32) Air Headquarters cash and -do- retention.
Pay Accounting Note (A.F.) one
copy
(33) Daily Commissioned and 6 years

Warrant List (N)
13. Budget analysis and 3 years

Stipulation (Fys.)
14. Broad Sheets
(1) Broad Sheets, all funds 45 years
(2) Broad Sheets, trust interest 5 years

fund
15. Cards
(1) Cards cost and abstracts 2 years

(A.F.)
(2) Cards cost closed (Fy.) 2 years
(3) Cards, day workers (A.F.) 2 years
(4) Cards, piece workers, 2 years

summary (A.F.)
(5) Cards, production (A.F.) 2 years
121
No.
1 2 3 4
(6) Cards, production ledger 2 years

closed (Fys.)
(7) Cards scale Audit (A.F. 5 years

officers)
(8) Time Cards for Industrial 35 years

employees (N)
16 Cash Books 10 years
17. Cash Requisition files To be bound with pay

bills
18. Cash, security deposits, files 35 years

(Stores)
19. Certificate form of 3 years

disbursements (Fy.)
20. Cheques
(1) Cheques cancelled 3 years
(2) Files of (a) 5 years ‘D’ section

copy
(3) Schedule III
(b) 10 years Accounts
section copy
(4) Cheques paid, files 5 years excluding the

year of issue.
21. Children’s allowance claims, 50 years

file (Pension claim)
22. Claims received other than pay 5 years

and pensions, files of
23. Claims returned unpassed, 3 years

files of
24.* Claims of Children Education 6 years Claims for June and

December should be
122
No.
1 2 3 4
Allowance (Fy.) retained for 35 years

as these claims are
processed through
wages bills
25. Casualty report absentee 1 years

memos (Fys)
26. Casualty report (i.e. 1 years

attendance) (Fys)
27. Miscellaneous rejected 5 years

pension and gratuity, claims
28. Compilations detailed 5 years
29. Completion certificate (N) 5 years
30. Component demand and 2 years

return notes (Fy.)
31. Contract register (N) 10 years
32. Contract agreements (MES) 10 years This period is to be

reckoned after the
date of payment of
final bill except in
cases of disputed
contractors bills,
which should be
retained until 3 years
after finalization of
dispute
33. Correspondence
(1) Circulation, memoranda file 1 year
(2) (a) Confidential papers 2 years after the date

regarding officers and other of death or 5 years
members of the establishment after the date of
including confidential reports retirement have
123
No.
1 2 3 4
and character rolls. become non-effective
(b) Correspondence files Not exceeding 3 years

regarding confidential reports/
character rolls.
(3) Correspondence regarding 1 year

supply of stationery and forms
(4) File of applications for 1 year

employment in the Defence
Accounts Department
(5) Letters from Government of Forever All other

India Ministry of Defence correspondence to
(Finance) and CGDA conveying and from
sanctions or decisions or other Government of India,
orders of a permanent nature MoD (Finance) or
and correspondingly the CGDA will be dealt
original letters or with under item 33 (7)
representations from
PCsDA/CsDA, etc. on which
such sanctions, decisions and
orders are initiated
(6) Section files of Government, 10 years

CGDA’s, AHQrs., letters, etc.
other than those mentioned at 5
above
(7) Ordinary correspondence 5 years (1) Correspondence

leading to the grant of
Pensions, etc. are filed
with personal cases
which are retained for
same the period as
124
No.
1 2 3 4
pension claims
(2) Files containing

papers leading to
decisions may be kept
for ten years
(8) Personal cases of civil To be retained for the

pensioner (Pension claims) same period as
pension claims
(9) Personal cases of Military 25 years or 5 years

Officers regarding the grant of after the death of the
retiring disability (including pensioner, whichever
family pensions) is later
(10) Personal cases of civilians 15 years from the date In the case of
or military pensioners the pensioner is pensioner in whose
maintained in the audit sections struck off the pension cases joint
containing the PPOs and other establishment or 5 notifications were
correspondence years after the issued, the period of
payment of life time retention relates to the
arrears, whichever is family pension
earlier holder, if any
(11) Rejected family pension 10 Years

files of JCOs/ORs, etc.
(12) Rejected disability pensions 20 years

files of JCOs/ORs, etc.
(13) Personal cases of 10 years

contractors (Stores)
(14) Personal cases of staff and 10 years after death or

departmental Officers 5 years after
retirement
(15) (a) Personal files of officers Before actual

and staff of the Defence destruction, it should
be ensured that
125
No.
1 2 3 4
Accounts Department. pension/ provident

fund cases have been
finalized.
10 years after death or

5 years after
retirement.
(b) Personal files of 5 years after

Deputationists resignation, 10 years
from the date of
reversion to their
cadre posts
(16) Correspondence files 10 years

regarding Security Deposits of
Contractors (ASC)
(17) Correspondence files 10 years

regarding Security Deposits of
Store Keepers (ASC)
(18) Subject files 35 years
(19) Personal cases of I.O.D.P. 10 years after death or

Fund and G.P. Fund (Fy.) 5 years after
retirement
(20) Record of service of 5 years after all action

Commissioned Officers relating to final
allocation of an
officer’s pension has
been taken
(21) Entertainment and 2 years

discharge memoranda (Fy.)
(22) Lists showing men 2 years

working on more than one gang
(Fy.)
126
No.
1 2 3 4
34. Credit notes, Military 3 ½ years

counterfoils, etc.
35. Nominations, all funds Follow the period See remarks against
prescribed for ledger item No. 57 (2)
cards and final
payment vouchers
36. Defect list (N) 5 years
37. Demand and return notes (Fys) 2 years
38. Demand and return notes 2 years

summaries of (Fys)
39. Draft S.W.O. completed (Fys) 2 years
40. Electric Power Statement (N) 5 years
41. Extracts (Fys) 3 years after the

completion of the jobs
to which they pertain
42. Earnings, Summary of, piece 2 years

and gang workers (Fy.)
43. Estimates
(1) Annual forecast budget 2 years

estimates
(2) Budget estimates (printed) 3 years One copy to be

retained in library for
5 years
(3) Cases pertaining to budge 3 years

estimates
(4) Detailed budget estimates 3 years
(5) Distributed budget estimates 3 years
(6) Revised estimates 3 years
127
No.
1 2 3 4
(7) Estimates (Fy.) Permanent till

revised.
44. Forms requisition for, files of 1 year
45. Forms, Loose leaves of diary 1 year

register, files of
46. Fund deduction, certified list 5 years

of
47. Fund Schedule 3 years No schedule will be

destroyed by IT&S
Centre (or other
Accounts Officer
responsible for
maintaining the fund
account) before the
expiry of one year
after the issue of the
annual accounts and
the receipts of
acknowledgement
therefor
48. Personal jackets of subscriber (A) (A) As all

correspondence
leading to final
payment of fund
accumulation are filed
in the personal case
files of the subscribers
concerned, these
should be retained for
the same period as the
nomination forms
vide item 35 ibid
49. Gratuity rolls (IAFY 1945) 50 years
128
No.
1 2 3 4
50. History sheets (Fy) Forever
51. Indemnity (IAFA-297) 10 years
52. Indents
(1) Indents, cash (requisition) 5 years
(2) Indents for railway warrants 1 year

and credit notes
(3) Indents, monthly stationery 1 year

files of
(4) Indents placed by N.H.Qrs 15 years

on public undertakings, like
BEL (N)
53. Inspection Notes (Fy.) 2 years
54. Inventory list and connected 2 years

voucher (Fy.)
55. Invoices Foreign 1 year after

verification of stores
and settlement of all
discrepancies
56. Invoices, Spear gear (N) 2 years
57. Journals and ledger
(1) Defence ledger 10 years
(2) (A) Ledger cards and final

payment voucher
(I) Where payment have been

made to persons other than
subscribers
(a) Minors 25 years
129
No.
1 2 3 4
* (b) To persons other than

minors
(i) Not in accordance with the 25 years

nominations of the subscribers
(ii) In accordance with the 5 years

nominations of the subscribers
(iii) Where payments have been 5 years

made to subscribers
(B) Vouchers pertaining to non- 5 years

refundable parts/ final
withdrawals from Provident
Funds
(3) Expense ledger (MES) 10 years
(4) Rent assessment ledger 20 years

(MES)
(5) Revenue ledger (MES) 3 years
(6) Job ledger (MES) 30 years
(7) Abstract ledger (N) 5 years
(8) Cost ledger (N) 5 years
(9) Revenue ledger (N) 5 years
(10) Building ledger (Fy) 15 years
(11) Component ledger (Fy.) 5 years
(12) Depreciation Fund ledgers 10 years

(Fy)
(13) Machinery ledger (Fy) 15 years
(14) Principal journal (Fy) 5 years
(15) Principal ledger (Fy) 5 years
130
No.
1 2 3 4
(16) Ledger, Imprest Holders 6 years from the dates

(AF) the accounts are
finalized
58. Lighting and buoying in the 5 years

Persian Gulf “Negrchus” , files
of (N)
59. Loss statements 3 years
60. Master card IODP and IOFEP 45 years

Fund (Fy)
61. Money warrant files (N) 10 years
62. Muster and pay books (N) 35 years
63. Naval prize money (N) 50 years
64. Numerical return and nominal 5 years

roll files
65. N.P. and P.M. summaries of 3 years

(Fy)
66. Orders
(1) Command, Area, Sub-Area 3 years

and Station orders
(2) A.S.C. Orders Printed 6 years
(3) Instructional, books orders 5 years

by section, files of
(4) Office orders (establishment) 10 years

(fair copies)
(5) Part I Office Orders 15 years One copy to be

in library
(6) Office procedure orders, 5 years
131
No.
1 2 3 4
files of one copy
(7) Dockyard order files (N) 5 years
(8) C.E. Orders (N) 5 years
(9) Work orders books and files 5 years

(N)
(10) Work orders, completed, 2 years

list of (Fy)
(11) D.O. Pt. II Order (DSC) 2 years

(AF)
67. Over time notes (Fy.) 1 year
68. Personal occurrence report 1 year

(AF)
69. Part II orders of Military forms 3 years
70. Passes
(1) Passes, gate (labour and 1 year

materials) (Fy)
(2) Passes, leave (Fy) 1 year
71. Pensions, arrears, claims of, 3 years

files of
72. Pension circulars, one copy Forever
73. Pension claims (where pension has been sanctioned) or D.P.Cs.
(1) All claims relating to the 50 years from the date

grant of service/ disability/ of last PPO bound in
family/mustering out pensions, a particular volume
review of disability pension,
continuance of family pension,
(2nd life award) Children
allowance, family gratuity and
gallantry awards together with
132
No.
1 2 3 4
supporting documents and the

draft PPOs
(2) Pension claims under the 60 years

rules in the C.S.R., new pension
rules and extraordinary pension
rules
74. Nomination and Family Pension Cases, etc., under liberalized pension rules.
(1) Pension cases 12 years after

retirement/death in
service of the Govt.
servant, as the case
may be in all cases
(2) The nominations whether

these relates to Gazetted or
non-Gazetted Govt. servants
(a) If the gratuity and /or 30 years

family pension are paid
to minors
(b) To other than minors
(i) Not in accordance with the 30 years

order in which
nominations have been
made
(ii) In accordance with the 6 years after the

order in which payment of Death-
nomination has been Cum-retirement
made gratuity or the last
installment of the
family pension has
been made
75. Pension journals (with 5 years

vouchers) Pension payment
133
No.
1 2 3 4
Schedules (with vouchers)
76. Pension payment orders 75 years
77. Pensions, revised rates of To be retained for the

intimations of (Pension claims) same period as
pension claim
78. Personal cases/Commutation Applications (JCOs/ORs/NCOs)
(a) Files pertaining to cases 5 years after issue of

where commutation stands commutation PPO
notified in a commutation PPO
(b) Files pertaining to cases 50 years

where commutation application
is rejected.
(c) Files pertaining to closed 5 years.

cases {other than those catered
for at (a) and (b) above}
79. Pension schedules of advances 3 years

of files of
80. Pensioners, Chelsea, file of 3 years

abstracts of payment to
81. Prices and wages in India 1 year
82. Printed memos regarding 10 years

receipts for interest on G.P.
Notes (IAFZ-2140)
83. Printed memos regarding 10 years

refund of security deposits
(IAFZ-2141)
84.* Punching media and relevant Not fixed As these documents

vouchers for the period from may be required for
01.04.47 onwards (Fy) the purposes of Test
Audit by the Audit
party from Pakistan if
134
No.
1 2 3 4
and when the visit of

such a party
materializes no
punching medium
voucher or any other
documents in respect
of which punching
media were prepared
should be destroyed
even when time
expired
85. Punching media for labour 1 year

(Fy.)
86. Progressive service head 5 years

compilation (N)
87.* Rate Book (Admiralty) (N) 10 years
88.* Rate Book (Admiralty) (N) 10 years or till the publication

of New Rate Book/
89. Rate list for clothing and mess 3 years
Rate list.
traps (N)
90. Rate Forms (Fy) Permanent till revised
91. Receipts of post office 1 year

registered letters, etc., files of
92. Receipts for stores issued by 5 years

MES to contractors
93. Receipts of telegrams sent, 1 year

files of
94. Receipts book, counterfoils of 1 year

(MES)
95. Receivable order book 2 years
96. Record, day and piece workers 2 years
135
No.
1 2 3 4
(Fy)
97. Records of ‘except’ 2 years

components drawn on
assembly orders (Fy)
98. Recovery claim file (N) 3 years
99. Registers (Audit)
(1)Appropriation audit register 3 years
(2) Audit Progress register 1 year
(3) Audit register of contingent 5 years

charges
(4) Audit register of officers 35 years
(5) Audit register of pensions 15 years
* (6) Audit register of Bengal Forever

Military and Orphan Fund
IMSFP and IMW and ORs Fund
Pensions
* (7) Audit register of Madras 12 years

Military Fund, Madras Medical
Fund and Bombay Military
Fund Pensions.
(8) Audit register of travelling 5 years

charges
(9) Pre-Audit bill register 5 years
100. Register of rejected pension, Forever

etc. claims
101. Registers (miscellaneous)
(1) Bill diary register 1 year
(2) Bill payment register 5 years
136
No.
1 2 3 4
(3) Coal bunker check register 3 years
(4) Daily attendance register 1 years

(establishment)
(5) Demand register 3 years 5 years in respect of

GP Fund Demand
Register
(6) Despatch register (letter and 1 year

objections)
(7) Despatch register (cheques) 3 years
(8) Family allotment register 5 years
(9) Family register Forever
(10) Half-margin register 3 years
(11) Index register G.P Fund, Permanent

IOFWP Fund, IODP Fund
(12) Inter-Departmental 5 years

schedules register
(13) Register of Index to House 25 years

Building Advance
(14) (a) Leave Register (Estt) 3 years

Earned
1 year
(b) Leave Register (Estt.)
Casual
(15) Register of valuable 5 years

documents
(16) Register of important 5 years

documents
(17) Register of secret 5 years
137
No.
1 2 3 4
documents
(18) Register of confidential 5 years

letters
(19) Objection register 3 years
(20) Progress register, inter- 5 years

departmental transactions
(21) Rebate register 5 years
(22) Register of 5 years

acknowledgements
(including Money order
receipts and
Acknowledgements)
(23) Register of allotment of 5 years

petty supplies
(24) Register of amounts 3 years

sanctioned by Audit Officer
of and above and the rank of
Sr. AO/AO
(25) Register of advances for 6 years

motor cars and other
conveyances
(26) Register of Blank cheques 5 years
(27) Register of books of Until the next register

regulations in stock is opened which
should contain all
current items of the
previous register
(28) Register of book-binding 3 years
(29) Register of capitation 20 years
138
No.
1 2 3 4
allowance to widows and

orphans
(30) Register of cash 3 years

assignments
(31) Register of cash receipts 5 years

(IAFA-616)
(32) Register of dead stock 3 years

articles
(33) Register of deposits and 6 years

advances repayable
(34) Register of emergent 3 years

advances
(35) Register of Europe invoices 5 years
(36) Register of events 50 years
(37) Register of financial 3 years

irregularities
(38) Register of financial 5 years

sanctions for fresh
expenditure
(39) Register of gratuity (IAFA- 15 years

514)
(40) Register of ground rent 50 years
(41) Register of half yearly 3 years

balance
(42) Register of histories of 50 years

Regimental Funds services
of civilian officers paid from
the Defence Service
Estimates
139
No.
1 2 3 4
(43) Register of income-tax 3 years
(44) Register of LPCs issued 3 years
(45) Register of LPCs books 5 years

received and issued
(46) Register of military 3 years

exchange accounts
(47) Register of miscellaneous 5 years

non- recurring charges
(48) Guard files of payment 6 years

issues
(49) Register of payment issues 10 years
(50) D.P. Sheets (to be retained 3 years

by PCsDA/ CsDA)
(51) Register of watching 3 years

acknowledgements in
respect of 100 per cent
advance payments made by
D.A.G (I&S) to contractors
(52) Register of pension 15 years

contributions
(53) Register of permanent 4 years

advance
(54) Register of receipt and 1 year

distribution of corrections,
orders and periodicals
(55) Register of receipt and 2 years

issue of forms
(56) Register of receipt of 5 years

cheque
140
No.
1 2 3 4
(57) Register of regimental and 10 years

other loans
(58) Register of fraudulent use 3 years after

of railway warrants/ credit finalization of all the
notes (Fy) items noted in the
register
(59) Register of sanctioned 10 years The period is to be

tenders reckoned after the
dates of payment of
final bill except in
cases of disputed
contractor’s bill in
which case the
documents should be
retained until 3 years
after finalization of
the dispute
(60) Register of security 45 years

deposits
(61) Register of specimen 5 years

signature
(62) Register of temporary 5 years

withdrawals and their
recoveries (Funds)
(63) Register of valuables 3 years
(64) Subscribers List 40 years
(65) Register of grants (MES) 3 years
(66) Register of approvals and 5 years after sanction In regard to Major

technical sanctions (MES) have expired Projects costing over
Rs.10 lakhs the
Admin approval &
Technical sanction
141
No.
1 2 3 4

a further period of 5
years
(67) Register of Daily Payments 3 years

and D.P. Sheets
(68) Register of Inspection 5 years

reports
(69) Register for the working 5 years

contracts
(70) Register of objections 3 years

waived
(71) Register of objections to 5 years

insufficient or irregular
sanctions
(72) Register of commutation of 5 years

pension I.A.F (C.D.A. -63)
(73) Skeleton List with receipt 5 years

and issue vouchers
(74) Scale audit register 5 years
(75) Register of losses (N) 5 years
(76) Register of recovery claims 5 years

(N)
(77) Register of ships (N) 5 years
(78) Register of transfer entries 5 years

(N)
(79) I.L.A.C. register (N) 5 years
(80) Register of showing cash 5 years

losses (N)
142
No.
1 2 3 4
(81) Increment register (Fy) 2 years
(82) Leave register (Fy) 2 years
(83) Register of demand and 2 years

return notes (Fy)
(84) Register of extracts (Fy) 2 years
(85) Register of sale voucher 2 years

(Fy)
(86) Register of warrants (Fy) 2 years
(87) Register of identification 6 years

symbols (Cash account A.F.
units)
(88) Register of receipt and 3 years

disposal of cash accounts
(A.F. units)
(89) Register for watching 3 years

expenditure against
allotments against local
controlled beads (A.F.)
(90) Register of miscellaneous 5 years

advances
(91) Register of provisional 3 years from the date

payments of finalization of all
items entered in the
register
(92) Register of defect list (N) 5 years
(93) Register of I.N. ships 3 years

placed at the disposal of
local Government and
survey work carried out (N)
143
No.
1 2 3 4
(94) Capital account register 3 years

(N)
(a) Building (permanent and
temporary)
(b) Plant and Machinery
(95) Audit register of 15 years

pensioners
(96) Audit cards relating to 15 years

Pensioners no more on the
Pension establishment
(97) Register of initials of AAO 10 years
(98) Register of Telegrams/ 1 year

Signals/Reminders
(99) Numbering register of 1 year

cheque slips
(100) Register of Railway 3 years

Receipts
(101) Register of Records 1 year
(102) Register of time expired 5 years

Records
(103) Register of Attachment 10 years
(104) Register of Nomination 45 years

Forms
(105) Register of Insurance 5 years After all the Policies

Policies are reassigned
(106) Increment stoppage 45 years

Register
(107) Register of Disciplinary 45 years

action cases
144
No.
1 2 3 4
(108) Register of volunteers for 5 years

transfer to various stations
(109) Register of identity Passes Until a New register

is opened carrying
forward all current
items
* (110) Register of Temporary 5 years

Record clerks and class IV
servants
(111) Register of Infructuous 5 years

expenditure
(112) Register of extra payments 5 years

to be exhibited in the
Appropriation Accounts
(113) Messing Charges Register 5 years

(IAFA-518)
(114) Register of files Until a new register is

opened carrying
forward all the
current items

progress of Test Audit
objections
(116) Register of Leave Accounts 10 years

of individuals lent to other
Departments/ Governments
(117) Register of Leave, 10 years

Passage/Pensions
contributions in r/o
individuals lent to other
Departments/Govt.
145
No.
1 2 3 4
(118) Register showing control 3 years

nos. of Guard files
(119) Register of Registers Until a new register is

opened carrying
forward all the
current items
(120) Register of CEA paid to 3 years

civilians paid from D.S.E.
(121) Register of OTA paid to 3 years

Defence civilians paid from
D.S.E.
(122) Register of Final 5 years

withdrawal from
GP/IOFWP Fund
(123) Register of watching final 2 years

settlements of Fund
Accounts
(124) Register of payments of Till all the policies are

withdrawals from G.P. re-assigned
Funds to Finance Policies
(125) Register of Fictitious code 3 years

head noticed in Punching
Media
(126) Register of Training Grants 3 years

Accounts
(127) Imprest C.R. Stock Book 5 years

Register
(128) Special register for 3 years from the date

payments made by of finalization of all
P.C.D.A./C.D.A. on Special items in the register
Direction of Ministry
146
No.
1 2 3 4

progress of expenditure
against allotments of Misc.
expenditure (DAD)
(130) Special demand Register 30 years

recording transaction
relating to grant of loans to
Co-operative Societies
(131) Register showing 2 years

necessary information
regarding receipt of Hindi
letter/Documents
(132) Contributory Provident 45 years

Fund Register
(133) I.O.D.P. Fund Register 45 years
(134) Register of Budget 5 years

Estimates
(135) Register of Mortgage 6 years

Bonds
(136) Register of Provisional 6 years

Credits/ Debits to Suspense
Account
(137) Register of Trust Interest 3 years

Fund
(138) Register of Advances for 6 years

House Building
(139) Register for settlement of Permanent (until all

claims pertaining to claims pertaining to
preparation period preparation period
are settled)
147
No.
1 2 3 4
(140) Security Duty Register 2 years
(141) Register for Recording and 10 years

Watching return of Contract
Agreements and Bills sent
for Arbitration
(142) Register of overtime 3 years

allowance (DAD)
(143) Register for Grant-in Aid 5 years
(144) Register for warm clothing 5 years

allowance
(145) Register for D.C.R. Permanent

gratuity and family pension

Superannuation list of
individuals
(147) Inward claim Register 5 years
(148) Register for C.P. Vouchers 5 years

where 90% advance
payment is made
(149) Outward claims Register 3 years
(150) Register for scheduling to 5 years

LAOs, CP Vouchers
received from PAOs
(151) Register (Guard File) 3 years

showing recovery of
inspection charges carried
out by T.D.Es in respect of
stores, indented by
indenters other than Defence
Services
148
No.
1 2 3 4
(152) S&S Imprest Register 5 years

handling over/ taking over
reports of UA (MEOs)
(154) Register of Advances 5 years

(Suspense)
(155) Register for allotment of 5 years

Funds for non-budget works
(156) Register of Contracts 6 years
(157) Register of Critical Review 40 years
(158) Register of vouchers sent 10 years

to Technical Examiner
(159) Register showing result of 5 years

Scrutiny of Contracts
(160) Register of 5 years

acknowledgement for
central purchase of stores
where 5% balance payment
is made without consignee’s
receipt
(161) Audit register of Cash 5 years

Accounts of Remount
Depots & Farms
(162) Register regarding 12 years

payment of excise duty on
Rum
(163) Register of Sale Accounts 5 years

(IAFA-707)
(164) Register of invoices of 5 years

imported stores from the
149
No.
1 2 3 4
United Kingdom
(165) Register of Service Books Permanent To be reviewed after

(Non-gazetted personnel) 30 years
(166) Money order check 5 years

Register
(167) Register of expendable 5 years

stores
(168) Peons Liveries Register 5 years
(169) Register of repairs to 10 years

Bicycles
(170) Register of Acquittance 5 years

Rolls
(171) Register of personal Permanent

number
(172) Control register Until a new register is

opened carrying
forward all current
items
(173) Register of recording 45 years.

payments of advances of
final withdrawal from G.P.
Fund for meeting expenses
on a/c of higher education,
House Building and
marriage purpose
(174) Register of Supplementary 10 years

Pay Bills (DAD Estt.)
(175) Register of Medical 5 years

reimbursement claims
(176) CGDA/Important letters 10 years
150
No.
1 2 3 4
Diary
(177) Inward Diary Register 1 year
(178) Register of Books and Until a new register is

Regulations, etc. distributed opened, which should
within a section contain all the current
items of the previous
register
(179) Register of Temporary 3 years

Sanctions
(180) Register of losses (Cash & 5 years

Stores)
(181) Instructional/ Section 10 years

Order Register
(182) Register of loss statement 1 year after all the loss

not finalized within six statements are
months (cash /store losses finalized
AF)
(183) Register showing the items 3 years

for inclusion in AAC
(184) Register for stores issued 5 years

to Foreign Govts. (AF)
(185) Stock Book of Articles 10 years

purchased out of Amenity
grant (AF)
(186) Register showing transfer 5 years

of stores to AMD Kanpur
(AF)
(187) Linking of AOG invoices 5 years

Register (AF)
(188) Register of vouchers 5 years
151
No.
1 2 3 4
selected for personal check

(issue linking) (AF)
(189) Register of vouchers 5 years

selected for personal linking
(receipt linking) (AF)
receipt and return of L.P.
and C.P. vouchers, etc. from
and to PCDA (AF)
(191) Register of CRVs in r/o 2 years

items received from
UK/USA under Military
Aid Programme (AF)
(192) Reconciliation statement 2 years

showing the disposal of
vouchers scheduled to
consignee LAOs (AF)
(193) Inter Service adjustment 5 years

Register
(194) Inward schedule Register 5 years

(AF)
(195) Register of Auditable To be reviewed after

documents Permanent 30 years
(196) Register of voucher Load/ 5 years

SSRCs (AF)
(197) EL Entitlement Register 2 years
(198) Festival Advance Register 1 year
(199) Register for working out 5 years

10% of cases for scheduling
to LAOs in respect of posted
out Airmen (AF)
152
No.
1 2 3 4
(200) Register for review of 3 years

Local allowance by AAO
and LAO (AF) on sampling
basis (AF)
(201) Misc. payment register i.e. 3 years

payments made other than
through Pay Bills like G.P.
Fund advances, Cycle
advances, etc.
(202) Conference Register 5 years
(203) Reconciliation Register 5 Years

(AF)
(204) Register of wages of 35 years

Industrial employees Part I
& II (N)
(205) Register for Receipt and 10 years

Disposal of Bank Scrolls
(206) Register of MROs 10 years
(207) Register for recording 10 years

Receipt of Schedules of
Payments and schedules of
Receipts

Reconciliation and clearance
of the Suspense Heads
Code 0/020/80
0/020/81
0/020/82
0/020/83
(209) Register of Reserve Bank 10 years

Deposit Accounts
153
No.
1 2 3 4
(210) I.D.S. Register recording 10 years

receipt of treasury receipt
(P)
(211) Register of Charged 3 years

Expenditure
(212) Register for fixed charges Permanent

(Fy)
(213) Control Register for ledger 2 years Provided no

posting (Fy) discrepancy exists
between PSA &PSL
balance
(214) Register of unorthodox 2 years

balance (Fy)
(215) Linking Register (Fy) 5 years
(216) Register for depreciation 3 years

(Fy)
(217) Register of payment of 5 years

CEA to IES (Fy)
(218) Register of IES (Fy) 35 years
(219) Register of individual 5 years

piece work and day work
cards (Fy)
(220) Register of payment of 5 years

injury pay (Fy)
(221) Register of review of 5 years

primary document (Fy)
(222) Industrial employees grant 5 years

register (Fy.)
(223) Register of Profit + Loss of 5 years

Ind. and Gang piece work
154
No.
1 2 3 4
rates (Fy.)
(224) Register of Boy artisan 5 years

(Fy.)
(225) Register of Gratuity claims 15 years

(IES) (Fy)
(226) Register of scales/trades 5 years

showing the authorized and
actual strength (Fy)
(227) Register of No. of IES 5 years

enrolled and discharged
monthly together with
corresponding load in the
Factory (Fy)
(228) Register of sanction in r/o 5 years

recurring Charges (Fy.)
102 Reports and returns
(1) Appropriation reports 3 years
(2) Audit Reports 3 years
(3) Audit and appropriation 10 years

reports one copy
(4) DO Part II files 5 years
(5) Inspection reports rendered 3 years

by LAOs
(6) Pension reports 25 years
(7) Preliminary reports of 3 years

receipts and charges
(8) Progress reports submitted 1 year

to CGDA files of
155
No.
1 2 3 4
(9) Return calendar of 1 year
(10) Returns sent out, office 1 year

copies of
(11) Test audit reports with 5 years

objection statements
(12) Returns of recoveries 1 year

(electric)
(13) Returns of recoveries 1 year

(water)
(14) Monthly Expenditure 2 years

returns (MES)
(15) Docking reports (N) 5 years
(16) Reports of work 5 years

completed (N)
(17) Stock reports (N) 2 years
(18) Survey reports (N) 2 years
(19) Progress reports 1 year

received from A.Os (Fy) file
of
(20) Returns of gang workers 2 years

(Fy)
(21) Reports and Returns 3 years

files on various subjects of a
less important nature, (e.g.
Programmes of Local
Audit, Mandays
Statements, Arrears in
Local Audit, etc. (AF))
(22) Quarterly Progress 3 years

Report regarding
156
No.
1 2 3 4
progressive use of Hindi
(23) Flight Returns including 5 years

Govt. Sanctions thereon
(AF)
103 Ready use store demands (N) 5 years
104 Rifles press bonus sheets (Fy) 2 years
105 Rolls, annual, of men 35 years

pensionable under civil rules
106 Scrolls Debit/Credit 5 years
107 Schedules
(1) I.D. Schedules with 5 years

vouchers
(2) Schedules forwarding issue 1 year

vouchers of stores
(3) Schedules of debit/credits 1 year

to Remittances (MES)
(4) Schedules of debits/credits 1 year

to Miscellaneous heads of
accounts (MES)
(5) Building schedules (Fy) 2 years
(6) Labour cost schedules of 2 years

hides (Fy)
(7) Machinery schedules (Fy.) 2 years
(8) Schedules of stores receipts 2 years

and issue vouchers (Fy)
108 Staff permanent and 2 years

temporary list of (Fy)
157
No.
1 2 3 4
109 Statements
(1) Late statement (Office 6 months after closure

Estts.) of the year
(2) Objections statements, Files 3 years

of
(3) Verification statement, Files 3 years

of
(4) Statement of items placed 1 year

under objection (MES)
(5) Adjustment statement (N) 3 years
(6) Annual statement of work Forever

executed in the dock-yard
one copy (N)
(7) Monthly statement of stores 3 years

shipped (N)
(8) Overtime statement (N) 2 years
(9) Percentage of absentee 2 years

statement of labour (N)
(10) Saw mill accounts, 5 years

foundry accounts coal, oil
and fuel statement (N)
(11) Statement of articles 5 years

shipped on work order (N)
(12) Statement of income tax 5 years

recovery from workmen
(N)
(13) Annealing and pickling 2 years

statement (I and II) (Fy)
158
No.
1 2 3 4
(14) Budget and works 3 years

expenditure statement (Fy)
(15) Comparative statement 2 years

of tenders (Fy)

showing the difference
between the estimates and
actual value of
manufactured articles
issued to factory capital
stock and other factories
(Fy)

of rates of different sorts of
casting (Fy)
(18) Foundry cost statement 2 years

(Fy)
(19) Printing statements (Fy) 2 years
(20) Daily summary staff. 2 years

(N)
(21) Distribution statt. for 2 years

inward vouchers received
during the month (AF)
(22) Process cost statement 2 years

(Fy)
(23) Production statement 2 years

(A, B, and C) (Fy)
(24) Semi-manufacture 2 years

statement (finished and
unfinished) (Fy)
159
No.
1 2 3 4
(25) Shop indirect 2 years

expenditure statement (Fy)
(26) Statement of recoveries 2 years

made from the factory
establishment (Fy)
(27) Statement of special 2 years

N.P. and P.M. charges in
accordance with M of D
formula for pricing of
payment Orders (Fy)
(28) Statement showing 2 years

disposal of surplus stores
(Fy)
(29) Statement showing open 2 years

extract (Fy)

profit and loss on payment
issue (Fy)

reasons for abnormal rise
and fall in the rates on
production accounts (Fy)
(32) Timber statement (Fy) 2 years
(33) Statement of closing 5 years

balance monthly received
from RBI Nagpur
(34) Statement water cost 2 years

(Fys)
110 Stationery account book 5 years
111. Store notes (N) 5 years
160
No.
1 2 3 4
112 Specimen certificates, of 5 years

quantity in respect of stores
received from USSR (N)
113 Security deposit receipt (IAFA- 5 years

299)
114 Suspense summary (MES) 3 years
115 Syllabus work orders, Part I For ever

(Fy)
116 Transfer sheets with abstracts 3 years
117 PM and numbering book and 10 years

transfer entry No. Books files
of
118 Transit books and peon 1 years

delivery books
119 Treasury receipts files 3 years
120 Vouchers
1) Disbursement vouchers 10 years

(ASC Contractors bills) with
supply orders, transport
indents, etc.
2) Pension disbursement 5 years

vouchers
3) Transfer receipt/ issue/ 1 ½ years The vouchers relating

expense vouchers to units and
formation whose
accounts are audited
on an annual basis
a period of two years
4) Store vouchers, priced stores 3 years
161
No.
1 2 3 4
and manufacture accounts
5) Disbursement vouchers 10 years

(MES)
6) Adjustment vouchers (N) 5 years
7) Copies of letters, vouchers, 3 years

rent bills, allotment rolls,
etc., received by IRLA (AT)
for test checking of debits/
credits in the post audit of
IRLS of Navy Officer and
rating (N)
8) Issue vouchers of stores 2 years

from dockyard indents and
demand notes (N)
9) Return notes (N) 3 years
10) Other vouchers (N) 3 years
11) Yard issue notes (N) 3 years
12) Yard return notes (N) 3 years
13) Component manufacture 2 years

vouchers (Fy)
14) Machinery vouchers (Fy) 2 years
15) Army issue voucher (AF) 3 years
16) F.600 (blue copies) and 3 years

F.1358, LAOS (AF)
17) Receipt and issue voucher 2 years

and M.I. Slips (Fy)
18) Transfer vouchers (Fy) 2 years
19) Transfer voucher affecting 2 years
162
No.
1 2 3 4
general indirect charges

(Fy)
20) Paid voucher GP and 45 years

other Provident Funds
121 Warrants
1) Railway warrants 3 ½ years

counterfoils of (**)
2) Incomplete and untouched 2 years

list of (Fy)
3) Manufacture warrants (Fy) 2 years
4) Material warrants (Fy) 2 years
122 Work notes (N) 5 years
123 Work order tabulation (Fy) 2 years
124 Work books 1 year
125 Working sheet showing 5 years

classification of pension
voucher (P)
NOTE : ‘N’ denotes Navy.
‘AF’ denotes Air Force.
‘Fy’ denotes Factories.
(P) denotes Pension.
(**) Notes: Flat Rated Railways Warrant need not be retained for 3 ½ years but may be
destroyed after completion of General Intelligent Scrutiny by Railway Audit
Section provided no objection have come up during General scrutiny and subject to
163
condition that adequate details of these vouchers would be kept separately as
considered appropriate and after noting down relevant particulars in a TOP
SHEET.
164
ANNEXURE ‘2.45.A2’
Statement showing the period on the expiry of which the records peculiar to HAL
work, may be destroyed
Sl. Description of records Periods of retention Remarks

No.
1 2 3 4
A. PAID VOUCHERS
1. Original copy of invoices held at ‘D’ 5 years

Section
2. Duplicate copy of invoices 5 years from the date of

pertaining to manufacturing projects close of the project after
acceptance of the absorption
a/c by Govt. whichever is
later
3. Duplicate copy of invoices of 5 years after final payment

projects other than Manufacturing
projects, such as ROH, supply of
spares, etc.
B. REGISTERS
4. Budget registers 2 years after closing of the

register
5 Demand controlling register 5 years after closures of the

Manufacturing projects or acceptance of
absorption a/c by G.O.I.,
whichever is later
6. Demand controlling register- 5 years after closures of the

repair/overhaul & supply of spares register
7. Register of amount paid for 5 years after closures of the

Deferred revenue Expenditure projects or acceptance of
absorption a/c, whichever
165
No.
1 2 3 4
is later
8. Register of Ways and Means 3 years after liquidation of

Advances advance
9. Register of Licence/Technical 5 years after closures of the

Fees/Royalty in r/o Manufacturing project
10. Register of Indent, RMS/LRMS 3 years after closures of the

orders register
11. Register of Firm and forecast repair 5 years after closures of the
task of Rotables, etc. task
12. Register of purchase orders 5 years after closures of the

register
13. Register of AOG paid invoices. 5 years
14. Register of recovery of hire charges 5 years

of Aircraft given on loan to
Chairman HAL
15. Register of Lost Time Hours 3 years after closing of

register
16. IFDs payments register 3 years after closure
17. Register of pairing of CPCs 3 years from the date of

closure of this register
18. Register showing 90%, 95%, 105, 5 % 5 years from the date of
payments to M/s BEL & ITI closure of this register
19. Register of Advance Payment made 5 years from the date of

to M/s HAL BEL closure of this register
C. FILES/ JACKETS
20. All correspondence files except 5 years

Manufacturing
21. Corr. Files Manufacturing 5 years after closures of the
166
No.
1 2 3 4
projects or acceptance of
absorption a/c, whichever
is later
22. RMS/ LRMS/ INDENTS Files 10 years
23. Purchase Order Files 10 years
24. Jacket of Task List 5 years after closing of the

Task
25. Budget notification Files 2 years
26. Audit Objection on IAF Stores files 5 years or after final

settlement of objection,
whichever is later
27. Inspection reports of M.O. File 3 years after settlement.
28. Files of Test Audit Objections 5 years after settlement
29. FCO Files 10 years
30. Price Catalogue File 20 years
31. Ex-gratia Payment/Wage Revision 2 years from the date of

Files finalization of account
32. Cross mandating file 20 years
33. Store Audit Progress Report File 3 years
34. Operation Statements and Audit 5 years

Reports thereon Corr. File
35. AAC Files 10 years
36. Draft Para Files 10 years
167
Retention period of records related to Complaints (Grievances) cases/files
S.N. Description of Records Periods of Remarks Authority

Retention
1. Complaints/Grievances Cases
(1) Those leading to 3 years after the If as a result of Record Retention

vigilance/ final disposal of the complaint Schedule in r/o
disciplinary appeal or final a warning is Records common
enquiries judgement issued to the to all
under the Govt. Servant Ministries/Deptt.
normal course of a copy of the 2012 issued by
law relevant order Department
will be placed Administrative
(2) Anonymous or To be destroyed Reforms &
in the personal
pseudonymous at the end of the Public
file.
complaints on which year Grievances
no action is taken
(3) Other complaints 3 Years
168
Retention period of records related to RTI cases/files

S.N. Description of Records Periods of Retention Remarks
1. (1) RTI Cases

disposed without
3 Years
attracting any 1st Appeal
(2) RTI Cases 3 Years Since they may

attracting 1st Appeal attract 1st Appeal
(3) RTI Cases 3 Years or till the

attracting 2 nd Appeal compliance of CIC
(without any orders, whichever is
remarkable decision) later
(4) RTI Cases 5 Years Judgement/CIC

attracting 2nd Appeal ruling (To be kept
(involving remarkable permanently)
decision)
(5) 1st Appeal cases 3 Years As these may

files attract 2nd Appeal
(6) 2nd Appeal cases 3 Years or till the

files compliance of CIC
orders whichever is later
(7) Files relating to the 3 Years

administrative aspects
of RTI Act 2005, i.e.
implementation,
suggestions, guidelines,
etc.
(8) File Register of RTI To be kept permanently

Application i.e. records
other than file
169
Statement showing the period on the expiry of which the records peculiar to IFA
work, may be destroyed
Sl. Files/ Registers Nature Period of

No. Retention
1 Shadow Files (for capital cases and - 10 Years

capital cases following the revenue
route)
2 Shadow Files (for Revenue Cases) - 5 years
3 Shadow Files Register - 10 Years
4 FC/UO No. Register - 5 Years
5 Qty Vetting /AON No. Register - 5 years
6 TPC/PNC Register - 5 Years
7 Approximate Estimates Capital Work (for 10 Years

road bridge, building,
electrification and
furniture
8 Revised Approximate Estimates Capital Work 10 Years
9 Detailed Project Report (DPR) Capital Work 10 Years
10 Work executed through Contracts Against the Capital 10 Years

Work against the
revenue
11 Acceptance of Contract Against the Capital 10 Years

Work against the
revenue (for
procurement of
construction
materials/ material,
170
No. Retention
stores & conveyance)
12 Acceptance of Contract Against the Capital 10 Years

Work against the
revenue (for
execution of earth
work, for mason
work, surfacing work
and permanent work
and supply of
construction
material/ stores and
conveyance)
13 Inclusion of works in BRDB Capital Work –

programme 10 years
Revenue Work –
5 years
14 Approval of Annual Work Plan 5 Years
15 Amendment to Approved Annual 5 Years

Works Plan
16 Approval of Long Term Equipment 10 Years

plan
17 Approval of Annual Equipment Plan 5 Years
18 Hiring of immovable property 5 Years
19 Terminal Compensation of surrender 10 Years

of hired property
20 Sanction of payment under Employees Forever

Compensation Act, 1923
21 Sanction of outsourcing of Forever

consultancy services for various
works including DPR preparation,
environmental impact assessment,
171
No. Retention
wildlife study and forest clearance
22 Co-sponsoring of technical seminars/ Revenue Case 5 Years

conference (In India)
23 Training Course (In India) Revenue Case 5 Years
24 Introduction of new scales/ change of Forever

existing scales
25 Revision of norms of equipment Policy Matter Forever
26 Fixation of life of vehicle Policy Matter Forever
27 Procurement of imported equipment Capital Works 10 Years
28 Procurement of vehicle/ equipment/ Capital Works 10 Years

plant and clothing
29 Procurement of Imported Spares for Capital Works 10 Years

vehicle/ plant/ equipment
30 Premature downgradation of 10 Years

vehicles/ equipment and plant
31 Loss of stores due to/ not due to theft, 5 Years

fraud or neglect
32 Write off loss of stores and public 5 Years

money due to/ not due to TFN
33 Implementation of Court Case Charged Expenditure 3 Years
34 Settlement of Civil Compensation 10 Years

cases including Bhutan
35 Medical Advance to employee Revenue 5 Years
36 Reimbursement of Medical Claim Revenue 5 Years

under emergency at private hospital
37 Ex-gratia payment To casual labour and 10 years

regular GREF
employee in case of
death/ injury
172
No. Retention
38 Relaxation to travel by Airline other Revenue/ Admin 5 Years

than Air India Matter
39 Local Purchase of Stationery Revenue Expenditure 5 Years
40 Procurement of Office Contingency Revenue 5 Years
41 Policy related Case Policy Matter Forever
173
2.46. Inventory maintenance/verification/disposal
Inventory maintenance should be ensured as provided under Rule 211 of

the General Financial Rules (GFR, 2017) and various orders issued by the Govt.
from time to time.
It should be ensured by the officers concerned that all the items have been
brought in Dead Stock Register and stock verification should be carried out at
regular interval as per laid down instructions.
It should be ensured that inventories have been regularly inspected and

prompt action has been taken for their repair and maintenance.
The old and obsolete items should be disposed at regular intervals as per
provisions contained in GFR as amended from time to time.
174
2.47. Office Equipments
Office equipment are required to provide basic amenities to the officials. It

includes Photocopiers, Fax Machines, Air Conditioners, Water Coolers and water
purifiers and dispensers, EPABX Machine, Fire Fighting Equipments, scanners,
etc.
All the equipments must be taken on charge and entered in the ledger of
the office at the time of receipt of the equipments. Since all these equipments
have a good shelf life hence for ensuring their efficient use for working, it must
be ensured that all the equipments are properly maintained and are kept
properly functional.
The equipments should be installed in office at the earliest after their

receipt so that the full advantage of the warranty provided by the
manufacturers/suppliers may be utilized in case of any issue cropping up during
their use.
The Annual Maintenance Contracts should be resorted to for proper

maintenance of these equipments, which should commence after completion of
the Warranty period.
175
2.48. Fire Prevention Provisions/ Orders
Fire prevention provision is of the highest importance for the safety of an

office. Fire protection systems and procedures are legal requirements and need to
be put in place in buildings to make employees aware in the event of a fire. The
basic firefighting equipments in any workplace need to be maintained as per
Indian Bureau of Indian Standards 2019.
176
2.49. Security
Instructions on various aspects of the departmental security in respect of

offices of the DAD which are located outside the Defence Headquarters, Security
Zone are contained in the Pamphlet titled `Departmental Security Instructions'
issued by the Ministry of Home Affairs.
The DAD HQrs and other Principal Controllers/Controllers offices which

are located in the Defence HQ Security Zone, will be governed by the
Departmental Security Instructions issued by the Ministry of Defence.
With a view that the requirements of departmental Security are at all time
kept in view and measures to remedy defects or to effect improvements in
Security arrangements are taken whenever occasion arises, the following
guidelines of security regarding office buildings are laid down.
It should be ensured that:
(i) adequate compound wall/barbed wire boundary fencing exists in all

offices having compounds;
(ii) the number of entries and exits to the office premises are restricted to one
for entrance and one for exit;
(iii) all doors and windows can easily be closed and locks of good quality are
fitted to the doors;
(iv) all windows, especially on the ground floor, have iron bars;
(v) all door keys of office rooms are kept at all times in safe custody and that
the duplicates thereof are kept in deposit with the Security Officer, where the
duplicate key of any lock is not traceable, the lock should immediately be
replaced. Both the keys of each lock have a metal number tag and the duplicate
keys in deposit are checked once a month;
(vi) no office room remains unlocked or unattended to at any time, during the
lunch interval, one person in every room is placed on duty to look after it;
(vii) cleaning and dusting of office rooms is done in the presence of responsible
persons detailed for the purpose; one or two Senior Auditors/ Auditors/ Clerks,
177
etc. (as required) may be detailed for this job, as well as for security duty in the
evening.
(viii) the person detailed for security duty (after the office room is vacated in the
evening) as well as for fire duty should see that :
(a) all windows are bolted;
(b) all safes, almirahs, boxes etc., are locked;
(c) all seals and stamps are kept under lock and key and no important
registers/books are lying about in the sections;
(d) waste paper baskets and fire places have been emptied;
(e) all lights and fans have been switched off; and
(f) that the room is taken care of by the security staff (where provided separately),
staff on security duty, etc., and any points of interest concerning security noticed
in respect of rooms entrusted to them are noted in the register maintained for the
purpose in order to bring the defects to the notice of the Security Officer/Officer-
in-charge of Establishment Wing/Section for rectification;
Note: The individuals employed on the job mentioned at clauses (vii) and (viii)
above may be given compensatory concession to leave office earlier or to attend
office late next day as the case may be depending upon the nature of duties
entrusted to them and the exigencies of work.
(ix) adequate security arrangements exist for guarding the office buildings and
also that requisite number of light points are provided to keep the premises fairly
lit at night;
(x) proper arrangements exist for controlling entry of visitors and that
outsider’s are permitted to see officer only and that they are escorted from the
gate to the officer concerned and back to the gate on completion of business. The
visitors should not be left alone in a room where access to classified documents is
possible;
(xi) staff attending office on Sundays or closed holidays or sitting in office well
beyond office hours are allowed to do so only with the prior written permission
178
of the AO/SAO/ACDA-in-Charge section and that they sign and enter their
particulars in an `In and Out' Register specially maintained for this purpose;
(xii) members of the staff are discouraged from carrying briefcases, magazines
and newspapers, etc. to office rooms, and
(xiii) surprise visits at night at frequent intervals are paid under the supervision
of the Security Officer to see that the building/premises are safe and that the
Multi-Tasking Staff on security duty are vigilant.
179
2.50. Inspection
In Principal Controllers/Controllers office and other large offices, an officer,

assisted by an Assistant Accounts Officer will be detailed in office orders, weekly
in rotation, to be in-charge of the office buildings and compound during the
week.
They will make a daily inspection of the office building and compound and
will see that personnel employed for the same do their work properly and a
report submitted to the Officer-in-charge of the Establishment Wing/Section.
180
2.51. Procurement
Procurement of various items of office requirement viz. equipments,

furniture, stationery, etc. are carried out as per provisions contained in GFR as
amended from time to time. After implementation of Government e-Marketplace
(GeM), as per instructions in vogue, all procurements should be resorted through
GeM portal only.
The GeM portal allows floating of bids and also customized bids for
meeting out the requirement of the Government Departments.
181
2.52. Conservancy/ Outsourcing of Services
“Outsourcing of Services” means deployment of outside agencies on a

sustained long term (for one year or more) for performance of other services,
which were traditionally being done in-house by the employees of
Ministries/Departments (e.g. Security Services, Horticultural Services, EPABX
Operators, Cooking/Catering/Management Services for Hostels and Guest
Houses, Cleaning/Housekeeping services, etc.).
Outsourcing of Services will be made as per guidelines laid down through

the “Manual for Procurement of Consultancy & Other Services 2017” prescribed
by the Government of India, Ministry of Finance Department of Expenditure.
Outsourcing of all kind of manpower is available through GeM.

Accordingly, all the contracts for outsourcing must be concluded through GeM
only.
182
2.53. Projects & Works
2.53.1. Construction of Office/ Residential/ Transit

accommodations for use of Defence Accounts Department
To achieve the goal of self-reliance in the field of infrastructure, the Defence

Accounts Department is continually planning construction of assets in the form
of office, residential, transit and hostel accommodations pan India. This is done
in a planned manner through five year Perspective Plans consisting of various
projects based on projections by user PCsDA/CsDA. The same is approved in
principle by the Ministry of Defence (Finance) and the projects are executed
through executing agencies like MES, DRDO, etc.
Process involved
The various stages involved in the processing and sanction of Capital

projects are shown below:
Submission of Acceptance of
Initiation of AON by CGDA
Board Board
Proposal by & Constitution
Proceedings by Proceedings
PCDA/CDA of Recee Board
PCDA/CDA by CGDA
If cost is < Rs. 25 Crores
Sanction Vetting of AEs Preparation of AE

Sanction on the basis of
conveyed to and concurrence
by CGDA Accepted Board
PCDA/CDA by PIFA(Q-M)
Proceedings
Scrutiny of If cost is > Rs. 25 Crores

Concurrence AEs by
by IFA to Works Div
Defence of MOD
Finance Proposal
Sanction by processed to
MOD MOD (Fin)
(DAD Coord)
183
2.53.1.2. Documents required/ Checklist for processing the
proposals related to construction of accommodations
The following documents are required:
a) Statement of Case duly justifying the proposal as per Para 22 of DWP 2020.
b) Land Availability Certificate along with Handing Taking Certificate
c) Proposal for usage of accommodation occupied, if any.
d) Accommodation Statements Part I & Part II based on latest scales of
accommodation of Directorate of Estate, Ministry of Urban Development.
e) Recommendation of PCDA/CDA, as the case may be.
e) Rough Indication Cost of the project as per Appendix ‘B’ Para 22 of DWP
2020 at the time of AON.
f) Detailed Approximate Estimates (AEs) by Competent Engineering
Authority at the time of processing the case for sanction.
184
2.53.2. Proposals related to additions/ alterations/ special repairs,
etc. related to accommodations pertaining to the Department or for
use of Department
To maintain the assets constructed by the Department or used by the

Department, proposals related to additions/alterations/special repairs, etc. are
received in the Establishment Wing/Section beyond a certain threshold limit.
Process involved
The various stages involved in the processing of these proposals are shown
below.
Scrutiny of
Initiation of Proposal Approximate Estimates Vetting of proposal by
by user PCDA/CDA by AFA (Works) of IFA to Defence Finance
MOD
Processing of case to
Scrutiny of proposal at MOD (Fin) if cost is Sanction by CFA in
CGDA office more than Rs. 100.00 MOD (Finance)
lakhs
Vetting of Proposal by Sanction by CGDA

PIFA (Q & M) if cost is Sanction
if cost is between
between Rs.20.00 communicated to
Lakhs to Rs.100.00 Rs. 20.00 Lakhs to
user PCsDA/CsDA
lakhs Rs.100.00 lakhs
185
2.53.2.2. Documents required/Checklist for processing the
proposals related to additions/alterations/special repair, etc.
a) Statement of Case duly justifying the proposal.
b) AEs for the proposal duly prepared and vetted by Competent Engineering
Authority.
c) Engineer Appreciation and authorities for MV/DCS, Assessed rates,

Market rates, etc.
d) Certificate regarding last special repair undertaken.
e) Recommendation of PCDA/CDA.
186
2.53.3. Monitoring of Capital and Maintenance Budget in respect
of four heads
For construction of capital assets and their maintenance, the budget
allotment is provided by MoD (Finance) under four heads viz.
(a) Major Head 4059: Capital Outlay on Office,
(b) Major Head 4216: Capital Outlay on Housing,
(c) Major Head 2059: Maintenance of Office Buildings, and
(d) Major Head 2216: Maintenance of Residential Buildings.
Based on the progress of various capital projects as well as maintenance

services, demand is received from user PCsDA/CsDA under whose
administrative jurisdiction, the capital projects and maintenance services fall and
the same is processed in the DAD HQrs.
Process involved
The process involved in processing the demand/surrender of user offices

are as follows:
a) Demand/surrender of funds by user PCDA/CDA

b) Scrutiny and processing of proposal at DAD HQrs
c) Approval by Competent Authority at DAD HQrs
d) Communication to PCDA/CDA after approval.
187
proposals related to demand/surrender of funds
a) Requisition from PCDA/ CDA for demand/ surrender of funds
b) Copy of Admin Approval of CFA if the work is new and sanctioned by

CGDA/ PCDA/ CDA
c) Details of Contract agreement including Work Order-1 along with physical

and financial progress of the work.
d) The projection should be made in approved format.
188
2.53.4. Processing of proposals related to hiring of accommodation
For meeting the demand of smaller sub offices like DPDOs and LAOs, the
Department with the help of Defence Estate Office, is hiring office
accommodations as well as residential accommodations for meeting the needs of
the offices for suitable accommodations.
Process involved
The process involved in hiring/rehiring of accommodation is as follows:
a) Receipt of proposal for hiring/rehiring from user PCsDA/CsDA.

b) Scrutiny and processing of proposal at DAD HQrs
c) Approval by Competent Authority at DAD HQrs
d) Communication of sanction for hiring to PCDA/CDA after approval.
189
proposals related to hiring/rehiring of accommodations
a) Statement of Case justifying the hiring.
b) Board Proceeding of Station HQrs/DAD officials, as the case may be.
c) Willingness Certificate of Owner of the house.
d) Sponsorship certificate of user office.
e) Rent reasonability certificate by concerned DEO/District Administration.
f) Recommendation of the PCDA/CDA.
190
2.53.5. Grant of Re-appropriation sanction for use of
accommodation other than the purpose for which accommodation
has been constructed
Over a period of time, the necessity for use of building for other purposes is
needed depending upon the changing requirement of user with change in time.
Accordingly, on the request of user, proposal for re-appropriation of building is
received and processed for sanction of the Competent Authority in the DAD
HQrs.
Process involved
The process involved in re-appropriation of building is as follows:
a) Receipt of proposal from user PCsDA/CsDA.

b) Scrutiny and processing of proposal at DAD HQrs.
c) Approval by Competent Authority at DAD HQrs.
d) Communication of re-appropriation sanction to PCDA/CDA after
approval.
191
proposals related to re-appropriation of building
a) Statement of Case justifying the re-appropriation or continued re-

appropriation in case sanction was earlier accorded.
b) Supporting documents showing benefit from re-appropriation in the past,

in case of proposal for continued re-appropriation.
c) Occupancy Vacancy report for the building for which re-appropriation has
been proposed by user
c) Recommendation of the PCDA/CDA.
192
2.53.6. Monitoring of proposals related to transfer of land from
Services to the Department and also purchase of land from State
Government
As per policy decision of Ministry of Defence, land transfer from Services to

Defence Accounts Department is without cost. Where land is not made available
from Services, the Department with the approval of Ministry of Defence,
purchase the land from State Government/ Housing Board authorities for
construction of accommodation.
Process involved
The process involved in transfer/purchase of land is depicted in the

flowchart as follows:
Initiation of Proposal Scrutiny by MOD

Scrutiny by
by PCDA/CDA in (D/Lands) in
AHQ/QMG (Land
consultation with consultation with
Wing)
concerned authorities DGDE/PDDE
Approval by CGDA
& processing of case Scrutiny by
to IHQ of MOD for Sanction by MOD
Command HQ
AIP
AIP of IHQ of MOD

Scrutiny by Sub- Sanction conveyed
to proceed with land
Area and Area HQ to PCDA/CDA
transfer
Constitution of Preparation of Board

Station Board by Proceedings by
Station HQ Station HQ
193
proposals related to Approval-in-Principle of IHQ of MOD for land
transfer
a) Statement of Case justifying the proposal for land transfer
b) Supporting documents viz. details of land etc. in consultation with

authorities whose land has been proposed for transfer.
c) Recommendation of the PCDA/CDA.
194
2.53.7. All estate related matters including publication and
amendment of Defence Accounts Departmental Pool Residential
Accommodation Rules
For monitoring and control of DAD Pool residential accommodations

constructed pan India, Defence Accounts Department Pool Residential
Accommodation Rules, 2019 have been published on the lines of rules of
Directorate of Estate, Ministry of Urban Affairs.
The allotment of residential quarters and their further control is managed

through these rules. Based on the feedback and necessity, amendment to these
rules is carried out with the approval of Competent Authority in the Ministry of
Defence in consultation with Directorate of Estate, Ministry of Urban Affairs,
Ministry of Law & Justice and Department of Official Languages.
195
2.54. DAD BUDGET
Preparation of Budget Estimates, Revised Estimates, Modified

Appropriation/ Final Requirement, etc. in respect of DAD Budget
and Loans and advances and its submission to the Ministry
Description
Compilation of projections received from PCDA/CDA for Budget

Estimates, Revised Estimates, Modified Appropriation, etc. in respect of DAD
Budget and Loans and advances and submission of combined projections for
DAD as a whole to MoD (Finance).
Process involved
1. Projection forwarded by field offices to be compiled.
2. The combined projections need to be approved by the CGDA
3. Submission of combined projections in prescribed format to MoD (Fin).
Documents required /Checklist
1. Projection of field offices.
2. MER for the latest month.
3. Expenditure of previous year.
196
2.55. Allotment of funds to field offices in Budget Estimates,
Revised Estimates, Modified Appropriation/Final Requirement, etc.
Description
Release of funds under Budget Estimates, Revised Estimates, Modified

Appropriation, etc. to the field offices based on their demands and subject to
availability of funds.
Process involved
1. Main work sheet in MS-Excel format is prepared under which all heads i.e.
Salary, Wages, OTA, Travel Expenses, Office Expenses, Medical Treatment,
Other Administrative Expenses, RRT, Professional services, etc. are involved,
head wise previous years allotment and expenditure, projection by field offices
and allotment in BE is indicated.
2. A note is also be prepared for approval of Competent Authority.
3. After approval by the Competent Authority the same is to be distributed to

all field offices including their sub-offices and NADFM, CsDA (RTC), etc.
1. Allotment from Ministry in Budget Estimates, Revised Estimates, Modified

Appropriation, etc.
2. MER of latest period.
197
2.56. Preparation of Monthly Expenditure Report of all
PCDA/CDA where funds is provided by DAD HQrs.
Description
Monthly Expenditure Report (MER) is prepared on 1st week of each month

to monitor the expenditure of all field offices under each head.
Process involved
1. Download the Expenditure up to that month from RDR compilation in MS-

Excel format and convert the same into thousands.
2. Enter the expenditure in another MS-Excel format under which a

comparative statement is prepared w.r.t. allotment to all PCsDA/CsDA.
1. MER extracted from RDR Compilation through the system

(PRABAL/NCS).
198
2.57. Preparation of Appropriation Accounts and its submission
to MOD (Fin) via Accounts Wing of DAD HQrs.
Description
Head wise Appropriation Accounts is prepared after the closing of the

Financial Year.
Process involved
1. Based on the data of BE allotment, RE allotment, Modified appropriation

and expenditure for the Financial Year, the same is prepared in MS-Excel format
and forwarded to Accounts Wing for further necessary action.
1. BE, RE, Modified Appropriation from Ministry and actual expenditure as

per March (Sy-1) Final.
199
2.58. Preparation of Receipts Budgets in respect of DAD heads
Description
Receipt budget is prepared under head HBA (House Building Advance),

Personal Computer Advance, CGHS, CGEGIS and other advances from the data
collected from RDR compilation through system (PRABAL/NCS).
Process involved
1. Receipt data from the RDR compilation in respect of HBA and Personal
Computer advance, CGHS, CGEGIS, Motor Car advance, etc. is collected and the
same is to put on another format for onward submission to the Accounts Wing.
1. Requisite data collected from RDR Compilation through system

(PRABAL/NCS).
200
2.59. Maintenance of HBA fund, allotment to Field offices and
submission of demand to the Ministry in BE and RE
Description
Fund is received under the head HBA from the MoD separately both in BE
and RE. The sanction letters of HBA for allotment of funds is received from all
PCDA/CDA offices in DAD HQrs. Based on the receipt of the sanction letters,
the funds are allotted to the respective PCDA/CDA for further disbursement.
Process involved
1. Duly sanctioned cases of HBA received from PCDA/CDA offices, are

processed and sanction thereof for allotment of funds is to be obtained from the
Competent Authority in the DAD HQrs.
1. Sanction letter from the PCDA/CDA in respect of HBA
2. Allotment letter from Ministry.
201
2.60. Sanction of Permanent Advance to the PCsDA/CsDA and
all IFA offices and their review
Description
Permanent Advance (Imprest) is authorised to offices of the PCsDA/ CsDA

& equivalents to meet expenses of petty nature for meeting out daily needs of the
office.
Process involved
1. Requests for increasing the amount of Imprest from field offices are
received. The same is reviewed (with the advice/recommendation of IFA section
in case of offices of PIFA/IFA) and the approval of the Competent Authority is
obtained.
1. Request from Field Offices for increasing the limit of Imprest, etc.
202
2.61. Procurement of New Staff Car and Utility vehicle received
from field offices and their submission to the Ministry for approval
Description
The proposals, along with necessary documents, are received from the field
offices for procurement of New vehicles (Staff car and Utility vehicle)/ New
vehicles in lieu of condemnation of old vehicles.
Process involved
1. The proposals received are scrutinized in accordance with the provisions

laid down in the Staff Car Rules and other instructions issued by the
Government of India from time to time.
2. The proposals are placed before the Competent Authority for approval.
3. After receiving the approval, the proposal is forwarded to the Ministry for
obtaining approval from the Competent Authority in the Ministry of
Finance/Ministry of Defence.
1. Statement of case
2. Condemnation certificate of authorized authority
3. Recommendation of concerned PCsDA/CsDA
203
2.62. Legal Matters
CAT/ Court cases
The Government employees seek redressal of their grievances relating to

service matters by approaching the Central Administrative Tribunal and the
higher courts.
Service Matter
Service matter has been defined to mean all matters relating to conditions of
service, viz.-
(i) Remuneration (including allowances), pension and other retirement

benefits;
(ii) Tenure including confirmation, seniority, promotion, reversion,
premature retirement and superannuation;
(iii) Leave of any kind;
(iv) Disciplinary matters;
(v) Any other matter.
The definition is quite expansive and of wide connotation and has been
held to cover other incidental and ancillary matters like-
(i) Transfer;
(ii) Allotment of quarters;
(iii) Eviction proceedings under Public Premises Act;
(iv) Determination of marital status for purposes of family pension.
The aggrieved Government employees implicate various senior officers of

the Government of India including MoD, MoD(Finance), DAD HQrs as
parties/respondent.
As per instructions in vogue, the Administrative Department/

Organisation where the applicant is serving or has last served should prepare
and file a common counter reply and defend the case on behalf of all the
Respondents. However, it is imperative to consult other respondent Ministries/
Departments for incorporating their views in the common counter reply to be
drafted and filed before the concerned CAT/Court.
204
For the purpose of handling/ effectively monitoring the progress of CAT/
Court cases, a number of Nodal Offices have been nominated on pan-India basis.
At present, 21 Principal Controller / Controller Offices/ Sub-Offices under the
administrative control of Defence Accounts Department are functioning as Nodal
Office for the aforesaid purpose. The specific jurisdiction/area/court for
monitoring the cases in which the DAD, irrespective of the Organisation, has
been impleaded as Respondent is notified from time to time by the DAD HQrs.
205
2.63. Duties of Nodal Officer and Liaison Officer
(i) It is the duty of all PCsDA/CsDA to ensure that all court cases should be
defended through the concerned Nodal Offices and not through legal
cell/section of the Principal Controller/Controller office.
(ii) For this purpose, the concerned Principal Controller/Controller would be
required to nominate an officer not below the rank of Additional CDA/
Joint CDA (DCDA where Additional CDA/Joint CDA is not available) as
Nodal Officer and also form a cell exclusively for handling and monitoring
Court/CAT cases. The name of the Nodal Officer so nominated including
his residential address with telephone number/mobile number should be
intimated to all PCsDA/CsDA and all Nodal Officers nominated by the
DAD HQrs for this purpose.
(iii) The Principal Controllers/Controllers should intimate the complete
postal address of their office to the Registrar of each CAT Bench.
Nodal Officer
a) Nodal Officer will immediately engage a Central Government Standing

Counsel to defend the case on receipt of the notice of same from CAT/Court.
In case the date for filing the counter reply or the next date of hearing is at a
short interval, the CAT/Court may be approached for seeking extension of
time
(b) Nodal Officer will liaise with Government Counsel and brief him on
complete facts of the case and rule position in the matter to enable him to
defend the case.
(c) The Nodal Officer may also take the assistance of the officer dealing with
the case, if required.
(d) Liaise with the counsel to get prepared the draft counter reply in the case
and then examine the same before filing the same in the Hon’ble CAT/Court.
(e) Detail representative to attend court on every date of hearing and intimate
outcome of hearing to the concerned office and the DAD HQrs.
(f) Obtain a copy of judgment and send the same to concerned office and DAD
HQrs alongwith opinion of the Government counsel regarding feasibility of
filing a review/appeal in the next higher court.
206
(g) If notices are issued by the Court in DAD cases and handed over to the
Govt. Counsel, the same will be collected alongwith letter of Govt. Counsel
and forward it to concerned office
Liaison Officer
PCsDA/CsDA would also nominate a Liaison Officer for regular

interaction/liaison with Govt. Counsel as well as Registrar of the concerned
Bench. Such Officer may be provided telephone at his address as well as in the
office, if possible.
207
2.64. Signing of documents to be filed
Any Group ‘A’ Officer in the Department is authorized to sign all pleadings
and other documents to be filed for and on behalf of the Union of India, before
Central Administrative Tribunal. Such officers who are acquainted with the facts
of the case may also be authorized to verify such pleadings
In case of problems regarding engagement of Standing Counsel or any

other problem relating to terms and conditions applicable to Govt. Counsel
appointed for that Court and materials for vetting, etc. the same can be referred
directly to the officer of the Branch Secretariat who are made in-charge.
The cases that are listed in Supreme Court or in different High Courts
require follow up action in terms of orders passed therein. The action that is
required to be taken is mostly indicated in the orders passed by the Court and
forwarding of the orders does take some time which results in delays in
compliance and in meeting timelines indicated by the Court. The Court Orders
are made available on the same day or by next day on the website of Supreme
Court & other High Courts. As such the Court Orders should be tracked through
the concerned website of Supreme Court and other High Courts for timely
compliance of Court Orders. However, original copy of the Court Orders must be
obtained before implementation/challenging the same.
The Nodal Officer shall comply with the laid down time line so as to avoid
contempt. In case the Courts have given less time to respond, in such cases, the
matter should be promptly taken up demi officially by the Principal Controller /
Controller concerned with the DAD HQrs which will in turn take up the matter
with the MoD, Department of Legal Affairs and Nodal Ministry viz. DoPT,
Ministry of Finance, etc. as the case may be.
2.65. The pictorial representation for handling of Court Cases are given in next
page as Annexure 2.65.A1 and Annexure 2.65.A2.
208
ANNEXURE - “2.65.A1‘’
AGGRIEVED PARTY FILES OA IN COURT
Initiation
Process
Court requests reponses from the Respondents
(Department/Government)
Department receives affidavit and concerned section

prepare para-wise Reply with reference to orders on
subject
Para-wise remarks are sent to CGSC/Government

Pleader(GP) for examination
Official
Process
Draft Counter Affidavit received from CGSC/GP
A case for obtaining concurrence of DoLA to defend private

respondent through Government Counsel, is processed by
department.
After vetting by respective LA(Defence) (Despatch of Legal

Affairs), CGSC files CA in the Court/Administrative Tribunal
Interim Orders if
any
Court hearing of the Case
Judicial
Process
Adjournment(s) of the Case, if any
Final hearing and judgment of the Case with judgment copy sent
to all alongwith legal opinion of CGSC.
Implement the Appeal against the

decision by Court Department decision in higher
decision Court
209
ANNEXURE- “ 2.65.A2”
FLOW CHART FOR DEALING WITH COURT CASES AFTER COURT ORDER
Final Judgment delivered by the Hon’ble CAT/ High Court/Apex Court
Nodal office collect the copy of Court Judgment through the CGSC along with opinion
of CGSC and forward the same to Concerned Pr. Controller/ Controller within ten
working days from the issue of Judgment.
The Controller concern on receipt the Judgment / Legal opinion from Nodal office,
prepare a Statement of Case incorporating facts and forward the same to DAD HQrs
for further directions with specific recommendations within Seven working days.
On receipt of above documents from PCDA/CDA, the DAD HQrs. after considering
the legal opinion of CGSC, examine the matter and forward the case file to Ministry
of Def. (Fin) with specific recommendations whether to implement the Court
judgment or not, within ten working days.
In case of Service Matter Cases

In terms of DOP&T OM dated 01/05/2000, where Court In case of Pay & Allowance Cases
Where ever the Court Judgment having a
order is against the GOI instructions on service matters,
bearing on pay and allowances, the case file
the Ministry of Def (Fin) forward the case file to DOP&T is also sent to Nodal Ministry/DoP&T for
for directions in consultation with Department of Legal
their advice.
Affairs.
1. Appeal in Higher Court 2. Implementation of 3. Delay in receipt

After receipt of advice from DOP&T/ Court order of advice/sanction
LA (Def)/ Ministry of Finance through After receipt of advice from the Ministry
Ministry of Def. (Fin), which takes 30- from DOP&T/LA (Def)/ If there is any
40 days, to file appeal in Higher Court, Nodal Ministry through delay on the part
the DAD HQrs accordingly, advice the Ministry of Def. (Fin), of Ministry to
PCDA/ CDA to File WP alongwith Stay to implement the Court render advice on
Application in High Court, order, the DAD HQrs the Court order,
immediately, to avoid contempt of accordingly, advice the the PCDA/ CDA
Court. If the appeal is to be filed in PCDA/ CDA to seek extension of
Apex Court on the advice of Solicitor implement the Court time from the
General of India, the Nodal section of order and file a Court, in
DAD HQrs office takes the action to file compliance report in consultation with
SLP in Apex Court in consultation with Court promptly. CGSC wherever
Controller concerned. required.
If the appeal filed in Apex Court is dismissed, the Hon’ble CAT order is to be
implemented with the approvalof Concerned Ministry/Min. of Def (Fin).
210
2.66. Action in contempt cases
The cases where contempt notice have been issued in the name of CGDA,
FA(DS) or Secretary of the Department, prompt action to defend the Contempt
Petition and to get the contempt notice vacated or to obtain stay order should be
initiated expeditiously and progress of the case shall be monitored by the
PCDA/CDA concerned. The impleaded officer should also be kept suitable
informed about the developments in the matter.
211
2.67. Filing of Special Leave Petition /Appeal
To ensure filing of Special Leave Petition/Appeal in the Supreme Court

of India before expiry of the limitation period of 90 days, the following timelines
are prescribed:
S. Process Timeline
No.
1. Examination and taking administrative decision by the 15 Days

Ministry/ Department.
2. Examination and advice/ opinion by the DoLA and Law 15 Days

Officers.
3. Drafting of SLPs and forwarding the same to the concerned 15 Days

Ministry/ Department.
4. Appeal of the draft SLP by the concerned Ministry/ 05 Days

Departments and providing necessary documents.
5. Preparing paper book and filing 10 Days
For filing statutory appeals, reviews, etc. where limitation period is 60

days or 30 days, the above timelines shall be reduced correspondingly.
There may be instances where Special Leave Petitions/Civil Appeals are

required to be filed in the Hon’ble Supreme Court on the issues which have
already been decided earlier in the Court. In such cases, while referring a
proposal to the Department of Legal Affairs to examine the feasibility of filing
SLPs/ CAs before the Hon’ble Supreme Court, similar cases/ issues, if any,
which have already been decided by the Supreme Court, should be highlighted
in the referring note. This shall enable them to keep in perspective in such similar
cases/issues while rendering advice/opinion.
212
2.68. Payment of Bills in respect of Government Counsel
The Government Counsel Fee Bills are collected by the Nodal Offices
and after conducting the prescribed checks, process the same for payment
through the Seller Payment Wing.
Govt. Counsel’s Legal Fee bills shall be settled promptly and within a
reasonable time period and in any case not beyond a month’s time from the date
of submission of such bills by the Counsel concerned. If any Officer is found
irresponsible in processing such bills, the Competent Authority should consider
taking appropriate action against him/ her in accordance with the rules.
213
2.69. Legal Information Management and Briefing System
(LIMBS)
(i) LIMBS is an online web portal maintained and developed by Deptt.

of Legal Affairs, Ministry of Law & Justice, New Delhi which caters a wide range
of information for effective monitoring of Court Cases.
(ii) Each Nodal Officer is required to be registered on the LIMBS portal.

The concerned Nodal Officers shall update the details of the Court Cases
monitored by them instantly on the portal as and when any fresh development in
the court case arises.
214
2.70. SERVICE OF SUMMONS
When summons are received for service, the original copy will be handed
over to the individual concerned; the duplicate copy received by the individual
and signed by the Accounts Officer/Senior Accounts Officer/ACDA-in-Charge
of the Establishment Wing will be returned to the issuing Court.
215
2.71. REPRESENTATION IN MILITARY COURT OF
ENQUIRY
(i) A Civilian Officer of the Defence Accounts Department may be asked to

assist at any Military Court of Enquiry but he will not sit as a member of such a
court.
(ii) In the event of a civilian officer of the Defence Accounts Department

finding himself unable to agree with the conclusions of the Court, it will be open
to him to record a note of dissent.
Any witness who is not a person subject to Army Act or not amenable to
Military Authority, may be summoned to attend Court of Inquiry in terms of
Section 135 of Army Act, 1950 read with Rules 179 (5A) of the Army Rules 1954.
216
2.72. General Guidelines on Correspondence
(i) Principal Controller/Controller will not make direct correspondence with

Heads of any foreign Diplomatic Missions in India. Such correspondence should
be routed through the DAD HQrs and the Ministry of Defence (Finance).
(ii) Principal Controllers/Controllers may correspond direct with the Govt. of

India and Service Headquarters only on routine matters. References relating to
interpretation of rules or rectification of anomalies in the existing rules will
invariably be addressed to the DAD HQrs with a comprehensive statement of
case where necessary.
(iii) Communications involving audit decisions or interpretations of rules, or on

other important matters (including cases having disciplinary aspect) on which
the Principal Controller's / Controller's opinion is required, addressed to the
CGDA or GOsC, or to any Defence Service authority superior to them, should
invariably be issued after approval by the Principal Controller/Controller or in
his absence by the Additional/Joint Controller and signed by the Group Officer.
(iv) An officer signing a letter will issue it under his own authority as such, and
not `for CGDA/Principal Controller/Controller'. Signature `for CGDA/Principal
Controller/Controller' will only be used when another officer is acting on behalf
of the CGDA/Principal Controller/Controller. In case where the Principal
Controller/ Controller or other officer whose authority' for issuing a
communication has been obtained, has been consulted, the junior officer who has
consulted him should commence his communication with the words "I am
directed, etc."
(v) In all field offices, all communications having financial bearings viz. LAC,
LPC, Outstanding Demands, Payment Authority, etc. issued by the Defence
Accounts Department must contain name, designation, e-mail (official) and
phone No. of the issuing authority.
(vi) Information required by Principal Controllers/ Controllers from Service

Headquarters for purposes of higher Audit should be obtained through the DAD
HQrs.
(vii) Official letters should be addressed to officers by their official designation

and should not bear any name on the cover, unless intended for an officer
217
personally regarding receipt/dispatch etc. of Top Secret/ Secret/Confidential
letters.
(viii) All correspondence with DAD HQrs should be made in standard format as
per the following specifications:
▪ The name of the office with DAD logo on left side.
▪ The name of the office and address should be in bilingual,
▪ The font to be used is “Times New Roman” with font size of 12,
▪ The spacing between lines be 1.5 and 6 points between the paragraphs,
▪ The left margin, right margin, upper and lower margin may be 1.5 inches,
0.75 inch, 1.0 inch and 1.0 inch respectively,
▪ The “Subject” and “Reference” may be written in full and in bold,
▪ The name of the Addressor along with the designation may be mentioned
in bold,
▪ The name and designation of the Addressor, along with complete address
is required to be mentioned,
▪ The case reference may be made in the following format:
01. Gist of the case
02. Point of doubt and the extract of it
03. Rule position on the subject matter
04. Views of the office on the subject matter
05. Decision requested from the HQrs.
06. Level of approval in the office.
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2.73. Authentication of orders and other instruments made and
executed in the name of the President of India
In furtherance to the instructions issued by the Ministry of Home Affairs

from time to time in sync with the orders of delegations made by the President of
India, the officers holding the post of Joint Controller General of Defence
Accounts/Senior Deputy Controller General of Defence Accounts/ Deputy
Controller General of Defence Accounts are authorized in the Defence Accounts
Department to authenticate (i.e. sign and issue) the orders and instruments made
and executed in the name of the President of India.
The above officers were authorized vide Authentication (Orders and other
instruments) Amendment Rules, 2009 through which an amendment to the
Authentication (Orders and other instruments) Rules, 2002 was issued by the
Ministry of Home Affairs.
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2.74. Office Orders
(i) Office Orders are issued through Part I and Part II office orders in
numerical order by each office. The serial number of each type will start from
January each year.
(a) Part I O.O relates to the procedure and internal working of the office and
will be maintained as a permanent record.
(b) Part II O.O relates to service events of officers and staff of the office, such as
appointments, transfers, promotions, punishments, etc.
(ii) Copies of Office Orders will be issued to all concerned Offices/individuals.
(iii) All Part II Office Orders will contain (1) Account No./Roster No. in respect
of SAOs/AOs (2) Name and Grade and (3) the Office/Unit/Formation where the
individual is serving etc., besides the other details that are required in connection
with the subject (Appointment/Transfer/Promotions/ Punishments, etc. as the
case may be) of the Part II Office Order.
(iv) All Part II Office Orders will be issued through HRMS.
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2.75. SECRET AND CONFIDENTIAL CORRESPONDENCE
(i) Detailed instructions regarding classification of all secret and confidential

papers are contained in the pamphlet Departmental Security Instructions issued
by the Ministry of Home Affairs and various orders on security issued by that
Ministry and DAD HQrs from time to time. All officers and other members of the
establishment who are required to handle such documents should carefully
study these instructions and ensure their strict compliance.
(ii) Some of the points to be observed in handling of secret and confidential

papers are as under:
(a) Top Secret papers must at all time and in all stages remain in the personal
custody of the officer responsible for dealing with them.
(b) These must invariably be addressed by name to the officer for whom they
are intended to and transmitted either in a secret box (specially used for this
purpose), or enclosed in a cover and sealed in the presence of the transmitting
officer. The transmission and custody of such documents be recovered by a
receipt system. The acknowledgment, when received, should be placed in the
same file and linked with the office copy. If it is not received within a fortnight
(one week for local delivery) from date of issue, steps will be taken by the issuing
authority to ascertain whether the document has in fact been received.
(c) Classified files and papers should always be kept in steel almirahs and
cabinets. The operating keys of these almirahs should be in the safe custody of
the officials concerned and the duplicate keys should be deposited in sealed
packets with the Security Officer. Any cabinet, etc. of which the duplicate key is
not traceable should not be used for storing classified papers.
(d) Classified papers to be sent from one room/building to another should be
locked in steel boxes.
(e) Top Secret/Secret/Confidential papers must be destroyed by burning in
the presence of the officer responsible for dealing with them.
(f) Office seals used for sealing classified papers should be accounted for at the
time of security check and should be under lock and key when not in use. Top
secret seals should normally be in the custody of the PCDA/CDA/Head of the
Office and in his absence with the next senior officer.
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2.76. Notification of Holidays
The holidays to be observed during a calendar year is notified by the

Department of Personnel and Training, Government of India and circulated by
the DAD HQrs.
The offices of the PCDA/CDA should also keep close liaison with the Local
Coordination Committees for obtaining the list of holidays especially the ones
which can be observed as per the decision taken by these committees.
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2.77. Observance of Government Drives on important matters
Directives issued by the Government for observance of various drives on

events of international, national or specific importance should be scrupulously
followed by all the Principal Controllers/Controllers offices.
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2.78. Parliament Matters
All parliamentary matters pertaining to the organization are centrally

monitored and a consolidated reply in the cases is furnished to the Ministry by
the DAD HQrs.
As per instructions of the Government, the Parliamentary matters should

be treated as urgent and replied on ‘TOP PRIORITY’ in a time bound manner by
all the Principal Controllers/Controllers for furnishing a consolidated reply to
the Ministry.
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2.79. RAJBHASHA CELL
Rajbhasha Cell functions under the Establishment Wing and is assigned
with the following tasks:
(a) implementation of Official Language Hindi;

(b) to encourage the officers and staff of the offices of the DAD HQrs/
PCsDA/CsDA to do maximum correspondence in Hindi;
(c) to conduct Hindi workshops;
(d) to provide assistance for translation of the drafts and instructions in Hindi;
(e) to carry out inspection of various Sections to monitor the compliance of
laid down percentage of work in Hindi;
(f) to provide assistance for compilation of details in the prescribed
questionnaire to be submitted to the Committee of Parliament on Official
Languages;
(g) to attend meetings of Nagar Rajbhasha Karyanveyan Samiti; and
(h) to submit reports and returns to the DAD HQrs.
The work procedure regarding Rajbhasha Cell is laid down in the

“MANUAL REGARDING THE USE OF OFFICIAL LANGUAGE HINDI”
published by Department of Official Language, Ministry of Home Affairs,
Government of India.
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2.80. Official Language
Vital aspects
Article 343 in Part XVII of the Constitution of India lays that the Official
Language of the Union shall be Hindi in Devanagari Script. The form of
numerals to be used for the official purposes of the Union shall be international
form of Indian numerals.
An act called “The Official Language Act, 1963” (as amended) has been
enacted by the Government to provide for the languages of the Union, for
transaction of business in Parliament, for Central and State Acts and for certain
purposes in High Courts.
In exercise of the powers conferred by Section 8 read with Sub-Section (4)

of Section 3 of the Official Languages Act, 1963, the Government has
promulgated the Official Languages Rules, 1976 (use for official purposes of the
Union) (as amended).
As per Article 351 in Part XVII of Constitution of India, it shall be the duty
of the Union to promote the spread of the Hindi Language, to develop it so that it
may serve as a medium of expression for all the elements of the composite
culture of India and to secure its enrichment by assimilating without interfering
with its genesis, the forms, style and expressions used in Hindustani and in other
languages of India specified in the Eighth Schedule, and by drawing, wherever
necessary or desirable, for its vocabulary, primarily on Sanskrit and secondary on
other languages.
Incentives for Hindi
In order to promote use of Hindi in official work, the Government has laid
down several policies and rules from time to time which define the various
incentives available to the Government employees for the purpose. These policies
and rules have been reproduced in Appendix 7 to FR & SR, Part-I (General Rules).
226
2.81. Library
In order to have a single trustworthy source of information by which all
copies of the Regulations can be checked, a central library of Books of Regulations
will be maintained for reference.
One copy of every current Book of Regulations, including Departmental

Codes and Manuals, Handbooks, Tables, Army Lists, Gazettes and Files of letters
received from the various Departments of the Government of India, DAD HQrs
and Integrated Headquarters of Ministry of Defence (Army/Navy/Air Force,
etc.), will be placed in the library and kept up-to-date.
All Army Instructions, Army Orders and other orders will be connected
and cross-referenced. One copy of every previous edition of Regulations and
Handbooks, etc. should also be kept for future reference in order that old
questions may be decided with the aid of the Rules that were in force at that time.
The books, etc. will not be removed from the library (except when required by an
officer who will obtain them on requisition) but will be available for consultation
in the library at any time by all members of the office.
The Officer-in-Charge of the Establishment Wing will be responsible for

seeing that all books in the library are catalogued and that the catalogue is kept
up-to-date in the centralized inventory management system.
Every Officer, on assuming charge of the Records Section, will satisfy

himself to the state of the library. Unless, at the time of taking over charge, it is
reported that the books are out of order or that any volumes are missing, it will
be assumed that library was received in good order and the officer will
henceforth be personally responsible for any defects.
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2.82. DELEGATION OF POWERS
The PCsDA/CsDA, in the matter of incurring contingent expenditure are
empowered to exercise all powers of Head of Department laid down in Schedule
V of Delegation of Financial Powers Rules vide Government of India, Ministry of
Finance (Defence) letter No. 13196/(1)/70/Acts/AN dated 03-07-1970, as
amended from time to time. The Ministry of Defence (Finance) vide letter No.
F.15(1)/C/04(1646) dated 09.12.2004, as amended from time to time, delegated
powers of Head of Departments to the Integrated Financial Advisers at par with
the Controllers of Defence Accounts.
In the above capacity, the PCDA/CDA/PIFA/IFA may declare any
gazetted officer serving under his subordination as Head of Office in his office for
exercising the financial powers to the extent delegation has been made to
him/her under different events (leave/ tour/ etc.) under GFR, 2017 & DFPR,
1978 & subsequent amendments.
228
2.83. GENERAL DUTIES AND RESPONSIBILITIES OF PRINCIPAL
CONTROLLERS/ CONTROLLERS
1. In the Principal Controllers/Controllers Offices, as a general rule, no

section will be under the direct control of the Principal
Controller/Controller.
2. His/Her time will usually be fully occupied in dealing with the work as
Financial Adviser, organisation of the work under his control, important
cases that demand his personal attention, disciplinary cases, and in
visiting Headquarters of Commands, Areas, etc. and periodical
Inspections of sub-offices. Personnel management with special emphasis
on staff welfare also engages his/her personal attention.
3. Principal Controllers/Controllers are responsible for communicating to

the officials under their control all orders affecting expenditure which
may concern them, whether such orders are in the form of corrections to
Regulations, Defence Audit or Account Code or otherwise. It is further the
duty of Principal Controllers/Controllers to issue thereon any subsidiary
instructions that may be necessary or desirable.
4. Principal Controllers/Controllers may correspond direct with the

Government of India and Service Headquarters on routine matters and
others which do not affect the personnel of the Department. References
relating to interpretation of rules or rectification of anomalies in the
existing rules will under no circumstances be made by Principal
Controllers/Controllers to Services Headquarters or Deputy Financial
Advisers, either officially or Demi officially. Such references will
invariably be addressed to the DAD HQrs with a statement of the reasons
where necessary.
Note. Demi official correspondence between Controllers and Service

Headquarters or Deputy Financial Adviser is permissible for exploring
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the ground for forming a clear appreciation of the background of the
problem without entering into discussion on accounting or audit
principles or on issues of controversial nature.
5. When a Principal Controller/Controller considers that the prescribed

practice or procedure is unsatisfactory or capable of substantial
improvement and desires to introduce improvement in procedure, he/she
may, where he /she is competent to take decisions on such matters,
implement the same and apprise the DAD HQrs of the action taken,
indicating clearly in what respects the prescribed procedure is held to be
defective, inadequate or unjustifiable and the specific merit of the
proposed procedure over the current or authorized procedure.
In cases where the decision in the matter rests with the CGDA, the
PCDA/CDA may refer to the CGDA direct. The DAD HQrs will obtain
the views of the other PCsDA/CsDA, if considered necessary.
6. At the time of transfer, the relieved Principal Controller/Controller will

hand over to his/her successor all keys, the Imprest money, personal seal
used for `top secret' letters/documents and all valuable and `secret
documents' in his/her personal charge, and the relieving Principal
Controller/Controller will sign the prescribed forms and registers in
token of having received them. The personal seal of the relieved Principal
Controller/Controller will be destroyed by the relieving Principal
Controller/Controller who will furnish a certificate to that effect to the
DAD HQrs.
All reports of handing and taking over charge will be sent to the DAD
HQrs on the day the transfer of charge is affected.
7. When a Principal Controller/Controller is relieved, either permanently or

temporarily, of the charge of his/her office, he/she will bring to the notice
of his/her successor any items of importance in connection with the
230
working of the office, or items of work which are pending and likely to
call for his/her special attention or scrutiny. The relieved officer is, in
short, expected to place the results of his/her special knowledge and
experience of the office at the disposal of his/her successor in order that
the latter may not stand handicapped by ignorance of the state of the
office or of such matters as required his/her special and personal
attention and that, as far as possible, any breach of continuity in
procedure or practice may be avoided in regard to case and matters
actually under settlement.
8. In all matters of accounts and audit, Principal Controllers/ Controllers

will carry out the instructions of the DAD HQrs. They will keep their
books of accounts in such form as he may direct. They must also be
prepared to give any explanation that DAD HQrs may require.
9. Principal Controllers/Controllers are responsible to determine the

requirements of officers and establishment for their respective offices with
due regard to efficiency and economy, and to report their requirement to
the DAD HQrs as and when called for by him/her. They will ensure that
departmental efficiency is maintained to the highest degree.
10. Principal Controllers/Controllers will ensure the punctual submission of

all prescribed periodical statements, accounts, reports, etc. to the
authorities concerned.
11. Principal Controllers/Controllers will not give any audit decision on a

hypothetical case. They will take particular care to ensure that an audit
decision is given only after full particulars of the specific case, which gave
rise to the question referred to the audit office, have been obtained.
Note: The term "audit decision" as used in this para refers to doubtful questions
arising from material audit exercised by the Defence Accounts
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Department and not to statutory audit exercised by the Comptroller and
Auditor General.
12. The Principal Controllers/Controllers will adopt the following guidelines

in the interpretation of rules, orders etc.
(i) Only the dictionary meaning of words will be adopted in interpretation in

audit.
(ii) Where the rules, orders, etc. are susceptible of clear and unambiguous
interpretation on the basis indicated in (i) above, but such interpretation is
contested by the administrative authorities on the ground that it is not in
conformity with the intention of the rules, orders, etc. they will be
informed that since such intention is not borne out by the text of the rules,
orders, etc. action should be initiated by them for suitable amendment of
the rules, orders, etc. so that the intention is explicitly borne out by the
amended text.
(iii) Where the rules, orders, etc., are not susceptible of clear and
unambiguous interpretation or where there is inconsistency in a new rule
with some of the existing rules, a reference will be made direct to the
DAD HQrsfor ruling without obtaining the view of other PCsDA/CsDA.
(iv) This rule applies to all matters of accounts and audit procedure and
administration.
(v) Clarifications required by PIFAs/IFAs on all functional matters will be

given by IFA Wing and administrative matters will be given by the
concerned sections/wings of DAD HQrs.
13. A Principal Controller/Controller may not over-rule a decision given by a

predecessor in office without reference to the DAD HQrs.
232
14. Principal Controllers/Controllers will enforce the submission on the
proper dates and in the prescribed forms of all accounts and statements
due by disbursing Officers and others, and will report delays to the
proper authorities, after taking all necessary action to correct the
irregularities. The non-receipt on due date of a statement will not absolve
a Controller from responsibility for the omission of necessary information
from any return rendered by him/her, unless he/she is able to show that
he/she took all possible precautions for the due submission of the
statement in question.
15. Principal Controller/Controller will co-operate with General Officers

Commanding, Heads of Departments and with the executive Officers, in
all matters of accounts affecting the duties of their appointments and as
far as practicable, will bring to the notice of the General Officers
Commanding or Heads of Departments, every question of financial
importance which either comes to their knowledge in the course of their
work, or which they may be able to investigate independently. Whenever
a Principal Controller/Controller is consulted by a General Officer
Commanding or the Head of a Department regarding the necessity for the
sanction of the Government of India to any proposal involving
expenditure, he/she will submit a reasoned answer showing why he/she
hold one view or another.
16. When proposals relating to expenditure, or in connection with economies,

are made by General Officers Commanding or Heads of Departments,
Principal Controllers/Controllers will assist them in recording their
opinions as to the advisability of proceeding with the course of action
suggested and will check the financial effect of such proposals as
estimated by the authority with whom the proposal originates.
17. Principal Controllers/Controllers are empowered to call on the heads of

military executive departments for any information they may require,
either to elucidate a charge, or to examine a proposal involving
expenditure. But while a careful scrutiny of the financial results of
executive departmental administration is essential, Principal
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Controllers/Controllers must not exceed the limits of this duty, and will
strictly observe the broad distinction between financial and
administrative control. They may call for an explanation of any unusual
charge or questionable entry in the accounts and claims submitted to
them. If this affects the acts of Heads of Departments, an enquiry should
be made by the Controller personally.
18. Principal Controllers/Controllers will take steps to ensure that the

estimates for locally controlled Heads prepared by administrative
authorities which are required to be submitted to them for check, are
rendered by the authorities concerned on due dates. They will take similar
action to enforce the punctual submission of the annual estimates of cash
requirement by military disbursing officers. They are charged with the
responsibility of examining these estimates to see that these are for
sanctioned services only and will arrange where necessary, for the grant
of cash assignments on civil treasuries in their favour.
19. Principal Controllers/Controllers are responsible that all receipts and

expenditure that appear in the accounts of Defence Disbursing Officers,
and others as well as receipts and expenditure appearing in their own
accounts, are adjusted as far as possible in the accounts for that month of
(other month in which they have been brought forward). Receipts and
expenditure appearing in the Settlement accounts will be adjusted as far
as possible in the month's accounts open at the time of their receipt.
20. Principal Controllers/Controllers will carefully watch the progress of

Defence expenditure (i) by seeing that expenditure is not diverted from
the purpose for which it was sanctioned (ii) by observing how new
measures sanctioned during the course of a year affect defence
expenditure and (iii) by reviewing expenditure at the time it is incurred,
and periodically, by comparison with the sanctioned estimates.
234
Note. The above rules will apply in the case of those heads of accounts
effective, the budget estimates for which are checked or prepared by
Principal Controllers/Controllers, and in the case of MES expenditure.
21. Principal Controllers/Controllers will enforce the prompt settlement of all

advances or other outstandings against individuals or departments. They
will see that the balances in the hands of military disbursing officers, and
balances of stores (including reserves) with units or store depots are kept
within the prescribed limits. They will enforce timely adjustment of all
outstanding balances, and ensure that deposits received from contractors
and subordinates are promptly brought to account.
22. Principal Controllers/Controllers will see that all claims against foreign
Governments are supported by the necessary vouchers and documents,
and that they are promptly forwarded through the proper channel for
final settlement. They will at all times, but specially in the case of field
operations or other special services, take such steps as may be necessary
to ensure that all claims against Government are paid and adjusted as
soon as incurred.
23. Principal Controllers/Controllers will arrange for the local audit of store
accounts and periodical inspections of the cash accounts of all units and
formations in their audit areas. Principal Controllers/Controllers will also
arrange for the super review of the accounts of typical units and
formations and detailed inspection of LAOS/RAOs office by IDAS
officers and submit to the DAD HQrs in April each year, a report about
the extent of super review carried out during a financial year with a brief
note on the important points (including failures in local audit) noticed in
super review.
24. Principal Controllers/Controllers will exercise the prescribed check over

new contracts to see that they are in order and consistent with the rules in
Financial Regulations for the Defence Services, Part I, Volume I and that
235
no local purchase of stores are arranged, supplies of which are made by a
Central purchasing authority, except in the circumstances and in the
manner prescribed in the Rules regarding such purchases.
25. If a Principal Controller/Controller desires to relax audit temporarily in a

matter which concerns his own office or his subordinate offices, he should
invariably refer the case to DAD HQrs for obtaining prior concurrence.
26. A Principal Controller/Controller may not (1) propose increases in

establishment or other expenditure in departments other than his own, or
(2) on any account join in protesting against any retrenchment or
economy which a Competent Authority may order, or (3) suggest
expedients for the evasion of the natural operation of a rule, when
reporting on claims to pension or allowances of any kind, his duty being
merely to report how a claim is affected by the rules, (4) on his own
motion suggest relaxation of leave or pension rules except in the case of
officers and subordinates of his staff, or (5) advise upon any questions
relating to pensionary claims (other than wound or injury pensions) until
a Government servant retires, or is about to retire from the service, except
upon a reference from the Government of India, Services Headquarters or
the DAD HQrs.
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2.84. General Duties of Group Officers, ACDA-in-Charge/
SAO/ AO/ Assistant Director (Official Languages) and AAO of
Sections
2.84.1. General duties of Group Officers
1. Group Officers are placed in charge of a Group consisting of two or more

Sections and are responsible for the efficient working of those Sections. They are
expected to take full responsibility in all matters arising out of the work of the
Sections in their groups, referring such matters as are beyond their powers or of
which they themselves are uncertain, to the Joint Controller/Additional
Controller/ Controller/ Principal Controller of Defence Accounts, as the case
may be for counsel or decision.
2. (i) Group Officers are responsible for ensuring that the training and
instruction of personnel serving in Sections in their Groups is carried out
efficiently.
(ii) Group officers will exercise general supervision of the work of the ACDA-
in-Charge/ Senior Accounts Officer, Accounts Officer, Assistant Accounts
Officers, Senior Auditors/ Auditors and Clerks of the sections in their Groups
and see that the duties laid down for them are being carried out properly and
regularly. For this purpose, they may, at their discretion, receive papers, directly
from Assistant Accounts Officers.
(iii) Group Officers will locate the areas of work where delay stake place and
take effective steps to eliminate the delay. They will also keep a constant watch
on the qualitative adequacy for the work done in their Groups and ensure that
the quality of work is not sacrificed for the purpose of achievement of
quantitative output. They may have to check, of example, whether interim reply
is issued where a final reply could have been given or information, which is
already available, is again being asked for. In other words, Group Officers will be
237
responsible for improving the quality of work along with the speed thereof. For
this purpose, Group Officers will if necessary institute a system of sample checks
of the output by the operators in their jurisdiction.
(iv) Group Officers will watch with particular care the procedures followed by
the Sections in their Groups in the disposal of all work, correspondence, auditing
and accounting, to ensure that there is no departure from the procedure, as laid
down in the DAD Manual. They must however, constantly examine the
procedures to see that they result in the efficient and prompt despatch of work.
Wherever Group Officers consider that the prescribed procedure is not conducive
to efficiency and promptness, they will bring such cases to the notice of Joint
Controller/Additional Controller/ Controller/ Principal Controller of Defence
Accounts, together with suggestions for improvements.
3. (i)Group Officers will ensure that the rule of audit is understood by all in
the correct perspective, which is to secure a better value for the tax-payer's money
in the field of Defence Expenditure. It is not enough in audit to act as a critic of
the transactions in regard to their regularity with reference to the rules and
orders. The attention in audit has also to be focused on the propriety aspect by
examining the transactions against the objectives in view and highlighting areas
of wastages, extravagance and infructuous expenditure. It is only with due
emphasis on higher audit that a meaningful and constructive role can be played
by the Defence Accounts Department.
(ii) Group Officers will evolve suitable techniques for conducting higher audit.
They will identify the vulnerable areas where huge discretionary expenditure is
involved and conduct intelligent investigations. The aim of such investigations
will be to bring out inter-alia;
238
(a) Delays in execution leading to non-availability of products and services in
time and thereby causing additional expenditure;
(b) Physical returns not matching with the anticipation as well as monetary
outlay;
(c) Blocking up of funds through excessive inventory holding;
(d) Non-utilisation or under-utilisation of facilities created, etc.
(iii) To provide leadership and technical guidance in the field of higher audit
will be the special responsibility of Group Officers.
4. (i) Group Officers will hold conferences with the ACDA-in-Charge/ Senior
Accounts Officers/ Accounts Officers, Assistant Accounts Officers and Senior
Auditors/ Auditors discharging supervisory duties for the purpose of
examination of A.Is/ A.EIs/ N.Is and other orders issue by the Government of
India, including new rules and additions and amendments to existing rules and
regulations, and letters from DAD HQrs, which affect the work of their Groups.
(ii) The conferences will be held fortnightly. A shorter interval may be adopted,
if practicable. When a Group Officer holds charge of more than one functional
Wing/Sections, e.g. Personnel (Payment) and Accounts Wings, the conference for
the different functional Wings/ Sections will be held separately.
(iii) In the Group Officer's conference, all orders referred to in sub-para(i) above
will be reviewed to see.
(a) whether the wording leaves any reasonable room for doubt as to the
intention;
(b) whether the extent and scope of applicability is perfectly clear; and
239
(c) whether practical effect can be given in audit.
(iv) The examination of an order will be carried out at the first fortnightly
conference held after the receipt of the order.
(v) Group Officers will ensure that all important and doubtful points, which
may arise in the course of implementation of the orders in audit, are brought up
in the conference and will particularly encourage the junior members of the staff
to participate in the deliberations. The conference should also be used by the
Group Officers as a means of tuning up and improving the quality of work in
each Wing/section with in their Groups.
(vi) A minute book will be maintained under the personal supervision of the
Group Officer for recording the result of the examination of the orders and the
discussions thereon. The entries in the Minute Book will show the numbers and
dates of all orders received, the instructions issued as a result of the examination
and the decisions arrived at on any other matters, discussed at the conference.
(vii) Ordinarily, when an order pertaining to more than one Audit Section is
reviewed, the Group Officer, who first discusses the order in his conference, will
transmit a draft office instructional order to other Group Officers concerned for
their consideration and eventual approval and issue by the Joint Controller/
Additional Controller/ Controller/Principal Controller of Defence Accounts.
5. Group Officers may hold, in addition to the conference referred to in para 4

above, a meeting with the ACDA-in-Charge/ Senior Accounts Officers/
Accounts Officers of the Sections once a week, to discuss, inter-alia, the following:
(a) discipline;
(b) general administrative matters;

240
(c) arrears in work and steps for elimination of arrears; and
(d) examination of points arising in one Section in regard to their applicability

in other Wings/ Sections.
6. Group Officers will review the Registers submitted to them with a view to
scrutinizing that they are properly maintained. In case of Demand Registers,
Audit Progress Registers, etc. they will ensure that special steps are taken to clear
the old outstanding items.
7. Group Officers in-charge of PAOs, etc. will also follow the above charter of
duties with such modifications as the local conditions justify.
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2.84.2. General Duties of ACDA-in-Charge/Senior Accounts
Officers/Accounts Officer/ Assistant Director (Official Languages) of
Wings/Sections
l. As Gazetted Officers, it is very necessary for ACDAs-in-Charge/ Senior

Accounts Officers/ Accounts Officers/ Assistant Director (Official Languages) of
Wings/ Sections to see what their main functions are and to have a sense of
proportion in marshalling their energies towards the day's work. The following
points are, however, emphasized as being the special duties of every ACDA-in-
Charge/Senior Accounts Officer/Accounts Officer/Assistant Director (Official
Languages).
(a) Education: A portion of the day's time should be allotted for going
thoroughly into the matters of procedure and of law relating to their sections'
work and to make known to others the result of their study and their researches
on these matters. One of the essentials of section management is that whatever
has been studied with care and thought should be broadcast to those to whom it
may pertain, so that the knowledge can be diffused to the widest area possible.
Short conferences and a little" sermonising" on typical cases should be resorted to
"Education" in the Section is thus a primary part of the duties of an ACDA-in-
Charge/Senior Accounts Officer/Accounts Officer/ Assistant Director (Official
Languages) of Wing/Section.
(b) Direction: The clerks who, by temperament, age or lack of education are
only fit to receive and carry out simple directions will be given clear and
actionable directions, i.e. directions which they can carry out in the course of the
day or in the course of a check period and which is within their physical powers,
e.g. arithmetical check, pairing, copying, etc. To a large extent, this will be done
on the Inward Dak itself. The more important and difficult cases should not be
allowed down to those who cannot deal with them properly. It is the duty of the
ACDA-in-Charge/Senior Accounts Officer/Accounts Officer/ Assistant Director
(Official Languages) of the Wing/ Section to see who are the persons to whom
242
this method of treatment is more conducive to efficiency and to find out the job
for the man and the man for the job.
(c) Sampling: Sampling is the process by means of which the ACDA-in-

Charge/ Senior Accounts Officer/Accounts Officer/ Assistant Director (Official
Languages) of the Wings/ Sections should see that what he had done by the
above two methods has borne fruit. He must see that the education that he has
imparted is being applied in day-to-day practice, that it has been intelligently
pursued and that the principles are well digested. He must also see that there is a
loyal adherence to directions which he has given, a prompt report of failure of the
time table and a proper expression of the practical difficulties. To this end he will
have to see the work, not on the basis of a routine percentage check off actual
data, but by test checks suited to the requirements of each case. However, he
need not exercise a further check on the arithmetical calculations over and above
the check exercised by the Assistant Accounts Officer.
(d) Management: It is an important part of the duties of a ACDA-in-Charge/

Senior Accounts Officer/ Accounts Officer/ Assistant Director (Official
Languages) of the wing/ section to ensure that the staff serving under them
observe the office routine properly and apply themselves diligently and earnestly
to it. For this purpose of ACDA-in-Charge/Senior Accounts Officer/Accounts
Officer/ Assistant Director (Official Languages) should invariably make around
of his section at the commencement of the office hours particularly to start the
section on the day's work and to see that the staff is actually busy attending to the
office work and their respective task. Such rounds will tend to discourage waste
of time by the staff in idling or chit chatting and encourage business like habit in
them.
2. It is very desirable to ensure that the good work done by the department is
duly publicized. Whenever an ACDA-in-Charge/Senior Accounts
Officer/Accounts Officer/Assistant Director (Official Languages) of the
Wing/Section find a good point of financial advice which avoids or puts an end
243
to wasteful expenditure, it is his duty to bring it to light to the Head of the office,
through proper channels, for inclusion in the General State of Accounts. To
enable this being done, ACDA-in-Charge/ Senior Accounts Officers /Accounts
Officers/ Assistant Director (Official Languages) should get into the habit of
framing issues properly on each case, setting forth clearly the law applicable and
the defects of procedure, if any, that were noticed and thus ventilating the
irregularity. A good practice will be to make a "write-up" of every bad case they
have noticed and to review it.
3. It is expected of all Gazetted officers that they must disclose to the Head of
the Office the lack of adequate work of the type expected of them, in the same
manner as they would take complaints of over-work to him.
4. ACDA-in-Charge/ Senior Accounts Officer/Accounts Officer/Assistant

Director (Official Languages) of the Wing/ Section are responsible for the
efficient management of the sections of which they have charge. The efficient
management of a section entails a thorough knowledge of the work of the Senior
/ Junior Translation Officers, Senior Auditors, Auditors and Clerks and Assistant
Accounts Officers in the wing/ section. The state of work in a Wing/ Section
reflects the abilities and supervision of the ACDA-in-Charge/Senior Accounts
Officer/Accounts Officer/ Assistant Director (Official Languages).
5. The more important of their routine duties are:
(i) to ensure that the Assistant Accounts Officers in their sections are
thoroughly qualified and capable of managing the groups allotted to them;
(ii) to see that the Senior/ Junior Translation Officers, Senior Auditors,
Auditors and Clerks in the wing/ section are proficient in their duties and that
those that are not up to standard are instructed by the Assistant Accounts
Officers until they have attained a satisfactory degree of proficiency;
244
(iii) to satisfy themselves that the distribution of work amongst the
Senior/Junior Translation Officers, Senior Auditors, Auditors and Clerks is
satisfactory and that each individual is made responsible for a specific task. The
progress of work should be watched closely and all cases where the output is
unsatisfactory must be investigated. A poor output due to slackness must not be
condoned, where it is the result of genuine difficulties these must be examined
and steps taken 'to remove them;
(iv) to see that the seating arrangements in the office are made to the best
advantage and that current work, section files and current records are kept tidily
on racks or tables conveniently placed for use of the Senior/Junior Translation
Officers, Senior Auditors, Auditors and Clerks;
(v) to see that there are no unauthorized deviations from the procedure
prescribed for accounting and auditing but at the same time they should not
hesitate to suggest, a simplification or improvement of the methods in use, if such
suggestions are calculated to produce high efficiency in work or output or both;
(vi) to attend to important correspondence themselves and delegate to their

Assistant Accounts Officers, for personal attention, correspondence that is not of
sufficient importance to be dealt with by themselves. All correspondence should
be dealt with correctly and expeditiously; all outgoing correspondence should be
clear and concise;
(vii) to bring to the notice of the Principal Controller / Controller all cases of
serious financial irregularities and other important objections;
245
(viii) to maintain discipline in their sections and encourage regular and punctual
attendance by being regular and punctual themselves. On no account should
loitering or otherwise wasting time during office hours be tolerated.
6. They will be responsible for maintaining an efficient check of the work of

Assistant Accounts Officers, Senior/Junior Translation Officers, Senior Auditors,
Auditors outside the Main office submitted to their sections and or bringing to
the notice of their superior officer instance of bad work on their part.
7. They will ensure that note books of orders and workbooks are properly
maintained by the Assistant Accounts Officers, Senior/Junior Translation Officers,
Senior Auditors, Auditors and Clerks serving under them.
8. Assistant Director (Official Languages) will also ensure:
(i) Implementation of Official Language Policy.
(ii) Implementation of Hindi Teaching scheme.
(iii) Holding of quarterly Meeting of Official Language implementation

committee in the Main Office & suboffices and monitoring of the follow up action
based on the minutes. Pay visits to sub-offices where OLI committees have been
setup.
(iv) Imparting training in Hindi Workshops.
(v) Supervision of translation book done by translators.
246
2.84.3. General Duties of Assistant Accounts Officers
The Assistant Accounts Officer of a section is responsible to the ACDA-in-

Charge/ Senior Accounts Officer/Accounts Officer, for the efficient management
of his section, for keeping the work current and for ensuring that the efficiency of
the work is maintained at the highest level. His main duties are briefly as follows:
1. He must have a thorough knowledge, of all branches of the work with

which his section deals and must ensure that the procedure laid down for the
disposal of all such work is followed.
2. Under the orders of the ACDA-in-Charge/Senior Accounts

Officer/Accounts Officer, he must distribute work so as to secure the maximum
output in the minimum of time.
He must know precisely from day to day.
(a) the number of letters unanswered and why;

(b) the number of accounts, bills and vouchers unaudited and why;
(c) the number of accounts, returns and statements over due from his section
and the reasons why;
(d) the number of accounts, returns and statements due to the section but not
received. He should promptly bring to the notice of the ACDA-in-Charge/Senior
Accounts Officer/Accounts Officer all cases in which delay or accumulation is
anticipated:
3. He must scrutinize carefully all replies to correspondence, statements and

returns prepared by his section which are required to be issued under the
247
signature of the ACDA-in-Charge/ Senior Accounts Officer/Accounts Officer.
The objects of this scrutiny is to ensure:
(a) In the case of draft replies:
(1) that the reply is correct;

(2) that it deals with all the points raised;
(3) that it is couched in clear and intelligible terms;
(4) that due dates for issue of reminders are clearly and prominently noted on
all office copies of documents on which further action is necessary.
(b) In the case of statements, returns, etc. that the statistics or information given
are accurate in respect of the period which they cover.
4. In dealing with correspondence he must take care to see that it is not

protracted. Every letter written must be with the object of reaching finality and he
should on no account pass drafts which are of a temporizing nature and are likely
to prolong the settlement of the point at issue. He will see that when a case is
submitted to or through his ACDA-in-Charge/Senior Accounts Officer/Accounts
Officer reference is made to all relevant rules and up-to-date corrections thereto.
5. In the case of returns, statement accounts, letters, replies to objections, etc.,

due to the section, the periodic issue of reminders must not be considered by him
as a discharge of the responsibilities of his section. Unless good and definite
reasons are known to the cause of delay, he should ordinarily after the issue of
the first reminder which brings no response, bring the matter to the notice of the
ACDA-in-Charge/ Senior Accounts Officer/Accounts Officer for special action.
This is particularly essential in the case of outstanding demands accounts and
replies to objections.
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6. In regard to the supervision of audit of accounts carried out by his section,
he is not expected to go over the entire ground covered by auditors. It will be
sufficient for him to institute test checks on their audit. These test checks should
be designed so as to satisfy himself that the audit has been properly done. But if
on applying a test check to an account he finds that it has not been correctly
audited. It might be necessary for him to increase the scope of his test check on
that particular account. If such a test check brings out evidence of careless work
or other unsatisfactory features, it is his duty to arrange, under the orders of the
ACDA-in-Charge/ Senior Accounts Officer/Accounts Officer, for the audit to be
done over again and done properly, and at the same time, to take steps to prevent
a recurrence of incorrect or unsatisfactory audit. The disciplinary aspect of the
case will also be brought to the notice of the ACDA-in-Charge/Senior Accounts
Officer/Accounts Officer where required.
7. With regard to bills, the duty of checking arithmetical calculations, rates, etc.
is primarily that of the auditing staff. The Assistant Accounts Officers should
check arithmetical calculations in 5% of the documents disposed of by him in a
day, if there is enough load, otherwise, in a week, irrespective of the amount
involved in the documents. The Assistant Accounts Officers should make suitable
enfacement on the document or documents so checked. Maintenance of separate
record of the checking done by the Assistant Accounts Officer is not necessary.
With regard to the rates etc., the Assistant Accounts Officer should institute a
periodical Test Check. For the rest, his duty in checking bills will be to see, inter-
alia, that the charge is authorised, that it is accompanied by the necessary
certificates, etc. and that all conditions connected with the charge have been
fulfilled and that it purports to be correctly signed by the proper authority, where
necessary.
The following checks will be exercised by Assistant Accounts Officer for

ensuring audit verification of the specimen signature of claimants before
payment of bills. In all the cases where verification is done it will be so indicated
on the vouchers.
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Nature of the claims Percentage of check
Verification of specimen signature 5% in respect of claims below Rs 1 Lakh.

of Claimants and sanctioning
100% in respect of claims for Rs 1 Lakh and
authorities before payment of all
above
bills/ claims
Assistant Accounts Officer will also ensure that the Task Holders exercise 100%
check of specimen signature in respect of all claims and sanctions, and that the
endorsement of verification of specimen signature is so indicated on the
bills/sanctions.
Note: The extent of check of arithmetical calculations by the Assistant Accounts Officers
prescribed above, will apply in the case of all documents requiring action in accounting,
and audit.
8. Objection statements on accounts or bills must be carefully scrutinized by

him to see that they are valid and clearly set out and also that the objections are
not raised piece-meal. If the passing of a bill or an account is dependent on some
action to be taken or condition to be fulfilled by the authorities concerned, the
action required or the conditions to be satisfied are to be clearly and
unmistakably defined.
9. He must review carefully all registers which the section is responsible for
maintaining and must see that they are written up-to-date neatly and in their
correct form and that they are submitted to the ACDA-in-Charge/ Senior
Accounts Officer/ Accounts Officer for inspection on the due dates. He is
responsible for the safe custody of valuable registers like Demand Registers,
Register of Payment to Local Purchase Contractors, Audit Progress Registers, etc.
10. He must constantly review all outstanding demands and objections and
bring to the notice of the ACDA-in-Charge/ Senior Accounts Officer/ Accounts
250
Officer all cases in which outside authorities are responsible for undue delay in
their settlement.
11. He must see that the duties of writing up section note books are suitably
distributed to certain assistants in the section, that such distribution is left clearly
as a continuous record and that a proper handing over of these duties is carried
out at every change among the assistants performing them. He should see that no
congestion occurs in the transmission of batches of orders of decisions requiring
note. He must examine the section note books at frequent intervals to see that
they are kept up-to-date and watch that the notes are extracted neatly and
intelligently and that the indexing is done in the best possible way to facilitate
easy reference.
12. He should see that the duties of correcting regulations and pamphlets of
instructions or other publications affecting the work of the section are duly
distributed to assistants, that the distribution has been placed on record so that
no evasion of responsibility is possible at any time, and that such duties are
formally handed over when any change in assistants takes place. He should
frequently examine these books of publications to see that they are being kept up-
to-date and that the initials of the assistants responsible are entered up in the fly
leaf appended as a register of corrections.
13. The maintenance of section files and current records in an orderly manner
should always receive his closest attention. He should occasionally examine the
files to see that they are properly linked and cross-linked in the prescribed
manner.
14. A section cannot do its work efficiently unless there is a high standard of
conduct and discipline among its personnel. The Assistant Accounts Officer is in
closest touch with the members of his section. He knows or ought to know the
character and temperament of each individual intimately, and for this reason the
251
measure of his responsibility for maintaining discipline, regularity in attendance,
punctuality and for ensuring the prompt despatch of work is great. He is
expected to be courteous and firm with his men and should give them all the
assistance and guidance they require.
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2.85. Powers delegated to the AAOs
(i) Grant of 4 days Casual Leave at a time to Gr. ‘B’ & ‘C’ Non-Gazetted
employees.
(ii) Grant of 2 days RH at a time to Gr. ‘B’ & ‘C’ Non-Gazetted employees.
(iii) (a) Grant of EL for 12 days at a time to Group ‘B’ & ‘C’ Non-Gazetted
employees.
(b) In the case of AAOs who are themselves heading sub offices like AAO
GE, AAO BSO, ALAO & AAO DEO etc. the powers for grant of CL & EL may
be as under.
(i) Grant of CL upto 6 days at a time to Group ‘B’ & ‘C’ Non-Gazetted
employees
(ii) Grant of EL for 25 days at a time to Group ‘B’ & ‘C’ Non-Gazetted
employees.
(iv) Writing of APARs of Group ‘B’ & ‘C’ Non-Gazetted employees
(v) Signing of all routine correspondence except correspondence involving

decision on audit, accounting and payment matters and relating to discipline,
issue of reminders, Part-II Office Orders notifying promotion etc.
(vi) Powers to attest entries in the first page of Service Books of Gp. `C'
employees.
(vii) Issue of Orders for destruction of time expired records other than
confidential records and service books subject to overriding provisions in the
relevant office manuals and other connected orders.
(viii) Powers to deal with cases relating to admission to GPF/Allotment of

account number and furnishing of annual statements.
(ix) Issue of leave admissibility report except in the cases of LPR/Terminal

leave.
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(x) Full powers to pass the requisition for advance of TA/DA/Pay etc. on
temporary duty/leave for payment in respect of all personnel including DAD.
Powers of the AAO in respect of passing the requisition for advance on LTC
may however, be restricted to Rs. 25,000 only
(xi) AAOs are authorised to audit and pass all the Ty. duty claims in respect
of all categories of personnel including DAD.
(xii) Bills on account of advance/withdrawals from GPF/AFPP fund claims

upto Rs. 1,00,000/- in respect of all categories including DAD shall be audited
and passed by the AAO.
(xiii) Powers to deal with finally (i.e., audit & payment) all bills upto Rs.
50,000/- in Misc. (M) Section of CDA's office/Area Accounts Office. Power of
AAOs has been enhanced upto Rs. 5,00,000/- only in respect of AFT Bills paid
through OJAS(Online Jet Fuel Accounting System).
(xiv) Medical claims:
(a) OPD medical claims may be audited & passed upto Rs. 2500/-.
(b) Hospitalization: (i) Claims for advance-full powers to pass the

claims. (ii) Hospitalization claims-final bills upto Rs. 50,000/-.
(xv) All bills which are not covered under Sl. No. (xi) to (xv) above but are
payable through Public Fund accounts may be passed by AAO upto Rs.
1,00,000/-. However, third party claims dealt with in Main Office/Area
Accounts Office may be passed by the AAO upto Rs. 50,000/- only.
(xvi) Approval and signing of punching medium upto Rs. 5,00,000/-.
(xvii) Audit & Payment of cash requisitions upto Rs. 5,00,000/-.
(xviii) AAOs holding independent charge are authorised to render

reports and returns direct to Main Office with a copy to LAO/RAO concerned.
(xix) AAOs are authorised to countersign LPC in respect of industrial

employees of MES and other organisation.
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(xx) AAOs are authorised to pass telephone bills issued by MTNL/BSNL and
other bills like electricity, water and ground rent, etc. payable to Government
Department.
(xxi) Post audit of Rum allowance claims of JCOs/ORs paid from imprest
upto Rs. 5,000/-.
(xxii) Signing of crossed postal orders in favour of CDA on account of cost of

tender forms for realisation and credit to Government accounts.
(xxiii) (a) AAOs are authorised to price all loss statements and expense
vouchers upto Rs. 50,000/-.
(b) AAOs are authorised to render audit report in case of store losses not
due to theft, fraud or gross negligence upto Rs. 20,000/-.
(xxiv) (a) In the case of offices where only one AO/SAO is functioning
with the responsibilities of issue of cheques, one or two AAOs in such offices
may be authorised to sign cheques in the absence of AO/SAO. Accordingly,
their specimen signature be sent to Banks/Treasuries duly attested.
(b) In offices which are headed by the AAOs with the responsibility of
issuing cheques, they may be authorised to sign cheques.
(c) In the case of offices where only one AO/SAO is posted and no other
SAO/ AO is available for being nominated as the second authorizer, the AAO
in such offices may be authorised as the second authorizer.
(xxv) Attest last pay drawn in service books of Group ‘B’ (Non-gazetted) and
Group 'C' employees after audit of service books.
(xxvi) AAOs are authorised in addition to the AO/SAO working in

DPDOs, to conduct annual identification of pensioners drawing pension
covered by the new banking scheme circulated by CGDA's important circular
No. 5101/AT-V/ Identification dated 13.2.1992.
(xxvii)AAOs working in the DPDOs are delegated with the powers of

disbursement of pension etc. to the same extent as already delegated to the SO
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(A) in DPDO office vide HQrs. letter No. 61015 (1)/77/AN-Coord dated
5.5.1978.
(xxviii)AAOs are authorised to sign DP sheets.
(xxix) AAOs of NE Group in PAOs office are authorised to sign tender

memos upto Rs. 5,000/-.
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2.86. LEVEL JUMPING IN PROCESSING OF BILLS – POWERS
THEREOF
(i) Two tier processing (Task Holder+ AAO) - Bills up to Rs. 5.00 Lakhs (Five
lakhs only) in value.
(ii) Two tier processing (Task Holder + AO/SAO) - Bills exceeding Rs. 5.00
Lakhs (Five lakhs only) and up to Rs. 10.00 Lakhs (Ten lakhs only)in value.
(iii) Three tier processing (Task Holder + AAO + AO/SAO) - for all bills
exceeding Rs. 10.00 Lakhs (Ten Lakhs only) and up to Rs 5.00 Crores (Five Crores
only) in value.
(iv) Four tier processing (Task Holder + AAO + AO/SAO + Group Officer) -
Bills exceeding Rs. 5.00 Crores (Five Crores only) in value.
In the absence of any Time Scale IDAS Officer in an independent sub-office,

the PCDA/CDA, after careful consideration and after recording speaking orders
in each case, can authorize one or more AOs in the sub-office to pass bills for a
period not exceeding three months, even where their value exceeds Rs. 5.00
Crore.
257
Chapter – III
PERSONNEL WING
3.1. Objective:
This wing is mandated to look after the matters relating to personnel

management of Officers and Staff of the Department.
3.2 Duties:
This Wing deals with:
(i) Recruitment and appointment to the various posts viz. framing and
further maintenance of the Recruitment Rules for various posts in the
Department, raising demands to UPSC/SSC for allotment of
candidates, etc.
(ii) Handling cases for clearance of probation and confirmation.
(iii) Publication of Seniority Lists/Rosters for various grades.
(iv) Dealing with various aspects relating to grant of promotion to officers
and staff.
(v) Subordinate Accounts Services (SAS) Examination and other
Departmental examination – framing of rules, conduct of examination
and associated activities.
(vi) Publication of casualties in Gazette of India.
(vii) Notification of casualties in Part II Office Orders.
(viii) Transfer and posting – framing of policies.
(ix) Constitution of the Defence Accounts Placement Board.
(x) Processing of cases for deputation.
(xi) Processing the cases of retirement/superannuation.
(xii) Processing and handling of cases related to conduct and discipline of
Officers and Staff of the Department.
(xiii) Handling of vigilance matters and complaints.
(xiv) Handling of requests for grant of Prosecution Sanction.
(xv) Handling of cases relating to ‘Prevention of sexual harassment of
working women at workplace’.
(xvi) Processing the cases for periodic review under FR 56/Rule 42 of CCS
(Pension) Rules, 2021 (erstwhile Rule 48 of CCS (Pension) Rules, 1972).
258
(xvii) Rendition of reports through Probity Portal.
(xviii) Grant of ‘No Objection Certificate’ for obtaining Indian Passport and
proceeding abroad.
(xix) Grant of permissions for various activities in terms of the provisions
of the CCS (Conduct) Rules, 1964.
(xx) Handling of ‘Annual Performance Assessment Reports’ (APARs).
(xxi) Handling of grievances.
259
3.3. RECRUITMENT RULES
Recruitment Rules are rules notified under proviso to Article 309 of the
Constitution of India or any specific statutes for posts. It prescribes the method of
recruitment as well as the eligibility for such recruitment. It contains notification
part having substantive rules and schedule part. These rules define various
aspects including constitution of service, seniority, probation, promotion and
other conditions for service, etc. The Recruitment Rules are notified for a post or
group of posts, as deemed necessary.
Recruitment Rules are framed / amended in consultation with following

agencies:
Sl. Category Framed/amen In consultation Remarks

No. of Posts ded by with
1 ‘A’ & ‘B’ Administrative Department of Approval of the

Ministry / Personnel & Competent
Department Training, Union Authority in the
Public Service Ministry/
Commission & Department is to be
Ministry of Law obtained for
(Legislative implementation of
Department) the Recruitment
Rules
2 ‘C’ Administrative In sync with the In case of deviation

Ministry / guidelines / from existing
Department Model guidelines/Model
Recruitment Recruitment Rules,
Rules issued by the concurrence of
the DoP&T DoP&T is to be
obtained
The DAD HQrs is mandated to frame, notify and modify the Recruitment
Rules for various categories /grades in the DAD for future maintenance of the
services/ grades.
Recruitment Rules are subordinate legislation and so, they are statutory in
nature.
260
3.4. RECRUITMENT
2.1. The recruitment to various posts of the Defence Accounts Department is

carried out as laid down in the relevant Recruitment Rules for the post, which are
notified and amended from time to time. The modes of recruitment are:
Modes of Recruitment
Direct Recruitment Promotion Deputation from

other Departments
Through Through
UPSC SSC
2.2 The direct recruitment, promotions and deputations in DAD are

governed by the instructions / orders issued by the Government
(DoP&T, etc.) from time to time.
261
3.5. APPOINTMENT
Appointment to different categories of posts in the Defence Accounts

Department is made from the selected candidates in consonance with the
relevant Recruitment Rules.
3.5.1. Appointment to Indian Defence Accounts Service (IDAS)
Having been selected through the Civil Services Examination conducted by

the Union Public Service Commission, the candidates are allotted Indian Defence
Accounts Service (IDAS) by the Department of Personnel and Training (DoP&T).
The list of candidates allotted IDAS, along with their dossiers, is sent to the DAD
HQrs by the DoP&T through MoD (Fin.). The approval of the Appointing
Authority i.e. the President of India, whose powers are delegated to the Raksha
Mantri for exercising the same, is also received. Accordingly, the offers of
appointment are issued to these candidates for joining at LBSNAA/ NADFM/
CENTRAD/ other training institutes, as required.
3.5.2. Appointment to other Group ‘A’, ‘B’ & ‘C’ Posts
Appointment to other Group ‘A’ to ‘C’ Posts is made by the respective

Appointing Authorities as specified in the relevant Recruitment Rules.
(a) Appointment as Assistant Director (Official Languages)
After declaration of results, the list of successful candidates is provided by

the Union Public Service Commission to the MoD (Finance). The list of
candidates, along with their dossiers, is sent to the DAD HQrs by the DoP&T
through MoD (Fin.). The approval of the Appointing Authority i.e. the President
of India, whose powers are delegated to the Raksha Mantri for exercising the
same, is also received. Accordingly, the offers of appointment are issued to these
candidates for joining at respective offices
(b) After allotment of Department by the Staff Selection Commission, a list of

successful candidates alongwith their dossiers are received from the Staff
Selection Commission. After allocation of dossiers (except for the Multi-Tasking
Staff) by the DAD HQrs, the PCsDA/CsDA issues appointment letters to the
successful candidates for joining at the respective offices.
262
(c) Vacancies in respect of the Multi-Tasking Staff are released by the DAD
HQrs to the offices of the PCsDA/CsDA. Accordingly, all matter relating to
recruitment of the Multi-Tasking Staff is processed by the concerned
PCsDA/CsDA with the regional Staff Selection Commission. The list of selected
candidates and dossiers are directly received in the concerned PCDA/CDA office
for further process and issue of appointment letters.
3.5.3. Compassionate Appointments
(i) 5% of vacancies against the total vacancies in Group ‘C’ in a year are
released for Compassionate appointment to all PCsDA/CsDA as per the
requirements projected.
(ii) These cases are scrutinized as per DoP&T guidelines, issued from time to
time.
(iii) After approval of the Competent Authority, further action for considering
the appointment is taken.
(iv) In approved cases, the offers of appointments are issued by the offices of
the concerned PCDA/CDA.
3.5.4. Appointment through Inter Departmental transfer
Applications from an individual alongwith bio-data and NOC from the

respective Organization for Inter Departmental Transfer are considered based on
availability of vacancy and fulfilling of other eligibility conditions.
3.5.5. Reservation in appointments
The orders issued by the Government of India relating to grant of

benefit of reservation to the specified category of individuals should be
meticulously followed while considering the appointments to the
various posts in the Department.
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3.6. Probation and Confirmation
3.6.1. General
A person is appointed on probation in order to assess his suitability for

absorption in the service to which he has been appointed. Probation should not,
therefore, be treated as a mere formality. The Appointing Authority may declare
successful completion, extend the period of probation or terminate the services of
a temporary employee on probation, on the basis of evaluation of performance.
The maximum period for which the probation of a government servant can
be extended is twice the normal period of probation prescribed for the post held
by the government servant.
The probation shall stand successfully completed on issue of formal orders

in writing.
3.6.2. Period of Probation

The period of probation is prescribed for different posts/services in Central
Government on the following lines:
Sl. No. Method of appointment Period of probation
PROMOTION
1 Promotion from one grade to another No probation.

but within the same group of posts e.g.
from Group ‘C’ to Group ‘C’
2 Promotion from one Group to another The period of probation

e.g. Group ‘B’ to Group ‘A’ prescribed for the Direct
Recruitment to the higher
post. If no period is
prescribed then it should
be 2 years
264
DIRECT RECRUITMENT
3 For direct recruitment to posts except 2 years

clause (ii) below
(ii) For direct recruitment to posts of

Level 12 under the 7thCPC pay matrix
(carrying a Grade Pay of Rs. 7600 or 1 year
above under the 6th CPC) or to the
posts to which the maximum age limit
is 35 years or above and where no
training is involved;
Note: Training includes ‘on the job’ or

‘Institutional training’
4 Officers re-employed before the age of 2 years
superannuation
5 Appointment on contract basis, tenure No probation
basis, re-employment after
superannuation and absorption
3.6.3. Confirmation
Confirmation to various posts in the Department is made on completion of

prescribed probation period and fulfillment of other conditions as laid down in
the relevant Recruitment Rules and Government orders issued from time to time.
A formal order regarding confirmation in a post/grade is issued in writing.
265
3.7. Seniority List
The following Seniority Lists are published by the DAD HQrs in the
Department:
Sl. Name Grade Periodicity

No.
1 Civil List IDAS Officers As and when required
2 Seniority List SAO/AO Every three years
3 Seniority List AAO Every five years
4 Rosters Senior Auditors, Auditors, From time to time
DEOs, Stenographers, Clerks,
MTS, etc.
266
3.8. Promotions
3.8.1. General
Promotion to different Group ‘A’, ‘B’ & ‘C’ posts, including Indian Defence
Accounts Service, are made as per Recruitment Rules in force on the
recommendations of the Departmental Promotion Committee. The DPC
proposals are processed in accordance with the provisions as laid down by the
Government from time to time. The compositions of DPCs for a particular
service/post/grade are specified in the respective Recruitment Rules.
The crucial date of eligibility for promotion to various grades is 1st January
of the Vacancy Year to which the promotion relates.
It is also important to see that the officers who are being considered for
promotion should be clear from vigilance angle. In case any or more
circumstances as stipulated below exists in case of any employee being
considered for promotion, the Vigilance Clearance may be denied and the
recommendations of the DPC shall be placed in ‘sealed cover’:
(i) Government servants under suspension;

(ii) Government servants in respect of whom a charge sheet has been issued
and the disciplinary proceedings are pending; and
(iii) Government servants in respect of whom prosecution for a criminal
charge is pending.
Note: Judicial proceedings shall be deemed to be instituted in the case of criminal

proceedings, on the date on which the complaint or report of a Police Officer, of
which the Magistrate takes cognizance, is made.
However, before the officer is actually promoted it needs to be ensured that

he / she is clear from vigilance angle and the provision of Para 7 of DoP&T O.M.
No. 22011 / 4 / 91-Estt. (A) dated 14.09.1992, as amended from time to time, are
not attracted.
As a rule, the promotion takes effect prospectively. In the exceptional

circumstances viz. court orders, exoneration in disciplinary proceedings, etc. the
promotion may be given retrospective effect.
267
3.8.2. Non-Functional Upgradation
The Non-Functional Upgradation, wherever prescribed, is also granted as

per the relevant Recruitment Rules, on the recommendations of the Screening
Committee and after approval of the Appointing Authority for the respective
post.
3.8.3 Processing of DPC Proposals
The proposal(s) for conducting year-wise DPC for promotion, where the
UPSC is involved, is submitted to the UPSC through the Ministry of Defence
(Finance). The proposals for which the DPCs are to be conducted within the
Department or MoD (Finance) should also be timely initiated to have the
approved panel for promotion of officers on due dates. The model calendar for
the DPCs stipulated by the DoP&T should be strictly followed for this purpose.
The promotions or grant of Non-Functional Upgradations, as per

recommended panel, are made after obtaining approval of the Competent
Authority viz. Hon’ble Raksha Mantri and/or the Appointments Committee of
Cabinet (ACC) or the CGDA, as the case may be.
3.8.4. Reservation in promotions
The orders issued by the Government of India relating to grant of

benefit of reservation to the specified category of individuals should be
meticulously followed while considering the promotions to the various
posts in the Department.
268
3.9. Refusal of promotion to higher grade
When a Government employee does not want to accept the promotion
which is offered to him he may make a written request that he may not be
promoted and the request will be considered by the Appointing Authority, taking
relevant aspects into consideration.
If the reasons adduced for refusal of promotion are acceptable to the

Appointing Authority, the next person in the select list may be promoted.
However, since it may not be administratively possible or desirable to offer
appointment to the persons who initially refused promotion, on every occasion
on which a vacancy arises during the period of validity of the panel, no fresh
offer of appointment on promotion shall be made in such cases for a period of
one year from the date of refusal of first promotion or till the next vacancy arises
whichever is later.
On the eventual promotion to the higher grade, such Government servant

will lose seniority vis-à-vis his erstwhile juniors promoted to the higher grade
earlier irrespective of the fact whether the posts in question are filled by selection
or otherwise.
The above-mentioned policy will not apply where adhoc promotions

against short-term vacancies are refused.
In case where the reasons adduced by the officer for his refusal for
promotion are not acceptable to the appointing authority, then he should enforce
the promotion of the officer and in case the officer still refuses to be promoted,
then even disciplinary action can be taken against him for refusing to obey his
order.
269
3.10. Subordinate Accounts Services (SAS) Examination & other
Departmental Examinations
The Defence Accounts Department conducts the Subordinate Accounts

Services (SAS) Examination for induction of the eligible Group ‘B’ (Non-
Gazetted) and Group ‘C’ employees of the Department to Group ‘B’ (Gazetted)
posts of the Assistant Accounts Officers. These examinations are conducted in
two Parts – Part I & II respectively - on as and when required basis.
The detailed procedure regarding conduct of the Subordinate Accounts

Services (SAS) Examinations is laid down in SAS Rule 2019.
This Wing also conducts other Departmental examinations for promotions

from Multi-Tasking Staff to Record Clerk/Clerk grade, Graduate Clerks/Multi–
Tasking Staff to Auditors grade on as and when required basis, in light of the laid
down rules. The rules relating to these examinations are also modified and
notified by this Wing on as and when required basis.
270
3.11. Publishing of service events / casualties
All casualties except posting, transfer and leave relating to the Gazetted
Officers of the Defence Accounts Department are notified in the Gazette of India
by the DAD HQrs.
All casualties affecting the officers and staff of DAD will be notified by the
PCsDA/CsDA in the Part II Office Orders through Human Resource
Management System (HRMS). These include inter-station transfer within or
between PCDA's/CDA's organization, deputations, grant of leave, clearance of
probation, confirmation, retirement, etc. The Part II Office Orders should contain
all relevant information connected with the event.
The copies of the Part II Office Orders issued will be sent to the DAD HQrs
and all concerned offices, etc.
271
3.12. Transfer and postings
Transfers and postings are considered for the Officers and Staff in terms of
laid down transfer policies issued by the DAD HQrs from time to time.
All cases of transfers are considered by a Defence Accounts Placement

Board (DAPB) constituted for the purpose on the guidelines stated by the DAD
HQrs., from time to time.
The DAPB, which is only a recommendatory body, recommends the cases

to the Competent Authority for consideration and orders.
The approved cases are ordered for transfer through transfer orders issued
by the DAD HQrs or the offices of the PCsDA/CsDA.
272
3.13. Deputation
The CGDA is the Cadre Controlling Authority for employees of DAD upto
Junior Administrative Grade of the IDAS to consider their requests and sponsor
their names to other organizations for appointment on deputation within their
organization. The cases of officers of the Senior Administrative Grade of the
IDAS and above level are forwarded to the MoD (Finance) for obtaining orders of
the Competent Authority and communicating the cadre clearance before
forwarding their requests to the outside organizations.
The CGDA is authorized to allow the officers and staff of DAD to apply for
transfer on deputation/foreign Service to ex-cadre posts under other Ministries
or Departments of the Central / State Government, Public Sector Undertakings/
Autonomous Bodies, Universities/ Union Territory Administration, Local Bodies,
etc. and vice-versa, as permissible.
These deputations are governed by the terms & conditions in respect of

Central Government employees as notified by the DoP&T from time to time. The
cases for special categories of deputations for example deputations under the
Central Staffing Scheme or posts outside India, etc. are dealt with specific
consideration of exemptions.
273
3.14. Retirement/ Superannuation
Every Government servant shall retire from service on attaining the age of
superannuation of sixty years.
A Government servant shall retire on the last day of the month in which
he/she attains the age of superannuation. Only those Government servants
whose date of birth falls on 1st of a month shall be retired on last day of the
preceding month.
The detailed rules and instructions on retirement and superannuation are

given in FR & SR Part-I and CCS (Pension) Rules, 2021 (erstwhile CCS (Pension)
Rules, 1972).
274
3.15. CONDUCT
(1) The essence of Government service is the sense of discipline to which all
Government employees are subjected to and the privileges to which they, in
general, are entitled. It is expected from every Government servant that they
shall at all times maintain full devotion to their duty. They should not do any act
which may bring disrepute for the Government. They should never act in any
manner which may show lack of integrity.
(2) The Central Civil Services (Conduct) Rules, 1964 and Central Civil Services
(Classification, Control and Appeal) Rules, 1965 lay the rules and procedures for
dealing with these aspects. These rules are also applicable to the employees of the
Defence Accounts Department. Apart from above, the orders and instructions
issued by the Government of India viz. DOP&T, CVC, etc. on the subject from
time to time are also to be thoroughly followed. Violation/disregard of these
rules or orders will render them liable for suitable (administrative or
disciplinary) action.
(3) The permissions/sanctions in terms of the various provisions of the CCS

(Conduct) Rules, 1964 with reference to the specified activities shall be accorded
by DAD HQrs and the concerned PCDA/CDA/equivalent in respect of officers
and staff at the level of AOs & above and AAOs & below, respectively.
(4) No official documents/papers or publications may be taken out of the office

without the written permission of the Accounts Officer/Senior Accounts
Officer/ACDA in-charge of the Section.
(5) All members of the establishment should perform their allotted work with
accuracy and neatness. The official hours must be devoted to regular diligent
and punctual discharge of duties connected with the office.
(6) All members of the establishment shall be available for any duties that may
be assigned to them without any claim to an allowance.
(7) It should be the endeavour of every member of the establishment to qualify

himself for promotion. They should also strive to attain by every possible
275
attention on his part to gain knowledge of the rules, regulations and proper
functioning in light thereof.
(8) Before leaving office, every member of the establishment is expected to

arrange his papers, etc. neatly and to clear his table of all superfluous
documents. The Assistant Accounts Officers should not allow any individual to
leave office until they are satisfied that this has been done. This order must be
rigidly observed otherwise a careless system of keeping documents may prevail
with possible danger of loss of documents. It will also make it impossible for
the staff on duty to dust the tables properly if papers are lying about on them.
(9) When an Assistant Accounts Officer, Senior Auditor, Auditor or Clerk has
any complaint or representation to make to the Accounts Officer/Senior
Account Officer/ACDA-in-Charge of the Section, he will make it personally to
his Accounts Officer/Senior Accounts Officer/ACDA-in-Charge.
(10) The Officer will enquire into the matter and, after ascertaining the facts,
will accompany the concerned official to the Group Officer-in-Charge of the
section and place the case before him.
(11) If the Group Officer-in-charge of the section cannot settle the matter, the
latter will bring the official to the Group Officer-in-Charge of the
Personnel/Establishment Section so that the official may be able to represent his
case to that officer in the presence of the Group Officer-in-Charge of his Section.
(12) If the Group Officer-in-charge of the Personnel/Establishment Section is

unable to settle the cases satisfactorily, he will bring the matter personally to the
notice of the Principal Controller/Controller for orders.
(13) In such cases no direct communications will be received by the Principal

Controller/Controller or the Group Officer-in-charge, Personnel/Establishment
Section or the Group Officer-in-charge of the section concerned.
(14) Every member of the establishment has the right of appeal to the Principal
Controller/Controller. The appeals to the Principal Controller/Controller
should be submitted in writing through the Accounts Officer/Senior Accounts
276
Officer/ACDA-in-Charge of the Section and the Accounts Officer/Senior
Accounts Officer/ACDA-in-charge of the Personnel/Establishment Section, as
the case may be.
(15) Whenever in any matter connected with his service rights or conditions, a
member of the Department wishes to press a claim or to seek redress of
grievances, the proper course for him is to address the Principal Controller/
Controller.
(16) An appeal or representation to the CGDA must not be made unless the
Principal Controller/Controller has already rejected the claim or refused relief
or ignored or unduly delayed the disposal of the case. The practice of
submitting advance copies of appeals to the DAD HQrs is irregular and should
not be resorted to unless there has been undue delay in Principal Controllers/
Controllers offices in dealing with them.
(17) Representation to Government must not be made unless all means of

receiving attention or redress from the CGDA have been exhausted, even in
such cases the representation must be submitted through the proper channel
(i.e. the Principal Controller/Controller and the CGDA). The Principal
Controller/ Controller, before forwarding the appeal or representation to the
CGDA will adequately discuss the points of representation involving facts or
opinions on which he alone is competent to discuss and make his
recommendations. There is no objection at that stage, but only at the initial
stage, to send an advance copy of the representation direct to Government.
(18) The treatment by the higher authorities of advance copies of

representations so received will be governed by the following general
principles:-
(a) If the advance copy does not clearly show that all means of securing
attention or redress from lower authorities have been duly tried and
exhausted, the representation will be ignored, or rejected summarily on
that ground, the reasons being communicated briefly to the individual
concerned. If the individual persists in thus prematurely addressing the
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higher authorities, suitable disciplinary action will be taken against him.
(b) If the advance copy shows clearly that all appropriate lower authorities
have been duly addressed and exhausted, it should be examined to
ascertain whether on the facts stated some grounds for interference or
for further consideration appear, prima-facie, to exist. Where no such
grounds appear, the representation may be ignored or summarily
rejected, the reasons being communicated briefly to the individual.
(c) Even when some grounds for interference or further consideration
appear to exist, the appropriate lower authority should be asked within
a reasonable time, to forward the original representation, with its reports
and comments on the points urged. There is ordinarily no justification
for passing of any orders on any representation without ascertaining the
comments of the appropriate lower authority.
(19) No member of the establishment of Principal Controller's/ Controller's

offices may visit the DAD Headquarters for the purpose of obtaining an
interview with the CGDA or a member of his staff in regard to his personal case
without the written permission of the Principal Controller/ Controller, which
will only be given after the concurrence of the DAD HQrs has been obtained in
writing.
(20) Nothing in these paras shall be held to debar any member of the
establishment from the right of direct access to the Principal
Controller/Controller, or to any other officer whom he may wish to see
personally. The conditions under which such interviews will be granted may be
fixed by the Principal Controllers/Controllers locally.
278
3.16. Discipline
3.16.1. Central Civil Services (Classification, Control and Appeal) Rules,

1965 lay down the manner and procedures to process the discipline cases in
respect of the employees of the Defence Accounts Department.
3.16.2. A disciplinary action may result to have an outcome of major impact

on the Government servant. As such, these cases should be handled with
abundant caution and vigil. Any laxity in dealing such cases may also return into
a waste exercise.
3.16.3. It should also be examined in such cases whether administrative

action or a disciplinary action will be sufficient. The disciplinary actions are
harsh and also time consuming. The administrative actions are simpler and can
meet the end of justice in a shorter time. A distinct illustration on two types is as
under:
Type of Administrative Disciplinary

Action
Rules Any Service Rule or Manual or CCS (CCA) Rules, 1965

governing orders or Instructions
the action
(i) Major penalty proceedings
Types of (i) Warning (Oral/ Not to be
(Rule 14 of CCS (CCA) Rules,
actions recorded/Recorded) /
1965)
Reprimand/ Displeasure
(ii) Minor penalty proceedings
(ii) Suspension (Rule 10 of CCS (Rule 16 of CCS (CCA) Rules,
(CCA) Rules, 1965) 1965)
(iii) Action in particular cases
(v) Transfers, etc. (Rule 19 of CCS (CCA) Rules,
1965)
Likely Have lighter impacts on service Can have larger impacts even up
impacts or pay benefits to dismissal from service
279
3.16.4. The diagrammatic representation of major steps in conduct and
finalisation of the cases relating to minor and major penalty proceedings are
given in Annexure ‘3.16.A1’ & Annexure ‘3.16.A2’.
3.16.5. The details of the Appointing Authorities and the Disciplinary

Authorities in the Defence Accounts Department have been indicated in
Annexure ‘3.16.A3‘.
280
3.17. Procedure to be followed in cases of Officers and Staff
serving in offices of PIFA/IFA/NADFM, Pune/CDA (RTCs)/DPTI,
Prayagraj
3.17.1. With reference to initiation of disciplinary action against the Officers

and Staff, posted in the offices of PIFAs/IFAs, for the delinquencies relating to
the functioning of IFA System, the concerned PIFA/IFA shall initiate the action.
The PIFA/IFA shall call for the explanation of the errant official and examine the
same. If prima-facie, there exists a case, the PIFA/IFA shall forward a statement
of case alongwith the draft charges and connected documents to the Proforma
Controller concerned or to CGDA, as the case may be.
3.17.2. The necessary follow-up action, viz. from the stage of issuing of
formal memorandum of charges to till finalisation of the disciplinary case, in
respect of officials up to the rank of AAO, shall be taken by the Proforma
Controller concerned.
3.17.3. In respect of errant officials in the grade of AO and above, the

statement of case and other connected documents shall be forwarded by the
PIFA/IFA to the CGDA.
3.17.4. Further, the work relating to the Conduct and Discipline in respect of
all the RTCs/NADFM, Pune/DPTI and other Training Institutes shall be handled
by the Proforma Controller concerned/CGDA, as the case may be, on the similar
lines at Paras 3.17.1 to 3.17.3 above.
281
3.18. Procedure to be followed in case of transfer of the Charged
Official
For the sake of administrative conveyance and uniformity of procedure in
initiation/finalisation of disciplinary proceedings in such cases (transfer of
charged official) should be taken as explained below:-
(i) The PCDA/CDA in whose organisation the delinquency has occurred

should initiate, process and finalise the disciplinary action through the
PCDA/CDA (present organisation) to whom the Government Servant is
administratively subordinate.
(ii) The PCDA/CDA under whom the individual is currently serving will
give effect to the final orders (implement order) passed by the PCDA/CDA who
processed & finalised the case.
282
3.19. Initiation of disciplinary proceedings against retired
Government servants or continuance thereof after retirement
The disciplinary proceedings against retired Government servants have to

be initiated in terms of Rule 8 of the CCS (Pension) Rules, 2021.
The disciplinary proceedings initiated against any Government servant

before his retirement may be continued in terms of the same rules and shall be
finalized in terms of Rule 8 of the CCS (Pension) Rules, 2021.
The departmental proceedings, if not instituted while the Government

servant was in service, whether before his retirement, or during his re-
employment, -
(i) shall not be instituted save with the sanction of the President in the
prescribed format;
(ii) shall not be in respect of any event which took place more than four
years before such institution; and
(iii) shall be conducted by such authority and in such place as the President
may direct and in accordance with the procedure applicable to
departmental proceedings in which an order of dismissal from service
could be made in relation to the Government servant during his service.
Provided that for the purpose of instituting departmental proceedings under
this sub-rule, a memorandum of charges shall be communicated to the pensioner
concerned in the prescribed format.
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3.20. PENALTIES
The following penalties, as specified in Rule 11 of the CCS (CCA) Rules,

1965, may, for good and sufficient reasons, be imposed on a Government servant,
namely:-
(1) Minor Penalties -

(i) censure;
(ii) withholding of his promotion;
(iii) recovery from his pay of the whole or part of any pecuniary loss caused by
him to the Government by negligence or breach of orders;
(iii)(a) reduction to a lower stage in the time-scale of pay by one stage for a
period not exceeding three years, without cumulative effect and not adversely
affecting his pension.
(iv) withholding of increments of pay;
(2) Major Penalties -

(v) save as provided for in clause (iii) (a), reduction to a lower stage in the time-
scale of pay for a specified period, with further directions as to whether or not
the Government servant will earn increments of pay during the period of
such reduction and whether on the expiry of such period, the reduction will
or will not have the effect of postponing the future increments of his pay:
(vi) reduction to lower time-scale of pay, grade, post or Service for a period to be
specified in the order of penalty, which shall be a bar to the promotion of the
Government servant during such specified period to the time-scale of pay,
grade, post or Service from which he was reduced, with direction as to
whether or not, on promotion on the expiry of the said specified period -
(a) the period of reduction to time-scale of pay, grade, post or service shall
operate to postpone future increments of his pay, and if so, to what extent;
and
(b) the Government servant shall regain his original seniority in the higher lime
scale of pay, grade, post or service.
(vii) compulsory retirement;
284
(viii) removal from service which shall not be a disqualification for future
employment under the Government;
(ix) dismissal from service which shall ordinarily be a disqualification for future
employment under the Government.
Provided that, in every case in which the charge of possession of assets
disproportionate to known-source of income or the charge of acceptance from
any person of any gratification, other than legal remuneration, as a motive or
reward for doing or forbearing to do any official act is established, the penalty
mentioned in clause (viii) or clause (ix) shall be imposed:
Provided further that in any exceptional case and for special reasons
recorded in writing, any other penalty may be imposed.
Actions which do not amount to a penalty

The following shall not amount to a penalty within the meaning of the rule
11 of the CCS (CCA) Rules, 1965, namely:-
(i) withholding of increments of a Government servant for his failure to pass
any departmental examination in accordance with the rules or orders
governing the Service to which he belongs or post which he holds or the
terms of his appointment;
(ii) non-promotion of a Government servant, whether in a substantive or
officiating capacity, after consideration of his case, to a Service, grade or
post for promotion to which he is eligible;
(iii) reversion of a Government servant officiating in a higher Service, grade or
post to a lower Service, grade or post, on the ground that he is considered
to be unsuitable for such higher Service, grade or post or on any
administrative ground unconnected with his conduct;
(iv) reversion of a Government servant, appointed on probation to any other
Service, grade or post, to his permanent Service, grade or post during or at
the end of the period of probation in accordance with the terms of his
appointment or the rules and orders governing such probation;
(v) replacement of the services of a Government servant, whose services had
been borrowed from a State Government or any authority under the control
285
of a State Government, at the disposal of the State Government or the
authority from which the services of such Government servant had been
borrowed;
(vi) compulsory retirement of a Government servant in accordance with the
provisions relating to his superannuation or retirement;
(vii) termination of the services -
(a) of a Government servant appointed on probation, during or at the end of
the period of his probation, in accordance with the terms of his
appointment or the rules and orders governing such probation, or
(b) of a temporary Government servant in accordance with the provisions of
sub-rule (1) of Rule 5 of the Central Civil Services (Temporary Service)
Rules, 1965, or
(c) of a Government servant, employed under an agreement, in accordance
with the terms of such agreement.
(viii) any compensation awarded on the recommendation of the Complaints
Committee referred to in the proviso to sub-rule (2) of rule 14 and
established in the Department of the Government of India for inquiring into
any complaint of sexual harassment within the meaning of rule 3 C of the
Central Civil Services (Conduct) Rules, 1964.
286
3.21. SUSPENSION
Suspension, in the context of disciplinary proceedings, may be defined as
temporary withdrawal of duties from a government servant, pending inquiry
into his/ her conduct, with simultaneous reduction in pay and withdrawal of
some rights/privileges.
2. The provisions relating to suspension are mainly contained in Rule 10 of
CCS (CCA) Rules, 1965 and FR 53, 54 and 55.
3. Suspension, though not a penalty, is to be resorted to sparingly. Whenever
a Government servant is placed under suspension not only does the Government
lose his services but also pays him for doing no work. It also has a stigma
attached to it. Therefore, the decision to place a Government servant under
suspension must be a carefully considered decision and each case would need to
be considered on merits.
4. A Government servant may be placed under suspension, in the following
circumstances:
a) where, a disciplinary proceeding against him is contemplated or is pending;
or
b) where, in the opinion of the competent authority, he has engaged himself in
activities prejudicial to the interest of the security of the State; or
c) where, a case against him in respect of any criminal offence is under
investigation, inquiry or trial.
5. A Disciplinary Authority may consider it appropriate to place a

Government servant under suspension in the following circumstances. These are
only intended for guidance and should not be taken as mandatory:-
a) Cases where continuance in office of the Government servant will prejudice
the investigation, trial or any inquiry (e.g. apprehended tampering with
witnesses or documents);
b) where the continuance in office of the Government servant is likely to
seriously subvert discipline in the office in which the Government servant
is working;
287
c) where the continuance in office of the Government servant will be against
the wider public interest, other than those covered by (a) and (b), such as
there is public scandal and it is necessary to place the Government servant
under suspension to demonstrate the policy of the Government to deal
strictly with officers involved in such scandals, particularly corruption;
d) where allegations have been made against the Government servant and
preliminary inquiry has revealed that a prima-facie case is made out which
would justify his prosecution or is being proceeded against in departmental
proceedings, and where the proceedings are likely to end in his conviction
and/or dismissal, removal or compulsory retirement from service.
e) Suspension may be desirable in the circumstances indicated below:-
i. any offence or conduct involving moral turpitude;
ii. corruption, embezzlement or misappropriation of Government money,
possession of disproportionate assets, misuse of official powers for
personal gain;
iii. serious negligence and dereliction of duty resulting in considerable loss
to Government;
iv. desertion from duty;
v. refusal or deliberate failure to carry out written orders of superior
officers.
In respect of the types of misdemeanor specified in sub clauses (iii) and (v)
discretion has to be exercised with care.
6. Reasons for Suspension, if not indicated in the suspension order itself,

should be communicated to the concerned Government servant within three
months from placing him/her under suspension.
7. A Government servant shall be deemed to have been placed under

suspension by an order of the Appointing Authority -
(a) with effect from the date of his detention, if he is detained in custody, whether
on a criminal charge or otherwise, for a period exceeding forty-eight hours;
288
(b) with effect from the date of his conviction, if, in the event of a conviction for
an offence, he is sentenced to a term of imprisonment exceeding forty-eight hours
and is not forthwith dismissed or removed or compulsorily retired consequent to
such conviction.
The period of forty-eight hours referred to in clause (b) above shall be
computed from the commencement of the imprisonment after the conviction and
for this purpose, intermittent periods of imprisonment, if any, shall be taken into
account.
8. Where a penalty of dismissal, removal or compulsory retirement from
service imposed upon a Government servant under suspension is set aside in
appeal or on review under these rules and the case is remitted for further inquiry
or action or with any other directions, the order of his suspension shall be
deemed to have continued in force on and from the date of the original order of
dismissal, removal or compulsory retirement and shall remain in force until
further orders.
9. Where a penalty of dismissal, removal or compulsory retirement from
service imposed upon a Government servant is set aside or declared or rendered
void in consequence of or by a decision of a Court of Law and the disciplinary
authority, on a consideration of the circumstances of the case, decides to hold a
further inquiry against him on the allegations on which the penalty of dismissal,
removal or compulsory retirement was originally imposed, the Government
servant shall be deemed to have been placed under suspension by the
Appointing Authority from the date of the original order of dismissal, removal or
compulsory retirement and shall continue to remain under suspension until
further orders:
Provided that no such further inquiry shall be ordered unless it is intended
to meet a situation where the Court has passed an order purely on technical
grounds without going into the merits of the case.
10.(a) Subject to the provisions contained in sub-rule (7) of the Rule 10 of the CCS
(CCA) Rules, 1965, an order of suspension made or deemed to have been made
under this rule shall continue to remain in force until it is modified or revoked by
the authority competent to do so.
(b) Where a Government servant is suspended or is deemed to have been
suspended (whether in connection with any disciplinary proceeding or
289
otherwise), and any other disciplinary proceeding is commenced against him
during the continuance of that suspension, the authority competent to place him
under suspension may, for reasons to be recorded by him in writing, direct that
the Government servant shall continue to be under suspension until the
termination of all or any of such proceedings.
(c) An order of suspension made or deemed to have been made under this rule
may at any time be modified or revoked by the authority which made or is
deemed to have made the order or by any authority to which that authority is
subordinate.
11. An order of suspension made or deemed to have been made under this rule
shall be reviewed by the authority competent to modify or revoke the suspension,
before expiry of ninety days from the effective date of suspension, on the
recommendation of the Review Committee constituted for the purpose and pass
orders either extending or revoking the suspension. Subsequent reviews shall be
made before expiry of the extended period of suspension. Extension of
suspension shall not be for a period exceeding one hundred and eighty days at a
time.
12. An order of suspension made or deemed to have been made under sub-rules
(1) or (2) of the Rule 10 of the CCS (CCA) Rules, 1965 shall not be valid after a
period of ninety days unless it is extended after review, for a further period
before the expiry of ninety days and duly communicated to the suspended
Government servant.
Provided that no such review of suspension shall be necessary in the case of
deemed suspension under sub-rule (2) of the Rule 10 of the CCS (CCA) Rules,
1965, if the Government servant continues to be under suspension at the time of
completion of ninety days of suspension and the ninety days period in such case
will count from the date the Government servant detained in custody is released
from detention or the date on which the fact of his release from detention is
intimated to his Appointing Authority, whichever is later.”
13. The composition of the Review Committees is laid down by the DAD HQrs
from time to time.
290
3.22. Subsistence Allowance
A Government servant under suspension is not paid any pay but is allowed
a Subsistence Allowance at an amount equivalent to the leave salary which the
Government servant would have drawn if he had been on leave on half average
pay or half pay and in addition dearness allowance, if admissible on the basis of
such leave salary.
Subsistence allowance is to be reviewed after 3 months and may be

increased by upto 50% of the allowance during the first 3 months or reduced by
upto 50% of the allowance during the first 3 months.
291
3.23. Appeal, Revision and Review
1. The following three remedies are available to any Government official on

completion of the disciplinary proceedings:
(a) Appeal:
(b) Revision; and
(c) Review.
2. The details of orders against which appeal can be filed are mentioned in
Rule 23 of CCS (CCA) Rules, 1965.
3. Period of limitation for appeals

In terms of Rule 25 of the CCS (CCA) Rules, 1965, “No appeal shall be
entertained unless it is preferred within a period of 45 days from the date on
which a copy of the order appealed against is delivered to the appellant”.
However, the Appellate Authority may entertain the appeal even after the
expiry of a period of 45 days if it is satisfied that the appellant has sufficient
cause for not preferring the appeal in time.
4. After considering all the facts and circumstances of the case and the
evidence on record, the Appellate/Revising/Reviewing Authority may pass any
of the following orders: -
(a) confirm, modify or set aside the order; or

(b) confirm, reduce, enhance or set aside the penalty imposed by the order,
or impose any penalty where no penalty has been imposed; or
(c) remit the case to the authority which made the order or to any other
authority directing such authority to make such further inquiry as it may
consider proper in the circumstances of the case; or
(d) pass such other orders as it may deem fit.
292
Annexure ‘3.16.A1’
FLOW CHART DEPICTING STAGES IN MINOR PENALTY
PROCEEDINGS (RULE 16 OF THE CCS (CCA) RULES, 1965)
Issue Charge Sheet
Charged Officer has

to submit Written
Statement of
Defence in 10 days
WRITTEN
STATEMENT OF
NO RESPONSE
DEFENCE IS
RECEIVED
GIVE FEW MORE

EXAMINE THE
DAYS TO GENERATE
SUBMISSIONS
RESPONSE
WRITTEN SUBMIT THE CASE

STATEMENT OF FOR ORDERS OF THE
NO RESPONSE
DEFENCE IS DISCIPLINARY
RECEIVED AUTHORITY
ORDERS PASSED
SPEAKING ORDER TO
BE ISSUED
CASE ENDS
293
FLOW CHART DEPICTING STAGES IN MINOR PENALTY

PROCEEDINGS (RULE 14 OF THE CCS (CCA) RULES, 1965)
Issue Charge Sheet
Charged Officer has to submit Written Statement of Defence in 10 days
NO RESPONSE WRITTEN STATEMENT OF DEFENCE IS RECEIVED
GIVE FEW MORE DAYS TO GENERATE RESPONSE EXAMINE THE SUBMISSIONS
NO RESPONSE WRITTEN STATEMENT OF

DEFENCE IS RECEIVED SUBMIT THE CASE FOR ORDERS OF THE DISCIPLINARY
AUTHORITY
CHARGES ACCEPTED CHARGES DENIED (PARTIALLY/TOTALLY/ NO RESPONSE CASE)
OBTAIN ORDERS FOR APPOINTMENT OF INQUIRY OFFICER &

PRESENTING OFFICER
OBTAIN ORDERS
INQUIRY PROCESS
INQUIRY REPORT RECEIVED
SPEAKING ORDERS
ISSUED
SUBMIT FINDINGS FOR ACCEPTANCE OF THE DISCIPLINARY AUTHORITY
FORWARD COPY OF INQUIRY REPORT TO CHARGED OFFICER FOR HIS

REPRESENTATION WITHIN 15 DAYS
CASE CLOSED REPRESENTATION RECEIVED.
EXAMINE & SUBMIT FOR OBTAINING ORDERS OF THE DISCIPLINARY AUTHORITY
Note: The stages regarding consultation with the CVC, UPSC have
not been depicted as these are in particular mandatory in cases
involving vigilance angle of Group ‘A’ officers.
294
Annexure 3.16.A3
Appointing & Disciplinary Authorities in DAD
Description of Appointing Authority competent to impose Appellate
post Authority penalties and penalties which it Authority
may impose (with reference to
item numbers in Rule 11 of the
Central Civil Services
(Classification, Control and
Appeal), Rules, 1965)
Authority Penalties
1. 2. 3. 4. 5.
PART I :
GROUP ‘A’ POSTS
(I) Officers President President All NIL#

of the Indian
Defence
Accounts
Service
(II) Principal
Private
Secretary
(III) Senior
Accounts
Officers
(IV) Assistant
Director
(Official
Languages)
# Reason: No appeal lies against orders of the President. Only Review

Petition may be filed.
295
Description of Appointing Authority competent to Appellate Authority
post Authority impose penalties and
penalties which it may
impose (with reference
to item numbers in
Rule 11 of the Central
Civil Services
(Classification, Control
and Appeal), Rules,
1965)
Authority Penalties
1. 2. 3. 4. 5.
PART II :
GROUP ‘B’ POSTS
(I) Accounts Controller Controller All Secretary (Defence

Officers General of General of Finance)/ Financial
Defence Defence Adviser (Defence
(II) Senior Accounts Accounts Services)
Private
Secretary
296
Authority Penalties
1. 2. 3. 4. 5.
PART III :
GROUP ‘B’ (OTHER POSTS)
(A) DAD HEADQUARTERS
(I) Assistant Deputy Deputy Controller All Controller

Accounts Controller General of Defence General of
Officers General of Accounts Defence
Defence Accounts
(II) Private Accounts
Secretary
297
Authority Penalties
1. 2. 3. 4. 5.
(B) PRINCIPAL
CONTROLLER OF DEFENCE ACCOUNTS /
CONTROLLER OF DEFENCE ACCOUNTS
(I) Assistant Principal Principal Controller All Controller

Accounts Controller of Defence General of
Officers of Defence Accounts/ Defence
Accounts / Controller of Accounts
Controller Defence Accounts
of Defence
Accounts
(II) Private *Joint Controller of (i) to Principal
Secretary Defence Accounts (iv) Controller
or of Defence
*Deputy Controller Accounts /
of Defence Accounts Controller
or of Defence
*Assistant Controller Accounts
of Defence Accounts
or
*Senior Accounts
Officer
or
* Accounts Officer
298
Authority Penalties
1. 2. 3. 4. 5.
(C) PCA (FACTORIES), KOLKATA & ITS SUB-OFFICES
(I) Assistant PCA Principal Controller of All Controller

Accounts (Factories), Accounts (Factories) General of
Officers Kolkata Defence
Accounts
(II) Private *Joint Controller of (i) Principal

Secretary Finance and Accounts to Controller
(Factories) (iv) of
or Accounts
*Deputy Controller of (Factories)
Finance and Accounts
(Factories)
or
*Assistant Controller of
Finance and Accounts
(Factories)
or
*Senior Accounts
Officer
or
*Accounts Officer
299
Description Appointing Authority competent to impose Appellate
of post Authority penalties and penalties which it Authority
Authority Penalties
1. 2. 3. 4. 5.
PART IV :
GROUP ‘B’ (NON-GAZETTED) AND GROUP ‘C’ POSTS
(A) DAD HEADQUARTERS
All posts Deputy Deputy Controller All Controller

Controller General of Defence General of
General of Accounts Defence
Defence Accounts
Accounts
300
Authority Penalties
1. 2. 3. 4. 5.
(B) PRINCIPAL CONTROLLER OF DEFENCE ACCOUNTS /

CONTROLLER OF DEFENCE ACCOUNTS
All posts Principal Principal Controller of All Controller

Controller Defence Accounts / General of
of Defence Controller of Defence Defence
Accounts / Accounts Accounts
Controller
of Defence
Accounts
*Joint Controller of (i) to Principal
Defence Accounts (iv) Controller
or of Defence
*Deputy Controller of Accounts/
Defence Accounts Controller
or of Defence
*Assistant Controller of Accounts
Defence Accounts
or
*Senior Accounts Officer
or
* Accounts Officer
301
Authority Penalties
1. 2. 3. 4. 5.
(C) PCA (FACTORIES), KOLKATA & ITS SUB-OFFICES
All posts PCA Principal Controller All Controller

(Factories), of Accounts General of
Kolkata (Factories) Defence
Accounts
*Joint Controller of (i)to(iv) Principal
Finance and Controller
Accounts (Factories) of
or Accounts
*Deputy Controller (Factories)
of Finance and
Accounts (Factories)
or
*Assistant Controller
of Finance and
Accounts (Factories)
or
* Senior Accounts
Officer
or
*Accounts Officer
* Only one of these Officers, in Part III & IV above, namely highest ranking officer
among them holding charge of administration in the Main Office of the Principal
Controllers/Controllers offices or holding independent charge of a sub-office will
exercise these powers.
302
3.24. Vigilance matters
The details regarding cases related to vigilance are elaborated in Vigilance
Manual, as amended from time to time, issued by the Central Vigilance
Commission. Instructions in this regard are also issued by the DoP&T from time
to time which are also to be followed while dealing these cases.
The primary responsibility for maintenance of efficiency, integrity and

transparency in an Organisation vest in the Head of the Department. Such an
authority is assisted by the Chief Vigilance Officer (CVO) in the discharge of
vigilance functions as the head of the Vigilance Division. The CVO is appointed
after prior consultation with the Central Vigilance Commission.
He also provides a link between his organisation and the Central Vigilance
Commission on one hand and his organisation and the Central Bureau of
Investigation on the other.
Vigilance functions to be performed by the CVO can be broadly be divided

into three categories, viz.
(i) Preventive vigilance;
(ii) Punitive vigilance; and
(iii) Surveillance and detection.
An officer in the Senior Administrative Grade of the IDAS i.e. Joint CGDA
functions as the Chief Vigilance Officer in the Defence Accounts Department and
is placed in the DAD HQrs.
The Vigilance Officer in the field/subordinate offices are appointed by the

PCDA/CDA concerned in consultation with the Chief Vigilance Officer. The
officers are of the rank of Additional CDA or Joint CDA and in the absence of the
Additional CDA/ Joint CDA, officers of the rank of DCDA/ACDA are
nominated to function as Vigilance Officers.
303
3.25. Complaints
The details regarding handling of complaints (anonymous/

pseudonymous/ PIDPI, etc.) are elaborated in Vigilance Manual, as amended
from time to time, issued by the Central Vigilance Commission. Instructions in
this regard are also issued by the DoP&T from time to time which are also to be
followed while dealing these cases.
Receipt of information about a vigilance misdeed from whatever

source, can be termed as a complaint. On receipt of a complaint, it is checked
whether it has a vigilance angle. The complaints having vigilance angle may be
entered in the register and processed accordingly.
As a general rule, no action is to be taken on

anonymous/pseudonymous complaints. It is also open to verify by enquiring
from the signatory of the complaint whether it had actually been sent by him/her
so as to ascertain that it is not pseudonymous.
If a complaint is found to be malicious, vexatious or unfounded,

departmental or criminal action as necessary may also be considered to be
initiated against the author of false complaints.
304
3.26. CBI/ Criminal Cases
3.26.1. Referring case to CBI
When it is felt that the case is required to be investigated by the CBI, the
Vigilance Officer of the concerned PCDA/CDA, after obtaining consent of the
Chief Vigilance Officer in DAD HQrs, may take-up the case with CBI/ACB for
detailed investigation.
3.26.2. Approval for investigation/inquiry
On receipt of a request from the CBI/Police Authorities to accord approval

for investigation/inquiry under the PC Act, the same will be examined and
approval of the Competent Authority / Appointing Authority may be conveyed.
3.26.3. Monitoring of CBI/Criminal Cases
The progress and finalization of CBI/Criminal Cases against officials of the

Department, including retired officials, may closely be monitored. Consequent
on finalization of the CBI Case/Criminal Case, necessary action as per provisions
on the subject shall be initiated against convicted officials.
Note: The orders/instructions issued by the DOPT/CVC, etc. from time to time
may be referred while processing the cases.
3.26.4. Miscellaneous
(i) Wherever necessary the Central Vigilance Commission (CVC) / Union

Public Service Commission (UPSC) may be consulted through the DAD HQrs,as
per provisions on the subject.
305
3.27. Sanction for Prosecution
On receipt of request for sanction of prosecution under PC Act, 1988 from
the CBI/Police authorities, the same will be examined and orders of the
Competent Authority /Appointing Authority may be obtained. The
orders/sanction shall be conveyed in the prescribed form.
As per instructions in vogue, a time limit of three months has been

prescribed to grant or refuse the sanction for prosecution in respect of a
Government servant.
306
3.28. Prohibition of sexual harassment of working women
3.28.1. General
1) No Government servant shall indulge in any act of sexual harassment of

any women at her work place.
2) Every Government servant who is incharge of a work place shall take
appropriate steps to prevent sexual harassment to any woman at such work
place.
For the purpose of this rule, "sexual harassment" includes such unwelcome
sexually determined behaviour, whether directly or otherwise, as:
a) physical contact and advances;

b) demand or request for sexual favours;
c) sexually coloured remarks;
d) showing pornography; or
e) any other unwelcome physical, verbal or non-verbal conduct of a sexual
nature.
Any act of sexual harassment of women employees is definitely unbecoming

of a Government servant and amounts to a misconduct. Appropriate disciplinary
action should be initiated in such cases against the delinquent Government
servant in accordance with the rules.
3.28.2. SHe-BOX
This Wing shall also be responsible for handling the complaints received
through She-BOX or directly or through Committee for Prevention of Sexual
Harassment of Working Women at Workplace, etc.
The Government of India has enacted the Protection of Women from Sexual
Harassment at Workplace (Prevention, Prohibition and Redressal) Act (the SH
Act), 2013) with the objective to create a safe and secure workplace for women
free from sexual harassment. This Act caters to women working and establishes a
redressal mechanism for the disposal of their complaints.
307
It defines “sexual harassment at the workplace” in a comprehensive
manner, to cover circumstances of implied or explicit promise or threat to a
woman’s employment prospects or creation of hostile work environment or
humiliating treatment, which can affect her health or safety.
This Sexual Harassment Electronic Box (SHe-Box) is an effort of
Government of India to provide a single window access to every woman,
irrespective of her work status, to facilitate the registration of grievance related to
sexual harassment. Any woman facing sexual harassment at workplace can
register their grievance through this portal. Once a grievance is submitted to the
‘SHe-Box’, it will be directly sent to the concerned authority having jurisdiction to
take action into the matter. Such grievances shall also be received in the
Grievance Cell for onward transmission to the Complaints Committee for further
necessary action.
3.28.3. Complaints Committee regarding Prevention of Sexual

This wing is also responsible for nomination of the members of the

Complaints Committee for Prevention of Sexual Harassment of Working Women
at Workplace for the organisation, as and when required.
The Complaints Committee should be headed by a woman and not less
than half of its member should be women. The Committee constituted for
redressal of the complaints by the victims of sexual harassment should be headed
by an officer sufficiently higher in rank, so as to lend credibility to the
investigations. Further, to prevent the possibility of any undue pressure or
influence from senior levels, such Complaints Committee should involve a third
party, either Non-Government Organisation (NGO) or other body who is familiar
with the issue of sexual harassment.
The Complaints Committee must make an annual report to the
Government Department concerned of the complaints and action taken by them.
The composition of the committee should also be publicized on the Departmental
website.
308
This Wing should also monitor that quarterly meetings of the Complaints
Committee are held even if there is no live case and the intimation thereof is
received by them. The section should also adopt measures to appropriately
intimate the Complaints Committee for various activities, as directed by the DAD
HQrs, DoP&T, etc. from time to time as regards the officers and staff, particularly
women, of the organisation and also watch their successful completion.
3.28.4. Report of Complaints Committee regarding Prevention of

Sexual Harassment of Working Women
It has been stipulated that the findings of the Complaints Committee

regarding sexual harassment of the complainant/victim will be binding on the
Disciplinary Authority to initiate disciplinary proceedings against the
Government servant(s) concerned under the provisions of the CCS (CCA) Rules,
1965. Further, “the report of the Complaints Committee shall be deemed to be an
Inquiry Report under the CCS (CCA) Rules, 1965. Thereafter, the Disciplinary
Authority will act on the report in accordance with the rules.” Sub-rule (2) of rule
14 of the CCS (CCA) Rules, 1965, as amended, provides that the Complaints
Committee shall be deemed to be the Inquiring Authority appointed by the
Disciplinary Authority for the purpose of these Rules.
309
3.29. PERIODIC REVIEW UNDER FR 56/ RULE 42 of CCS
(PENSION) RULES, 2021 (erstwhile Rule 48 of CCS (PENSION) RULES,
1972)
This wing is mandated to process the cases of the officers and staff serving
in the organisation of the PCDA/CDA for periodical review of performance with
a view to ascertain whether the Government servant should be retained in service
or retired from service in public interest in terms of the provisions contained in
FR 56(j), FR 56 (l) and Rule 42 of CCS (Pension) Rules, 2021, erstwhile Rule 48 of
CCS (Pension) Rules, 1972.
The cases of the Government Servants covered by FR 56(j), 56(l) or Rule 42

of CCS (Pension) Rules, 2021 (erstwhile Rule 48 (1) (b) of CCS (Pension (Rules),
1972),now should be reviewed before he/she attains the age of 50/55 years, in
cases covered by FR 56(j) and on completion of 30 years of qualifying service
under FR 56 (l)/Rule 42 of CCS (Pension) Rules, 2021 (erstwhile Rule 48 of CCS
(Pension) Rules, 1972), as per the following time table and in sync with the
instructions issued by the Government from time to time :-
Quarter in which Cases of Government servants who will be attaining the age
review is to be of 50/55 years or will be completing 30 years of service or 30
made years of service qualifying for pension, as the case may be, in
the quarter indicated below to be reviewed
January to March July to September of the same year

April to June October to December of the same year
July to September January to March of the next year
October to April to June of the next year
December
310
3.30. REVIEW OF MECHANISM TO ENSURE PROBITY
AGAINST GOVERNMENT: REPORTS THROUGH PROBITY
PORTAL
In light of instructions issued by the Government and circulated by the

DAD HQrs from time to time, the monthly and quarterly reports on review of
performance of Government Servants as per provision of FR 56(j) & other similar
provisions, in the following proforma, are to be rendered to DAD HQrs by the
dates intimated from time to time through eSuchna Portal.
311
3.31. GRANT OF ‘NO OBJECTION CERTIFICATE’
This wing shall also entertain the requests for grant of ‘No Objection
Certificates’ for obtaining Indian Passport and also for proceeding abroad in all
cases falling under their purview.
The following procedure is to be adopted for issue of ‘No Objection

Certificate (NOC)’ or ‘Identity Certificate (IC)’:
Sl. Level of Procedure to be followed

No. Officers
1. SAG & above The applications of the officers may be forwarded

to DAD HQrs for obtaining approval of the
Competent Authority. Consequent upon getting
intimation for the approval, the NOC/IC may be
issued by an officer of the level of Under Secretary
and above (DCDA & above) at their end.
2. Below SAG The applications are not to be sent to DAD HQrs.

The PCsDA/CsDA and equivalent officers would
be the Competent Authority to approve Ex-India
leave and to issue NOC/IC at their end.
312
3.32. Annual Performance Assessment Report (APAR)
1. Objective:
Performance Assessment Report (PAR) is an important report on an

official’s performance for a year or a certain period of the year. It is meant to
provide an overall comprehensive view of the official’s performance as it
contains self-appraisal by the official and appraisal of his/her performance by
his/her superiors on various attributes.
2. Rules:
PARs are generated and maintained in accordance with orders and

guidelines issued by the DoPT from time to time. The Assessing Authorities for
an official are decided as per the instructions/ circulars issued by the DAD HQrs
from time to time.
3. PAR Generation:
3.1. Schedule:
PAR of an official is generated under following conditions:
a) At the end of a financial year.
b) In case of change in his/her Reporting Officer, provided he/she has

worked under the Reporting Officer for at least 3 months.
c) In case of retirement of the official.
3.2. Process:
PARs are written electronically on an online portal named SPARROW (Smart

Performance Appraisal Report Recording Online window). The process of
generation and completion of PAR is shown in a flow chart.
3.3. Representation against PAR:
In case the official is not satisfied with the grading/remarks by the assessing
authorities, he/she can submit a representation to the Competent Authority (i.e.
313
the next higher authority of the Accepting Authority) on SPARROW. The entire
process is shown in a flow chart.
3.4. Custody of PARs:
As per procedures laid down in orders issued by the Government of India,

the PAR dossiers of all IDAS officers are maintained in the DAD HQrs. PARs of
other officials are maintained by the respective PCDA/CDA offices.
Annual Performance Assessment Report (APAR) in respect of officials on

deputation outside the Department will be called for from the Borrowing
Organisation by the offices of the respective Proforma PCDA/CDA.
In cases, where the APARs/ MTPARs {Mid-Term PARs} are processed &
finalized manually, the representations against entries and final grading in
APARs/ MTPARs may be continued to be processed through offline mode for
consideration by the Competent Authority.
Note: The flow chart on SPARROW/online APARat the end is illustrative but
not exhaustive. The instruction/guidelines on the subject issued by the
Government and Department from time to time may be referred while dealing
with these cases.
314
3.4. Process of generation and completion of PAR on
SPARROW
STEP ENTITY ACTIVITY TO BE DONE
NO. INVOLVED
STEP 1 PAR Creates workflow by selecting period of report,
Manager choosing the appropriate form and mapping the
Assessing Authorities.
Generates the PAR by filling basic details and
forwarding it to the ORU.
STEP 2 Officer Can cross check details of the generated PAR and
Reported send error report online if any discrepancy is
Upon (ORU) noticed.
Can check the workflow of the PAR.
Submits self-appraisal by filling relevant columns
and forward it to the Reporting Officer.
STEP 3 Reporting Assess performance of the official on various

Officer attributes, awards grading on each of them on a
scale of 1-10 and draws a pen picture of him/her.
Submits the appraisal to the Reviewing Officer.
STEP 4 Reviewing Reviews the appraisal of the official, awards

Officer grading on various attributes on a scale of 1-10
and draws a pen picture of him/her.
Submits the review to the Accepting Authority.
STEP 5 Accepting Agrees/disagrees with the appraisal and/or

Authority review of the official and awards an overall
grading on a scale of 1-10.
Accepts the PAR and send it to the PAR Manager.
STEP 6 PAR Discloses the PAR to the official

Manager
315
NO. INVOLVED
STEP 7 Officer (a) Agrees with the PAR and accepts it or,
Reported (b) Does not agree with grading and/or remarks
Upon (ORU) of appraising authority and represents against the
PAR (Action on representation and further
process has been elaborated separately in next
page).
STEP 8 PAR (In case of the official accepting the PAR) Closes
Manager the PAR.
Now the PAR becomes available in account of the
Official and the Dossier Access Authority of the
SPARROW portal.
316
3.5. Process of representation against PAR on SPARROW (contd.
from step 7 of PAR process)

NO. INVOLVED
STEP 1 Officer Reported Submits representation against the PAR.
Upon (ORU) Sends it to the PAR Manger.
STEP 2 PAR Manager Maps the Competent Authority.

Forward the representation to him/her.
STEP 3 Competent Forwards the representation to the Reporting

Authority Officer.
STEP 4 Reporting Views the representation.

Officer May revisit appraisal of the official and
modify the grades or remarks, if satisfied.
Enters remarks and sends to the Reviewing
Officer.
STEP 5 Reviewing Views the representation and the remarks or
Officer modifications, if any, by the Reporting Officer.
May revisit review of the official and modify
the grades or remarks, if satisfied.
Enters remarks and sends to the Accepting
Authority.
STEP 6 Accepting Views the representation and the remarks or
Authority modifications, if any, by the Reporting Officer
and Reviewing Officer.
May revisit acceptance of the official and
modify the grades or remarks, if satisfied.
Enters remarks and sends to the Competent
Authority.
317
NO. INVOLVED
STEP 7 Competent Considers the representation objectively.
Authority Communicate the decision to the PAR
Manager.
STEP 8 PAR Manager Forwards the decision and PAR to the official.
STEP 9 Officer Reported Accepts the PAR and sends to the PAR
Upon (ORU) Manager.
STEP 10 PAR Manager Closes the PAR.

Now the PAR becomes available in account of
the Official and the Dossier Access Authority
of the SPARROW portal.
318
3.33. Grievance
3.33.1. General
Grievances are the expressions of resentment against specific acts of

omission or commission that are wrong or perceived as wrong and require
corrective action. If a grievance from employees (serving/retired) or citizens is
received, it needs to be redressed as per the guidelines on the subject and within
the prescribed timeframe.
Grievances are received through Centralized Public Grievance Redress and

Monitoring System (CPGRAMS), an online platform of the Department of
Administrative Reforms & Public Grievances (DARPG), Ministry of Personnel,
Public Grievances and Pensions, available to the citizens 24x7 to lodge their
grievances to the public authorities on any subject related to service delivery.
The grievances are also received in hard-copies through the MOD (Finance)
and other Ministries/Departments and applicants.
The grievances received in the DAD HQrs as well as in the offices of the
Principal Controllers and Controllers are examined and action is taken promptly
as per the orders/instructions/guidelines on the subject.
The grievances received in respect of matters relating to pay and

allowances, pensions, etc. shall be catered through respective automated system
viz. CPS, SPARSH, etc.
3.33.2. Appeal on Grievance
The Ministry of Personnel, Public Grievances & Pension, Department of

Administrative Reforms & Public Grievances (DARPG) has, during January 2021,
introduced an Appeal Module, a provision for making complaints against the
orders/ decisions of the Department in disposal of grievances, where the
applicant is not satisfied with the disposal of his/ her grievance. Officers of
appropriate rank are nominated as Nodal Appellate Authority for MoD (Fin) and
Appellate Authority in the DAD HQrs. The concerned sections of DAD HQrs, in
consultation with PCDA/ CDA if required, will process the Appeals and the
Nodal Appellate Authority will finally dispose of the Appeals through Grievance
Cell of the DAD HQrs.
319
Chapter – IV
ACCOUNTS WING
ACCOUNTS & BUDGET WING AT DAD HQRS
4.1. Objectives
The objectives of the Accounts Wing are:-
(i) To provide accounting and financial information to executive

authorities for the performance of their Managerial functions.
(ii) To provide timely and accurate figures to Government for
preparation of financial accounts of the Defence Services.
(iii) To identify, manage and take steps for keeping the IT systems
(PRABAL, etc.) abreast with the functional requirements of the
stakeholders and the DAD.
(iv) To provide and update adequate systems for ensuring that receipts
and expenditure pertaining to Defence Services are promptly brought
to account under appropriate Heads.
(v) To advise administrative and financial authorities at DAD HQrson
matters relating to accounting of receipt and expenditure in respect of
Defence Services.
(vi) To furnish statistical and financial statements to Government for
purposes of financial administration and Control.
(vii) To ensure that the programme and procedures in regard to Accounts
and Compilations thereof are fully and properly implemented by all
concerned;
4.2. Duties
The duties of the Accounts Wing are:
(i) To manage all activities relating to handling of accounts and

budget in the Defence Accounts Department.
320
(l) To maintain close liaison with the Ministry of Defence, Ministry
of Finance, Service HQrs and other organizations for managing
the related affairs.
(li) To continuously carry out and monitor activities for integration
of offices and stakeholders, procurement, processing of bills
through GeM portal and proper accounting thereof.
(lii) To prepare SCT – Civil & Defence and combined Finance and
Accounts for the DAD.
(liii) To carry out monthly and annual closing of Accounts.
(liv) To consolidate and carry out scrutiny of the AROB and ARWE.
(lv) To carry out correspondence with Civil Ministries on various
financial aspects including LoA, DAVP, etc.
(lvi) To examine issues raised by the various PCsDA/CsDA offices
and clarify them for future observance.
(lvii) To deal with accounting observations of CGA.
(lviii) To deal with the audit observations of DGADS.
(lix) To obtain, compile and render the Appropriation Accounts.
(lx) To obtain consolidate and project the BE, RE for the various
Demands of Grants being dealt by DAD including Defence and
Civil Pension.
(lxi) To correspond with FP Directorate of Services (Defence, other
civil organizations, PCsDA/CsDA on budget related issues.
(lxii) To monitor Cash Requisition Estimates.
(lxiii) To deal with all matters related to PRABAL.
(lxiv) To review and follow up activities relating to rectification of
errors in accounts due to parallel run of PRABAL and TULIP,
GeM-TULIP, NCS-TULIP, etc.
(lxv) To deal with Defence Proforma Account and reconciliation
issues.
(lxvi) To attend meetings and activities related to GASAB, banks, etc.
relating to finance and budget aspects.
(lxvii) To monitor and issue instructions relating to review and
correction of RDR & CHB Heads.
(lxviii) To monitor issues relating to GST and clarify different aspects to
the DAD and other stakeholders.
(lxix) To carry out Journal Entry for the DAD.
321
(lxx) To monitor the expenditure under Charged Expenditure and
receipt of sanctions in respect thereto.
(lxxi) To monitor the accounting procedure and progress of
expenditure in BRO.
(lxxii) To carry out review of all financial compilations.
322
4.3. Review of Monthly Revenue, Debt and Remittance
Heads and Service Heads Compilation
Compilation of the accounts of receipts and expenditure of the

Army, Navy and Air Force is done through PRABAL/NCS. These
compilations are reviewed on Broadlines and any erroneous adjustments
noticed during the course of the review will be communicated to the
Principal Controllers / Controllers concerned for rectification. The Task
Holders concerned while checking the monthly compilations should
generally observe the following points:
(a) No adjustments are made by the Principal Controllers/Controllers

under the heads which have been deleted and that the amounts already
compiled promptly under the appropriate heads.
(b) The adjustment on account of ‘Interest’ on various provident funds is

made at the end of the year, and not during the course of the year.
(c) No plus/minus amounts have appeared under deduct/other heads.
In addition to the checks enumerated above, special attention should

be paid to the following points by the Task Holders in checking the
accounts for March Final and March Supplementary:
i. No detailed head other than a deduct head has been closed at the end
of the year with a minus figure.
ii. All prescribed annual adjustments have been carried out.
iii. The outstanding balances under Defence Exchange Accounts are
reduced to minimum.
323
4.4. Preparation and Rendition of Financial Statements and
Accounts
After the close of the accounts for March (Supplementary

Corrections), the following accounts and financial statements will be
prepared and furnished to the authorities mentioned against each statement
in succeeding paragraphs.
324
4.5. Summary of balances (Statement No. 5)
The summary of balances as on 31st March along with explanatory

notes is required to be furnished by the Principal Controllers/Controllers to
the DAD HQrs for submission to the CGA, Ministry of Finance, Department
of Expenditure, New Delhi.
325
4.6. Statement of Receipts Disbursements and Balances under
heads of Account relating to Debt, Deposits and Remittances and
Contingency Fund of India (Statement No. 13)
The above statement is consolidated in DAD HQrs with reference to

the Annual Review of Balances received from the Principal
Controllers/Controllers offices showing the balances as on 31st March of the
year and furnished to the CGA, Ministry of Finance, Department of
Expenditure, New Delhi for incorporation in Union Government Finance
Accounts.
The copies of the above statements are also endorsed to the DGADS
and Ministry of Defence (Finance/Budget).
326
4.7. Defence Services portion of Combined Finance and
Revenue Accounts
The above account is prepared based on the compiled accruals

relating to Defence Services i.e. Army, Navy, Air Force, R&D, etc. and
Capital Outlay upto the end of year.
This account reflects the Major Heads / Minor Head-wise Receipts

and Charges for Defence Services and submitted to the Ministry of
Defence (Finance/Budget) with a copy to DGADS and CGA, Ministry of
Finance, Department of Expenditure.
This account forms part of the Union Government Finance

Accounts.
327
4.8. Statements No. 3, 4 & 11 of Union Govt. Finance
Accounts
The Statements No. 3, 4 & 11 of Union Govt.

Finance Accounts for the Defence Services portion are prepared and
rendered to the CGA in the format and on the dates prescribed by them
each year.
The Statements No. 3, 4 & 11 contain the details

of outstanding loans and advances by the Union Govt., guarantees given
by the Union Government to the Financial Institutions, etc. including
the details of investments of the Union Govt. in statutory
corporations, companies, other joint companies, Co-operative Banks and
Societies, etc.
328
4.9. Statement of extra expenditure incurred on troops
called in aid of civil power on occasions like fire, floods,
earthquake, strike, etc.
With reference to the general orders and special instructions

issued from time to time, the Principal Controllers/Controllers are
required to furnish expenditure statements i.e. outstanding for which
claims have been raised and expenditure incurred for which claims are
yet to be raised annually by 15th June every year to the DAD HQrs.
These reports will be consolidated and copy of the Consolidated
Statement furnished to Services HQrs and to Ministry of Defence
(Finance/Budget).
329
4.10. Expenditure statements when troops are sent
overseas on International Assignments
This Wing also discharges the responsibility of the

maintenance of statistics of expenditure when Indian Defence Forces
are sent out of India, on duties of International character. Usually on
such occasions the statistics are collected by the Principal Controllers
/Controllers office specifically authorized for the purpose, who will
consolidate and furnish the consolidated expenditure statement to this
Wing of the DAD HQrs.
These statements will be sent to the different branches of the

Ministry of Defence (Finance) and other parties concerned according to
the orders issued in each case.
Any query raised with reference to these expenditure

statements by Ministry of Defence (Finance) and all other references
received from Controllers and others, with regard to the personnel or
otherwise will be dealt within this Wing, in consultation with the
concerned Systems/Audit Wing, wherever necessary.
330
4.11. Preparation of Budget Estimates in respect of
Defence / Civil Pension
The Defence Pension budget estimates projected by the office of the

Principal CDA (Pensions), Prayagraj are examined and submitted to the
Ministry of Defence (Finance/MO) for their examination and onward
submission to the Ministry of Finance (Budget Division).
The Budget Estimates in respect of Civil Pension proposed by the

office of the Principal CDA (Pensions), Prayagraj in respect of Defence
Accounts Department/CGO/JKLI, CSD HQrs. in respect of CSD
employees and AO(DAD), Ministry of Defence (Civil) in respect of
Ministry of Defence (Secretariat) are examined, consolidated and
submitted to the Central Pension Accounting office for their
examination, and consolidation in centralized grant and onward
submission to Ministry of Finance.
331
4.12. Dealing with issues related to GeM and PRABAL
This Wing is also mandated for keeping a continued watch on the
various activities being undertaken through GeM and PRABAL for
smooth conduct of all kind of activities through these platforms. This
Wing is also mandated to deal with the various aspects raised or
encountered by the field offices or the stakeholders while utilizing these
platforms for processing of bills, payment and accounting so as to
fructify the utmost beneficial outcome of these systems.
This Wing has to constantly strive to look for and adopt new
advancements for making a robust and functional system for dealing
with all kind of payment and accounting activities in the DAD.
332
4.13. Constant liaison with other Ministries/Departments,
Banks, GASAB, etc. for various accounting and budgeting
roles
This Wing is mandated for being actively and constantly

associated with the Ministries/ Departments and other outside
institutions so as to have stock of latest methods and policies to be
adopted for reducing the issues faced in various budgeting, payment,
accounting and other activities for conduct of smooth business of the
Government.
This Wing has to issue necessary clarifications and orders to the

field offices as and when some modifications in existing activities or
introduction of a new method is to be adopted and followed.
333
4.14 Advances from the Contingency Fund of India
and Charged Expenditure
This Wing is mandated to monitor the cases relating to advances

from the Contingency Fund of India.
This Wing also monitors that the cases where Charged

Expenditure has been incurred are duly adjusted through receipt of a
proper sanction and to prepare a statement showing the items of charged
expenditure incurred during the year so that the appropriate report may
be rendered to all concerned authorities.
334
4.15. Amendment to Classification Hand Book and
RD&R Heads of Pamphlet
All amendments to the Pamphlet of Revenue, Debt and Remittance

heads and Classification Hand Book (Defence Services) Receipts &
Charges, are issued by the DAD HQrs under delegated powers with the
concurrence or at the instance of the Ministry of Defence (Finance) in
consultation with the accredited Audit Officer namely DGADS.
The prior approval of C&AG of India will also be obtained
(through CGA/DGADS) in cases where an amendment affects Major or
Minor Head in the Pamphlet of RD&R and Classification Hand Book
(DS) Receipts& Charges.
335
ACCOUNTS WING AT PCsDA/CsDA
4.16. Objectives
The Objectives of Accounts Wing are: -

(i) To provide accounting and financial information to executive
authorities for the performance of their Managerial functions.
(ii) To provide timely and accurate figures to Govt. for preparation
of financial accounts of the Defence Services.
4.17. Duties
The work in Accounts Wing may be broadly divided into the

following categories: -
(i) Maintenance of electronic Debt Head Registers (e-DHR).
(ii) Watching automatic settlement of transactions under the Defence

Proforma Accounting procedure by the system.
(iii) Watching automatic reconciliation of the balances as per monthly

statement of closing balances of R.B.I. with the balances worked
out in the books of the DAD by the system.
(iv) Watching clearance of the outstandings in respect of suspense

heads under the Defence Proforma Account "Remittance into
Banks/Treasuries", "Cheques and Bills, Pay Accounts Offices
Electronic Advices”, "Reserve Bank Suspense Classified/
unclassified / Public Sector Bank Suspense, etc."
(v) Watching adjustment of Defence transaction arising in England

and adjustable in India and payments in India on behalf of U.K.
Government by the Defence Accounts Officers.
(vi) Extracting Budget Estimates (Cash Requirement Estimates) from

the system for which Defence Accounts Department is responsible.
336
(vii) Closely watching progress of expenditure against allotments in
respect of Locally Controlled Heads generated by the system.
(viii) Generation of Appropriation Reports from the system and analysis

thereof.
(ix) Watching maintenance of Defence Ledger by utility in-built in the

system.
(x) Generation of periodical MIS on Review of Balances in respect of

Defence and D.A.D.
(xi) Generation of Annual Statement of Expenditure under Head

"2049- Interest on other obligations" by the system
(xii) Checking of Journal Entries for updating ledger balances.
337
4.18. MAINTENANCE OF ELECTRONIC DEBT HEAD
REGISTERS
4.18.1. General
Transaction executed by the Defence Accounts Departments
entails operation of any of the following categories of code-heads:
Classification Pamphlet of Revenue, Debt & Remittance Heads

Hand Book (RDR Pamphlet)
(CHB)
Service Revenue Debt Remittance

Heads Heads Heads Heads
Revenue & Revenue & Remittances

Capital Capital into Banks/
receipts & receipts & treasuries
expenditure in expenditure in
respect of respect of
Defence Civil Service
Service Estimates of
Estimates MoD
I-Deposits II-Advances III-Suspense IV-Loans and Advances by

(a) Field Deposits (a) Permanent Accounts the Central Government.
(b) Misc. Deposits Advances (a) Credit (a) Loans to Local Funds,
(c) Trust Interest (b) Advances-Field and their Private Parties, etc.
Fund Cashier's Account clearance (i) Regt. and other loans-
(d) Unclaimed (c) Advances- (b) Debits Defence.
Deposits in the Adjustable in and their (ii) Misc. Loans and Advances
P.F. A/C PCsDA/CsDA. clearance to displaced Personnel
(i) G.P. Fund. (d) Other Advances- )
(b) Loans to Govt. Servants,
(ii) D.S.O.P. Fund Repayable. etc.
(iii) CPF. (e) Misc. Advances A
(i) HBA
(iv) A.F.P.P.F. (f) Advances- PAO d
(ii) Advances for the
(v) D.S.O.P.F. (g) Special Advances v
purchase of Motor
(vi) I.O.F.W.P.F. (h) Imprest Holder’s a
conveyances.
(vii) N.D.W.P.F. Advances n
(iii) Advances for the
(viii) Other Misc. c
purchase of Other Motor
P. F. e
conveyances.
s
(vi)Advance for purchase of
Personal Computers.
f
o
r
338
t
h
e
4.18.2. POSTING e-DHR
Whenever any transaction comprising of code heads pertaining to

Debt head is operated on the system, the system will automatically
collect the entire details of such transactions and post them into relevant
e-DHR.
The system is designed in such a manner that whenever any

amount is to be released/ received by operating the debt head, payment
will be released by the payment gateway only after updation of the loan
master (if required) and posting of necessary entries in the e-DHR.
4.18.3. RECOVERY OF ADVANCES
The recovery of an advance will commence from the first month's

pay drawn after its receipt automatically be the system (CPS) on the
basis of the data provided by the e-DHR.
4.18.4. CALCULATION OF INTEREST
On all interest-bearing advances, interest will be charged at the

rate prevailing at the time such advances are taken, and will be
calculated on the balances outstanding on the last day of the month by
the system automatically on the basis of the data filled therein by the
stakeholders while sanctioning the advances. The amount of interest
thus calculated will be recovered in one or more instalments after the
principal has been repaid; and the instalments of interest should not be
appreciably greater than the instalments by which the principal was
recovered. The balances outstanding on the last day of the month will be
automatically updated by the system month.
When any individual is transferred from the audit jurisdiction of

one PCDA/ CDA to the another, on feeding the necessary Part – II OO
notifying posting-in and posting-out of the individual in the system
(CPS), managing rights of accounts of that individual will automatically
be mapped to the new stakeholder and the concerned Pay Accounts
Service Centre (DAD Office).
339
Accordingly, when an individual against whom an advance is
outstanding is transferred to the payment jurisdiction of another Audit
Officer, there will be no requirement of operating any transaction on the
system apart from feeding Part – II OO notifying transfer.
340
4.19. SUSPENSE ACCOUNT
Receipts and payments which cannot, in the absence of full

particulars, be allocated to any head of account or when the heads to
which the transactions are likely to be adjusted are not known, will be
initially compiled to the Head "Suspense Account”. The clearance of the
amount accumulated under Suspense Heads will be automatically done
by the system on real-time basis. This wing may generate periodical MIS
for the analysis of outstanding amounts and reasons there for as per
instructions issued from time to time by the DAD HQrs.
341
4.20. MORTGAGE BOND REGISTER
When a charge for an advance for the purchase of a Personal

Computer appears in the e-DHR/ Loan Master, the Account Wing will
ensure if the Mortgage Bond in respect of the advance has been received
and recorded in the Mortgage Bond Register to be mandatorily
maintained by the stakeholders. A check in this regard has also been
enabled in the system. Necessary updations on this regard are to be
made by the stakeholders, which will be closely watched by the
concerned Accounts Wing.
In case of an advance for meeting out any of the purpose

mentioned in HBA Rules, as amended to time, is received, all original
documents such as Mortgage Deeds, title to land/property, insurance
policy, etc. are to be obtained from the Government servant, who
received the advance, by the Head of the Department (stakeholder) who
sanctioned the advance and are to be kept in safe custody by him. A
check in this regard has also been enabled in the system. Necessary
updations on this regard are to be made by the stakeholders, which will
be closely watched by the concerned Accounts Wing.
Note: In the case of Personnel of the Defence Accounts Department, these

documents will, however, be recorded in the Mortgage Bond Register (IAFA-
505) and kept in safe custody by the Accounts Wing of the office of the
PCDA/CDA.
If the requisite bond or other prescribed documents referred to in

above Para has not been received by the Head of the Department
(stakeholder), it will be obtained from the individual concerned and
necessary updations will be made in the system. Immediately, on receipt
of Mortgage Bonds etc., the necessary particulars will be recorded in the
several columns of the register and the bond will be kept under lock and
key in the personal custody of the by the Head of the Department
(stakeholder).
In the case of House Building Advance, it will be seen that the

property is kept properly insured until the advances are fully liquidated.
342
The information regarding the date up to which and the amount for
which insured will be obtained by the by the Head of the Department
(stakeholder) for posting in the register. Account Wing will remind the
by the Head of the Department (stakeholder) in case the particulars of
the renewal of the insurance policy are not received in time and updated
on the system.
As soon as an individual has fully repaid the advance granted to

him with interest due thereon, the Mortgage Bond or other prescribed
document or declaration will be returned to him and then necessary
entries made in the register and updated on the system also by the Head
of the Department (stakeholder).
When an individual against whom an advance granted under

HBA Rules is outstanding gets transferred to the payment of another
audit officer, the concerned, the by the Head of the Department
(stakeholder) will forward the entire original documents such as
mortgage deeds, title to land/property, insurance policy, etc. to the new
stakeholder and ensure its acknowledgement by the latter. An entry to
this effect will also be made in the register as well as on the system.
343
4.21. PROCEDURE REGARDING ADJUSTMENT OF
TRANSACTIONSRELATING TO DEFENCE PROFORMA
ACCOUNTS
4.21.1. GENERAL
The transactions which are settled through the Defence Proforma

Account are mainly of the nature specified below:-
(i) Remittance into banks and Treasuries on Military Receivable

Orders (e-MROs).
(ii) Remittance to Defence Services from Banks and Treasuries i.e.

payments made through SBI CMP/SBI FAST Plus.
344
4.21.2. ADJUSTMENT PROCEDURE OF e-MRO
❖ e-MRO in pdf format and encrypted e-

Scroll will be downloaded by Accounts
Wing through PRABAL from SBI CMP
Portal.
❖ e-MRO will be adjusted by Accounts

Wing as under:
(+) CH RBI Deposit Head (93/21/00)
(-) CH Service Head
OR
(+) CH RBI Deposit Head (93/21/00)
(+) RT Service Head
❖ Internal validation checks
❖ Accounts Wing will verify the
will be carried out by
correctness of details regarding
PRABAL itself.
‘nature of payment’ and audit
❖ PRABAL System will
section/sub-office auto posted by generate the Punching
system from e-scroll data and if found Medium as per details filled
not correct, it will fill correct ‘nature by Accounts Wing.
of payment’ and Audit Section/Sub- However, it will not become
Office made available as Drop-Down part of compilation at this
Menu in PRABAL. stage.
❖ After approval of Audit

Wing/Sub-office, PRABAL
❖ Wrongly forwarded e-MROs will be
will generate the TE No., etc.
transferred to concerned PCDA/CDA and PM will become part of
through System. Compilation.
❖ e – MRO register will be
maintained by the system and
❖ Punching Medium of separate folios will be opened
adjusted e-MROs will be Audit Wing/Sub-office wise.
available for concerned ❖ PRABAL will generate
Audit Wing/Sub-office outstanding list of pending
concerned in PRABAL. approval by Audit Wings/
❖ Audit Wing/Sub-office Sub-office.
will verify each and every ❖ Will flash pending approval
detail (i.e. Depositor’s on dashboard of AOs and
name, amount, code heads GOs.
etc.) and will approve the ❖ PRABAL will account for all
same. PMs pending for approval by
Audit Wing/Sub-offices upto
end of the month and make it
part of Compilation.
345
4.21.3. REMITTANCE TO DEFENCE SERVICES
FROM BANKS AND TREASURIES i.e., PAYMENTS MADE
THROUGH SBI CMP/SBI FAST PLUS
All payments on account of Pay & Allowances, Procurement of

goods and services, etc., for which DAD is responsible will be made by
PRABAL, CPS, DTS, etc. through payment gateway of the bank such as
SBI CMP/ SBI FAST PLUS (as the case may be). Settlement of such
payments with RBI is made as per the following procedure:
PRABAL/ CPS/ DTS
Compliance Audit by relevant Wing of

PCDA/CDA/ Sub-office and
authorizing payment of Pay &
Allowances, Procurement of goods and
services, TA/DA, etc. to the concerned
beneficiary. Auto generation of
Punching Medium by the system
thereby posting the amount of each
paid item to code – head 93/020/91
Release of Payments
through SBI CMP
Fast Plus
Encrypted e-debit scroll will be

fetched daily by the PRABAL system
and necessary Transfer Entry will
automatically be operated for linked
items to afford credit to Defence
Proforma account and clear 93/020/91.
Accounts Wing will generate MIS to
watch settlement of all the items on
periodical basis.
346
4.21.4. e-FOCAL POINT BRANCH (FPB): SBI – CASH
MANAGEMENT PRODUCT
Information Technology interfaces of the Defence Accounts

Department i.e., PRABAL, CPS, DTS, etc. are linked to e-payment
gateway of the accredited bank i.e., SBI – CMP Portal. Its main features
are as under:
(i) Cash Management Product (CMP)/SBI FAST Plus is a customised

portal of SBI for the Defence Accounts Department for making e-
payments through a secured payment gateway where payment
advice is authenticated by digital signature.
(ii) CMP Centre acts as link as well as e-Focal Point Branch (FPB) for
e-payment to the beneficiaries through SBI FAST Plus. Payment
files, in a prescribed format, are routed by Account Officers (AO)
to CMP portal for effecting e-payments. The CMP Centre is one
point contact for Defence payments.
(iii) The system involves a secured web-portal which works as a

payment gateway. There is a uniform and approved process across
the country with a stricter Turn-around Time (TAT). Payment files
are processed on the same day.
(iv) Settlement of Fund with RBI CAS Nagpur is based on mandate

without any physical instrument. Reimbursement of Funds is
claimed from RBI only for and after the payment is effected.
(v) Daily updating of paid or unpaid data by CMP/FAST Plus to all

the Accounts Offices on the portal for online reconciliation of
payments done on daily basis supported by payment scrolls.
(vi) Accurate reporting mechanism of transactions and accounts.

Scrolls uploaded on the portal contain full history of the
transaction including payment reference number, date of payment
and date of settlement with RBI.
347
(vii) Centralized monitoring of Turnaround Time and effective control
of Defence Accounts.
(viii) As processing of files, payment to beneficiaries, capturing of

payment reference number, settlement of fund with RBI and
uploading of scrolls is an automated process, scaling up of the
operations does not affect the process flow and the Turnaround
Time.
(ix) All payment data is stored in electronic form. The same can be
retrieved at no time for compiling an MIS.
(x) The Accounts Wing monitors all rejected (items) listed in the
Minus debit Scroll reported by the system. As the responsibility of
creation of updation of primary data (i.e. bank details of
beneficiaries) in the DAD portals i.e. PRABAL, CPS, DTS, etc. lies
with the stakeholders, an intimation of all such rejected items will
be made by the system in their user interface. Payment on account
of rejected items will be reprocessed by the concerned Payment
Wing after correction/ updation of beneficiaries’ credentials in the
system.
2. The Defence Proforma Transactions, as advised by the SBI to

the RBI, Central Accounts Section (CAS), Nagpur, date of settlement
with the RBI, Debit Scrolls, Date Wise Monthly Statement (DMS),
Monthly Settlement Statement (MSS) will be made available on the
portal by the SBI which will be extracted by the DAD PRABAL System
for the purpose of compilation, accounting and linking by the system
itself.
3. The details of the credited and uncredited amounts will also be

available on the SBI CMP/SBI FAST Plus portal which will be extracted
by the system for linking and pairing of SBI CMP/SBI FAST Plus Advice
Sheet for the reconciliation of the compilation figures. The rejected items
will be dealt in the same manner as provided in the preceding Para.
348
4.21.5. MINUS DEBIT SCROLL
The Minus Debit Scroll is the scroll containing the details of

rejected items, i.e., items for which the respective accounts could not be
credited at all. An illustration in this regard is as under:
Illustration:
A Payment file is automatically uploaded by the DAD System on the SBI
Portal for Rs. 50,000/- including 50 items. The SBI sends the Main Debit Scroll
for Rs. 50,000/- after effecting payments and debiting the Defence Proforma
Accounts with the RBI. The main Debit Scroll amount will be for Rs. 50,000/-.
However, it is possible that there may be cases which got rejected and the
accounts were not credited for various reasons. This information from other
banks generally comes to the SBI after few days from the day the payments were
passed on by the SBI.
Since, the rejections are known only after few days, the SBI will send
debit amendment advice to the RBI to accordingly reduce the debit amount from
the concerned Defence Proforma Account. Assuming that 10 items for Rs.
10,000/- got rejected, the rejected amount i.e.,Rs. 10,000/- of 10 items and the
details of rejected items are sent to the concerned PCsDA/CsDA through a
separate e-scroll, which has been named as ‘Minus Debit scroll’ for the sake of
understanding and convenience of office. The accounting of these items has to be
done accordingly.
2. The rejected items will be adjusted automatically by the system by

compiling them as minus charge in the code head 00/020/96
(Uncredited Suspense Account) and an intimation to this effect will be
posted on the interface of the concerned stakeholder responsible for
creation and updation of beneficiaries’ credentials. After necessary
correction/ updation is done by the concerned stakeholder, the same
will be reprocessed by the concerned payment wing through system-
built utility. The amount in question will be automatically compiled as
plus charge to the code head 00/020/96 by the system. The
corresponding balance in the suspense account will accordingly be
cleared.
349
3. At the end of every month, a consolidated Punching Medium for
the Debit Scrolls (For Payment) and Minus Debit Scroll (For rejected
items amount) for the month, will be prepared by the system as follows:
Code Head Receipts Code Head Charges

(+) (-) (+) (-)
28/021/00 50,000 00/020/96 10,000
00/020/91 50,000
28/021/00 10,000
A Punching Medium will be prepared by the system on receipt of

the details of rejected amounts mentioned in the Minus Debit scroll:
(a) In case the transaction has to be totally cancelled:

Code Receipts Code Head Charges
Head (+) (-) (+) (-)
020/96 10,000
Concerned 10,000
Service Head
(b) In case of Re-issue of the Payment to the beneficiary:
Code Head Receipts Code Head Charges

(+) (-) (+) (-)
93/020/91 10,000 93/020/96 10,000
350
4.22. PROCEDURE FOR CMP REJECTIONS
Payment PRABAL/ CPS/ DTS SBI

Section FASTPLUS
Reprocess rejected items Extraction of encrypted

for payment against each DMS/Minus DMS by PRABAL
and linking the same with SBI
PRN in PRABAL after
CMP e-advices. PRABAL will
auto posting of PRN by
generate unique PRN against each
the system rejected item.
Validation & Approval of

rejected item in PRABAL for
each PRN and linking the
Updation of same with Minus Debit Scroll
bank details
by
stakeholder
Intimation to unit/stakeholder for:

• updating bank details in Vendor
master on PRABAL
OR
• updating bank details in
beneficiary master on CPS/ DTS
Indicates flow of information only
Indicates process flow
351
4.23. DEFENCE TRANSACTIONS THROUGH e-
TICKETING
Under e-ticketing system Air Travel & railway tickets can be

booked by any unit over the internet through a centralized portal of the
CGDA named as Defence Travel System (DTS). The system facilitates
entitlement check, authorization, payment, accounting and budgeting of
Defence travel. All journeys being performed by the Armed Forces
personnel on railway warrants have been included in the system.
Under this system booking/ cancellation of Air/railway tickets are
being done by respective units. Online accounting and payment work in
respect of railway tickets is being done centrally (on all-India basis) by
CDA (Navy/ Coast Guard), New Delhi. In case of Air Travel the same is
being done by PCDA (O)/A.F.C.A.O./N.P.A.O./respective PAO (ORs)
in case of Defence Personnel and Personnel Payment Wing (TA/DA –
Group) in case of Defence Civilians, DAD officers and staff.
The overall implementation, monitoring and control of Defence
Travel System is being done by CDA (Navy/ Coast Guard), New Delhi.
352
4.24. ACCOUNTING PROCEDURE OF DEFENCE
TRAVEL SYSTEM
4.24.1. Rail Travel

(Pay Accounts office includes any authority dealing with pay and allowances.)
Step 1. Booking is done through IRCTC. A fixed amount is paid as

advance into their rolling Account (RDS: Rolling Deposit Scheme). The
expenditure on account of booking is debited from this account and all
refunds after cancellation are credited to this account. A fixed amount is
withdrawn from treasury by DTS and paid to IRCTC as booking amount
from Imprest holders Advance Head

Head (+) (-) (+) (-)
93/020/91 XXXX 29/023/01 XXXX
(CMP) (Adv. to IRCTC)
Step 2 (a). In case of journey where 100% is to be borne by state, after

booking, expenditure is transferred to relevant service heads Punching
Medium (Class-II) and releasing advance payments to IRCTC.

Head (+) (-) (+) (-)
Concerned XXXX
Service Head
29/023/01 XXXX
(Adv. to IRCTC)
Step 2(b). On cancellation of e-tickets, transaction is reversed through

Punching Medium
Head (+) (-) (+) (-)
Concerned XXXX
Service Head
29/023/01 XXXX
(Adv. to IRCTC)
353
Step 3(a). In case of Concessional Journey, the amount is to be shared
between Govt and the officer. Recovery through Pay Accounts is
affected. Punching Medium (Class II) for booking the CVs against
advance payment to IRCTC.
Head (+) (-) (+) (-)
29/023/29 XXXX
(Concessional
vouchers)
29/023/01 XXXX
(Adv. to IRCTC)
Step 3(b). On cancellation of Concession Vouchers: The entries of step 3

(a) are reversed as follows Punching Medium (Class II):
Head (+) (-) (+) (-)
29/023/29 XXXX
(Concessional
vouchers)
29/023/01 XXXX
(Adv. to IRCTC)
Step 4(a). After downloading the data PAO segregates master missing
cases and carries out recovery action in the quarterly Abstract of receipt
and Charges.

Head (+) (-) (+) (-)
29/023/29 XXXX
(Concessional
vouchers)
00/016/01 XXXX
(Deductions
from Pay )
Step 4(b). In case of refund due to cancellation etc PM for in the

quarterly Abstract of receipt and Charges. (By PAO)
354
Head (+) (-) (+) (-)
00/016/01 XXXX 29/023/29 XXXX
(Crediting (Concessional
in Pay) vouchers)
4.24.2. Accounting Air Travel
The booking is done through two Authorized agents – M/S

Balmer Lawrie & Co Ltd and M/S Ashok Tours and Travels and
payment is done centrally. Expenditure is booked centrally by charging
respective Service heads and on cancellation, refund is booked through
reverse entry. The payment is adjusted through Punching Medium
(Class I).
355
4.25. TRANSACTIONS ORIGINATING IN DEFENCE
BOOKS WHICH ARE ADJUSTABLE AGAINST OTHER
PAOs/CIVIL MINISTRIES/AGs INCLUDING MINISTRY
OF RAILWAYS, DEPARTMENT OF POSTS AND
MINISTRY OF EXTERNAL AFFAIRS AND VICE-VERSA
4.25.1. Settlement of Inter Departmental Transactions

(IGA)through book adjustment or without resorting to Cash
Settlement (Letters of Authorization)
This relates to the programmes or activities for which one

Ministry/Department utilizes the services of another Central
Ministry/Department as its agent for executing the activity. In such
cases, the Financial Adviser/Pr. Chief Controller of Accounts/Chief
Controller of Accounts/Controller of Accounts of the functional
Ministry/Department will issue annual budget allocation letter {Letter
of Authorization (LoA)} , indicating the amount approved in the Budget
for the year for the programme or activity assigned to the agent or
executing Department, after obtaining necessary financial sanctions.
The executing Ministry/Department are authorized to incur

expenditure up to the limits specified in the authorization letter (LoA).
The allocated amount in such cases will not be available for re-
appropriation by the concerned functional Ministry/Department,
without the concurrence of agent Ministry/Department. A copy of such
sanction has to be endorsed to the Accounts Officer of the functional
department to enable him to keep a note of this in the Expenditure
Control Register maintained by him.
The functional Ministry/Department would also communicate the

Computer Code head number relating to the heads, to the Pay &
Accounts Office of the agent Ministry in the authorization letter. The
executing/agent Ministry or Department, on the condition of
observance of normal procedures of sanction will incur the expenditure.
They Pay & Accounts Office of the executing Ministry will book the
expenditure under the relevant expenditure head against the Demands
356
for Grants of the functional Ministry/Department and furnish the
monthly and progressive figures of expenditure to the Pr. Accounts
Office of the functional Ministry/ Department. This is to enable the
latter to monitor the flow of expenditure on the programme/activity and
prepare Appropriation Accounts related to the Grant.
The Accounts Officer of the executing/agent Ministry will not

honour any claim that would result in excess over the amount
authorized by the functional Department, in any case. The Principal
Accounts Offices of both agent and functional Ministries/Department
will conduct annual reconciliation of expenditure, before preparing their
SCT and Appropriation Accounts respectively.
All the civil ministries have been on-boarded on PFMS (Public

Funds Management System) and DAD on PRABAL (PFMS for Raksha
Budget Aaharan & Lekhankan). Both the portal being abridged to each
other will facilitate ‘Inter-Governmental Authorisation’ by one ministry to
the other and vice-versa on the LoA module available on PFMS/
PRABAL. The detailed process flow of operating LoA on PFMS/
PRABAL by the Ministries/ Departments is provided in the respective
user manuals.
357
4.25.2. ADJUSTMENT OF FOREIGN TRANSACTIONS
The Defence transactions in the United Kingdom requiring to be

adjusted in the Indian Books will be adjusted by Principal Chief
Controller of Accounts, Ministry of External Affairs on PFMS against the
LoA issued by the Principal Controller of Defence Accounts, New Delhi
on PRABAL in respect of:
(a) Payments made in England on behalf of Defence Services and

finally audited in that Country and compilable to respective Minor
Heads under Major Heads 2076, 2077, 2078, 2079 and 2080 of the
Defence Services Estimates.
(b) Other transactions such as the stores purchased for Defence

Services the cost of which is compilable to Major Heads 2076, 2077,
2078, 2079 and 2080”
(c) Chancery Account relating to the payment made to the

Officers/staff serving in High Commission of India, London and
recoveries effected from them.
The monthly statement of Receipts and Disbursements made by

High Commission of India (HCI), London Account in respect of (a) and
(b) above and (c) for Chancery Account for the net payments are sent to
PCDA, New Delhi by the Pr CCA, MEA.
358
4.25.3. IGA THROUGH DIGITAL LOA
(Goods & Services provided by MoD to other civil ministries)
Functional Agent
Ministry Ministry (MoD)
PFMS PRABAL
Pr.AO Pr.AO
Digital LoA
(PCCA) (CGDA)
Monthly Exp/Progressive
Exp/Surrender of LoA
PD PAO
(PAO/AG of (PCDA/CDA)
civil
ministries)
Submission of Audit
Claim and
GS Payment
L
Defence Services Training

Establishments (Units/DDO)
Pr.AO (CGDA) may contact DDO/Unit Code and PAO Code

mentioned in LoA, PRABAL will map 15-digit code to 7-digit code
head of CGDA and forward LoA to PAO (PCDA/CDA).
359
4.25.4. IGA THROUGH DIGITAL LOA
(Goods & Services provided by other civil ministries to MoD)
Functional Agent
Ministry (civil
Ministry (MoD)
ministries)
PRABAL PFMS
Pr.AO Pr.AO
Digital LoA (PCCA)
(CGDA)
Monthly Exp/Progressive
Exp/Surrender of LoA
PAO PD
(PCDA/CDA) (PAO/AG of
civil
ministries)
Submission of Audit
GS Claim and
L Payment
PAO/ AGs/ Accounts Offices

of other minstries
Pr.AO (CGDA) may contact DDO/Unit Code and PAO Code

mentioned in LoA, PRABAL will map 15-digit code to 7-digit code
head of CGDA and forward LoA to PAO (PCDA/CDA).
360
4.26. DRAWAL OF ADVANCES ON EMERGENCY
CASH REQUISITIONS
Although all the bills are paid after pre-audit by the PCsDA/
CsDA after their online submission by the stake holders but in case of
emergent situations, when troops are ordered to move at less than 48
hours’ notice on operations or in aid of civil power, units and formations
in need of funds to meet anticipated expenses on services and supplies
and for which funds are not available from the normal sources may ask
for the same through Emergency Cash Requisition module available on
PRABAL. In such circumstances, the authority sanctioning the move&
movement order will also be uploaded for perusal of the PCDA/CDA
specifically authorising that funds may be drawn on Emergency Cash
Requisition for such purpose.
The advances drawn on the authority of Emergency Cash

Requisition (vide Rule 316 Financial Regulation, Part I) will be paid and
accounted for in the same manner as other third-party payments are
accounted for.
361
4.27. EXCHANGE ACCOUNTS BETWEEN PRINCIPAL
CONTROLLERS/CONTROLLERS OF DEFENCE
ACCOUNTS
Digital payments & receipts in Defence Accounts Department (DAD)

are being handled through single Focal Point Branch (FPB) i.e. SBI CMP,
Hyderabad, however, payments & receipts through physical instruments
were being handled through respective designated Focal Point Branches of
33 Defence Accounting Circles (DACs).
Consequent upon complete roll out of PRABAL in DAD alongwith

Defence Services and other stakeholders, payment through Defence
cheques and receipt through physical MROs are no more in existence and
there is only one way of releasing Defence payments and realising receipts
i.e. SBI CMP portal. Hence, there is only one FPB for CGDA to deal with all
Defence payments and receipts in DAD.
DAD has already implemented Centralized Pay System (CPS) for all
Defence & Civilians employees working under MoD. Further, Department
has also developed Centralized Budget & Payment System i.e. PRABAL
(PFMS for Raksha Budget Aaharan & Lekhankan) which works in sync
with the CPS.
Keeping in the view the current level of IT implementation in DAD,

complete accounting affairs of Department is being managed through
Single Accounting Circle (SAC) i.e. CGDA by abolishing all other 32
Accounting Circles. Thus, there is only one Accounting Circle i.e. CGDA.
Additionally, PRABAL has become single point destination for all

real time accounting activities and information in Department, thereby
enabling DAD to consolidate its accounting activities in SAC. Currently,
Accounts Wing of PCsDA/CsDA are overseeing accounting functions
being automatically performed by PRABAL related to their area of
jurisdiction on behalf of SAC.
Under Proforma Accounting, as explained earlier RBI CAS Nagpur

will generate consolidated DMS and upload the same on PRABAL wherein
362
the same will be scrutinized and discrepancies reported, if any, to RBI CAS,
Nagpur automatically through system itself which will also be analysed by
the CGDA and the concerned PCDA/CDA.
Single Accounting Circle

Centralized Pay System& PRABAL having centralized database of balances
under debt heads and digital modes of receipts and payments
Settlement of Defence Transactions with RBI

RBI CAS
NAGPUR
ConsolidatedDMS
Correction,
SBI GAD
if any
Consolidated
DMS
CGDA (SAC)
SBI CMP
PRABAL Hyderabad
Auto- uploading payment files

compiled figures.
&auto-downloading e-debit
Exchangeof
Real Time
scrolls, e-MRO & e-Credit

Scrolls, PCDA/CDA wise DMS
from SBI CMP Fast Plus Portal
through PRABAL.
PCsDA/CsDA (PRABAL server)

All accounting and payment process being done in office of concerned
PCDA/CDA
363
4.28. BUDGET ESTIMATES
4.28.1. General
Generically, the expenditure under each minor or sub-head of
Centrally Controlled Heads is controlled by the various Controlling
Authorities at Integrated Headquarters of MoD.
In the present scenario where the Defence Accounts Department

has developed Centralized Budget & Payment System i.e. PRABAL (PFMS
for Raksha Budget Aaharan & Lekhankan) which works in sync with the
CPS, the Top Level Budget Holders (TLBHs) have been provided with
the access in the budget module of PRABAL.
Hence, in addition to the allocation and expenditure management

of the Centrally Controlled Heads, the TLBHs at IHQ of MoD are also
responsible for budget management of the Centrally Controlled Heads
also. PRABAL facilitates only TLBHs to post Budget Allocation made by
the them under CCH & LCH to all the budget holders across the nations
and revisions /amendments/ modifications thereto.
Hence, the mammoth exercise of watching the expenditure against

allotment in respect of all heads of expenditure (whether DSE or
otherwise) will be done automatically by the system, as system will not
allow stakeholders/ PCsDA/CsDA to submit or authorise any
payment/ charge of expenditure for which requisite budget allocation is
not available
Preparation and submission of budget forecasts and revised

estimates and all work in connection therewith in respect of all the
Heads under DSE and CSE of MoD will be done by the respective
stakeholders (unit/ Formation/ department on the budget forecasting
module of PRABAL, access to which has been provided to each Budget
Holder under MoD.
364
4.28.2. WATCHING EXPENDITURE AGAINST
ALLOTMENTS
The TLBHs and authorities to whom allotments are made are

responsible for watching the progress of expenditure and for seeing that
the expenditure does not exceed the allotment. In order to, facilitate the
controlling authorities at Headquarters of Commands, Areas, etc. and
unit or formation Commanders (in cases where allotment is made in
respect of each unit or formations), the units/formations may fetch the
details of claims admitted in audit and the amounts debited against their
allotments, which is updated on the real-time basis on PRABAL.
The PCsDA/CsDA will also simultaneously keep a watch on the

progress of expenditure against sanctioned allotments by generating
periodical reports from PRABAL and bring to the notice of the allottees
and their immediate higher authorities cases in which the progress of
expenditure is, in their opinion, abnormally heavy or unusually low.
When cases referred to in above Para are brought to the notice of

the Controlling Authorities, they are required to take prompt action as
indicated below: -
(i) Where savings can be foreseen, to surrender such portions of the

allotment as are not likely to be required for the rest of the year;
and
(ii) To regulate future expenditure where it has been heavy in the past
so as to restrict it within the sanctioned allotment or to obtain
additional allotment from the higher authorities after providing
complete justification for the increase
Action to obtain additional allotment where required is to be taken

by the Administrative Authorities promptly and sufficiently early to
avoid delay in the settlement of claims, as the system will not allow any
payment under Locally Controlled Heads in excess of sanctioned
allotment.
365
For exceptionally deserving cases, a separate window for applying
provisional payment against a claim by the stakeholders has also been
provisioned in the System. As a digital claim seeking sanction for
provisional payment duly supported with all the requisite documents is
received in o/o the PCsDA/ CsDA, such claims will be processed up to
the PCDA/CDA level electronically and any payment against them can
only be released after his approval on the system, who may authorize
provisional payment, at his/ her discretion, whenever he/she considers
such a course to be in the best interest of the State.
In cases where it is found that the Administrative Authorities fail

to be vigilant in applying promptly for additional allotment of funds
because provisional payments have been authorized, the PCsDA/CsDA
will ask the authority concerned (endorsing a copy to the next Higher
Administrative Authority) to take urgent action in the matter adding a
warning that further provisional payments will not be made unless
additional allotment has been applied by them through the system. If
this warning has no effect and the PCDA/CDA is personally satisfied
that there has been a laxity on the part of the Administrative Authorities,
he/she should refuse further provisional payments and report his action
to the authorities at Service Headquarters and the Deputy Financial
Adviser concerned in the Ministry of Defence (Finance) through the
CGDA.
366
4.29. APPROPRIATION ACCOUNT
Appropriation Account in respect of all the Heads is automatically

generated by the system with the help of in-built utility on the format
provided therein by the C.G.A., Ministry of Finance, Department of
Expenditure.
367
4.30. TRANSFER ENTRIES
Punching Medium for the transfer entries shall be carried out by

the concerned Payment/ Audit Wing on PRABAL which after approval
by the competent authority (as provided in following Para) will become
the part of the Compilation.
Transfer Entries are operated for following purposes:
(i) Transfer entries, that is, entries intended to transfer an item from
one head of account to another are necessary in order:-
a. To correct an error of classification in the original accounts
or to revise classification provisionally made as a matter of
convenience in the first instance;
b. To adjust, by debit or credit to its proper head an item
outstanding under debt heads;
c. To adjust inter-departmental and other transactions which
do not involve the receipt or payment of cash;
(ii) In a transfer entry all particulars explaining both the nature of the
adjustment and (if it is a correcting transfer) the grounds of the
correction must be clearly stated.
Adjustments / readjustments subject to the general rules

governing rectification of misclassifications should always be made as
soon as the necessity for the misdiscovered. Annual transfers should as
a rule be avoided, but in certain cases, such as adjustments of lapsed
deposits, interest on Provident Fund, annual transfers are permissible.
In those cases, the adjustments shall invariably be made before the close
of the accounts of the year to which the transactions relate.
The Punching Medium in respect of transfer adjustments and Re-

adjustments will be signed by the officers as indicated below: -
A. Normal Transfer adjustment: -

(i) AAO upto Rs.25 Lakh
(ii) AO/SAO uptoRs.1Crore.
368
(iii) ACDA/DCDA upto Rs.5 Crore.
(iv) JCDA/Addl.CDA upto Rs.10 Crore.
(v) CDA/PCDA exceeding Rs.10 Crore
B. Rectification of incorrect adjustments: -
(i) AO/SAO upto Rs. 25 Lakh.
(ii) ACDA/DCDA upto Rs. 1Crore
(iii) JCDA/Addl. CDAupto Rs. 5Crore
(iv) CDA/ PCDA exceeding Rs. 5 Crore
Note: In a situation where the Joint CDA/Addl. CDA is not positioned in a

field office, the DCDA/ ACDA may be delegated with powers of signing
Punching Medium in respect of transfer adjustments and rectification of
incorrect adjustments upto Rs 10 crores and 5 Crores respectively.
369
4.31. CLOSING OF ANNUAL ACCOUNTS
The annual accounts of the Central, State and Union Territory

Governments which the Controller General of Accounts (CGA) is
required to render, shall record transactions which take place during a
Financial Year running from 1st April to 31st March.
The Government accounts of a year are kept open for a certain
period in the following year for completion of the various accounting
processes inter-alia in respect of the transactions of March, for carrying
out certain inter-departmental adjustments, through the Central
Accounts Section of the Reserve Bank of India, Nagpur upto 15th April
of the following year and for the closing of the accounts of several
Provident Funds and Suspense Heads.
Adjustments may also be made after the close of the year in
respect of mis-postings and mis-classifications coming to notice after the
31st March. An actual transaction taking place after 31st March should
not, however, be treated as pertaining to the previous financial year
even though the accounts for that year may be open for the purposes
mentioned above.
Accounts so kept open after 31st March are known as March
(Preliminary) and March (Supplementary – I) (March Final). These
accounts are closed by the DAD HQrs on the dates intimated by the
C.G.A., Ministry of Finance (Department of Expenditure). The dates of
closing of accounts in the books of the PCsDA/CsDA are intimated by
the DAD HQrs each year and provisioned accordingly in the centralised
system.
The accounts of the financial year in the books of the
PCsDA/CsDA (centrally maintained in PRABAL) will be finally closed
in March (Supplementary-I) (March Final). However, a 3 to 4 days’ time
window for reporting any exceptional manual corrections shall be
provided before finalizing of March (Supplementary – I) (March Final).
370
4.32. JOURNAL ENTRIES
After closing of annual accounts, if a rectification/readjustment is
necessary, the same will be carried out with the prior approval of the
C.G.A., Ministry of Finance (Department of Expenditure) in exceptional
cases subject to the following: -
(i) Journal Entry is initiated for rectification of a misclassification/

readjustment within the time limit prescribed by the C.G.A.;
(ii) The rectification / readjustment necessitated is not less than one

Crore of amount in a single transaction unless rectification/
readjustment is otherwise necessary for closing of annual accounts.
(iii) Suitable action is invariably taken against all concerned for not
detecting the error during monthly review and within the
preliminary and supplementary accounts.”
371
4.33. MAINTENANCE OF DEFENCE LEDGER
4.33.1. General
Defence Ledger is generated periodically from the centralized
system (PRABAL) in the form of statements showing receipts and
charges and balances under the Revenue, Debt, Loans and Advances,
Reserve Funds, Deposits and Advances, Suspense and Remittances
Head. The statement of account showing heads and details of balances
closed to "Government Account" is generated separately on the format
already available in the system.
4.33.2. Posting of Defence Ledger
The entries in the Defence Ledger will be posted automatically by

the system as soon as the transactions (receipts and charges) under
Revenue, Debt, Loans and Advances, Reserve Funds, Deposits heads are
approved on PRABAL. As soon as the orders of the Controller General
of Accounts (CGA) are received, for closing of annual account, the DAD
HQrs will close the account of the concerned Financial Year formally on
the system.
Subsequently, the closing balances of the heads of accounts closing

to balances in the previous year will be brought forward in the statement
of the current year automatically by the system. After the close of the
compilation for March (Supplementary – I) (March Final), the final
balances of receipts and charges will be auto-posted in statements and
balances will be updated automatically. Each PCsDA/ CsDA office will
also be responsible for closing balances generated in the statement, as
the same will be verified with the balances shown independently in the
Debt, Deposit, Advance, Suspense and Remittance Heads MIS reports
generated by the different Sections/Sub-Offices.
372
4.34. CLOSING OF BOOKS
The Accounts under the Major Heads 0076, 0077, 0078, 0079, 0080
Defence Services Receipts, 2076 – Army, 2077 – Navy, 2078-Air Force,
2079-Ordnance Factories, 2080- Research and Development, Defence
Services charges and 4076-Defence Capital Outlay and other revenue
heads (belonging to civil service estimates of MoD) will be closed by
credit or debit to the Government Account.
The Revenue and Capital heads will be closed to 'Government

Account', the heads pertaining to Sector E-Public Debt, F-Loans and
Advances, I-Small Saving Provident Fund, etc., J-Reserve Funds, K-
Deposits and Advances, L-Suspense and Miscellaneous and M-
Remittance Heads to 'Balance Accounts' except that 'Reserve Bank
Deposits-Defence' (This head has been placed under Sector-Suspense
and Miscellaneous) shall be closed to Government Account.
373
4.35 REVIEW OF BALANCES
Statements pertaining to Review of balances will be prepared by

system itself by effecting the net result of concurrent transactions in the
accumulated historical balances available in the system under each head
of account. A narrative explanatory report on each statement is
prepared by Accounts Wing of the office of the PCsDA/CsDA in a
general form or as prescribed by DAD HQrs from time to time.
Accounts Wings of office of the PCsDA/CsDA are therefore

expected to periodically generate and analyze monthly MIS (or as
decided by the DAD HQrs) of all fresh balances (receipt & charges
under debt & remittance heads of accounts) arising during the period.
The accounts of the year are not complete until the balances upon
the Ledger under the Debt and other balanced heads have been verified.
Accordingly, after the books of the year have been closed, an
explanatory statement of closing balances, called the Review of Balances,
will be rendered by the o ffices of the PCsDA/CsDA on the
statements generated from the system in the specified form, which
will take up each of the heads in succession. The report should contain:-
(i) A statement of each ledger balance which is to be explained, (with

year-wise break-up);
(ii) An explanation of the nature and condition of the liability involved

in it;
(iii) A statement of the nature of the detailed accounts kept of the

transactions connected with it and how far the final results of
these detailed accounts work up to, and agree with, the balance on
the ledger;
(iv) Information as to whether the person or persons by whom the

balance is owned or from whom it is due, admit its correctness
and, if they do not, where the difference lies. This does not apply
to such items as Deposits.
374
Part of the explanations under heads (ii) and (iii) would
necessarily be the same year after year and there may not be any real
necessity to repeat the same information every year, for which reference
may be given in a previous report.
Particulars of each subhead under the Head "Deposits,"

"Advances", "Suspense Accounts" and "Loans and Advances by Central
Government" should be given separately in the Review.
The Review, which will contain final figures of the year, will be
subjected to test audit by the test audit staff and will bear an audit
certificate. Since, there part is normally required by the DAD HQrs by1st
week of June (the exact date is being intimated by them every year) the
review should be made on the basis of the figures appearing in the
Compilation of March Final Accounts which is normally available by
the end of May every year on the system. An unaudited copy of the
report will be sent to DAD HQrs by due date, simultaneously supplying
to the DADS a copy of the report for their scrutiny. An audited copy of
the report will be sent later as and when the report is received back
from Pr.DADS/DADS, duly endorsed with an audit certificate.
Necessary correction to the above report, if required, will be

issued, if necessary, when a rectification / readjustment is carried out
through a Journal Entry with the approval of CGA, Ministry of Finance,
Department of Expenditure. The effect of Journal Entry will also be
audited by the Pr.DADS/DADS on the above lines. On receipt back of
audit certificate / audited copy of the AROB from Pr.DADS/DADS, the
same will be forwarded to DAD HQrs.
As soon as the Review has been issued, a list should be drawn up

of all the cases in which further action is required. After approval of
Journal Entry, if any, DAD HQrs will be informed of any subsequent
reconciliation, which may be effected and acknowledgements which
may be received subsequent to the date of issue of the Review,
references being invariably made to the paragraphs of the Review
affected.
375
4.36. ANNUAL STATEMENT OF EXPENDITURE
UNDER HEAD 2049 INTEREST ON OTHER
OBLIGATIONS
An Annual Statement showing expenditure under different minor

heads of “Head-2049 Interest on other obligations” to end of March Final
will be generated by the System furnished by the PCsDA/CsDA by 30th
September each year who furnishes estimates under this head to the
Deputy Financial Adviser (Budget), MoD so as to reach him on 30th
October each year or the date as intimated by them, with brief
explanations for variations between the actual and the original and
modified allotments. The figures will be carefully checked and agreed
with the relevant compilation before the dispatch of statements.
A statement of corrections to the above will also be sent to the

Deputy Financial Adviser (Budget), MoD by 30th October. In case there
are no corrections to be intimated, a ‘nil’ statement will be rendered.
376
4.37. STATEMENT OF CENTRAL TRANSACTIONS
(SCTs) OF DEFENCE SERVICES RECEIPTS AND
CHARGES
The DAD HQrs, generates Statement of Central Transactions of

Defence Services (SCTs) and Ministry of Defence (Civil)-Receipts and
Charges annually each year from the centralised system ‘PRABAL’.
These SCTs are rendered to the Controller General of Accounts (CGA),
Ministry of Finance, Department of Expenditure, New Delhi on the date
prescribed by them. A copy of the Statement of Central Transactions is
also endorsed to the Director General of Audit, Defence Services.
After closing of Annual Accounts, if an amendment to SCT is
effected through Journal Entries with the approval of CGA, Ministry of
Finance (Department of Expenditure), New Delhi, the effect of the
Journal Entries will be intimated by the Accounts and Budget Wing of
the DAD HQrs to the Accounts Wing of PCsDA/CsDA concerned for
their information and reconciliation of updated ledger balances and
balances reflected in the Annual Review of Balances, if any in their
respective books/ compilations. The Audit Certificate of the Pr.
D.A.D.S./D.A.D.S. will also be obtained for the effect of Journal Entries
in the Annual Review of Balances.
Note: ‘Statement of Central Transactions’ at the end of every financial year
represents progressive effect of all the transactions during the year. The
Statement of Central Transactions is generated only for minor head-wise details
under different Major Heads concerned, showing ‘charged’ and ‘voted’
expenditures distinctly.
377
4.38. LEVYING PENAL INTEREST ON ACCREDITED
BANKS DOING GOVERNMENT AGENCY BUSINESS FOR
DELAYED REMITTANCES, etc.
As provided in the Civil Accounts Manual, all Pay and Accounts
Offices of Government of India are required to levy ‘Penal Interest’ on
accredited banks doing Government agency business in the following
cases:
(i) Excess put through/ double claim by the accredited banks in the
Payment Scrolls.
(ii) Delay in remittance of Government Receipts by accredited banks

into Government account.
378
4.39. PROCEDURE FOR LEVYING PENAL INTEREST ON
ACCREDITED BANKS FOR DOING GOVERNMENT AGENCY
BUSINESS
Payment of interest on excess put through/double claim by the

accredited bank
PAO (office of PCsDA/CsDA in DAD) need to initiate action with

FPB for recovery of penal interest on excess put through/double claim
by the accredited bank and send the requisite reports to Pr.AO for
consolidation and onward transmission to O/o CGA in accordance with
the procedure laid down in para 13.6 (xv) of Civil Accounts Manual.
Payment of interest on delayed remittances
All challans (e-MROs/credit scrolls) pertaining to receipts should

be scrutinized to detect cases of delays in remittance beyond maximum
period. These delays should be investigated to ascertain whether these
have occurred at the receiving branch or the nodal /FPB branch of the
bank. A record of all such cases of delayed remittance should be kept in
the PAO (office of PCsDA/CsDA in DAD).
Calculation of Delay
‘T’ is the date of Transaction which will be counted from the date
of receipt in case of cash payment, and date of realization in case of
cheques/ drafts at the receiving branch. Delayed period interest shall be
imposed on the banks for the actual delayed period and not from the
date of transaction (T). In other words, the delay period' calculation will
start from the day following the prescribed put through date (actual
"Put through date will be included for calculation of delay). Concerned
Account Offices will identify cases of delay and inform their
headquarters. All cases of recovery will be processed by the Accounts
Officer and quarterly report will be submitted to their HQ for taking up
the matter with the Head Office of the Banks.
379
Timelines for credit of government revenues
A. For manual receipts
(i) Since all the branches of the agency banks are on CBS platform, all
the agency banks (Public/Private Sector Banks), shall remit the
physical government receipts collected by the branches of the
banks to Government Account in RBI on the next working day i.e.
T+1 (including put through) where T stands for the day when
amount is received by the dealing branch.
(ii) For the branches falling under North Eastern States, the specified
time for remittance would be T+2 days (including put through).
B. For e-receipts
(i) The remittance period in respect of all govt transactions made

through e-payments (including tax receipts of CBDT and CBEC) in
respect of Public/Private Sector Banks will be T+1 working day
(including Put through date).
(ii) The following additional instructions for e-receipt collection by the

accredited bank through Debit/Credit Cards/Net Banking are :
a. Remittance norms of T+1 working day including the Put
Through day should be strictly followed. T is the day money
is available with the receiving bank branch of the
agency/accredited bank.
b. Penal interest should be levied on the delayed remittance of
e-receipt into Government Account. i e. on delay beyond
T+1 working day, if any.
c. In respect of transactions occurring through Debit/Credit
Cards and Net Banking, the settlement should conform to
the provisions contained in the Payment and Settlement Act,
2007 of the Reserve Bank of India and rules and regulations
made therein.
380
Rate of Penal Interest
(i) The rate of interest to be charged is Bank Rate as prevailing (which

is generally notified biannually on May 1 and November 1) plus
2% or as decided by Reserve Bank in consultation with CGA from
time to time.
(ii) The period of delay in a transaction of Rs. 1 lakh and above shall
attract delayed period Interest at Bank Rate + 2%.
(iii) For the transaction below Rs 1 lakh in each case, the delayed
period interest shall be levied only at the Bank Rate for delays up
to 5 calendar days and above 5 calendar days at the Bank Rate 2 %
for the full period of delay.
(iv) For petty claims of delayed penal interest involving an amount of

Rs.500/- or below will be ignored and excluded from the purview
of penal interest. This limit of penal interest of Rs 500 is for per
transaction.
(v) In respect of Non-Tax and all other Government receipts also, for
permissible time limit, calculation of delay period and delayed
period interest, the above instructions shall be applicable.
Reporting of Penal Interest
(i) Total delayed amount, which has not been remitted in time as per
the above timelines and the penalty due along with details of
individual cases will be intimated by the concerned Pr.
CCAS/CCAS/CAs (for the Non- Civil Ministries by the concerned
Head of the Department) to the Head Office of the bank concerned
on a quarterly basis by 15th of the following month (eg. for the
quarter ending June, the cases should be sent by 15th July) along
with all necessary documents.
(ii) Where penal interest payable is based on audit, all delays in

remittance of receipts of Government along with Penal interest
381
payable should be reported to the concerned banks within 3
months of completion of audit.
(iii) In exceptional cases where Ministry Department is not able to

lodge the penal interest claim within the stipulated time frame
prescribed above, a case for seeking relaxation with full
justification would be sent to CGA for consideration.
Payment of Penal Interest by Banks
Banks will pay penal interest for claims lodged by concerned

Ministries/Departments within a period 3 months from the date of issue
of claims by Ministries/Departments.
Resolution of any dispute
(i) In case of any dispute in penal interest between the banks and the
Ministries/Departments, such cases may be forwarded by the
Banks to the GBA section of CGA for necessary action.
(ii) All cases of dispute forwarded by banks will be put up to a

committee formed for this purpose. The committee would be
chaired by Additional CGA (GBA), O/o CGA with the following
members
a. Pr. CCAS/CCAS/CAS (Independent charge) of the
concerned Ministry for cases relating to Civil
Ministries/Departments
b. JS Level officer (in case of Non-Civil Ministries)
c. CGM, DGBA, RBI
d. Representative from the concerned bank at CGM/GM level
e. Jt CGA (GBA)-Member Secretary
(iii) In case the banks do not pay penal interest or lodge any dispute
within the prescribed timelines given above, direct debit of the
382
bank's account will be done for the amount of Penal interest in
consultation with RBI.
Terms of Waiver
(i) The penal interest levied on accredited banks cannot be waived.

Only the period of delay counted for calculation of penal interest
can be relaxed/condoned by the Committee/CGA of Accounts on
case-to-case basis. Following are some of the cases in which period
of delay can be relaxed/condoned for calculation of penal interest:
a. Force majeure such as war not or by an act of God -The
effective period of the Force majeure clause for relaxation of
time period of delay will be decided by the O/o CGA in
consultation with RBI.
b. Continuous holidays as per RBI calendar
c. Annual/Half yearly closing of accounts of banks (1 of April
& 1 of October)
(ii) The period of Stake by the Bank's staff will not be excluded from
the permissible period for remittance of Government revenues.
(iii) The committee will take into account all factors responsible for
delay and then condone only the period of delay.
Grounds for Appeal
In cases where the decision of the Committee is not found

acceptable by either the Ministry/Department or the bank, an appeal
can be filed with the CGA within 30 days of the decision of the
committee. The decision of the CGA will be final and binding.
383
Chapter – V
Personnel Payment Wing
PAY & PENSION WING AT DAD HQrs
5.1. Objectives & Duties:
(i) To deal with all matters (including grievances) concerning Pay &
Allowances of Defence Personnel & Civilians.
(ii) To deal with all matters relating to Provident Funds of all types &
NPS.
(iii) To deal with all matters (including grievances) concerning CGHS,

ECHS & medical reimbursement claims of Defence Personnel &
Civilians.
(iv) To deal with all matters relating to maintenance, updation &

functioning of Comprehensive Pay System (CPS) centrally.
(v) To deal with all matters (including grievances) concerning TA/DA

& LTC of Defence Personnel & Civilians and other miscellaneous
cases including professional & municipal taxes, etc.
(vi) To deal with all matters relating to maintenance, updation &

functioning of ‘Centralized Defence Travel System (DTS)’centrally.
(vii) To deal with all matters (including grievances) concerning policy

issues on Pension.
(viii) To deal with all matters relating to maintenance, updation &

functioning of ‘System for Pension Administration (RAKSHA)’
{SPARSH} centrally.
384
PERSONNEL PAYMENT WING AT PCsDA/ CsDA
5.2. Objectives:
(i) To pay salary and other dues as per entitlement on due dates.
(ii) To facilitate timely sanction & payment of all types of pensionary

awards.
(iii) To make prompt payment of entitled Travelling Allowances.
(iv) To maintain all necessary digital records, correct and complete in

all respects, so as to ensure that service & pensionary benefits of
Defence Personnel including Civilians are correctly paid on due
dates.
(v) To advise Administrative and Executive Authorities on matters

relating to service conditions and entitlements of Defence
Personnel including Civilians.
5.3. Duties:
(i) Payment of pay and allowances along with all related claims,
travelling allowances, daily allowances and LTC Claims of
Defence Personnel including Civilians.
(ii) Watching of recoveries of rent and allied charges, etc., and

deductions on account of subscription & advances from Provident
Funds, PC advance, Income Tax, etc.
(iii) Automated Data capturing and compiling of all provident funds

viz. DSOP, AFPP, GPF, etc., and maintenance of PF Accounts in
respect of Defence Personnel & Civilians.
(iv) Performing the duties of Principal Accounts Office and Pay and
Accounts Office for National Pension System, in the case of NPS
subscribers for whom pay and allowances are being paid by this
wing.
385
(v) Processing of Bills/Claims on account of reimbursement of
medical expenses on account of Outdoor & Indoor treatment of
Defence Personnel & Civilians.
(vi) Processing of claims of advance of travelling allowance advance,

PC advance, temporary advances and withdrawals from all types
of Provident Funds including NPS in respect of Defence Personnel
& Civilians.
(vii) To audit and pay sea passage claims of shipping companies on

account of movement of Defence Personnel, Civilians& their
personal effects through sea;
(viii) To deal with air passage and air freight claims on account of
movement of Defence Personnel, Civilians & their personal effects
through air;
(ix) Procedure concerning Income Tax for Defence Personnel &

Civilians viz ; deduction of TDS of Income tax from salaries, filing
of various TDS returns, issue of certificate of tax deduction at
source and relevant certificates to deductees, etc.
(x) Timely sanction and disbursement of all types of pensionary

awards to Defence Personnel & Civilians.
(xi) Payment and recovery of leave salary and pension contribution in

respect of Defence Personnel &Civilians lent for service to and
from various State and foreign Governments, Statutory Bodies and
Public Sector Undertakings
(xii) Payment of Special Family Allowance and Special Allowance for

specified periods to families, children and dependents (where
applicable) of Defence Personnel who die in action / operations or
who are reported missing.
(xiii) To ensure prompt settlement of pay and provident fund accounts

of all categories of Defence Personnel & Civilians becoming non-
effective.
386
(xiv) Classification of all receipts and payments brought to account
through above payments.
Note 1: The term ‘Defence Personnel’ includes Officers & Personnel of all the
services viz. Army, Navy, Air Force & Joint Staff (including those
serving on mission abroad).
Note 2: The term ‘Civilians’ includes all the Civilian Officers &
Establishment working under various Departments of MoD whether
paid from Defence or Civil Estimates (including those serving on
mission abroad).
387
PAY & ALLOWANCES GROUP
5.4. DISBURSEMENT OF PAY & ALLOWANCES
The procedure of payment of pay & allowances (including medical

reimbursement claims) to Defence personnel & civilians is initiated
consequent upon feeding of basic details of the Defence employee in to
the CPS (Comprehensive Pay System) by unit/ formations/ Record
Offices/ Departments, as the case may be. For this purpose, access to the
CPS has been provided to the stakeholders.
All the changes in admissibility of Pay & allowances such as

events/causalities affecting Promotions and Pay & Allowances are
published by the stakeholders through Part – II Office Orders and fed in
the CPS through the access provided to them. After feeding the Part II
Office Orders in the CPS, a copy thereof is also uploaded on the system
for perusal of Pay & Allowances Audit Group of Systems Wing of the
concerned PCDA/ CDA for carrying out detailed audit such as scale
check/ audit & risk audit for mitigation of risk elements.
Consequently, compliance audit of Pay, Allowances, Fund

Management, compilation and disbursement thereof in respect of
Defence Personnel and Civilians under the Ministry of Defence shall be
carried out through CPS (Comprehensive Pay System) in this wing.
The admissibility, sanction and disbursement of their Pay and

Allowances will be performed by the automated system. However,
following compliance audit checks will be exercised to cover the risk
elements associated with human-automated system interface by the
respective Service Centres responsible for pay disbursement of each
category of Defence Personnel/ Civilians:
(i) There is a bona fide order appointing an official to the post or cadre
he/she belongs to.
388
(ii) All the details affecting initial pay and allowances in respect of the
official have accurately been fed in the system by their respective
HoD.
(iii) All the events/causalities affecting Promotions and Pay &

Allowances have correctly been published through Part-II Orders
by their respective HoD.
(iv) All the events/causalities published through Part-II Orders and

affecting Promotions and Pay & Allowances in respect of the
official have precisely been fed in the system.
The Audit activity only remains on the Performance Audit and

Risk Audit, which will be comprehensively carried out by the Pay
&Allowances Audit Group of the Systems Wing.
The Pay & Pension wing of under mentioned offices will perform
the duty of the service centres for the category of Defence employee
mentioned against them. The Pay & allowances Audit Group of the
Systems Wing of these offices will also carry out detailed post audit of
their pay & allowances already disbursed through CPS:
S. No. Category of Employee Name of the office which will act

as service centre
1. Army Officers PCDA (O) Pune
2. Officers, JCOs & ORs of PCDA (AF), Dehradun & New

Indian Air Force Delhi
3. Officers, JCOs & ORs of PCDA (Navy), Mumbai& CDA

Indian Navy& Coast (Navy & CG), Noida
Guard
4. JCOs & ORs of Indian Concerned PAO (ORs)

Army
389
S. No. Category of Employee Name of the office which will act
as service centre
5. Defence Civilians Concerned PCsDA/ CsDA

(including Officers)
6. GREF Officers & Personnel PCDA (BR)/ PAO (GREF)
7. DRDO Officers & PCDA (R&D), New Delhi &

Personnel Bengaluru & CDA (R&D),
Hyderabad
8. CSD Officers & Personnel CDA (CSD), Mumbai
390
5.5. GRIEVANCES RELATING TO PAY & ALLOWANCES
All grievances concerning Pay & Allowances will be raised by the

stakeholders through the in-built utility in CPS and handled by the
concerned service centre in a time bound manner.
391
5.6. COMMENCEMENT OF PAY& ALLOWANCES
Detailed basic rules regarding commencement of pay of Defence

Personnel are enumerated in respective Regulations for Pay &
Allowances for Army, Navy & Air Force. In respect of Civilian, the
regulation of pay is guided by relevant Fundamental Rules. The
relevant pay scales are notified from time to time on the
recommendations of pay commissions vide under mentioned rules:
(i) (CCS (Revised Pay) Rules for civilians paid out of Civil Service
Estimates
(ii) Civilians in Defence Services (Revised Pay) Rules for civilians paid
out of Defence Service Estimates
(iii) Army Officers (Revised Pay) Rules
(iv) Air Force Officers (Revised Pay) Rules
(v) Navy Officers (Revised Pay) Rules
(vi) Army, Air Force & MNS (Revised Pay) Rules for JCOs & ORs &
equivalent
(vii) Navy Pay Regulations for JCOs & ORs equivalent & civilians of
Indian Navy
(viii) Non-combatants (Enrolled) of Air Force (Revised Pay) Rules
392
5.7. INCREMENTS OF PAY
Basic pay is subject to periodical increments, which are
automatically granted by the system in accordance with the provisions
of prevalent Revised Pay Rules issued as envisaged in previous Para.
393
5.8. MODIFIED ASSURED CAREER PROGRESSION
SCHEME
This Scheme is in supersession of previous ACP Scheme and

clarifications issued there under and shall be applicable to all regularly
appointed Groups “A”, "B", and "C" Central Government Civilian
Employees & Defence Personnel. However, organized Group "A"
services will not be covered under the Scheme. The salient features of
this scheme are:
(i) There shall be three financial upgradations under the MACPS,
counted from the direct entry grade on completion of 10, 20 and 30
years' service respectively. Financial upgradation under the
Scheme will be admissible whenever a person has spends 10 years
continuously in the same grade.
(ii) The MACPS envisages merely placement in the immediate next
higher scale of pay in the hierarchy.
(iii) The financial upgradations under the MACPS would be admissible

up to Level 14 in the Pay matrix formulated by the VII CPC .
Detailed methodology for fixation of Pay on promotion and

MACP is envisaged in relevant revised pay rules listed in Para 5.6 ante.
394
5.9. EXHAUSTIVE LIST OF ALLOWANCES DEALT WITH
IN PERSONNEL PAYMENT WING
S. No. Allowance To whom granted

1. Aeronautical Allowance Aircraft Technicians of all the three
services
2. Air Worthiness Certificate Allowance Aviation Trade PBORs with service
of more than 2 years
3. Bhutan Compensatory Allowance 1. Officers, JCOs, ORs &
equivalent of all the three
services
2. Civilian Officers & Staff
4. Boiler Watch Keeping Allowance Sailors (Indian Navy)
5. Brief Case Allowance Civilian Officers & Staff
6. Canteen Allowance Civilian Canteen employees
7. Cash Handling & Treasury Allowance Civilian Staff
8. Children Education Assistance 1. Officers, JCOs, ORs &
services
9. Classification Allowance ORs & equivalent of all the three
services
10. Compassionate Allowance Removed/ Dismissed Civilian
Officers/ Staff
11. Composite Personal Maintenance JCOs & ORs & equivalent of all the
Allowance (CPMA) three services
12. Constant Attendance Allowance Civilian Officers & Staff
13. Conveyance Allowance Civilian Officers & Staff
14. Counter Insurgency Allowance in Officers, JCOs & ORs of Army &
Peace Area equivalent in Air Force
Field Area equivalent in Air Force
Modified Field Area equivalent in Air Force
395
17. Cycle Allowance Civilian Staff
18. Daily Allowance 1. Officers, JCOs, ORs &
services
19. Daily Allowance on foreign travel 1. Officers, JCOs, ORs &
services
20. Dearness Allowance 1. Officers, JCOs, ORs &
services
21. Deputation (Duty) Allowance 1. Officers, JCOs, ORs &
services
22. Diving Allowance All Naval Personnel
23. Dip Money All Naval Personnel
24. Diving Attendant Allowance All Naval Personnel
25. Dress Allowance 1. Officers, JCOs, ORs &
services
26. Extra Work Allowance Civilian Officers & Staff
27. Field Area Allowance Officers, JCOs & ORs of Army &
equivalent in Air Force
28. Fixed Medical Allowance Pensioners
29. Flying Allowance Officers, JCOs & ORs of Army &
30. Free Fall Jump Instructor Allowance Officers, JCOs & ORs of Army
31. Funeral Expense Officers, JCOs, ORs & equivalent of
all the three services
396
32. Good Service/ Good Conduct/ Badge JCOs, ORs & equivalent of all the
Allowance three services
33. Hard Area Allowance Officers, JCOs, ORs & equivalent of
34. Hard Lying Money Naval Officers & Sailors
35. Hazard Pay JCOs & ORs of Army
36. High Altitude Allowance Cat – I, II & Officers, JCOs & ORs of Army &
III equivalent in Air Force
37. Highly Active Field Area Allowance Officers, JCOs & ORs of Army &
38. House Rent Allowance (HRA) 1. Officers, JCOs, ORs &
services
39. Hydrographic Survey Allowance (for Non-surveyors Naval Officers &
non-surveyors) Sailors serving onboard ships.
40. Hydrographic Survey Allowance Naval Officers & Sailors.
(except non-surveyors)
41. Island Special Duty Allowance 1. Officers, JCOs, ORs &
services
42. Language Allowance Officers, JCOs, ORs & equivalent of
43. Language Award Officers, JCOs, ORs & equivalent of
44. Leave Travel Concession (LTC) 1. Officers, JCOs, ORs &
services
45. Military Service Pay Officers, JCOs, ORs & equivalent of
46. Modified Field Area Allowance Officers, JCOs & ORs of Army
&equivalent in Air Force
397
47. Monetary Allowance attached to Officers, JCOs, ORs & equivalent of
Gallantry Awards all the three services
48. MARCOS & Chariot Allowance Naval Officers & Sailors.
49. Newspaper Allowance 1. Officers, JCOs, ORs &
services
50. Night Duty Allowance Civilian Officers & Staff
51. Non-Practicing Allowance Civilian Officers & Staff
52. Overtime Allowance Civilian Staff (Operational &
Industrial employees)
53. Para Allowance Officers, JCOs & ORs of Army
54. Para Reserve Allowance Officers, JCOs & ORs of Army
55. Para Jump Instructor Allowance Officers, JCOs & ORs of Army
56. Post Graduate Allowance Officers of all the three services
57. Project Allowance 1. Officers, JCOs, ORs &
services
58. Qualification Allowance For Aviation Instructors Only
59. Ration Money Allowance Officers of all the three services
60. Reward for Meritorious service JCOs, ORs & equivalent of all the
three services
61. Rum Allowance JCOs, ORs & equivalent of all the
three services
62. Sea Going Allowance Naval Officers & Sailors
63. Siachen Allowance Officers, JCOs, ORs & equivalent of
64. Special Allowance for Child Care for Civilian Officers & Staff
Women with disabilities
65. Special Forces Allowance Officers, JCOs, ORs & equivalent of
66. Special Security Allowance Officers, JCOs & ORs of Army on
398
deputation to SFF
67. Specialist Allowance Specialist Medical Officers
68. Strategic Force Allowance Officers, JCOs, ORs & equivalent of
all the three services on deputation
to SFC
69. Submarine Allowance Naval Officers & Sailors
70. Submarine Duty Allowance Naval Officers (other than qualified
submariners) & Sailors
71. Submarine Technical Allowance Naval Artificers & Mechanics
72. Subsistence Allowance Civilian Officers & Staff
73. Travelling Allowance 1. Officers, JCOs, ORs &
(a) On Transfer
services
(b) On Temporary Duty 2. Civilian Officers & Staff
(c) On Retirement
(d) On Death
74. Technical Allowance Technical Officers of all the three

services
75. Test Pilot & Flight Test Engineer Test Pilot & Flight Test Engineer of
Allowance Indian Air Force
76. Tough Locality Allowance 1. Officers, JCOs & equivalent
of all the three services
2. Civilian Officers
77. Training Allowance 1. Officers, JCOs & equivalent
of all the three services
2. Civilian Officers
78. Transportation Allowance. 1. Officers, JCOs, ORs &
services.
79. Unit Charge & Certificate Allowance Naval Artificers & Mechanics
399
5.9.1. AERONAUTICAL ALLOWANCE
Aeronautical Technical Allowance will be granted to the Air Craft
Technicians in all the three services at the rates prescribed from time to
time to officers and technicians for the period they’re deployed in any
Aircraft maintenance duty.
The above allowance is admissible to those Aircraft Technicians

who have successfully qualified in “TETTRA, TTCU MCF” or similar
courses in the Aviation wings of the Army and Navy and are authorized
to maintain or service aircraft and the related systems.
400
5.9.2. AIR WORTHINESS CERTIFICATE ALLOWANCE
Engine room artificers and mechanicians of the Indian Army who

are on continuous service terms, shall be granted Air Worthiness
Certificate Allowance, provided that they are re-engaged, or undertake
in writing to re-engage, to complete the minimum qualifying service for
pension, at the rates prescribed from time to time. The Lower rate of Air
Worthiness Certificate Allowance shall be payable
(i) With service of 2 – 10 years from the date of qualifying for the unit
certificate.
(ii) During the period of re-engagement beyond ten years to complete

the time for pension.
The higher rate shall be payable during the period of re-

engagement to complete the time for pension from the date following
the date of completion of ten years' service since attaining man's rate or
since attaining the age of 17 years whichever is later, provided that the
lower rate has been drawn for a period of two years after qualifying for
the certificate. Air Worthiness Certificate Allowance shall not be drawn
concurrently; only one allowance shall be admissible at a time.
The admissibility of the above said allowances shall be subject to

specific orders of the Government to be issued from time to time but
engine room artificers and mechanicians already in receipt of such
allowances shall continue to draw the allowances under these
regulations notwithstanding any decision that may be made to
withdraw those allowances.
401
5.9.3. BHUTAN COMPENSATORY ALLOWANCE
This allowance is admissible to Officers, JCOs, ORs & equivalent of

all the three services and Civilian Officers & Staff on posting to HQrs
IMTRAT and units under Project Dantak, in place of Indian DA.
This allowance is granted on submitting a certificate on the

requisite format from the date of posting to HQ IMTRAT. The payment
of BCA automatically stops at the end of September and March, and is
restored only when the requisite Six-Monthly Certificate ending 30th
June and 31st December respectively is received.
Any leave up to 14 days will be treated as brief absence and no

recovery of BCA will be made. However, if the individual avails leave
for more than 14 days, BCA will be recovered @ 25% for entire period of
leave.
The payment of BCA and servant wages during Temporary Duty

and leave, etc. is regulated based on details provided in Six Monthly
Certificate. While on posting to HQ IMTRAT and units under Project
Dantak, individuals are not entitled to get Transport Allowance.
The provisions regarding rates of BCA and conditions regulating

the allowance during leave etc. are equally applicable for officers posted
to units under HQrs 760 BRTF, Myanmar for claiming Myanmar
Compensatory Allowance.
402
5.9.4. BOILER WATCH KEEPING ALLOWANCE
This allowance is granted to Boiler Watch Keepers (sailors of

Indian Navy) on Naval Ships and corresponding personnel on board
Coast Guard and survey ships. The aim of this allowance is to
compensate such personnel for the hardship they face through constant
exposure to high temperature. This allowance is granted on the
authority of the Part – II Office Orders published by the Naval Units/
INS on the rates prescribed from time to time.
403
5.9.5. BRIEF CASE ALLOWANCE
Certain categories of Civilian Central Government employees are
entitled to reimbursement of expenditure incurred on purchase of
briefcase/official bag/ladies’ purse. The sanction of expenditure on
above account is to be accorded by HoD for each case separately. The
expenditure is required to be accounted within the budget allocated for
Office Expenses and no separate allocation is made on this account.
The civilian officers/ staff entitled for Briefcase allowance can

purchase briefcase/ office bag/ ladies’ purses of their own choice from
any private/ public outlet. However, the reimbursement shall be
restricted to the ceiling limits prescribed by the Govt. from time to time.
The reimbursement for briefcase allowance shall be made to the entitled
officers/ staff on joining the Department or on completion of three years
from the date of issue of earlier one.
404
5.9.6. CANTEEN ALLOWANCE & COOKING
ALLOWANCE
Canteen Allowance & Cooking Allowance are granted at the rates

prescribed from time to time to certain categories of civilian staff posted
in non-statutory departmental canteens in Central Govt. offices.
405
5.9.7. CASH HANDLING & TREASURY ALLOWANCE
The powers to grant Cash Handling and Treasury Allowance

remain delegated to the Ministries and Head of Departments who, at
their discretion, may appoint Junior Secretariat Assistants /Senior
Secretariat Assistants / Assistant Section Officers / officials holding
substantive post up to level 7 of Pay Matrix, to perform the duties of
Cashiers.
The grant of Cash Handling and Treasury Allowance shall be

subject to the following conditions:
(i) The amount of Cash Handling and Treasury Allowance to be

granted will depend on the average amount of monthly Cash
disbursed, excluding payment by cheques/ drafts/ECS/online
payments/other modes where cash handling in physical form is
not involved.
(ii) The Ministry or Head of the Department concerned should certify,

on the basis of the previous financial year's average, the amount of
Cash disbursed and sanction the rate of Cash Handling and
Treasury Allowance appropriate to that quantum. The average
amount of Cash disbursed should be arrived at by taking the total
amount shown as disbursed in the Cash Book reduced by the
items disbursed in the form of cheques/RTRs/Drafts/ECS/online
payments/other modes where cash handling in physical form is
not involved, etc.
(iii) The Cash Handling and Treasury Allowance granted to the official
should be reviewed every financial year.
406
5.9.8. CHILDREN EDUCATION ASSISTANCE
Children Education Allowance (CEA) reimbursement can be

availed by all Government servants for the two eldest surviving children
only except when the number of children exceeds two due to second
child birth resulting in multiple birth. Reimbursement of CEA is
admissible for the first child born after failure of sterilization operation
beyond two children.
Reimbursement as indicated above will be applicable for

expenditure on the education of school going children only i.e., for
children from classes nursery to twelfth, including classes eleventh and
twelfth held by junior colleges or schools affiliated to Universities or
Boards of Education and two years Diploma course in Polytechnic.
There is no minimum age for any child, including children with
disabilities, for claiming reimbursement.
The amount for reimbursement per month is fixed per child,

irrespective of the actual expenses incurred by the Government servant.
In order to claim reimbursement of CEA, the government servant should
produce a certificate issued by the Head of the Institution for the period
/year for which claim has been preferred. The certificate should confirm
that the child studied in the school during the previous academic year.
In case such certificate cannot be obtained, self-attested copy of the
report card or self- attested fee receipt(s) [including e-receipt(s)]
confirming/indicating that the fee deposited for the entire academic
year can be produced as a supporting document to claim CEA. The
period/year means academic year i.e. twelve months of complete
academic session.
Same conditions apply for Hostel Subsidy, which is thrice the rate
of CEA and both hostel subsidy and Children Education Allowance can
be availed concurrently.
407
5.9.9. CLASSIFICATION ALLOWANCE
The pay of the soldier is determined with reference to the ‘Group’

in which he has been placed and the ‘class’ which he holds in that group.
The various trades in each group and the classes open to each trade are
given in Appendix I to P &A Regs. A soldier is awarded the appropriate
class on his attaining the requisite technical educational and service
qualifications necessary for that class. These are laid down in the
‘Qualification Regulations’.
A recruit will become entitled to the starting pay of a sepoy of his

group from the date he completes his prescribed recruit’s training and is
attested. First increment in this scale will be granted after 12 months
from the date of attestation only if he fully qualifies for the lowest class
of his group. Subsequent increments will be regulated accordingly.
Conditions for upgradation of Classification:
The Jawans who have been mustered in Class 4 or 3 as initial

mustering, after passing the required trade test and passing of required
service, the DOII will be published for Up-class for class 3,2,1 and 2,1
respectively. Only NCO/OR are entitled for classification Pay and JCOs
are not entitled for the same.
Consequent to remustering from one pay group to another pay

group Part II Order will be published as per the specified format. In case
the individual qualifies for the highest class equal to the class earned in
the earlier pay group within one year from the date of remustering, the
date of up classification will be the date of the remustering.
Certificate Required: Certified that the individual possesses requisite

qualifications as per the Qualification Regulations for the Soldiers 1958 as
amended from time to time and SAI 1/S/2008.
408
5.9.10. COMPASSIONATE ALLOWANCE
A Government servant who is dismissed or removed from service

shall forfeit his/her pension and gratuity: Provided that the authority
competent to dismiss or remove him/her from service may, if the case is
deserving of special consideration, sanction a compassionate allowance
not exceeding two - thirds of pension or gratuity or both which would
have been admissible to him if he had retired on superannuation
pension.
The Competent Authority may grant compassionate allowance not

later than three months after the date of issue of the order imposing the
penalty of dismissal or removal from service. The Competent Authority
shall consider:
(i) Each case of dismissal and removal from service on its merit for
sanction of a compassionate allowance and quantum thereof.
(ii) The actual misconduct which occasioned the penalty of dismissal

or removal from service and the kind of service rendered by the
Government servant.
(iii) In exceptional circumstances, factors like family members

dependent on the Government servant along with other relevant
factors.
No compassionate allowance shall be sanctioned after the expiry

of the aforesaid period of six months, to a Government servant on whom
a penalty of dismissal or removal from service was imposed before the
date of commencement of these rules. A compassionate allowance
sanctioned shall not be less than the amount of minimum pension.
409
5.9.11. COMPOSITE PERSONAL MAINTENANCE
ALLOWANCE (CPMA)
The allowance is admissible for JCOs/ORs & equivalent and will

be regulated as follows:
a) The initial grant of this allowance is notified in Part II orders
b) It will be granted till its cessation is notified in Part II orders or

otherwise disallowed under circumstances mentioned in (c) below
c) Cessation of this allowance will invariably be notified in Part II

orders in the following circumstances.
(i) On posting out of an individual to another unit.
(ii) On admission to hospital
(iii) When free services are provided in kind
(iv) On proceeding on leave pending retirement/discharge.
d) The grant of allowance as admissible on reporting to new unit or

on discharge from hospital, will be notified by the unit concerned
from the appropriate dates.
e) For periods of absence without leave, imprisonment, this

allowance will be disallowed with reference to Part II orders
notifying the relevant occurrences and no separate notifications for
the discontinuance of the allowance during such periods will be
looked for.
410
5.9.12. CONSTANT ATTENDANCE ALLOWANCE
Constant attendance allowance at a uniform rate notified by Govt.

from time to time shall be granted to Service personnel who is awarded
a disability pension for 100 per cent disablement, if in the opinion of the
Invaliding Medical Board or Review Medical Board he/she needs the
services of a constant attendant for at least a period of 3 months, and the
necessity arises solely from the condition of the accepted disability or
disabilities.
The grant of allowance is subject to the condition and that he/she

actually employs an attendant to look after him/her. The allowance shall
not be payable for any period during which the pensioner is an inmate
of a Government Institution or Hospital or is gainfully employed.
Payment of constant attendance allowance shall be made in arrears

along with disability pension, etc. on the basis of declaration in the
specified format which shall be submitted to the Pension Disbursing
Authority in May and November each year.
411
5.9.13. CONVEYANCE ALLOWANCE
Conveyance Allowance can be granted to individuals who are

required to travel extensively on duty at or within short distance of their
Headquarters. Reimbursement of conveyance charges for journeys on
official duty within a radius of 8 Kms. The expenditure incurred on the
above account will be met from the contingent grants.
412
5.9.14. COUNTER INSURGENCY ALLOWANCE IN
PEACE, FIELD & MODIFIED FIELD AREA
Special Compensatory (Counter Insurgency) Allowance is

admissible based on the Part – II Order, to the troops deployed in
Counter Insurgency Operations. The allowance is admissible to the
officers deployed on CI duties in these operations. Three different rates
of SCCIA are in to force, viz. SCCIA as for Field Areas, Modified Field
Areas and in Peace Areas.
The grant of SCCIA will be published only for the Operations

approved by the Govt. for Counter Insurgencies and for the period of
Govt. Sanction accorded (wherever applicable) e.g. for Operation Rhino
& Operation Hifazat, grant will be published only after Govt. Sanction
for six monthly period is notified. The grant of the allowance will
invariably be notified with the stoppage of allowance from the date of
expiry of Govt. Sanction (wherever applicable) in the same Part II Order.
The terms and conditions for the grant of SCCIA will be the same
as applicable to the grant of Composite Field Area Allowance
/Composite Modified Field Area Allowance. High
Altitude/Uncongenial Climate Allowance will be admissible alongwith
SCCIA.
SCCIA will be concurrently admissible along with Strategic Forces

Allowance. Personnel, who are also entitled to Flying Allowance and are
deployed in CI Operations, shall draw in addition only the applicable
SCCIA depending on the area of the CI Operation. Audit points to be
seen in dealing with Part II Orders are as under:
(i) In case the deployment is for less than 30 days, payment of SCCIA
will be allowed on pro-rata basis.
(ii) It will be confirmed that the allowance is granted on deployment

of the officer on Govt. Notified Counter Insurgency Operation
during Sanction Period. The casualty code is correct as per the area
413
in which deployed and the name of the unit appears in that area
notified in the Corps Notification for the relevant period.
(iii) No other monetary allowance except Transport Allowance is

admissible along with SCCIA e.g. HAFA, CFAA & CMFAA.
However, High Altitude Uncongenial Compensatory Allowance is
admissible along with SCCIA.
(iv) SCCIA is not admissible when the officer is absent from the
qualifying area due to :
a. Absence on CL/Sick List Concession exceeding 15 days.
b. AL/Sick Leave / Furlough Leave.
c. Temporary Duty exceeding 3 months.
In case the above conditions are fulfilled, the adjustments for

admittance/ cessation of SCCIA are processed through IT&S Wing.
414
5.9.15. CYCLE ALLOWANCE
If duty assigned to civilian Govt. servant require extensive

travelling at/ or near the HQrs and the maintenance of the bicycle is
essential for the purpose Cycle Allowance is granted to him/her.
Conditions for grant:
(i) The allowance will not be admissible for the calendar month
wholly covered by leave/ training/ temporary transfer.
(ii) The official Concerned should maintain and use his/her own
cycle for official journeys
(iii) Not admissible during joining time/ leave/ temporary

transfer/ during holidays prefixed/ suffixed to leave/ joining
time
(iv) Not admissible for any period of more than one month at a
time during which the official does not maintain a cycle or the
cycle remains out of order or is not used for official purpose for
any other reason.
415
5.9.16. DAILY ALLOWANCE
. Daily Allowance means an allowance granted to a Government

servant to meet the cost of lodging and boarding and other incidental
expenditure necessitated at the place of halt.
Daily allowance to the employee while on tour:
The entitlement for daily allowance is bifurcated in to following

categories rates of which are notified by the Govt. from time to time:
(i) Reimbursement of hotel expenses: For officers of levels 8 and

below, the amount up to the upper limit may be payable without
furnishing any vouchers. The claim should indicate name of the
accommodation, period of stay, etc. For stay in Class C cities, the
upper limit for all employees above level 8 is payable only if the
relevant vouchers are furnished.
(ii) Reimbursement of travel expenses: Just like the reimbursement of

accommodation charges for officers of level 8 and below, the claim
amount up to the maximum limit will be paid without the need to
furnish vouchers. Such self-certified claims should clearly state the
vehicle number and period of travel. If the officer travelled by foot,
mileage allowance at prescribed rates will be paid additionally.
(iii) Reimbursement of food expenses: Food bills will not be

reimbursed separately. The total amount will be paid as a lump
sum DA on the prescribed rates. Since there is no reimbursement
involved in food expenses, there is no need to furnish any voucher.
(iv) Restrictions on timing: The absence of the employee from

headquarters will be taken from midnight to midnight and will be
calculated on a daily basis. The schedule for the same is as shown
below:
416
Length of absence Payable amount of DA
Employee is absent from the headquarters for less 30% of the total lump sum
than 6 hours amount
Employee is absent from the headquarters for a 70% of the total lump sum
duration between 6 and 12 hours amount
Employee is absent from the headquarters for more 100% of the total lump sum
than 12 hours amount
The rates of Daily Allowance on Foreign Travel are notified by the

Government while issuing sanction for the purpose in respect of the
Government employee.
417
5.9.17. DEARNESS ALLOWANCE
Dearness Allowance is the cost-of-living adjustment allowance
which the government pays to the employees as well as pensioners.
Formula for calculating Dearness Allowance:
Dearness Allowance
= (Avg of CPI-IW for the past 12 months –
payable with effect from
Average of CPI-IW recorded in 2015)*100 /
date of implementation
(Average of CPI-IW recorded in 2015)
of 7th CPC (01.07.2016)
Dearness Relief for Pensioners:

Every time a new salary structure is rolled out by a pay
commission, the pension for retired Govt. employees is also revised. The
same is the case with Dearness Allowance; every time DA is increased
by a certain percentage, the same change gets reflected in the pensions of
retired Govt. employees in the form of Dearness Relief. This applies to
both regular pensions as well as a family pension.
418
5.9.18. DEPUTATION (DUTY) ALLOWANCE
Deputation (Duty) Allowance is applicable to Govt. Employees, in

case of appointments made in Public Interest outside the normal field of
deployment. Defence Forces personnel be given an option to draw
either:
(i) 50% of Deputation duty allowance applicable to civilians officers

along with service concession or
(ii) 100% of deputation allowances but forego the service concessions

subject prescribed ceilings.
419
5.9.19. DIVING ALLOWANCE
Sailors belonging to the authorised cadre of clearance divers shall

be entitled to diving allowance on prescribed rates pertaining to the
appropriate class of the respective category, as follows, namely
(i) Clearance Divers Class I
(ii) Clearance Divers Class II
(iii) Clearance Divers Class III
The allowance will be granted on the authority of Part-II Office

Order published by the units.
420
5.9.20. DIP MONEY
Dip Money at the prescribed rates shall also be admissible to

qualified officers/ sailors including those who has successfully
completed a course at a diving school and whose duties necessitate his
going under water or pressure, using any approved diving apparatus
during diving operations or during diving practices under the authority
of the Commanding Officer. The allowance will be granted on the
authority of Part-II Office Order published by the units.
Dip Money at one-fifth of the amount payable to divers shall be

admissible to sailors when actually employed in attending on divers
engaged in such diving duties provided that they are qualified divers;
and attendants in decompression or re-compression chambers shall
receive the same rate of diving pay as divers.
The period for which payment is made shall be the interval

between the time of entering and that of leaving the water, or between
that of entering or leaving pressure, the decompression periods being
included in the time under water or pressure for which payment is made.
The Commanding Officer may, at his discretion, cancel the whole

or any portion of the payment if the work is subsequently found to have
been done improperly. A clearance diver who is borne on the authorized
complement of such divers shall be entitled to dip money at the
prescribed rates provided that when he is employed in hazardous
operations of live mine clearance, he shall be entitled to dip money at
double the rates.
421
5.9.21. DIVING ATTENDANT ALLOWANCE
Attendants when attending on trainee divers shall be entitled to

Diving Attendant Allowance at the same rates as they are entitled to
when attending on fully qualified divers. The term "attendant" shall
include the following personnel: -
(i) Air pipe attendant.
(ii) Brest rope attendant.
(iii) Operator of oxy-helium control panel.
(iv) Operator of diver's control panel, when that panel is fed by a

motor-driven air compressor or receiver.
(v) Operator of submerged decompression chamber control panel.
(vi) Operator of main decompression or recompression (main or

portable).
(vii) Attendant in submerged decompression chamber.
(viii) Attendant in main or portable decompression or recompression

chamber:
Provided that if the same sailor combines the duties of air pipe
attendant and breast rope attendant, he shall be entitled to be paid only
the one-fifth rate of this allowance.
When more than one diver is being supplied at the same time with
air or gas mixture by the same control panel operator. The operator of
the diver's control panel shall receive the one-fifth rate in respect of only
one such diver;
The operator of the submerged decompression chamber control

panel shall receive the one-fifth rate either in respect of an attendant in
the submerged decompression chamber, or in respect of the diver in the
submerged decompression chamber, but not for both concurrently;
422
The operator of the main decompression chamber control panel
shall receive the one-fifth rate in respect of only one diver in the
chamber, and not in respect of any attendant in the chamber. Payment to
qualified attendant shall be made at the rate of one-fifth of the dip
money paid to a clearance diver on whom he is attending.
423
5.9.22. DRESS ALLOWANCE
Dress allowance at the prescribed rates will be admissible by

subsuming Cloth Maintenance, Washing Allowance, Uniform
Allowance on promotion to JCOs/NCOs & equivalent and free basic
uniform.
The amount of Dress Allowance shall be credited to the salary

directly once a year in the month of July. Dress Allowance will go up by
25 percent each time Dearness Allowance rises by 50 percent. The dress
allowance for the ORs will be applicable for the Basic Uniform only
Allowances related to maintenance& washing of uniforms have

been subsumed in Dress Allowance and will not be payable separately.
424
5.9.23. EXTRA WORK ALLOWANCE
Extra Work Allowance will be paid at a uniform rate of 2% (two

percent) of the basic pay per month. An employee shall receive this
allowance for a maximum period of one year, and there should be
minimum gap of one year before the same employee is deployed for
similar duties again.
This allowance should not be combined i.e. if same employee is

performing two or more such duties and is eligible for 2% allowance for
each add-on, then the total Extra Work Allowance payable will remain
capped at 2 percent of basic pay.
425
5.9.24. FIELD AREA ALLOWANCE
Personnel serving in Field Areas are entitled for ‘Compensatory

Field Area Allowance (CFAA). Modified Field Areas: are those areas
where troops are deployed in support of combat troops in an
operational support role. Personnel serving in Modified Field Areas are
entitled for Compensatory Modified Field Area Allowance (CMFAA).
(i) In the case of attached personnel, the allowance is admissible if the

period of attachment exceeds 14 days.
(ii) In case of hospitalization, if the disability is due to fault of the

Defence Personnel or when hospital stoppages are recovered for
the reasons that the sickness was due to fault of the individual,
Field Service concessions is to be stopped for hospitalization even
if it is less than 28 days.
(iii) The list of Units/Formations which are in Field Area or Modified

Field Area and are eligible for Field Service concessions will be
notified by the Corps Commander and the notification is sent to
PAO concerned quarterly for post audit by the PAO to ensure
correctness of the publication of Part – II OO by the Units
concerned and to regulate the grant accordingly.
(iv) High Altitude and Uncongenial Climate Allowance (Higher and

Lower rates) is also admissible in addition to CFAA provided the
conditions for grant of HAUCA are fulfilled.
(v) No other Compensatory Allowances are admissible along with

‘CMFAA’.
(vi) “CFAA and CMFAA” are not admissible to static Units /

Formations e.g. Training Centers, Recruiting Offices, Record
Offices, NCC Directorates and its units and TA unless embodied.
426
5.9.25. FIXED MEDICAL ALLOWANCE
Fixed Medical Allowance at rates prescribed by the Govt. is a

monthly allowance granted to - Pensioners/ Family pensioners who are
not CGHS/ ECHS beneficiaries. The main condition for payment of
FMA is that the Pensioner / Family Pensioner shall reside in Non-CGHS
area only. Those Pensioners and Family Pensioners residing in CGHS
Areas or living in such areas that are presently brought under CGHS
coverage are not eligible for FMA from the date of their moving into
CGHS areas.
427
5.9.26. FLYING ALLOWANCE
Airmen aircrew filling vacancies in the authorised establishment

for flying duties will, while employed on flying duties (e.g. Flight
Signaller, Flight Gunner and Flight Engineer) receive, in addition to their
pay and allowances, receive a flying allowance as per prescribed rates
on following conditions:
(i) The flying allowance will be admitted on rendition of a certificate
on prescribed format.
(ii) The Airmen air crew are required to contribute for Flying
Insurance.
(iii) In the case of Signalers (Air) flying pay will also be admitted:-
a. When filling vacancies in authorized establishment in units
on which no aircrafts are established.
b. When serving with Wing established to control flying
units/Squadrons.
(iv) The allowance will continue to be paid to airman aircrew detailed
on flying courses subject to the following conditions:
a. That the individual are details to attend authorized flying
courses, and
b. That they comply with the other conditions entitling them
the grant of the pay.
Note: The term” While employed on flying duties” covers airmen aircrew
employed on flying duties in squadrons on the active list, Flying Training
School, Communications, Flights, Wing Established to control flying
units//Squadrons and such of the Stations and Group Headquarter as have
aircraft established on the charge. It excludes Air Headquarters, HQ Training
Command, maintenance and Repair Units, Ground Training Schools,
Miscellaneous Organization, e.g. Recruiting, Selections Boards, etc.
428
5.9.27. FREE FALL JUMP INSTRUCTOR ALLOWANCE
Free Fall Jump Instructor Allowance is admissible for Army

Officers/ JCOs/ ORs at rates prescribed by the Govt. from time to time
based on Part II Order. This rate shall be enhanced by 25% automatically
each time the Dearness Allowance payable on the revised Pay Band goes
up by 50%. It is only admissible to Defence Personnel who have
undergone Para Jumping Instructor Course and are performing the
duties of the Instructor.
429
5.9.28. FUNERAL EXPENSE
The funeral expenses of the Honorary Commissioned officers,

JCOs/ORs & equivalent who die while serving, whatever be the cause of
the death, will be regulated by the following rules.
(i) Where a service funeral is provided the total expenses thereof will
be a charge against the state.
(ii) In case where relatives of the deceased Defence Personnel desire to

make their own arrangements for the funeral, they will be granted
the actual cost of the funeral, subject to the maximum ceiling.
Note: The expenses should be kept as low as possible by utilizing a service

mechanical transport vehicle or trailer for the conveyance of the coffin
irrespective of whether arrangements for the funeral are made by the Govt. or
any other body.
(iii) The funeral expenses in the event of death of an officer while

serving in a mission/post abroad, or an Indian domestic servant of
an officer whose passage has been met by the Government, will be
met by Government in full. In the case of death of a member of the
family of an Officer, Government’s liability will, however, be
limited to the difference between actual funeral expenses
(excluding the cost of shawl that may be placed on dead body) and
the cost of appropriate funeral in India.
430
5.9.29. GOOD SERVICE/ GOOD CONDUCT/ BADGE
ALLOWANCE
Non-commissioned officers are entitled to ‘Good Service/ Good

Conduct/ Badge Allowance’’ at the rates and under the conditions
specified in relevant Pay and Allowances Regulations.
Naiks/Lance Havildars and Naiks holding the appointment of

Lance Havildars and equivalent in Navy & Air Force are entitled to two
increases on account of GS Pay the first after 3 years of qualifying service
in those ranks/appointments and the second after 6 years of service.
Dafadars /Havildars and equivalent in Navy & Air Force are

entitled to 3 increases, each after a period of three years of qualifying
service as Dafadars /Havildars. A Naik/Lance Havildar/Lance Dafadar
promoted to the rank of Dafadar/Havildar and equivalent in Navy &
Air Force will continue to draw GS Pay earned earlier as a Naik etc.
subject to the condition that the total amount of GS Pay (including that
earned as a Havildar) does not at any time exceed the rates admissible
notified from time to time.
All services whether continuous or broken in the acting or

substantive rank of NCOs is reckonable for purposes of good/service
pay both in the current engagement as well as in the higher rank on
promotion. The following periods have been excluded in reckoning the
qualifying service:-
(i) Period for which pay and allowances were forfeited
(ii) Periods of absence without leave/leave without pay and

allowances; and period for which pay and allowances have been
withheld, pending regularisation.
For the grant of first rate of GS Pay, the NCO has not incurred
more than one red ink entry in his conduct sheet during two years
preceding the date from which it is granted; for higher rates of GS Pay,
431
NCO has not incurred any red ink entry during one year preceding the
date from which it is granted.
After the first rate of GS Pay, advancement to a higher rate is

granted only after the lapse of one year from the grant of the previous
rate (in the case of NCOs reverted to lower rank, their former qualifying
service as NCOs, whether continuous or broken, will also reckon
towards this period). GS Pay is not granted in advance except when it
falls due during terminal leave.
432
5.9.30. HARD AREA ALLOWANCE
Hard Area Allowance is admissible to the Defence Personnel

posted to Nicobar Group and Lakshadweep Group of Islands.
(i) Tough Locality Allowance is not admitted concurrently with Hard

Area Allowance.
(ii) It is admissible in addition to Island (Special) Duty Allowance.
(iii) It is admissible during absence on account of leave/Temporary

Duty at the same rate at which the officer was drawing prior to
proceeding on leave/Temporary Duty.
(iv) It is admissible for leave beyond 180 days based on a certificate to

be furnished that the officer or his family or both continue to
reside at the same station from where the officer proceeded on
leave.
(v) It is admissible during Study Leave for first 180 days, as per last
duty station.
(vi) It is admissible after 180 days, on receipt of certificate that family

continues to stay at last duty station.
(vii) It is admissible during journey time, as per the last duty station.
(viii) The allowance is not admissible during Course of Instructions of

10 weeks or more.
433
5.9.31. HARD LYING MONEY
Hard lying money shall be payable to officers including those

belonging to record parties at the rates and under the conditions
hereinafter provided. Hard lying money shall also be admissible for the
entire period for which an officer is borne on the ship concerned except
during periods of leave, sickness, temporary duty and for periods of refit
or repair of the ship during which the officers are required to stay ashore.
Officers qualified for the grant of hardlying money for 8 days or

above in a month shall be allowed the prescribed monthly rate.
However, those qualifying for lesser period shall not be entitled to
hardlying money for that month.
Classification of ships for full and half rates –
(1) The classes of ships service on which qualifies for hardlying money at
"full rates" are as follows:-
(a) Mine-sweepers :
(i) Motor Mine-sweepers.
(ii) Inshore Mine-sweepers.
(iii) Coastal Minesweepers : Bedi Bhavanagar.
(iv) Pondicherry.
(v) Porbandar.
(vi) Allepey.
(vii) Ratnagiri.
(viii) INS DBT-55.
(ix) Malvan.
(x) Mangrol.
434
(xi) Mahe.
(xii) Malse.
(xiii) Mulki.
(xiv) Magdala.
(xv) IN clul-35.
(xvi) INS Makar.
(b) Salvage vessel and Ocean-going Tug-
(c) Landing Craft-Major and Minor Landing Craft and Landing Berges:-
L-31, L-32, INCLU-33, INCLU - 34
(d) Small Craft:
(i) Trawlers and Craft on Mine-sweepers and Anti-Submarine Work.
(ii) Examination Vessels.
(iii) Motor Torpedo Boats.
(iv) Motor Gunnery Boats.
(v) Seaward Petrol Craft.
(vi) Sea going Lanches.
(e) Sub-marines:
KALVARI, KHANDERI, KARANAJ, KURSURA, MSTAR, VELA,

VAGIR, VAGLI, VAGHSHEER.
Hard lying Money at full rates to officers and sailors of NISTAR, VELA,
VAGIR, VAGLI and VAGHSHEER shall be admissible from the date of
their commissioning.
Missile Boats - Hardlying money shall also be payable to officers serving

on board the following missile boats at the full rates, namely:-
435
VINASH, NIRCHAT, VIDYUT, NIRBHIK, VIJETA, NASHAK, VEER,
NIPAT, PRATAP, PRALAYA, PRABAL, PRACHAND, CHAPAL,
CHAMAK, CHARAG, CHATAK.
Hardlying money to officers and sailors of these boats shall be

admissible from the date of their Commissioning."]
(2) The classes of ships, service on which qualifies for hardlying money
at "half rates" are given below :
Mine-sweepers:-
Ocean or Fleet Mine-sweepers
(a) Mine-sweepers:-
Ocean or Fleet Mine-sweepers.
(b) The following ships of Indian Navy :
"GODAVARI, KUTI IAR, KIRPAN, TRISHUL, TALWAR,

BRAHMAPUTRA, BEAS, BETWA, KRISHNA, KAVERI, SIIAKTI,
MAGAR, GHARIAL, GULDAR, IAMUNA, INVESTIGATOR,
KAMORTA, KADMATT, KILTAN, KAVARATTI, KATCHALL,
ARNALA, ANDROTLI, ANJADIP, ANDAMAN, AMINI, GAJ,
GHORPAD, KESARI, SHARLDUL, and SHARABH, RAJPUT, RANJIT
and RANG";]
Note: Hardlying money shall not be admissible to Indian Naval

personnel on board Ocean Mine-sweepers or Fleet Mine-sweepers as a
matter of course but only when such vessels are used as Mine-sweepers.
Explanation. - The payment of full or half rates of hardlying money is based on

considerations of the living and sleeping conditions on board, which refer not
only to the actual messing and sleeping accommodation but all factors that
affect the health and comfort of those on board, namely, interference with sleep
and rest, the difficult cooking arrangements and the like, and the amenities of
life in the ship as a whole. The following broad principle is therefore, followed,
namely :
436
(i) When the living and sleeping conditions are considered to be not
superior to those experienced in a major landing craft on normal service-
Full rates.
(ii) When the living and sleeping conditions are considered superior to
those experienced in a major landing craft but markedly inferior to those
in an Ocean Mine-sweeper or Fleet Mine-sweeper-Half rates.
437
5.9.32. HAZARD PAY
Hazard Pay has been authorized to Defence Personnel posted to

Special Force. Thereafter, Special Force was re-designated as 4 Vikas was
subsequently named as Special Group of Special Frontier Force, for
which Hazard Pay was authorized by the Govt.
.
438
5.9.33. HIGH ALTITUDE UNCONGENIAL CLIMATE
ALLOWANCE
This allowance is admissible to personnel serving in field areas

which are situated at beyond particular heights as notified and having
uncongenial climate of specific category as notified.
(i) HAUCL: The description “HAUCL” stands for High Altitude/

Uncongenial Climate Allowance (Category I) Lower rate. It is
admissible to personnel serving in field areas which are situated at
a height of 9000 ft to 15000 ft and uncongenial climate areas below
heights of 9000 ft.
(ii) HAUCH: The description “HAUCH” stands for High

Altitude/Uncongenial Climate Allowance (Category II) Higher
rate. It is admissible to personnel serving in field areas which are
situated at above 15000 ft of height (excluding Siachen).
(iii) HAUCS: The description “HAUCS” stands for High

Altitude/Uncongenial Climate Area Allowance (Category III)
(Special Rate).
Conditions for admissibility:
(i) The individual for whom allowance is notified should not be

absent from the specified area on Annual Leave/Sick Leave or any
leave other than Casual Leave or Temporary Duty. The individual
should not be absent from specified area for a period exceeding 14
days Casual Leave or Temporary Duty.
(ii) High Altitude and Uncongenial Climate Allowance (Higher and

Lower rates) is also admissible in addition to CFAA provided the
conditions for grant of HAUCA are fulfilled.
(iii) A certificate to the effect that the individual(s) for whom allowance
is notified are not absent from the specified area on AL/Sick Leave
or any leave other than CL or Temporary Duty.
439
(iv) He/they is/are not absent from specified area for a period
exceeding 14 days CL or Temporary Duty should be endorsed on
the DO II.
440
5.9.34. HIGHLY ACTIVE FIELD AREA ALLOWANCE
Defence Personnel serving in Highly Active Field Area are eligible

for the grant of Highly Active Field Area Allowance. HAFA Allowance
will be admitted on the basis of the following documents:
(i) Part II Order notifying entry in concessional area and grant of

HAFA Allowance.
(ii) Corps Notification indicating the status of the area of location of

the unit viz. whether Highly Active Field Area.
It is verified that:
(i) The Individual is serving in Highly Active field area as notified in

the Command/Corps Notification.
(ii) The Individual is not serving in Static Formations /Units i.e. MES,
Recruiting Officers, Training Centres / Establishments, NCC
Directorates and Units, TA Units unless embodied, Record offices
and similar establishments, Defence Estates units.
(iii) The Highly Active Field Area / Compensatory Field Area /

Compensatory Modified Field Area Allowance will not be
admissible concurrently.
(iv) The Highly Active Field Area / Compensatory Field Area

Allowance will be concurrently admissible alongwith HAUCA I, II
or III in designated areas.
(v) The Highly Active Field Area Allowance will be concurrently

admissible with Siachen Allowance.
(vi) Officers who are entitled to Flying Allowance while serving in any
of the designated field areas, shall draw, the applicable Field Area
Allowance in addition to Flying Allowance.
441
(vii) Officers who are entitled to Flying Allowance while serving in
Siachen, will draw either Flying Allowance or Siachen Allowance
along with the Highly Active Field Area Allowance, since Siachen
Allowance and Flying Allowance are not admissible concurrently.
(viii) The allowance will commence from the date on which an officer
arrives in the Highly Active Field Area on being posted.
(ix) HAFAA is not admissible when the officer is absent from the area
in the following circumstances.
a. When on CL or on Sick List Concession exceeding 15 days.
b. AL / Sick Leave / Furlough Leave.
c. When on transit from one Highly Active Field Area/Field
Area /Modified Field area to another Highly Active Field
Area/Field Area / Modified Field area, exceeding 15 days.
d. When on Temporary Duty exceeding 3 months.
442
5.9.35. HOUSE RENT ALLOWANCE (HRA)
Eligibility: -
(i) Employees not provided with the Govt. accommodation are

entitled to HRA at prescribed rates.
(ii) Employees staying in houses owned by self, spouse, children or

parents, a Hindu undivided family of which he is a coparcener,
and paying or contributing towards house tax/ maintenance of the
house, are also eligible for HRA.
(iii) Employees staying in rented accommodation, paying or

contributing towards the rent of the house, are also eligible for
HRA.
Rates of HRA:-
Classification of cities/towns Rate of HRA as %age of basic pay only
X 24 %
Y 16 %
Z 8%
The rates of HRA will be revised to 27%, 18% & 9% for X,Y & Z class
cities respectively when Dearness Allowance (DA) crosses 25% and further
revised to 30%, 20% & 10% when DA crosses 50%
Regulation of HRA under special circumstances: -
(i) During Leave: -

a. Preparatory to retirement: - HRA is allowed on furnishing
requisite certificate.
b. On medical grounds: - HRA is admissible up to 8 months.
Controlling officers to decide payment of the allowances beyond
this period subject to furnishing requisite certificate.
443
c. Other kind of leave: - HRA is allowed for 180 days without any
certificate, and for the period thereafter on furnishing the
required certificate. The same is applicable in case of Child care
leave also.
d. The rates of HRA will be the same as drawn before proceeding on
leave. If resigned while on leave, the entire HRA paid will be
recovered. If dies or invalidated while on leave, the HRA paid
during leave need not be recovered.
(ii) During Joining Time: HRA is allowed at the rate applicable to the old
station.
(iii) During Deputation Abroad: -

a. Upto one year- HRA is allowed at the rates of his headquarters.
b. After one year- HRA is allowed if family stays at headquarters
and requisite certificate is furnished.
(iv) During Suspension: Admissible for the first 180 days. Beyond this
period, payment will be subject to furnishing the required certificates.
(v) During Temporary Transfer: Admissible up to 90 days at the rates

applicable at the old station and beyond this period at the rates
applicable for the new station.
(vi) During training in India: -

a. When DA not drawn: - Admissible at the rates applicable to the
headquarters station or training station, whichever is more
favourable.
b. When DA drawn: - Admissible at the rates applicable to
headquarters only, even when no DA is drawn for the period
beyond 180 days.
(vii) During training abroad: Admissible at the rates applicable at

headquarters subject to furnishing certificates. Not admissible during
leave taken while on training or immediately thereafter.
(viii) Date of discontinuance of HRA: From the date of occupation or from

8th day of allotment, whichever is earlier. In the case of refusal, from the
date of allotment.
444
(ix) On transfer:
a. HRA admissible for 8 months only at new station, if Govt. Accn.
at old station retained at normal/penal/market rent.
b. HRA for employee not in occupation of Govt. Accn. at old station,
if he/she leaves family at old station and not allotted government
accommodation at new station.
c. For the first two months of date of joining at new station: - At the
same rate at old station.
d. For the next four months or the end of academic year, whichever
is later: - At the rate drawn at old station or maximum admissible
at the new station had he taken a residence on rent, whichever is
less.
445
5.9.36. HYDROGRAPHIC SURVEY ALLOWANCE
Sailors of the seamen branch employed on survey duties are

eligible for Hydrographic Survey Allowance at the rates prescribed by
the Govt. from time to time.
A sailor who is permitted form one Survey class to another or

advanced in rate during the course of a survey year (period from 1 st
October of a year to the 30th September of the following year) will be
eligible for the grant of Hydrographic Survey Allowance at the
appropriate rate for the period during which each class or rate is held.
Condition of eligibility:
(i) The allowance will be paid annually in arrears in respect of each

survey year.
(ii) The sailor must have been employed in survey ships on field
duties for a minimum period of 75 days in the Survey year.
(iii) For full allowance a sailor must have been employed on field
duties for 150 days; for period from 75 to 149 days only
proportionate allowance will be admissible.
(iv) A Sailor who is appointed to the General Service from Survey

duties during the course of a survey year and vice versa shall be
entitled to the proportionate Hydrographic survey allowance in
arrears at the end of the survey year provided he is employed in
survey ships on field duties for a minimum period of 75 days in
the Survey year.
(v) If a sailor on being appointed to the General Service does not

resume survey duties during the survey year, he shall be treated as
a fresh entrant for the purpose of further entitlement to
hydrographic survey allowance.
(vi) The Sailors work during the survey year must be certified to have
been satisfactory by the Commanding Officer of the Survey Ship.
446
(vii) A sailor who retires during the course of a survey year after
having put in the minimum requisite period on field survey duties
for eligibility to hydrographic survey allowance will be entitled to
proportionate hydrographic survey allowance. Payment of
hydrographic survey allowance can be made to entitled ‘sailors on
retirement/release from service’ during the course of a survey year
as there will not be any further claim from them on this account
pertaining to that survey year. Besides ensuring that the above
conditions are fulfilled it will be seen in audit that –
a. The sailor has attained the minimum grade of 3rd class

survey recorder.
b. The claim is accompanied by a certificate from the

Commanding Officer regarding satisfactory service.
447
5.9.37. ISLAND SPECIAL DUTY ALLOWANCE
Island Special (Duty) Allowance is admissible to the officer posted

to an area in Andaman & Nicobar and Lakshadweep Group of Islands.
The rate is admissible @ 12.5%, 20% and 25% of Basic Pay for areas
around capital towns, difficult areas, and more difficult areas
respectively. The term Basic Pay means Pay in Basic Pay + MSP + NPA,
if any.
The allowance is not admissible during leave/training, beyond 15

days at a time & beyond 30 days in a year & during suspension/Joining
Time. The rates of Island Special (Duty) Allowance are mentioned
below:
S. No. Areas Rates
1. Areas around Capital Towns: 12.5% of Basic Pay
Port Blair in Andaman and Nicobar Island, Kavaratti

and Aggati in Lakshadweep
2. Difficult Areas: North & Middle Andaman excluding 20% of Basic Pay
Port Blair in Andaman and Nicobar Island, all Islands
in Lakshadweep except Kavaratti, Aggati and

Minicoy
3. More Difficult Areas: (Little Andaman & Nicobar 25% of Basic Pay
group of Island, Narcondam Islands, East Island in
Andaman and Nicobar Island, Minicoy in
Lakshadweep)
448
It will be checked that:
(i) The allowance is not admissible with HAFA, CFAA, CMFAA,

CIAPC, CIAMF, CIAFD, HCA, HAUCA, and Transport Allowance
at higher rates for classified cities.
(ii) Only one allowance out of ISDA1, ISDA2 and ISDA3 is admissible
at a time.
449
5.9.38. LANGUAGE ALLOWANCE
Language Allowance is admissible at prescribed rates to officers

actually performing the duties involving the use of Foreign Languages
mentioned below as Translator/Instructor/Interpreter. The allowance is
admissible only for the duration for which the officer is performing
these duties and its continuance is subject to the recipient passing the
Proficiency Test conducted by the School of Foreign Languages every
year.
The allowance will be admitted on the basis of Part II Order

notifying the grant with the prescribed certificate. The title to Language
Allowance is initially notified in Army Orders and reproduced in Part II
Orders. The language for which the allowance is sanctioned, the
qualifying examinations passed by the officer, the date of examination,
the date from which the officer qualified for the allowance and the
period for which the officer is entitled to the Language Allowance are
specified in Army Orders. Part II Orders notifying the grant of Language
Allowance will be linked with the Army Order.
In auditing the Part II Order notifying the grant of Language

Allowance, it will be ensured that:
(i) The officer is actually performing duty involving the use of

Foreign Language as Translator/ Instructor/ Interpreter.
(ii) The allowance is admitted only for the period for which he/she is
performing the above duties.
(iii) Continuance of the allowance is subject to his/her passing the

proficiency test conducted by the School of Foreign Language
every year.
(iv) The allowance is not admitted to the officers recruited as

Translator on the basis of their proficiency in the Foreign
Language concerned in a separate Cadre.
450
(v) The allowance is admitted to officer who has not less than five
years service and serve after passing the course.
(vi) The certificate is furnished in the Part II Order by an officer of the

rank of Lt. Col. or equivalent that the officer satisfied all the
eligibility conditions for the period for which the allowance is to be
paid.
451
5.9.39. LANGUAGE AWARD
Language Awards are admissible at the rates prescribed and

subject to conditions enumerated below.
General Conditions:
(i) The officer should serve the Govt. for at least 5 years after receipt
of the Award.
(ii) The standard of proficiency should be recognized by the school of

Foreign Language.
(iii) The officer should obtain at least 65% marks in Advance Diploma
Part II and 70% marks in the Interpreter-ship Examination.
(iv) Foreign Language should not be one's mother tongue.
103. All expenditure including books and stationery, etc. would be met
by the Govt. and would be provided before the commencement of
course on ‘as required basis’ by the Head of the Institute concerned.
Where the same is not provided for due to non-availability, the cost
incurred by the officer will be reimbursed.
Category I: Chinese (Mandarin) Japanese, Russian, Tibetan, Swahili,

Burmese, and Uighur.
Category II: Arabic, Malay/Bhashha, Indonesia, Thai, Turkish,

Persian, Phushtu, Sinhalese and Bhutanese.
Category III : French, Dutch, Italian, Spanish, Serbo-Croatian and

Czech.
Language Awards will be admissible to first three of the successful

students who obtain not less than 65% marks in Advance Diploma Part
II and not less than 70% marks in the Interpreter-ship in recognition of
their merit.
452
5.9.40. MILITARY SERVICE PAY
Taking note of the specific problems faced by Defence Forces

personnel (viz., Army, Navy and Air Force) on account of rigours of
military life, the VI CPC recommended an additional, separate element
of pay for the Defence Forces called Military Service Pay (MSP). The VI
CPC also intended, it was in fact so articulated, that the edge previously
enjoyed by the Defence Forces, over the civilian scales would be
replaced by the MSP.
The Defence forces personnel, in addition to their pay as per the

Matrices notified vide VII CPC, will be entitled to payment of Military
Service Pay for all ranks up to and inclusive of Brigadiers and their
equivalents.
MSP is reckoned as Basic Pay for purposes of Dearness Allowance,

as also in the computation of pension. Military Service Pay will however
not be counted for purposes of House Rent Allowance, Composite
Transfer Grant and Annual Increment.
453
5.9.41. MONETARY ALLOWANCE ATTACHED TO
GALLANTRY AWARDS
Monetary Allowance for the Gallantry Awards came into effect

with the issue of AI 268/50 for acts of Gallantry performed in an
operation in the field on or after 15th August 1947.
The Gallantry Awards are Param Vir Chakra, Ashoka Chakra,

Mahavir Chakra, Kirti Chakra, Vir Chakra and Shaurya Chakra.
Monetary Allowance is also payable to all Defence Personnel awarded
Sena/Nausena Medal/ Vayusena Medal for Gallantry.
The Monetary Allowance for these awards is payable to recipients

irrespective of rank and income. Each Bar to the Decoration will carry
the same Monetary Allowance as admissible to the original awards.
The Gallantry is exempted from Income Tax.
The allowance will be admissible to the recipient of the awards

and on his death to his widow lawfully married by a valid ceremony.
The widow will continue to receive the allowance until her remarriage
or death. The payment of the allowance will, however, be continued to a
widow who marries her late husband’s brother and lives a communal
life with the living heir eligible for family pension.
Some State Govt./Union Territories have formulated their own

scheme to grant cash rewards to awardees domiciled in their State. Any
such reward sanctioned is payable by them to these officers. Recovery of
Public dues from payment of Monetary Allowance payable to NoK of
the deceased officer is permissible.
454
5.9.42. MARCOS & CHARIOT ALLOWANCE
Chariot strength are entitled to chariot allowance equivalent to the

sub-marine pay admissible to submariners subject to the conditions laid
down. Chariot allowance shall be treated as pay for all purposes.
Chariot allowance equivalent to submarine pay is admissible

subject to the condition that officers borne against the chariot strength
obtain additional life insurance cover through Naval Group Insurance
Scheme against all.
The Naval Group Insurance Scheme will pay survival benefits to

officers covered under the above insurance scheme on
retirement/release, the amount of which shall be determined by the
Naval Group Insurance Scheme from time to time.
455
5.9.43. NEWSPAPER ALLOWANCE
In place of reimbursement of Newspapers purchased/supplied to

officers at their residence, newspaper allowance at the prescribed rates
are admissible to entitled officers and staff based on the prescribed he
certification given by the entitled officer.
456
5.9.44. NIGHT DUTY ALLOWANCE
Civilian Industrial employees working on night shifts are

eligible for Night Duty allowance on the basis of weightage of 10
minutes for every hour of night duty performed between 22.00 hours
and 6.00 hours at the rates specified in the Government orders Issued
from time to time.
457
5.9.45. NON-PRACTICING ALLOWANCE
Non-Practicing Allowance is granted to CGHS Medical Officers,

Veterinary Officers, AMC/ADC/RVC Officers in lieu of their right to
resort to private practice. Non-Practicing Allowance (NPA), when paid,
is treated as pay for all purposes. It is a percentage of Pay based
Allowance. The term Pay denotes Pay in the Pay and MSP with a
restriction that Pay plus NPA should not exceed Rs 2,37,500/-.
458
5.9.46. OVER TIME ALLOWANCE
Over time Allowance is granted to civilian operational and

industrial employees who are governed by statutory provisions as rates
prescribed by the Govt. from time to time.
(i) No OTA for initial one hour.
(ii) Time taken for Lunch Break is deducted from extra duty hours
459
5.9.47. PARA ALLOWANCE
Para Allowance will be admitted to Defence Personnel on under-
mentioned conditions on the authority of notifications in Part II Orders.
Part II Orders received notifying the grant of Para Allowance will be
scrutinized in the manner: -
(i) The individual was on probation for one month in a parachute

formation before attending Basic Parachute Course.
(ii) If he had not undergone any probation or if the period of

probation undergone is less than one month that this requirement
has been waived by the Administrative Authorities.
(iii) It is granted with effect from one calendar month after the date of
commencement of probationary attachment or from a date not
exceeding three months anterior to the date of commencement of
Basic Para Course, whichever is later.
(iv) It is granted from the date of commencement of the Basic Para

Course in cases where the probationary attachment is waived.
(v) The sanction of the Commander of the Parachute unit/formation

exists for the grant of Para Allowance for the period of courses
undergone, if the officer had not completed the Basic Para Course
though no fault of his own.
(vi) The officer is employed on parachute duties and is holding an

appointment authorized by the War/Peace/ Interim
Establishment of the unit/formation.
(vii) Officers holding administrative appointments are not granted Para

Allowance unless they are required to qualify a parachutist and
remain liable for Para duties.
(viii) The individual has undergone for the Para Refresher Course for
continuation of the allowance in the subsequent year.
460
(ix) Para Allowance, Para Reserve Allowance and Special Commando
Allowance are not admissible concurrently.
461
5.9.48. PARA RESERVE ALLOWANCE
Para Reserve Allowance is admissible at the rates notified from

time to time to Defence Personnel in Para reserve. Transfer of trained
parachutists to Para Reserve is notified in IHQ of MoD (Army) letters
and in Part II Orders by the units subsequently. Part II Orders will be
linked with the letter ibid and verified to see that:-
(i) The individual is having a minimum of three years service in a

Para unit as a trained parachutist.
(ii) The individual is less than 35 years of age and where this limit is
exceeded the sanction of the administrative authority exists.
(iii) The individual has undergone for the Para Refresher Course for
continuation of the allowance in the subsequent year.
(iv) Para Allowance, Para Reserve Allowance and Special Commando

Allowance are not admissible concurrently.
462
5.9.49. POST GRADUATE ALLOWANCE
Officers of AMC and ADC possessing Post Graduate Degree or

Post Graduate Diploma qualifications are entitled to PG Allowance
when not eligible for Specialist Allowance. The allowance is payable
based on a list of such officers prepared by DGAFMS, New Delhi and
Part II Order published by the unit.
463
5.9.50. PROJECT ALLOWANCE
Project Allowance is admissible to the Defence Personnel &

Civilians on Deputation to a project other than one under Ministry of
Defence at the rates prescribed by the Govt. from time to time.
It will be checked that:
(i) Government Letter authorizing the allowance has been quoted as

an authority for notifying the casualty in the Part II Order.
(ii) the officer is deputed to a project other than one under Ministry of
Defence.
(iii) the officers drawing Project Allowance will not be eligible for Field
Service Concessions.
464
5.9.51. QUALIFICATION ALLOWANCE
Qualification Allowance is admissible in respect of Aviators and

Qualified Flying Instructors, (for the posts mentioned below), for so long
as the officers are employed on Air observation post duties or are
holding a specific appointment in other establishments involving the
performance of flying duties as crew of an air-craft, at the rates
mentioned below. It is, however, subject to the conditions that the
officers maintain themselves in a certain state of qualification
continuously in the interest of the service and they are periodically
tested to ensure that they have retained the qualification. Qualification
Pay is admissible to Aviation Instructors and Aviators at the under
mentioned categories:
(i) Cat ‘A’ (ATC/FC)
(ii) Cat ‘B’ (ATC/FC)
(iii) Master Aviation Instr
(iv) Senior Aviation Instr (Class I)
(v) Senior Aviation Instr (Class II)
(vi) Aviators Holding Master Green Card
(vii) Aviators Holding Green Card
465
5.9.52. RATION MONEY ALLOWANCE
Service Officers are entitled for issue of free ration in kind in the
peace area. However, in the following contingencies they are entitled for
payment of cash allowance in lieu of free rations which will be subject to
audit and payment:
a) Annual leave
b) Sick leave on full pay and allowances
c) Duration of casual leave which is spent away from his duty
station.
d) Preparatory leave while on permanent posting
e) LPR
f) Course of instructions on posting to non-military station
g) Furlough leave
h) Maternity leave
i) Special casual leave
j) Study leave in India
466
5.9.53. REWARD FOR MERITORIOUS SERVICE
The Meritorious Service Medal may be awarded to a Havildar of

the Army, provided he has 18 years combatant or non-combatant service
reckoned up to 25th January/14thAugust of the year in which the
recommendations are made.
The award carries an annuity as per rates notified from time at

rates notified by the Govt. from the 26th January/15th August of the year
in which it is made. The annuity is claimed on contingent bill in arrears
and credited in IRLA along with pay for the month of August of the year
following that in which the award is made.
While auditing the contingent bill, it will be ensured that the

annuity is surrendered on reduction of the individual to a lower rank, or,
promotion to the rank of JCO, or discharge or transfer to pension
establishment or death. In all these circumstances the amount due till the
appropriate date (calculated proportionately for the broken period of the
year) will be claimed and credited immediately when it becomes due.
The Part II order notifying the casualty giving rise to the claim for Part
of the year will be verified in such cases.
467
5.9.54. RUM ALLOWANCE
Rum Allowance at rates notified from time to time is granted to

JCOs/ORs of Indian Army as per the following categories:
(i) Peace Areas
(ii) Field Area Below 3000 ft
(iii) Field Area 3000 - 4999 ft
(iv) Field Area 5000 - 8999 ft
(v) Field Area 9000 ft and above
468
5.9.55. SEA GOING ALLOWANCE
Rates of Sea Going Allowance granted to personnel of Indian

Navy who are performing duties on water. The 12-hour conditionality
for determining the eligibility of Sea Going Allowance has been reduced
to four hours. Monthly rates are notified by the Govt. from time to time.
469
5.9.56. SIACHEN ALLOWANCE
Defence Personnel serving in Siachen Glacier area will be eligible

to the grant of Siachen Allowance at rates notified by the Govt. from
time to time.
It will be verified that:
(i) The officer is serving in Siachen glacier area under “Operation

Meghdoot”.
(ii) Siachen Allowance will be admissible in addition to HAFA.

However, Siachen Allowance is not admissible alongwith HAUCA
& Flying Allowance. The allowance, out of HAUCA and Siachen
Allowance, whichever is more beneficial to the individual will be
admitted. However, the individual has to exercise option to choose
amongst Flying Allowance and Siachen Allowance.
(iii) The conditions for cessation of the allowance are same as for
HAUCA.
470
5.9.57. SPECIAL ALLOWANCE FOR CHILD CARE FOR
WOMEN WITH DISABILITIES
In order to provide extra benefits to women employees with

disabilities especially when they have young children and children with
disability.
Women with disabilities shall be paid Rs.3000/-per month as

Special Allowance for Child care. The allowance shall be payable from
the time of the child’s birth till the child is two years old. It shall be
payable for a maximum of two eldest surviving children. Disability
means a person having a minimum Disability of 40%.
471
5.9.58. SPECIAL FORCES ALLOWANCE
Defence Personnel posted to 1, 2, 3, 4, 9, 10, 11, 21, HQ SFF and

Special Force Training (SFT) School will be admitted Special Force
Allowance (Special Commando Allowance) at the rate linked with the
rank. The conditions of admissibility/continuation of Para Allowance
will be applicable to Special Force Allowance.
Conditions for Grant:
(i) The individual is posted to 1 PARA, 2 PARA, 3 PARA, 4 PARA, 9

PARA, 10 PARA, 11 PARA, 21 PARA, HQ SFF and Special Force
Training (SFT) School only.
(ii) If the individual is not from above mentioned units, the

Government Sanction is required.
(iii) If the individual is in receipt of Para Reserve Pay or Para

Allowance, the same is recovered. However, on reversion to
parent unit, the individual will be entitled to Para Allowance or
Para Reserve Pay, as the case may be.
472
5.9.59. SPECIAL SECURITY ALLOWANCE
Special Security Allowance @ 15% of the Basic Pay (Pay + MSP +

NPA if any) is granted to all Defence Personnel including AMC, ADC,
RVC and MNS personnel posted on Deputation to Special Frontier Force
(SFF) under HQ 22 Establishment.
It is granted based on the Nominal Roll of the Defence Personnel

on Deputation to SFF being received from DG, SFF and Part II Orders
notifying the casualties published by the units. Special Security is
admissible in addition the Deputation Allowance and Hazard Pay.
473
5.9.60. SPECIALIST ALLOWANCE
Officers of the AMC/ADC who possess the necessary

qualifications and who in the opinion of the Director General Armed
Forces Medical Services (DGAFMS) have sufficient experience and
standing in any of the subjects recognized as 'Special' subjects for the
specialization may be granted the status of a "CLASSIFIED" or
"GRADED" Specialist.
Normally, an officer considered fit for being designated as a

Specialist, will in the first instance, be given the status of a "Graded"
Specialist. He would, in due course of time, be upgraded by the
DGAFMS as a "Classified" Specialist.
Different rates have been prescribed for under mentioned

categories:
(i) Graded Specialist - Lower Rate
(ii) Classified Specialist - Higher Rate
(iii) Consultant/Advisor/Professor - Highest Rate
474
5.9.61. STRATEGIC FORCES ALLOWANCE
Strategic Forces Allowance is admissible to the personnel of

Special Forces Command. SFA at higher rate is applicable for Defence
Personnel of Installation Security Force (SFA) and at lower rate for
Defence Personnel of HQ SFC and Units/Formations under HQ SFC,
Missile Maintenance Organization (MMO), Command Counter
Intelligent Unit, Strategic Force Command (CCIU, SFC), Strategic Forces
Training School deployed for strategic role.
(i) The individual is posted to the units for which the allowance is
admissible and deployed for strategic role.
(ii) In addition to SFA the SF personnel shall be entitled to the

applicable HAFAA/CFA/CMFAA depending upon the area of
deployment.
(iii) However, if deployed on CI Ops, they shall be entitled, in addition

only to the applicable CI Ops allowance depending on the area of
CI Ops.
(iv) The SFA shall be admissible to all personnel entitled to Flying

Allowance/ Submarine Allowance along with the applicable Field
Area allowances.
(v) SFA and Flying/Submarine allowance shall be admissible

concurrently.
475
5.9.62. SUBMARINE ALLOWANCE
Submarine Allowance at rates notified by the Govt. from time to

time is admissible to Sailors qualified for service in submarines and
appointed as part crew or spare crew. It is also admissible to Sailors
who are otherwise qualified for submarine service and held
appointments in which they are required as part of their normal duties
to go to sea in submarines from time to time and which are declared as
such by IHQ of MoD (Navy).
Submarine allowance will be admissible to a Sailor after

completing submarine training and qualifying for service in a submarine
and on being appointed either as a submarine crew or to the qualifying
appointments.
Submarine allowance will not be admissible in addition to

submarine duty allowance nor will it be admissible to a Sailor who:
(i) Remains medically unfit for service in submarines for a period

exceeding three months,
(ii) Fails to maintain the requisite standard of efficiency as determined

at the discretion of the CNS, and
(iii) Is transferred to General Service appointments.
476
5.9.63. SUBMARINE DUTY ALLOWANCE
Submarine Duty Allowance at the prescribed rates will be

admissible to Sailors attached for training to or for exercises in a
submarine. The allowances will not be admissible for the period of
absence from Submarine for more than three consecutive days, but is
intermittently for more than fourteen days in a month, the allowance
will not be admissible for the period of such actual absence.
As the sailors on completion of submarine training become

entitled to submarine Pay, the allowance will not be admissible to sailors
who have already completed their submarine training / attachment.
477
5.9.64. SUBMARINE TECHNICAL ALLOWANCE
Submarine Technical Allowance at rates notified by the Govt. from

time to time is admissible to Naval Officers & technicians for the period
they are deployed in Submarine Maintenance Duty. Conditions for grant
of this allowance are same as for Submarine Allowance
478
5.9.65. SUBSISTENCE ALLOWANCE
A subsistence allowance. as notified from time to time will be paid

to the family/ dependent parents of every married or unmarried
ORs/NCs(E), recruit and equivalent of Indian Armed Forces
respectively when he is undergoing imprisonment (including detention
involving forfeiture/stoppage of P&A) in Military custody or Military
prison without sentence of dismissal.
In the case of unmarried personnel, the payments will be subject to

the furnishing proof by the individual concerned to the effect that he
had been maintaining his parents either through family allotment or by
making remittance.
It is also granted in case of Defence Pensioners when asked to

survey Medical Board on furnishing a certificate to the effect that the
allowance has been claimed only for the period of transit from home of
the individual to the station where medical board is held and vice versa.
A subsistence allowance at an amount equal to the leave salary

which the Civilian Government servant would have drawn if he had
been on leave on half average pay or on half pay and in addition,
dearness allowance, if admissible on the basis of such leave salary.
Provided that where the period of suspension exceeds three months, the
authority which made or is deemed to have made the order of
suspension shall be competent to vary the amount of subsistence
allowance for any period subsequent to the period of the first three
months.
No payment of subsistence allowance shall be made unless the

Government servant furnishes a certificate that he is not engaged in any
other employment, business, profession or vocation.
479
5.9.66. TECHNICAL ALLOWANCE
Technical Allowance is payable to an officer on

acquiring/possessing the prescribed qualifications by Director General
Military Training, General Staff Branch, IHQ of MoD (Army)
(i) Qualification for which Technical Allowance is being claimed

should be an approved qualification as per Orders on the subject.
(ii) The claim has been signed by the claimant and countersigned by
the Director of the Branch concerned at IHQ of MoD (Army) or by
an officer not below the rank of Lt. Col. who has been authorized
to countersign the claim or by the CO of the unit.
(iii) The claim is not time barred and the sanction of the Competent
Authority waiving the time limit is attached in cases of time barred
claims.
(iv) Technical Allowance is admissible for maximum of one

qualification from each Tier.
(v) Technical Allowance for Tier II is admissible to officers holding the

substantive rank of Captain. If the acquisition of the qualification
is prior to the date of Substantive Capt., Technical Allowance will
be admitted only from the date of Substantive Capt.
(vi) Technical Allowance (Tier II) in r/o officers who do not possess
the qualifications for grant of Technical Allowance at Tier I rates is
admissible /allowed provided the course undergone is of
recognized Universities/ Institutes/ notified by Ministry of HRD,
except in cases of in-service training undergone identified Tier II
courses at Military Training Institutions.
(vii) Qualification Grant and Technical Allowance are concurrently

admissible as long as they are based on two different and distinct
qualifications.
480
(viii) Re-employed officers are entitled to Technical Allowance only
when the Competent Authority furnishes a certificate that they are
employed on technical or maintenance duty.
(ix) Officers of the AEC, AMC and ADC are not eligible for Technical
Allowance since Technical Allowance is admissible only to
technically qualified officers.
(x) Computer Application courses of various levels which can be

attended with any graduate level examination will be considered
for Qualification Grant and not for Technical Allowance.
(xi) Technical Allowance is admissible irrespective of Corps/Arm of

Service and type of Commission. Officers acquiring qualifications
listed for Technical Allowance at their own, even through distance
learning will also be admitted the
(xii) Technical Allowance based on the certificate of Line Directorate at

IHQ of MoD (Army) & DGMT regarding relevance of course with
performance of duties.
481
5.9.67. TEST PILOT & FLIGHT TEST ENGINEER
ALLOWANCE
Test Pilot Allowance & Flight Test Engineer Allowance (extended

to Air crew Aerobatic teams) shall be granted on prescribed rates on
following conditions:
(i) The officer has completed Experimental Test Pilot Course in India
or abroad.
(ii) The officer is on posted/Supernumerary Strength or on

attachment.
(iii) The officer is not on Temporary Duty, attachment & leave if the
period exceeds 3 months unless certified that, “aviator is likely to
resume Test Flying duties on termination of Temporary
Duty/attachment/course”.
(iv) The officer is posted to Army Project Team, Bangalore.
482
5.9.68. TOUGH LOCALITY ALLOWANCE
This allowance has been introduced for Defence Personnel in lieu

of Bad Climate allowance, Special Compensatory (Remote Locality
allowance), Sunderban allowance and Tribal Area allowance.
483
5.9.69. TRAINING ALLOWANCE
For Civilian Officer Training Allowance in Training Academies

and Institutes shall be as under:
Training Allowance in the National/Central 24% of Basic Pay

Training Academies and Institutes for Group' A'
officers
In other Training Establishments 12% of Basic Pay
Training Allowance will be admissible only to the employees who

join the training establishments for a specified period of time and are
then likely to go back. Training Allowance will not be admissible to
those employees who are directly recruited by such training
establishments for imparting training
For Defence Personnel Instructional Allowance has been abolished

as a separate allowance i.e. Training Allowance shall be admissible @
24% and 12% of Basic Pay for Training Institutes belonging to Cat A & B
respectively.
484
5.9.70. TRANSPORTATION ALLOWANCE.
Transport Allowance granted to an employee to meet expenditure

for the purpose of commuting between the place of residence and place
of duty.
The grant of Transport Allowance is subject to the following

conditions: -
(i) The allowance will not be admissible to those employees who have
been provided with facility of Government transport.
(ii) In respect of those who opt to continue in the pre-revised pay

structure/ pay scales, the corresponding level in the pay matrix of
the post occupied on 01.01.2016 as indicated in the CCS (RP) Rules,
2016 would determine the allowance under these orders.
(iii) Officers drawing pay in level 14 and above in the pay matrix, who
are entitled to the facility of staff car, may opt-
a. to continue to avail the facility of staff car and forgo

transport allowance.
b. to avail the benefit of transport allowance @Rs 15,750 pm

plus DA thereon – in this case the facility of staff car will be
withdrawn.
c. The option once availed cannot not be changed during the

remaining period of the current assignment of the officer.
(iv) Visually impaired, orthopedically handicapped, deaf and dumb/

hearing impaired employees and those having spinal deformity
shall be paid transport allowance at double the normal rate, subject
to fulfillment of stipulated conditions, which shall, in no case, be
less than Rs 2250 + DA per month.
485
Admissibility of transport allowance during the following
circumstances: -
(a) During Leave: The allowance will not be admissible for the
calendar month (s) wholly covered by leave.
(b)During deputation abroad: The allowance will not be admissible

during deputation abroad.
(c) During tour: If an employee is absent from the HQrs/ place of

posting for full calendar month (s) due to tour, he/ she will not be
entitled to transport allowance during that/ those calendar month
(s). However, if the absence does not cover any calendar month (s)
in full, transport allowance will be admissible for the full month.
(d)During training treated as duty: The allowance may be granted

during such training, if no transport facility/ training allowance/
daily allowance is provided for attending the training institute.
During official tour in the training course, the allowance will not
be admissible when the period of tour covers the whole calendar
month. Also, during training abroad, no transport allowance will
be admissible when the period of such training covers the whole
calendar month.
(e) During Suspension: Not admissible
486
5.9.71. UNIT AND CHARGE CERTIFICATE
ALLOWANCES TO ENGINE ROOM ARTIFICERS AND
MECHANICIANS
Rates and conditions of admissibility. –
(1) Engine room artificers and mechanicians of the Indian Navy who are
on continuous service terms, shall be granted unit certificate allowance
and charge certificate allowance, provided that they are re-engaged, or
undertake in writing to re-engage, to complete the minimum qualifying
service for pension, at the rates prescribed from time to time.
(2)(a) The Lower rate of unit certificate allowance shall be payable
(i) During the first ten years' engagement-on completion of two years
from the date of qualifying for the unit certificate.

the time for pension-from the date following the date of completion of
ten years' service since attaining a man's rate or since attaining the age of
17 years whichever is later, if they are already qualified for the unit
certificate, or from date of qualifying for the unit certificate, whichever is
later.
(b) The higher rate shall he payable during the period of re-engagement
to complete the time for pension from the date following the date of
completion of ten years' service since attaining man's rate or since
attaining the age of 17 years whichever is later, provided that the lower
rate has been drawn for a period of two years after qualifying for the
certificate.
(c) The special rate shall be admissible for periods of re-engagement

beyond fifteen years provided the higher rate has been drawn for a
period of two years.]
(3) The lower rate of charge certificate allowance shall be payable
487
(i) During the period of their first ten years' engagement-on completion
of two years from the date of qualifying for the charge certificate;

time for pension-from the date following the date of completion of ten
years' service since attaining man's rate or since attaining the age of 17
years whichever is later, if they are already qualified for the Charge
Certificate, or from date of qualifying for Charge Certificate whichever is
later.
(iii) The higher rate shall be payable during the period of re-engagement
beyond ten years to complete the time for pension from the date
following the date of completion of ten years' service since attaining a
man's rate or since attaining the age of 17 years whichever is later,
provided that the lower rate has been drawn for a period of two years
after qualifying for the certificate.
(4) Unit and charge certificate allowances shall not be drawn

concurrently; only one allowance shall be admissible at a time.
488
5.10. MEDICAL REIMBURSEMENT CLAIMS
5.10.1. GENERAL
Basically, there are four distinct categories of Govt. servants for the
purpose of medical reimbursement. These are:
(i) Defence Personnel & their families
(ii) Civilian employees residing outside the areas covered by CGHS
are governed by the CS (MA) Rules,
(iii) Civilian employees residing within the areas covered by CGHS are
called CGHS beneficiaries
(iv) Ex-servicemen covered by ECHS are called ECHS beneficiaries
In case of CGHS & ECHS beneficiaries reimbursement of Medical

Claims to individuals/ hospitals (as the case may be) are made in
compliance with the various orders issued by Min. of Health & Family
Welfare from time to time.
5.10.2. Guidelines
Following guidelines have been laid down to regulate medical

claims preferred by all of the above categories of Govt. employees for
reimbursement of expenditure incurred by them on account of medical
attendance and treatment in respect of themselves and members of their
families received from authorized medical attendants under the CS
(MA) Rules 1944:
A. OUTDOOR TREATMENT:
(i) The treatment at the consulting room of AMA is limited to ten

days with a maximum of four consultations and normally ten
injections. The number of injections may go up to fifteen
depending on patient's ailment.
(ii) The limit of ten day's treatment at the consulting room of AMA
may be increased to twenty days if the treatment is had in Indian
489
system of Medicines and in Homeopathy. The total number of
consultations will, however, remain four.
(iii) The limit of four consultations within ten days is applicable for
attendance with a Specialist/ other Medical Officer and will
count from the date from which the Specialist/ other Medical
Officer, is consulted.
(iv) Cases of medical treatment requiring hospitalization have to be

referred to Government/recognized hospital.
(v) If hospitalization is not considered necessary, but treatment is

expected to be prolonged requiring more than four consultations
or more than a course of fifteen injections, as the case may be,
either separately or concurrently, the patient should be referred
to out – patient department of Government/ recognized hospital.
(vi) If, for want of accommodation, admission to a hospital is not

possible, reimbursement of expenses incurred on treatment is
permissible to the extent otherwise admissible.
(vii) A separate claim is to be preferred in respect of each spell of

illness or an entirely new disease.
(viii) To justify afresh claim for the recurrence of the same disease for a
second time, there should be a reasonable gap between the
closing of the first spell and the recurrence of the second spell.
(ix) When a patient consults the same AMA in regard to the super
imposition of another disease during the course of treatment of
one disease, it is regarded as a fresh consultation and charged for
at full rates.
(x) Every consultation after the first for the same illness of the same
patient with the same AMA is treated as subsequent consultation
and charged for at the prescribed lower rates.
(xi) If at the time of consultation the Medical Officer consulted also

administers injections he will be entitled to charge fees both for
490
the consultation and for the injection at the prescribed rates.
However, if at a later stage the Medical Officer administers
injections prescribed at the previous consultation, fees should be
charged for injections only.
(xii) Consultation on the tenth day of treatment is permissible, if no

medicine is prescribed on that consultation.
(xiii) Purchase of Allopathic medicines and drugs can be made from

any chemist/ druggist licensed under the Drugs and Cosmetics
Act and rules framed there under. Purchase of Ayurvedic/
Siddha/ Unani medicines can be made only from approved
pharmacies.
(xiv) The Controlling Authorities should ensure that the prices

charged and reimbursed are in accordance with the Drugs Price
Control Order issued from time to time, i.e., as indicated in the
labels, cartons, etc.
(xv) The claim for reimbursement should be received within 6 months.

However, subject to certain conditions, the Departments/
Ministries may condone the delay beyond 6 months. Principles
enunciated should be strictly observed by the medical officers/
private doctors who have been authorized under the rules to act
as the AMA of Central Govt. employees and their families.
(xvi) It will be the duty of the controlling officers to examine that these
principles have been strictly adhered to before signing or
countersigning the medical claims. It will also be the duty of the
Govt. Servant to follow the instructions regarding
reimbursement of consultation fees and cost of Medicines, etc.;
(xvii) The countersignature of the Medical Officer in charge at the OPD

should be obtained on the cash vouchers, essentially certificate,
etc.,
(xviii) Claim should be preferred on prescribed form, certificate 'A' (i.e.

Essentially Certificate) is to be attached in the case of patients
491
who are not admitted to hospital for treatment. Certificate 'B' is
to be completed in the case of patients who are admitted to the
hospital for treatment. Both should be countersigned by the
hospital authorities.
B. INDOOR TREATMENT: All hospitals recognized by the State Govt.

for medical attendance and for treatment of their families should
automatically be regulated as included in the term Government Hospital
as defined in the relevant Medical Attendance Rules. When a Central
Govt. servant or a member of his family receives treatment in medical
institution in State he should be required to submit in support of his
claim for reimbursement of expenditure, a certificate from Medical
Supdt. of the institution concerned to the effect that the institution is
recognized by the State Govt. for the purpose of medical treatment of
State employees and/ or their families. The following points are looked
for, in the Medical Reimbursement claims:
(i) Ensure that medicines purchased from approved Pharmacy and
the same is admissible as per rules.
(ii) Doctor should be an AMA as per AMA list.
(iii) Claim should be supported with all the prescribed certificates.
(iv) Ensure that all cash vouchers are correct, proper and were
countersigned by the AMA (on each of them).
(v) Ensure that the Essentiality Certificate given by the AMA is
correctly filled in.
(vi) Ensure that AMA designation, qualification and Registration
number are correctly given.
(vii) If in-patient, ensure that all the charges claimed for different tests,
hospital accommodation etc., are as admissible under the ceilings
laid down.
(viii) Ensure that the claim is preferred within six months of completion
of treatment. Otherwise, the claim is treated as time – barred and
would require sanction of the Competent Authority to admit the
claim in audit.
492
5.11. BASIC DRILL FOR THE AUDIT OF MEDICAL
REIMBURSEMENT CLAIMS
(i) The Government servant is entitled to re-imbursement of
Medical expenses under the rules;
(ii) Medical attendance/treatment has been taken from the

Authorized Medical Attendant;
(iii) Treatment has been received in a Government/recognized/

empanelled hospital;
(iv) In case of medical attendance/treatment received in a Cantt.

Hospital, the individual is a resident of cantonment area where
no Government hospital exists;
(v) In case of treatment received in Armed Forces Hospital no Civil

Hospital exists in the station. In station where a Civil Hospital
exists the prescribed certificate regarding non-availability bed is
furnished from the Civil Hospital;
(vi) A separate claim has been preferred for each patient on

prescribed format duly completed in all respects, signed and
receipted by the Government servant and countersigned by the
Controlling Officer;
(vii) The bill is supported by the under-mentioned documents: -

a. Essentiality Certificate, in the prescribed form A or B as
the case may be duly completed and signed by the
b. Cash receipt in prescribed form (erstwhile Med. 96) in
respect of consultation and injection fees received by the
c. Cash memos for medicines purchased and hospital
receipts for amounts paid to a hospital duly verified by the
493
(viii) That the medicines for which re-imbursement is claimed have
not been declared 'Inadmissible' by the DGMS, New Delhi;
(ix) The consultation fees and injection fees are reimbursed

according to the schedule of rates prescribed by Government.
(x) The advance for treatment, if any, as noted in the Demand

Register is recovered;
(xi) The prior approval of the Chief Administrative Medical Officer

of the State is obtained when the patient is referred to a
specialist by the Authorized Medical Attendant unless the delay
involved entails danger to the health of the patient;
(xii) In case the Authorized Medical Attendant refers the patient for
speedy recovery to another Medical Officer (other than a
specialist) in the station the prescribed certificate from AMA is
attached and that such references are not indiscriminate;
(xiii) Treatment received at the residence of the patient is covered

under the rules and the prescribed certificate of the Authorized
Medical Attendant is attached;
(xiv) The disease for which treatment has been received comes
within the ambit of relevant rules;
(xv) Accommodation allotted in the hospital is according to the

status of the Government servant, and that diet, nursing and
other hospital charges claimed are admissible under the rules;
(xvi) Treatment for diseases like T.B., Polio, Cancer etc. is covered by
the special orders on the subject;
Note: Govt. servants having their Headquarters in Delhi or New Delhi who are
entitled to medical benefits under Contributory Heath Service Scheme are not
entitled to reimbursement of medical expenses.
(xvii) Application on prescribed format is required to be enclosed

along with the claim.
494
(xviii) Medicines purchased during the OPD treatment (only for
CGHS Beneficiary) are not reimbursable as the same are
required to be obtained from the concerned Wellness Centre.
(xix) Basic Pay in pay level of the beneficiary is required to be

shown in the application form separately.
(xx) As per CGHS rule test prescribed by the doctor is required to

be obtained within 30 days from the date of prescription.
(xxi) In case of non-emergency, treatment should be obtained from

private recognized Hospitals after proper referral from
Government Hospital/Wellness Centre.
(xxii) If treatment is obtained in emergent circumstances, Emergency

Certificate signed by the treating doctor and self-explanatory
application of the Govt. Servant should be enclosed.
(xxiii) Indoor treatment from the clinic of AMA is not reimbursable

even in emergent circumstances.
(xxiv) In case of death of Govt. Servant, affidavit of claimant and ‘No

Objection Certificate’ from other legal heirs should be obtained
on stamp paper.
(xxv) In case of indoor treatment, the following documents are

required to be attached.
a. Application Form in the prescribed format
b. Essentiality Certificate
c. Hospital Bill
d. Admission/Discharge Card
e. Refer Slip of Govt. Hospital/Wellness Centre
495
5.12. PAYMENT OF TRAVELLING, DAILY
ALLOWANCE & LTC CLAIMS
TA/DA & LTC claims, air passage/air freight claims, sea passage
claims of shipping companies in respect of Defence personnel & civilians
will be submitted online by the stakeholders and will be processed by
the system on Centralized Defence Travel System (DTS) portal of e-
ticketing platform. Sanction, calculation, processing and payment of
Travelling Allowance, Daily Allowance & LTC Claims will be carried
out by the DTS with the help of data already or concurrently fed into the
system.
While submitting/ raising the claim in the system, the

stakeholders would be required to feed the necessary data in
Centralized Defence Travel System (DTS). Original Copies of relevant
vouchers (where necessary) are also required to uploaded on the system
for post-audit at a later stage by the TA/DA Audit group of Systems
Wing of the concerned Service Centre. The responsibility of the audit
will be to verify correctness & authenticity of data fed into the system at
various stages.
496
5.13. GRIEVANCES RELATING TO TRAVELLING
ALLOWANCES CLAIMS
All grievances concerning above claims will be raised by the

stakeholders through the in-built utility in DTS and handled by the
concerned Service Centre in a time bound manner.
497
5.14. PROCESS FLOW FOR BOOKING FOR AIR
TICKETS IN DTS
498
5.15. WORK FLOW - ACCOUNTING, PAYMENT AND
SETTLEMENT IN DTS FOR THE PAO
499
5.16. TRAVELLING ALLOWANCE ON TOUR
5.16.1. General
TA on tour is from duty point / residence at headquarters to duty
point at the distant station and vice versa. It comprises of:
(i) Fare for journeys by rail / road / air / sea;
(ii) Road mileage for road journey otherwise than by bus;
(iii) DA for the entire period of absence from headquarters including
journey period.
5.16.2. Entitlements for Journeys on Tour or Training:

Pay Level in Pay Matrix Travel Entitlement
14 and above Business/Club Class by air or AC-I by train
12 and 13-A Economy Class by air or AC-I by train
6 to 11 Economy Class by air or AC-II by train
5 and below First Class/AC-III/AC Chair car by train
(i) In case of places not connected by rail, travel by AC bus for all
those entitled to travel by AC II Tier and above by train and by
Deluxe / Ordinary bus for others is allowed.
(ii) In case of road travel between places connected by rail, travel by
any means of public transport is allowed, provided the total fare
does not exceed the train fare by the entitled class.
(iii) All mileage points earned by Government employees on tickets
purchased for official travel shall be utilized by the concerned
department for other official travel by their officers. Any usage of
these mileage points for purposes of private travel by an officer
will attract departmental action. This is to ensure that the benefits
out of official travel, which is funded by the Government, should
accrue to the Government.
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(iv) In case of non-availability of seats in entitled class, Government
servants may travel in the class below their entitled class.
International Travel Entitlement:

Pay Level in Pay Matrix Travel Entitlement
17 and above First class
14 to 16 Business/Club class
13-A and below Economy Class
5.16.3. Mileage Allowance for Journeys by Road:
At places where specific rates have been prescribed:
Pay Level in Pay Matrix Entitlements
14 or above Actual fare by any type of public bus including

AC bus
OR
At prescribed rates of AC taxi when the

journey is actually performed by AC taxi
OR
At prescribed rates for autorickshaw for

journeys by auto rickshaw, own car, scooter,
motorcycle, moped, etc.
6 to 13-A Same as above with the exception that journey

by AC taxi will not be permissible
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Pay Level in Pay Matrix Entitlements
4 and 5 Actual fare by any type of public bus other

than AC bus
OR
At prescribed rates for auto rickshaw for

journeys by auto rickshaw, own car, scooter,
motorcycle, moped, etc.
3 and above Actual fare by ordinary public bus only
OR
At prescribed rates for auto rickshaw for

journeys by auto rickshaw, own scooter, motor
cycle, moped, etc.
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5.16.4. Other Conditions:
(i) Sharing of auto / taxi: For travel by shared taxi/auto, the

entitlement will be the actual share limited to half the mileage
otherwise admissible.
(ii) Journey by Tonga, etc.: Tonga, auto rickshaw, cycle rickshaw

and man-driven rickshaw are equated to journey by scooter/
motor cycle. For travel by a friend's scooter as a pillion rider, the
amount admissible will be half the prescribed rate or the actual
cost of propulsion, whichever is less.
(iii) Journey by road between places not connected by rail: May

travel by the entitled conveyance or public transport system at
their discretion. Mode of conveyance needs no approval from
higher authority. The entitlement will be the road mileage at the
rates indicated above.
(iv) Reservation charges: For seat / sleeper berth are reimbursable.
(v) Internet / e-ticketing charges: Reimbursable for the tickets

booked through the website of Indian Railways.
(vi) Conveyance charges for collecting tickets: Charges of public

transport is reimbursable for collecting air / rail tickets from
stations / booking offices, etc.
(vii) Agency Charges: Service charges levied by the Traveller's

Service Agents recognized by the Zonal Railways is reimbursable.
(viii) Cancellation charges: For official journeys cancelled in public

interest, cancellation and reservation charges are reimbursable
and are to be claimed in the normal T.A. Bill form.
(ix) Service Tax and Education Cess: Element of Service Tax,

Education Cess and other similar levies charged on travel by Air
/ Road / Rail / Steamer are reimbursable.
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(x) Levy of Facilitation Fee: The levy of Facilitation Fee by the
authorized travel agents is withdrawn with immediate effect. No
fee/service charges (by whatever nomenclature), which are not
included in the tariff charged by Air India / Airlines will be paid
to the authorized travel agents.
(xi) TA for Attendant / escort during tour / training: TA (only

Mileage Allowance) is allowed to the Attendant / escort for
accompanying a Government servant with disabilities during
travel while on tour / training, subject to conditions.
(xii) TA to Probationers on Training: The following rules govern the

claims of TA while on Foundation Training by Probationers:-
a. No TA is allowed for onward journey to Training Institute.
b. No TA is allowed for probationers who are taken to
outstation for training activity.
c. They have to pay boarding / lodging / transport charges
from their pocket.
d. No daily allowance is admissible.
e. One side TA only is allowed on completion of training to
report for duty.
(xiii) TA to employees participating in competitions/events in Music,
Dance and Drama: Participation by employees in events
conducted by CCSCSB or under its aegis will be treated as duty
and considered for travel entitlements for Journey on Tour.
(xiv) Participation in sports events and tournaments of National

international importance: Entitlement of TA to travel to a station
other than their headquarters for participating in any of the
events will be in accordance with the TA Rules applicable to
them.
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5.17. TRAVELLING ALLOWANCE FOR LOCAL
JOURNEYS
Local Journeys mean journeys on duty on any day beyond 8 km

from the duty point at Headquarters and within the limits of suburban
or other Municipalities, Notified Areas or Cantonments contiguous to
the Municipality / Corporation of the Town or City in which the duty
point is located. Journeys performed within the limits of an Urban
Agglomeration within which the employee's headquarter is located will
also be treated as 'local journeys'.
(i) TA for local journeys: Mileage allowance for the journeys

performed on all the days spent on temporary duty and in
addition 50% of the admissible DA. Option is available either to
claim reimbursement of conveyance hire charges under Delegation
of Financial Powers Rules or to claim normal TA as above.
(ii) TA for a local journey is admissible if the temporary place of duty

is beyond 8 km from the normal place of duty, irrespective of
whether the journey is performed from residence or from the
normal place of duty.
(iii) Local journeys should normally be performed in the same way as

journey to duty point, i.e., by bus, local trains or own conveyance.
Where travel by special means like taxi, scooter, etc., is considered
necessary, prior permission of superior authority is necessary. If
more than one official is deputed for duty at the same point, they
should, as far as possible, travel together by sharing the hire
charges of the taxi or scooter or other conveyance, if necessary, by
assembling at the normal duty point.
(iv) For journeys to temporary duty point within a distance of eight

kilometres from the residence, if performed by public conveyances,
such as bus, local trains, trams and ferries, fares paid will be
reimbursed. If such journeys are performed by taxi / autorickshaw
/ own car /scooter, no mileage allowance is admissible.
505
(v) The bus / rail fare / mileage allowance for local journeys should
be based on the actual distance travelled or the distance between
the normal duty point and temporary duty point, whichever is less.
(vi) If provided with conveyance free of charge, DA only will be

admissible.
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5.18. TRAVELLING ALLOWANCE ON TEMPORARY
TRANSFER
In all cases of transfers for short periods not exceeding 180 days
the journeys from headquarters to the station of deputation and back
will be treated as on tour and DA granted for the first 180 days only.
Joining time is not admissible. Only actual transit time as for tour
allowed.
If a transfer originally made for a period more than 180 days is

reduced to 180 days or less later, the TA claim originally allowed should
not be changed to the disadvantage of the official.
If a temporary transfer originally made for a period of 180 days or

less is later extended beyond 180 days, the TA already drawn shall be
adjusted in the transfer TA claim; but DA is admissible up to the date of
issue of the revised orders.
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5.19. TRAVELLING ALLOWANCE ON TRANSFER
5.19.1. General
Transfer means the movement of an employee from one
headquarter station in which he/she is employed to another such station,
either to take up the duties of a new post, or in consequence of a change
of his/her headquarters. TA admissible only if the transfer is in the
public interest and not at one's own request.
Posting to a place of choice on completion of full tenure may not

be normally termed as transfer on own request. Officials transferred
after completion of full tenure as prescribed from time to time to the
place of their choice will be entitled for TA and transit.
5.19.2. Transfer TA entitlement:

Transfer TA comprises of the following elements:
(i) Composite Transfer Grant equal to 80 per cent of last month's

Basic Pay; No other add-ons should be allowed in Basic Pay while
calculating CTG. (Not admissible if no change of residence is
involved even where the distance between the two stations is more
than 20 kms.) For transfer to and from the island territories of
Andaman, Nicobar and Lakshadweep, CTG may continue to be
paid at 100 per cent.
(ii) Travel entitlement for self and family for journey by

rail/steamer/ air; road mileage for journey by road between
places not connected by rail;
(iii) Cost of transportation of personal effects from residence to

residence; and
(iv) Cost of transportation of conveyance possessed by the employee.
While the grade of the Government servant is determined with

reference to the facts on the date of his transfer, the number of fares
admissible is to be determined with reference to the facts on the date of
508
journey. No travelling allowance is admissible for any member added to
the family after the date of transfer.
In addition to the above, the employee will be entitled for an

additional fare by the entitled class for self for both onward and return
journeys, if he/she has to leave his/her family behind due to non-
availability of Government accommodation at the new place of posting.
Officials who could not take family members along with him/her on
their second trip due to genuine reasons are also entitled to an
additional to and fro fare by the entitled class.
An employee whose family does not accompany him/her to the

new station on joining on transfer, has an option to claim for him/ her
either for the first journey undertaken to join the new post or for the
journey subsequently undertaken along with family members.
5.19.3. Transfer at the Same Station:
(i) No TA if no change of residence is involved.

(ii) If there is compulsory change of residence solely due to transfer:
a. Actual cost of conveyance for self and family limited to the
road mileage and actual cost of transportation of person
effects admissible subject to the prescribed limits and
b. Composite Transfer Grant equal to one-third of 80% of Basic
Pay
5.19.4. Transfer between two stations within a short distance

of not more than 20 km:
(i) No TA if no change of residence is involved

(ii) If change of residence is involved
a. Full Transfer TA will be allowed and
b. Composite transfer grant equal to one-third of 80% of Basic
Pay.
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5.19.5. When both husband and wife are transferred from one and
the same station to another same station:
When both husband and wife are transferred from one and the
same station to another same station within six months but after 60 days,
the spouse transferred earlier will gel full CTG while the spouse
transferred later will get 50% of composite transfer grant. However, if
both the transfers are ordered within 60 days, the second transfer grant
of 50% is not admissible.
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5.20. TRAVELLING ALLOWANCE ON RETIREMENT
5.20.1. General
When the retired employee settles down in a station other than the
last station of duty. Same as on transfer including lumpsum Composite
Transfer Grant. Travel by air is also admissible. The retired employee
and family may travel from the last headquarters to the declared Home
town, or to any other selected place of residence where he/ she wishes
to settle.
When the person settles down in the last station of duty but with
change of residence or at a place not exceeding 20 km.—
Self and family Actual cost of conveyance not exceeding the road mileage
allowance admissible for transfer.
Personal effects Actual cost of transportation not exceeding the amount

admissible for transfer.
Transportation of An allowance at the rates prescribed by the Director of

Conveyance Transport for journey by taxi / auto rickshaw, as the case
may be. Where the above allowance is claimed, no mileage
will be admissible for self If the family also travels by the
same conveyance they will also not be entitled to mileage
allowance.
Composite Transfer Amount equal to one-third of 80% of his/her last month's

Grant Basic Pay.
When the person settles down at the last station of duty itself or
within a distance of less than 20 kms, one-third of the CTG may be paid
subject to the condition that a change of residence is actually involved.
511
5.20.2. TA not admissible on resignation, dismissal, etc.:
The concession is admissible only to persons who retire on retiring

pension or on superannuation, invalid or compensation pension. It is not
admissible to employees who quit service by resignation or who may be
dismissed or removed from service. The concession is also not
admissible to persons who are compulsorily retired as a measure of
punishment.
5.20.3. Advances:
Advances may be sanctioned only when the journey performed

during leave preparatory to retirement. Advance will be limited the
amount to which the employee may be entitled under the rules, and will
be adjusted in full on submission of the TA Bill. No advance is
admissible when the journey is performed after retirement.
5.20.4. Admissibility of TA to persons re-employed in

Government service:
Pensioners re-employed to posts, where holding of a post under

the Central Government is a prerequisite for such re-employment or
where the Recruitment Rules of post to which the pensioner is re-
employed provides this as one of the qualifications, would be entitled to
TA subject to certain conditions.
512
5.21. TRAVELLING ALLOWANCE TO THE FAMILY
OF A DECEASED EMPLOYEE
Entitlements are same as for retirement subject to following

conditions:
(i) The family of an employee who dies in service may travel from the
last headquarters of the employee to the Home town, or to any
other selected place of residence where the family wishes to settle
down.
(ii) If at the time of the death of the employee any member of his /her
family happens to be at a station other than his/ her headquarters,
such member may travel from that station to the Home town or
selected place of residence. But the claim will be restricted to what
is admissible from the last headquarters to the Home town or
selected place of residence, as the case may be.
(iii) If any member of the employee's family proceeds from the last
headquarters to a place other than the selected place of residence,
the claim will be restricted to what is admissible from the last
headquarters to the selected place of residence.
(iv) The journey should be completed within one year after the date of
death.
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5.22. TIME-LIMIT FOR SUBMISSION OF
TRAVELLING ALLOWANCES CLAIMS
Time-limit for submission of claim for Travelling Allowance (TA)

has been changed from one year to sixty days succeeding the date of
completion of the journey.
The claim of a Government servant to Travelling Allowance/Daily

Allowance on Tour/Transfer/ Training/ Journey on Retirement, is
forfeited or deemed to have been relinquished if the claim for it is not
preferred within sixty days succeeding the date of completion of the
journey.
All time barred claims require the express sanction of the Govt. for
their admittance.
514
5.23. LEAVE TRAVEL CONCESSION (LTC)
5.23.1. Eligibility:
(i) Any employee with one year of continuous service on the date of
journey performed by him/his/her family is eligible. Government
servants whose spouses are working in Indian railways are not
eligible for LTC.
(ii) Period of unauthorized absence, declared under rules will be

treated as break in service for calculating the continuous period of
service, unless the break is condoned by the Competent Authority.
If the individual is under suspension, the concession is admissible
only to his/her family members.
5.23.2. Salient points:
a) Concession can be availed of for self and family separately on

different occasions, even if different calendar years of the same
block.
b) Family can travel in one or more groups, but each group should
complete its return journey within six months from the date of
its onward journey.
c) Circular tour tickets can be availed of in conjunction with the

concession.
d) Can be availed of during any leave including study leave,

casual leave and special casual leave
a. While of study leave, the entitlement will be as under:
b. Family staying with Government servant
c. From place of study to home town limited to admissibility

from headquarters to home town.
d. Family staying away from Government servant
515
e. Normal home town entitlement
e) Can be combined with transfer/ tour
f) Cannot be availed of during Closed Holidays only, without taking

any leave.
g) Cannot be availed during Child Care Leave. – Rule 7, GID (16-A)
h) Some members of family may avail the concession to home town

while others may avail the same for anywhere in India in the same
two-year block.
5.23.3. Carry forward:
Concession for one block can be carried forward to the first year of
the next bock year i.e. the onward journey for 2022-2023 blocks can be
performed up to 31.12.2024. Employees entitled to LTC home town for
self alone every year, cannot carry forward the concession. Carry
forward facility is not available for new recruits.
5.23.4. New recruits:
Fresh recruits to Central Government are allowed to travel to their

home town along with their families on three occasions in a block of four
years and to any place in India on the fourth occasion. This facility is
available to the employees only for the first two blocks of four years
applicable after joining the government for the first time. The block of 4
years will apply with reference to the initial date of joining the
Government even though the employee changes the job within
Government subsequently. The existing blocks will remain the same but
the entitlement of the new recruit will be different in the first eight years
of service.
516
5.24. TRAVELLING ALLOWANCE ENTITLEMENTS FOR
LTC
5.24.1. Journey by Air/Rail/ Steamer – same as on tour/ transfer
(i) Entitled officers and their families may travel by Air. The
reimbursement of the expenses on air travel has to be restricted to
the cost of travel by economy class irrespective of entitlement.
(ii) Air journey by non-entitled officers (both for national and private
airlines) between places connected by train is allowed.
Reimbursement would be restricted to the fare of the entitled class
by train subject to conditions prescribed. If full air fare has been
paid in respect of children/ senior citizen full train fare is
admissible.
5.24.2. Special relaxation
(i) Government servants serving in Ladakh Regions, his/ her spouse

and two dependent children (up to 18 years for boys and 24 years
for girls) air travel is admissible between Leh and Srinagar/
Jammu/ Chandigarh during winter season.
(ii) As per relaxation, Government employees can travel by Air to

North East Region (NER), Jammu and Kashmir and Andaman &
Nicobar Islands (A&N) by converting one block of their home
town LTC. Entitled officers can travel by air from their
Headquarters in Economy class. Non entitled employees can travel
by air in economy class in only from Delhi and Amritsar to any
place in Jammu and Kashmir. Journey from the place of posting to
Delhi/ Amritsar is as per their entitlement.
(iii) Air ticket should be purchased directly from Airlines booking

counters or website of airlines or through authorized travel agents
viz., M/s Balmer Lawrie and company, M/s Ashok travels and
tours and IRCTC.
517
5.24.3. Journey by road:
(i) Entitlement will be the same as for tour/ transfer. Reimbursement

admissible only in respect of journeys performed in vehicle
operated by the Government or any Corporation in the public
sector run by the Central or State Government or a local body.
(ii) Head of department can allow the use of own car/hired taxi on
account of physical handicap/ disability of the Government
servant or his/ her dependent family members subject to the
conditions.
5.24.4. By longer route in same/ different modes of conveyance:
When journey is performed by longer route (not the cheapest) in

two different classes of rail accommodation, the entitled class rate will
be admissible for the corresponding proportion of the shorter/cheapest
route and the lower class rate for the remaining mileage by such route.
Where journey is performed by a longer route in different modes of
transport, reimbursement will be made proportionately in respect of
journey by rail and for the remaining shortest distance, as per
entitlement by rail or the actual fare paid for journey by road, whichever
is less. The claim has to be worked out on proportional basis to each/
actual mode of journey/ distance covered with reference to the distance
by the shortest route.
5.24.5. Reimbursement:
Fares for journeys between duty station and home town both ways
will be reimbursed by Government in full. If the employee and family
reside away from the duty station, fares for journeys between place of
residence and home town both ways restricted to that from duty station
to home town and back will be reimbursed in full. Charges incurred for
booking of rail tickets through internet/ e-ticketing through the website
518
of Indian railways are reimbursable. GST and other similar levies
charged on travel by Air/ Road/ Rail/ Steamer are also reimbursable.
5.24.6. Advances:
(i) Up to 90% of the fare can be taken. Advance admissible for both
onward and return journeys if leave taken by the official or the
anticipated absence of members of family does not exceed 90 days.
Otherwise, advance may be drawn for the outward journey only.
(ii) The official should furnish railway ticket numbers, PNR No., etc.
to the Competent Authority within 10 days of drawal of the
advance.
(iii) Advances can be drawn separately for self and family.
5.24.7. Adjustment of Claims:
(a) The claim should be submitted within one month from the date of
return journey when advance is taken. If not, outstanding advance
will be recovered in one lump sum and the claim will be treated as
one where no advance is sanctioned. Further penal interest at 2%
over GPF interest on the entire advance from the date of drawal to
the date of recovery will be charged.
(b) When claim submitted within stipulated time but unutilized

portion of advance not refunded, interest is chargeable on that
amount from the date of drawal to the date of recovery.
(c) When a part of the advance becomes excess drawal due to genuine
reasons beyond the control of the servant, the administrative
authority may, if satisfied exempt charging interest.
(d) When no advance is taken, claim should be submitted within three

months from the completion of return journey, otherwise the claim
will be forfeited.
519
(e) Ministry/ department with the concurrence of Financial Advisor
can relax the time limit subject to conditions.
520
5.25. LTC to Home town:
a. Admissible to all employees irrespective of distance involved.
b. Home town once declared is treated as final. In exceptional

circumstances, the head of the department may authorize a change,
only once during the entire service.
c. Admissible once in a block of two calendar years. The blocks are

2022-23 & 2024-25 and so on.
d. Any employee (including unmarried) having his family at his

home town can avail of this concession for himself alone every
year instead of having it for both self and family once in two years.
521
5.26. LTC to any place in India:
a. This concession is admissible in lieu of one of the two journeys to

home town in a block of four years. The current block is 2022-2025.
The last date for commencement of the outward journey is
31.12.2026 including the grace period of one year.
b. Available for travel to any place in India-mainland or overseas-

including employee’s home town
c. Officials availing LTC to home town for self alone once every year
are not entitled to LTC to anywhere in India.
d. Claims will be limited to the amount admissible from the

Government headquarters to the declared place of visit.
e. Members of family can visit either the same place as that visited by
the Government servant or different place.
f. Members of family can travel in one or more batches as the case

may be. Each batch should complete the return journey within the
six months of its onward journey.
g. Members of the family can travel either in the same calendar year
or in different years in respect of the same block.
h. The intended place of visit should be declared by the official to the

controlling authority in advance.
i. Any change in the declared place of visit should be intimated to

the controlling authority before the commencement of the outward
journey. If, however, it is that the request could not be made for
reasons beyond the control of the official, change of destination
can be admitted by the heads of department/administrative
ministry.
522
5.27. LTC for Escort:
LTC is admissible to an escort accompanying a handicapped Govt.

servant proceeding on LTC journey provided that:
a. The nature of physical disability is such as to necessitate an escort.
b. The physically handicapped employee does not have an adult

family member.
c. Any other employee entitled to LTC does not accompany the

physically handicapped employee on the journey,
d. Prior approval of head of department is obtained on each occasion.
e. Concession if any allowed by railways/ bus services should be

availed.
523
5.28. Misuse of LTC:
Disciplinary action will be taken and during its pendency-
a. The disputed claim will be withheld
b. Further LTC facility will not be allowed.
When disciplinary proceedings are over-
A. If found not guilty-
a. The withheld claim will be admitted.
b. Any LTC facility fell due but not allowed will be allowed as
additional set (s) in the future blocks of years irrespective of the
provisions relating to lapsing of un availed LTC. Such additional
Set(s) also should be availed before the date of superannuation.
B. If found guilty-
a. The withheld claim will be disallowed
b. Next two sets- one to home town and one to any place in India will
be forfeited and
c. In case of grave misconduct, the competent authority may

disallow even more than two sets.
d. In addition to any penalty under disciplinary rules
524
5.29. Encashment of EL during LTC
a. It will be admissible subject to the following conditions:
b. Limited to 10 days of earned leave on one occasion without

linkage to the number of days and nature of leave availed and 60
days in the entire career
c. Will not be deducted while computing the maximum admissible

for encashment at the time of quitting service.
d. The balance of credit should not be less than 30 days after

deducting the total leave. If any, availed plus leave for which
encashment was availed.
e. When both husband and wife are Govt. servants, encashment of

leave will continue to be available to both, subject to maximum
limit of 60 days to each of them.
f. The Govt. servants who are availing LTC facilities provided to

their spouse employed in PSUs/ Corporation/ Autonomous
bodies, etc. and who are availing privilege passes / concession
tickets provided to their spouses employed in Indian Railways/
National Airlines are also entitled to leave encashment subject to
the conditions.
525
5.30. SANCTION & DISBURSEMENT OF
PENSIONARY AWARDS
Audit and sanction of pension in respect of Defence personnel &
civilians will be carried out in the following manner on the system
[System for Pension Administration (RAKSHA) {SPARSH}] based on
some inputs related to service and pay in respect of the prospective
retiree:
Element of Nature of To be carried out Activities

Jobs action
Part II Office Initiation Executives Uploading and Verification of
Order Verification Part II Office Orders notifying
superannuation
Service Initiation Executives Uploading and Verification of
service details of the prospective
Verification retiree on the system
Pay Initiation
Pay & pension Uploading and Verification of
wing of Concerned pay details of the prospective
Verification
Service Centre retiree on the system
Audit Initiation Pension Audit Audit of Services and Pay of the
group of Systems prospective retiree on the
Verification wing of Concerned system
Service Centre
Sanction Sanction of Pension Audit Sanction of Pension and Issue of
Pension group of Systems PPO
wing of Concerned
Service Centre
Disbursement Payment of Pay & pension Monthly disbursement (DBT)
Pension wing of Concerned through payment gateway of
Service Centre. accredited bank
Though most of the tasks and operations related to sanction and

disbursement of pensionary awards will be taken care of by the systems,
there are some areas of potential risk, where risk-based audit is required
to be done to eliminate any scope of errors. Basically, risk-based audit
526
will be carried on the inputs, in respect of Part-II Orders, certificates and
pay fed & uploaded into the system. This will be carried out during
initiation and verification of ‘Audit’ by the Pension Audit group of
Systems wing of Concerned Service Centre.
527
5.31. PENSIONARY/ TERMINAL BENEFITS:
CIVILIANS PENSION
Pension is applicable to the Government Servant who joined

service before 01.01.2004. The minimum eligibility period for receipt of
pension is 10 years. A Central Government servant retiring in
accordance with the Pension Rules is entitled to receive pension on
completion of at least 10 years of qualifying service.
In the case of Family Pension, the widow is eligible to receive

family pension on death of her spouse after completion of one year of
continuous service or even before completion of one year if the
Government servant had been examined by the appropriate Medical
Authority and declared fit for Government service.
Pension is calculated with reference to emoluments (i.e. last basic

pay) or average emoluments (i.e. average of the basic pay drawn during
the last 10 months of the service) whichever is more beneficial. The
amount of pension is 50% of the emoluments or average emoluments
whichever is beneficial.
Minimum pension presently is Rs. 9000/- per month. Maximum

limit on pension is 50% of the highest pay in the Government of India
(presently Rs. 1,25,000/-) per month. Pension is payable up to and
including the date of death.
528
5.32. SUPERANNUATION PENSION
A superannuation pension shall be granted to a Government

servant who is retired on his/ her attaining the age of superannuation.
529
5.33. RETIRING PENSION
A retiring pension shall be granted to a Government servant who

retires, or is retired before attaining the age of superannuation or to a
Government servant who, on being declared surplus opts for voluntary
retirement.
530
5.34. VOLUNTARY RETIREMENT PENSION
Any Government servant can apply for voluntary retirement, three

months in advance, only after the completion of twenty years of his/ her
qualifying service, provided there is no vigilance or Departmental
Enquiry pending /initiated against him/her.
531
5.35. INVALID PENSION
Invalid Pension may be granted if a Government servant applies

for retirement from the service on account of any bodily or mental
infirmity which permanently incapacitates him/her for the service. The
request for invalid pension has to be supported by medical report from
the competent medical board.
532
5.36. COMPENSATION PENSION
If a Government servant is selected for discharge owing to the

abolition of a permanent post, he/ she shall, unless he/ she is appointed
to another post the conditions of which are deemed by the authority
competent to discharge him/her to be at least equal to those of his/ her
own, have the option:
i. Of taking compensation pension to which, he/ she may be entitled

for the service he/ she had rendered, or
ii. Of accepting another appointment on such pay as may be offered

and continuing to count his/ her previous service for pension.
533
5.37. COMPULSORY RETIREMENT PENSION
A Government servant compulsorily retired from service as a

penalty may be granted, by the authority competent to impose such
penalty, pension or gratuity, or both at a rate not less than two-thirds
and not more than full compensation pension or gratuity, or both
admissible to him/ her on the date of his/ her compulsory retirement.
The pension granted or allowed shall not be less than Rs. 9,000/- p.m.
534
5.38. COMPASSIONATE ALLOWANCE
A Government servant who is dismissed or removed from service

shall forfeit his/ her pension and gratuity provided that the authority
competent to dismiss or remove him/ her from service may, if the case is
deserving of special consideration, sanction a compassionate allowance
not exceeding two-thirds of pension or gratuity or both which would
have been admissible to him/ her if he/ she had retired on
compensation pension. A compassionate allowance sanctioned under
the above provision shall not be less than Rs. 9,000/- p.m.
535
5.39. EXTRAORDINARY PENSION
Extraordinary Pension in the form of Disability Pension/

Extraordinary Family Pension may be paid to the Government servant/
his/ her family if disablement/death (or the aggravation of
disablement/death) of the Government servant, during his/ her service,
are attributed to the Government service. For the award of
Extraordinary Pension, there should thus be a casual connection
between disablement and Government service; and death and
Government service, for attributability or aggravation to be conceded.
The quantum of the pension, however, depends upon the category of the
disablement/death.
Note: Government servants appointed on or after 1.1.2004 are not covered by

the CCS (Extraordinary Pension) Rules.
536
5.40. FAMILY PENSION
Family pension is granted to the widow / widower and where

there is no widow / widower to the children of a Government servant
who entered in service in a pensionable establishment on or after
01/01/1964 but on or before 31.12.2003 or having entered service prior
to that date came to be governed by the provisions of the Family Pension
Scheme for Central Government Employees, 1964 if such a Government
servant-
(i) Dies while in service on or after 01/01/1964; or
(ii) Retired/died before 31/12/1963; or
(iii) Retires on or after 01/01/1964 and at the time of his/ her death was
in receipt of pension.
Family pension is payable to the children up to 25 years of their

age, or marriage or till they start earning a monthly income exceeding
Rs.9,000/- + DA admissible from time to time p.m. whichever is earlier.
235. Widow daughter / divorced daughter/ unmarried daughter of

deceased Government servant is also entitled for the family pension till
her remarriage or up to life time or starts earning a monthly income
exceeding Rs.9,000/- + DA admissible from time to time p.m. whichever
is earlier.
Family pension is payable to wholly dependent parents of the

deceased Government servants w.e.f. 01/01/98, when he/she is not
survived by a widow or eligible child. The family pension will be
payable to mother first, failing which to the father.
If the son or daughter, of a Government servant is suffering from

any disorder or disability of mind or is physically crippled or disabled
so as to render him or her unable to earn a living even after attaining the
age of 25 years, the family pension can continue to be paid for life time
subject to conditions.
537
5.41. COMMUTATION OF PENSION
A Central Government servant has an option to commute a
portion of pension, not exceeding 40% of it, into a lump sum payment.
No medical examination is required if the option is exercised within one
year of retirement. If the option is exercised after expiry of one year,
he/she will have to under-go medical examination by the specified
competent authority.
Lump sum payable is calculated with reference to the

Commutation Table. The monthly pension will stand reduced by the
portion commuted and the commuted portion will be restored on the
expiry of 15 years from the date of receipt of the commuted value of
pension. Dearness Relief, however, will continue to be calculated on the
basis of the original pension (i.e. without reduction of commuted
portion).
The formula for arriving for commuted value of Pension (CVP) is

CVP = 40 % (X) Commutation factor* (X)12.
The commutation factor will be with reference to age next birthday

on the date on which commutation becomes absolute as per the New
Table annexed to the CCS (Commutation of Pension) Rules, 1981.
538
5.42. RETIREMENT GRATUITY
Retirement gratuity is payable to the retiring Government servant.

A minimum of 5 years' qualifying service and eligibility to receive
service gratuity/pension is essential to get this one-time lump sum
benefit. Retirement gratuity is calculated @ 1/4th of a month’s Basic Pay
plus Dearness Allowance drawn on the date of retirement for each
completed six monthly period of qualifying service. There is no
minimum limit for the amount of gratuity. The retirement gratuity
payable for qualifying service of 33 years or more is 16½ times the Basic
Pay plus DA, subject to a maximum of Rs. 20 lakhs.
539
5.43. DEATH GRATUITY
This is a one-time lump sum benefit payable to the nominee or

family member of a Government servant dying in harness. There is no
stipulation in regard to any minimum length of service rendered by the
deceased employee. Entitlement of death gratuity is regulated as under:
Qualifying Service Rate

Less than one year 2 times of basic pay
One year or more but less than 5 years 6 times of basic pay
5 years or more but less than 11 years 12 times of basic pay
11 years or more but less than 20 years 20 times of basic pay
20 years or more Half of emoluments for every
completed 6 monthly period
of qualifying service subject
to a maximum of 33 times of
emoluments.
Maximum amount of Death Gratuity admissible is Rs. 20 lakhs w.e.f.

1.1.2016
540
5.44. SERVICE GRATUITY
A retiring Government servant will be entitled to receive service

gratuity (and not pension) if total qualifying service is less than 10 years.
Admissible amount is half month’s basic pay last drawn plus DA for
each completed 6 monthly period of qualifying service. This one-time
lump sum payment is distinct from retirement gratuity and is paid over
and above the retirement gratuity.
Issue of No Demand Certificate:
Dues owed by the retiring employees on account of Licence Fee for

Government accommodation, advances, over payment of pay and
allowances are required to be assessed by the Head of Office and
intimated to the Accounts Officer two months in advance of the date of
retirement so that these are recovered from retirement gratuity before
payment. For this purpose the Licence Fee for those in occupation of
Government accommodation is taken into account up to the end of the
permissible period for which accommodation can be retained after
retirement under the Rules on normal rent. The recovery of Licence Fee
beyond that period is the responsibility of the Directorate of Estates. If,
for any reason final dues cannot be assessed on time, then 10% of
gratuity is withheld from gratuity on the basis of a commutation from
the Directorate of Estates in this regard.
541
5.45. GENERAL PROVIDENT FUND AND
INCENTIVES
As per General Provident fund (Central Services) Rules, 1960 all

temporary Government servants after a continuous service of one year,
all re-employed pensioners (Other than those eligible for admission to
the Contributory Provident Fund) and all permanent Government
servants are eligible to subscribe to the Fund. However, these rules are
not applicable to any of the Government Servants who join service on or
after 1.1.2004.
A subscriber, at the time of joining the fund is required to make a

nomination, in the prescribed form, conferring on one or more persons
the right to receive the amount that may stand to his credit in the fund in
the event of his/ her death, before that amount has become payable or
having become payable has not been paid. A subscriber shall subscribe
monthly to the Fund except during the period when he/ she is under
suspension. Subscriptions to the Provident Fund are stopped 3 months
prior to the date of superannuation.
Rates of subscription shall not be less than 6% of subscriber’s

emoluments and are not more than his/ her emoluments. Rate of
interest varies according to notifications of the Government issued from
time to time. The rules provide for drawal advances/ withdrawals from
the fund for specific purposes.
The conditions for withdrawal from the fund have been liberalized
and now no documentary proof is required to be furnished by the
subscriber for GPF withdrawal. On retirement of a subscriber,
instructions have been issued for immediate payment of final balance on
retirement. No application is required to be submitted by the subscriber
for final payment from the fund.
542
5.46. DEPOSIT LINKED INSURANCE SCHEME
Under the GPF Rules, on the death of subscriber, the person

entitled to receive the amount standing to the credit of the subscriber
shall be paid an additional amount equal to the average balance in the
account during the 3 years immediately preceding the death of the
subscriber subject to certain conditions provided in the relevant Rule.
The additional amount payable under that Rule shall not exceed
Rs. 60,000/-. To get this benefit, the subscriber should have put in at
least 5 years service at the time of his/her death.
543
5.47. CONTRIBUTORY PROVIDENT FUND
The Contributory Provident Fund Rules (India), 1962 are

applicable to every non-pensionable servant of the Government
belonging to any of the services under the control of the President. A
subscriber, at the time of joining the Fund is required to make a
nomination in the prescribed Form conferring on one or more persons
the right to receive the amount that may stand to his/ her credit in the
Fund in the event of his/ her death, before that amount has become
payable or having become payable has not been paid.
A subscriber shall subscribe monthly to the Fund when on duty or

Foreign Service but not during the period of suspension. Rates of
subscription shall not be less than 10% of the emoluments and not more
than his/ her emoluments. The employer's contribution at that
percentage prescribed by the Government will be credited to the
subscriber's account and this is 10%. The Rules provide for drawal of
advances/ withdrawals from the CPF for specific purposes. As in GPF
Rules, the CPF Rules also provide for Deposit Linked Insurance Scheme.
544
5.48. LEAVE ENCASHMENT
Encashment of leave is a benefit granted under the CCS (Leave)

Rules and is not a pensionary benefit. Encashment of Earned Leave/Half
Pay Leave standing at the credit of the retiring Government servant is
admissible on the date of retirement subject to a maximum of 300 days.
545
5.49. CENTRAL GOVERNMENT EMPLOYEES GROUP
INSURANCE SCHEME (CGEGIS)
A portion of monthly contributions paid while in service is

credited in a Saving Fund, on which interest accrues. A Government
servant while entering service has to apply in Form No. 4 of the above
Scheme to the Head of Office, who shall issue a sanction for the payment
of subscriber's accumulation in the Savings Fund segment together with
interest and arrange for its disbursement, soon after retirement.
Payments under this Scheme are made in accordance with the

Table of Benefit (as issued by Department of Expenditure) which takes
in to account interest up to the date of cessation of service. Insurance
cover benefit under this Scheme is available to the family in the event of
death of the subscriber.
546
5.50. PENSIONARY/ TERMINAL BENEFITS: DEFENCE
PERSONNEL
Following types of pensionary awards are applicable to Defence
Personnel:
(i) Retiring Pension/Service pension/Superannuation Pension
(ii) Retiring gratuity/Service gratuity/terminal gratuity
(iii) Special pension/Special gratuity
(iv) Invalid pension/Invalid gratuity;
(v) Retirement gratuity/Death gratuity.
(vi) Disability pension/War injury pension
(vii) Ordinary family pension /Special family pension/ liberalized

family pension
(viii) Dependent pension /Second life award of Special family pension

/ Liberalized family pension
(ix) Family gratuity.
547
5.51. RETIRING PENSION FOR
COMMISSIONED OFFICERS
Retiring pension shall be calculated at 50% of emoluments last

drawn or average of reckonable emoluments drawn during last 10
months, whichever is more beneficial subject to maximum limit of
pension. The minimum period of actual qualifying service required for
earning a retiring pension shall be 20 years (15 years in the case of late
entrants).
As regards EC/SSC, serving JCOs/ORs granted EC/SSC will be

eligible for retiring pension after 12 years of qualifying service (without
weightage).
548
5.52. RETIRING PENSION FOR JCOs/ORs &
EQUIVALENTS
Service pension shall be calculated at 50% emoluments last drawn

or average of reckonable emoluments drawn during last 10 months,
whichever is more favourable. The minimum period of qualifying
service rendered for earning pension is 15 years (20 years in case of NC
(E).
549
5.53. INVALID PENSION
When a Defence Personnel is invalided out of service with a

disability neither attributable to nor aggravated by military service he
will be entitled to invalided pension if the service actually rendered is 10
years or more (Without weightage) at the rate of amount equal to
Service Element of disability pension.
550
5.54. COMMUTATION OF PENSION: DEFENCE
PENSIONERS
Service personnel in receipt of or entitled to any of the following
kind of pension for life may be allowed to commute a portion of his
pension
(i) Retiring pension/Service element of disability/war-injury

element;
(ii) Service pension/Service element of disability/war-injury element;
(iii) Special pension;
(iv) Disability pension or war injury pension or liberalized disability

pension consisting of disability/war-injury element for life;
(v) Invalid pension.
Note: Where the disability element is initially assessed as temporary in nature

and subsequently made permanent, commutation of pension shall be allowed
with reference to service element of disability pension only.
Commutation of pension to become absolute
The commutation of pension shall become absolute-
(i) In case where one applies before retirement/ discharge on the date
following the date of retirement/discharge.
(ii) In case where one applies within one year after release /retirement
/discharge / invalidment on the date on which the application is
received by the PCDA(Pensions), and
(iii) In case where one applies after one year after release/ retirement/
discharge/ invalidment and where Medical Board for
Commutation is held—on the date on which the medical board
signs the medical certificate.
551
Note: Government shall have no liability for the payment of commuted value of
pension if the individual dies before commutation of pension become absolute.
Calculation of commuted value of pension :
262. Commuted value of pension for Defence Pensioners is calculated

w.r.t under mentioned provisions:
(i) The formula for calculation of capitalized value of commuted

portion of pension shall be:
Amount of pension = purchase value X 12 X Age on next
commutable of commutation birthday
(ii) The purchase value of commutation shall be as given in the

commutation table prescribed by the Government from time to
time.
(iii) The age of the individual shall be taken as being the age he shall
attain on the next birthday following the date on which the
commutation shall become absolute subject to such addition of
year(s) of age in the case of impaired life, as may be recommended
by the medical authority or Release/Invaliding Medical Board or
Medical Board for Commutation.
(iv) In case the value specified in Table is modified at any time before
the commutation becomes absolute, the commuted value shall be
calculated and paid in accordance with the modified table.
(v) Provided that where the commuted values calculated with

reference to the table as modified, is less favourable than the value
determined with reference to the table before it was so modified,
the Principal Controller of Defence Accounts (Pensions) shall
inform the individual of the revised value and communicate to
him the provisions
552
5.55. PENSIONARY BENEFITS ON
DEATH/DISABILITY IN ATTRIBUTABLE/ AGGRAVATED
CASES
For determining the pensionary benefits on death or disability

which is attributable to or aggravated by Military service under different
circumstance, the cases shall be broadly categorized in the following
paragraphs.
CATEGORY A:
Death or disability due to natural causes neither attributable to nor

aggravated by military service as determined by the Competent Medical
Authorities. Examples would be ailments of nature of constitutional
diseases as assessed by medical authorities, chronic ailments like heart
and renal diseases, prolonged illness, accidents while not on duty.
Explanation: The cases of death or disability due to natural causes falling

under Category ‘A’ entitle ordinary family pension or invalid pension or
invalid gratuity as the case may be.
CATEGORY B:
Death or disability due to causes which are accepted as

attributable to or aggravated by military service as determined by the
Competent Medical Authorities. Disease contracted because of
continued exposure to hostile work environments subject to extreme
weather conditions or occupational hazards resulting in death or
disability would be examples.
CATEGORY C:
Death or disability due to accidents in the performance of duties

such as:
(i) Accidents while travelling on duty in Government vehicles or
public/private transport.
(ii) Accidents during air journeys
553
(iii) Mishaps at sea while on duty.
(iv) Electrocution while on duty, etc.
(v) Accidents during participation in organized sports

events/adventure activities/expeditions/training.
Explanation: Invalidment case falling under Category B and Category C due

to disease contracted or injury sustained or cause of death if accepted by medical
authority and/ or competent authority attributable to or aggravated by Military
service the individual may be granted disability pension or special family
pension as the case may be.
CATEGORY D:
Death or disability arising as result of:-
(i) Acts of violence/ attack by terrorists, anti-social elements, etc.

whether on duty other than operational duty or even when not on
duty.
(ii) Bomb blasts in public places or transport, indiscriminate shooting

incidents in public, etc.
(iii) While employed in aid of civil power and also while dealing with
natural calamities.
(iv) Unintentional killing by own troops during the course of duty in

an operational area.
(v) Electrocution / attacks by wild animals and snake bite/drowning

during course of action in counterinsurgency/war.
(vi) Accidental death/injury sustained due to natural calamities such

as flood, avalanches, landslides, cyclone, fire and lightening or
drowning in river while performing operational duties /
movements in action against enemy forces and armed hostilities in
operational area to include deployment on international border of
line of control.
554
Explanation: Cases falling under Category D entitle liberalized disability
pension or liberalized family pension as the case may be.
CATEGORY E:
Death or disability arising as a result of:-
(i) Enemy action in international war
(ii) Action during deployment with a peace keeping mission abroad
(iii) Border skirmishes
(iv) During laying or clearance of mines including enemy mines as also

mine sweeping operations.
(v) On account of accidental explosions of mines while laying

operationally oriented mine field or lifting or negotiating mine
field laid by the enemy or own forces in operational areas near
international borders or the line of control.
(vi) War like situations, including cases which are attributable

to/aggravated by:
(a) Extremist acts, exploding mines etc, while on way to an

operational area.
(b) Kidnapping by extremists while on operational duty
(c) Battle inoculation training exercises or demonstration with live

Ammunition
Note: Battle inoculation training exercises will cover the following categories:-
(1) Flying operation involved in rehearsing of war plans and
implementation of OP instructions inclusive of international exercises.
(2) All combat and Tactical sorties in preparation of war.
(3) Valley flying and missions involving operating at Ultra Low Levels.
(4) All operational missions undertaken during peace like special operations,
555
Live ORP, Recce, Elint, Survey and induction trials of new weapons.
(5) Missions undertaken in support of troops and security forces deployed
in forward areas.
(6) Flying missions involving landings on the ALGs.
(vii) An act of violence/attack by extremists, anti-social elements, etc.

while on operational duty.
(viii) Action against extremists, antisocial elements etc. death/disability

while employed in the aid of civil power in quelling agitation, riots
or revolt by demonstrators shall be covered under this category.
(ix) Poisoning of water by enemy agents while deployed in operational

area inactive hostilities.
(x) Operations specially notified by the Government from time to time.
Explanation: Death or injury sustained in the circumstances falling under

Category E entitles liberalized family pension or war-injury pension as the case
may be.
556
5.56. DISABILITY PENSION
5.56.1. DISABILITY ELEMENT FOR DISABILITY AT THE

TIME OF DISCHARGE/RETIREMENT
An individual released/ retired/ discharged on completion of

term of engagement or on completion of service limits or on attaining
the prescribed age (irrespective of his period of engagement), if found
suffering from a disability attributable to or aggravated by military
service and so recorded by Release Medical Board, may be granted
disability element in addition to service pension or service gratuity from
the date of retirement/discharge, if the accepted degree of disability is
assessed at 20 percent or more.
The disability element for 100% disability for the various ranks
shall be 30 percent of emoluments last drawn for 100 percent disability.
For disability less than 100 percent it shall be reduced proportionally.
For disabilities less than 100% but not less than 20%, the above
rates shall be proportionately reduced. Broadband benefit shall also be
applicable for computing disability element w.e.f. 01.01.2016.
Compensation in lieu of disability element:
In case of officer who is found to have disability which is accepted

by the competent authority and assessed 20% or more for life but the
individual remains in service, he shall be paid compensation in lump-
sum equal to the capitalized value of disability element.
557
5.56.2. DISABILITY PENSION ON INVALIDMENT
It is payable in cases where the cause of disability is accepted as

attributable to or aggravated by Army Service. The amount of disability
pension consisting of service element and disability element shall be as
follows: -
(i) Service element– The amount of service element which is payable

for life shall be equal to service pension. There shall be no
condition of minimum qualifying service having been actually
rendered, for earning this element, if otherwise, admissible
(ii) Disability element– The rate of disability element for 100 percent
disability for the various ranks shall be 30 percent of emoluments
last drawn for 100 percentage disability. For disability less than
100 percent it shall be reduced proportionately.
In case of disability pension where permanent disability is not less

than 60percent, the disability pension (i.e. total of service element and
disability element) shall not be less than 60 percent of the reckonable
emoluments.
The extent of disability or functional capacity shall be determined

in the following manner for the purpose of computing disability
element:
Percentage of disability element Percentage to be reckoned for

Computing disability element
Less than 50 50
Between 50 and 75 75
Between 76 and 100 100
558
5.57. WAR INJURY PENSION ON INVALIDMENT
(i) Where Service personnel is invalided from service on account of

disabilities sustained under circumstances mentioned in category
‘E’, he shall be entitled to war-injury pension as enumerated in this
Section.
(ii) Where service personnel is invalided from service on account of

disabilities sustained in the circumstances mentioned in category
D, he shall be entitled to liberalized disability pension under these
Regulations
War Injury Pension shall consist of service element and war-injury

element as follows:-
(i) Service Element: equal to retiring / service pension to which the

individual would have been entitled. There shall be no condition
of minimum qualifying service having been actually rendered for
earning this element, if otherwise admissible.
(ii) War Injury Element: These are:

a. Equal to reckonable emoluments last drawn for 100%
disablement. For lower Percentage of disablement, war
injury element shall be proportionately reduced.
b. The percentage of disability as accepted shall be reckoned in
the same manner as the case may be, for computing war-
injury element.
c. In the case of individual invalided out of service prior to
1.7.2009, the aggregate of service element and war-injury
element as admissible under clause (a) and (b) above shall
not exceed the emoluments last drawn by him. However,
this cap has been removed with effect from 01.07.2009.
559
5.58. WAR INJURY PENSION ON RETENTION IN
SERVICE
Service personnel who are retained in service despite the disability

due to war injury sustained under circumstances mentioned in category
‘E’ and retired/discharged subsequently, shall have an option to be
exercised within a period of 3months at the time of retention in service-
(i) To draw lump-sum compensation in lieu of war injury element,

foregoing war injury element at the time of subsequent retirement;
OR
(ii) To draw war injury element at the time of retirement in addition to

retiring/service pension or retiring/ service gratuity admissible on
retirement/discharge foregoing lump-sum compensation.
560
5.59. LUMP SUM COMPENSATION IN LIEU OF WAR
INJURY PENSION
In case Service personnel is found to have a disability which was

sustained under the circumstances mentioned in category ‘E’ which is
assessed at 20% or more for life but the individual is retained in service
despite such disability and opts for lump sum compensation, shall be
paid the lump sum compensation in lieu of war injury element. For the
purpose of calculation of lump-sum compensation in lieu of war injury
element for 100 percent disability for life, war injury element shall be 60
percent of reckonable emoluments last drawn.
For disability due to war injury of less than 100%, the rate shall be
proportionately reduced. The one-time compensation in lump sum in
lieu of war injury element shall be equal to the capitalized value of war
injury element for the accepted percentage of the disability at the
appropriate rate mentioned above. For this purpose, age next birthday
shall be reckoned with reference to the date of onset of disability with
loading to age, if any, recommended by the Disability Compensation
Medical Board. Once the compensation in lieu of war injury element due
to disability for life has been paid, there shall be no further entitlement
on account of such a disability at the time of retirement/discharge. This
is one time payment on account of compensation; no restoration of war-
injury element shall be permitted.
561
5.60. WAR INJURY ELEMENT ON SUBSEQUENT
RETIREMENT
Where Service personnel is retained in service despite war

injury/disability sustained under the circumstances mentioned in
category ‘E’ and does not opt for lump-sum compensation in lieu of war
injury, and retires/discharged, he shall be entitled to payment of war
injury element as in clauses (a) and (b) below in addition to
retiring/service pension as admissible in normal course of
retirement/discharge.
(i) War injury element on a monthly basis at 60 percent of reckonable

emoluments last drawn for 100 percent disability. For disability of
less than 100 percent, but not less than 20 percent, the above rate
shall be reduced proportionately. Provisions contained in as the
case may be, shall not be applicable for computing war-injury
element.
(ii) In the case of individuals retired prior to 1.7.2009, the aggregate of

service element and war-injury element as admissible under
clauses (a) and (b) above shall not exceed the emoluments last
drawn.
562
5.61. LIBERALIZED DISABILITY PENSION
Service personnel sustained disability under the circumstances

mentioned in category ‘D’ shall be entitled to Liberalized disability
pension on invalidment from service as under :-
(i) Service element shall be equal to retiring/service pension as

admissible as the case may be and in addition.
(ii) Liberalized disability at 30 percent of emoluments last drawn for

100 percent disability. For disability less than 100 percent, it shall
be reduced proportionately. However, the aggregate of
retiring/service pension and liberalized disability element shall
not be less than 80 percent of reckonable emoluments last drawn.
Explanation: Service personnel sustaining disability under the circumstances

mentioned in category ‘D’ shall not be treated as war disabled. Hence, they shall
not be entitled to any special concession/dispensation otherwise admissible to
war disabled.
563
5.62. LIBERALIZED DISABILITY ELEMENT /WAR
INJURY ELEMENT ON RETIREMENT/ DISCHARGE
Liberalized disability element on retirement/discharge from

service shall be at 30 percent of emoluments last drawn for 100 percent
disability. For disability less than 100 percent, it shall be reduced
proportionally. In addition retiring / service pension as admissible in
the case of normal retirement/ discharge shall be admissible.
564
5.63. CONSTANT ATTENDANCE ALLOWANCE
Constant attendance allowance at a uniform rate of Rs.6750/-per

month w.e.f 01.07.2017 shall be granted to Service personnel who is
awarded a disability pension for 100 per cent disablement, if in the
opinion of the Invaliding Medical Board or Review Medical Board he
needs the services of a constant attendant for at least a period of 3
months, and the necessity arises solely from the condition of the
accepted disability or disabilities.
(i) The allowance shall also be granted if the accepted degree of

disablement of service personnel is assessed at 100 percent, but a
reduced award is made.
(ii) The grant of allowance is subject to the condition that he actually

employs an attendant to look after him.
(iii) The allowance shall not be payable for any period during which
the pensioner is an inmate of a Government Institution or Hospital
or is gainfully employed.
565
5.64. GRATUITY
Following types of gratuity payments are applicable to Defence

Personnel:
(i) Service Gratuity
(ii) Retirement Gratuity
(iii) Death Gratuity
(iv) Residuary Gratuity
(v) Invalid Gratuity
566
5.65. SERVICE GRATUITY
Service Gratuity is in lieu of pension Minimum service is to earn

pension is 10 years. A Govt. Servant retiring on superannuation or
invalidment with less than 10 years Q.S. is entitled to service gratuity
equal to ½ months emoluments for every completed six monthly period
of qualifying service emoluments include Basic Pay, stagnation
increment and NPA, if any.
567
5.66. RETIREMENT GRATUITY
A Govt. servant who has completed five years Q.S. and has
become eligible for service gratuity or pension is entitled retirement
gratuity. The retirement gratuity shall be granted equal to one fourth of
emoluments last drawn for each completed six monthly period of
qualifying service subject to maximum of 16.5 times of the emoluments
but in no case shall exceeds Rs. 20.0 Lakhs. There is no ceiling on
reckonable emoluments for calculating gratuity.
568
5.67. DEATH GRATUITY
When death of Govt. Servant take place during service, death

gratuity is payable to the nominated member of the family or in its
absence to the family members.
S. No. Qualifying Service Death Gratuity

(i) Less than one year Two times of his emoluments
(ii) One year or more Six times of emoluments
but less than 5
years
(iii) 5 years or more but 12 times of emoluments
less than 11 years
(iv) 11 years or more 20 times of emoluments
but less than 20
years
(v) 20 years or more(i) Half of the emoluments for every
completed six monthly period of
qualifying service subject to maximum of
33 times of emoluments provided than
amount does not exceed Rs. 20.00 Lakhs
569
5.68. RESIDUARY GRATUITY
Where a Govt. servant who has become eligible for service gratuity
or pension, dies within 5 years of the date of his retirement from service
and the sums actually received by him at the time of his death on
account of such gratuity or pension including dearness relief together
with the retirement gratuity and CVP are formed to be less than the
twelve times of emoluments at the time of his death his family shall be
granted residuary gratuity equal to the deficiency.
570
5.69. INVALID GRATUITY
If the individual’s service is less than 10 years and his invaliding

disability is rejected, he will in addition to retirement gratuity (Where
admissible) be entitled to invalided gratuity at the scale of half months
pay + DA for each completed six monthly period of Qualifying Service.
571
5.70. ORDINARY FAMILY PENSION
Ordinary family pension will be admissible at 30% of reckonable

emoluments last drawn by the deceased officer. Where an individual
rendered a minimum of 7 years’ service the family pension is to be paid
at double the rate subject to maximum of 50% of emoluments or retiring
pension. Family Pension is granted to the family of Govt. servant in the
event of his death while in service or after retirement (Provided he was
in receipt of a pension or compassionate allowance at the time of his
death.
(i) Normal Rate: Normal rate of family pension is 30% of emoluments

last drawn by the Govt. Servant.
(ii) Enhanced Rate: If the individual dies after having not less than 7
years continuous service, family pension will be entitled to the
following rate of enhanced rates:-
a. Death while in service: 50% of the pay last drawn or twice of

the normal rate of family pension whichever is less for 10
years from the date following the date of death
b. Death after retirement: 50% of the pay last drawn or double

of normal rate of family pension or the pension granted to
employee at the time of his retirement from service whichever
is less for 7 years from the date following the date of death or
for period up to which the deceased Govt. Servant would
have attained the age of 67 years had he survived which is
earlier.
572
5.71. SPECIAL FAMILY PENSION
Special family pension is granted to families/dependent of the

officer whose death is regarded as attributable to or aggravated by
Army service irrespective of whether the deceased had completed 7
years of service or not.
The special family pension shall be calculated at the uniform rate

of 60% of reckonable emoluments irrespective of whether widow has
child (ren) or not. There shall be no maximum ceiling on special family
pension.
In case the children become beneficiary, the special family pension

at same rate (i.e., 60% of reckonable emoluments) shall be admissible to
senior most eligible child till he/she attains the age of 25 years or
marriage whichever is earlier. Thereafter, special family pension shall
pass on to next eligible child. If the eligible child is physically or
mentally handicapped and unable to earn a livelihood special family
pension would be admissible for life.
573
5.72. SPECIAL FAMILY PENSION ON RE-MARRIAGE
OF WIDOW
Conditions for grant of SFP on re-marriage of widow:

(i) If widow has child(ren):
(a)If she continues to support children Full special family pension.
after re-marriage
(b)If she does not support children after Ordinary f a m il y pen sion equal to 30% of
re-marriage emoluments last drawn to the re-married widow.
50%of the special family pension to the eligible
children.
(ii) If widow has no child(ren): Full special family pension.

(iii) Where first life award sanctioned for widow:
(i)If she has child(ren):-
(a)If she continues to support Full special family pension to continue
children after re-marriage
(b) If she does not support children Ordinary family pension equal to 30%of emoluments
after re-marriage last drawn to the re-married widow. 50% of the special
family pension to the eligible children.
(ii)If widow has no children Full special family pension to continue
(iv) Where first life award sanctioned to parents:

(a) If widow continues to support 50% of special family pension
child(ren) after re-marriage or has no To parents and 50% of special family pension
issue to widow
(b) If widow does not support children Full special family pension to parents and
after re-marriage but child(ren) are ordinary family pension to widow.
supported by the parents
(c) If child(ren) are not supported 50% of special family pension to parents, 50%
either by, widow or the parents of special family pension to eligible children
and Ordinary family pension to widow
(d) On death or disqualification of Full special family pension to widow
parents and the widow supports the
child(ren) or has no issues.
(e) On death or disqualification of Full special family pension to eligible
parents and the widow does not child(ren) and ordinary family pension to
support children widow
574
5.73. RATES OF SPECIAL FAMILY PENSION
Conditions for calculation of SFP:

(i) Special family pension shall be calculated at a uniform rate of
60% of reckonable emoluments last drawn irrespective of
whether widow has child(ren) or not. There shall be no maximum
ceiling of special family pension.
(ii) In case children become the beneficiary, special family pension at

the same rate mentioned in clause (a) above shall be admissible to
the senior most eligible child thereafter special family pension
shall pass on to the next eligible child.
575
5.74. LIBERALIZED FAMILY PENSION
In case of death of Service personnel under the circumstances

mentioned in category ‘D’ & ‘E’, the eligible member of the family shall
be entitled to the liberalized family pension.
Amount of Liberalized Family Pension for Officers:
(i) If an Officer is survived by the widow, she will be entitled to

liberalized family pension equal to the reckonable emoluments last
drawn by the deceased Officer.
(ii) Liberalized family pension on re-marriage of widow of the

deceased Officer shall be regulated as under:-
(a) If she has child (ren):
(a)If she continues to support Full liberalized family pension.

children after re-marriage
If she does not support (i) Ordinary family pension equal to 30% of
children after re-marriage emoluments last drawn to the widow.
(ii) Special family pension equal to 60% of
emoluments last drawn to eligible children.
(b) If widow has no child(ren):- Full liberalized family pension to
continue to widow.
(iii) If the Officer is not survived by widow but is survived by

child/children only, all children together shall be eligible for
liberalized family pension at the rate equal to 60% of reckonable
emoluments. Liberalized family pension shall be payable to the
children for the period during which they would have been
eligible as in the case of special family pension. This shall be paid
to the senior most eligible child irrespective of sex of the child at a
time. On his death /disqualification, it shall pass on to the next
eligible child at the same rate and the younger of them will not be
eligible for special family pension unless the elder above him/her
becomes ineligible.
576
(iv) When an Officer dies as a bachelor or as a widower without
children, dependent pension will be admissible to parents without
reference to his pecuniary circumstances at the rate of 75% of
liberalized family pension for both parents and at the rate of 60%
of liberalized family pension for single parent. On the death of one
parent, dependent’s pension at the latter rate will be admissible to
the surviving parent. In the absence of parents, dependent pension
shall be admissible to dependent brother(s)/sister(s), if otherwise
eligible, at the rate of 60%of liberalized family pension.
Amount of Liberalized Family Pension for PBORs:
(i) In case of death of a Personnel Below Officer Rank, the eligible

member of the family shall be entitled to liberalized family
pension equal to reckonable emoluments last drawn by the
deceased. Liberalized family pension at this rate shall be
admissible to the nominated heir until death or disqualification.
(ii) If an individual is not survived by widow but is survived by child

(ren) only, all children together shall be eligible for liberalized
family pension at the rate equal to 60% of reckonable emoluments
last drawn subject to a minimum of Rs.7000.00 per month.
Liberalized family pension to children shall be payable to the
child/children for the period during which, they would have been
eligible as in the case of special family pension. The liberalized
family pension shall be paid to the senior most eligible child at a
time. On his death/disqualification it shall pass on to next eligible
child and the younger of them will not be eligible for special
family pension unless the elder above him/her becomes ineligible.
Note: In case the eligible child is physically or mentally handicapped and

unable to earn livelihood, the liberalized family pension @ 60% of reckonable
emoluments shall be admissible to such child for life. Child includes widowed
/divorced daughter irrespective of her age and unmarried daughter above 25
years of age.
(iii) Liberalized family pension on re-marriage of widow of the

577
deceased Officer shall be regulated as under:
a. If liberalized family pension is sanctioned as first life

award to widow:
i. If she has child (ren):
(a) If she continues to support Full liberalized family pension to

Children after re-marriage continue to widow
(b) If she does not support(i) Ordinary family pension equal to 30% of
children after re-marriage emoluments last drawn, to the widow
Special family pension equal to 60% of
emoluments last drawn, to eligible children
ii. If widow has no child(ren) Full liberalized family

pension to continue to widow.
b. Where first life award is sanctioned to parents: The

admissibility of liberalized family pension in such cases,
would be regulated depending upon the period of widow’s
re-marriage as follows:
i. If widow continues to support the children or has

no children: Widow shall get liberalized family
pension equal to special family pension (i.e. 60% of
reckonable emoluments) from the date of re-
marriage and parents shall also get family pension @
60%of liberalized family pension for the balance of 7
years if the re-marriage of widow takes place during
7 years of casualty. After the period of 7 years or
where re-marriage of widow took place after 7 years,
the widow shall get family pension @ 60% of
liberalized family pension and parents shall get
family pension @ 30% of liberalized family pension.
On death or disqualification of parents, widow shall
get family pension equal to the liberalized family
pension.
578
ii. If widow does not support the children: Widow
shall get ordinary family pension (i.e. 30% of
reckonable emoluments) for life from the date of re-
marriage and the parents shall continue to get first
life award at the same rate (i.e. full liberalized family
pension) for balance of 7 years where re-marriage
takes place within 7 years of casualty, provided they
support the children. Otherwise, the entitlement of
parents shall be equally divided between the parents
and children. After the period of 7years of casualty or
where re-marriage of widow takes place after 7 years
of casualty, parents shall get family pension @ 60% of
liberalized family pension provided they support the
children otherwise it shall be divided equally
between the parents and children. On death/
disqualification of parents of the deceased, the senior
most eligible child shall get family pension @ 60% of
liberalized family pension.
579
5.75. SECOND LIFE AWARD OF LIBERALISED
FAMILY PENSION IN RESPECT OF JCOs/ORs
Second life award of liberalized family pension in respect of

JCOs/ORs shall be regulated as under:
(i) If the first recipient (other than the parents) of the family
pensionary award dies/is disqualified earlier than 7 years
(counting from the date of casualty), the award shall be continued
at the same rate to the parents as second life award, if still alive, for
the balance of 7 years without any reduction. After the initial
period of 7 years, the second life award shall be continued at the
rate of 60% of the liberalized family pension
(ii) Where the first life award was given to a parent and the widow
remarries, the liberalized family pension shall be regulated
depending upon the time of widow’s re-marriage as follows: -
a. If Widow continues to support the children or has no

child:-Widow shall get family pension equal to special
family pension (i.e., 60% of liberalized family pension or
reckonable emoluments) from the date of re-marriage and
the parents shall also get family pension at the rate of 60% of
liberalized family pension for the balance of 7 years if the re-
marriage of widow takes place during 7 years of casualty.
After the period of 7 years or where re-marriage of widow
took place after seven years, widow shall get family pension
@ 60% of liberalized family pension and parents shall get
family pension at the rate of 30% of liberalized family
pension. On death or disqualification of parents, widow shall
get family pension equal to the liberalized family pension for
life.
b. If Widow does not support the children: - Widow shall get

ordinary family pension (i.e. 30% of reckonable emoluments)
for life from the date of re-marriage and the parents shall
580
continue to get first life award at the same rate (i.e. full
liberalized family pension) for balance of 7 years where re-
marriage takes place within 7 years of casualty, provided
they support the children. Otherwise, the entitlement of
parents shall be equally divided between the parents and
children. After the period of 7 years where re-marriage of
widow takes place after seven years of casualty, parents shall
get family pension at the rate of 60% of liberalized family
pension provided they support the children, otherwise it
shall be divided equally between the parents and the
children. On death/disqualification of parents of the
deceased, the senior most eligible child shall get family
pension at the rate of 60% of liberalized family pension.
581
Chapter – VI
Seller Payment Wing
6.1. Objective:
To ensure prompt& accurate payment of bills relating to
expenditure incurred from all types of grants by the Defence services
and organizations under MoD except Civil Works expenditure which is
dealt with in the Works Section and Accounts Sections of MES
formations {AOs (GE)}.
Note: This includes payment for supplies and services rendered by the
contractors in respect of work pertaining to all types of contracts, except
M.E.S.& Border Roads Contracts.
6.2. Duties:
(i) Scrutiny and payment of claims/bills in relating to supplies and
services procured from all grants allocated to Defence Services;
(ii) Scrutiny and payment of bills for expenditure of a contingent and

miscellaneous nature and miscellaneous claims relating to unit
allowances.
(iii) Scrutiny and payment of charges relating to acquisition and

disposal of land and buildings by Defence Estates Department
(iv) Scrutiny and payment of bills on account of local purchase of

stationery and local printing
(v) Payment to the Survey of India for supply of Maps.
(vi) Payment in respect of adjustment of the cost of manufacture of

medals and decorations, and contingent and miscellaneous
expenses claims of the Medal section of the Ministry of Defence.
582
(vii) Payment of ECHS bills for treatment for which settlement IDs are
being generated by UTI-ITSL.
(viii) To release Grant-in-Aid to Cantonment Boards/ Sainik Schools

and other Autonomous Bodies.
(ix) Payment of bills on account of auctioneers’ commission.
(x) Payment of Customs duty charges on imported stores.
(xi) Scrutiny and payment of accommodation and Hotel charges

relating to foreign Technicians and their families employed with
the IAF.
(xii) Scrutiny and payment of claims on account of purchase of

spectacles in respect of IAF Personnel.
(xiii) Scrutiny and payment of claims on account of purchase of hearing

aids in respect of IAF Personnel.
(xiv) To make payments towards stores procured from abroad for

Defence Services both in Free Foreign Exchange (FFE) and Non-
Convertible Rupees (NCR). Authorization of opening of Letter of
Credit/Direct Bank Transfer and subsequent adjustment and audit
of documents related to imported stores.
(xv) To make payments towards stores procured centrally by the APO
(xvi) Issue of Money warrants to ships of Indian Navy in order to meet

their cash requirements.
(xvii) Deduction and Deposit of TDS of IT and GST in conformity with

the IT & GST rules.
583
6.3. HANDLING OF BILLS/ CLAIMS
An exhaustive list of bills/ claims dealt with in this section is

provided at Annexure to this Chapter. All bills/ claims will be received
through an automated random distribution system directly to this
section and will be distributed amongst task holders randomly by the
system only, across the Department. The timelines for passing of bills
shall be decided and reflected by the system.
After receipt by the task-holders, bills will then be scrutinised by

the system with respect to the checks enabled/ embedded therein. In
addition to the system enabled checks, the officials involved in
processing & passing of bills on the system will see that necessary
documentation/ certificates required under the financial rules have been
furnished (scanned copies have been uploaded). An indicative list of
documentation required for each type of claim is also provided at
Annexure to this Chapter.
Payment in respect of above bills will be made directly in favour of

the beneficiary by this section through online payment solution
provided by the accredited bank. The paid bills will then be passed on
for comprehensive post audit to the Audit Wing of the PCsDA/ CsDA,
under whose audit jurisdiction unit/ formation/ organization falls.
584
6.4. LEVEL JUMPING
Level jumping (as under) to be observed while processing and

passing of bills in order to achieve efficiency and avoid accumulation of
pendency:
(i) Two tier processing (Task Holder + AAO): Bills up to Rs 5.00

Lakh in value
(ii) Two tier processing (Task Holder + SAO/AO):Bills exceeding Rs

5.00 Lakh and up to Rs 10.00 Lakh in value
(iii) Three tier processing (Task Holder + AAO + SAO/AO):Bills

exceeding Rs 10.00 Lakh and up to Rs 5.00 Crore in value
(iv) Four tier processing (Task Holder + AAO + SAO/AO + GO):Bills

exceeding Rs 5.00 Crore in value.
585
6.5. TAX DEDUCTION AT SOURCE OF INCOME TAX
TDS of Income Tax and cess thereon will be deducted

automatically by the system from the admitted amount of bills/ claims.
The deducted amount will be booked automatically to the relevant code
head which closes to the Government.
Certificate of deduction of Income Tax at source will be generated

quarterly by the system duly digitally signed by the DDO and will be
transmitted to the assessee electronically.
586
6.6. TAX DEDUCTION AT SOURCE OF GOODS &
SERVICES TAX (GST)
TDS of GST will be deducted automatically by the system from the

admitted amount of bills/ claims. The deducted amount will be booked
automatically to the relevant code heads.
At the end of each month, the system will generate a contingent

bill electronically for amount accumulated under GST TDS Code heads.
This bill will then be passed for payment following the procedure
outlined at Para 5 above.
587
ANNEXURE TO SELLER PAYMENT SECTION
6.7. EXHAUSTIVE LIST OF TYPES OF BILLS DEALT

WITH IN SELLER PAYMENT SECTION
S. No. Type of Bills/ Nature Service Relevant Code Relevant
of Payment Head Documentation
set applicable
for payment
01. Information Army 433/01 A
Technology (Hardware)
Technology (Software)
Technology (Internet)
Technology
(Maintenance)
Technology (Computer
Stationery&
Consumables)
Technology (Training)
07. ASC: Perishable items Army 401/01, 404/01, A
407/01, 408/01,
409/01
08. ASC: Non - Perishable Army 410/01, 412/01, A
articles 413/01, 414/01,
418/01, 419/01,
423/01, 424/01
09. Hired Transport: Army 255/01, 255/02 A
Payment against supply
of vehicles
10. ASC (Hiring of Porter & Army 255/03 B
Ponies)
588
set applicable
for payment
11. ASC (Hygiene & Army 441/01, 442/01 A
Chemicals, Depot
Contingency items)
12. ADC (Milk and Milk Army 420/01 C
Products)
13. Security System Army 439/08, 439/09 A
14. Local Purchase Bills: Army 415/01, 415/31, A
Ordnance, MT, ACSFP, 417/07, 421/01,
DGEME, Medical, 421/05
Medical Repair
15. AOC (Ordnance, MT, Army 415/01, 416/01, A
Clothing) 417/01
16. EME (Ordnance, MT, Army 415/07, 416/07, A
Clothing) 417/07
17. Animals Army 411/01 A
18. Medical Stores Army 421/01 A
19. Veterinary Stores Army 422/01 A
20. Local Purchase Bills: Army 433/01 A
Engineering Stores
Supplies
21 Aero Space Safety Army 432/01 A
22 Sports and Adventure Army 595/01 A
23 Outsourcing Army 575/30 A
24 Tele-Communication Army 474/01 A
25 MOLTI & MOTIM Army 908/74, 908/75 A
26 ACG/TTIEG Grant (For Army 565/01 & 569/00 A
Contingent and Misc.
Expenditure)
27 Conservancy and Hot Army 560/00 & 561/00 A
589
set applicable
for payment
Weather Establishment
Charges
28 Petty Recurring Army 565/04 A
Expenditure Sanctioned
by GOC, Commands,
Areas, etc.
29 Amenity Grants (for the Army 566/01 D
provision of sports
gears, musical
instruments, etc)
30 Annual Training Grant Army 567/01 A
31 Educational Training Army 568/00 A
Grant
32 Field Practice and Army 569/01 A
Training Grant for the
Corps of Engineers
33 Bills on Account of Army 147/00 A
Local Purchase of
Stationery and Local
Printing
34 LP Medical Bills Army 363/01 A
(ECHS)
35 Legal Expenditure Bills Army 598/01, 598/02 E
36 Payment of Army 599/06, 07, 12 B
Conservancy charges
(out sourcing
employee/labour)
37 Payment of AMC Army 574/02 B
charges
38 Payment to Survey of Army 574/02 A
India of MAPs
39 Audit and Payment of Army 433/05 A
bill on account of Local
Purchase of stationery
and Local Printing
590
set applicable
for payment
40 Defence Public Sector APO 929/21 F
Undertaking
(MIDHANI)
41 National Agriculture APO 413/02 G
Co-op Marketing
Federation Ltd
(NAFED)
42 STAGE PAYMENT: APO 929/21 H
Payment on account of
Development of
Platform
43 Outsourcing of APO 929/21 I
Technical Services
44 Main Grade Fuel Army/ 403/02 J
(Motor Spirit) POL
45 Main Grade Fuel (High Army/ 425/02 J
Speed Diesel) POL
46 Main Grade Fuel Army/ 427/02 J
(Superior Kerosene Oil) POL
47 Main Grade Fuel (Air Army/ 428/02 J
Turbine Fuel) POL
48 Lubricants: 100% Army/ 406/02 K
POL
49 Lubricants : 95% Army/ 406/02 K
POL
50 Lubricants : 5% Army/ 406/02 K
POL
51 Defence Public Sector Army 415/17 A
Undertaking (former
OFB)
52 Capital Procurement Army 908/37 A
(Vehicle): 70%
591
set applicable
for payment
(Vehicle): 30%
54 Capital Procurement Army 908/56 L
(Vehicle): 15%
(Vehicle): 75%
(Vehicle): 10%
57 Revenue Procurement Army 415/17 A
(Store): 15%
(Store): 85%
(Store): 100%
60 Capital Procurement Army 908/46(Army), L
(Signals): 15% 915/36(Air Force)
61 Capital Procurement Army 908/46(Army), A
62 Capital Procurement Army 908/46(Army), A
63 Capital Procurement Army 908/46(Army), F
64 Defence Public Sector Army 415/17 A
Undertaking (former
OFB):
40% payment after
mobilization Advance
65 Central Procurement of Indian Air 742/01 A
bills against Local Force
Certification cases
(Indigenization)
592
set applicable
for payment
66 Bills on Local / Central Indian Air 919/32, 36, 40 A
Purchase of Stores / Force 742 to 755
services in r/o both AF
and Non-AF Units 790 to 799
(non-GeM) 692 & 694
67 Bills on Commission Indian Air 786/25 A
Charges of MSTC / Force
Approved Auctioneer
on account of salvage/
scraps of Air Force
68 Bills on account of Indian Air 749/02 A
purchase of Serra & Force
Vaccine / Isotope from
BRIT, Hafkins Bombay
and Central Research
Institute Kasauli
69 Bills on account of Indian Air 742-755/02 & A
Central / Local Force 790-799/02 (IAF)
Purchases of 692 & 694/02
Stores/services through (IN)
GeM
70 Central Procurement Indian Air 742-747/02 & A
bills on account of Force 909/36
payment of Advances
to DPSUs
(Single Tender Enquiry)
71 Central Procurement Indian Air 742-747/02 & A
bills on account of Final Force 909/36
Payment to DPSUs
(Single Tender Enquiry)
72 Payment in respect of Indian Air 746/01 A
ATF bills from IOCL Force
through OJAS(Online)
593
set applicable
for payment
73 Payment of ATF/Non- Indian Air 746/01 A
ATF bills to Oil PSUs Force
(Offline)
74 Bills on account of Indian Air 742 – 755 A
Central Procurement of Force
AMC/Repair services
(Comprehensive)
75 Bills on account of Indian Air 742 – 755 A
Central Procurement of Force
AMC/Repair services
(Non-Comprehensive)
76 Accommodation Indian Air -- A
Charges in r/o Foreign Force
Technicians and their
families employed by
I.A.F. for special duty.
77 Cost of Hearing-aids to Indian Air 701/01,02 A
Air Force Personnel & Force
their dependents.
78 Claims in satisfaction of Indian Air 99/786/25 A
Decree of MACT cases Force
79 Purchase or printing of Indian Air 786/3 & 24 A
stationery items from Force
local market/RSD
80 Medical Advance Bills Indian Air 707/01,02 A

in r/o Service Force
Personnel and their
families taking
specialized treatment in
civil hospital
81 CAT ‘A’ – Vehicle / Border 65/069/04 A
Equipment / Plant Roads
594
set applicable
for payment
82 CAT ‘A’ – Spares for Border 65/069/04 A
Vehicle / Equipment / Roads
Plant
83 CAT ‘A’ – Clothing Border 67/066/37 A
items. Roads
84 Local Purchase: Indian 536/01 A
Contingent Bill- Navy
Generic for MH 110,
106, 103, 204
85 Condiment Indian -- A
Expenditure Navy
Contingent Bill- Post
Audit
86 5% Payment Indian -- A
Contingent Bill (Supply Navy
of BVY items)
87 Rice Contingent Bill Indian -- A
(Dry Ration) Navy
88 Conservancy Bills Indian 560/01 A
Navy
89 Hot Weather Indian 561/00 A
Appliances Navy
90 Telephone Bills (other Indian 658/07 M
than MES, AHQ & Navy
Farms)
91 Misc. Expenses & Unit Indian 692/01 A
Allowances Navy
92 Legal Expenditure Indian 692/40 E
Navy
93 NCC Expenditure Indian -- N
Navy
94 Misc. Grants Indian 581/00 A
Navy
(Annual Library Grant,
595
set applicable
for payment
Annual Training Grant,
Amenity Grant,
Educational Training
Grant,
FP&TG, Sports &
Adventure Grant,
TTIEG)
95 Local Purchase: Stores DRDO 856/01 A
purchased locally
96 Local Purchase: DRDO 856/11 A
Hardware
Software
Computer Stationery
and Consumables
99 Misc. Purchase: DRDO 851/02 A
Personal Expenses
100 Misc. Purchase: Office DRDO 858/01 A
Expenses
101 Release of Funds to DRDO 415/20 A
M/s BRAHMOS Central
Aerospace Pvt Ltd: Purchase
Trade (Electronics)
M/s BRAHMOS Central
Special Equipment’s for
Scientific Laboratories
M/s BRAHMOS Central
Aerospace Pvt Ltd:
596
set applicable
for payment
Trade (Missiles) Purchase
M/s BRAHMOS Central
Other than HAL
M/s BRAHMOS Central
Testing of Instruments
M/s BRAHMOS Central
Other sources
M/s BRAHMOS Central
Replacement and
Upgradation of
Weapons Equipment
M/s BRAHMOS Central
Other Equipment
(Trade)
M/s BRAHMOS Central
Other than MGO
110. Payment of ECHS Bills Army 01/365/00 A
597
6.8. List of Documentation Sets required for various
kinds of Bills/ Claims
S. Set Title Type of Bill/ Documents required for payment of a Bill
No. Claim
1. A General 1. Copy of CFA Sanction
2. Contract Agreement / Supply Order
3. Invoice/ Contingent Bill
4. Consignee Receipt & Acceptance Certificate (CRAC) /
Certified Receipt Voucher (CRV)
2. B Manpower 1. Copy of CFA Sanction
hiring/ 2. Contract Agreement / Supply Order
Conservancy 3. Invoice
/AMC 4. Signed nominal roll/satisfactory performance report/Work
completion and satisfactory certificate of the user
3. C ASC (Milk 1. Copy of CFA Sanction
and Milk 2. Quotation submitted by NCDFI / NDDB / DMS / State
Products) Cooperative Milk Federation
3. Contract Agreement / Supply Order
4. Invoice
5. Consignee Receipt & Acceptance Certificate /CRV
4. D Amenity 1. Authorized strength on or after 1st April and 1st October of
Grants each year.
2. Certified that no notification of the disbandment of the unit
has been received up to the date of claiming.
3. The date of raising should be indicated on the contingent bill
when a unit is raised during the course of the year.
5. E Legal 1. Copy of CFA Sanction
Charges 2. Case hearing details
3. Advocate’s bill
6. F DPSU 1. CFA sanction
(MIDHANI)/ 2. Invoice
Capital 3. Inspection note
Procurement 4. Contract/supply order
(Signals)-30% 5. Specific conditions in the contract/ supply order
stage
payment
598
No. Claim
7. G National 1. Ink signed Dispatch Advice cum issue and Receipt Voucher
(DAIRV)
Agriculture
2. Ink signed copy of Financial document Misc (FDM-58) in
Co-op duplicate
Marketing 3. Item Warranty/Guarantee certificate as per RFP
Federation 4. Copy of No. 1 and 2 of DAIRV
Ltd (NAFED)
5. A copy of AT/Supply order with each bill and original
(Dry Ration) copy of AT Note/Supply order with the final /last bill
6. Copy of RFP
7. Specimen Signatures of officer issuing DI, CO authorizing
DAIRV/CRV
8. Ink signed copy of verdict issued by CFL concerned/DGST
9. Ink signed copy of Dispatch Instruction (DI) issued by
Army Headquarters.
10. Transportation Receipts for transportation claims
11. Claim for statutory and other levies to be supported with
requisite documents/proof of payment
8. H Stage 1. CFA sanction

Payment 2. Ink signed copy of commercial Invoice
bills: 3. Work completion certificate for particular stage from the
Building of authorized representative for reimbursement of taxes
4. CA certificate with UDIN as proof of deposition of taxes
Platform
with tax authorities for reimbursement of taxes
5. Bank Guarantee for Advance, if applicable
6. FMI insurance (once)
7. Contract/supply order
8. Any other document /certificate that may be provided for
in the contract
9. I Outsourcing 1. Ink signed copy of Pre-receipted bill, in triplicate duly

indicating the Purchase Order No. and date and indicating
of Technical
the relevant period of payment
Services 2. Ink signed copy of commercial Invoice
3. Performance cum Warranty Bond
4. Certification by Directorate of Naval Design (SDG) on
successful completion of the assigned task at customer’s site
within the period in question
599
No. Claim
5. Tax Invoice from the firm
6. Original copy of contract and amendments thereon, if any

7. Any other document/certificate that may be provided for
in the contract.
8. CA certificate with UDIN as proof of deposition of taxes
with tax authorities for reimbursement of taxes
10. J Main Grade 1. Ink signed copy of Commercial Invoice
Fuel (Motor 2. CRVs
sprit/ 3. DI Allotment
HSD/Kerose 4. Shortage details, if there is shortage in delivery
ne/ ATF) 5. Master Price List
100%
payment
11. K Lubricants 1. Ink signed copy of Commercial Invoice (I-Note 1)

(Payment 2. CRVs
Terms: 3. Claim for Statutory and other levies with proof
100%/ 95%/
4. Guarantee /Warranty Certificate
5%)
5. DP extension letter, if any
12. L Capital 1. Copy of CFA Sanction

Procurement 2. Contract Agreement / Supply Order
(Vehicle)-15% 3. Advance Bank Guarantee
Stage
4. Invoice
Payment as
Advance
payment
13. M Telephone 1. Copy of CFA Sanction
Bills {other 2. Invoice
than MES 3. User certificate
&IHQ of
MoD (Army)}
14. N NCC 1. Copy of CFA Sanction
Expenditure 2. Statement of Expenditure for advance/ Tax invoice in case
of payment
3. NEFT/RTGS mandate form
600
Chapter – VII
Works Wing
7.1 Introductory:
This wing deals with the Audit, Payment, Accounting & Financial
Advice functions regarding works carried out by the Military Engineer
Services (MES), Director General Married Accommodation Project
(DGMAP) & Border Roads Organisation (BRO). The MES & DGMAP
primarily carry out their functions in various cantonments under the
audit jurisdiction of concerned Regional PCsDA/CsDA offices of DAD.
Therefore, the associated financial services are provided by the
concerned regional PCsDA/CsDA offices. Regarding works carried out
by the BRO, the financial services are provided by the PCDA (BR), Delhi
Cantt. and its sub-offices.
601
7.2. Objectives
(i) To advise administrative / executive authorities viz. the MES,
DGMAP & BRO, on the financial management aspects of works
and contracts.
(ii) To render advise on revenue aspects relating to rent and allied
charges and maintain revenue related records thereby ensuring
prompt and accurate revenue recoveries.
(iii) To pay promptly and correctly for civil works executed by the
contractors.
(iv) To advise executives authorities on resource management and
provide suggestions for entailing economies in manpower/
machinery utilization.
7.3. Duties
(i) Audit of Administrative Approvals and Technical Sanctions.
(ii) Audit of Appropriations and Re-appropriations.
(iii) Scrutiny and vetting of works contracts, amendments and

deviation orders thereto.
Note 1: In case of Border Roads contracts, this duty will be discharged by AO

(Projects)/ AO (Task Force).
Note 2: In case of MES contracts within the powers of acceptance of GE, this
duty will be discharged by AOs (GE).
(iv) Safe custody & release of Security Deposits lodged by Works

contractors in various forms except Cash Security.
(v) Audit and authorization of bills/ claims arising out of works

contracts, etc. for payment by sub-offices.
(vi) Preparation of Annual Review of Works Expenditure.
(vii) Performing accounting, audit & payment functions for Married

Accommodation Project (MAP).
602
(viii) Circulation of all important instructions/orders relating to works
issued by the Government of India or any lower authority to all
concerned;
(ix) Scrutiny of Re-appropriation Statements of buildings.
(x) Scrutiny of Demolition Statements.
(xi) Scrutiny of Terminal Compensation claims.
(xii) Dealing with Cases of higher audit objections including Draft

Paras, etc., pertaining to works.
(xiii) Rendition of Audit Reports in following cases :
a. Loss of stores
b. Charged expenditure
c. Loss of Measurement Book
d. Lease Agreements which come under the financial powers of
ADGBR/ DGBR
e. Proposals on account of Advance payment to other Central
Government Departments/ State Govt/PSUs etc. relating to
civil works
(xiv) Rendering proactive advice on revenue aspects relating to rent and

allied charges.
(xv) To address all disputed items in works contracts, amendments and

deviation orders thereto.
(xvi) To clarify all points of doubt either raised by a contactor or by any

officer of the Government or sub-offices.
(xvii) To handle cases involving criticism of administrative authorities

on the acceptance of tenders or the working of contracts.
(xviii) Performance review of Border Road Works.
603
(xix) Monitoring of the IFA functions of sub-offices of DAD attached to
Border Roads Organization.
(xx) Monitoring of Arbitration/ Sub-judice cases.
(xxi) Analysis of Reports and Returns.
(xxii) The following items of work of MES expenditure are dealt with in
the office of the C.D.A. (Army) only: -
a. Payment of cost of maintenance of P.O.W. Cemeteries.
b. Adjustment of Departmental charges for works done in respect of

Navy / Air Force.
c. Verification of the adjustment of the cost of vehicles issued by the

Army to the MES in the half-yearly statement rendered by IHQ of
MoD (Army).
d. Adjustment of annual contribution in regard to cantonment survey

and allocation of expenditure between MES Head of Account and
Army Head of Account.
604
7.4. CLASSIFICATION OF WORKS
WORKS
ORIGINAL REPAIRS
WORKS
ORDINARY SPECIAL
REPAIRS
REPAIRS
(Beyond
(Within monetary
monetary limits
limits provided in provided in
DWP) DWP)
AUTHORIZED SPECIAL
WORKS WORKS
(Within scales) (Beyond scales)
4. All Original Works mandatorily require prior issuance of

Administrative Approval for their execution. Powers of according
administrative approval for Original Works (both Authorized & Special
works) have been separately laid down in Defence Works Procedure &
Border Road Regulations (as amended from time to time).
5. No administrative approval would be required for execution of

Repair works (ordinary repairs) and the same will be budgeted under
Revenue Head.
6. In case, where Repair works (special repairs) i.e. beyond the

financial limits laid down in DWP become necessary, the work will be
605
sanctioned as Special Repairs Work and shall be treated as an Original
Work for all purposes.
606
7.5. ADMINISTRATIVE APPROVAL
Administrative Approval cum Expenditure Sanction is the

documentary sanction, issued by Government of India or any other
Competent Financial Authority lower than the Govt. of India, for the
execution of a works at a stated cost. Administrative Approval will be
based on Approximate Estimates (AEs) prepared by the Engineer
authorities.
The Administrative Approval will be conveyed by a letter

specifying the source from which the funds will be provided and the
agency who will carry out the services. A copy of the letter according
Administrative Approval/ Expenditure sanction together with a copy of
the approximate estimates will be sent to the concerned section of the
Regional PCsDA/ CsDA.
The Director General of Audit of Defence Services is responsible

for audit of administrative approvals accorded by the Government of
India. The role of DAD in this case, will only be limited to ensuring that
the Administrative Approvals have been issued with the concurrence of
the Ministry of Defence (Finance).
The powers regarding Administrative Approvals issued by

Competent Financial Authorities (CFAs) lower than the Govt. of India,
are laid down in Defence Works Procedure and Border Road
Regulations as amended from time to time.
607
7.6. AUDIT OF ADMINISTRATIVE APPROVAL
In conducting the regular audit of administrative approvals

accorded by the Competent Financial Authorities lower than the
Government of India, it will be seen: -
(i) That the Competent Financial Authority (CFA)has accorded the

administrative approval after accepting the necessity for the work.
NOTE: -Sanction of the next higher financial authority should be obtained

while proposing expenditure on any special work which will be directly or
indirectly to CFA’s own advantage or this/her Headquarter.
(ii) That the source from which the funds will be provided is stated;
(iii) That in the case of work stated to be authorized it is covered by the

specific scales;
(iv) That the sanction together with the Approximate Estimate has
been communicated to PCDA/CDA direct by the sanctioning
authority;
(v) That the charge is for bonafide public object;
(vi) That there is no splitting of sanction;
(vii) That if additions become necessary through revision of scales or

establishments or for other administrative reasons, a
supplementary estimate is prepared and administrative approval
obtained from the Competent Financial Authority empowered to
accord such approval to the entire work including both the
original and supplementary estimates;
(viii) That in the cases of special works, reasons for according

administrative approval justifying the execution of the work under
the provisions of Defence Works Procedure
(ix) That special works have not been approved in cases where the
introduction of a new practice or change of scale is involved. All
608
such approvals will be challenged in audit as requiring the
sanction of the Government of India;
(x) That when a large number of services in a station of area is

necessitated by a change of plan or policy, all the services to which
Government is thus committed have been considered as one
project of the purpose of administrative approval;
All letters conveying administrative approval will be noted in the

Register of Approvals to Works. I.A.F.W. – 1816 and filed in a separate
file and pages in the file and will be serially numbered. Letters
conveying revised administrative approval will be linked with the
original approvals entered in the “Register of Approvals to Works"
(IAFW-1816) need not to be filled in with details." Format of I.A.F.W. –
1816 is provided at Annexure ‘7.6.A1’ to this chapter.
609
7.7. TECHNICAL SANCTION
No work, irrespective of its classification (i.e. either Original Work

or Repair) can be executed without the issue of Technical Sanction by the
Competent Engineer Authority. Technical sanction ensures that the
work’s proposal is structurally sound and that the estimates are
accurately calculated and based on adequate data.
Ordinarily, technical sanctions are accorded only after issue of

Administrative Approval. But in case of authorized items of work based
on approved scales of accommodation and specifications, necessary
documents including designs and drawings can be prepared in advance
so that the stages of technical Sanction and Tender Action can be
covered expeditiously after Administrative Approval is accorded.
Costed Schedules of Works will form the basis of issue of

Technical Sanction. Costed Schedules of Works will be prepared along
with requisite designs and drawings, costed and technically sanctioned
by the competent engineer authority before tender documents are issued.
Costed schedule of works will be in strict accordance with the

administrative approval so far as scope of work and scales are concerned.
The engineer officer competent to accord technical sanction to a project
may, wherever necessary, deviate from specification shown in the
approximate estimate proved that:
i. The deviation are necessitated by engineer/ aesthetic reasons and

are not such as to alter the scope of the work;
ii. There is no serious departure from authorized general

specifications; and
iii. The total cost of the project as administratively approved is not

exceeded beyond the tolerance limit.
610
The competent engineer authority before according technical
sanction to a sub-project must be satisfied that the amount of the
technical sanction for the whole project is not likely to exceed the
amount of administrative approval including the tolerance limit of 10
per cent.
No contract will be made nor work begun till the schedules have
been costed and Technical Sanction given and that in the case of works
carried out by specialist firms on their own designs, Technical Sanction
has been accorded on the basis of the accepted design on receipt of
tender but before acceptance of the contract.
611
7.8. AUDIT OF TECHNICAL SANCTIONS
While conducting audit of these sanctions it will be seen:-
(i) That sanction has been accorded by the Engineer authority

competent to do so:
(ii) That the technical sanction along with the costed schedules of
projects or sub projects has been communicated to the PCDA/
CDA direct by the sanctioning authority;
(iii) That the amount of technical sanction does not exceed the amount
of administrative approval and tolerance limit thereupon;
(v) That the costed schedules of work accompanying Technical

Sanction are based on the scales and designs laid down by the
Government of India from time to time.
(vi) That the costed schedules of work does not vary from the
specifications shown in Part II of Approximate Estimates
accompanying the letter conveying the Administrative Approval
unless: -
(a) The changes are necessitated by Engineer reasons and are

not such as to alter the scope of the works.
(b) There is no departure from authorized general specifications;
(v) That the schedules of works were prepared by competent Engineer

authority before calling for tenders or commencing the works.
(vi) In the case of works estimated to cost less than Rs. 50,000/- the
preparation of costed Schedules of Works is discretionary and
need not be insisted upon.
All letters conveying technical sanctions will be noted in the

Register of Approvals to Works (IAFW – 1816) and filed in a separate
file and pages in the file will be serially numbered.
612
7.9. APPROPRIATIONS AND RE-APPROPRIATIONS
For monitoring of funds placed at the disposal of Commands

under various Budget Heads, Registers of grants on I.A.F.W. 2244 are
maintained. These Registers are opened and posted from the Budget
Estimates communicated by E-in-C's Branch and further sub allotments
made there from by the CEs Commands.
Note: Fly leaf instructions for the maintenance of this Register are given at
Annexure ‘7.9.A2’ to this Chapter.
Appropriations and Re-appropriations made after initial Budget

provision are posted into these registers. Detailed Rules for allotment
and transfer of works funds are given in the Defence Works Procedure &
Border Road Regulations.
The maintenance of proper records of appropriations and re-

appropriations as well following the trail thereof is essential and
important because the payment function of this wing requires
assessment of availability of allotment of funds (budget) before any
liability is discharged.
613
7.10. AUDIT OF APPROPRIATIONS AND RE-
APPROPRIATIONS
In the audit of appropriations and re-appropriations it will be

seen:-
(a) That the order has not the effect of increasing the amount of the
appropriations without the sanction of the Competent Authority;
(b) That the amount appropriated is available under the head from
which it is allotted;
(c) That the re-appropriation is authorized before the expiry of the

year;
(d) That the order is issued by the Competent Authority;
(e) That in the case of adjustment of savings and excesses within a

project ordered by Engineer Officers without the sanction of the
CFA who accorded the Administrative Approval to the Project, it
will be seen:
(i) that the savings and excesses were caused by Technical

reason and that the scope of the project is not altered and
(ii) that the total amount of Administrative Approval is not

exceeded.
614
7.11. METHOD OF EXECUTION OF WORKS
Works may be executed by any or by a combination of the
following methods: –
(a) Military labour.
(b) Directly employed civilian labour (DEL).
(c) Contracts.
Military labour may be utilized provided the military duties of the

unit permit. The rules for the employment of engineer units on civil
work are contained in Regulations for the Army, Volume 2.
Directly employed civilian labour is suitable for certain routine

duties and maintenance works when it is difficult or undesirable to enter
into a contract.
Works on the construction of roads will normally be carried out

departmentally be the units and formations in the G.R.E.F. Contracts
may be entered into for the construction of bridges or ancillary buildings
such as offices, workshops, living accommodation, etc. and for the
supply of stores and materials or for transportation of personnel and
stores.
615
7.12. CONTRACTS
Various types of contracts concluded for execution of different

types of works and their standard forms are explained in Regulations for
the MES, Manual on Contracts and Border Road Regulations.
The rules for the issue of tender notices etc., acceptance of Contract
Agreements and the powers of acceptance thereof by the Engineer
Authorities are also provided in Regulations for the MES, Manual on
Contracts and Border Road Regulations.
The responsibility for the correctness of any contract in every

respect lies with the Officer by whom it is accepted. The Defence
Accounts Department is also required to exercise an intelligent scrutiny
of contracts entered into by authorities lower than the Government of
India and the E-in-C. This is one of the important functions of the work
of this wing because the “contract” eventually forms the basis on which
the payments will be made in due course.
In the case of MES contracts accepted by the Chief Engineers and

CsWE, the original and duplicate copies of the Contract Agreements as
well as any amendments thereto are forwarded by the accepting officer
direct to the Regional PCDA/ CDA. This procedure is also applicable for
contracts concluded by DGMAP/ CE (MAP) for execution of MAP
works.
In the case of MES contracts accepted by the GE, the original and
duplicate copies of contract agreements as well as any amendments and
deviation orders thereto are sent by the GE to the AO/AAO (MES). The
AO/AAO (MES) after carrying out their scrutiny/ vetting will forward
duplicate attested copies to o/o the PCDA/CDA.
Note: Particulars of all the contracts received in this section will be recorded in
a Register to be opened for the purpose. The fly leaf instructions and the
616
Proforma of the above register are contained in Annexure ‘7.12.A3’ to this
Chapter.
Consequent upon implementation of IFA system in BRO all the

Contracts proposals are to be pre-scrutinised and concurred by the
Accounts Officer (Project & Task Force) as an IFA before acceptance by
the CFA. Accounts Officer (Project &Task Force) are expected to play the
role of financial advisor to the BRO functionaries in a pro-active manner
and they are associated from pre-contractual stage to post contract
management areas.
At the final stage, entire contract documents after acceptance of the

L1 Tender by the CFA along with relevant documents of Security
Deposit/Additional Security Deposit will be forwarded to Accounts
officer (Project or Task Force) for post-scrutiny/ vetting.
Check list on the scrutiny of contracts by the works section of the

o/o the PCsDA/CsDA is appended as Annexure ‘7.12.A4’ to this chapter.
A brief record of the important points noticed during the course of

scrutiny of contracts will be kept in the critical review register to be
maintained for the purpose. The fly leaf instructions for the maintenance
of the register and its Proforma are given in Annexure ‘7.12.A5’ to this
chapter. This register should be utilized for the preparation of Statement
'D' of the Annual Review of Works Expenditure.
Special attention will be paid to the following requirements which

are essential to guard against fraudulent alteration;
(i) That contract agreements are prepared in the same handwriting

and ink throughout;
(ii) Blank spaces are either filled in or a line is drawn through such
spaces;
(iii) Rates including the percentage above or below the schedule are
expressed in words as well as in figures. Even where the contract
617
form does not provide for the rates to be shown therein, it should
be seen that the Engineer Officer concerned exhibits the rates in
words as well as figures.
618
7.13. AMENDMENTS TO THE CONTRACTS
Detailed rules for issue of Amendments & Deviations to Contracts

are provided in Regulations for MES, Border Road Regulations & E-in-
C’s Contract Manual as amended from time to time.
An officer competent to accept a contract is also competent to

amend it provided that contract as amended is within his/her powers,
except that the sanction of the next higher authority must be obtained in
the following cases:
(a) if an amendment involves enhancement of contract rates.
(b) to any amendment after the contractor has signed his/her final bill
or in the case of running or term contracts for minor works,
maintenance, supplies, etc., after expiry of the period covered by
the contract.
Amendments to the Contract Agreements are also required to be

scrutinized by this wing. These amendments will be made in the form of
an annexure and not in the form of a correction to the original contract.
These annexures will be page numbered in continuation of the original
numbering in the Contract Agreement and additions noted on page 1 of
the CA. After scrutiny etc., these will be appended to the relevant
contract.
MES Standing Orders provide that for an amendment having a

considerable financial effect the PCDA/ CDA will be consulted
wherever possible before it is accepted. It will be seen that these
instructions are complied with by the Engineer Officers.
619
7.14. DEVIATION ORDERS
During the performance of works under a contract, material

improvements necessitated out of user requirement may be required
which may make it necessary to carry out deviations on the contract. If
such deviations cannot be avoided, the Engineer-in-Charge will at once
submit his/her proposals to his/her superior officer in respect of those
deviations which are beyond his/her authority to approve.
Deviation Orders in respect of Contracts will also be received in

this Wing for scrutiny and disposed of in like manner to amendments as
explained in the preceding paragraphs.
Deviation orders will be scrutinized to see that: -
(i) The Deviation Order is given descriptive heading as provided for

in Manual on Contracts.
(ii) The manner in which the deviations are to be measured and priced
is stated;
(iii) Circumstances under which extension of time may be granted are

stated as per condition 11 of the IAFW-2249 as amended from time
to time.
(iv) To safeguard against future claims from contractors for alleged

idle labour or additional establishment etc., the Deviation Order
for extension of time will, in addition to indicating the changes in
dates of completion, include the endorsement "Financial effect –
Nil"
(v) The proposed Deviation is within the terms of the Contract and
does not have the effect of changing the scope of the contract;
(vi) The Deviation Order has been signed by the Contractor and
approved by the Competent Authority;
620
(vii) The pro-rata /Star rates, if any, have been checked by the SW or
ASW (MES) (when SW is not posted) / SSW. Such rates will be
checked cent percent in audit.
(viii) As a result of deviation order the value of the contract is not

exceeded beyond the original value plus the maximum Deviation
percentage admissible thereon.
(ix) The Deviation Order does not result in the value of the contract
exceeding the amount of the Technical Sanction / Administrative
Approval (including tolerance limit);
(x) Covering Deviation Orders (ex-post facto) are not preferred as a

matter of course.
Note: All extensions of time granted through DOs/ Covering DOs will be
recorded in Register of Extension DOs. Fly Leaf instructions for the
maintenance of the register and its Proforma given in Annexure ‘7.16.A6’ to
this chapter.
621
7.15. EARNEST MONEY AND SECURITY DEPOSITS
The provision of Earnest Money and Security Deposit has been

provided for to ensure compliance with contractual liability on behalf of
the contractor. Contractors tendering for works are divided into the
following categories on the basis of their liability to deposit earnest
money and security etc.
(a) Contractors who are borne on the list of approved contractors for
the areas concerned, and have deposited the Standing security
appropriate to the class in which they are registered.
(b) Contractors who are not borne on the list of approved contractors
at the time of issue of tender forms.
The Standing security deposited by the contractor covers all

his/her contracts in the area for which he/she is registered. A contractor
in category (a) is not therefore required to deposit additional security for
any tender which is within his/her registered monetary limit, nor is
he/she required to deposit any earnest money.
A contractor in category (b) will be required to deposit the full

amount of security calculated for each contract in accordance with the
rules as applicable, in the prescribed form. The earnest money deposited
with the tender will be released to the contractor after the amount of
security is so deposited.
If at the time of issue of tender documents to a contractor, the

estimated cost of the work was within his/her monetary limit but the
amount of his/her tender exceeds that limit, he/she will be required to
furnish the additional security as mentioned above in accordance with
the condition of the contract.
The amount of security to be deposited with standing security

bond for the various classes of registered contractors, scale of earnest
money and individual security deposits are given in Regulations for
MES, Border Road Regulations & E-in-C’s Contract Manual as amended
from time to time.
622
The prescribed forms of security are:
A Government Securities
B State and municipal Debentures At 5 % below market price or at
C Port Trust Bond face value, whichever is less
D Deposit receipts of the SBI and other At market price
Nationalized banks
E Guarantee Bonds executed by the SBI and At market price
other Nationalized banks
G Post office cash certificates At market price
H National saving certificates At market price
Note: The above forms are required to be pledged in favour of PCDA/CDA
concerned/ PCDA (BR)
The standard security Bond along with Security Deposit in the

form received in this section will be entered in the Security Deposit
Register over the signature of the Officer-in-Charge and kept in a safe
custody.
NOTE 1: In the case of the contractors of unlimited class, the Regional

PCDA/CDA on receipt of the Bond and Security Deposits from the Chief
Engineer concerned will communicate the No. allotted by the Chief Engineer to
the Security Bond and the fact that the Security Deposit has been lodged, to the
other Regional PCsDA/CsDA who will keep a note of the fact in their register of
Security Deposits.
NOTE 2: In case of BRO, Security Deposits in respect of unlimited class

contractors only are held in o/o the PCDA (BR). For other category of
contractors, security deposits will be retained in the safe custody of AO
(Project/ Task Force) concerned.
NOTE 3: The fly leaf instructions for the maintenance of the register of
Security Deposits are contained in the Annexure ‘7.15.A7’ to this Chapter.
NOTE 4: Bank Guarantee Bonds received in lieu of Security Deposit will be

entered in a separate register over the signature of the Officer-in-Charge to
ensure that timely action is taken for their extension, renewal and or
enhancement as the case may be. The fly leaf instruction for the maintenance of
the register of Bank Guarantee Bonds are contained in Annexure ‘7.15.A8’.
623
Enforced recoveries from Contractors from their Security Deposits
will be affected in communication with the Chief Engineer of the
Command concerned.
624
7.16. REFUND OF SECURITY DEPOSITS
The following procedure for the refund of Security Deposits will
be followed:
7.16.1. Standing Security Deposit (Unlimited Class)
(a) The contractor applies to the authority with whom the Standing
Security is lodged (CE (P)/DGBR), for the release of the security Deposit.
The CE (P)/DGBR writes {under advice to the PCDA/ CDA/PCDA
(BR)} to all engineers to render him/her a "No Claim Certificate" to the
effect that :-
(i) There are no claims outstanding against the contractor.
(ii) A period of 12 months has passed since the completion of the

last contract executed by the contractor.
(iii) Any guarantee period in any particular contract executed by

the contractor is over.
(iv) Final bills in respect of all contracts have been paid.
Simultaneously, the CE calls for ‘No claim certificate’ in respect of

the contractor from the CE of other Commands endorsing a copy of this
communication to the PCDA/ CDA of those Commands. The PCDA/
CDA of the Command in which the security is lodged will on receipt of
intimation from the Chief Engineer call for "No Claim Certificates" from
the other Regional PCDA/ CsDA and from the AOs of his/her own
Command.
PCDA/ CDA of other Command will also take similar action in

respect of their areas on receipt of the first communication on the subject
from the CE / PCDA/CDA of the Command concerned. On receipt of (i)
"No Demand Certificate (IAFA 451)" (ii) No Claim Certificate" from
his/her AOs and (iii) "No Claim Certificates" from other PCsDA/CsDA,
the PCDA/CDA of the command or PCDA (BR) will refund the
Standing Security Deposit. The return of the documents will be noted in
625
the Security Deposit register under the signature of the Officer – in –
Charge ‘Works’ Wing.
7.16.2. Standing Security Deposit (other than those of Unlimited

Class)
For release of standing security in respect of Contractors who have
deposited "Standing Security" in each command in which they were
enlisted either with CE or any other authority, the same procedure
would be followed except referring to PCsDA/ CsDA of other
commands.
7.16.3. Refund of Security Deposit for Individual Contracts:
When security is lodged for particular contract the following

procedure is to be followed:
(a) The contractor applies to the Accepting Office with a "No Demand
Certificate" on IAFA 451 for release of security.
(b) When CE is the accepting officer he/she writes (under advice to

the PCDA/ CDA) to GE concerned with a copy to the CWE to
render a "No Claim Certificate" to the effect that :-
(i) There are no claims outstanding against the Contractor.
(ii) The maintenance period is over.
(iii) Any guarantee period specified in the CA is over.
(iv) The final bills have been paid.
(c) PCDA/ CDA on intimation from the CE calls for "No Claim
Certificate" from AOs.
(d) The CE writes to the CDA with the Contractor's "No Demand
Certificate" and GEs "No Claim Certificate" to authorize the GEs to
release the security.
(e) The PCDA/ CDA authorize the release of the Security after receipt
of certificates at (d) above and also the "No Claim Certificates"
from AOs.
626
(f) When Accepting Officer is other than the CE the procedure laid
down in Sub-Para (a) to (e) will be followed with necessary
modifications.
In case individual security is pledged to the Chief Engineer the

accepting officer will write to the PCDA/ CDA to notify the CE to
release Security.
627
7.17. STOCK VERIFICATION OF SECURITIES
Physical stock verification of securities will be conducted annually

in the month of April as well as at the time of transfer of charge of
section officers, and the result of such verification endorsed on the
Register of Securities under the signature of Officer In-charge in the
following manner:
"Certified that all the securities as shown in the Register of

Securities are physically in existence"
628
7.18. BILLS & PAYMENTS
Following types of Contractor’s bills are generated against the

works executed by MES, DGMAP & Border Roads Organization:
(i) Running Account Receipt (RAR) Bills:
(a) All RAR Bills in respect of MES Contracts are paid by o/o the
AOs (GE) subject to post audit in this section.
(b) All RAR Bills in respect of MAP Contracts are paid by the
‘Works Wing’ of the Regional PCsDA/CsDA .
(c) All RAR Bills in respect of BR Contracts are paid by o/o the AOs
(Project/ Task Force)
(ii) Final Bills:
(a) Final Bills in respect of MES Contracts having gross value of

work done up to Rs 10 Lakh are paid by o/o the AOs (GE)
subject to post audit in this section. Final Bills falling beyond
above limits will be pre-audited by this section and authorized
for payment by o/o the AOs (GE)
(b) All Final Bills in respect of MAP Contracts are paid by the
‘Works Wing’ of the Regional PCsDA/CsDA .
(c) All Final Bills in respect of BR Contracts are paid by o/o the
AOs (Project/ Task Force)
Bills submitted to the PCDA/ CDA's office must be audited before

payment thereof is authorized. Bills must be disposed of as
expeditiously as possible. Bills which do not involve much clerical work
will be disposed of within three days and others within seven days of
their receipt. When it is found necessary to return a bill un-passed, care
should be taken to see that it is not returned unnecessarily and that all
the objections are taken up together and not in a piece-meal manner.
Remarks and observations of a routine nature having no financial effect
629
do not warrant the return of a bill. In such cases, bills should be passed
for payment subject to compliance with necessary remarks and
observations.
Bills will be distributed to the task holders concerned and will be

audited by them in accordance with the general rules and instructions.
Thereafter, after completing audit enfacement bills will be submitted to
the AAO for check and submission to the Officer-in-Charge of the
section for his/her review and signing the payment order.
The Officer-in-Charge will attest any alterations made on the bill

while pre-auditing. After the pay order has been signed by the Officer-
in-Charge of the Section, the bill will be returned to the MES Officers
concerned for payment. In the case of bills paid by the Works Wing of
Main Office direct (viz. MAP Bills), payment will be released in favour
of contractors / suppliers electronically through an automated system.
A Check list on the audit of contractor’s RARs/ final bills is

appended at Annexure ‘7.18.A9’ to this Chapter.
630
7.19. POST – AUDIT OF BILLS
The list of bills paid during the month together with the necessary
supporting vouchers in original duly listed is rendered by the MES
Officers to the PCDA/ CDA concerned soon after the accounts of the
month is closed.
The paid vouchers received from MES Officers will be dealt with
as under:-
(i) Paid Vouchers in respect of bills already pre-audited by this

section will be forwarded to the Technical Examiner for post
payment technical check.
(ii) Paid Vouchers (including minus bills) in respect of bills paid by

the AOs (GE) will be post audited in the same manner as
prescribed in Annexure ‘7.18.A9’ to this Chapter.
(iii) The return of the vouchers forwarded to Technical Examiner will

be watched through a register.
631
7.20. DEMANDS
Demands are usually created out of short execution of a contract or

such similar circumstances wherein the contractor concerned does not
perform the work so entailed in the Contract Agreement. A Demand
Register (IAFA – 590) will be maintained for watching the following
items of Demands:-
(i) Amounts intimated for recovery from contractors on accounts of
fines imposed for delay in completion of works, etc., and the
amounts objected to in audit as over drawls in previous bills.
(ii) Over payment to Contractors including these notified by Technical
Examiners.
(iii) Recoveries on account of Arbitration awards in favour of the
Government.
(iv) Such other miscellaneous amounts on the consideration of the
PCDA/CDA.
A systematic watch over the clearance of these demands will be

kept. It will be ensured that the MES Executive Officers have been
complying with the procedure noted below in the cases of over
payments to the Contractors. Cases of serious delay in effecting
recoveries from the contractors will also be reported to the DAD HQrs
for communication to the IHQ of MoD (Army).
(i) A GE who cannot effect recovery of an over-payment within two
months from the date of its discovery or notification is to report
this fact to his/her CWE.
(ii) On receipt of such a report, the CWE is to inform his/her other
GEs with a view to recover the over-payment from the same
contractor. If recovery cannot be made within a further period of
two months, he/she is to report this fact to his/her Chief Engineer.
(iii) On receiving a CWE's Report, the CE is to inform other CsWE in
the Command with the same object. If the money cannot be
recovered within 6 months from the date of original discovery or
632
notification he/she is to report this fact to the E-in-C, IHQ of MoD
(Army).
633
7.21. ANNUAL REVIEW OF WORKS EXPENDITURE
Annual Review of Works expenditure forms the part of

Appropriation Accounts of Defence Services. It usually finds place at
Section IV of the above report which consist of total 5 sections. It ranges
from Para 12 to 24 of the above report and comprise of several
Annexures (Statements).
This report is rendered by Works Wing of Regional PCsDA/

CsDA in the month of July every year showing data pertaining to the
previous Financial Year i.e. up to 31st March of the year in which it is
being rendered.
The Annual Review of Works Expenditure reflects entire

expenditure incurred on works by the Defence Services through various
statements. It is prepared on a uniform basis and embodies all necessary
information in the prescribed statements. This report is rendered
through e-mode (e-suchna/ e-office) by the sub-offices/ PCsDA/CsDA
for auto-consolidation at DAD HQrs level.
The following statements are rendered in Annual Review of Works

Expenditure:
S. Relevant Para of the Contents
No. Appropriation A/Cs
1. Statement A Part-I Statement Showing variation of over 50% between
Para 13 the years original allotment and actual expenditure in
respect of works costing Rs 25 Lakh and above
carried out during the year
2. Statement A Part-II Statement showing details of non-budgeted works
Para 13 costing Rs 10 Lakh and above
3. Statement B Para 14 Statement Showing variation of over 10% between
the original estimates and actual final cost in respect
of works costing Rs 25 Lakh and above completed
during the year (with Annexure)
Annexure: List of all works costing Rs 25 Lakh or more
completed during the year
634
4. Statement C Part I Non-Compliance with basic rules laid down in DWP
Para 15 (a)
5. Statement C Part II Cases where there is delay in issue of Administrative
Para 15 (b) Approval.
6. Statement D Para 21 Irregularities in operation of Contracts
(a), (b), (c) & (d)
Annexure: Particulars of Contracts wherein extension of
time granted was 100% and above
D-1: Cases in which tenders other than the lowest
have been accepted
D-2: Cases of defective drafting of contract
D-3: Cases in which work was started / carried out
without concluding contract.
D-4: Cases in which contract rates / amount were
enhanced without increasing the scope of works to be
carried out by the contractor (s)
D-5: Cases in which long term contracts concluded
were not considered financially sound
D-6: Cases in which extension of time were granted.
Including Annexure showing particulars of Contracts
wherein extension of time granted was 100% and
above over the original period of completion.
D-7: Cases in which DOs were issued late or after the
completion of work.
7. Statement E Para 20 Statement Showing Rush of Expenditure in MES
during last month of FY
8. Statement F Para 18 Statement showing overall position of Rent & Allied
Charges as per LF Bills issued up to 28thFeb position
as on 30thJune
9. Statement G Para 23 Actual working of SSR- Contracts costing Rs 1 Lakh
or more
10. Statement H Para 22 Statement of Quantitative System of Stores
Accounting
11. Statement I Para 16 Statement Showing number of operational works
carried out during the FY and expenditure incurred
there upon
Annexure: Breakup of Allotment Vs Expenditure
Annexure: Job wise Construction Accounts
635
12. Statement J Para 24 Statement Showing the cases of Reduction/
remission of Departmental Charges for the Year
13. Statement K Part I Statement Showing comparison of actual expenditure
Para 12 with original grant and Final Grant for the FY
(Revenue)
14. Statement K Part II Statement Showing comparison of actual expenditure
Para 12 with Original Grant and Final Grant for the FY
(Capital)
15. Statement K Part I Statement Showing comparison of actual expenditure
Para 12 (MAP Works) with Original Grant and Final Grant for the FY
(Revenue)
16. Statement K Part II Statement Showing comparison of actual expenditure
Para 12 ( MAP Works) with Original Grant and Final Grant for the FY
(Capital)
17. Para 17 Loss Statements awaiting Sanctions
18. Para 19 Statement showing recovery of outstanding Barrack
Damages
19. Para 21 (e) Statement showing overpayment/short or no
recoveries from contactors still outstanding
636
7.22. Appropriation Accounts in respect of BRO
Appropriation Accounts in respect of BRO are prepared by the

Accounts Officers attached to BRO Units/Formations on the basis of
actual expenditure as per Printed Compilation at the close of the
Financial Year. The same is submitted to PCDA (BR) New Delhi, who
renders the consolidated Appropriation Account to Chief Controller of
Accounts, Ministry of Road Transport &Highways through DAD HQrs,
Delhi Cantt.
637
7.23. RE-APPROPRIATION STATEMENTS OF
BUILDINGS
In scrutinizing the re-appropriation statements of buildings, it will

be seen: -
(i) That the re-appropriation sanctioned is in accordance with the
relevant provisions of DWP as amended from time to time.
(ii) That relevant rule under which the sanction has been accorded is
quoted on the statement and covers the re-appropriation.
(iii) That if re-appropriation has been sanctioned for an authorized
purpose, authority in the Scales of Accommodation or other
authority issued by the Government is quoted in support and is
correct.
(iv) That in the case of re-appropriations for unauthorized purpose, the
question of recovery of Licence fee under the existing rules has
been taken into consideration.
(v) That in the case of re-appropriation of temporary nature the period
covered by the sanction is shown in the statement.
Note: In the case of permanent re-appropriations, a suitable note will be made
in the register of buildings.
(vi) That if the re-appropriation involves and extra cost to the State on
account of structural alterations, it has been sanctioned by the CFA.
(vii) A re-appropriation of an available military building for use as a
place of worship (free of Licence fee) will be scrutinized carefully
to see:-
a. That the Government is not /will not in future be faced with
a demand for new construction.
b. That no structural alterations are involved.
c. That the party concerned has agreed
i. To relinquish the building if and when this may be
required for any other purpose
638
ii. That no religious body will ever acquire any
permanent rights whatsoever over the accommodation
and
iii. That the property will not at any time be dedicated.
639
7.24. DEMOLITION STATEMENTS OF BUILDINGS
Demolition statement (IAFW – 1819) will be received in Works

Wing after they have been sanctioned by the Competent Authority.
These statements will be scrutinized to see that: -
(i) The demolition or sale of the building or structure is justified in

the circumstances recorded in the statement.
(ii) The AO's financial check certificate exists.
(iii) The cost of demolition and the value of the salvage materials is
recorded in the demolition statement.
(iv) The demolition or sale has been sanctioned by the competent

authority.
Note: For the purpose of determining the authority competent to sanction a

demolition statement the book value of each building (including subsidiary
buildings) will be considered separately.
640
7.25. TERMINAL COMPENSATION CLAIMS
Bills for Terminal Compensation Claims are to be subjected to a

thorough and exhaustive pre-scrutiny before payment. The pre-scrutiny
will be done either on the spot by an IDAS officer or a Sr. AO or by the
PCDA/ CDA as decided by him/her. Claims requiring the sanction of
the Government of India will be forwarded through the PCDA/ CDA.
The scrutiny should be thorough and exhaustive because recovery

of an overpayment from a third party will be almost impossible. It
should, therefore, be ensured that:-
(i) In cases where initial records of properties at the time these were
taken over by the Defence are not available, the relevant information
is obtained from the municipal records, land acquisition records, etc.
(ii) In cases where the information regarding initial records of properties

is not available, audit may rely on enquiry of DEO/MES Officers on
the testimony of respectable persons of the locality, panchayat, etc.
(iii) The compensation payable against each item has been assessed
having regard to its condition at the time of taking over.
(iv) In cases where schedules of dilapidations were prepared at the

time of release, the settlement will be effected on the basis of the
schedule prepared by the releasing Officer.
(v) The actual rates adopted for assessment of items compare favorably
with those shown in the "Schedule of prices” plus the percentage
generally quoted in respect of MES Works.
(vi) In cases scheduled rates are not applicable, it should be seen that the
assessment compares favorably with the market rates.
(vii) In assessing compensation no account has been taken of fair wear

and tear and reasons thereof are recorded.
(viii) Only depreciated value of damaged or missing articles in the case

of expensive fittings and fixtures have been allowed.
641
(ix) No element of loss or profit from properties has been made since
payment of rentals according to agreement covers this loss.
(x) When any premises are de-requisitioned, compensation for

moving back to these premises may be paid to the owner of the
valid lessee in accordance with the following principles :-
a. He/she may be reimbursed the reasonable expenses incurred by

him/her in moving back to his/her place to the original premises,
provided that the move back is affected within 4 months.
b. In determining whether the payment demanded is reasonable, the

amount which was originally paid for the removal of the residence
or the business consequent upon the requisition may be taken into
consideration with any increase that may have since taken place.
c. The expenses to be reimbursed may include the cost of storage (if

any) and the cost of re-erection of the plant or the machinery
provided the re-erection is on original site.
In considering a claim, it must be ensured that the reimbursement

of expenses is a part of the compensation for the requisition and can
only be allowed in respect of expenses which are incurred as a direct
and natural consequence of requisitioning.
Such a claim can only be entertained from the person to whom the
possession is granted on de-requisitioning. It may also be ensured that
the/she is the same person who was originally compelled to move out of
the premises consequent upon the requisitioning.
Besides the above points, the o/o the PCsDA/CsDA are at liberty
to scrutinize the claims in more detail to safeguard the interest of the
State. It may, however, be remembered that terminal compensation
claims are the contractual liability of the State and therefore should not
be linked with recovery or the write off of Barrack Damages.
All Terminal Compensation Claims will be pre-checked before
sanction on the above lines, whether they fall within the competence of
lower authorities or that of the Government of India.
642
Terminal Compensation Claims in respect of lands at the de-
requisitioning stage are assessed by the Collectors and no responsibility
devolves on the PCsDA/CsDA.
643
7.26. AUDIT OBJECTIONS
Apart from objections observed during regular audit, irregularities

of serious nature pertaining to Works coming to the notice during the
course of inspection/ audit will be reported to the Systems wing under
intimation to this wing for inclusion in the report of the MFAI.
Irregularities, which although not fit for inclusion in the report on

the MFAI but are considered by the sub-offices to be of sufficient
importance for bringing to the notice of higher executive authorities
because of their continued recurrence or after effects will be brought to
the notice of the higher authorities (Chief Engineers) under information
to this wing.
Draft Paras prepared after statutory audit of works accounts by

DADS will also be received in Systems & Works Wings simultaneously.
These will be dealt with expeditiously in consultation with the local
administrative authorities, so that they may be finalized within one
month of their receipt.
These Draft Paras will be concurred in personally by the PCDA/

CDA and a copy thereof will be sent simultaneously to the DAD HQrs
with an explanatory note containing the following information: -
(i) That the draft Para has been concurred in personally by the
PCDA/CDA.
(ii) That the local administrative authorities have been apprised of the
Draft Para.
(iii) Whether or not the irregularities mentioned in the draft Para were
detected in Internal Audit.
(iv) Disciplinary action taken or proposed to be taken if failure on the

part of DAD staff is involved.
644
7.27. ARBITRATION AWARDS
Detailed procedure to be adopted in dealing with arbitration cases

is envisaged in Manual on Contracts issued by E-in-C Branch, IHQ of
MoD (Army). Executive Authorities may approach ‘Works Wing’ for
assisting them in drawing up the Defence statement and advising the
MES representatives to defend the case, particularly on Accounting
Aspects. This wing may also be consulted finally in examining the
award and deciding whether it is acceptable to Government or
otherwise, including the course of further necessary action. The
PCDA/CDA's representative may also be present at the hearings so that
he/she may act as a prompter in cases where such promptings are
necessary in their opinion. However, the role of the DAD Officers both
while drawing Statement of cases and regarding implementation of
awards is purely advisory.
An Arbitration award is not executable until a decree is passed by

a Court in terms of the award. The Court will not take cognizance of an
award unless application requesting the court to cause the Arbitrator of
file the award in court is received within thirty days of the notice of the
award i.e. within thirty days from the date the notice of publication of
the award has been received. Immediate action should be taken for this
purpose in respect of awards where money is to be recovered from
contractors and where they are substantially in favour of the
Government.
An award should exclude ex-gratia payments. If such payments

are awarded by an arbitrator, they should be contested in the Court of
Law as they are outside the scope of the contract. However, the sanction
of the Government of India under Para 477 MES Regulations (1968
Edition), in respect of an award on ex-gratia claim is not required. It
ceases to be ex-gratia claim and the Government is bound to pay it
unless it is set aside in the appropriate Court.
In cases, where the award in favour of a contractor is acceptable to

Government and it is not proposed to contest or challenge its correctness,
645
payments may be made forthwith without waiting for the contractor to
file the award and obtain a decree thereon in terms of the award.
In case the award in favour of the contractor is not definitely

acceptable to Government, the same is to be challenged in court after
taking the legal opinion from the Government Pleader / Distt. Govt.
Counsel (DGC). Decision to implement or contest the award of the
arbitrator is to be taken by the Engineer Office (CWE in the case of
contracts concluded by CWE / GE / AGE (Indep.) and CE in respect of
contracts concluded by him/her.
A register to watch the progress and finalisation of the Arbitration

cases will be maintained centrally in ‘Works Wing’. The fly leaf
instructions and the Proforma of the register are given in Annexure
‘7.27.A10’ to this chapter.
646
7.28. Audit Reports: Charged Expenditure Cases
When a payment is to be made in satisfaction of an Arbitration
Award or a decree/ judgement of any Court, the payment will be
termed as ‘Charged’ on Consolidated Fund of India. Sanction for
Charged Expenditure and allotment of funds under charged head falls
under the powers of concerned Service HQrs. It should be ensured that
all the sanctions for charged expenditure received within a financial year
are exhausted well within the financial year concerned, otherwise the
sanction so obtained will lapse and a fresh sanction will be required to
be obtained in the new financial year.
At times, due to delayed serving of award or processing of cases

by Executive Authorities, it is not possible to obtain Charged
Expenditure Sanction and allotment of funds in time limit allowed in the
award/ judgement. PCsDA/CsDA are therefore compelled to make
provisional payments in order to avoid contempt in such cases. Such
provisional payments are however, to be watched till finality by this
Wing i.e. till their regularization on receipt of Charges Expenditure
Sanction & Allotment of Funds from service HQrs concerned are
received.
Statement of Case and other connected documents seeking

Charged Expenditure Sanction and allotment of funds in each case will
be received in this wing from Executive Authorities for scrutiny
&rendition of Audit Report.
While scrutinising proposals for Charged Expenditure Sanction

and allotment of funds for rendition of Audit Report, it will be seen that
the proposal comprise of following documentation:
(i) Check List
(ii) Detailed Statement of case.
(iii) Brief History of the Case
(iv) Details of Calculation Sheet for amount for which sanction is
sought.
647
(v) Memorandum of Award
(vi) Summary of Disputes
(vii) Delay Report
(viii) Copy of Arbitration Award
(ix) Copy of Judgment of Court
(x) Copy of legal Opinion of Central Govt. Standing Counsel
(xi) Decision of Accepting Officer for implementation of Award/
Judgement
(xii) Certificate of Charged Expenditure
(xiii) Recommendations of Chief Engineer
648
7.29. MEASUREMENT BOOK
The Measurement Book or MB forms the very basis of any work

execution wherein detailed point wise records are entered by the
executive authorities concerned. The MB contains specific numerical
entries to exhibit compliance with the corresponding entries in the
Costed Schedule of Works. This forms the source document which is
required for assessment of contractual liability at the time of admission
of Contractor’s bill for payment.‘ Annual Census Report of
Measurement Books’ will be carried out by the sub-offices in the month
of April each year. On receipt of the above report in this section, it will
be seen that there is no loss of ‘Measurement Book’.
649
7.30. LOSS OF MEASUREMENT BOOK
In case, of any Measurement Book is missing, action has been

taken to hold Court of Enquiry to fix the responsibility for the loss of
Measurement Book & for reconstruction of the same. Audit report for
fixing the responsibility for the loss of Measurement Book & its
reconstruction will be rendered by this wing.
650
7.31. LEASE AGREEMENTS IN RESPECT OF BORDER
ROADS LAND WHICH COME UNDER THE FINANCIAL
POWERS OF ADGBR/ DGBR
Before rendition of audit report the Lease Agreement will be

scrutinized to see:-
(i) That the necessity has been accepted by the competent authority
stating the purpose of hiring /lease;
(ii) That the authority which concluded the Lease Agreement is

competent to do so;
(iii) That the Agreement has been concluded in the standard format;
(iv) The terms of contract must be precise, definite and without any
ambiguities. The terms should not involve an uncertain or
indefinite liability.
(v) That the Agreement has been signed by both the parties.
(vi) That the period of lease/hiring, financial effect and payment terms
have been clearly mentioned;
(vii) That the approved site plan /layout of the property has been
attached.
(viii) That the entitlement of the property is clear and free from
encroachment.
651
7.32. PROPOSALS ON ACCOUNT OF ADVANCE
PAYMENT TO OTHER CENTRAL GOVT. DEPARTMENTS/
STATE GOVT/PSUs, etc. RELATING TO CIVIL WORKS
AOs (GE) can make advance payment for Agency services in

respect of Central Govt./ State Govt./ Public Sector Undertakings up to
Rs 10 Lakh after pre-audit. Payments on the same account exceeding Rs
10 Lakh and Final Bills thereof will be paid after concurrence/ pre-audit
by the Works Wing of the PCsDA/CsDA.
All advance payments on account of work done by Municipalities,

Local Bodies, etc. will be made after pre-audit by the Works Wing of the
PCsDA/CsDA irrespective of their value.
On receipt of proposal for advance payment to Central Govt./

State Govt./ Public Sector Undertakings/Municipalities, Local Bodies
etc., it will be examined to see that Govt. interest is safeguarded at all
times even after making advance payment. After ensuring the same
Audit Report for releasing payment in favour of above entities is issued
by the ‘Works Wing’.
652
7.33. PROJECT APPRAISAL/PROJECT REVIEW
As a result of scrutiny of various financial reports, physical &

financial progress Report and analysis of IFA works done by the
Account Officer, the officer-in-Charge of ‘Works Wing’ will select at
least 10(ten) Major projects/Jobs costing Rs.50 lakh and above for
performance review.
The under mentioned criteria will be adopted for selecting a

Job/Project for performance review. The Projects/Jobs in which:
(i) Mismatch of Physical & Financial progress is more than 20%;

(ii) Job(s) which have not been completed within PDC.
(iii) Not completed within AA+10% tolerance limit;
(iv) Excess expenditure incurred over allotment;
(v) Transfer/withdrawal of expenditure incurred in the past year has
occurred;
(vi) Operation of irregular T.E. to transfer of expenditure or transfer of
stores etc. has occurred;
(vii) Flow of expenditure is abnormally high or low;
(viii) Physical progress of the Job is abnormally low;
(ix) Job(s) have been foreclosed after incurring certain expenditure.
After selecting the Major Projects/Jobs based on above criteria, the

Officer-in-Charge of the Work Section will collect detailed information
of those works from the concerned AO (P)/AO (TF) to carry out the
project review.
The outcome of such review will be communicated to

BRDB/DGBR/CE to enable them to take corrective measures where
necessary. Any serious irregularities noticed during project review may
also be considered for inclusion in the MFAI/IAR and communicated to
the ‘Systems Wing’.
653
7.34. MONITORING OF IFA WORKS DONE BY SUB-
OFFICES
The IFA work assigned to the Accounts Officers attached to BRO

Units/Formations will be monitored through a Monthly Progress Report
on IFA works. The report will be scrutinized to see that:-
(i) All the proposals have been cleared within the stipulated time;
(ii) The quantum of liability committed does not exceed the allotted
budget for the financial year;
(iii) Quantum of local purchase of stores commensurate with the

assigned target and allotted budget;
(iv) Numbers of contracts and liability committed through contract

commensurate with the assigned targets and allotted budget;
(v) Liability committed through contract or by placing supply orders

have been taken into the liability report.
(vi) Any financial advice by which substantial savings have been

achieved, have been incorporated in the report.
(vii) Proposal, if any, withdrawn by the executives due to advice of the

IFA; full details of the case have been furnished.
654
7.35. PAYMENT OF COST OF MAINTENANCE OF
P.O.W. CEMETERIES
Bill for the cost of Maintenance of Prisoner of War Cemeteries will

be received in Works Wing of CDA (Army) Meerut, who will pay to the
UK High Commissioner in India, annually in advance on 1st of April
each year the cost of maintenance of Prisoner of War Graves at Rs. 5 per
Grave. A certificate will be obtained from UK High Commissioner in
India, in support of the claim, that the graves for which the maintenance
charges have been claimed are in existence and that the graves for which
the advance was obtained in the previous year have actually been
maintained.
655
7.36. VERIFICATION AND ADJUSTMENT OF THE
COST OF VEHICLES ISSUED BY THE ARMY TO THE MES
IN THE HALF-YEARLY STATEMENT RENDERED BY IHQ
OF MOD (ARMY)
Works Wing of o/o the CDA (Army) Meerut is responsible for

carrying out half yearly adjustments (half year ending 30th September
and 31st March) on an All – India basis in respect of vehicles issued from
Army Stocks to MES.
For this purpose, the E-in-C Branch, IHQ of MoD (Army) is

required to send half yearly statement showing details of vehicles issued
from Army to MES for the half year ending 30th September / 31st March,
duly verified by the DFA (W) and MGO's Branch IHQ of MoD (Army)
and priced by the DFA (O).
It will be the responsibility of the LAOs of the consignor Depots to

forward to the CDA (Army) Meerut receipted copies of relevant issue
vouchers for adjustment as shown in the statement rendered to by the E-
in-C Branch, IHQ of MoD (Army). Works Wing of o/o the CDA (Army)
Meerut will watch that these receipted vouchers are received from the
LAOs concerned.
656
7.37. ADJUSTMENT OF DEPARTMENTAL CHARGES
FOR WORKS DONE BY MES IN RESPECT OF NAVY / AIR
FORCE
As already mentioned at introduction to this chapter, MES is part

and parcel of Indian Army. Therefore, departmental charges at the rates
notified by the Government from time to time are levied on works
carried out by the MES for Indian Navy & Indian Air Force.
For this purpose, o/o the CDA (Army), Meerut is centrally

responsible for carrying out this adjustment on All – India basis. After
carrying out necessary adjustment a report to this effect is sent to DFAs
of all the three services at MoD (Fin.)
657
7.38. REPORTS & RETURNS
This wing deals with scrutiny & critical analysis of following

reports & returns received from sub-offices through e-mode (e-
suchna/e-Office):
(i) Monthly Expenditure Returns (MER) for MES, MAP & BRO Works
(separate reports).
(ii) Monthly Liquidated Damage Report (Border Roads).
(iii) Monthly CP Vouchers/ POL Vouchers report.
(iv) Monthly Report on Outstanding TBOs.
(v) Monthly Report on Outstanding Inter-departmental transfers.
(vi) Monthly Report on Outstanding Demand against contractors
(vii) Monthly Report on Outstanding Rent and allied charges
(viii) Monthly Liability Report (Border Roads).
(ix) Quarterly Progress report on CR Part-‘A’ & ‘B’ (Border Roads)
(x) Quarterly report on Transfer Entry from sub-offices.
(xi) Quarterly Physical & Financial Progress Report (Border Roads).
(xii) Annual Census Report on BRO land holding rendered by BRO

authorities.
(xiii) Annual Census Report on Measurement Book.
658
7.39. SUB-OFFICES INVOLVED IN WORKS
ACCOUNTING
7.39.1. Accounts Officer (Garrison Engineer)

A Senior Accounts Officer/ Accounts Officers is generally posted
as an in-charge of Accounts Section of the MES division {headed by GE/
AGE (I)} and as such is named as Accounts Officer (Garrison Engineer)
{AO (GE)}. He/ she discharges following three-fold duties:
(i) To ensure that the Accounts are maintained correctly and upto
date.
(ii) To assist MES Officers in prompt payment/adjustment for
supplies and services rendered by contractors and others.
(iii) To render necessary financial advice to the MES officers to enable
them to properly discharge managements functions.
659
7.39.2. Assistant Accounts Officer (Barrack/ Stores
Officer)
A separate branch functions in the MES to deal with the recovery
of licence fee and allied charges and supply, hold and issue of furniture
and stores. It is called the Barrack/Stores Branch wherein
Barrack/Stores Officer (BSO) is in-charge of this sub-division under the
division of the Garrison Engineer. A Separate A.A.O. with the necessary
Staff is attached to the Office of every Barrack/Stores Officer who is
responsible for the Revenue work of this Branch.
660
7.39.3. Accounts Officer (Project/ Task Force/Base
Workshop/Stores Division/Records GREF/ LCGDBR)
Functions and responsibilities of Accounts Officer (Project)/
Accounts Officer (Task Force)/ Accounts Officer (Base
Workshop/Stores Division)/ Accounts Officer (Records GREF)/
Accounts Officer LCGDBR) are more or less the same in relation to
Border Roads as those of the functions and responsibilities of AO (GE) in
MES with the exception to ensure that the resources placed at the
disposal of GREF Formations are utilized for the purpose for which
these are meant. For this purpose, DCDA/ACDA/SAO/AO/AAO will
also act on behalf of PCDA (BR) as his accredited representative as an
Integrated Financial Adviser to the respective Chief Engineer Project
and Commander Task Force.
661
7.40. ROLE & FUNCTIONS OF AO (GE)
The following is a list of the main items of work done in the AO

(GE)'s office:-
(i) Scrutiny and check of allotments and appropriations
(ii) Check of bills and other vouchers including allocation before

submission to the PCDA/C.D.A. for audit
(iii) Check of all bills and voucher paid by the GE/ Imprest Holding
SDOs, from their Cash Assignment/ Imprest.
(iv) Check of various accounts & registers maintained by GE
(v) Maintenance of prescribed registers & ledgers
(vi) Verification of Annual Returns of electric and water, etc.

installations.
(vii) Check of construction accounts and preparation of abstracts

thereof.
(viii) Local audit of all numerical and quantitative store ledgers,

accounts etc. maintained in sub-divisional offices, issue of
objection statements thereon and watching their final settlement
through an audit progress register.
(ix) Scrutiny of contract documents concluded by the GE and

forwarding of the original attested copy of the Contract
Agreement along with copies of relevant Administrative
Approval, Technical Sanction and Work Order No.1 to the
PCDA/CDA.
(x) Issue of quarterly statement of items held under objection in form,

IAF (CDA) 262 to the executive and their submission in duplicate
to the PCDA/ CDA by the 15th of the second month following
that to which the statement relates.
662
(xi) Pay Fixation in respect of Industrial Personnel deployed in the
MES Formation.
(xii) Forwarding of Final Settlement cases of GPF in respect of

Industrial Personnel to the office of CDA (Funds) and that of
Non-Industrial Personnel to the Personnel (Payment) Wing of the
PCDA/CDA Office.
(xiii) Audit of Store Accounts of Sub-Divisional Office including check

of all the numerical and quantitative stores ledgers, accounts, etc.
maintained in those offices. However, local audit of the GE office
will be done by the LAO/RAO as per extant orders on the subject
(MESLAM).
(xiv) Verification of 25 years of qualifying service in respect of

Industrial staff posted in the MES Formation. However,
verification of qualifying service in respect of Non-Industrial staff
will be dealt with in the Personnel (Payment) Wing of the
PCDA/CDA Office.
(xv) Pre-audit and payment of Contractor’s Final Bills in case of

contracts in which gross value of work done does not exceed Rs
10 Lakh.
(xvi) Advance payment for Agency services in respect of Central

Govt./ State Govt./ Public Undertakings up to Rs 10 Lakh after
pre-audit. Payments on the same account exceeding Rs 10 Lakh
and Final Bills thereof will be paid after concurrence/ pre-audit
by the ‘Works Wing’ of the PCDA/CDA. However, advance
payment on account of work done by Municipalities, Local
Bodies etc., will be made after pre-audit by the ‘Works Wing’ of
the PCDA/CDA.
(xvii) Performance of duties of PAO NPS (National Pension System) for

recovery/ remittance of contribution and uploading of NPS data
onto NPSCAN etc., of subscribers to NPS in respect of Industrial
employees serving under MES Establishments.
663
7.41. ROLE & FUNCTIONS OF AAO (BSO)
The following is a list of the main items of work done in the AAO
(BSO)'s office:-
(i) Maintenance of:

a. An up-to-date record of rentable buildings.
b. Revenue ledgers,
(ii) Scrutiny and check of occupation returns, returns of recoveries

statements showing hire charges of furniture and refrigerators etc.,
and posting thereof in the revenue ledgers.
(iii) Preparation and issue of licence fee bills and watching the receipt
of acknowledgements from the PAOs and duplicate copies of the
top lists from the Principal Controllers / Controllers offices.
(iv) Audit of meter readers’ books and consumers ledgers of electricity

and water, etc.
(v) Check of:

a. Water and electric bills issued to consumers billed for direct
by B.S.O.
b. Quarterly vouchers for supply of water to paying consumers
c. Bills for payment of water and electricity charges to private
agencies with the meter readers' books so far as quantities
are concerned.
(vi) Watching the recovery of landing and housing charges billed for
by the MES authorities against private companies
664
7.42. MAIN FUNCTIONS & DUTIES OF ACCOUNTS
OFFICES ATTACHED TO BRO UNITS/FORMATIONS
7.42.1. Duties as an Accountant:
(i) Scrutiny of appropriation and re-appropriation of funds;
(ii) Scrutiny of BE/RE;
(iii) Classification/Categorisation, Codification and Compilation of the

transactions occurred in HQ Project in Financial Accounts through
PM;
(iv) Preparation of abstract of receipt and charges ;
(v) Preparation and submission of Monthly Expenditure Statement;
(vi) Preparation and submission of SAO’s Accounts;
(vii) Scrutiny of Monthly Expenditure Return in respect of HQ Project ;
(viii) Monitoring progress of expenditure over allotment under various

heads of accounts as well as over the sanctioned amounts for a
Job/project. He/ she will immediately bring to the notice of the
Executive Authorities all such cases in which progress of
expenditure is considered to be abnormally high or low;
(ix) Adjustment of Payment Issue Vouchers;
(x) Preparation and forwarding of License Fee Bill;
(xi) Reconciliation of Cash Book with Bank Statement;
(xii) Reconciliation of PM and consolidated MER & MES;
(xiii) Monitoring clearance of liabilities
(xiv) Adjustment of MROs, CP Vrs, Rly. Warrants, CC/MC Note, etc.
665
7.42.2. Duties as an Internal Auditor:
(i) Audit of all kinds of Sanctions and Orders issued by the CFA
lower than the Govt. of India,
(ii) Audit of Adm Approval & Technical Sanctions,
(iii) Post Scrutiny of Contract agreement, Amendments & Deviation

Orders;
(iv) Authorization of payment after pre-audit in respect of following:

a. Local Purchase Bill,
b. All personal claims of GREF Officers/Personnel except
CEA/Hostel subsidy;
c. Contingent bill relating to Telephones/Telegrams/Service
levels, Mess Maintenance Allowance, Amenity Grant, ETG,
ATG, Office Equipment, etc.
d. Compensation claims under Workmen’s Compensation Act-
1923,
e. Claim on Terminal compensation on surrender of hired
property,
f. Contingent bill relating to hired building/transport;
g. Pre-audit and authorization of payment in respect of items
procured by CE(Project) under the delegated financial power
of CE(P) where prior concurrence of Officer-in- Charge of
AO(Project) is not necessary;
h. Authorization of payment made in satisfaction of Court of
Law;
i. Temporary withdrawal from GPF;
(v) Scheduling of Vouchers;
(vi) Custody and Refund of Earnest Money Deposit and Security

Deposit;
666
(vii) Authorization of payment on account of Contract on Annual
Maintenance Service.
(viii) Pricing check/Scrutiny and rendition of Audit Report on Loss

Statement, Condemnation Board Proceeding etc.
(ix) Scrutiny/pre-audit and payment/ adjustment of Sale Accounts,
(x) Scrutiny and pre-audit of legal Fee Bill and authorization of

payment thereof,
(xi) Scrutiny and pre-audit of lease agreement and authorization of

payment thereof,
(xii) Concurring Pay Fixation & verification of Data Sheet/Pension

Papers, Qualifying Service in respect of GREF Officers/Personnel
7.42.3. Duties as a Financial Assistant & Advisor:
(i) To advise/assist the head of the unit/formation in all matters

relating to accounts, budget estimates and operation of financial
rules;
(ii) To guide executive authorities regarding cost effectiveness and

suggest mid way corrections, if necessary;
(iii) To assist the head of the unit/formation through personal

interaction in their day-to-day activities to achieve the assigned
target within the stipulated time with greater economy and
efficiency and to identify the areas of shortfall through effective
planning.
7.42.4. Duties as an Integrated Financial Advisor (IFA) :
(i) Scrutinize all procurement proposals and accord concurrence.
(ii) Scrutinize Contract Proposals and accord concurrence thereof.
(iii) Scrutinize all Approximate Estimate of Works/ Special Repairs of

Monsoon Damage (SRMD)/ Immediate Restoration of Monsoon
Damage (IRMD)/ Periodical Maintenance Works (PMW)
667
sanctioning power of which comes under the delegated financial
power of CE(Project)/ Commander Task Force.
668
IAFW - 1816
Register of Approvals
S. No. & Date of Issuing Job No. Amount Code Time of

No. letter conveying Authority Head Completion
Adm. Approval in weeks
& date of
receipt
1 2 3 4 5 6 7
No. & Date Issuing Amount Revised No. & Date Issuing Amount
of letter Authority Time of of letter
conveying Completion conveying Engineer
Revised Technical Authority
Adm. in weeks Sanction
Approval (s)* & date
of receipt
(if any) &
date of
receipt
8 9 10 11 12 13 14
669
Contract Accepting Amount Name of Date of Probable Completion
Agreement Authority the Work date of Cost
(s) No. & Contractor Order No. 1 Completion
Year &
date of
receipt
15 16 17 18 19 20 21
* Multiple Technical Sanctions & Contract Agreements can be linked with a

single Admin. Approval and vice-versa.
670
FLY LEAF INSTRUCTIONS

REGISTER OF APPROPRIATIONS
OBJECT
1. To keep an account of Funds placed under various Budget Heads

in the original Sanctioned Estimates or by Re-appropriations and
to watch that the Aggregate amounts of Sub-Allotment thus made
do not exceed the total Appropriation placed at their disposal.
2. The Register will be maintained in IAFW-2244. Separate register

will be opened for:
(a) Major Works
(b) Minor Works
(c) Maintenance of Buildings, Communications, etc. and

Maintenance of Installations / Workshops.
(d) General Charges.
Separate sets of registers will be maintained as above for

Army, Navy, Air Force, etc.
3. Indices for Command and each CWE should be opened under

each Index. The particular work for which the amount is allotted
and the page in which the allotment has been entered should be
indicated.
4. The number and date of the letter under which allotment or re-
appropriation is communicated would be shown in the column
provided and at each stage; the balance un-allotted as exhibited in
Col. 8 of the register should be agreed with the balance shown in
the allotment / re-appropriation letters. The file and page number
where the letters of allotment is recorded should be indicated
under the No. and the date of the letter.
671
5. Rules for the allotment and transfer of funds are given in the
Defence Works Procedure. It will be seen that orders contained
therein have been closely followed.
6. The above register will be made use of in checking expenditure

returns and Annual Review Statements, where necessary.
7. Entries in the register will be made under each detailed head

except when additional funds are allotted to a work for which an
entry already exist in the register. In such a case, the serial number
assigned to the first entry be repeated in red-ink.
8. Entries in the register will be attested by the task-holder making

the same and certified by the AAO regarding their general
correctness.
9. The register will be submitted to the officer, I/C of the Works

Wing on the 20th of each month.
Register of Appropriation I.A.F.W. – 2244
Head...................................... Area..............................
Sub Area .......................
Item Particulars Original Reduction Total Allotment Total of Balance Remark

No. & appropriation appropriation made allotment un-
Authority and additions after each allotted
transaction
1 2 3 4 5 6 7 8 9
672
FLY LEAF INSTRUCTIONS

REGISTER OF CONTRACTS
OBJECT:
This register will serve as a list of original contract Agreement

received and recorded with the PCDA/ CDA. The Register will be
consulted at the time of preparation of the Annual Review of Works
Expenditure statements relating to the working of Contracts.
1. This register will be maintained in the Proforma appended below.

Separate pages will be set apart to record contracts concluded by
the CWE/ CE.
2. All contracts concluded by various authorities during the financial

year will be entered in this register. On receipt of a copy of the
acceptance letter from the accepting officer with the CST, column 1
to 10 of the register will be completed. The register will then be
submitted to the AO along with the acceptance letter and CST.
Columns 12 and 13 will be completed subsequently on receipt of
the original Contract Agreement and dispatch of the certified copy
thereof after scrutiny, to the AO concerned.
3. In case of contracts concluded by the GE, column no. 1 to 13 of the

register will be completed on receipt of attested copy of the
Contract Agreement from AO (MES)
4. During the scrutiny of the Contract Agreement if it is found that

the Contract Agreement is based on pre-priced schedule 'A' the
fact will be noted in column 16 of the register.
5. After payment of the final bill the original Contract Agreement

along with the deviation orders etc., will be sent to “Establishment
Wing” for custody duly bound.
6. Column no. 14 and 15 will be completed after ascertaining the

bound volume No. from the "Establishment Wing".
673
7. The drawings (if any), should be kept along with the Contract
Agreement, but wherever it is not possible to file the drawings
along with the Contract Agreement due to the unusual size of the
drawings, they may be kept separately in safe custody of the
Officer-in-Charge and the fact noted in the Contract Agreement
file and in column 16 of the Register. When the CAs are sent to
Establishment Wing the concerned drawings will also be sent to
them for safe custody.
8. This register will be consulted at the time of preparation of

Statement ‘D’&‘G’ of the Annual Review of Works Expenditure.
9. This register will be submitted to Sr. AO/AO once a month and to

the GO once a quarter.
REGISTER OF CONTRACTS
Contract Name of Description Name of Contract Percentage Period of Whether
Agreement the of the Bank the Amount above or contract in tendered
No. & Year Division Contractor below SSR case of through
term open
contract competition
and
Handling
Contract
1 2 3 4 5 6 7 8
Whether Date of Initials Date of Date of Date on Bound Remarks Initial of

lowest acceptance of the receipt of return/ which volume the AAO
tender AAO contract receipt of sent to No. in
was agreement the record which
accepted main certified for the
office copy of binding contract
post the etc. is
scrutiny contract recorded
(CWE/CE agreement
contracts) to/ from
the AO
MES
9 10 11 12 13 14 15 16 17
674
CHECK LIST FOR SCRUTINY OF CONTRACTS BY

WORKS WING
1) Information regarding earnest money and security as required in
CST has been given.
2) No. and date of the communication under which SS Bond duly

pledged in favour of PCDA/ CDA has been / will be forwarded to
Main Office has been given.
3) Reference to the communication under which documents

regarding security / additional security where required has been
sent to Main Office has been given.
4) The reasons for in-adequate responses from contractor have been

furnished. Action proposed to be taken to stimulate better
competition has been indicated.
5) e-tendering has been resorted to.
6) The Contractors have been allowed a period of three to four weeks

to submit their tenders.
7) Amendment issued to the notice of tender has been incorporated

in the contract by addition of an amendment.
8) If, however, the case is one of re-tendering the CST relating to the
first set of tenders has been forwarded.
9) Administrative Approval along with AEs and Technical sanction

along with CSW quoted on the CST have already been received.
10) In case of single tender contract a single tender report in terms of

Para 392 MESR has been rendered to the next higher authority and
a copy endorsed to Works Wing.
675
11) The contractor was asked to reduce his/her rates which are
freakish in nature.
12) The period of submission of contract documents to Sub-office/

Main Office of PCDA/CDA has been adhered to.
13) The contractor was brought on the approved list before awarding
the contract. His/her Index No. and date of enlistment are given.
14) All Amendments to IAFW – 2249 have been incorporated in the

contract.
15) All Errata to Standard Forms have been incorporated in the

contract.
16) The work being sanctioned under provision of urgent works in

DWP, a copy of the report has been sent to the CFA and copy
endorsed to Main Office.
17) In case the contract amount exceeds the amount of Admin.

Approval revised Admin. Approval has been accorded before
acceptance of the contract.
18) All drawings have been received.
19) Drawings are based on designs approved by the E-in-C. If not,

sanction of the Govt. of India has been obtained for deviation from
E-in-C's standard drawing.
20) CA No. and year have been noted on the reverse of the drawings.
21) The exact No. and location of points from which supply of water /
electricity will be made available have been specified/indicated.
22) If the contract caters for supply of water by MES, the contractor
has expressed his/her willingness in writing to draw water from
MES source of supply.
676
23) The name of the signatory of the CA has been indicated and a
certified copy of the powers of attorney / affidavit / partnership
deed / Memorandum of articles of Association has been
forwarded.
24) That the contract agreement concluded is for the services for which
the MES is responsible under rules;
25) That the terms and conditions of the contract are so worded as not
to admit of any two alternative interpretations being placed
thereon;
26) That the contract does not include uncertain or indefinite liabilities
for either side;
27) That the legal aspects of the contract have been considered where
necessary;
28) That no undue liability is imposed on Government due to

omission of necessary clause or insertion of unauthorized clauses
or by faulty wording of any condition for the supply of materials
or labour or other facilities to the contractor;
29) That the contract has not been made by or on behalf of a minor;
30) That the authority concluding the contract on behalf of

Government is competent to do so. In the case of a "Term
Contract" for a period of more than a year the authority competent
to accept a contract is determined on the basis of the estimated
value of one year's approximate work;
31) That prior sanction of the E-in-C, is obtained where a departure

from the existing procedure is involved or where special tenders
such as "Cost Plus" type are invited;
32) That an index letter and serial number has been allotted to the
contract;
677
33) That the Administrative Approval has not lapsed and the contract
is not likely to cause an excess over the amount of the
Administrative Approval;
34) That the details of the original works(s) and special repairs shown
in Schedule 'A' of the Contract Agreement conform to the
Administrative Approval and Technical sanction thereof;
35) That works which provide for the restoration of buildings, roads;
installations or services rendered unusable by a extraordinary
cause e.g. a building damaged by storm, fire or earthquake, are
treated as original works and not ordinary / special repairs;
36) That works involving the demolition of buildings and rebuilding

them over existing foundations either to existing or improved
specifications are treated as original works and not as normal /
special repairs;
37) That the sanction of the Chief Engineer of the Command to the
hire of the T & P at the rates shown in the Schedule 'C' of the
contract Agreement exists;
38) That the rates of hire of Government transport mentioned in

Schedule 'D' of the Contract Agreement conform to the rate
prescribed for the purpose;
39) That the contract does not overlap any existing contract;
40) In addition to the general checks mentioned above, the following

special instructions will be followed in the scrutiny of the
contracts:-
(i) Term Contract (IAFW-1821)
(a) Prior concurrence of the CE has been obtained for a term

Contract covering a period of more than one year up to 2
years;
678
(b) Where a limit lower than Rs. 20,000 has been specified it
will be seen that the approval of the CWE concerned has
been obtained thereto;
(c) In schedule 'B' of the contract only those stores are included
which either come under the category of controlled stores or
are difficult to obtain in the open market. This system will
have the effect of lowering the Contractor's rates as the
contractors are saved the risk and trouble caused by non-
procurement of these stores.
(ii) Lump Sum Contract (IAFW-2159)
It will be seen that:-
(a) The services for which the contract has been concluded do
not come under the term contract for the area.
(b) A certificate has been recorded on the contract agreement

that the Contract and Schedule of Errors have been checked
by S.W. with Bills of Quantities.
(c) The deviation percentage inserted in the contract is in

accordance with the orders issued by the E-in-C.
(iii) Measurement Contract (IAFW-1779) at a fixed percentage above

or below the rates given in the Schedule of prices. In the following
circumstances it is permissible that Measurement Contracts may
be executed for new works and maintenance services beyond the
limit of Term Contract:
(a) When it is considered imperative to commence work without

the delay which the preparation of Bills of Quantities might
involve.
(b) In other special cases e.g. when the local contractors are not
capable of tendering on lump sum basis.
679
(c) When there is difficulty in estimating the quantities correctly
until the work has been commenced (e.g. extensive root or
floor repairs or other large internal alterations).
In cases (a) and (b) above, it will be seen that prior approval
of the engineer authority immediately superior to that empowered
to make contracts has been obtained unless the contract is accepted
by the Chief Engineer in which case he/she will be the deciding
engineer authority.
(iv) Item Rate Contract (IAFW-1779-A):
Check the rates in the contract with the Schedule of prices and
scrutinize special rates, if any,
(v) Running Contract for supply of material (IAFW-1815-R)
(a) See that the rates at which materials are to be supplied, time
allowed for delivery, place of delivery, etc., are specified.
(b) See that IAFW-1815-Z (General Conditions) is attached with

the contract.
(vi) Contract for conveyance of materials (IAFW-1815-A):
(a) Ascertain if the ASC are unable or unwilling to carry out the
conveyance of material on behalf of the MES.
(b) Compare the rates allowed with these of the ASC Contract if
any,
(c) A conversion table is invariably appended to the contract in

cases where the unit provided for payment is different from
the unit on the basis of which stores are conveyed.
(vii) Tender and Contract for Piece Work (IAFW-1780):-
(a) See that Contract is confined to the executed of a specific

work only.
680
(b) See that it is concluded in respect of a piece of work where a
rate only is agreed upon without reference to the total
quantity of work to be done, or to the work to be done
within a given period.
(viii) Contract for supply of furniture (IAFW-1815-R):
(a) See that the articles of furniture, for the supply of which the
contract has been concluded, are the authorized articles of
MES supply.
(b) Compare the rates with the furniture rate list.
(ix) Contract for Tube Well Boring:-
See that the instructions laid down in Manual on Contracts

are followed in concluding such contract.
(x) Agreements for lease of Government Buildings to Private

individuals:-
See that the provisions of the Rules with regard to the insurance of
the buildings in Para 637 MES Regulations have been observed.
(xi) Electrical and Water Supply Agreements:-
(a) See that the model form of Agreement for supplies to or by

the MES, as given in Appendix 'M' to Regulations for MES,
has been used.
(b) See that the rules regarding the execution of such agreements
as given in Section 10 of MES Standing Orders have been
followed.
(c) See that in the case of Agreement for electric supplies

received from outside sources, the rates charged for electric
energy supplied to the military Buildings are not in excess of
the limits of price provided for in the supply company's
Licence.
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(xii) Contract for Handing Engineering Stores (IAFW-2320):-
(a) See that the conversion table at Schedule 'B' agrees with the
Weight/ Conversion shown for corresponding items in
Standard Demand List of Engineer Stores (S.D.L.E.S.).
(b) See that the various processes given at Schedule 'A' do not
overlap each other.
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FLY LEAF INSTRUCTION FOR CRITICAL REVIEW

REGISTER
OBJECT:
To have a day-to-day record of points noticed during the scrutiny of

contracts for utilization in the preparation of statements of Annual Review of
Works Expenditure relating to the working of contracts.
1. The register will be maintained in the Proforma given below. A few
pages will be set apart to record the irregularities of the following
nature.
(i) Cases in which tenders other than the lowest have been accepted.
(ii) Cases showing defective drafting of contracts.
(iii) Cases in which work was started or carried out without concluding any
contract.
(iv) Cases in which the contract Rates / Amounts were enhanced without
increasing the scope of work(s) to be carried out by the contractor(s).
(v) Cases in which long term contracts are not considered to be financially
sound.
(vi) Miscellaneous cases.
2. Cases of extension of time will be recorded in a separate register
maintained for this purpose.
3. Entries in the register will be made throughout the year as and when
cases come to notice. Each entry in the register will be attested by Sr.
AO/AO and GO.
4. When the Annual Review of Works Expenditure is due six sub-
statements (viz. 1, 2, 3, 4, 5 and 8 of statement D) as provided in Para
will be prepared from the entries in this registers.
5. The register will be submitted to the Sr. AO/AO and The GO by the 10th
of each month.
PROFORMA
Sr. No. No. and Year of the CA with the name of Particulars of irregularity
the Contractor
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FLY LEAF INSTRUCTION FOR REGISTER OF EXTENSION

DOs
OBJECT:
To record details of extensions of time given through

DOs/Covering DOs.
1. This register will be maintained in the proforma appended below
and will be supplementary to the main Critical Review Register.
2. All extensions of time granted through DOs/ Covering DOs in
respect of contracts operated during the year should be recorded
in this register. Entries will be made division wise and contract
wise. It will be ensured that suitable entries are made in this
register, under the respective columns. An endorsement regarding
page no. and item no. of this register shall be made on the office
copy of the forwarding memo of the DO, wherein the relevant
entries have been made. Reasons for the grant of extension of time,
if not available while making the entries in the register will be
called for and receipt watched, to complete the relevant columns.
The Register will be utilized for the preparation of statement 'D' of
the Annual Review of Works Expenditure.
3. This register will be submitted to Sr. AO/ AO on the 10th of each
month and to the GO once in a quarter.
PROFORMA OF REGISTER OF EXTENSION DOs
Sl. Name of Particulars Contract Period or time DO No. Extension
No. Garrison of Work Agreement allowed as per work and allowed
No. and order (Form ... month date From......
Year / days) To........
1 2 3 4 5 6 7
Total period of Reasons Whether DO is Whether DO is Remarks

extension months / furnished for regular or it is accepted / objected to
days extension covering DO in audit
8 9 10 11 12
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FLY LEAF INSTRUCTION FOR REGISTER OF SECURITY

DEPOSIT
OBJECT:
For the purpose of maintaining a record of Security Deposits and

their refund.
1. The register will be maintained in IAFA-285.Separate Registers

will be maintained for Standing Securities and Additional/
Individual Securities for particular contracts.
2. Separate folio will be allotted in the Register for each Contractor.

The security deposits along with Standard Security Bond, where
applicable will be entered in the appropriate Security Deposit
Register over the signature of the Officer-in-Charge and kept in
safe custody. Similar entries will be made when the securities are
released.
3. Reference to Security Bond number / Contract Agreement

Number for Standing Security / Individual Security will be cited
at the top of each folio.
4. In the case of contractors of Unlimited class, the Regional

PCsDA/CsDA, on receipt of the bond and security deposits from
the Chief Engineer concerned (under whose command the HQrs of
the Contractor are situated) will communicate the number allotted
to the Security Bond by the Chief Engineer and the fact that the
Security Deposit has been lodged, to other Regional
PCsDA/CsDA who keep a note of the fact in the Register of
Security Deposits.
5. The Register will be submitted to the Officer In-charge of section at

the time of each entry.
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6. Certificate regarding physical existence of securities will be
endorsed at the time of annual stock verification and transfer of
charge of Sr.AO/AO/ AAO.
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FLY LEAF INSTRUCTIONS FOR REGISTER OF BANK

GUARANTEE BONDS
OBJECT:
For the purpose of maintaining a record of Bank Guarantee Bonds

lodged against security deposits and to ensure their timely extension,
renewal and or encashment when required.
1. This register will be maintained in the Proforma given below,

separate pages being allotted for guarantee Bond (i) in lieu of
Security deposit and (ii) in lieu of retention money.
(i) Serial No.

(ii) Name and address of the Contractor / Firm.
(iii) Financial limit.
(iv) CA No. and date
(v) Name of the Bank
(vi) Bank Guarantee Bond No. and date
(vii) Amount of the Bond
(viii) RBI Guarantee No, and date.
(ix) Pledged in favour of
(x) From when received with No, and date of the forwarding Letter.
(xi) No. and date of reference under which acknowledged.
(xii) Date of expiry of :
a. Guarantee Bond
b. RBI Guarantee
(xiii) Initial of Officer I/C
(xiv) Date of renewal / release of Bond
(xv) Initials of Officer I/C
(xvi) Remarks.
2. After exercising necessary check and completing entries in the
register, Guarantee Bonds in lieu of Security Deposit will be placed
in a cover and kept in safe custody. The original Guarantee Bonds
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in lieu of retention money will, however, is returned to the
accepting offer and copies thereof sent to CWE / GE / AO
concerned. One copy thereof will be retained in the section in safe
custody.
3. The register will be reviewed on the 5th of every month and cases
in which Bank Guarantee Bonds are due to expire after two
months and have not yet fallen due for release will be brought to
the notice of the MES authorities concerned for arranging their
extension / renewal and, if necessary for encashment. In case of
Bank Guarantee Bonds in lieu of security deposits, a copy of such
communication will be endorsed to the bank concerned as a
'Notice of Demand' referred to in Para 3 of Bank Guarantee.
4. Certificate regarding physical existence of securities will be

endorsed at the time of annual stock verification and transfer of
charge of AAO.
5. The register will be submitted to the Officer-in-Charge on 10th of

every month after completing the review / after action
contemplated in Para 3 ibid and quarterly to the GO.
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Check List for Audit of Contractor’s RAR/ Final Bills in the

Works Wing of Main Office
1. The CA to which the final bill relates has been concluded and
accepted in audit.
2. All objections/observations raised on the respective CA have been

settled. If not, have the remaining ones got any financial effect.
3. The Contractor has signed the no claim certificate of Page 2 of the

RAR/final bill without reservations.
4. The work provided in the CA has been completed within the

stipulated period. If not compensation for the period or delay has
been levied. Compensation statement duly signed by both the
parties to the CA's is attached.
5. Completion certificate has been attached to the final bill. In case

completion certificate is subject to the rectification of defects
sufficient amount to cover the cost of defect has been withheld.
6. The demand (including those intimated by the Technical Examiner

as a result to Technical Check) outstanding against the contractor
are recovered from the bills.
7. The store statement attached to the RAR/ final bill has been
technically checked and bears the requisite endorsement under the
signature of SA/ASW/SW.
8. Over issue/ under issue of stores is condoned by the competent

authority. Requisite action has been taken against the contractor
who fails to return the surplus stores and retains them for his/her
own use.
9. The following documents are enclosed with the bill :

(a) Bill forwarding certificate (IAFW – 2254).
(b) Final contract bill from IAFW – 2262.
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(c) Statement of stores
(d) T&P Statement.
(e) Water recovery statement.
(f) Compensation, water, electricity recovery statement.
(g) Copies of work / deviation orders together with copies of
Statement/ Special rates.
(h) Abstracts / Requisition
(i) Demolition Certificate
(j) Completion Certificate.
(k) Correction sheet showing financial effect due to amendment
during technical check.
10. The requisite provision exists in the CA for issue of stores under
Schedule 'B' T & P under Schedule 'C' Transport under Schedule
'D' and rates recovered, therefore tally with the rates provided in
these schedules.
11. AO’s certificate of check with the Log book has been looked for on
the statement in respect of Schedule 'C' recovery for the use of T &
P on maintenance day is effected.
12. All advances paid against the CA on the RAR's have been
recovered in the final bill quoting CBI No. and dates.
13. The recovery on account of water charges has been enforced in

accordance with the clause incorporated to this effect in the CA viz
either on the basis of the amount of work done or on the basis of
the quantity of water consumed as recorded on the water meter. In
case no recovery is effected inspite of provision in CA a certificate
for non drawl of water from MES is attached with the final bill
containing valid reasons.
14. Certificates in regards to the Testing of Electrical / Water fittings

and moisture contents in timber etc. provided for in the CA are
attached to the final bill.
690
15. In respect of RAR/ final bill for periodical services the following
certificates have been furnished:
(a) Building shown in the CA have been checked with the
RPMB/RTMB.
(b) Buildings provided in the CA exist at site.
(c) The area of periodical services shown in the CA tallies with
the area recorded in PSMBs.
(d) The periodical services to buildings have been carried out
after the prescribed interval and it has been verified by the
AAO and the certificate is attached with the bill.
(e) Certificate from the AO GE to the effect that PSMB to which
changes relate have been checked by the RAO concerned and
relevant pages have been checked by him/her is attached.
16. The nomenclatures of items of work executed as per schedule 'A',

DO's, amendments are checked with the items shown in the
abstracts of quantities attached with the bill.
17. Rates and quantities provided in Schedule 'A', DO's and

amendments are checked with those in the "Abstract of Quantities"
attached to the bills. DO/ Amendments provided for in the CA are
attached.
18. Devaluation statements attached to the bill have been correctly

prepared and accepted by the Competent Authority.
19. The cost of dismantled stores utilized by the contractor as

provided in the CA is recovered and credited to the state.
Demolition statement duly verified by the AO is attached with the
bill wherever necessary.
20. The final bill has been technically checked by surveyor of works
and bears endorsement to this effect in the cage provided in the
final bill.
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21. The bills for the purchase of stores have been audited as per
existing instructions.
22. In disputed / delayed cases a further RAR payment to the extent

of agreed portion has been allowed only after scrutiny of final bill
by the PCDA/CDA.
23. That "Star" prices have been sanctioned by Competent Authorities.
24. That there are not wide unexplained divergences between the rates
sanctioned for similar items of work at different times and for
different stations.
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FLY LEAF INSTRUCTIONS FOR THE REGISTER OF

ARBITRATION CASES
OBJECT:
To keep a record of all disputed cases which are referred for

Arbitration and to watch their finalisation. A register will be maintained
centrally in ‘Works Wing’ in the Proforma appended below. As soon as
intimation is received regarding the appointment of an Arbitrator,
suitable entries will be made in this register. The progress of the case
will be watched through this register. No documents relating to an
arbitration case will be certified for destruction, unless it is ensured that
the case is finalized and certified by the executive that they are no longer
required. The register will be submitted to the office-in-charge on the
10th of each month and quarterly to the GO.
REGISTER OF ARBITRATION CASES
Sl. No. & date of Name of the Name of CA No. & Party who
No. letter Garrison/Div. Contractor Year & final has gone to
appointing an Bill CBI No. Arbitrator
arbitrator & month
1 2 3 4 5 6
File No. Nature of No. & Date No. & date of No. & Date of
opened for dispute and of statement statement of PCDA’s/ CDA's
the case amount of plaint Defence approval to the Govt.
case plaint/Def.
7 8 9 10 11
Details of final Whether settled in Amount Remarks

award favour of
contractor/Govt.
12 13 14 15
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Chapter – VIII
Integrated Financial Advisor (IFA) Wing
8.1. BACKGROUND AND ORIGIN OF THE IFA SYSTEM
8.1.1. Introduction:
The IFA system provides independent financial advices to the

Competent Financial Authorities (CFAs) in exercising of delegated
financial powers to expedite decision making thereby providing greater
satisfaction to the troops deployed in the field as well as enhancing
operational preparedness. It is also to be ensured that all the expenditure
proposals are subjected to due financial scrutiny before the expenditure
is sanctioned or committed.
(i) The basic objective of the scheme was to make financial

advice/inputs available to the executive authority in-house for
better decision making with a view to achieve economy, efficiency
and effectiveness.
(ii) As per the scheme, an Integrated Financial Advisor was attached

with each Ministry/Department of GoI.
(iii) A large scale delegation took place in 1975/76 consequent upon

Committee set for Departmentalization of Accounts.
(iv) Along with the delegation, a scheme of Integrated Financial

Advice was also introduced in Ministries/Departments of Govt. of
India.
8.1.2. New Management Strategy:

In 1990s, MoD mooted initiation of further studies on the concept
of Authority-cum-Responsibility Centres (ARCs) on lines of those
adopted by the UK Army, to be further validated in the base logistics
units in peace areas since delineation of performance indicators in these
694
units would be comparatively easier. These initiatives planted the seeds
for formulation and implementation of the New Management Strategy
(NMS) for the three Services, leading to substantial delegation of
financial powers in Revenue expenditure to the three Services during the
period 1996 to 2000, whereby a substantial portion of Revenue budget
came under the delegated powers of Service HQrs.
8.1.3. IFA Scheme in Defence:

(i) IFA Scheme in Ministry of Defence was first launched in 1976
when Department of Defence Production & Supplies and Defence
Research & Development were brought under the scheme.
(ii) IFA system in the main ministry i.e. Department of Defence was
introduced in 1983.
(iii) With this the Ministry of Finance (Defence) was renamed to

Ministry of Defence (Finance).
(iv) Secretary (Defence Finance) or Financial Advisor (Defence

Services) as the head of Ministry of Defence (Fin) is the Integrated
Financial Advisor of Ministry of Defence
8.1.4. New Management Strategy in Army

New Financial Management Strategy was introduced in MGO’s
Branch in 1997, with a view to introducing efficiency in performance,
financial control and establishing linkages between utilization of
resources allotted and targets / output achieved. Financial management
strategy involved the following:
(i) Greater decentralization of responsibilities for budget formulations

and financial control together with adoption of the concept of
accountability.
(ii) Creation of Authority-cum-Responsibility and Budget Centre

(ARB) at MGO’s Branch under the aegis of MGO.
(iii) MGO as PSO was henceforth to be a high level budget holder
695
acting as an Authority-cum-Accountability Centre and was to be
responsible for cost effective management of all equipment
management activities of the Army. This centre was to monitor
expenditure on various items of AOC Stores against discipline-
wise budgetary allocations. It was also to be responsible for sub-
allocating the budget to various Budget Centres.
(iv) The DGOs and DGEME as heads of respective directorates were to

be intermediate budget holders and act as Responsibility and
Budget Centres for their respective directorates in management of
budget and achievement of objectives within a given budget,
keeping economy and efficiency in mind.
(v) Additional DGOs, CODs, Base Workshops etc. were to be

responsible for day to day management of the budget and
monitoring of the expenditure against the budgetary allocations.
(vi) The most important feature of the financial management strategy

was the linkage of Provisioning and procurement activities with
the availability of resources.
(vii) IFA (Army) at AHQ and IFAs in CODs were to render financial
advice to various Ordnance functionaries.
8.1.5. Advancement of IFA System in Army

(i) The next major push towards IFA system took place after Kargil
war on the recommendations of GoM (Group of Ministers) in 2002.
(ii) With this IFA system has been implemented at Command Level
and each command HQ has been provided with a dedicated IFA
and Deputy IFAs.
(iii) A large-scale delegation of powers to the executives at all levels

under MOD letter dated 22ndApril, 2002, further revised in July
2006.
696
(iv) Dedicated IFAs have now been provided at Corps levels and also
at CODs.
8.1.6. Expectations from IFAs:

(i) The IFAs are expected to have complete appreciation of policies
and priorities of the organizations they are serving. This macro
view will enable them to take appropriate decisions on day to day
basis.
(ii) IFAs must commit themselves to facilitate implementation of the

approved programmes with due financial prudence in order to
achieve the intended outcome in time
(iii) The IFAs are expected to bring requisite financial expertise and
perspective of Government financial management in rendering
professional advice to the executive authorities in all matters of
financial implication.
(iv) IFAs are expected to own the organizational objectives as their

own goals and accordingly, appraise the proposals in a holistic
manner.
(v) IFAs should continuously strive to update their knowledge and

understanding of the relevant issues and also train their
subordinates so that discordant opinions do not emanate from
their offices.
(vi) IFAs and their staff must remain accessible to executive authorities
for advice and consultation at all times and must ensure open
communication with all stakeholders in pursuit of effective
financial management.
(vii) IFAs must maintain absolute integrity and also ensure the same
from their staff. They must always keep in mind that they are
under constant observation of the entire hierarchy of the
organization they are serving.
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IFA WING AT DAD HQRS
8.2. Objectives:
The objectives of IFA Wing at DAD HQrs are as under:
(i) Aiding and advising the Integrated Service Headquarters of

Ministry of Defence i.e. Army, Navy and Air Force, Headquarter
Integrated Defence Staff and Secretary (Defence Finance)/
Financial Advisor (Defence Services) through CGDA for effective
functioning of the IFA System.
(ii) Overall control, supervision, direction, co-ordination and

reporting in relation to the functioning of PIFAs/IFAs Offices.
(iii) Discharging administrative responsibilities relating to the

functioning of IFA system as assigned to them by the CGDA from
time to time.
(iv) Seeking directions and guidance from the Competent Authority in

matters related to functional responsibility to be discharged by all
PIFAs/IFAs.
8.3. Duties of IFA Wing:
The duties of IFA Wing at DAD HQrs are as under:
(i) Circulation of Orders concerning IFA functioning
(ii) Circulation of orders relating to delegation of financial powers
(iii) Issuing clarifications on issues raised by the PIFAs/IFAs
(iv) Mapping of IFAs with the CFAs as per Delegation of Financial

Powers for Defence Services issued by the Govt. from time to time.
(v) Delegation of Powers to IFAs to concur expenditure proposals.
(vi) Manpower planning for PIFA/IFA Offices
698
(vii) To provide suitable training to IFAs
(viii) To keep a watch and get the SOPs formulated and updated by
Service HQrs on different subjects as the case may be.
(ix) To prepare & circulate check lists for the guidance of PIFAs/IFAs
(x) Circulation of case studies of important cases of procurement, etc.
(xi) Conduct of seminars and exchange of information, best practices,

knowledge and experience sharing amongst IFAs along with
Service Officers
(xii) Regular Interaction with Service Headquarters, Headquarters

Integrated Defence Staff on the functioning of IFAs in their
respective organizations.
(xiii) Facilitating Management Information System (MIS) through SIFA
(xiv) Co-ordination with Systems Wing for obtaining concurrence on

draft SOPs.
(xv) Co-ordination with IT & S Wing for SIFA maintenance &

upgradation.
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8.4. ROLE & DUTIES OF PIFA/ IFA OFFICES
(i) The basic role of IFA has been notified by Ministry of Finance as
rationalized vide OM F.No.5(6)/L&C/2006 dated 1.6.2006.
(ii) As per this redefined charter, FAs are expected to bring requisite
financial expertise and overall perspective of financial
management of the Govt in rendering professional advice to the
administrative authorities.
(iii) The role of FA is considered crucial for successful planning,

implementation and monitoring of various schemes and projects.
(iv) He/she shall be the Internal Financial Adviser
(v) He/she will interact for his day to day function with HQrs/Lower
formations
(vi) He/she will scrutinise cases relating to purchase, projects, repairs,

equipments, disposals, and losses, etc. which fall within the
competence of various authorities at HQrs/ Lower formations.
(vii) He/she will render all other assistance on the financial matters.
(viii) He/she or his rep will participate in the various TPCs.
(ix) He/she will assist the authorities in monitoring of expenditure

against the budget allotments.
(x) He/she will also assist in preparing the monitoring a database on

committed liabilities.
(xi) Any other item of work assigned/ desired by FA(DS)/S(DF).
(xii) Monitoring the processing of Draft Audit Paras/ Audit Paras/

Internal audit objections.
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Thus, IFAs will be associated right from the stage of initiation of
proposals for procurement/ development till placement of orders for
procurement/ developed.
So far as the association of IFA with Technical Evaluation

Committee, the role of IFA would be restricted to the scrutiny from
necessity angle. Where, however, the IFAs are unable to satisfy
themselves about the necessity point of view, they go by advice and
certification of technical experts including presentations. In any case the
necessity aspect is seen very carefully and cautiously and the IFA
concurs only if he/she is convinced that the appropriate authority has
seen it.
The DPM and DFPDS also accentuate and underline the

importance of IFA and its inclusiveness within the overall procurement
and purchase mechanism in the Defence Sector. The IFA system has
been so designed that it is very intricately involved in the procedures.
The DPM and DFPDS, under its various paras right from the stage of
AON till the final materialisation of the procurement, refers and ensures
that the IFA system is referred to before and at each and every stage of
procurement cycle.
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VARIOUS ROLES OF IFAs
702
8.5. Scope of Work of IFA:
Appendix ‘B’ of Defence Services Estimates Vol – Issued by MoD,

explains the organization and functions of MoD(Fin) and DAD.
Following are relevant extracts from it regarding the scope of work of
IFAs:
(i) The financial control by IFA involves careful and intelligent

scrutiny of all proposals involving expenditure from the public
funds, the objective being safeguarding of economy, efficiency and
propriety in public finance.
(ii) Before according financial concurrence to any proposal involving

fresh expenditure, it is the duty of the IFA to seek justification for
the proposal.
(iii) IFA may even challenge the necessity for spending so much
money or on such a scale to secure a given object.
(iv) IFA may ask:

a. whether the proposal is really necessary;
b. whether the same results could not be obtained otherwise
with greater economy;
c. whether the expenditure involved is justified in the
circumstances;
d. whether the individual items are furtherance of the general
Government Policy;
(v) IFA is to see whether the canons of financial propriety as laid

down in Rule 6 of Financial Regulations Part – I Vol – I have been
observed.
(vi) In fact, IFA can ask every question that might be expected from an
intelligent taxpayer bent on getting the best value for his money.
703
8.6. Stages of involvement of IFA in expenditure proposals:
A. Acceptance of Necessity (AoN) Stage
B. Tendering Stage
C. Expenditure Sanction Stage
D. Post Contract Management
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8.6.1. ACCEPTANCE OF NECESSITY (AON) STAGE:
The AoN stage examination of an expenditure proposal comprise

of following functions:
(1) Necessity Angle Clearance and Vetting of quantities: The following

points may be seen in the statement of case for clearing the necessity
angle:
(i) Critical examination of the justification given for the item in SOC
and main noting.
(ii) Statement of Case should be as per format provided at Appendix

B of DPM 2009. A simplified SoC may be prepared in case of small
value local procurement of stores/ services valuing up to Rs. 5
Lakh. However, it should have all essential details relevant for a
purchase decision.
(iii) It is to be ascertained whether item pertains to scaled or un-scaled

category or is covered under various Govt. rules or Army orders.
It is to be remembered that an item is scaled when it is approved
by the CFA and its authorization has been laid down in Govt
orders. For un-scaled/ new items necessity has to be examined
705
with reference to actual need.
(iv) The nomenclature, quantity and cost of item given in the present
proposal should be compared with information given in the
Annual Revenue Procurement Plan (ARPP). Queries are to be
raised in case of any differences in the two.
(v) It is to be ascertained that details like authorization of item as per

MoD/AHQ letters, existing stock holding, and quantities already
ordered but delivery awaited and deficiencies are to be arrived at,
on a scientifically calculated net figure.
(vi) Proposed distribution of item to ensure against extravagance and

over-provisioning to be ascertained. It is to be ensured that items
are being procured for authorized personnel and offices only.
(vii) It is to be ascertained whether the purposed of present proposal

can be achieved by modification or up gradation of existing
items/facilities.
(viii) In case of replacement procurement, it is to be ascertained whether

life of the old equipment has expired or it is to be replaced against
BER. Mode of disposal of existing item in case of old/BER items
may be proposed to get the best value. In case of premature
condemnation of existing equipment detailed justification needs to
be obtained.
(ix) If existing facilities are being strengthened with additional

quantities, confirm that issues like standardization and
compatibility have been taken into account.
(x) In case of AoN for scaled items, conduct vetting of quantities,

assessment of physical requirement of various resources with
respect to targets fixed and budget availability.
(xi) In case of LP procurement, it may be ensured that Non

Availability Certificate (NAC) from Central
Provisioning/Procurement agency has been provided/ attached.
706
(xii) It may be ensured that option clause and/or repeat order has not
been made as a matter of course and only provided in exceptional
circumstances where the consumption pattern is not predictable.
(2) Competence of CFA :
(i) Match the ceiling of powers given in Schedules with the total
likely expenditure given in the proposal. It is to be carefully seen
that the proposal has any add-ons and whether they have been
taken into account for calculating the total value of the proposal.
(ii) For item of recurring nature ascertain the period for which the
present case has been sent. Critically examine this issue to ensure
that no splitting of expenditure has been done.
(iii) For processing cases of similar items but with different sizes, the
relevant Govt/CGDA decision may be kept in mind as it differs
from item to item. For example, in case of drugs/consumables of
same nomenclature but having different sizes/strengths, MoD
vide their letter dated 8.5.2006 has clarified that they will be
treated as different items and will not be considered as splitting of
powers, provided a certificate is given by Addl. DGAFMS (E&S).
(iv) Ensure that CFA's powers are being exercised by CFA himself as
delegated powers cannot be re-delegated to lower authorities by
the CFA.
(v) Check whether or not the type of item proposed is covered under
the purposes/budget head for which powers are delegated in a
Schedule, conditions given in the schedule/ govt orders / SOPs
etc.
(vi) In case of Rate Contracts, anticipated value of drawal over a

period of one year should be taken into account for determination
of CFA. If the Rate Contract is for more than one year and up to a
maximum of three years then the anticipated value of drawal
should be based on the period of the Rate Contract, i.e. if it is for
707
three years the anticipated value of drawal for three years should
determine the CFA.
(vii) The highest CFA in Local Procurement is generally the C-in-C,

Command HQs. However, for units/organisations directly
functioning under Service HQs or being in the chain of their line
directorate in Service HQs, the concerned PSO in Service HQs can
exercise the same powers for these units/organisations, as given to
C-in-C in a particular sub Schedule.
(viii) Higher CFAs are authorised to sanction cases falling within the
powers of the lower CFAs within the same chain of CFAs in a
particular sub-Schedule.
(3) Fund Availability:
(i) Ensure that the Minor and Detailed heads is mentioned correctly
as per MoD orders and CGDA guidelines. Consult Classification
Hand Book, if necessary. Also make sure that items chargeable to
Capital heads are not procured under Revenue heads/powers and
vice versa unless covered under Capital Booking Revenue
Procedure (CBRP) enunciated vide MOD(Fin) letter No.2(2)
B.I/2008 dt 13.01.2011
(ii) Look for the confirmation given by user regarding fund

availability as per certificates given in Para (iii) below.
(iii) Look for the progressive expenditure given in the file and add the
committed liabilities and estimated value of current case to ensure
that this total does not exceed the allotment under this head. For
this purpose following details may be sought:
a. Code Head under which the expenditure is proposed.
b. Total allocation under each Head.
c. Committed Liability carried forward from previous year.
d. Balance available for fresh commitments in current FY.
708
e. Commitments already made during the current FY.
f. Cash outgo expected in current FY against above based on
schedule of delivery and payment terms in supply
orders/contracts.
g. Net balance available for further concurrence.
(iv) In view of the fact that financial commitment is not created at the
AoN stage, proposals for AoN may be considered for concurrence
in anticipation of funds becoming available subsequently, where
such proposals are included in the Priority Procurement Plan
(PPP), Planned Provisioning Review, Planned Repair Programme
or pertain to contract for recurring requirement such as
conservancy services, AMC, etc. In other cases also, concurrence
for AoN may be accorded, on case to case basis, keeping in view
the lead time involved for the procurement. However, in all cases,
financial concurrence for expenditure sanction/issue of supply
order/ conclusion of contract should be accorded subject to the
allocation being available under the concerned budget head.
(v) In case of stores having a long lead time a purchase proposal may
be processed without linking it with actual availability of funds
and the supply order/contract placed in the last quarter of the
financial year when delivery will take place in ensuing financial
year (s) and there is reasonable assurance of availability of funds
in the budget(s) of that/those year(s) taking into account the
committed liabilities.
(vi) Cases of AoN concurred in anticipation of allocation of funds

should be closely monitored by the IFA with regard to the
progress of procurement. Normally, after the AoN has been
concurred/approved and the bids have been called for, there
should not be occasion for extension of bid validity, for re-
tendering or for dropping of the proposal on the ground that
funds have not/did not become available.
(vii) Ask for status report in respect of all carry-over cases whenever a
709
new case is put up by users.
(viii) Correct classification of item needs to be looked at, at this stage.
(4) Mode of Tendering, Vetting of RFP & amendment thereto:
(i) Prevalent provisions of General Financial Rules are to

scrupulously adhered to and GeM portal is to be mandatorily
utilised for tendering and non-tendering cases.
(ii) The authority to whom tender sample is required to be furnished

for testing and the time within which the sample should be
submitted for inspection are to be indicated in the enquiry. (the
time required for sample inspection must invariably be factored in
while fixing the delivery period)
(iii) The inspecting authority is correctly indicated.
(iv) Where purchase of large quantities of stores is involved or where

the shelf life of the store is limited, delivery may be specified in
instalments, depending on staggered requirements of indentor.
(v) In case of purchase of imported stores the appropriate shipping

clauses are incorporated Other special conditions viz. payment
terms for FOB/FAS contracts etc. should also by indicated in the
enquiry.
(vi) The requirement of furnishing performance guarantee to cover

warranty period has been indicated in respect of plant and
machinery and other specified stores. (Performance bank
guarantee of 5%-10% of the contract value has to be provided by
the firm. PBG should remain valid for a period of 60 days beyond
the date of completion of contract including warranty).
(vii) The sole arbitration clause has been indicated in RFP.
(viii) A clause seeking confirmation from the bidders for acceptance of

part quantity has been included.
710
(ix) Clause regarding the purchaser's right of rejection of any or all
tenders without assigning any reason has been included in the
RFP. This clause can be invoked in cases where it discovered after
opening of tenders that the requirement has ceased to exist or
there is a major change in technical specifications.
(x) The clause about imposition of liquidated damages of 0.5% per

week or a part thereof subject to a maximum of 10% of the total
value of goods and service delayed has been included.
(xi) Clause about hardware/software upgradation has been included

in RFP particularly in respect of IT items, other high technology
items and EPABX systems. (This binds the bidder to provide all
the upgrades free of cost if the same have been launched free of
cost by the OEM as a matter of policy. Otherwise the purchaser
has the option to get the upgrades by making necessary payments)
(xii) An uptime clause has been included in case of electronics items, IT

items, exchanges etc. An uptime clause indicating a minimum
uptime of 95% during warranty/AMC may be included in the
RFP. In case of non-adherence to this clause, the bidder will be
subject to the payment of penalty, which may be specified in the
RFP.
(xiii) AMC clause has been included in the RFP where required, asking
the bidder to give confirmation of AMC for the life of the
equipment specifying the minimum years for which AMC should
be provided and the rate in terms of percentage of cost of
equipment for the same.
(xiv) The buyer shall have the right to terminate the contract in part or
in full under the laid down conditions.
(xv) The seller has no right to give, bargain, sell, assign or sublet or
otherwise dispose of the Contract or any part thereof, as well as to
give or to let a third party take benefit of advantage of the present
contract or any part thereof.
711
8.6.2. TENDERING STAGE: As per prevalent edition of GFR,
GeM portal is to be mandatorily utilised for tendering and non-
tendering cases. The IFA is required to be involved in following steps of
tendering stage:
(1) Opening of Tenders: The following points are to be observed:
(i) TEC report - In two-bid tendering, ascertain that the TEC

completed and that their report has been approved by CFA.
(ii) Revision of commercial bids - In a two bid tender, where there was
a need for revision of commercial bids (Para 4.12.11 DPM-2009),
ensure that equal opportunity has been given to all technically
acceptable vendors to give their revised commercial bids in a
sealed cover. In addition it may be ensured that approval of CFA
with IFA consultation has been obtained as per Para 4.12.12DPM
2009.
(iii) Bid Opening formalities - Confirm that modalities on GeM portal

were complied with during opening of tenders
(iv) The representative of integrated finance need not be a member of

the tender opening committee unless the CFA specifically desires
712
to associate such a representative.
(v) Late tenders–GeM portal does not allow admissibility of Late

tenders.
(vi) Withdrawal of bids - Ensure that the withdrawal of bid is not

allowed in the interval between the deadline for submission of
bids and expiration of bid validity period. GeM portal does not
allow such withdrawal.
(2) Vetting of CST: The following points are to be seen:
(i) Examination of CST - Examine that the CST is exhaustive and

includes all details. The evaluation of bids should be based on the
criteria indicated in the RFP.
(ii) Enclosures to bids - See whether required sureties have been

furnished and whether the documents have been properly signed.
(iii) Responsiveness of bids - Determine the substantial responsiveness

of each bid to the bid documents. A substantially responsive bid is
one, which conforms to all terms and conditions of the bid
documents without material deviations. Deviations from of
objections or reservations to critical provisions like Bid Security,
Warranty and Guarantee, Applicable Law, Taxes and Duties will
be deemed to be a material deviation. Ensure that Bids received
are evaluated in terms of the conditions already incorporated in
the bidding documents; No new condition which was not
incorporated in the bidding documents should be brought in for
evaluation of the bids. Remember that determination of a bid's
responsiveness should be based on the contents of the bid itself
without recourse to extrinsic evidence.
(iv) Comparison of bids - Remember that all elements of cost,

including the terms and conditions with financial implications are
to be taken into account while ranking quotes. Ensure that
comparison of responsive bids is done on the prices of the goods
713
offered inclusive of Freight and Insurance etc., as indicated in the
price schedule of Bid documents but exclusive of Octroi/Entry Tax
which will be paid extra as per actual, wherever applicable. The
ultimate cost to the state on delivery to the consignee's premise
should be the deciding factor for ranking of bids. Some factors
which need to be taken into account are given below for guidance:
➢ When the competition is only among the Indian Suppliers, the
FOR prices at destination (consignee's premises) should be the
basis for ranking
➢ If the competition is amongst foreign suppliers, the basis for
comparison should be the landed price at destination
(designated port) only
➢ When the competition is between indigenous and foreign
suppliers, the basic cost (CIF) quoted by foreign suppliers
should be the basis for comparison with the basic cost offered
by the indigenous suppliers, after offloading ED, CST/VAT
and other local taxes and levies.
(3) Commercial Negotiations :
(i) Reasonableness of Price: As IFA's rep in CNC, your first objective

is to establish reasonableness of price being paid by the Govt. This
is a complex task and many factors need to be considered, which
are mentioned below for guidance:
a. Estimated value as given in the indent
b. Response of the trade to tender enquiry
c. Last purchase price (LPP)
d. Database of past contracts for similar items
e. Movement of price indices of raw materials, electricity,
whole sale price index and statutory changes in wage rates
f. Market intelligence regarding cost of the item or similar
items
714
g. Material composition and component-wise costing
h. Technological intricacies involved
i. Whether current production or otherwise
j. Maintenance requirements, spares and warranty, etc.
(ii) Spare Items Cases: Spare Items' Cases For procurement of spare
parts, consumables and small value contracts which are supplied
in the past, the price reasonableness may be determined after
comparing with last purchase price after factoring in changes in
price indices published by the Government sources.
(iii) Cost Analysis: The reasonability of price may also be examined,

by resorting to Cost Analysis in situations where there is a wide
variance over the LPP not explained by corresponding changes in
indices.
(iv) Last Purchase Price: LPP is one of the relevant factors in deciding
the price reasonableness. However, following needs to be
considered while comparing the quoted rates with the LPP:
a. LPP of more than three years vintage is not taken as a real scale
for comparison. However, such LPP could be used as an input
for assessing the rates.
b. LPP should pertain to a past successfully executed order of
similar magnitude and scope of supply.
c. Factors like basket price and bulk discount offered need to be
taken in to account while using LPP as a scale for comparing
prices.
d. Price variation clause, if any, and the final cost paid by the
Govt. in respect of last purchase to which LPP needs to be
considered.
e. Factors like items supplied against LPP being of current
production or ex-stock supply need to be taken into account.
f. Market conditions and extraneous factors like re-starting
715
production lines due to obsolescence may also have to be
considered.
(v) Inputs from Vendors: In assessing the reasonableness, general

analysis of Financial/Cost ratios from published accounts and
evaluation of Commercial/Technical information of the
Vendor/Bidder may be undertaken. The allocation of overheads
should be as per established principles of costing. Assessment
should be made on the vendor's approach to controlling cost,
adherence to delivery schedule, Cost Accounting System and other
factors affecting contractor's ability to meet cost/schedule targets.
(vi) Participation in TPC/PNC: The following general points are to be

examined before participation in TPC/PNC:
a. Validity of quotations on the date of holding TPC is verified.
Validity period valid for the period notified in enquiry
excluding the date of tender opening
b. It is to be ensured that only L1 has been called for negotiations,
where required.
c. No conditional discount may be taken cognizance of.
d. In case of plants/machinery, all these factors viz. maintenance
spares for a specified period, AMC, guarantee/warranty
clause, inspection clause, after sales performance guarantee for
warranty period, are to be negotiated.
716
8.6.3. EXPENDITURE SANCTION STAGE: The Expenditure
Sanction Stage examination of an expenditure proposal by the IFA
comprise of following functions:
(1) Examination and Acceptance of CNC’s Recommendations: The

CNC report with its final recommendations will be considered for
decision on expenditure sanction by CFA with IFA concurrence. The
recommendations of the CNC need to be examined for accord of
concurrence for expenditure sanction. Ensure that the CNC has
confirmed the reasonableness of the final negotiated price. Ensure that
the RFP compliance matrix has been incorporated in CNC report and
there are no deviations in procedure. In case of procurement in Foreign
Exchange (FE) the cost should be indicated in the foreign currency as we
as INR while seeking CFA approval.
(2) Confirmation of Budget Allocation: Before the expenditure sanction

is concurred by IFA it will be ensured that there is adequate budget
allocation in the relevant budget head.
(3) Allotment of U.O. Number: After CFA has approved the case,
communication of concurrence may be given through a formal U.O.
number. Ask the user to make mention of U.O. number in the sanction
letter and Supply order/contract to enable PCDA/ CDA to admit case in
717
audit.
(4) Signing of Contract: All contracts concluded by the departments of

the central Govt. are in the name and behalf of the President of India.
However, the contract, after due approval of the CFA, may be signed by
a Staff Officer, duly authorized by the CFA in writing. Match the
specimen signature of such Staff Officer with the records. As for the
contractor, the person signing the contract is deemed to have been
authorised by the supplier.
(5) Acceptance of Contract: Any contract, when not signed by both

parties, namely the purchaser and the supplier, is deemed to come in to
force with the acceptance of the tender as per mutually agreed terms and
conditions contained in the RFP and the firm's offer. However, ensure
that the vendor conveys their acceptance of the same within seven days
of receipt of the supply order. If such an acceptance or communication
conveying their objection to certain parts of the contract is not received
within the stipulated period, the supply order is deemed to have been
fully accepted by the firm. In case of foreign contract, normally both
parties sign the document thus conveying their acceptance of the
contract.
(6) Law: The contract is governed by the laws of Republic of India.
(7) Contract Effective Date: Ensure that the contract effective date is
invariably indicated in each contract as per agreed tern and conditions.
Normally the date of signing of the contract is the effective date of
contract except when specifically provided otherwise in the contract.
718
8.6.4. POST CONTRACT MANAGEMENT: All amendments to the
contracts, which have financial implications including short closing and
delivery period extensions (with or without LD) should be approved by
the CFA in consultation with the IFA where the original contract was
conclude with the concurrence of integrated finance.
Post contract activities, particularly amendment to the contract or

the terms and conditions thereof, need to be handled with a lot of care
and after proper analysis of implications. Following issues can come up
at Post Contract Stage:
a. Extension of Delivery
b. Imposition/Waiver of Liquidated Damages
c. Extension of Letter of Credit
d. Amendment of Contract
e. Termination of Contract
f. Encashment of Performance Bank Guarantee
g. Risk and Expense Purchase
h. Price Variation Adjustment
i. Exercise of Option Clause
j. Exercise of Repeat Order
719
k. Project Monitoring
(1) Extension of Delivery: Timely delivery as per DP stipulation in

Contract / Purchase Order is one of the most important procurement
objectives as timely availability of items is vital, particularly for the
Department of Defence. The stores are considered to have been
delivered only when these are handed over to the consignee after due
inspection (where applicable) by the designated inspection agency. Most
contracts stipulate door delivery at the consignee's end by road. In some
cases, the stores are also despatched by rail, in which case the delivery is
deemed to have been made on receipt of RR and inspection note. In
certain cases where the contractor offers stores for inspection during the
last few days of contract DP or on the last day of the contract DP, the
inspector can inspect the store and sentence it as per standard franking
clause. On receipt at the consignee's premise, the stores are checked for
ascertaining the correctness of quantity, quality and documents. In case
the stores are found deficient in any way, the consignee has the right to
reject the stores even if these were inspected and cleared by the
inspector.
When the supplies do not materialize by the stipulated contract
delivery date, see that the following options have been explored
a. Extending delivery date with LD and denial clause
b. Re-fixing delivery date
c. Cancel the contract and repurchase non-supplied quantity.
For deciding on these options, there is a need to balance the time
factor required for making repurchase and whether the supply can be
arranged earlier than the period of extension sought for at cheaper rates
from alternative sources and in the latter case whether the indentor can
reasonably wait to take advantage of lower trend in prices. Concur
extension only where it is confirmed on file that supplier would come
forward during extended DP.
(2) Imposition of Liquid Damages: Compensation for loss on account of

late delivery where loss is pre-estimated and mutually agreed to is
720
termed as the Liquidated Damage (LD). Law, allows recovery of pre-
estimated I provided such a term is included in the contract and there is
no need to establish actual loss due to late supply. The legal position
with regard to claim for liquidated damages is as follows:
(i) Whatever the quantum of the loss sustained, the claim cannot
exceed the sum stipulated in the contract.
(ii) Only reasonable sum can be calculated as damages, which in a
given situation be less than the sum stipulated.
(iii) What is reasonable sum depends on facts.
(iv) Court may proceed on the assumption that the sum stipulated
reflects the genuine pre-estimates of the parties as to the probable
loss and such clause is intended to dispense with proof thereof.
(v) The distinction between penalty and LD has been abolished by the
Indian Contract Act and in every case, the Court is not bound to
award more than ‘reasonable compensation' not exceeding the
amount so named.
(vi) Remember that consequential damage is imposed over and above
LD in case of time critical turn key projects provided it has been
included in the RFP and the contract.
(vii) Check whether any local purchase has been done during the
extension/delayed period.
(viii) Check the inclusion of all relevant elements in calculation of L.D.
chart w.r.t. Inspection Note i.e. date of dispatch and date of receipt
of stores, date of inspection and quantity of stores; check for
arithmetical accuracy of LD calculation.
(ix) Check for correctness of overall delay calculated by executives
with reference to following key dates:
a. Date of dispatch of stores, date of original DP etc.
b. Date on which the stores were tendered for inspection and
date of inspection.
c. Request for extension and date of issue of amendment letter
721
for DP extension.
d. Total delay - inspection delay beyond 30 days.
LD may be waived in part or full as per above guidelines with the
approval of CFA and concurrence of IFA where mandated as per
delegation of powers.
(3) Extension of Letter of Credit : Following points should be checked

before concurring the case for extension of LC:
(i) Extension of delivery date in the contract and corresponding

amendment in LC for latest date of shipment.
(ii) Performance Bank Guarantee (PBG) extension.
(iii) Onus of charges for LC extension.
(4) Amendment to Contract: Amendment to a contract already

concluded may become essential in certain situations when either of
sides requests for such a change and the same is acceptable to both sides:
(i) No enhancement of rates/prices should be made unless

specifically provided in the contract.
(ii) Such situations may arise where contract provides for price
variation clause or variation in Govt taxes and levies and the
contract provides for their reimbursement as per actuals, it is to be
ensured that Financial Advisor is consulted for vetting of price
variation clauses/exchange rate variation clauses.
(iii) Consultation with IFA is required where contract was concluded

with concurrence of IFA or after increase in value falls within the
delegated powers of the CFA to be exercised in consultation with
IFA
All amendments to contracts, which have financial implications,

including short closing and delivery period extensions (with or without
LD) should be approved by the CFA in consultation with the IFA, where
the original contract was concluded with the concurrence of integrated
722
finance.
(5) Termination of Contract: See that the proposal for termination of

contract is complying with one of the conditions mentioned below:
(i) When the supplier fails to honour any part of the contract
including failure to deliver the contracted stores in time.
(ii) When the contractor is found to have made any false or fraudulent
declaration of statement to get the contract or he/ she is found to
be indulging in unethical or unfair trade practices.
(iii) When both parties mutually agree to terminate the contract.
(iv) When the item offered by the supplier repeatedly fails in the
inspection and the supplier is not in a position to either rectify the
defects or offer items conforming to the contracted quality
standards.
(v) Any special circumstances, which must be recorded to justify the

cancellation termination of a contract.
(vi) Ensure that specific comments for cancellation of contract and BG

encashment are in order.
(vii) See whether legal advice was necessary and check for positive
recommendation of legal advice for cancellation of Contract.
(6) Encashment of Performance Bank Guarantee: The performance

security deposit is meant to compensate the purchaser for any loss
suffered due to failure of the supplier to complete his/ her obligations as
per the contract. In case execution of the contract is delayed beyond the
contracted period and purchaser grants extension of delivery period
with or without LD, the validity of the PBG should be ensured and got
extended if required. Similarly, in case the conditions regarding
adherence to delivery schedule, settlement of claims and other
provisions of the contract are not met the PBG may be encashed. In case
723
non discharge of contractual obligations leads to termination of contract,
immediate action to encash the PBG during its validity should be taken.
(7) Risk and Expense Purchase: Risk and expense purchase is

undertaken by the purchaser in the event of the supplier failing to
honour the contracted obligations within the stipulated period and
where extension of delivery period is not approved. While initiating risk
purchase at the expense of the supplier, satisfy yourself that the supplier
had failed to deliver and had been given adequate and proper notice.
Ensure that the supplier is being asked to pay the additional amount
spent by the Govt, if any as compared to the contracted amount. See that
the method of recovering such amount has been considered while
considering risk purchase.
(8) Price Variation Adjustment: The Price Variation Clause and its
implication is to be vetted by IFA. If there was a Price variation clause in
RFP and the case is received to concur the case for price adjustment at
execution stage, then following points are required to be seen:
(i) Base dates shall be the due dates of opening of tenders.
(ii) Date of adjustment shall be midpoint of manufacture.
(iii) Price adjustment will be applied only if the resulting increase or

decrease is more than the contract stipulated minimum percentage
of variation of contract price above which variation will be
admissible.
(iv) No price increase is allowed beyond original DP unless the delay

is attributable to the buyer.
(v) Total adjustment should not be beyond the maximum ceiling

stipulated in the contract.
(vi) In cases of Force Majeure or defaults by the Government, price

variation may be allowed beyond the original schedules delivery
date by an amendment to the contract
724
(vii) No price adjustment shall be payable on the portion of contract
price paid to the contractor as an advance payment.
(9) Exercise of Option Clause:
(i) Under this clause the purchaser retains the right to place orders for
additional quantity up to a maximum of 50% of the originally
contracted quantity at the same rate and terms of contract.
(ii) Such option is however available only during the original period
of the contract provided the clause is included in the contract.
(iii) Option quantity during extended DP is to be limited to 50% of

balance quantity after original DP.
(iv) The clause may be exercised in procurement from single

vendor/OEM subject to there being no downward trend in prices.
However in multi vendor contracts, great care should be exercised
before operating this clause.
(v) The option clause may be exercised on approval of the CFA,

within whose powers total value of original supplies plus value of
the option clause falls, in consultation with the IFA, where
applicable.
(vi) Where the contract also includes a Repeat Order clause, it may be
ensured that the total quantity under Repeat Order and the Option
Clause does not exceed 50% of the originally ordered quantity.
(10) Repeat Order: Repeat Order against a previous order may be placed
at the same terms and conditions as per the original order/contract with
the approval of the CFA and concurrence of the IFA, wherever required
as per delegation of financial powers. The exercise of the Repeat Order
option is subject to the following:
(i) Provision for Repeat Order should be included in the original

contract.
(ii) Repeat order should be placed within 06 months from the date of
725
supply against the previous order.
(iii) Items ordered against the previous order should have been
delivered successfully.
(iv) Original order should not have been placed to cover

urgent/emergent demand.
(v) Repeat order is not placed to split the requirement to avoid

sanction of the next higher CFA.
(vi) The original order should have been placed on the basis of lowest
price negotiated and accepted by the CNC, and not on the basis of
delivery or any other preference.
(vii) There should be no downward trend in the price of the item.
(viii) The requirement should be for stores of identical

nature/specifications, nomenclature etc. Minor improvements in
spec(s) or phasing out of products due to obsolescence should not
be precluded from the purview of repeat order but this aspect
needs to be very carefully examined from the point of view of
interchangeability of the product offered as an improved
substitute.
(ix) Where the contract also includes an Option clause, Repeat Order
may be placed for only such quantity which along with the
quantity for which Option clause may already have been
exercised, does not result in the total quantity under the Option
clause and the Repeat order exceeding 50% of the originally
ordered quantity.
(x) CFA shall be decided taking into consideration, the value of the
originally ordered quantity and the Option clause/Repeat order
quantity.
(11) Project Monitoring: Wherever revenue spending is in the nature of

a project with diverse elements like civil work manpower induction,
726
testing/evaluation, erection and commissioning warranting
synchronized action, ensure that a formal structure is put in place to
review major physical & financial milestones with reference to PERT
chart with a view to avoiding time and cost overruns.
727
8.7. INVOLVEMENT OF IFA IN WORKS PROPOSALS
In case of civil works carried out by the Border Roads

Organisation (BRO), IFA is involved in all the following stages of
planning & execution of works:
(i) Acceptance of Necessity Stage (AoN)

(ii) Administrative Approval Stage (vetting of AEs)
(iii) Tendering Stage
(iv) Expenditure Angle Sanction Stage
(v) Contract Conclusion Stage
(vi) Post Contract Management
In case of works carried out by MES, DGMAP & other authorities,

involvement of IFA is up to the Administrative Approval Stage only i.e.
vetting of AEs
728
8.8. SCRUTINY OF WORKS PROPOSALS BY IFAs
Main points are summarized as under –

a. The Major Works Program/Annual Works Program as approved
by the Ministry of Defence in consultation with Ministry of
Defence (Finance) has been communicated to the Service
Headquarters, lower formations and their IFAs including
PCsDA/CsDA for implementation. The CFAs and their respective
IFAs will ensure that only those works, which are included in
MWP/AWP, are processed for issuing Administrative Approval.
b. The Services HQRs with the approval of MOD & MOD (Fin) will
also communicate the maximum financial ceiling up to which
works within the approved MWP/AWP could be sanctioned by
the various CFAs with the concurrence of their IFAs. They will
also communicate total allotment of funds for new works which
could be released and monitored by the PCsDA/CsDA.
c. On receipt of approved MWP/AWP CFAs will convene a Recce-
cum-sitting-cum-costing boards for the works falling under their
delegated powers.
d. The finalized Board Proceedings will be approved by the CFAs
and forwarded to the Zonal Chief Engineer for preparing the
approximate estimates.
e. Generally, there will be four main stages in a project for original
work i.e. the acceptance of the necessity, administrative approval,
release of funds and technical sanction. However, in most of the
cases, the acceptance of necessity and administrative approval
stages may be combined together as the vetting of necessity,
vetting of approximate estimates and concurrence by IFA (Army)
or Regional PCsDA/CsDA, as the case may be, can be done
simultaneously.
f. The Acceptance of Necessity and Admin Approval will be
accorded by the CFAs with the concurrence of concerned IFAs on
the basis of the detailed scope of work, rough cost indicated in the
729
Board Proceedings and the approximate estimates prepared by the
Zonal Chief Engineers scrutinized by the Command Chief
Engineer/E-in-C’s Branch. Scrutiny of A.Es by the E-in-Cs Branch
at HQrs will not be necessary for those works, which are to be
sanctioned by the CFAs lower than the COAS, CAS & CNS. The
letter conveying the Admin Approval will indicate the Budget
Head from which funds will be provided for the work. Copy of the
Admin Approval will be sent to IFA, Command Regional
PCsDA/CsDA and concerned Engineering Authority.
g. After the issue of Admin Approval by the CFAs within the
existing as well as enhanced financial powers, funds required for
the work during the first financial year will be got released from
the Regional PCsDA/CsDA of Army, PCDA (Navy) and PCsDA
(AF) as the case may be. In commands where there are more than
one Regional PCsDA/CsDA, the PCDA/ CDA co-located with the
command will be command Regional PCDA/CDA. In case of
Eastern Command, CDA Patna will be command regional CDA.
h. While the expenditure against allotment will continue to be
watched by the concerned administrative authorities as per
provisions of Financial Regulations, the IFAs and Regional
PCsDA/CsDA functioning as IFA will also monitor this aspect for
which they will maintain a register keeping records of works
approved and funds released for the same during the first financial
year. This will be ensured neither the overall MPW/AWP ceiling
fixed for each command/service HQrs exceeds nor the funds for
these new works released during the first financial year are
beyond the allocations made for new works.
i. The scrutiny of tender documents by audit or by the IFA prior to
acceptance is not necessary.
j. In case of MAP Works, IFAs Command Army would be the IFAs
for the respective Command MAP. The IFAs Command (Army)
would also be members in the respective Command Committee
(MAP) as laid down in Works procedure for DGMAP.
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General Points to be seen during scrutinising Works proposals
a. See whether case has been included in the MWP of the concerned
year?
b. Do the board proceedings include all the requisite certificates –
(i) Availability of land
(ii) Availability of furniture
(iii) Source of electricity & water
(iv) Accommodation statement Part I & II
(v) Clearance of station Commander
(vi) Engineer Appreciation
(vii) Statement of case
(viii) Layout plan
c. Ascertain whether the work is authorized or special. If special,
whether proper reasons in justification have been given and these
are found acceptable. In the case of authorized work, whether
relevant authority has been quoted and whether the prescribed
scales have been observed?
d. Is the size of the proposed work justified keeping in view the
requirements and existing availability?
e. Whether the value of the work assessed in realistic as per SSR
(Standard Schedule of Rates) updated with reference to market
trend/conditions?
f. Special items of works are to be approved only when exceptional
local conditions justify the necessity or as an important
experimental measure, these should not lead to introduction of a
new practice or change of scales, where there are no scales and no
order prohibiting such works these could be sanctioned if it is
customary or technically essential to provide the same – these
checks should be applied vigorously in the case of special items of
work.
731
g. Whether type of construction (Pt/Ty) is justified and according to
laid down norms depending on the purpose of construction and
the use to which it will be put to and the expected duration of such
use?
h. If an AE was prepared at the Acceptance of Necessity stage, it
should be seen whether it has been updated at the Administrative
Approval stage to take into account market variations etc?
i. Have the following documents been received?
i). Board proceedings
ii). AE with Layout plans of building and external services, Heat
load calculation and Engineer appreciation.
j. Does the Board proceeding include all the requisite certificates. In
the first instance it should be checked that the Board Proceedings
outlining the detailed Justification in terms of
necessity/requirement of the proposed works i.e. building works
(OTM/Married) and external Services, etc. are placed on the file.
Find out whether Board Proceedings have considered the
following points/aspects.
(i) Justification for external services like external electrifications,
external water supply, roads & paths, sewage disposal and
compound wall/security wall and furniture etc. with
reference to (i) existing scales and specifications, and (ii)
existing availability of these services at the station.
(ii) Justification for special items, if any
(iii) Particulars of buildings etc to be demolished if any with
detailed reasons.
(iv) Accommodation statement Part-1 & Part-II accompanying
the Board Proceeding.
k. Does the AE contain the following :-
(i) Existing and proposed – with services such as:
(ii) Layout, plans showing Existing and proposed external
732
services such as:
a) Roads.
b) Culverts.
c) Retaining Walls
d) Water supply
e) Electric supply
f) Sewage disposal and Drainage
g) Fencing and gate.
(iii) Voltage drop calculation.
(iv) Calculation for water supply and sewage
(v) Heat load calculations.
(vi) Details of Buildings to be demolished
a. Name and number of Buildings
b. Temporary, permanent or semi permanent
c. Total
d. Book value
e. Cost of demolition
f. Credit expected
l. Is the time for completion of the project given in accordance with
the time schedule?
m. Is there any additional staff required for the execution of work?
Are the details of additional staff category wise along with number
given? Is there any effect on PDC, if the additional staff not given?
If so, to what extent?
MES CONSTRUCTIONSAL STAFF QUARTERS

a. What is the provision for MES constructional staff?
b. Has the provision been made for the full requirement of Key
Location Plan (KLP) or more than the KLP requirement?
733
c. If the requirement is more than KLP, is there any justification
given?
d. What is the specification adopted?
SITE CLEARANCE
a. Are details attached?
b. Are details of demolition furnished?
SPECIFICATION
Is the specification adopted as per the latest policy letter?
SCALES
a. Are the scales applied authorized correct and latest?
b. Are the scales applied supported by authority quoted in AE?
c. Whether provision made for sleeping out terrace done correctly?
d. Are the conversion factors for Plinth Area (PA) applied correctly?
e. Are extra allowances made for stone construction?
f. Is it realistic based on actual line plan?
RATES
a. Are the rates applied, correct and latest?
b. Are the rates based on :-
i. New sanctioned work by Govt.
ii. Old sanctioned work by Govt.
iii. Recently concluded contract.
iv. Detailed estimates
c. Are the references made for the adoption of standard rates?
d. Are the supporting details given POL the adoption of non-
standard Rates?
e. Are the rates brought up to date?
f. Are the market variations added?
734
g. Whether allowance for the following catered for :-
i. Black cotton soil
ii. Anti Termite Treatment
iii. Framed Structure
iv. Guard bars/grills
v. Damp proof measures
vi. Multi-storied construction
vii. Extra foundation
h. Is all the lump sum provisions made supported by break down
details?
i. Has the difference in cost of stores been taken?
j. Is there any specialist consultation required for the work? If so, has
the amount been taken into account?
FURNITURE
a. Is furniture provided as per the latest scales and authority quoted?
b. Is the rate based on the latest furniture rate list?
c. Are the references to rate list given in the AE?
d. Whether breakup of furniture based on categories of buildings is
given?
RAILWAY WORK
a. Has the cost of Railway job been included?
b. Are the supporting details attached?
ROADS AND DRAINAGE

a. Are width and type of specifications adapted for roads suitable to
density of traffic and wheel load?
b. Whether the allowances for huge cutting/filling, retaining wall is
required to be made in the AE?
735
c. Whether the draining of nullahs/water courses to prevent erosion,
if any, been accounted for?
d. Whether the cost of trial pits or other specialist investigations is
considered?
e. Whether the credit from boulders/rock obtained from
excavations/demolition/dismantling of structure and so on is
accounted for.
MES WATER SUPPLY

a. Whether the statement of requirement of water with break down
details is given?
b. Is the statement as per authorized scale?
c. Whether justification for the proposed items of works is given?
d. Whether existing resources are taken into account while proposing
new items?
e. Whether the water is required to be supplied by civil or other
organization? If so, is it economical?
f. Whether the proposals cater for ultimate KLP requirement? If not,
whether it caters only for the requirement of additional account? If
so, whether the expansion of proposed works is possible to cater
for ultimate KLP requirement?
g. Whether KPO personnel quarter been updated. If so, whether it is
justified.
h. Whether rates included are as per the estimation date?
i. Whether stand by arrangement of power is catered. If not, whether
justification is given for the rates?
j. Whether BP is enclosed.
k. Whether layout plan showing existing and proposed work is
attached?
l. Whether fractional loss calculation has been furnished?
736
m. Whether justification for the sizes of pipes provided is given?
n. Whether schedule of materials and internal water supply fitting in
case of buildings where PA rates do not include the same are
attached?
o. In case of crossings roads, railway and civil highways, whether
permission is taken?
p. Whether any special items? If so, whether justification is given for
providing the special items?
q. Whether longitudinal section showing the gradient, size of pipes
and fittings is given?
r. Whether schematic diagram is given?
s. Whether the quality of waters is approved by Medical Board?
t. Whether any special treatment is required for the water? If so,
whether the same has been included?
u. Whether any investigation works retarding nature of soils
foundation? If so, what action has been taken? What is the
progress so far made?
v. In case investigations are incomplete, on what basis the provision
for the items requiring investigations made?
w. Whether the inclusion of those items is justified?
SEWAGE DISPOSAL
a. Whether BP and layout plan is attached?
b. Does the layout plan clearly indicate all provisions already made?
c. Whether water is available for water borne sanitation? If not,
whether provisions for improvement/augmentation of water
supply is made in the AE?
d. Whether water will be available before sewage works staff
functioning?
e. Whether annual payment is to be made to them? If so, whether
737
their consent is taken?
f. Whether sewage could be delivered for treatment and disposal to
other civil bodies/municipalities? Is so, has it been examined and
found reasonable?
g. Whether the agreement has been reached/proposed to be finalized
with them.
h. Whether schematic diagram of the scheme showing invert level is
correct?
i. Whether any land is required to be acquired for treatment work?
j. Whether tests have been carried out regarding absorption capacity
of soil?
k. Whether adequate number of soak well length of soak wells,
length of soak trenches been provided for the sewage load
proposed?
l. Whether actual drainage lines and slopes are available for
discharge of effluent?
m. Whether permission has been obtained for discharging of effluents
to natural drainage lines for civil/local authorities?
n. Whether longitudinal section of sewage is enclosed?
o. Whether permission to cross railway/roads is taken from
competent authority?
p. Whether trial pits have been made along one sewage line?
q. Whether provisions are made as per the trial pit results?
r. Whether sub soil water depths have been ascertained?
s. Whether the treatment for sub-surface structure required?
t. Whether provision for the treatment of sub-surface structure has
been made?
u. Whether existing works are completely utilized?
v. Whether existing works can take up additional loads?
738
w. Whether pumping of sewage is required? If so, whether provision
for the same have been made?
x. Whether treatment sites are located properly to avoid nuisance?
y. Whether treatment proposed is justified?
z. Whether the provision of key personnel qrs is justified?
aa. Whether the rates adopted are from ED rates list? If not, whether
they have been justified with supporting details?
EXTERNAL ELECTRIFICATION
a. Whether external electrification is catered for pumping station?
b. Whether stand by arrangements are proposed?
c. Whether the pumping station is located properly and accessible?
d. Whether the special provisions are made due to site condition?
e. Whether the conversion of dry type latrines to WB latrines is
involved?
f. If so, whether the provisions have been made for internal sanitary
water supply fittings?
g. Whether annual expenditure statement is worked out and
included?
h. Whether expansion factors are considered?
i. Whether design criteria for design of sewage have been given?
j. Whether discharge statements of sewers are given?
k. Whether special treatment for pipes/under ground structure
required due to soil condition at site?
l. If so, whether provision ate made for the same?
m. Whether the scheme is taken into consideration future works likely
to be connected accordingly to KLP?
n. If so, whether invert levels are fixed for such future connections?
o. Whether minimum velocities attained in the sewers are adequate?
739
p. Whether suitable gradients provided?
q. Whether the standards for sewage effluent are as per
codes/requirements of civil authorities?
r. Whether any revenue is anticipated for sale of effluent sludge
cakes etc.
s. Whether any investigation work regarding nature of soil
foundation yield etc. is required to be done by outside agencies?
t. If so, what action has been taken?
u. Has the investigation been completed?
v. Has the investigation report been given?
ELECTRIFICATION
a. What is the power requirement?
b. What is the source of electric supply?
c. Whether the full supporting details furnished?
d. Is electricity available from the existing sources? If not, how it is
proposed to meet the requirements?
e. Does the electrification scheme fit in the overall plan for the station
to avoid any inflated expenditure at later dates?
f. Whether the layout plan showing existing/proposed installation
with take over point in different colours is given?
g. Whether voltage drop calculations are given?
h. Whether the certificate to the effect the sizes of cables and over
head lines provided are adequate and economical is given?
i. Whether the estimate from SE in case the supply is to be taken
from outside source is given?
j. Whether the schedule of service connections and house service
matters is given?
k. Whether the detail of essential loads when standby set is provided
is given?
740
l. Whether the sketches of sub-station and power house building to
justify the plinth area is given?
m. Whether the details of existing installations and these proposed to
justify provision of key personnel quarters where provided is
given?
n. Whether the details in support of TE when required is given?
o. Whether the schedule of existing and proposed internal wiring is
given?
p. Whether the sketches of the buildings showing internal electric
points where cost is not included in PA rates of the building are
given?
q. Whether a certificate to the effect that after the addition of the
proposed in the estimate, the voltage variation at any consumer
will not exceed the percentage difference as laid down in
certificate given?
r. Is the provision of lightening protection provided used on
standard design?
s. Whether the drawing showing protection system is given?
t. Whether the supporting details in respect of lump sum assessed
rates accepted?
AIRCONDITIONING
a. Does the building/rooms layout indicate suit
(i) Central type
(ii) Package type
(iii) Window type
b. Has reasons for the type adopted given?
c. Has the buildings/room orientation been checked to minimize
effect of solar heat gain?
d. Have all the glazed windows been provided with suitable shades
741
and double glazing or insulated glass?
e. Has the provision of false ceiling of suitable insulation material
been catered for to reduce the room height to requisite minimum
and provide insulation?
f. Has the attic spare been provided with proper natural ventilation?
PLANT ROOM
a. Has the plant room been located at the centre at the centre of the
load and in a place from where supply and return ducts can be
taken with case and fresh air can be taken from outside?
b. Has sufficient space been catered for around the package type plant
for carrying out repairs?
c. Has adequate size of the central air conditioning plant room been
provided?
d. Has the ambient OB and WB been correctly taken based on
Meteorological data, E/M Chapter, E-in-C instructions?
e. Has the inside temperature, humidity occupancy equipment load
and fresh air requirements been taken on instructions issued by Air
HQ/Army HQ/ Naval HQ? If not has the same been obtained
from the users in writing?
f. Has the variations in inside temperature and humidity correctly
mentioned in the design data?
g. Have the following been enclosed :-
(i) Head load calculations.
(ii) Survey sheets.
(iii) Building drawing.
(iv) Board proceedings
h. Is the plant available indigenously? If not, what is the extent of FE
required and country of origin?
i. Has the availability of electricity and water supply required for air
conditioning been clarified?
742
REVISED APPROXIMATE ESTIMATES – Ensure the following:
a. RAEs which are prepared in accordance with the provisions of
DWP, are further checked to see that the causes of the excess have
been set out clearly and concisely in the remarks column of RAE
Part –II
b. If the RAEs are based on completion cost, the same are to be duly
countersigned by the concerned Unit Accountant.
743
FINANCIAL CONCURRENCE CASES – Ensure the following:
a. The date on which the Administrative Approval was accorded and
the work was released for execution are clearly indicated. If the
work could not be released within one month from the date of
sanction, reasons thereof are given.
b. A copy of the Administrative Approval and technical sanction are
placed on the file.
c. The tender action has been taken within the stipulated time or at
least 18 months from the issue of Administrative Approval and six
months from the date of release of the work.
d. In case of delay in tender action beyond three months from the
date of Admn Approval, reasons for delay have been furnished.
e. FC cases involving change in scope of work, adoption of
specifications higher than those indicated in Administrative
Approval, large variation in the quantities of external service,
adoption of Plinth Area rates, and inclusion of items of work not
initially included in the sanction work are not to be entertained.
f. In the case of unavoidable change in scope/specifications of site,
detailed reasons have been furnished in a statement of case along
with a draft Corrigendum.
g. Plinth Area rates for married accommodation reflected in FC cases
are confirming to those approved by E in Cs Branch from time to
time. If not, whether the reasons for increase in Plinth Area rates
are clearly brought.
h. The pre-pricing of tender has been kept within the sanctioned
plinth area rates.
i. The particulars of SSR and ED (Estimated Data); on which the
rates of Administrative Approval are based are given while
explaining the reasons for escalation.
j. Variations between the rates on market analysis and rates as per
prevailing MV and DCS are explained.
744
k. Reasons for not tendering any items such as furniture, air-
conditioning etc along with main tender are given.
l. Works sanctioned by different CFAs are not clubbed together for
tendering.
m. The amount of contingencies available is being spent judiciously
and proportionately.
n. Abnormal delay in planning and finalization of tenders resulting
in time and cost overruns have been explained and justified.
o. Sufficient period of validity of the tender is available for
processing the FC case.
p. Reasons for increase in cost over the Administrative Approval
amount (including tolerance) have been categorically brought out.
To this end, each contributory factor has been separately explained
indicating the financial implications of each factor.
q. Following certificates have been furnished –
i. The rates quoted are reasonable on prevailing market price.
ii. Re-tendering is not likely to lead reduction in rates/total cost of
tendered item.
iii. The excess is not due to change in the scope of
work/specifications.
iv. The excess on the contract cannot be met from any other
savings.
v. Any savings from the amount concurred will not be diverted to
other running contracts.
vi. Scope of work tendered is as per Administrative Approval.
vii. No superior specifications have been adopted.
r. The revised Admin Approval is being accorded by the same CFA
who had accorded the original sanction
745
8.9. POINTS TO BE SEEN BY IFA IN OUTSOURCING /
CONSERVANCY CASES
8.9.1. OUTSOURCING CASES
1) To check that necessity of resorting to outsourcing properly

justified with AIP from Competent Authority;
2) Scope of work & description of services with time frame properly

described;
3) Proposal justified both in terms of economy & efficiency;
4) To be processed through GeM;
5) Availability of Budget to be certified;
6) To check that cost estimate worked out realistically;
7) Proper RFP to be formulated with details the description of service,

activity schedule, manpower schedule, materials schedule,
essential equipment etc;
8) Statutory and Contractual obligation to be compiled with;
9) Eligibility criterion of bidder to be clearly recorded about

registration with Service Tax /Income-Tax / EPF / ESI / PAN etc;
10) Quoted rates not to be less than minimum rates fixed / notified by
State Government and shall include all statutory obligations;
11) Provision for proper verification;
12) LD clause for delay in performance;
13) Penalty for non-performance;
14) Proper mechanism of monitoring;
15) Payment aspects like satisfactory performance, compliance of

various terms and conditions etc.
746
8.9.2. CONSERVANCY CONTRACTS
AoN Stage: The Statement of Case(SOC)should contain the following:
1) Mode of conservancy services (whether by private contractor, Unit
arrangements, Cantonment Board, etc)
2) Extent of total area with details of built-up office area, number of
toilets, etc. and extent of open area.
3) Hiring/contracting to be justified with reference to specified
deficiency of staff against clearly defined scope of work; scope
should be beyond the unit's capacity to undertake the required
services within available staff. It may be ensured that there is no
splitting up of requirement.
4) Periodicity of cleaning/removing the garbage has been specified.
Number of pick up points/garbage bins/ receptacles, etc. have
been indicated.
5) Number of persons(skilled/unskilled)required for the scope of
work
6) Number of supervisors to be employed
7) In case of increase in workers / supervisors, justification is to be
given with increase in pick-up points, population, and distances
involved in picking up garbage, etc.
8) The rates fixed by the Central Labour Commissioner or the rate
fixed by the State Government for the area and for the category i.e,
skilled or unskilled etc., whichever is higher will be admissible in
the outsourcing contracts. This being the legal requirement, the
correct payment of minimum wages rates corresponding to a
particular category is to be ensured by all stakeholders by putting
the clause upfront in the RFP/TE
9) Inability certificate from Cantonment Boards, Municipal Boards to
be submitted for outsourcing to private Contractor
10) Data on preceding financial years including current year, covering
inter alia, sanction No. and date, mode of conservancy service, rate,
747
number of workers skilled or unskilled) and supervisors employed,
number of garbage / pick-up points, number and type of
conveyance used, implements and materials used.
11) If requirement is recurrent in nature, the option of regular contract
may be explored based on a cost benefit analysis.
12) List of registered vendors, duly updated to be enclosed.
Tendering Stage: The following may be ensured:

1) Standard format for T.E. is followed and is comprehensive
indicating clearly the defined scope of work and the service
required.
2) Where estimated value of services is less than Rs. 10 lakh, LTE
with minimum 6 vendors may be resorted to. For value more than
Rs. 10 lakh OTE should be issued
3) In case of private contractor, SD, EMD clause has been
incorporated.
4) Penalty clause is included.
Expenditure Angle Stage:

Reasonableness of rates should be assessed with reference to estimated
cost break-up of the items.
Budgeting
1) A certificate inter-alia, indicating the following may also be
included:
a. Code Head under which the expenditure is proposed.
b. Total allocation under the code head
c. Committed Liability carried forwarded from previous year
d. Balance available for fresh commitments in current financial
year
e. Commitments already made during the current financial
year.
748
f. Net balance available for further concurrence [(d)-(f)].
2) In view of the fact that financial commitment is not created at the

AoN stage, it is clarified that proposals for AON may be
considered for concurrence in anticipation of funds becoming
available subsequently. Funds should however, be available at the
time of issue of expenditure sanction / conclusion of contract.
749
8.10. RECORD MANAGEMENT IN IFA
OFFICES
The list of Files/Registers/Documents to be maintained in PIFA/

IFA Offices along with their retention period, shall be as provided by
the CGDA vide their letters No. IFA/10 dated 16.11.2012 &
Coord/Regulation/ 66018/ Codes & Manuals/OM Part II (part) dated
17.03.2021, and are given in Annexure ‘2.45.A5’ to the Chapter 2 of this
Manual.
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8.11. REPORTS & RETURNS
Report & Returns on format prescribed by the DAD HQrs vide

letter No. IFA/37 dated 09.03.2011 (Circular No. 1 of 2011) as amended
from time to time, are required to be furnished to DAD HQrs through
‘SIFA plus system’.
751
Chapter – IX
Audit Wing
AUDIT WING OF DAD HQRS
9.1. OBJECTIVES
Objectives of the Audit Wing are:
(i) To prescribe, review & modify procedures and quantum of audit

of various accounts conducted by the Defence Accounts
Department.
(ii) To issue decisions to PCsDA/ CsDA/ IFAs on points of doubt in

regulating audit of receipts and expenditure.
(iii) To assist Service Headquarters and Ministry of Defence (Finance)

(in implementing the solutions/suggestions provided) in matters
related to internal audit of accounts of Defence Services.
(iv) To keep abreast of modern techniques under Audit and

Management and to introduce changes as necessary in the
procedure to keep the Department updated.
9.2. DUTIES
The principal duties of this Wing are:
(i) To clarify all doubtful points related to interpretation of

Regulations and other Government orders etc., referred to by
PCsDA/ CsDA/ IFAs from time to time in consultation with
Ministry of Defence and Ministry of Defence (Finance) wherever
necessary.
752
(ii) To advise the Administrative and Financial authorities at Services
Headquarters on interpretation of rules and furnishing them with
such factual data as may be required from time to time.
(iii) Scrutiny of draft amendment to the departmental manuals etc.,

that are related to the portion relating to audit and accounting
procedure.
(iv) To assist “Procedure and Systems” cell in

prescribing/updating/revising and rationalizing methods of
works and procedures to be followed in the Defence Accounts
Department offices from time to time.
(v) Assisting the Director General of Audit (Defence Services) in

settlement of statutory audit objections that cannot be settled at the
Command offices. Also, to carry out investigations of important
statutory audit objections brought to notice, with a view to find
out the causes that contributed to the objection, including defects
in the system, and take suitable remedial action.
(vi) Investigation and submissions to the Government of India for

regularization of all cases of over-payments due to incorrect
interpretation of regulations and failure of audit on the part of the
Defence Accounts Department for which direct responsibility is
attributable to the Department. Decision on disciplinary action
contemplated in such cases is also considered.
(vii) Processing of cases of higher audit and financial advice referred to

by PCsDA/CsDA with the Government of India.
(viii) Investigation and processing of complaints related to the internal

audit work carried out in the offices of the Defence Accounts
Department.
(ix) Scrutiny of draft paragraphs for audit reports, and all further work
connected therewith including examination of C & AG’s reports to
the Public Accounts Committee, their findings and
753
recommendations so far as Defence Accounts Department is
concerned.
(x) Rendition of Annual Certificates and connected

statements/reports to the Ministry of Defence (Finance) and for
inclusion in the Appropriation Accounts of the Defence Services.
(xi) Scrutiny of the reports on the General State of Accounts and

financial irregularities received from PCsDA/ CsDA/ IFAs and
processing the same with the Administrative and financial
authorities concerned.
(xii) Rendition of Annual Commercial accounts in respect of Canteen

Stores Department and review thereon to the Ministry of Defence
(Finance) for further action.
(xiii) General arrangement of work: The work in this Wing is

distributed amongst the following sections: -
(a) Internal Audit Section
(b) Local Audit Section
(c) Management Information System (MIS) Section
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INTERNAL AUDIT SECTION
(i) All matters related to Annual Audit Certificate (AAC), Public

Accounts Committee (PAC), Major Financial Accounting
Irregularities (MFAI), Draft Paragraphs, Audit Paragraphs,
Appropriation Accounts, etc.
(ii) Preparation of Internal Audit Report
(iii) Work related to Civil Works, MES Works & Border Road Works
(iv) Revenue Matters, Married Accommodation Project Works and

related grievances and RTI applications
755
LOCAL AUDIT SECTION
(i) All matters related to Local Audit, Performance Audit and Super
Review.
(ii) War Accounting System & related complaints
(iii) Fixation of Cantonment Board Audit Fee & Local Audit Fee.
(iv) Matters related to losses pertaining to Army, Navy, Air Force, etc.
(v) IMMOLS, AUDOLS, CICG, ILMS, etc.
756
MANAGEMENT INFORMATION SYSTEM (MIS)
SECTION
(i) Consolidation &analysis of MPR

(ii) Personal Target Report
(iii) Monthly Briefing Report
(iv) Change of Audit Jurisdiction amongst PCDA/CDA
(v) Examination of proposal for opening of new DAD office
(vi) Delegation of financial powers
(vii) Raksha Mantri Awards for excellence
(viii) Senior officers meeting, CGDA review meeting
(ix) Controller’s Conference
(x) Synergy Conference with Services
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AUDIT WING AT PCsDA/CsDA OFFICES
9.6. General arrangement of work: The work in this wing is

distributed amongst the following groups:-
(i) Seller Post Audit Group

(ii) Pay & Allowances Post Audit Group
(iii) Pension Post Audit Group
(iv) Stores Audit Group
(v) Internal Audit Group
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SELLER POST AUDIT GROUP
9.7. OBJECTIVE & DUTIES
1. To ensure timely post – audit of sanctions including bills & claims

in respect of which payment has been made by the seller payment
section.
2. Bills/ Claims of all types (including purchase of imported stores)
are paid by the Seller Payment Wing of any PCsDA/CsDA to whom the
bill is automatically forwarded by the system randomly on the basis of
any ‘PLACE’ any ‘FACE’ criterion.
3. While auditing the bills (Compliance Audit) for payment, the

Seller Payment Section shall be guided by the following broad
compliance criteria only:
(i) That there is a provision of necessary funds for the expenditure

duly authorised by a competent authority;
(ii) That the expenditure is in accordance with a sanction properly

accorded and is incurred by an officer competent to incur it;
(iii) That the payment is made to the appropriate beneficiary, as per the
conditions of the Contracts/Supply Orders;
(iv) Invoices/Bill of Supplies reflecting all mandatory details are

submitted/uploaded with the bills;
(v) Certificate regarding stores supplied/services rendered have been

submitted/uploaded in the system.
4. After the payment is made, the paid vouchers will then be

electronically forwarded to the PCsDA/ CsDA office for post audit
under whose audit jurisdiction the procuring entity falls, as per the
under-mentioned arrangement:
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S. No. Procuring Entity Post Auditing Agency
Imported Stores & Services
(i) Army PCDA, New Delhi
(ii) Navy PCDA (Navy), Mumbai
(iii) Air Force PCDA (AF), New Delhi
(iv) R&D PCDA (R&D), New Delhi
Indigenous Stores & Services
(v) Army Concerned regional PCDA/ CDA
(vi) Air Force PCDA (AF), Dehradun
(vii) Navy PCDA (Navy), Mumbai
(viii) R&D Concerned PCDA/ CDA (R&D)
(ix) Border Roads PCDA (BR), Delhi Cantt
(x) CSD CDA (CSD), Mumbai
(xi) IDS CDA (IDS), New Delhi
5. Post Audit of bills & claims in this group involves following

functions:
(i) Audit of Sanctions
(ii) Performance Audit
(iii) Risk Based Audit
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9.8. AUDIT OF SANCTIONS
9.8.1. Audit of sanctions in respect of procurements made by the

Units/Formations/Organisations shall be conducted in this group on
the basis of documents submitted to the Audit Authorities in compliance
to the Rules 39, 40 & 41 of the GFRs-2017 or amendment thereof and as
required by the Audit Authorities in this regard. Audit of sanctions will
mainly be carried out from the perspective of Compliance Audit,
Performance Audit and Risk Based Audit.
9.8.2. Though audit of sanction will be carried out on all the

procurement cases, the Controller General of Defence Accounts may
consider proposing a threshold value for carrying out detailed audit.
However, Audit Authorities shall be at their liberty to carry out detailed
audit of sanctions, pertaining to any Unit/Formation/organisation or
any procurement case, irrespective of the threshold value, after assessing
the risk profile of the concerned Unit/Formation/organisation.
9.8.3. The basic purpose of carrying out Audit of Sanctions is to see

that every item of expenditure from Government Exchequer has been
done with the approval of the Competent Authority in the Government.
9.8.4. Following points are to be seen during sanction audit:
(i) The authority issuing sanction is competent to do so by virtue of

the powers to him, on objects specified in basic regulations/ rules
with reference to scales laid down by the Government.
(ii) The sanction is definite and thus needs no reference either to the
sanctioning authority itself or to any higher authority.
(iii) The monetary limit, which has been set in each case; extends to
each separate sanction.
(iv) The criteria in every case is total cost of a measure and no measure
which requires the sanction of a higher authority shall be
761
sanctioned by a lower authority in installments by splitting in
view for bringing the issue of such sanctions within its powers.
(v) In case there is splitting of sanctions, Audit examination should

look beyond whether it has resulted into financial loss to the
Government apart from violating the basic delegation of powers.
(vi) The terms and conditions laid down while delegating the financial
powers are fulfilled by the CFA.
(vii) Delegated powers are exercised duly giving due consideration to

the standards of financial propriety.
(viii) The powers are properly exercised for the indented purpose and
advice rendered by the IFA/FA is regarded in spirit.
(ix) The sanction should indicate the head of account against which the
expenditure is to be booked.
(x) The expenditure sanction against locally controlled heads is being

viewed against allotments of funds made available within the
budgeted provisions as approved by the Parliament.
(xi) The sanction to expenditure of a definite amount or upto a specific

limit should have been expressed both in words and figures.
(xii) The following clause appears in the sanction: “The sanction issues in
exercise of the powers conferred on me vide Sl No. _____ of
AI/NI/AFA/Govt. letter No. _______ dated ___ in consultation with
Internal Finance Branch vide U.O./I.O. No. _____ dated ______.” The
last sanction no. and date should be incorporated in the sanction.
The sanction should clearly mention the budgetary allocation,
funds exhausted till last sanction, balance of funds available.
(xiii) The specimen signature of the CFA or the officers who are
authorized to sign the expenditure sanction involving Defence
expenditure on behalf of the CFA has been verified.
762
(xiv) The sanction should clearly indicate the amount of expenditure
inter-alia indicating whether the cost of the item is inclusive of all
taxes and duties or otherwise.
(xv) The sanction accorded to incur expenditure during a particular

year has been acted upon during the same financial year itself and
should not be acted upon during the subsequent financial year
unless it is specifically revalidated.
9.8.5. An indicative list of details to be provided in a procurement

sanction is as under:
(i) Broad purpose of the expenditure sanction.
(ii) Name of the item/items and name of the

vendor/supplier/undertaking etc.
(iii) Quantum of item/items or scope of services being sanctioned and

the relevant financial year/s.
(iv) Value of sanction -both per unit cost and total cost (indicating the
taxes and duties whether inclusive or exclusive. Where it is
exclusive of the taxes, it should be indicated whether taxes are
payable in addition, and if so which taxes and duties are payable).
(v) Reference of government authority/letter and schedule/sub

schedule of delegation of financial powers under which the
sanction /approval is being accorded.
(vi) Whether being issued under powers to be exercised without

concurrence or with concurrence of IFA.
(vii) Name of the paying agency.
(viii) Budget major head. Minor head, Sub head, detailed head and code
head under which the expenditure will be booked (as mentioned
in the Defence services classification hand book, as amended)
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(ix) Approval of CFA give vide Note No. ________ dated _________ in
file no. _______ (In case communication of sanction is being signed
on behalf of CFA by a staff officer)
(x) UO No. allotted by the integrated finance (when the CFAs

delegated powers are being exercised with financial concurrence)
(xi) Communication of sanction: Whether being signed by the CFA or

Staff officer authorized by the CFA to sign financial documents on
his behalf and authority/ letter no and date of such authorization.
(xii) If the sanction is issued overruling the advice of the IFA, a copy of
the order recorded by the CFA in writing; containing a gist of the
objection of CDA/IFA and reasons for overruling the advice will
be attached.
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9.9. PERFORMANCE AUDIT
Performance Audit is also called Efficiency-cum- Performance

Audit (ECPA) or Value for Money (VFM) audit. It is a comprehensive
review of the projects, programmes, schemes etc, in terms of their goals
and objectives. It’s is aim is to ascertain the extent to which the expected
results have been achieved with the use of available resources and
manpower.
Performance Audit will ascertain the performance of organization,

programme or scheme in conformity with five R’s- ‘Right Quality’,
‘Right Quantity’, ‘Right Price’, ‘Right Time and Place’ and ‘Right
Source’.
During conduction of Performance Audit, the concept of Thematic

Audit will be kept into consideration. The purpose of such audit is to
focus meticulously on a particular audit objective out of various
objectives. In addition to the general performance evaluation,
comprehensive and in-depth performance analysis may also be carried
out on a particular theme.
Performance audit is carried out to ascertain whether economy in

the financial transactions and efficiency in the procurement processes,
has been achieved. In order to ascertain the efficiency of the
procurement process, inputs, if required, will be obtained from the Local
Audit Authorities. The complete procurement cycle will be taken into
consideration during performance audit for assessing the exact
performance of particular projects, equipment, services. Performance
audit may also be carried out based on a theme, if felt necessary, by the
Principal Controllers/Controllers.
Special emphasis will be given to see how the value for money,
expected to be achieved (In measurable terms), has been stated explicitly
in a particular proposal. After the completion of the project/
procurement, it will be assessed by the Audit Authorities how far the
value for money has practically been achieved.
765
It is also to be seen to what extent the Project Timeframe, as
defined in the project schedule, viz, Project Initiation, Project Planning,
Tender Action, Project Execution, Project Monitoring and Controlling
and Project Closing, has been adhered to.
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9.10. RISK BASED AUDIT
Risk Based Internal Audit (RBIA) by the Defence Accounts

Department will be a tool for the Services and the organizations in
identifying the risk areas involved in procurement, inventory
management processes, etc. The Department shall also facilitate
appropriate risk mitigation by rendering advisories.
These risks may be broadly categorized into Financial Risk,

Operational Risk, Hazard Risk, and Strategic Risk. Risk Based Audit will
be carried out by this wing concurrently with performance audit or in
isolation. An in-exhaustive list of risks involved with procurement and
inventory management process has been enumerated as under:
Type of Risk Mitigation Areas/Activities/Tasks
Financial (1) Compliance to procedure for award of tenders
Risk (2) Price reasonability on manual mode as well as
system.
(3) Performance of the procurement portal.
(4) Conditions of contracts for ensuring performance
(5) Risks that arise from effect of market forces,
changes in prices of inputs, interest rates etc.
(6) Credit Rating of Banks issuing Bank Guarantee
(7) Overpayments by Unit/formations
(8) Outstanding advances,
(9) Non-recovery of dues/revenue
(10) Blockage of Government Funds
(11) Project delays, cost overruns, and inadequate
quality standards;
(12) Violation of GFRs/DPM/DAP, etc, Deviation of
procedures
(13) Fraud Cases- Travel and pay claims,
(14) Unauthorised sanction/splitting of sanction
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(15) Flaws in the process of intimation regarding fund
allotment and budget management.
Operational (1) Risks emanating from Procedures, Practices,

Risks Controls, Equipment, Technology, People
(2) Manpower issues- recruitment/ training/
promotions/ performance management
(3) IT risks, Management oversight
(4) Loss to State due to – Inefficient/Poor Planning
and Irregular procedures
(5) Inadequate contingency plans to maintain
continuity of service delivery
(6) Inadequate skills or resources to deliver services as
required;
(7) Loss or misappropriation of funds through fraud
or impropriety;
(8) Non/Poor utilization of Stores
(9) Non report of service receipt,
(10) Failure of sellers or other agencies to provide
services as required;
(11) Delayed or failed introduction of new technology;
(12) Disruption from industrial action, protest, or
failure of transport or IT infrastructure
(13) Inconsistent programme objectives resulting in
unwanted outcomes.
(14) Creation of situations like vendor lock-in or
technology lock-in.
(15) Lack of provision for verification of the
credentials of the hired manpower or contractors’
labourers.
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Strategic (1) Global supply chain, international trade, barriers,
loss trends in economy
(2) Diversification of supply chain
(3) Avoidance of monopolistic situations
Hazard Risk (1) Lack of credential verifications of outsourced

persons
(2) Property loss, Monetary loss, Personnel risk
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PAY & ALLOWANCES POST AUDIT GROUP
9.11. OBJECTIVE & DUTIES
To ensure that there are no overpayments in payment of Pay &

allowances and related claims paid by Personnel Payment Wing on the
basis of data concurrently fed into the Comprehensive Pay System (CPS)
by the stakeholders.
9.12. AUDIT OF PAY & ALLOWANCES
The principle of 5 R’s. i.e, Right Rules, Right Procedure, Right

Amount, Right Time and Right Payee shall be followed during audit of
pay and allowances, irrespective of whether the documents are made
available to the audit authorities through IT System or manual system or
in a hybrid system.
In case of IT based Comprehensive Pay System (CPS), wherein

compliance audit and payment of Pay and Allowances will be
performed by the automated system, following audit checks will be
exercised with the objectives of risk mitigation:
(i) There is a bona fide order appointing an official to the post or

cadre he/she belongs to.
(ii) All the details affecting initial pay and allowances in respect of the
official have accurately been fed in the system.
(iii) All the subsequent events/causalities affecting Promotions and

Pay & Allowances in respect of the official have correctly been
published through Part-II Orders.
(iv) All the events/causalities published through Part-II Orders and

affecting Promotions and Pay & Allowances in respect of the
official have correctly been fed in the system.
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9.13. SCALE AUDIT
Scale Audit is carried out from the data/MIS reports generated

from the System (CPS). The check of actual strength of a Unit/Formation
as against the establishment authorized for the same in the War/Peace
Establishments will be conducted by this Group with reference to the
monthly Strength Return (Nominal Rolls) submitted by
Units/Formations, depicting the position as at the close of the last day of
the month. This is known as Scale Audit and is carried out as stated
below:
(i) One month's Strength Return (Nominal Rolls) in each half year i.e.,
from April to September and from October to March of a financial
year will be selected for this purpose after the close of the half year.
In conducting Scale Audit, it will be seen that:
a. The total number of officers/ establishments shown on the

posted strength in the Strength Return (Nominal Rolls) is
within the total number of officers/establishments
authorized for that Unit/Formation/ Organisation.
b. The total number of officers from Lt to Major (Lt Col in the

case of AMC), Wing Commander & above (in case of Air
Force) & Commander & below (in case of Indian Navy)
shown as on the effective strength of the Unit/Formation
does not exceed the total number. authorized for that Unit
/Formation.
c. No officer/establishment holding higher acting rank is held

against a lower appointment.
d. If the total number of officers in a particular rank exceeds the

number authorized for that rank in the Establishment, none
of them is holding the rank in an acting capacity and in case
any officer is holding the acting rank, the junior most officer
is reverted so as to bring the actual strength within the
strength authorized for a particular rank. If none of the
771
officer is holding an acting rank, action to get the excess
officer posted out will be taken. The surplus establishment
held by the unit will be objected to in audit and posting out
of the excess officers watched.
Note: Appointments authorized in alternate ranks in Establishment will be

counted against lower of the alternate ranks for the above purpose, unless the
holder of the appointment is substantive in the higher rank.
e. If an appointment is tenable in alternate ranks, only officers

holding the higher rank in a substantive capacity are held
against such appointment and not those holding the higher
rank in an acting capacity.
f. Officers on Course of Instructions of 10 weeks or more

duration are shown separately as officers on the
supernumerary strength.
g. Officers sick in hospital or on sick leave are continued to be

shown in the Strength Return (Nominal Roll) in the proper
place with a suitable remark.
h. Officers on Staff Attachment are continued to be held on the

posted strength against the appropriate appointment.
i. Officers of a Unit/Formation attached on disciplinary

grounds to another unit or suspended from duty and
attached are continued to be shown in the Strength Return
(Nominal Roll) against the appropriate appointment.
(ii) After Strength Return (Nominal Roll) is thus checked, the paid
strength data of the officers/ establishment serving with that
Unit/Formation/ organization (extracted from CPS) will be
verified with the Strength Return (Nominal Roll) to ensure that
they are paid according to the appropriate rank. Discrepancies, if
any, will be settled by referring to Part II Office Order or by a
reference to the Officer Commanding. Thereafter the Strength
772
Return (Nominal Roll) will be endorsed with the remarks "Scale
Audited" and suitable note will be made in the Scale Audit
Register.
(iii) A Scale Audit Register will be maintained by this group. The

Register will be submitted to AO/GO monthly on the 10th day
with a summary of outstandings.
The following offices will be responsible for carrying out scale

audit check of different category of Defence Personnel/ establishment:
S. No. Category of Personnel Scale Auditing Office
(i) Army Officers PCDA (O), Pune
(ii) IAF Officers, Airmen & Jt. CDA (AF), New Delhi under
Civilians PCDA (AF), New Delhi
(iii) Naval Officers, Sailors & PCDA (Navy), Mumbai
Civilians
(iv) Civilians of Indian Army Concerned Regional PCDA/
(including MES) CDA & Area Accounts Offices
(v) Border Roads PCDA (BR) Delhi Cantt & its sub-
offices
(vi) Civilians of DRDO Concerned PCDA/CDA (R&D)
(vii) Non-industrial Civilians PCDA (AF), Dehradun
of Indian Air Force and
civilian employees of
Family Planning centers
attached to Air Force
Stations/Formations
773
9.14. AUDIT OF TRAVELLING ALLOWANCE, DAILY
ALLOWANCE AND OTHER PERSONAL CLAIMS
The principle of 5 R’s. i.e, Right Rules, Right Procedure, Right

Amount, Right Time and Right Payee shall be followed during audit of
the claims, irrespective of whether the documents are made available to
the audit authorities through IT System or manual system or in a hybrid
system.
In case of IT based Centralized Defence Travel System (DTS)

claims submitted online will be processed by the system. Sanction,
calculation, processing and payment in respect of Transportation
Allowance and Daily Allowance will be carried out by the DTS with the
help of data already or concurrently fed into the system. The
responsibility of the audit will be to verify the correctness of the data fed
into the system at various stages.
Risk based audit will be carried out primarily on the authenticity

and validity of the authority (Part-II OO or any other order) sanctioning
move or authorizing a certain allowance in respect of an Officer/PBOR/
Defence Civilian.
774
9.15. REIMBURSEMENT CLAIMS ON ACCOUNT OF
MEDICAL TREATMENT
During the post audit of claims on account of indoor and outdoor

medical treatment of Defence Personnel & civilians following points will
be seen:
(i) The Government servant is entitled to re-imbursement of

Medical expenses under the rules;
(ii) Treatment has been received in a Government/ recognized/

empaneled hospital;
(iii) In case of medical attendance/treatment received in a Cantt.

hospital the individual is a resident of cantonment area where
no Government hospital exists;
(iv) In case of treatment received in Armed Forces Hospital no civil

hospital exists in the station. In station where a Civil hospital
exists the prescribed certificate regarding non-availability bed/
requisite facility is furnished from the Civil Hospital;
(v) A separate claim has been preferred for each patient on

prescribed format duly completed in all respects, signed and
receipted by the Government servant and countersigned by the
Controlling Officer;
(vi) The bill is supported by the under-mentioned documents: -

a. Essentiality certificate, in the prescribed form as the case
may be duly completed and signed by the Competent
Medical Authority;
b. Cash receipt in respect of consultation and injection fees
received;
c. Cash memos for medicines purchased and hospital
receipts for amounts paid to a hospital duly verified by the
Competent Medical Authority;
775
(vii) That the medicines for which re-imbursement is claimed have
not been declared 'Inadmissible' by the DGMS, New Delhi;
(viii) The consultation fees and injection fees are reimbursed

according to the schedule of rates prescribed by Government.
(ix) The advance for treatment, if any, as noted in the Demand

Register is recovered;
(x) The prior approval of the Competent Medical Authority is

obtained when the patient is referred to a specialist by the
Authorized Medical Attendant unless the delay involved entails
danger to the health of the patient;
(xi) In case the Competent Medical Authority refers the patient for
speedy recovery to another medical officer (other than a
specialist) in the station the prescribed certificate from
Competent Medical Authority is attached and that such
references are not indiscriminate;
(xii) Treatment received at the residence of the patient is covered

under the rules and the prescribed certificate of the Competent
Medical Authority is attached;
(xiii) The disease for which treatment has been received comes
within the ambit of relevant rules;
(xiv) Accommodation allotted in the hospital is according to the

status of the Government servant, and that diet, nursing and
other hospital charges claimed are admissible under the rules;
(xv) Treatment for diseases like T.B., Polio, Cancer etc. is covered
under special orders on the subject;
Note: Govt. servants having their Headquarters in Delhi or New Delhi who are
entitled to medical benefits under Contributory Heath Service Scheme are not
entitled to reimbursement of medical expenses.
776
(xvi) Application on prescribed format is required to be enclosed
along with the claim.
(xvii) Medicines purchased during the OPD treatment (only for

CGHS Beneficiary) are not reimbursable as the same are
required to be obtained from the concerned Wellness Centre.
(xviii) Basic Pay in pay level of the beneficiary is required to be

shown in the application form separately.
(xix) As per CGHS rule test prescribed by the doctor is required to

be obtained within 30 days from the date of prescription.
(xx) In case of non-emergency, treatment should be obtained from

private recognized Hospitals after proper referral from
Government Hospital/Dispensary.
(xxi) If treatment is obtained in emergent circumstances, emergency

certificate signed by the treating doctor and self-explanatory
application of the Govt. Servant should be enclosed.
(xxii) In case of death of Govt. Servant, affidavit of claimant and ‘No

Objection Certificate’ from other legal heirs should be obtained
on stamp paper.
(xxiii) In case of indoor treatment, the following documents are

required to be attached.
a. Application Form in the prescribed format
b. Essentiality Certificate
c. Hospital Bill
d. Admission/Discharge Card
e. Refer Slip of Govt. Hospital/Wellness Centre
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9.16. PENSION POST AUDIT GROUP
The work relating to sanction and disbursement of pension is dealt

with by the Personnel Payment Wing as enumerated in the following
paras.
Audit and sanction of pension in respect of Defence personnel &
civilians will be carried out in the following manner on the system
[System for Pension Administration (RAKSHA) {SPARSH}] basedon
some inputs related to service and pay in respect of the prospective
retiree:
Element of Nature of To be carried out Activities
Jobs action
PartII Office Initiation Executives Uploading and Verification of
Order Verification PartII Office Orders notifying
superannuation
Service Initiation Executives Uploading and Verification of
service details of the
Verification prospective retiree on the
system
Pay Initiation Pay & pension Uploading and Verification of
wing of pay details of the prospective
Verification Concerned retiree on the system
Service Centre
Audit Initiation Pension Audit Audit of Services and Pay of
group of Systems the prospective retiree on the
Verification wing of system
Concerned
Service Centre
Sanction Sanction of Pension Audit Sanction of Pension and Issue
Pension group of Systems of PPO
wing of
Concerned
Service Centre
Disbursement Payment of Pay & pension Monthly disbursement (DBT)
Pension wing of through payment gateway of
Concerned accredited bank
Service Centre.
Though most of the tasks and operations related to sanction and

disbursement of pensionary awards will be taken care of by the systems,
there are some areas of potential risk, where risk-based audit is required
778
to be done to eliminate any scope of errors. Basically, risk-based audit
will be carried on the inputs, in respect of Part-II Orders, certificates and
pay fed & uploaded into the system. This will be carried out during
initiation and verification of ‘Audit’ by the Pension Audit group of
Systems wing of Concerned Service Centre as under:
S. No. Category of Personnel Pension Auditing Office

(i) Officers, JCOs, ORs & PCDA (P), Prayagraj
civilians of Indian Army,
Border Road Personnel,
DRDO Personnel
(ii) IAF Officers, Airmen & PCDA (AF), New Delhi
Civilians
(iii) Naval Officers, Sailors & PCDA (Navy), Mumbai
Civilians
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9.17. AUDIT OF PENSION ACCOUNTS
While carrying out post audit of digital records of first payments

of pension, gratuity and commuted value of pension, the first thing that
will be seen is the type of pensionary award including disability element
(if any) as per the entitlement of the pensioner/ family pensioner has
been granted.
Audit of pension payments to all categories of pensioners/ family

pensioners, which are paid monthly/ quarterly are conducted to the
following extent to ensure that the payments made to the pensioners
have been subjected to the prescribed check at least once within a
financial year:
(i) Monthly Payments: One month’s payment in every twelve month

as per the selection order given by the Officer In-charge.
(ii) Quarterly Payment: One quarter’s payments in every four quarter

as per the selection order given by the officer In-charge.
(iii) Wading items: Some of the pensioners may not draw their
pensions in the month in which they fall due, because of non-
identification on due dates. They may receive payments in
subsequent months when identified. The names of such pensioners
would not, therefore, appear in the month’s account selected for
audit and can only be detected if the accounts for subsequent
months are scrutinized. Such items which appear in the months
subsequent to the month selected for audit are called wading items.
The main object of wading is to trace out and spot payments
pertaining to the months selected for audit but made in
subsequent months, in order to audit all such items. The audit of
one month’s payment selected for audit as laid down in sub Para
(i) above would not be complete unless the wading items are also
picked out and audited.
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9.18. AUDIT OF CHANGE STATEMENTS
Change statements fed in the system by stakeholders along with

the Pension Payment Accounts generated from the system and include
the items of payments of following nature. Change items should be
audited in full.
(i) First payment of pension, gratuity & commuted value of pension

to pensioners on admission to pension establishment.
(ii) Last payment of pension due to cessation on account of marriage,

remarriage or earning of livelihood and those stopped under
special order due to misconduct or expiry of the award.
(iii) Payment in arrears of over one year as authorised by

PCsDA/CsDA.
(iv) Payment to the heirs of deceased pensioners.
(v) Cessation of pension due to re-employment.
(vi) Adjustment on account of increase or decrease of pension

consequent to the issue of corrigendum PPO/General Circulars.
(vii) Payments on account of commutation of pension authorized

subsequent to commencement of pension
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STORES AUDIT GROUP
9.19. OBJECTIVES
The objective of Stores Audit Group is to ensure correct recovery

and compilation of dues to Defence Services on Store transactions, hiring
of transport, hospital treatment, etc.
9.20. DUTIES
The Stores Audit Group deals with: -
(i) Maintenance of statistics in connection with and the publication

and revision of rates, pricing of payment issue vouchers, loss
statements, service transport indents, etc., and adjustment of cost
thereof.
(ii) Audit of sale accounts and audit and payment of bills on account
of auctioneers’ commission.
(iii) Watching verification of Credits of high value imported and

indigenous stores.
(iv) Customs duty charges.
(v) Central purchase of stores in India.
(vi) Adjustment of Treasury Receipts/e-MROs for :

a. Hospital Stoppage Rolls in respect of non-entitled personnel
admitted into hospital.
b. Recoveries made on account of loss of stores by individuals.
c. Hiring of Government transport for amenities purposes, etc.
(vii) Adjustment of charges on account of medical treatment between

the Defence Services, Ministry of Home Affairs (Para-military
forces) and State Governments (other than Tamil Nadu).
782
(viii) Recovery of extra expenditure incurred by the Defence Services in
connection with aid to civil powers.
(ix) Adjustment of claims for losses of stores in transit.
(x) Adjustment regarding recovery schedule of GPF /CGEGIS

/CGHS /Advances/NPS Contributions in respect of employees
of temporary establishment of Remount Depots.
(xi) Scheduling of ‘E’ copies of issue vouchers to consignee’s LAO

when details of the same could not be traced out by the
consignor’s LAO.
(xii) To ensure prompt adjustment of cost of recovery of training

provided by the services (Army, Navy, Air Force) to each other’s
personnel.
(xiii) Recovery of cost of training, etc. of foreign personnel attached to

Indian Army, Navy & Air Force training centers.
(xiv) Audit and adjustment of expenditure incurred on account of
Family Planning of civilians of the Indian Air Force
(xv) Audit of contingent and miscellaneous expenditure incurred by
Indian Military attaches/Advisers abroad
(xvi) Adjustment of debits on account of postage and air mail fee on

the bags dispatched by Defence Headquarters.
(xvii) Adjustment of Payment Book Debit (PBD) & Inter-service

Adjustment (ISA) vouchers
(xviii) Adjustment of printing and stationery debts in respect of Indian

Navy & Indian Air Force.
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9.21. RATES: GENERAL
Stock Book Rates, both for free as well as for payment issues, are
ordinarily published by the Branches of the Ministry of Defence
(Finance) vide Para 227 Store Accounting Instructions for the Army
(SAI). But for certain articles of ASC supply, i.e., articles purchased
locally the rates are fixed and published by the PCsDA/CsDA.
784
9.22. ARTICLES OF A.S.C. SUPPLY PURCHASED LOCALLY
(i) FREE ISSUES: - Rates are published annually by the PCDA/CDA.

The rates are calculated with reference to the running contracts, or if
contacts do not exist with reference to the average of the latest purchase
rates prevailing in the Area or Command as the case may be.
Departmental Charges will not be taken into consideration while
calculating the free issue rates. The rates once fixed will not ordinarily be
changed during the course of the year.
(ii) PAYMENT ISSUES: - Recovery rates are worked out annually (for
each station) on the basis of the running contract rates as soon as such
rates are available and are published annually in Area and Independent
Sub-Area Orders. The rates are revised quarterly in cases where there is
a change in the running contact rates, revised rates are also notified in
Area or Independent Sub-Area Orders and take effect from the first of
the month following that in which they are notified.
Note: In the case of articles which are received from contractors at the Supply
Depot and not direct at the unit's ration stand, the transportation charges from
the Supply Depot to ration stands are also included in the recovery rates on a
percentage basis as notified by the Command Headquarters in consultation with
the PCDA/CDA.
The free and payment issue rates of all items procured through
ASC including vegetables, fruits, poultry, fish, charcoal, quick lime, etc.,
will be worked out as provided in the above Para. The rates for articles
of dairy produce, whenever procured and distributed under ASC
arrangements, will also be worked out as above.
In the case of meat fresh, free and payment issue rates will be
worked out by the PCDA/CDA and published annually or more
frequently in Area Orders as in the case of other locally purchased
articles. The Payment Issue Rates will be based on the actual contract
rates plus 10 per cent to cover the cost of establishment and other
miscellaneous expenses. While fixing the Payment Issue Rate for meat
785
fresh, the financial effect of cutting up allowance of 5 percent will also be
taken into account.
786
9.23. RATES FOR FODDER
(i) FREE ISSUE RATES: These rates will be worked out annually by the
Assistant Director of Remount, Veterinary and Farms in consultation
with the PCDA/CDA, which will be published in Area and Independent
Sub-Area Orders, Stations-wise.
(ii) PAYMENT ISSUE RATES: These rates will be worked out annually
by the Assistant Director of Remount, Veterinary and Farms in
consultation with the PCDA/CDA who will see that they do not differ
appreciably from the general supply rates. After approval, the recovery
rates will be intimated to Commanders ASC by the Assistant Director of
Remount, Veterinary and Farms. Commanders ASC will arrange for
these rates to be published in Area Orders with those of local purchase
items for information of units. These rates will be operative until the
publication of the next year's rates.
787
9.24. PRICING OF PAYMENT ISSUE VOUCHERS, LOSS
STATEMENTS, SERVICE TRANSPORT INDENTS, etc. AND
ADJUSTMENT OF COST THEREOF
The “Pricing Party” (i.e., PCDA/CDA, LAO, or Executive) for

pricing of vouchers, loss statements, service transport indents, etc., in
various Army units/formations is laid down in Store Accounting
Instructions.
788
9.25. PAYMENT ISSUE VOUCHERS
Payment Issue Vouchers which are required to be priced by the

PCDA/CDA are received in the Stores Audit group for pricing. The
vouchers, after pricing, will be returned by the group to the unit or
formation from whom they were received.
The LAOs will in all cases of payment issues made to other than
individuals on cash payments, prepare and forward to the
PCsDA/CsDA, Payment Issue Schedules (I.A.F. (C.D.A.)-615) in respect
of all Payment Issue Voucher (irrespective of the "Pricing Party") by the
10th of the month following that to which the transactions pertain. The
schedules will be prepared separately for each category of payment
issue and the category endorsed on each Payment Issue Schedule from
the marking of the Payment Issue Voucher. They will be supported by
vouchers and by the Treasury Receipts/e-MROs where advance
payments are required to be made. In case of payment issue which is
adjustable by book debit, the receipted copies of vouchers when
received will be forwarded by the issuing formation through the LAO to
the PCDA/CDA. The PCDA/CDA will maintain a guard file of
Payment Issue Schedules separately for each category to enable him to
readily ascertain and take prompt action to clear outstanding payment
issues in each category.
Note: A guard file of Payment Issue Schedules separately for each category
shall be maintained for watching adjustment of demand on account of payment
issues of stores from Ordnance Depots, etc.
In the cases of payment issues made to individuals on cash

payment by ASC retail shops, AOC officers’ shops and other formations
where payment issues are carried out on cash basis, the formations will
remit cash realization into the local bank. The Treasury Receipts/e-
MROs so obtained by them will be collected by the LAOs and forwarded
in one batch monthly to the PCDA/CDA. These Treasury Receipts/e-
MRO will be received in the Stores Audit group and promptly
789
acknowledged, clearly indicating the numbers, dates and amount of the
Treasury Receipts/e-MROs.
In the case of stores issued on payment to Civil Departments, etc.,

the receipted copies of vouchers received from the issuing formation
will be collected in a jacket. In the last week of each month, the task
holders concerned will sort out the vouchers by the Civil Departments,
etc., and prepare a statement in triplicate for each Department separately
and also the necessary Transfer Entry Punching Medium through Office
Automation System. One copy of the statement will be retained by the
Stores Audit group in support of the Transfer Entry Punching Medium
and the other two forwarded to the Account Wing. The Stores Audit
group will mark off the items in the Payment Issue Schedules after the
Transfer Entry Punching Medium have been duly prepared. Any
vouchers received after the preparation of the monthly Punching
Medium will be adjusted in the same manner through separate Transfer
Entry Punching Medium, and adjusted as far as possible, in that month's
account.
As an exception to the above procedure, adjustment will be made

in weekly batches instead of monthly only in the accounts for February
and March.
As the adjustment in the account for March are made in

anticipation for the receipted copies of vouchers, the debits by the
PCsDA/CsDA will be supported by un-receipted copies of vouchers
indicating thereon clearly the Departments or Offices to which supplies
were made or services rendered to facilitate accurate allocation. The
receipted copies of vouchers when subsequently received will be
recorded after necessary verification in the Stores Audit group.
When stores originally issued on payment are returned by non-

military departments, etc., copies of the vouchers on which the stores are
returned will be sent by the local audit staff after pricing to the
PCDA/CDA, who will then afford credit for the amount due to the
consignee through the Exchange Account. In cases where the pricing
790
party is the PCDA/CDA, the copy of the vouchers will be sent to the
PCDA/CDA.
The responsibility to watch recovery of cost of stores supplied to

foreign government against their demands sponsored by the Ministry of
External Affairs devolves on the DAD HQrs. A copy of the statement
showing particulars of the issuing depots, number and date of issue
vouchers, their cost, etc., will be forwarded by the DAD HQrs to the
PCDA/CDA concerned, who in turn will furnish relevant extracts
therefore to the respective LAOs for linking. Any issue voucher not
included in the statement will be immediately reported to the DAD
HQrs.
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9.26. LOSS STATEMENTS
Loss Statements will be sent in 6 copies to the Stores Audit group

for pricing. After pricing, in accordance with Rule 163 of FR Part-I Vol-I,
the original and duplicate copies will be returned to the unit or
formation concerned. The triplicate copy will be forwarded to the LAO
responsible for the audit of stores accounts of the unit or formation and
watching of recovery action.
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9.27. SERVICE TRANSPORT INDENTS
The cost of service transport provided to M.E.S. formations is

required to be assessed in order to take the same in the accounts of
works. For this purpose, the indents in respect of transport provided to
M.E.S. formations are priced by the Local Audit Officers.
Whilst pricing the payment vouchers/loss statements pertaining

to ordnance, mechanical transport, medical and clothing stores, if it is
found by the PCDA/CDA that a particular item is not traceable in the
priced vocabulary he should insist on the depot concerned for obtaining
the payment issue rate of that item from Army Headquarters. In other
cases, the rate will be obtained by the PCDA/CDA from the Ministry of
Defence (Finance). The rates so obtained from the Army HQrs or the
Ministry of Defence (Finance) will be recorded in a Register of NIV items
which will be utilized for pricing of such items for future periods also.
Note : To facilitate prompt communication of rates by the Ministry of Defence

(Finance) and to reduce delay in initiating recovery action, the Stores Audit
group should (1) collect information regarding correct nomenclature and
catalogue number, etc., which should be written clearly, preferably in block
letters, before prices of the stores which are not available in their own offices are
called for; and (2) In cases where the number of items for which rates are
required is 25 or more, a list in duplicate by sections of priced vocabulary will
be furnished.
793
9.28. AUDIT OF SALE ACCOUNTS RELATING TO SURPLUS,
OBSOLETE AND WASTE STORES
Basic rules for disposal of surplus, obsolete and waste stores are
laid down vide Rule 217 to 223 of GFR, 2017 and Chapter – 10 of Manual
for Procurement of Goods, 2017 issued by the Ministry of Finance.
Detailed instruction on the following points are also issued by the
Ministry of Defence from time to time:-
(i) Delegation of powers to authorities subordinate to the

Ministry of Defence.
(ii) Fixation of guiding/reserve prices and the finance and

accounts authorities whose concurrence is required.
(iii) Acceptance of bids below the guiding/reserve prices.
When such stores are disposed off, units/formations will prepare

Sale Accounts (I.A.F.A.-58) in quadruplicate/quintuplicate (in the case
of salvage section/sub-depot) and forward the original, duplicate and
triplicate copies duly signed by the Competent Officers together with
the under mentioned documents to the PCDA/CDA's offices for
disposal:-
(i) Treasury Receipts/e-MROs; the number and date of the

Treasury Receipts/e-MROs and the names of the banks
should be noted on the Sale Accounts.
(ii) Auction Catalogues (I.A.F.O. - 2468), (prepared separately

under general heading (a) metal and hardware, (b) textiles
and leather, (c) vehicles, (d) Plant and Machinery, (e) other
miscellaneous items all approved, and with the 'reserve
prices: recorded thereon, by the Sanctioning Authority as
also the result of the auction). The amounts shown in the
Auction Catalogues (accepted bid) should invariably agree
with those shown in the Sale Accounts.
794
(iii) Letters, if any, from the Sanctioning Authority altering the
reserve prices originally noted in the approved Auction
Catalogues.
(iv) The letter of acceptance from the purchaser in case of stores

sold by private treaty by local authorities.
(v) Comparative statements showing the names of tenderers, the

rates tendered and the rates accepted, in the case of stores
sold by local authorities by inviting tenders.
On receipt of the Sale Account (IAFA-58), the three copies will be

paired and the duplicate copies, duly checked in all respects, will be sent
to the Financial Advisor concerned. The triplicate copies of the Sale
Accounts will be sent to the LAOs concerned in convenient batches
monthly or by decades at the discretion of the Officer-in-Charge, Stores
Audit group, for purpose of linking. The original copies together with
the Treasury Receipts/e-MROs will be retained and the remaining
documents (in original) referred to at items (ii) to (v) above returned to
the units or formations from which they were received.
(vi) A copy of Sale Release Order duly receipted by the

Purchaser and endorsed with the relevant Gate Pass No. and
date (the date of Gate Pass being the date on which the stores
have actually been removed from the site) in the case of sale
of surplus salvage stores.
(vii) No. 5 copy of the Issue Voucher duly receipted by the

Purchaser and endorsed with the relevant Gate Pass No. and
date (the date of Gate Pass being the date on which the stores
have actually been removed from the site) along with the
Sale Release Order in the case of sale of surplus stores.
While checking the Sale Accounts, it will be seen that:-
(i) The Sale Account has been signed by the Competent Officer;
(ii) The tendering of the Sale Account has not been delayed;
795
(iii) The number and date of the Treasury Receipt /e-MRO as
also the name of the bank has been quoted on the Sale
Account;
(iv) The Authority for sale and the method of disposal of stores
have been shown;
(vi) the name of purchaser has been given;
(vii) in the case of stores sold by auction, the amount shown in

the Sale Accounts agrees with the bid accepted at the auction
sales which is shown in Auction Catalogue;
(viii) the accepted bid as shown in the Sale Account does not fall
below the "reserve price" shown in the Auction Catalogue. It
should be seen that the sanction of the Competent Authority
as per Schedule 24 of DFPDS – 2016 exists where the bid has
been accepted below the reserve price.
(ix) the stores have been removed within the stipulated time as
indicated in the Sale Release Order and if not, ground rent,
where due, has been recovered correctly with reference to
the documents referred to in clause (vi) and (vii) of the above
Para.
Any discrepancy or irregularity discovered as a result of exercising

the above checks will be referred to the unit or formation rendering the
Sale Account, and the audit report will be rendered to unit/ formation
by PCDA/CDA after rectification of discrepancy/ irregularity.
The responsibility for the audit of Auctioneers’ Commission bills

devolves on the Regional/Functional PCDA/CDA concerned. While
auditing the Auctioneer's Commission bills, it will be seen that:
(i) The amount of the proceeds on which the commission bills is

based agrees with the Sale Account, Treasury Receipts/e-
MROs, etc. received from the stock holder.
796
(ii) The commission is determined on the slab/conditions as per
Auctioneer Agreement.
(iii) The arithmetical calculations in the bill are correct.
(iv) In case the sale proceeds are not credited within the
stipulated time, interest at one percent is charged from the
auctioneer for each month or part of a month during which
the payment into the bank is in arrears.
With a view to facilitate the verification of payment of the claims

submitted by the Auctioneers, a register in IAFA - 707 will be
maintained in the Stores Audit group. The necessary entries in the
various columns of the register will be made simultaneously with the
payment of the bills.
797
9.29. PROCEDURE FOR CREDIT VERIFICATION OF
CREDITS OF HIGH VALUE IMPORTED AND INDIGENOUS
STORES
The procedure is as under:
(i) Due to winding up of the ISM Washington/London, changes

(as enumerated in following points) in procedures were made.
(ii) To facilitate standardization of the number of

copies/documents required by various agencies for all the three
Services and number of copies required as per payments terms
of contract should be mentioned in the Letter of
Credit/instrument. The instructions regarding number of
copies for invoice, airway bill from the suppliers as laid down
in Defence Procurement Manual, as amended from time-to-time,
shall be followed.
(iii) One set of original documents (invoice, packing list, airway bill,
Bill landing, certificate of origin, etc.) is required to be
dispatched directly by SBI to the Landing Officer. The
intimation regarding Bank Release Order (BRO) by the bank
will be sent through electronic media/fax through a single
contact point in each of the three Service HQrs and full address
and contact number of the concerned officer will be intimated
to SBI (Foreign Exchange Division) by the Service HQ.
(iv) All copies of invoices along with shipping documents as

provided for in the contract are required to be routed through
the bank. In all contracts concluded after 27.04.2007, the same
will be indicated.
(v) A complete set of documents will be sent by the bank to the

office of the PCDA, New Delhi and then the latter will pass the
relevant information relating to payments electronically
through Wide Area Network (WAN) to the consignee
PCDA/CDA. Since the data would be transmitted by the office
798
of the PCDA, New Delhi and the entire consignee PCDA/CDA
under the control of the DAD HQrs have been connected with
WAN, physical transmission of invoices, etc., by the PCDA,
New Delhi may be dispensed with.
(vi) The consignee LAOs will also forward the details of credit
verification to their PCDA/CDA. The necessary instructions
and its implementation by all the PCDA/CDA shall be the
responsibility of DAD HQrs.
(vii) Inspection of stores received in Depots should be as per a

uniform procedure by all the Service HQrs. Any
discrepancy/short receipt is to be taken up immediately with
the supplier by the Service HQrs. Also the signatures of
concerned ADG of Army (and equivalent for other Services)
shall continue for countersignature of Joint Receipt Inspection
(JRI). The time frame for completing JRI i.e. 120 days will be
strictly adhered to.
(viii) The Service HQ will respond in a time-bound manner to the

minor discrepancies like clerical errors, incomplete
documentation, etc. noticed by the SBI (Foreign Exchange
Division), in the LoCs. For the major discrepancies the
information will be submitted within a week of its receipt from
the SBI.
(ix) The Service HQ will make full use of the automated system,
wherever it exists, for transmission of documents such as
original copies of invoice, BRO, JRI, etc., to the various agencies.
799
9.30. CUSTOMS DUTY CHARGES
Consequent upon withdrawal of customs duty exemption on

Defence foreign procurement imports by the Government of India with
effect from 1st April 2016, the importing Services are required to pay
customs duty for the Defence stores received at the Air or Seaport of
delivery within a period of 72 hours. The Customs Department has
implemented a software system called ‘ICEGATE’ for making online
customs duty payment whilst linking their payment transaction
documents. The Customs Department has made it mandatory for each
importer, whether private or Government, to effect payments through
‘ICEGATE’. In order to streamline the payment modalities of Customs
Duty and put in place a system of processing and remitting customs
duty payment, the following procedure is to be adopted:
Port-wise DAD offices have been assigned the responsibility of

making customs duty payment. These DAD offices will hereby be called
Customs Payment Offices (CPOs). The CPOs will process and pay
customs duty within 48 hours of receipt of the following documents: -
a. Contingent Bill indicating the amount of customs duty payable

and code head to which the expenditure is to be booked (to be
prepared by the Executive Authorities).
b. TR-6 Challan (Challan given by the Customs Authority that serves as

their payment authority and primary link document for effecting online
payment through ICEGATE).
Customs Duty being a mandatory government levy to be paid

promptly, other than checking of fund availability, no pre-audit/
additional verification is necessary. For this purpose, the services will
ensure that CPO-wise budget allotments are provided and adequate
budget is always made available to the CPOs.
The ports of import for Defence Foreign Procurement and their

designated CPOs are as under:
800
S. Port of Import Executive User Designated Custom Payment
No. Authority PCDA/ CDA Office (CPO)
1. Mumbai Embarkation Army PCDA (SC), AO (DAD) Emb.

(Seaport) HQrs (EHQ) Pune HQrs, Mumbai
Navy
Air Force
2. Mumbai Navy Navy PCDA (SC), AO (DAD) Emb.

(Airport) Pune HQrs, Mumbai
Air Force Air Force
3. Chennai (Sea Embarkation Army CDA Chennai CDA Chennai

& Airports) HQrs (EHQ)
Navy
Air Force
4. Kolkata Embarkation Army CDA Patna Area Accounts

(Seaport) HQrs (EHQ) Office, Kolkata
Navy
Air Force
5. Hyderabad Air Force Navy CDA CDA Secunderabad

(Airport) Secunderabad
Navy Air Force
6. Vizag (Sea Navy Navy PCDA (Navy), Area Accounts Office

port) Mumbai (Navy), Vizag
7. Kochi (Sea & Navy Army PCDA (Navy), Area Accounts Office
Airports) Mumbai (Navy), Kochi
Army Navy
Air Force
8. Bengaluru Air Force Air Force PCDA, PCDA, Bengaluru

(Airport) Bengaluru
9. New Delhi/ Air Force Army PCDA (AF), PCDA (AF), New
Hindon/ New Delhi Delhi
COD, New Navy
Ambala
Delhi
(Airports) Air Force
10. Jamnagar Air Force Air Force PCDA (SC), AO GE (AF),

(Airport) Pune Jamnagar
801
S. Port of Import Executive User Designated Custom Payment
No. Authority PCDA/ CDA Office (CPO)
11. Gwalior Air Force Air Force CDA Jabalpur AO GE (AF), Gwalior
(Airport)
12. Nagpur Air Force Air Force PCDA (AF), JCDA (AF), Nagpur
(Airport) Dehradun
13. Goa (Airport) Navy Navy PCDA (Navy), Area Accounts Office
Mumbai (Navy), Goa
14. Port Blair Navy Navy CDA (IDS), Area Accounts

(Airport) New Delhi Office, Port Blair
15. Karwar Navy Navy PCDA (Navy), Area Accounts Office

(Seaport) Mumbai (Navy), Karwar
A. ACTION ON THE PART OF SERVICES
(1) Each Service will obtain IEC [Import Export Code] from Director
General of Foreign Trade (DGFT) under Ministry of Commerce.
(2) On obtaining IEC, the Service(s) will register under Accredited

Client Programme (ACP) with local Customs authorities at each
import port.
(3) Services will immediately initiate proposal for obtaining 'Capital'

Custom Duty Code Head from DAD HQrs. Pending issue of
separate code head on the Capital account, for the Capital
procurements, the Services will process the customs duty payment
bills against the capital budget allotment (stores / machinery &
equipment) under which the procurement has been sanctioned.
(4) Service HQrs will issue Budget Allotment letters also indicating an
estimate of the Customs Duty payable in the financial year to the
concerned Services units, PCDA/CDA and the CPOs.
(5) For payment processing, Executive Authority will prepare

Contingent Bill (CB) indicating the Custom Duty amount and
802
Code Head for booking expenditure. The Contingent Bill will be
signed by the Officer Commanding of the Services' unit.
Contingent Bill along with TR6 Challan (Customs duty payment
authority issued by the Customs Authority at the port of import) will be
immediately submitted to the concerned CPO.
B. ACTION ON THE PART OF THE PCDA/CDA/CPOs
(1) Concerned PCDA/CDA will open a Government Drawal

Account[Zero balance A/C] in SBI. Cheques of this SBI account
will be held with the concerned CPO. This cheque series is to be
intimated to SBI, along with the Names and Specimen Signatures
of the cheque signing officers with the instructions that the said
account will be strictly operated for making Customs Duty
payment through ‘ICEGATE’.
(2) The CPOs will process and pay customs duty on the basis of the
Contingent Bill and TR-6 Challan. On receipt of the Contingent Bill
and TR-6 Challan from the Executive Authorities for consignments
landing at Sea/Air Ports, the bill will be immediately passed
(within 48 hours) for payment. Punching Medium will be
prepared for booking to the respective consignee code head –
Army, Navy or Air Force.
(3) Cheque for payment will be issued from the SBI Drawal Account
in favour of “Commissioner of Customs A/C (Concerned IEC
holder)” to the SBI along with the bill of entry and TR-6 Challan.
This cheque will be physically taken to the concerned desk at the
SBI by the rep of CPO.
(4) Concerned SBI will immediately make e-payment of Customs

Duty on behalf of the CPO through payment gateway of Customs
i.e. ICEGATE.
(5) After making the payment, SBI will generate the e-receipt and
hand over to the representative of the CPO. The original e-receipt
will be handed over to the Executive for getting the goods released
803
from the Customs Authority. Copy of the e-receipt will be filed
along with paid bill as proof of payment received by Customs
Deptt.
C. RELATED INSTRUCTIONS
(1) No cash assignment system, suspense booking, public fund

account system will be operated by the concerned DAD /
Executive Offices for customs duty payment processing and
release. All transactions are to be completed within 48 hours of
TR-6 issued by the Customs Authority and all payments are to be
effected by the SBI online through ICEGATE.
(2) The Customs Authority will issue the documents for effecting
payment at the local port which may not always be co-located
with the PCDA/CDA designated as the main paying authority in
the concerned defence contract. Also, the CPOs may not
necessarily be sub-offices of the primary paying authority.
Therefore, based on the overall MoD sanction and the CPO-wise
customs duty budget allotments, the designated CPOs will effect
custom duty payments. No separate sanctions and/or
authorization from the primarily contract paying PCDA/CDA
will be awaited / called for by the concerned CPO.
(3) Eventually it is envisaged that the requirement for issue of

cheques to SBI will be dispensed with and the customs duty
payments will be effected through the SBI CMP online payment
portal for Defence. For this purpose, SBI CMP payment platform
will need to be interfaced with ICEGATE that would entail
deliberations with SBI CMP and Customs authorities and
modifications to the ICEGATE and SBI CMP online portal
platforms.
D. EXCEPTIONS TO THE ABOVE PROCEDURE
Under following circumstances, manual payment of Custom Duty

(directly to Custom Authorities through RBI cheques) will be made:-
804
i. In cases where bonds [sanctioned by MoD] have been furnished
for releasing the goods for the period 01/04/2016 to 31/07/2016.
ii. In cases where equipment has been received back after repair,
under warranty clause from foreign OEM.
iii. When ICEGATE portal is down [not working] and manual Bill of
Entry is generated by Customs Authority.
Hence, in addition to payment on ICEGATE, in the aforesaid

circumstances [Sl No. i to iii], RBI cheques may be issued to Customs
Authorities directly. For all these cases, Customs Authority generate
manual Bill of Entry and TR-6 Challan is not generated through
ICEGATE. CPOs will pass the bill based on the Contingent Bill
submitted by Executive Authorities, availability of funds and Customs
manual Bill of Entry.
805
9.31. CENTRAL PURCHASE OF STORES IN INDIA
Payments for the cost of stores purchased centrally in India for

supply to the Defence Services against contracts placed by the Army
Purchase Organization (APO)are made by the office of the PCDA, New
Delhi.
After the close of the month, Central Purchase (CP) vouchers along
with the relevant inspection notes are scheduled by the office of the
PCDA, New Delhi to the respective consignee LAOs with a copy of top
list of vouchers to the concerned PCDA/CDA for want of
acknowledgement from consignee LAOs. Timely rendition of
acknowledgements by the consignee LAOs will be monitored by the
Stores Audit group of the PCDA/CDA concerned.
806
9.32 ADJUSTMENT OF TREASURY RECEIPTS/e-MROs
Besides the Treasury Receipts/e-MROs relating to sale of scrap,

etc., e-MROs in respect of the following transactions are also received in
the Stores Audit group. The Treasury Receipts/e-MROs will be adjusted
in the manner laid down in the chapter on the Accounts Wing.
(i) Hospital Stoppages Rolls in respect of non-entitled Personnel

admitted into hospitals.
(ii) Recoveries made on account of losses of stores.
(iii) Recoveries made on account of hiring of Government

transport for amenity purposes.
(iv) Recoveries of hire charges for issue of Ordnance stores on

hiring.
Note: In the case of recoveries on account of hire charges for issue of ordnances
stores on hiring, it should be ensured that proper machinery exist for watching
the receipt and adjustment of Treasury Receipts/e-MROs where recoveries are
made on cash basis and of the receipted copies of issue vouchers where book
adjustments are made. In either case, it should be ensured that there is no delay
in realizing the dues to Government.
807
9.33. ADJUSTMENT OF CHARGES ON ACCOUNT OF
MEDICAL TREATMENT BETWEEN THE DEFENCE SERVICES,
MINISTRY OF HOME AFFAIRS (PARA MILITARY FORCES) AND
STATE GOVERNMENTS (OTHER THAN TAMIL NADU)
In the case of a State employee admitted into a Military Hospital,

an advance intimation of the admission and discharge of the individual
concerned (as and when it takes place) will be sent by the O.C., Military
Hospital to the Account Officer paying the State employee under
treatment, through the PCDA/CDA of the area in which the hospital is
located. Such advance intimations from the Military Hospital will be
received in the Stores Audit group and acknowledged after keeping a
suitable record of the case in the Demand Register. They will then be
sent to the Accounts Officer concerned for information and such action
as they may consider necessary for recovery from the individuals
concerned of the amount payable by them (Government servant) under
their rules.
O.C. hospital will as usual render hospital stoppage rolls on a

month-to-month basis to the PCDA/CDA concerned quoting the
number and date of the advance intimation already sent and endorsing
prominently thereon the name of the State Government to which the
employee belongs. These hospital stoppage rolls will be acknowledged
to the hospital concerned in the usual manner. The transactions will be
linked with the relevant entry made in the Demand Register and
arrangements made at the end of each month for raising debit against
the Civil Accounts Officers concerned (supported by those Hospital
Stoppage Rolls) on account of the cost of treatment at the rates given in
Government of India, Ministry of Defence letter No. 9(1)194(D) (Med)
dated 11th August, 2005. The entry in the Demand Register will be
cleared by noting against the item the number and the month’s account
in which the debit has been raised.
In the case of service personnel (including Commissioned Officer)

treated at civil hospitals, advance intimations of the admission and
discharge will be received by the PCDA (O)/PAO (ORs) paying them
808
and debits on the account will also be raised against him by the Civil
Accounts Officers concerned. That PCDA/CDA/ PAO (ORs) will be
responsible for the adjustment of such debits against the Defence
Services Estimates and for the recovery of hospital stoppages under the
normal rules from the individuals concerned. For this purpose, it will be
necessary to keep a suitable record of such intimation through which the
recovery of hospital stoppages (where due) can be watched and debits
received from the Civil Departments accepted after check and linking.
The Ministry of Home Affairs (Para Military Forces), personnel of

the National Cadet Corps and personnel of the Defence Services serving
with NCC units are also within the scope of the above arrangement.
However, the state of Tamil Nadu remains outside the scope of the
above arrangement.
809
9.34. RECOVERY OF EXTRA EXPENDITURE INCURRED BY
THE DEFENCE SERVICES IN CONNECTION WITH AID TO CIVIL
POWERS
(a) When troops are called out in aid of civil powers during occasions
like famine, earthquake, floods, strikes, etc., statistics of extra
expenditure and loss of revenue will be maintained by the Stores Audit
group. When a demand for aid is received by the Defence Authorities,
HQrs of Commands will allot a nickname to the aid and furnish the
same to the PCDA/CDA concerned together with completed details of
the nature of the aid.
(b) With reference to the detailed procedure laid down in the ‘Note on
expenditure incurred when troops are called out in Aid of Civil Powers,
1962’, information/documents are made available to the PCDA/CDA to
assess independently the expenditure incurred in connection with a
particular aid which is recoverable from the civil authorities concerned.
(c) Recovery of expenditure incurred by the Defence Services in

connection with a particular aid to Civil Power will be affected centrally
by the Regional PCDA/CDA in whose audit area the aid is rendered
regardless of the fact that the expenditure in respect of the aid might
have been incurred by other PCsDA/CsDA.
(d) To facilitate PCsDA/CsDA in effecting recovery of extra

expenditure in connection with the aid for which he is responsible, the
transaction appearing in the books of other PCsDA/CsDA in connection
with the aid should be intimated by them to the concerned PCDA/CDA
quarterly.
(e) The PCDA/CDA concerned will consolidate all the transactions

relating to particular Aid which is rendered in their area and raise debits
against the Account Officers or recover cash when the recipients of the
aid are local bodies, etc.
(f) They will furnish to the DAD HQrs a quarterly statement

indicating the month's accounts through which the recoveries have been
810
affected from the parties concerned. The statement should be submitted
to reach the DAD HQrs by the 10th of the second month following the
quarter to which it relates. Nil reports are also required to be rendered.
811
9.35. ADJUSTMENT OF CLAIMS FOR LOSS OF STORES IN
TRANSIT
When a claim on the railway authorities for loss of stores in transit

has been accepted, a copy of the acceptance letter from them indicating
the total cost accepted is received from the consignee in the
PCDA/CDA's office. Debit for the amount will be raised against the
railway Accounts Officer concerned through the C.G.A., New Delhi duly
supported by a copy of the acceptance letter and credit taken to the
relevant store head of account.
In respect of imported stores, except Naval Armament Stores

(explosives), a copy of the claim on account of stores short
landed/damaged will be received from the Embarkation Commandant
by the PCDA/CDA in whose area the Port is located for watching the
progress of the claim. The amounts recovered from the shipping
companies will be credited into the treasury through Treasury
Receipts/e-MROs. The Treasury Receipts/e-MROs will be received by
the PCDA/CDA and adjusted by him/ her finally in his books to the
appropriate receipt head. As regards, the Naval Armament Stores
(explosives), a copy of the claim will be received by the PCDA (Navy)
who will be responsible for watching the progress thereof. The Treasury
Receipts/e-MROs for the amounts recovered will also be adjusted by
him/ her.
812
9.36. SCHEDULING OF ‘E’ COPIES OF ISSUE VOUCHERS TO
CONSIGNEE LAO
As per Para 61 of Army Local Audit Manual Part – I, ‘E’ copies of

the Issue Vouchers are to be forwarded by the Consignor’s
RAO/LAO/ALAO, to the concerned consignee’s RAO/LAO/ALAO
(for credit verification) directly where consignee Unit/Formations’
location / LAO is known to the Consignor’s LAO. In case, consignee
unit’s location pertains to other Commands or the location is not known
to the Consignor’s LAO/ALAO, ‘E’ copies of Issue Vouchers are
required to be forwarded to the Main Office (Stores Audit group), who
will after consulting secret list of units (received from the Internal Audit
group) will forward them to the consignee’s RAO/LAO/ALAO for
credit verification at their end. Acknowledgement of scheduled ‘E’
Copies to consignee’s LAOs is watched by the Stores Audit group by
means of the Scheduling Register.
813
INTERNAL AUDIT GROUP
9.37. OBJECTIVES
The objectives of the Internal Audit Group are:-
(i) To assist Administrative and Executive Authorities in improving

the financial administration of the units and formations under
their Command.
(ii) To ensure that financial and other resources placed at the disposal
of the Administrative & Executive Authorities are utilized in
the best interests of State.
(iii) To evolve methods to increase the cost effectiveness of the

expenditure incurred by Administrative & Executive Authorities.
(iv) To keep the Administrative and Executive Authorities and CGDA

informed periodically of the General State of Financial
Management.
814
9.38. DUTIES
The duties of the Internal Audit Group are:–
(i) To ensure that internal audit of sanctions/ expenditure and local

audit of store accounts/ inspection of cash accounts in respect of
units/ formations covered by the organization is carried out
effectively and results thereof are reported and followed up.
(ii) Receipt, examination and circulation of Government letters, etc.,

in respect of matters affecting local audit of store accounts and
other checks carried out by Local Audit Officers as also matters
affecting audit of sanctions.
(iii) Examination of Defence expenditure with a view to explore ways

and means of achieving economy where practical.
(iv) Examination of important internal audit points emerging from

audit of sanctions as also the audit points received from LAOs/
RAOs and Audit Sections of the Main Office.
(v) Audit of Sanctions of expenditure by Competent Financial

Authorities lower than the Government of India in exercise of the
Financial Powers conferred on them with or without Financial
Concurrence/ Consultation.
(vi) Tendering Financial Advice to the local administrative authorities

and rendition of quarterly report to the CGDA showing items of
Financial Advice and higher audit tendered.
(vii) Disposal of special reports and outstanding objections of units

and formations moving out of Command/ disbanded.
(viii) Monitoring of Local Test Audit Reports (LTARs)
(ix) To monitor follow up action on test audit objections. The Internal

Audit Group should also maintain a record of the action taken on
LTARs, Draft Paras and Audit Paras and render a progress report
to DAD HQrs on monthly basis.
815
(x) Consolidation and editing of the quarterly report on Major
Financial Accounting Irregularities.
(xi) Consolidation and rendition of Annual Audit Certificate to the

DAD HQrs.
(xii) Audit including higher audit of Loss Statements and preparation

of the statement of losses for inclusion in the Appropriation
Accounts.
(xiii) Action on references from LAOs/ RAOs on audit and procedural

matters.
(xiv) Approval of half yearly Local Audit Programmes and scrutiny of

monthly local audit completion certificates and related works.
(xv) Action on tour notes, Super Review Reports and Reviewing

Officers’ reports.
(xvi) Action on Audit inspection reports, audit notes and the

Consolidated Annual Accounts of Cantonment Boards.
(xvii) Editing and submission of half yearly Internal Audit Reports to

HQrs Office.
(xviii) To establish a linkage between various Audit reports viz. MFAI,

IAR and AAC. It should also be ensured that the items suggested
for inclusion in IAR and AAC have invariably been included in
the MFAI Report earlier.
(xix) To liaise with DAD HQrs and other PCsDA/CsDA to identify

areas for Performance Audit, Super Review and Special Audit.
The Internal Audit Group must create a database of reports/
recommendations of such special audit projects towards the end.
(xx) To analyze the audit observations included in MFAI, IAR and

AAC and suggest systematic/ procedural changes to prevent
recurrence of irregularities.
816
(xxi) To monitor follow up action on internal audit observations and
update the status in reports submitted to HQrs Office.
(xxii) Higher Audit of ‘Contract Management’ especially the Contracts

relating to acquisition of weapon systems and purchase of stores
including rations.
(xxiii) Holding of Quarterly Audit Conclaves at Command/ Corps

HQrs level.
817
9.39. STRENGTHENING OF INTERNAL AUDIT
(a) The audit observation/ objection should be issued by at least

an IDAS officer (Time Scale level) except for cases where only
certain documents/classifications are required to be called for
verification by the SAOs/AOs.
(b) Care should be taken to ensure that the best reporting
standards are maintained while communicating objections to
the executives and objection statement should be issued to
Officer Commanding of Units. The level should be raised in
case of non-reply / delayed reply.
(c) Observations of common nature should be frequently
circulated to the executives to desist them from recurrence of
similar type. The observations should be noted in the Audit
Progress Register (APR) and proper follow up action should
be taken till finality. The APR and correspondence files
should be put up for review by the IDAS officer on a regular
basis.
(d) Pre / Post audit of bills and vouchers conducted by
SAOs/AOs should be randomly scrutinized by the Group
Officers by carrying out judicious scrutiny to the extent of 5%
and 10% of all bills and vouchers respectively. In addition to
this the Addl. CsDA/Joint CsDA should carry out random
audit / vigilance check of 2% of Pre/Post audited bills and
vouchers on a Monthly basis to see that proper quality and
procedure of audit is in place.
(e) Addl. CsDA/Joint CsDA will frequently monitor the working
and effectiveness of LAOs/RAOs/SAOs/AOs/AAOs(GE) by
visits / discussions.
818
9.41. ENTRY/EXIT CONFERENCES TO BE HELD BY OFFICERS
WHILE CONDUCTING AUDIT BY PCsDA/CsDA
Lack of communication between the executive and audit in an area

of major concern. There is a dire need for more interaction between the
executive and the audit at the micro and macro level. The seminar as a
forum for interaction between executive and audit authorities should be
held more frequently at both DAD HQrs and field PCsDA/CsDA level.
The entry/exit conferences between the head of the local audit team and
the Head of the Executive unit/formation should be invariable
conducted and the record note of the decisions taken should also be
issued for watching further progress in the matter. The copies of the
record note should also be forwarded to the Main Office for watching
the progress.
819
9.41. AUDIT CONCLAVES
PCsDA/CsDA should conduct quarterly Audit Conclaves at

Command/ Corps HQ level for dealing with audit objections in the
manner as appended below:
(1) Action by LAOs/RAOs: Observations noticed during the audit

will be discussed in exit conference by the LAO/RAO. The
unsettled objections will be forwarded to Units/Formations. After
awaiting replies for one month, those objections where replies
were not found satisfactory will be forwarded to the Internal
Audit Group of office of the PCsDA/CsDA.
(2) Action by office of the PCsDA/CsDA:
(i) Internal Audit Group will receive objections from the

LAO/RAO/Area Accounts Office/ Accounts
Office/PAO/SAO (GE)/AO (GE)/AAO (GE)/AAOBSO and
from various wings of the Main Office.
(ii) Objections will be taken up by the ACDA/Dy.CDA (IA) with

unit and higher formation within 1 to 2 months of their
receipt.
(iii) All outstanding objections will be discussed in Audit

Conclaves at Command/ Corps HQ level by the
PCDA/CDA/ Addl.CDA/ Jt.CDA. The Audit Conclave may
be held, in the first instance, every 6 months to discuss all
outstanding objections. Thereafter, these conclaves may be
held every quarter.
(iv) The outstanding objections may be reviewed quarterly.

Objections remained unsettled will be forwarded to DAD
HQrs under Internal Audit Report within next 6 months.
820
9.42. EXAMINATION AND CIRCULATION OF
GOVERNMENT LETTERS, etc.
All Government, IHQ of MoD and DAD HQrs letters in respect of

matters affecting local audit of store accounts or other checks carried out
by Local Audit Officers will be received in the Internal Audit Group. It
will be ensured that, if they are not capable of clear implementation,
clarifications are obtained. These orders (as well as the method of their
implementation) will then be communicated to the Local Audit Officers.
821
9.43. EXAMINATION OF DEFENCE EXPENDITURE FOR
EXPLORING MEANS OF ACHIEVING ECONOMY
The function of audit is not merely to see that the authority for
expenditure exists, but also on legitimate occasions to investigate the
necessity for it. It will examine whether the individual items were in
furtherance of the scheme for which the budget was provided; whether
the same results could have been obtained otherwise with greater
economy; whether the rate and scale were justified in the circumstances;
in fact, it will ask every question that might be expected from an
intelligent tax-payer bent on getting the best value for his money. For
this purpose, comparison of expenditure of cash and certain important
kinds of stores selected in each unit will be necessary in respect of (a) the
same unit as between different quarters of the year; and (b) units of the
same type during a particular period. Investigations for financial advice
will cover the whole field of Defence expenditure but particular
attention will be paid to those items where extravagance is more likely,
for example:–
(i) The working of hospitals by comparison between the costs of
diets, extras, etc.;
(ii) The railing or back-railing of stores (by examination of counter-
foils of credit notes);
(iii) Use of Government transport;
(iv) The cost of MES maintenance and repairs;
(v) Working of contracts, both ASC and MES;
(vi) Critical examination of the practical working from the financial
point of view of various measures introduced by Government;
(vii) General scrutiny of Part II orders of units (this may disclose
matters on which financial advice may usefully be tendered to
Administrative Authorities);
(viii) Condemnation of equipment, etc., in different units of the same
arm of the service;
822
(ix) Scrutiny of estimates and expenditure pertaining to large works
or projects with a view to seeing whether there have been
material modification or deviation from the sanctioned estimates;
(x) If the accounts for the month of March of any GE's office or the
statement of cheques issued/e-payment made during March
received from it, indicate an unusual and serious rush of
payments towards the close of that month, the Group should
investigate the causes and the effects of the rush and hurried
payments which it must have involved.
It will be the sole responsibility of the LAOs/RAOs, to take on, in
local audit the functions of financial advice and to furnish the Internal
Audit Group with such useful points as may come to their notice in their
day-to-day audit and which merit investigation for financial advice
purpose so that they may be dealt with more critically and
comprehensively in that Group. Similarly, Audit Groups will also be
responsible for bringing to the notice of Internal Audit Group cases
which in their opinion may, with advantage, be investigated in detail. A
record of items of financial advice and higher audit tendered to Officers’
Commanding of units and Administrative Authorities, and the result
thereof will be kept by the Audit Groups in a register to be maintained
for the purpose. A quarterly report showing such of the items as have
been accepted by the Administrative Authorities will be sent to the
Internal Audit Group who will compile and submit the same to the
CGDA, after being seen by the PCDA/CDA/ Addl.CDA/ Jt.CDA.
823
9.44. EXAMINATION OF SANCTIONS TO EXPENDITURE BY
COMPETENT FINANCIAL AUTHORITIES LOWER THAN THE
GOVERNMENT OF INDIA
All cases in which authorities lower than Government of India,

have exercised their financial powers vested in them, should be critically
examined vide Rule 65, 66 and 67 of Financial Regulations Part – I
Volume – I and important cases in which it is noticed that the powers
have not been properly exercised or the advice tendered by the
PCDA/CDA has been disregarded will be closely watched and reported
to the DAD HQrs., where necessary.
824
9.45. TENDERING FINANCIAL ADVICE TO THE LOCAL
ADMINISTRATIVE AUTHORITIES AND RENDITION OF
QUARTERLY REPORT THEREON TO THE DAD HQrs
Financial advice tendered to local administrative authorities can be

divided into two portions namely: –
(i) Responding financial advices, which consists of (a) advice on
definite points referred to the PCDA/CDA; and (b) advice as the
result of investigations into facts which are normally accepted on
the statement of Commanding and Administrative Officers; and,
(ii) Original financial advices, which consist of advising the
administration of any method through which equal efficiency can
be obtained with less expenditure.
The Internal Audit Group will ordinarily carry out only original
financial advice work which will be under the personal guidance of the
PCDA/CDA/ Addl.CDA/ Jt.CDA. The responding financial advice
work will be dealt with by the Audit Groups concerned, invoking the
assistance of the Internal Audit Group in cases of special importance.
The result of a PCDA/CDA’s investigation on all individual points
of higher audit and financial advice and the conclusion he has formed
thereon will be presented by him to the local military authorities
concerned, if he considers that the results justify such a course. No item
of financial advice will, however, be pressed upon without the
knowledge of the Command or Area Staff with whom the proposition
should be fully discussed. The PCDA/CDA should prominently bring to
the notice of the DAD HQrs. cases in which suggestions made by them
could not be implemented due to the unhelpful attitude of the local
Administrative Authorities and also the further remarks of the
PCDA/CDA thereon is submitted to the DAD HQrs.
Besides tendering financial advice, it is one of the primary duties
of the PCDA/CDA to institute measures which would assist service
officers and the officers under their control in their day-to-day accounts
work and in putting them wise not only to their responsibilities on the
825
maintenance of accounts but also to the likely pitfalls that may be
encountered and the preventive measures to be taken.
A quarterly report showing items of financial advice and higher
audit tendered and accepted by the Administrative Authorities should
be submitted to the DAD HQrs. by the 10th of the month following the
quarter.
826
9.46. SPECIAL REPORTS AND OUTSTANDING
OBJECTIONS OF UNITS AND FORMATIONS MOVING OUT OF
COMMAND OR DISBANDED
(i) Units moving within Indian Limits: – The local audit of the accounts
of a unit under orders to leave the audit area of one PCDA/CDA for that
of another will be completed upto the end of the month preceding the
final visit of the local audit staff and all objections (including those
already outstanding) will as far as possible be settled before the unit
leaves the station. A special report showing the exact state of the unit's
accounts and the month upto and for which the accounts have been
audited will be sent by the auditing L.A.O. to the Internal Audit Group
of his/ her PCDA/CDA.
On receipt in the Group, the special report will be scrutinized and orders
of the Addl.CDA/Joint CDA obtained in respect of any item falling
within their financial powers which is not considered worthwhile to
pursue. The items waived by the PCDA/CDA/ Addl.CDA/ Jt.CDA will
be deleted from the report which will then be sent to the PCDA/CDA to
whose audit area the unit has proceeded. The PCDA/CDA will forward
the report together with its enclosures to the LAO concerned for
necessary action and obtain his acknowledgement. In case the accounts
of the unit are reported to be in an unsatisfactory state, a report to the
effect will be made by the PCDA/CDA to the Area Commander and the
case should be included in the report on Major Financial and Accounting
Irregularities.
(ii) Units disbanded, demobilised, etc. :– The audit of the accounts of
units and formations under disbandment, demobilization, etc., will be
carried out generally on the lines indicated in Para 312 and 313 of Army
Local Audit Manual Part-I Vol-II except that local audit will be
conducted to the date of the move of the unit to the Demobilization
Centre. On completion of final audit, the LAO of the station at which the
unit is located before leaving for the Demobilization Centre will forward
a special report as prescribed in Para 16 ibid through the PCDA/CDA to
827
the LAO of the Demobilization Centre. At the same time, a copy of the
special report will be sent directly to the LAO of the Demobilization
Centre, to enable the latter to take up the audit of the store accounts at
the Demobilization Centre without waiting for a reference from the
PCDA/CDA. The following items will find a place in the special report.
(a) Items that required the orders of the Commandant of the
Demobilization Centre under the financial powers delegated to
him.
(b) Items that required the sanction of an authority higher than the
Commandant of the Demobilization Centre.
(c) Items that cannot be disposed of under the financial powers of the
PCDA/CDA of the area in which the unit was located before move
to the Demobilization Centre.
On receipt in the Internal Audit Group, the special report will be
examined with a view to ensure that no items which can be disposed of
under the financial powers of the Defence Accounts Department Officers
concerned is passed on for disposal to the LAO of the Demobilization
Centre. Action should also be taken by the LAO of the original station
from which the unit moved to advise the Officer Commanding of unit to
obtain the sanction of the Commandant of the Demobilization Centre in
cases where such sanctions are necessary. It will then be for the LAO of
the Demobilization Centre to not only deal with the objections raised by
himself/ herself in the final audit of the accounts checked by him/ her
but also with those objections which have been intimated to him by the
LAO of the station from which the unit moved to the Demobilization
Centre. The final statement of objections, etc., which cannot be disposed
of even under the powers of the Commandant of the Demobilization
Centre should be scrutinized by the PCDA/CDA of the area in which
the Demobilization Centre is located. These objections will be reported
by the PCDA/CDA by inclusion in the quarterly report on Major
Financial and Accounting Irregularities to the Commander of local
Headquarters whose duty it will then be to institute such enquiries as
828
may be deemed fit and to report the items through proper channel to the
Branch concerned at Army Headquarters for their orders.
The above instructions deal with the procedure to be adopted
mainly in the case of consuming units moving from the area of one
PCDA/CDA to another in which the Demobilization Centre is situated.
The principles underlying these instructions are generally applicable to
other units and formations which are disbanded, demobilized, etc., and
to units and formations which though located at different stations are in
the audit area of the same PCDA/CDA. In the case of units located at
the Demobilization Centre itself, all necessary audit will be carried out
by the LAO of the Demobilization Centre.
Note: As the responsibility for watching the disposal of balances of cash and
fund accounts devolves on the Audit Group concerned, the Internal Audit
Group will forward extracts from undisputed reports to them for necessary
action and obtain their acknowledgements.
The Internal Audit Group has to perform the task to issue ‘Secret
List’ of all the units moving in and out of their jurisdiction vis-à-vis
entering/modifying/deleting the details/data of the units (including the
third-party vendors, etc.) in Centralized Office Automation System i.e.
PRABAL to enable release of various payments to them.
829
9.47. TEST AUDIT REPORTS
A Test Audit objection statement will be entered in the register of

Test Audit objections to be maintained in order to watch their prompt
settlement.
830
9.48. DRAFT PARAS OF LOCAL AUDIT INTEREST
RECEIVED FROM DIRECTOR OF AUDIT DEFENCE SERVICES
FOR INCORPORATION IN THE AUDIT REPORT, DEFENCE
SERVICES
The material required for the Audit Report, Defence Services is

collected by the Director General of Audit, Defence Services, from
various sources as indicated in Appendix IV to the Manual of Audit
Department, Defence Services, Part I. Much of this material originates in
the shape of Draft Paras prepared by the Deputy / Assistant Directors of
Audit, Defence Services. The Deputy / Assistant Directors of Audit,
Defence Services, are required to have the facts contained in these Draft
Paras verified by the PCDA/CDA concerned and then submit the same
to the Director of Audit, Defence Services, for incorporation in the Audit
Report. After the Director of Audit, Defence Services, has accepted the
Draft Paras for inclusion in the Audit Report, he refers them to the
concerned Branch of IHQ of MoD and the DAD HQrs. for remarks
and/or acceptance.
On receipt of the Draft Paras, in the offices of the PCsDA/CsDA, it

will be entered in the Draft Para Register. The Draft Paras will be
checked to see that: –
(i) The statement of facts as made therein is correct;
(ii) The responsibility, if any, for the irregularity has been clearly
brought out and accepted by the authority concerned; in case the
responsibility is directly of the Defence Accounts Department, it
should be so stated;
(iii) Remedial measures, if any, necessary have been taken and a
statement to that effect also been made in the Paras; and
(iv) If a Draft Para is based on a case taken up by internal audit, this
fact is acknowledged in the Draft Para itself.
831
The Draft Paras will be immediately brought to the notice of the
Command Headquarters concerned (for examination and comments)
with a view to making sure that the Draft Paras are factually correct and
their presentation is objective and fair as Paras are likely to appear in the
Final Audit Report and would come to the special notice of the Public
Accounts Committee. A period of 30 days will be allowed to the
Command Headquarters for furnishing the final replies to Draft Paras.
Copies of the Draft Paras will be endorsed to Lower Formations and
concerned simultaneously while addressing the Command
Headquarters to avoid delays.
After action as indicated above has been taken the Draft Paras will
be returned to the DGADS, D.A., duly accepted or with such other
remarks and modifications as may be considered necessary within 6
weeks of their receipt.
A copy of each Draft Para as finally concurred in by the
PCDA/CDA will also be forwarded to the Administrative Authorities
concerned.
To enable the DAD HQrs.to be sufficiently well posted regarding

facts, etc. stated in the Draft Para in time, an advance copy of the Draft
Para duly concurred in by the PCDA/CDA should be sent to the DAD
HQrs. giving complete information of the circumstances of the case in
the Proforma given in Annexure ‘9.48.A1’ to this chapter.
Note 1: In forwarding the Draft Paras, copies of correspondence should not be
forwarded to the DAD HQrs. but only a brief, properly edited and lucid
summary of the case dealing with varying aspects thereof particularly the extent
of responsibility, if any, which can be attributed to failure on the part of the
DAD, should be sent to the DAD HQrs.
Note 2: The Draft Paras should be forwarded to the DAD HQrs. only after any
amendments proposed by the PCDA/CDA have been accepted or otherwise by
the Test Audit.
832
9.49. CONSOLIDATION AND EDITING OF THE
QUARTERLY AUDIT REPORT (Erstwhile MAJOR FINANCIAL
AND ACCOUNTING IRREGULARITIES)
Quarterly Audit Report {erstwhile Major Financial and Accounting

Irregularities (MFAI)} deal with matters relating to units and formations
in various Arms and Services which are worth bringing to the notice of
Headquarters Command or the Administrative Authorities concerned.
The following types of irregularities will be included in these reports: –
(a) (i) Cases involving irregular maintenance or non-maintenance of

Accounts which, in the personal opinion of the PCDA/CDA, have
serious implications.
(ii) Cases in which the value of financial irregularity or loss involved

is Rs 5 Lakh or more in each case.
(iii) Cases of serious irregularities which cannot be translated into

financial terms, but which in the personal opinion of the
PCDA/CDA should be brought to the notice of the Army
Commanders / Air Headquarters/Naval Headquarters and
Administrative Heads of Departments / Organizations (in other
cases).
(b) Apart from the cases of financial irregularities coming to the notice of
PCDA/CDA through audit processes in the Main Office, Local Audit
Offices/ Sub Offices and reports from Administrative Authorities,
special attention should be paid to the following items: –
(i) Utilization of Plant and Machinery for the purpose of which

purchased and installed.
(ii) Identification of slow moving and non-moving items of stores in

Depots/Store holding formations.
833
(iii) Deterioration in the condition of stores due to unduly
long/inadequate storage.
(iv) Defective planning and implementation of projects involving

significant investments, highlighting in particular major deviations
from original time and cost targets.
The Internal Audit Group is responsible for scrutiny, consolidation

and rendition of the quarterly audit report (erstwhile MFAI) for the
quarter ending June, September, December and March each year by 20th
of the month following the quarter. For this purpose, LAOs/RAOs, Sub
Offices and Wings in the Main Office will render their quarterly reports
to the Internal Audit Group. The consolidated report termed ‘‘Quarterly
Audit Report (erstwhile MFAI)’’ report will be prepared for the
Command as a whole and will be rendered to the Command
Headquarters, etc.
The report will be rendered in two parts viz., Part I and II as per
Annexure ‘9.49.A2’ and ‘9.49.A3’ to this chapter. Part I is for indicating
fresh irregularities and Part II for irregularities reported previously but
still outstanding. Both the Parts have been divided into two Sections
each, viz. Section A and B. Section A is for indicating Cash Irregularities
and Section B for Store Irregularities. In Part II of the report besides
giving item No. and the month / quarter of the reports in which the
items were originally included, against each item in brief should also be
given inter-alia indicating the latest position for readily drawing the
attention of the authorities concerned.
The report will be forwarded on the Proforma reproduced at

Annexure ‘9.49.A4’ to this chapter (Forwarding memo for the report).
The reports which will be signed by the PCDA/CDA or by the

Addl.CDA/ Jt.CDA in the absence of the PCDA/CDA will be addressed
and copies endorsed to the parties concerned in the following manner:
(a) In the case of Army Units / Formations the report will be

addressed to the GOC-in-C Command by name with copies
834
to the Commanders of Functional Commands under whose
jurisdiction the unit/formation falls in / Area / Sub-Area
Commanders enclosing items pertaining to their Areas / Sub
Areas. The names of Units / Formations will be arranged Sub
Area / Area-wise.
(b) A copy of the report with relevant items only may also be
endorsed to the concerned Directorate at IHQ of MoD
whenever items of irregularity pertaining to the Units like
Central Ordnance Depots / Base Workshops (MES),etc., are
included therein as the regularization action lies with the
concerned Directorate. The PCsDA/CsDA may pursue with
the Directorate the cases of delay in regularization action.
(c) The PCDA/CDA (Air Force and Navy) will address the
reports to the respective Command Headquarters.
(d) Reports in respect of DGNCC, DGR&D, DGI, BRDB and Inter

Service Organization, etc. will be addressed to the
Departmental Heads with copies to the concerned
laboratories / Estt., etc. together with items pertaining to
them.
(e) Copies of all reports will be endorsed to the DAD HQrs and
Sr. DGAS/Dy. DGADS/Asst. DGADS concerned.
The reports should be drawn up and edited with the greatest care
so as to achieve the object for which they have been introduced. The
narration in Part I of the report should be concise and lucid, highlighting
the specific nature of irregularity, the degree of seriousness, the amount
involved, the precise point at which the failure is revealed and reference
to the relevant rules and orders, etc. In order to draw the attention of the
concerned authorities effectively, the narration should not normally
exceed two pages. The following points should also be explicitly
mentioned in the narration of each case of irregularity, wherever
necessary:
835
(i) Whether the irregularity has come to light during a
percentage audit and/or during process of check over
selected items; or whether it is a case of erroneous
certification by the executives; and
(ii) The precise point at which and the extent to which failure on
the part of the executives is revealed.
Cases which, in the personal opinion of the PCDA/CDA, are so

important or significant as to be reported to the Ministry of Defence /
Integrated Headquarters of MoD (Army/Navy/Air Force)/ Ministry of
Defence (Finance) will be included in Proforma I reproduced in
Annexure ‘9.49.A2’. Nil reports will also be indicated. All other cases
will be included in Proforma I, reproduced in Annexure ‘9.49.A2’.
In order to enable action being initiated by the DAD HQrs and by

authorities at Integrated Headquarters of MoD / Administrative
Authorities concerned in cases referred to in the preceding paragraph,
full particulars of the action already taken at Headquarters, Commands
or by the PCDA/CDA and the nature of action suggested for
consideration at DAD HQrs. level will also invariably be indicated.
Copies of relevant correspondence that has passed on at Command level,
etc. will also be enclosed for information.
Note: Items in the QAR/IAR reports which are subsequently included in the
CGDA's certificate appended to the printed Appropriation Accounts, will be
formally taken out of the quarterly audit report (erstwhile MFAI) but pursued
to finality in the normal course. As for other items in the QAR, the same should
continue to be exhibited till the cases are finally settled.
Inordinate delays in the inclusion of an irregularity in the Report

on quarterly audit report (erstwhile MFAI) almost defeat the object of
these reports. It is, therefore, essential that cases of financial irregularity
detected during a month are reported promptly either in the same or in
the month following that to which the quarterly audit report (erstwhile
MFAI) relates. Whenever there is an abnormal delay either in the
detection of irregularity or in its inclusion in quarterly audit report
836
(erstwhile MFAI) after its detection, the reason there for should
invariably be communicated to the DAD HQrs either through the report
itself or simultaneously with it.
To ensure that there is no undue delay in reporting to the

Administrative Authorities cases of important financial irregularities,
the LAOs, will bring all such cases to the personal notice of the
PCDA/CDA through special reports. On receipt of these reports, they
will be examined in the Internal Audit Group and the cases reported to
the Administrative Authorities with full particulars as expeditiously as
possible. Similar action in regard to the irregularities detected in the
Main Office will be taken by the sections concerned and the number and
date of the communication under which the report was made,
communicated to the Internal Audit Group along with quarterly report.
A Register of Financial Irregularities will be maintained in each

Audit Group of the offices of the PCDA/CDA and by other Audit
Officers.
837
9.40. INTERNAL AUDIT REPORT
A report containing the unsatisfactory features, financial

irregularities (having financial value of Rs. 7 lakh or more in each case),
cases of fraud, defective planning and implementation of projects
involving significant investment, wrong interpretation of financial
rule/authority/order, erroneous payments/ over-payments, defalcation
or loss of public money or stores, non-utilization of stores/plant &
machinery, major deviations from original time and cost targets and
other procedural irregularities, etc. noticed in audit should be forwarded
to the DAD HQrs half yearly covering the period up to 31st March and
30th September every year.
The cases received from the PCsDA/CsDA will then be

consolidated in the form of CGDA’s Internal Audit Report, after
obtaining approval of the Competent Authority. The report is circulated
to Defence Secretary, Chief of Defence Staff (CDS), Secretary (Defence
Finance)/Financial Adviser (Defence Services), higher echelons of
Ministry of Defence, PSO’s in Integrated HQrs of MoD
(Army/Navy/Air Force) for their information and taking necessary
corrective/regularization action and further taking necessary action in
order to avoid recurrence of irregularities in future.
The PCsDA/CsDA will continue to pursue the items included in

the report at their level with the executive authorities till finality.
The authority to accept an individual case for inclusion in the

CGDA’s Internal Audit Report, acceptance of consolidated cases for
inclusion in the CGDA’s Internal Audit Report and settlement of
outstanding/old case featuring in the previous CGDA’s Internal Audit
Report is provided in following table:
838
Sl. Particulars Competent
No. Authority
1 Acceptance of individual case proposed by the PCDA/CDA Addl. CGDA
as CGDA’s Internal Audit Report item
2 Acceptance of consolidated IAR cases (proposed by the CGDA
PCDA/CDA) for inclusion in the CGDA’s Internal Audit
Report
3 Settlement of outstanding/old case(s) featuring in the Addl. CGDA
CGDA’s Internal Audit Report, duly recommended by the
PCDA/CDA after corrective action/ regularization action, as
proposed, has been taken by the Executive Authority(ies)
Preparation of Internal Audit Report:
(1) Internal Audit Report is required to be prepared issue-

wise/theme-wise i.e., the cases proposed by the PCsDA/CsDA are
to be classified under three broad headings/ themes, viz:
(i) Pay, Pension & Personal entitlements;
(ii) Stores/Procurement; and
(iii) Works with financial value/implication of each case of at

least Rs. 7 lakh.
(2) The CGDA’s Internal Audit Report in turn be

consolidated/prepared for Services (Army, Navy, Air Force), R&D,
CSD, , Border Roads, Pension, etc.;
(3) The narration/write-up of the draft IAR case(s) submitted to the

DAD HQrs., should be self-explanatory, lucid, bringing out the
irregularity in clear/precise terms supported by the relevant
rules/authority/orders which have been violated/ overlooked.
The reference(s) made to the Executive Authorities and the reply
received along with comments, should invariably be provided
with the narration.
839
(4) The narration/write-up of the draft IAR cases ought to be
prepared under the headings/titles such as:
(i) Subject title of the case;
(ii) Highlight of the case;
(iii) Name of the unit/formation;
(iv) Financial value/implication;
(v) Audit facts;
(vi) Audit observation/description of the irregularity in length

(including reference to relevant/precise rule/authority/
orders which have been overlooked/violated and precise
point at which failure/irregularity is revealed) ;
(vii) Follow-up action;
(viii) Audit conclusion;
(ix) Audit risk rating;
(x) Action proposed.
(Annexure “9.50.A4” to this chapter may please be referred)
(5) The covering/forwarding letter of the Internal Audit Report

should contain information, viz.,
(i) Subject title of the case;
(ii) Highlight of the case;
(iii) Category of the case;
(iv) Name of the unit/formation;
(v) Financial value/implication;
840
(vi) Time of detection of the irregularity viz., during Local
Audit/Performance Audit/ Special Audit/ Super
Review;
(vii) Violation of specific rule/order/authority; and
(viii) Audit risk rating in a table.
(Annexure “9.50.A10” to this chapter refers).
The outstanding objections remaining unsettled will be forwarded

to the DAD HQrs under Internal Audit Report within next 6 months
after review.
841
9.51. ANNUAL AUDIT CERTIFICATE
PCDA/CDA will submit annually to the CGDA so as to reach

him/ her by 1st August each year, the certificate, that to the best of their
knowledge and belief, no part of the expenditure contained in the
Appropriation Accounts for the year has been incurred without the
sanction of the Competent Financial Authority, where such is required
by regulations or other orders, with the exception of items where
necessary sanction is awaited. Particulars of such items exceeding Rs.
5,00,000 in each case are furnished in the statement attached to the
certificate in the proforma at Appendix – 1 to Annexure ‘9.51.A5’ to this
Chapter. They may make in the certificate any reservations /
qualifications considered necessary as a result of test checks exercised by
them. The consolidated Audit Certificate published in the Appropriation
Accounts of the Defence Services will be taken as guide by the
PCsDA/CsDA. List of statements to be compiled is provided at
Annexure ‘9.51.A6’ to this chapter. Details in support of qualifications /
reservations made by the PCsDA/CsDA in the certificate will be
furnished by them in the relevant proformas as prescribed in Appendix
1 to 18 of Annexure ‘9.51.A5’ to this chapter. Although the proformas
have been prescribed for rendition of details in respect of certain
common types of qualifications / reservations, the PCsDA/CsDA are
only to make use of such of those Proforma as are necessitated by the
result of their test checks. In case it becomes necessary to make any
qualifications / reservations other than those for which Proforma in
Appendix 1 to 18 of Annexure ‘9.51.A5’ have been prescribed, the
PCsDA/CsDA will invariably furnish details in support of such
qualifications / reservations.
. The PCDA/CDA’s certificate for a year should embrace all the

expenditure contained in the accounts of that year and should also
depict as a whole the correct results of internal audit conducted by the
Defence Accounts Department vis-à-vis the entire field of Defence
expenditure. Cases in which ex-post-facto sanction of the Government of
India has been refused for any item or items of expenditure already
842
incurred and any special features or major changes introduced during
the period covered by the certificate, will also be included in the body of
the certificate. The certificate, which should be signed by the
PCDA/CDA/ Addl.CDA/ Jt.CDA, if holding independent charge and
only in his absence by the next senior officer ‘‘for the PCDA/CDA/
Addl.CDA/ Jt.CDA.’’ subject to post approval by the PCDA/CDA/
Addl.CDA/ Jt.CDA, should be self-contained, comprehensive and
precisely worded. In cases of reservations or qualifications made in the
certificate, a few specific and glaring instances in support of each such
reservation or qualification should be furnished separately as an
Appendix. The relative position (i.e., extent of improvement or
deterioration noticed) as compared to the immediately preceding years
in regard to certain important features of accounting such as state of
accounts, positions of stock verification outstanding on account of
payment issues, etc., should also be brought out in the certificate
properly, duly supported by necessary details which should be
furnished separately.
In respect of items of unauthorized expenditure or irregular issue

of stores, etc., if any, for which Government sanction is awaited and the
audit certificate in respect thereof cannot consequently be given, a
statement should be appended to the certificate giving full particulars of
all such items, the head of accounts in which they are included, the
precise circumstances in which the expenditure was incurred or the
stores were issued prior to the receipt of Government sanction, etc.
Information regarding the relevant authority under which, or the
reasons for which, Government sanction is necessary and the action
taken to regularize the expenditure in each case will also be invariably
included in the statement. Only those transactions whose monetary
value exceeds Rs 50,000/- and which normally require the sanction of
the Government of India prior to their occurrence, e.g., items involving
extra / irregular expenditure, transactions like unauthorized provision
of free conveyance, extra issue of rations, stores, etc., need to be included
in the above-mentioned statement. Cases of actual losses of stores,
building, etc. for which sanction of Government, where required, has to
843
be inevitably accorded ex-post-facto will not be included therein, as
these will find a place in the statements of losses of stores or cash, as the
case may be. Similarly, cases where ex-post-facto sanction has been
refused by the Government of India will not be included in the
statement, as they are to be included in the body of the Audit Certificate.
Cases of serious irregularities detected in internal audit will be

listed in a separate Annexure to the AAC furnishing brief particulars of
the nature of irregularity when it was detected and the action taken
subsequently.
The following points should be carefully observed in the

preparation of the statements referred to above:
(i) The narration of each item should be self-contained and

complete giving full particulars of the expenditure and
clearly indicating the circumstances, so far known to the
PCDA/CDA at the time of rendition of the certificate, in
which the payment was made or the expenditure incurred in
the absence of the necessary Government orders.
(ii) In cases where full particulars are not available at the time of
rendition of the Audit Certificate, it should be indicated in
the remarks column against the item that they are being
obtained or will be furnished later when the case is routed
through them for furnishing an audit report while applying
for the requisite Government sanction for the expenditure.
(iii) In cases, however, where there has been delay on the part of
the executives in answering the objection or in furnishing the
reasons for incurring the expenditure in the absence of or
prior to the receipt of the Government sanction therefor, the
item should be so annotated in the statement and such items
should also invariably be exhibited in the quarterly audit
report (erstwhile MFAI). In case the item had already found
a place in the quarterly audit report (erstwhile MFAI), a
reference to the item number in the QAR should be cited.
844
(iv) The following basis will be adopted for reporting
outstanding on account of Payment Issue of Stores supplied
/ services rendered (including hire charges of Tools and
Plants) and rent and allied charges, etc., :–
(a) Payment issue of stores supplied / services rendered

(including hire charges of Tools and Plants). Issues
made up to the 31st March outstanding as on the 30th
June.
(b) Rent and allied charges-Rent bills issued up to the end

of February outstanding on 30th June.
(c) Outstanding audit objection - Objections issued up to

the 31st March remaining outstanding on the 30th June.
Note 1: Statement showing outstanding on account of payment issue of stores

supplied / services rendered (including hire charges of Tools and Plants) and
rent and allied charges should give an analysis of the outstanding party-wise
and year-wise and also indicate briefly the reasons for the outstanding under
each category as well as the steps taken to liquidate the same. The break-up of
the details of rent and allied charges (outstanding will be rendered service-wise
i.e., separately for Army, Air Force and Navy).
Note 2: The number of cases where the amount of outstanding on account of

payment issues and rent, etc., exceeds Rs 50,000/- in each individual case and
has remained outstanding for more than a year should be mentioned. The details
thereof will be furnished in Proforma as prescribed in Appendix 10 & 11 of
Annexure ‘9.51.A5’ respectively to this chapter.
Note 3: A copy of the statement on account of rent and allied charges together
with corresponding statement alluded to in Note 2 above will also be endorsed
to GS Branch, E-in-C Branch and DFA (W)/Equivalent Authorities.
(v) In cases of non-linking of issue vouchers/CRVs/vouchers

not produced for audit, etc. the total number will be
indicated in the body of the certificate. Particulars of more
important cases involved will be given in the statement
845
attached in the AAC, indicating inter-alia, the reasons for
non-linking of CRVs with the issue vouchers, non-
production of vouchers, etc.
(vi) In cases of non-maintenance/ improper maintenance/ non-

production of accounts, the statement enclosed to the AAC
should contain full details of the irregularity, such as the
name of the Unit, the particular account and the period
involved, the precise nature of irregularity (in the case of
improper maintenance of accounts) and information whether
the irregularity has since been set right at the time of
submission of the certificate.
(vii) The number of important cases of expenditure under

objection exceeding Rs. 5,00,000 in each case where the
sanction of the Government of India is required and which
were enumerated in the previous years’ Appropriation
Accounts but are still awaiting regularization will also be
mentioned in the details furnished in the proforma
prescribed in Appendix – 17 of Annexure ‘9.51.A5’ to this
chapter.
(viii) Cases of losses awaiting regularization for more than one

year and where the amount involved is substantial enough
to require sanction of the Government of India will be
exhibited in the proforma prescribed in Appendix – 12 of
Annexure ‘9.51.A5’ to this chapter.
Where it has not been possible to include any items of

unauthorized expenditure actually incurred in or relating to the year in
that year’s certificate already rendered to the DAD HQrs., owing to
delay in their detection due to other causes, the items affected will be
dealt with as follows:
(a) If the unauthorized expenditure even in subsequent year/

years for which an Audit Certificate has yet not been
rendered, the entire period to which the expenditure relates
846
and the total amount involved (including that for the
previous year/ years) will be shown in the statement
appended to the certificate to be rendered for that year.
(b) In cases where entire expenditure relates only to the

previous years, the period and the amount involved, etc.,
will be shown separately in the certificate of the year in
which the unauthorized expenditure was first actually
brought to light, in the form of annexure to the regular
statement of the year.
Items of expenditure awaiting regularization under orders of and/

or which may be regularized by the Competent Financial Authorities
lower than the Government of India are not required to be exhibited in
the statements appended to the certificate.
In respect of stock verification carried out by the Administrative

Authorities, a self-contained explanatory note giving the general
position and result of stock-verification during the year should be
appended to the Audit Certificate for that year.
This note should inter-alia, contain information regarding the

number of units / formations in which stock verification was either not
conducted at all or was incomplete; whether or not it was subsequently
conducted or completed; whether the result of stocktaking revealed a
satisfactory state of affairs; the particulars of units in which the position
was unsatisfactory and whether the discrepancies between ground and
book balances were considerable and if so, their extent and their value;
and such other information as will enable a complete appreciation of the
stocktaking carried out during the year as a whole.
Note: Cases of non-verification / partial verification of stock where the delay

involved in the completion of stock verification for the financial year, etc. is only
of a few days, need not be included. Only clear cases of non-verification of stock
need to be reported. In cases of partial stock verification the number of items not
verified and the proportion they bear to the total number of items required to be
verified should also be indicated.
847
In order to enable the DAD HQrs. to render an Audit Certificate in
respect of the ‘‘Special Grants-in-Aid’’ made to the Cantonment Boards,
the account of which are not susceptible to Test Audit by the DGADS,
the PCsDA/CsDA concerned should include in their certificate a
separate Para, on the following lines:–
‘‘I also certify that the expenditure met from special Grants-in-
Aid granted to Cantonment Board from the Defence Services
Estimates has been audited under my directions and that the
conditions on which the grants have been made have been or being
fulfilled/have not been or are not being fulfilled in the following
respects.’’
(To be mentioned in the certificate)
In respect of items of expenditure, which are not audited by the

Defence Accounts Department e.g., expenditure on QMG's installations
(like flour mills); expenditure incurred by the High Commissioner for
India (in U.K.); a suitable note should be inserted at the foot of the Audit
Certificate to the effect that the certificate does not cover such items.
The certificate should also be qualified suitably to indicate that

losses of stores (as distinct from cash losses which are to be regularized
under the normal rules in FR Part I) due to enemy action and destruction
by our own forces owing to operational necessity, as also losses of stores
due to abortive air drops and those occurring in units and formations on
War System of Accounting, etc. in respect of which no formal
regularization is necessary under existing rules have not been included
therein.
After dispatch of the certificate to the DAD HQrs, a copy of the

certificate and its Appendix will be shown by the PCsDA/CsDA to the
Deputy Director of Audit / Assistant Director of Audit, Defence
Services, or equivalent authority concerned, to enable the Test Audit
Authorities to ensure that all cases of expenditure (1) held under
objection for want of Government sanction, and (2) for which ex-post-
848
facto sanction of the Government of India has been refused, have in fact
been include in the CGDA’s certificate.
In addition, an annual report on the lines of the quarterly audit

report (erstwhile MFAI) containing the unsatisfactory features which are
included in the “Annual Audit Certificate” should simultaneously be
forwarded to the Command Headquarters to whom the quarterly audit
reports are rendered. The report while being on general lines should cite
specific and typical cases of each irregularity and mention the units, the
period of accounts during which they occurred, etc.
The Annual Audit Certificate and the various statements, etc.,

will be prepared by the Principal Controllers/Controllers, after
examining all objection statements (including those issued by the Local
Audit Officer), and other documents containing a record of the charges
compiled in the accounts of the year to which the certificate pertains,
which have been placed under objection for want of fresh sanction or
revised as the case may be, of the Government of India. To facilitate the
preparation of the Annual Audit Certificate, a register will be
maintained in each Audit Group of the office of the PCDA/CDA and by
each Local Audit Officer, showing items of the nature referred to above
placed under objection and the subsequent progress of the objections
with notes or the final orders issued.
Note: The register mentioned above will be maintained in the proforma given in
Appendix – 1 of Annexure ‘9.51.A5’ to this chapter.
The Principal Controllers/Controllers will keep a close watch over

the progress made in respect of each of the various reservations made in
the Annual Audit Certificate and its various Annexures. A systematic
record of the progress made in respect of the outstanding items will be
maintained.
The PCsDA/CsDA will submit to the DAD HQrs. periodically,

progress reports duly supported by the detailed statements in respect of
all items included in AAC as indicated below:
849
Name of Report Date on which due to reach DAD HQrs
(a) Position of cases included in the 7th November

AAC as on 30th September
(b) Position in respect of the same as 20th January
on 31st December
(c) Further progress in respect of the 15th May of the following year.
same as on 31st March of the
succeeding year
Items of expenditure reported through Annual Audit Certificate

which require the sanction of the Government of India, will be reviewed
by the PCsDA/CsDA on receipt of necessary sanction and their
settlement or otherwise communicated to the DAD HQrs. separately in
each case as early as possible.
850
9.52. AUDIT OF LOSS STATEMENTS
The Group is responsible for audit and scrutiny of loss statement

of stores as well as cash of units and formations including MES. The
PCsDA/CsDA will scrutinize the loss statements in a two-fold capacity
as Audit Officer confining their scrutiny with reference to rules and
orders and as Financial Advisors examining the merits of the case from a
higher audit point of view. To minimize the time lag, these two
functions will be discharged in a single process and for this purpose, loss
statement will be scrutinized before sanction in cases where the CFA is
required to consult the PCDA/CDA under FR Part-I and delegation of
financial powers to Defence Services as amended from time to time.
(ii) All loss statements falling beyond the financial powers of authorities
mentioned in Note 1 below will be pre-scrutinized by the Main Office of
the PCDA/CDA.
Note 1: (a) The LAOs/RAOs would pre-scrutinize the loss statements and
render Final Audit Reports to the Competent Financial Authorities (including
Departmental Authorities at the Command HQrs and below) in respect of all
losses up to the financial powers of the Brigade/ Sub-Area Commander specified
for units/ formations concerned to which the loss pertains.
(b) In case where powers are not exercised by the Brigade/ Sub-Area
Commander for a particular unit/formation in respect of a particular type of loss
(viz, due to or not due to theft, fraud or neglect), the LAOs/RAOs would
similarly deal with all loss statements up to the financial powers of the
Departmental Authorities at Command level including Director, NCC (States)
and below.
(c) Pre-scrutiny of loss statements for amount not exceeding Rs 500/- whether
due to or not due to theft, fraud or neglect is, however, not necessary.
Note 2: Loss Statements requiring the sanction of the Government of India or
authorities at Integrated HQrs of MoD (Army/Navy/Air Force) will be received
by the PCDA/CDA through the LAO concerned.
Note 3: Loss Statements of MES stores including building and furniture will
be received through the GE concerned duly priced by his SAO/AO/AAO (GE).
851
Note 4: All Loss Statements emanating from units/formations on the War
System of Accounting (WSA) irrespective of their value/ CFA will be received
directly by the PCDA/CDA concerned for scrutiny and rendition of Final
Audit Report as such units/formations are not subject to Local Audit by the
LAO/RAO.
(iii) The loss statements will be scrutinized to ensure that;
(a) They have been correctly prepared and priced;
(b) No breach of accounting rule has contributed to loss;
(c) The loss has been properly investigated according to rules;
(d) The loss is a real one and not fictitious;
(e) The remedial and / or disciplinary action suggested by the
Administrative Authorities is adequate and satisfactory;
(f) The PCDA/CDA agrees to the write off of the amount
involved by the Competent Financial Authority indicated;
852
9.53. EXHIBITION OF LOSSES IN THE APPROPRIATION
ACCOUNTS LOSSES OF CASH, OVERPAYMENTS, etc.
Losses of cash, overpayments, etc. written off by the Government

of India and other Competent Financial Authorities, and claims
abandoned as irrecoverable and finally dealt with during the year are
shown, under the following two main categories, in Appendix ‘A’ to the
Appropriation Accounts of the Defence Services :–
(1) Cash losses, overpayments, irrecoverable claims, etc., due to theft,

fraud or neglect;
(a) Details of losses, etc. exceeding Rs. 25,000/- in each case.
(b) Aggregate of all losses, etc. Rs. 50/- but not exceeding Rs.
25,000/- in each case.
(2) Cash losses, overpayments irrecoverable claims, etc. due to other

causes:–
(a) Details of losses, etc. exceeding Rs. 50,000/- in each case.
(b) Aggregate of all losses, etc. exceeding Rs. 50/- but not
exceeding Rs. 50,000/- in each case.
Note: In regard to cases of irregularity whose monetary value cannot be

assessed, should be included in the Appropriation Accounts only when they are
considered important enough to merit the notice of the Public Account
Committee.
(3) Details of the following types of losses written off are reflected in the
Appendix ‘B’ of the Appropriation Accounts:
(a) All store losses due to theft, fraud and gross neglect
exceeding Rs. 75,000/-.
(b) All store losses due to other causes exceeding Rs. 2 Lakhs.
853
The narration of each case of loss, etc., to be included in categories
1(a) and 2(a) above should be brief, self-contained and provide
information as to the exact period to which the loss pertains; amount
involved; name of unit or formation; the Competent Financial Authority
by whom that loss was written off and the date of writing off; action, if
any, taken towards its investigation; the exact circumstances of the loss;
the recommendations of the court of inquiry, if any, held; particulars of
disciplinary action taken; and, the remedial measures instituted. The
number and date of the letter in which the loss was written off should be
mentioned against each item.
In respect of all losses of cash, etc. written off by Government of

India or lower authorities, statistics will be maintained by LAOs / RAOs
and various Wings in the office of the PCDA/CDA, which will be
examined by the LAOs / RAOs / Officers-in-Charge of Sections in Main
Office monthly. From this register LAOs / RAOs / Wings in the office of
the PCDA/CDA will prepare quarterly details of important losses in the
Proforma at Annexure ‘9.53.A6’ to this Chapter and submit the same to
the Internal Audit Group of the office of the PCDA/CDA for
consideration and submission to the DAD HQrs. through the local
representative of the DADS. The LAOs / RAOs / Wings in the office of
the PCDA/CDA will also prepare annually a consolidated statement of
total amount of cash losses finally dealt with during the year in the
Proforma at Annexure ‘9.53.A8’ to this Chapter and submit it to the
Internal Audit Group for consideration and submission to the DAD
HQrs. through local representative of the DGADS.
The quarterly statements for the first quarter should be submitted

so as to reach the DAD HQrs not later than the 15th of August and will
include the losses written off during the first quarter, etc. from April to
June. The statements for the subsequent quarters should reach the DAD
HQrs by 15th November, 15th February and 31st May. The consolidated
annual statement of cash losses finally dealt with during the year should
be rendered so as to reach the DAD HQrs by 31st May each year.
854
Note 1: For purposes of the above statements each sanction by a Competent
Financial Authority should be viewed as an individual transaction irrespective
of the number of transaction and the period covered by it and should be
annotated at one place only in the statement of important losses.
Note 2: The annotation of important losses, viz., those mentioned at 1(a) and
2(a) above, should conform, as far as possible, to the form in which it is printed
in the Appropriation Accounts and a self-contained and complete history of each
case should be furnished separately along with the statement of losses.
Note 3: Objections waived and irrecoverable amounts, etc., written off by

officers of the Defence Accounts Department and the Audit Department,
Defence Services, under Rule 177, Financial Regulations (Part I) and Part – II
need not be exhibited in the statement; Figures of ‘‘unidentified advances’’ and
debtor balances written off by the PCDA (Officers) and the concerned Regional
PCsDA/CsDA and their subordinate officers will, however, be shown in the
statement of cash losses under the appropriate headings.
Note 4: (i) Losses due to enemy action and destruction by our own forces due to
operational necessity as also losses due to abortive air drops and those occurring
in Units and Formations on the War System of Accounting which do not
require formal regularization under the existing rules will not be reflected in the
statement.
(ii) Cash Losses due to enemy action which are required to be regularized under
normal rules in FR Part I, when regularized, will be included in the statement.
Such cash losses awaiting regularization by the Government of India will also
be exhibited in the Proforma 4 prescribed in Appendix – 12 of Annexure
‘9.51.A5’ to this chapter.
Note 5: Cases involving provision of the Government or hired transport to non-

entitled personnel regulated under the orders of the Competent Financial
Authority should be treated as cash losses and shown in the statement of cash
losses under the proper heading.
Note 6: Losses written off in respect of stores short landed at ports by shipping
agents, the claims against whom are repudiated by or are not realizable from
855
them in part or in full, should be classified as losses of cash and exhibited in the
statement under the appropriate heading.
Note 7: Details of losses, etc. to which no precise monetary value can be

assigned should also be included at the bottom of the statement.
Note 8:The general criterion for determining whether items of unauthorized

expenditure which have subsequently been regularized by sanction of the
Competent Authority should be included in the statement or not will be as
follows :–
If the sanction, besides regularizing past expenditure originally incurred

without adequate or proper sanction, has the effect of making the item of
expenditure an authorized charge subsequent to the date of sanction the item
should not be included in the statement as in such cases Government recognizes
the need for the expenditure but failed to provide for it earlier. Cases of ex-post-
facto sanctions to expenditure involving no actual losses to the Government are
also not to be included in the statement.
Note 9: Losses pertaining to issue of stores in which cash recoveries are

required to be made, etc. irrecoverable payment issues or free issues where issues
are authorized on payment only, are to be classified as cash losses.
Note 10: Losses pertaining to Cantonment Funds will not be included in the
statement as these are not required to be incorporated in the Appropriation
Accounts.
Note 11: Payment of pending inquiry awards under proper authority is not an
irregular payment even though the claim for pensions may ultimately be
rejected. Accordingly, such payments are not required to be written off and
included in the statement.
Note 12: Losses arising in connection with purchases effected through the
Purchasing Organizations in India and abroad, where the fault lies entirely
with them are not required to be included in the statement, as these losses will
856
be included in the report of the Comptroller and Auditor General of India,
Union Government (Civil)/Appropriation Accounts (Civil).
857
9.54. INFRUCTUOUS EXPENDITURE
The PCsDA/CsDA will submit half yearly to the DAD HQrs

through the local representative of the DGADS, a statement of
Infructuous expenditure (other than MES) in two parts, viz., (a)
individual item of Infructuous expenditure Rs. 1 lakh in each case with
complete details; and (b) Aggregate value of all items of Infructuous
expenditure exceeding Rs. 10,000/- but not exceeding Rs. 1 lakh in each
case showing inter-alia the number of cases involved for exhibition in
lump sum. The reports for the half year ending September and March
will be submitted so as to reach DAD HQrs not later than the 7th
November and 31st May each year respectively. As far as possible all
items dealt with finally during the half year will be included in the
statement for that half year, but any items which could not be included
therein should be incorporated in the statement for the next half year
with suitable remarks (showing inter-alia the number of cases involved).
In addition, an annual statement showing the aggregate value of all
items of Infructuous expenditure exceeding Rs. 10,000/- but not
exceeding Rs.1 lakh in each case showing inter-alia the number of cases
involved will be rendered to the DAD HQrs. through the local
representative of the DGADS so as to reach the former by 31st May of the
year following that to which the statement relates. From these
statements the DAD HQrs will prepare and forward a consolidated
statement to DGADS on the 15th August each year for eventual
transmission, after test check, to the Secretary (Defence
Finance)/Financial Adviser (Defence Services) for inclusion in the
Appropriation Accounts as Appendix ‘C’ to Section V. This statement
will accompany the statement of Cash Losses.
A statement of Infructuous expenditure (MES) will also be

submitted by the PCsDA/CsDA to the DFA (W)/Equivalent Officer on
similar lines through the local representative of the Director of Audit
Defence Services. Each wing of the office of the PCDA/CDA will
maintain a register to facilitate the submission of this statement.
858
9.55. LOSSES OF STORES, OVER ISSUE OF STORES, etc.
Losses of stores, over issues of stores, etc., written off during the
year by the Government of India and other Competent Financial
Authorities are shown in Appendix ‘B’ to the Appropriation Accounts of
the Service vide proforma at Annexure ‘9.55.A7’ to this chapter. Stores
losses below Rs. 500/- in consuming units will not be included in this
statement.
Details of important losses, etc., will, however, be furnished in

respect of the following losses in an Annexure to this statement, on the
lines provided for cash losses:–
(1) Losses exceeding Rs.75,000/- in each case due to theft, fraud

or neglect.
(2) Losses exceeding Rs. 2,00,000/- in each case due to other

causes.
Note: In regard to cases of irregularity, whose monetary value cannot be

assessed, should be included in the Appropriation Accounts only when they are
considered important enough to merit the notice of the Public Account
Committee.
Statistics in respect of losses of stores will be maintained by the

Local Audit Officers in a register in I.A.F. (C.D.A.)-341 and by the
SAO/AO/AAO M.E.S. formations in a register as provided for the
purpose. The detailed procedure for the maintenance of such statistics
and submission of statements of losses by the Local Audit Officers is laid
down in the Army Local Audit Manual. Similar instructions for the
SAO/AO/AAO(GE) M.E.S. formations are laid down in the M.E.S.
Accountants' Manual. From the statement furnished by the L.A.O.'s and
the SAO/AO/AAO (GE) M.E.S. formations, the PCsDA/CsDA will
prepare statement in the Proforma at Annexure ‘9.53.A6’ and ‘9.55.A7’ to
this chapter and submit the same to the DAD HQrs through the local
representative of the DGADS so as to reach the former by the 31st May of
the year following that to which the statement relates.
859
128. The PCsDA/CsDA will also prepare a quarterly statement of
important losses in the proforma at Annexure ‘9.53.A8’ to this Chapter
for the Quarter ending June, September, December and March. The
statements for the first quarter should be submitted so as to reach the
DAD HQrs not later than 15th August and will include all losses written
off during the first quarter, i.e., from April to June. The statements for
the subsequent quarters should reach the DAD HQrs by the 15th
November, 15th February and 31st May respectively. As far as possible all
important losses written off during the quarter should be included in the
statement for that quarter, but any important items which could not be
included due to late receipt of sanctions, etc. should be incorporated
separately in the statement for the next quarter with suitable remarks.
Note 1: In respect of losses of buildings and furniture on charge of Air Force

units and Indian Navy, the PCDA (AF) and the PCDA (Navy) will be
responsible for inclusion of the items in their statements. The Regional
PCDA/CDA in whose area such losses occur should not, therefore, include these
cases in their statements.
Note 2: All irregular issues or over issues of stores should be treated as store
losses. However, loss of stores resulting from over-drawal of ration items
which remain unadjusted as per para 888(b) of Defence Services
Regulations for the Army (revised edition 1962), will be categorized as
cash losses.
Note 3: Each item figuring in the statement of important losses should contain
a reference to the particular heading and category in which it has been included
in the main statement (viz., Head I, Food, Head H (a), P.O.L., etc.)
860
9.56. REFERENCE FROM LAOs / RAOs
The group will be responsible for giving decisions on doubtful

points raised by the LAO's / RAO's on matters affecting audit or
procedure.
861
9.57. VERIFICATION OF SPECIMEN SIGNATURES
The ACDA/SAO/AO-in-Charge of the Internal Audit Group will

carry out the verification of specimen signature for the bills (at least 100)
selected by the PCDA/CDA (and in their absence, the Addl. CDA/Joint
CDA) and render a report on the correctness of the same to the
PCDA/CDA. The concerned Head of Office will satisfy himself
regarding the correctness of the specimen signature and the procedure
in place for the verification. A record in respect of the above will also be
required to be kept by the Head of Office.
In respect of sub-offices under Main Offices, viz., Area Accounts

Offices which do not have Internal Audit group, the senior- most LAO,
co-located with the sub-offices, shall carry out the check on specimen
signatures in respect of bills received in the concerned sub-office. The
LAO concerned will render a report on the same to the Internal Audit
Group for the information of the PCDA/CDA.
862
9.58. TOUR NOTES AND REVIEWING OFFICER'S REPORTS
Tour notes of the PCDA/CDA/ Addl.CDA/ Jt.CDA will be dealt

with in the Internal Audit Group in so far as they raise points of
financial interest or local audit procedure.
Similarly, the reports of the IDAS officers sent out for ‘‘Super-
Review’’ should be progressed in this group.
863
CANTONMENT BOARDS
9.59. General
As per Rule 194 of Cantonment Board Account Rules, 2020

(erstwhile Cantonment Account Code, 1924), Annual Financial
Statements prepared by the Board shall provide information about the
financial position, performance and cash flows of the Board and shall of
comprise the following, namely: -
(a) Balance Sheet;
(b) Income and Expenditure Statement;
(c) Receipts and Payments Account;
(d) Schedules to the Financial Statements;
(e) Notes to Account; and
(f) Statements of Significant Accounting Policies.
The financial statements mentioned above shall be forwarded by

the Board in duplicate to the PCDA/CDA/LAO for audit and
furnishing a certificate of correctness.
864
9.60. Audit of Financial Statements
The financial statements of the Board prepared under Cantonment

Board Account Rules, 2020 (including those relating to the Provident
Fund and the Pension Fund Accounts of the Board) shall be audited by
the LAO and the cost of such audit (fee) shall be paid by the Board at the
rates specified by the Central Government from time to time and shall
be assessed on the sanctioned strength of the Audit Party and the
number of days sanctioned for the completion of audit.
The audit enquiries issued by the LAO in the course of audit shall
be returned to him promptly and in any case before the close of audit,
over the signature of the Chief Executive Officer, with explanations or
notes showing the action taken or proposed to be taken to settle the
observations or objections raised and the LAO shall return for further
action any of his observations or objections on which final or sufficient
action has not, in his opinion, been taken; and shall before concluding
the audit bring them to the notice of the President of the Cantonment
Board.
If the objections or observations are not settled even after the

explanations or clarifications offered by the Chief Executive Officer with
regard to any material issue, the LAO shall prepare and submit an audit
note to the PCDA/CDA, who shall forward a copy of the audit note
along with his remarks to the President of the Cantonment Board, and
the General Officer Commanding-in-Chief, Command for necessary
action.
865
9.61. Audit Report on Financial Statements
The LAO shall, within a period of three months from the end of
the financial year, complete the audit, and prepare an Audit Report and
the report shall mention or include the following, namely: -
(a) Whether, in his opinion, proper books of account as required by

the Act and Rules have been kept by the Board so far as it appears
from his examination of those books;
(b) Whether the Board's Balance Sheet, Income and Expenditure

Statement and Receipts and Payment Account dealt with by the
report are in agreement with the books of account;
(c) Whether the financial statements give a true and fair view of the
state of affairs of the Board including the surplus or deficit (in
income & expenditure statement) as on the last day of the financial
year;
Where any of the matters referred to in clause (a) or (b) or (c)

above is answered adversely or with qualification, the LAO's report
shall state the reason for the same and give the financial impact of such
qualification.
Where an audit note has not been settled as on the date of Audit
Report in regard to any of the observations or objections contained in
such note, the said note or a summary thereof, as may be considered
appropriate by the LAO, shall also be given as an annexure to the Audit
Report.
The Audit Report along with the annexures thereto and the
financial statements dealt with in the Audit Report shall be submitted to
the President of the Cantonment Board by the Chief Executive Officer
along with a copy each to the PCDA/CDA and to the Principal Director.
866
9.62. LOSSES, IRRECOVERABLE ITEMS OF REVENUE &
REMISSION OF RENT FOR LAND, etc.
Whenever any material loss of money, stores or other property of

the Board, through embezzlement, fraud, theft, or other cause is
discovered, an investigation shall forthwith be made into the loss by the
Board or by some person appointed, by order, in this behalf by Board
and if such loss incurred exceeds Rs. 50,000/-, the report of such
investigation, shall be furnished with the Principal Director and a copy
of the said report shall also be forwarded to the General Officer
Commanding-in-Chief, Command, who shall, if necessary, arrange with
the PCDA/CDA, for an expert examination of accounts in connection
with the loss;
Money, the value of stores or other property thus lost,

irrecoverable money due in respect of land rent (including house rent),
sales of wood, fruits, grass, miscellaneous contracts and license fee shall
not be written off in the accounts, except with the previous sanction of
the Competent Financial Authority to whom powers of write off of
losses have been delegated vide Rule 203 to 205 of the Cantonment
Board Account Rules, 2020 after obtaining Final Audit Report from the
PCDA/CDA in each case.
867
Subject: Draft Audit Para for the year _____________.
1. (Name of the Unit).
2. (a) Period to which the irregularities referred to in the Draft Para

pertain.
(b) Whether the facts stated in the Draft Para are fully correct, if
not, state in what respect it requires modification.
3. (a) Under which of the following Heads does the point raised in
the Draft Para fall:–
(i) Interpretation of rules, or
(ii) Audit methods and procedure, or
(iii) Higher audit
(b) Indicate the point at issue in brief
Note: If more than one heading is involved, separate proforma dealing

with each of the headings should be prepared.
4. If the subject matter of the draft para was dealt with in separate
correspondence with the DAD HQrs earlier, cite reference to the
previous correspondence.
5. Whether the irregularities were detected in internal audit/test

audit.
6. If detected in internal audit, state: –
(a) Whether internal audit stepped in at the appropriate time,

giving the date on which, the objections were raised.
868
(b) Whether the irregularity was reported through the monthly
report on the general state of accounts; if so, give the month in
which it was included, if not, safe reasons thereof.
(c) Whether it was reported to the administrative authorities and if

so, with what result.
(d) After detection in internal audit, whether the same was

pursued vigorously with a view to finalizing the case. The present
position, in case not finalized, should be indicated.
7. If not detected in internal audit in time but at a later date, state in

addition to the particulars in item 6(b), (c) and (d) :–
(a) The month in which detected and the reason for the delay.
(b) If no valid reasons exist for the delay, whether the disciplinary
aspect of the case was considered and if so, with what result.
8. If not detected in internal audit at all but detected only by Test

Audit:–
(a) Reasons for non-detection in internal audit.
(b) If the non-detection was due to a defective rule or absence of

rule, why the same could not be pointed out in internal audit.
(c) Disciplinary action taken against the person(s) responsible for

the failure.
(d) Whether the irregularity existed during the previous audit of

the unit by Test Audit Staff and whether they also failed to detect
it on the previous occasion.
9. Whether the contents of the draft para were brought to the notice
of the administrative authorities and discussed, and if so with
what result.
10. Whether remedial measures were taken by the administrative

authorities or DAD to avoid recurrence of the irregularity.
869
11. Whether any disciplinary action was taken by the administrative
authorities against the persons responsible and, if so, whether the
PCDA/CDA is satisfied with the action taken, giving details of the
nature of disciplinary action taken.
12. Whether there was any tendency of dilatory attitude on the part of
the administrative authorities in the investigation of the case and
taking disciplinary action and if so, the action taken by the
PCDA/CDA in regard to the same.
13. Whether prompt action was taken for stopping the irregularities of
the nature pointed out and if not, the action taken by the
PCDA/CDA.
14. If the disciplinary action taken by the administrative authorities is

considered inadequate by Test Audit, state whether the same has
been reviewed by the PCDA/CDA in consultation with
administrative authorities, after the receipt of the draft para.
15. Any other information on points not covered by the above which
will be helpful for answering queries of the Public Accounts
Committee on the Para.
870
1
Sl. No.
2
Name of the Unit / Formation
3
Particulars of Irregularity
4
Financial Effect
5
Period of Accounts Affected
871
6
When was the irregularity noticed
in audit and to whom it was

reported
PROFORMA I (FRESH CASES)
7
Latest position of the case
indicating action taken so far by
the lower authorities
Part I Section-A Cash Irregularities (Fresh Cases)
8
QUARTERLY AUDIT REPORT (ERSTWHILE MFAI)
Remarks
Part I Section-B Store Irregularities (Fresh Cases)
When was the irregularity noticed in
Latest position of the case indicating

audit and to whom it was reported
action taken so far by the lower

Name of the Unit / Formation
Period of Accounts Affected

Particulars of Irregularity
Financial Effect
authorities
Remarks
Sl. No.
1 2 3 4 5 6 7 8
Note:(i) The Proforma will also be utilized in respect of cases which in the
personal opinion of Principal Controller/Controller, are to be reported to
Ministry of Defence / Integrated HQrs of MoD (Army/ Navy/ Air Force),
Ministry of Defence (Finance), etc.
(ii) The names of units, etc., should be arranged Area wise / Command wise.
872
Proforma II
QUARTERLY AUDIT REPORT (ERSTWHILE MFAI)
LIST OF CASES ALREADY REPORTED BUT STILL

OUTSTANDING
Part II Section-A (Cash Irregularities)
Sl. Name of Item No. & Brief list of Latest Remarks

the Unit / quarter of the position
No.
Formations Reporting irregularity
1 2 3 4 5 6
873
Part II Section-B (Cash Irregularities)
Sl. Name of Item No. Brief list of Latest Remarks

the Unit / & quarter the position
No.
Formations of irregularity
Reporting
1 2 3 4 5 6
Note: The names of the units, etc., should be arranged Area wise / Command
wise.
874
Confidential
No. __________
Office of the PCDA/CDA
Date: _______
To,
GOC-in-C (By Name)
Subject: QUARTERLY AUDIT REPORT (ERSTWHILE MFAI) -QE

______
Reference: This office Confidential Letter No. ___________ dated

_____________
The report on the above subject for the quarter ending is enclosed
for your information and necessary action.
Part I Section A: Cash Irregularities Fresh items.
Part I Section B: Store Irregularities Fresh items.
Part II Section A: Cash Irregularities Items already reported but

still outstanding.
Part II Section B: Store irregularities items already reported but

still outstanding.
Cases of other irregularities noticed in audit have been reported to

the concerned authorities as necessary.
PCDA/CDA
875
Copy for information to :–
(1) The DAD HQrs

Ulan Batar Road, Palam,
Delhi Cantt. -110 010.
(2) Sr. DDA (DS)
876
List of Annexures and their statements to be furnished by the

PCsDA/CsDA for the Annual Audit Certificate (AAC)
S. No./ No. of Name of the Brief Particulars
Appendix at Annexure/
which proforma Statement
provided
1. ANNEXURE-I Statement showing item of expenditure exceeding Rs. 5,00,000/-
in each case in respect of which sanction of CFA is awaited.
2. ANNEXURE-II Statement showing cases of incomplete maintenance and non-

maintenance/non-production of Store Accounts noticed during
the year requiring regularization/Condonation under Govt.
orders
3. Statement-1A Non-maintenance of Accounts.
4. Statement-1B Improper maintenance of Accounts.
5. Statement-1C Non-production of Accounts.
ANNEXURE-III Statement showing a few important cases of Financial and

(Old Cases of procedural Irregularities (Narrative)
earlier years)
ANNEXURE-III Statement showing a few important cases of Financial and
(Fresh items) procedural Irregularities (Narrative)
ANNEXURE-IV Statement showing a few important cases indicating defective
planning and implementation of projects, etc., involving
significant investment (Narrative)
6. ANNEXURE-V Statement showing cases where Stores/Cash, etc., were not

accounted for.
7. Statement-2 Showing the position of stock verification in Ordnance

Depots/Vehicles Depots.
8. Statement-3 Statement showing the number of certified receipt vouchers

which could not be linked with Consignor's Issue
Vouchers/Packing Accounts/Invoices or other relevant
documents.
9. Statement-4 Statement showing the number of vouchers in respect of which

credits are not traceable in Consignee's Ledger (value below
Rs.5000/-, Value of Rs.5000/- and above but less than Rs.15000/-
and where the monetary value is Rs. 15000/- or more in each
case to be shown separately).
10. Statement-5 Statement showing the position of outstanding on account of

stores supplied and services rendered.
(Details of outstanding for more than one year on account of
payment issues/service rendered individual items of over
877
S. No./ No. of Name of the Brief Particulars
Appendix at Annexure/
which proforma Statement
provided
Rs.50,000/- in respect of private individuals and institutions and
over Rs.1,00,000/- in each case in respect of other categories to be
shown on a separate statement)
11. Statement-6 Statement showing overall position of outstanding Rent & Allied
Charges (party-wise and year-wise) showing position of
outstanding Rent & Allied Charges.
(Details of outstanding for more than one year on account of

Rent & Allied Charges individual items of over Rs.50,000/- in
respect of private individuals and institutions and over Rs.
1,00,000/- in respect of other categories to be shown in a separate
statement)
12. Statement-7 Statement showing details of losses awaiting regularization by

Government of India and are outstanding for more than one year
(including those requiring sanction by Ministry of Defence under
delegated powers).
(Outstanding claims against Railways representing losses and
damages of Stores in transit as well as claims outstanding against
Shipping Corporation/ Carriers on account of short
landing/missing stores to be shown in a separate statement).
13. Statement-8 Statement showing number of outstanding audit objections

raised upto 31stMarch showing position as on 30th June.
(Separate statements for outstanding audit objections pertaining
to Internal Audit & Test Audit may be annexed as 8A & 8B
respectively)
14. Statement-9 Statement showing list of units whose account could not be
audited.
15. Statement-10 Statement showing number of vouchers not produced for audit
16. Statement-11 Cases of transfer of property exceeding Rs.100000/- in Book

value to Non-Government organizations.
17. Statement-12 Statement showing item of expenditure exceeding Rs.5,00,000/-

in each case which were included in Annexure-I to the CGDA’s
Certificate in the Appropriation Accounts (D.S.) of previous year
and which are still awaiting regularization.
18. Statement -16 Statement showing the number of vouchers in respect of which
credits are not traceable in consignee's ledger. (Foreign Invoice)
(Foreign invoices having Value of Rs.5000/- and above but less
than Rs.15000/- and those having monetary value is Rs. 15000/-
or more in each case to be shown in separate statements)
878
Appendix – 1 to Annexure ‘9.51.A5’
ANNEXURE-I to AAC
Statement showing items of expenditure exceeding Rs. 5,00,000/- in

each case awaiting the sanction of the Govt. of India
Sl. Brief Amount Head of Circumstances The exact The date The date The latest Remarks
particulars Account in which the date on on which on which position of
No.
of items expenditure which the the case the case the
was incurred objection was first was first case as
and/or was first referred to referred to known to
admitted raised Command Service the Pr.
without the HQrs, etc. HQrs Controller/
necessary wherever Controller
authority known
1 2 3 4 5 6 7 8 9 10
879
ANNEXURE-II to AAC
Statement showing cases of incomplete maintenance and non-

maintenance/non-production of Store Accounts noticed during the
year requiring regularization/condonation under Government orders
880
Statement 1A to AAC
Non-Maintenance of Accounts
Sl. Name of the Period of Name of Latest position Remarks

Unit / Accounts Particular in each case
No. Formations accounts not stating (Comparative
maintained whether position i.e.,
subsequently No. of units
maintained, if and accounts
so, from affected last
which date year should
also be shown
in the
certificate
proper)
1 2 3 4 5 6
881
Statement 1B to AAC
Improper Maintenance of Accounts

Sl. Name of the Period of Name of Latest position in Remarks
Unit / Accounts Particular each case stating
No. Formations Accounts not whether (Comparative
maintained subsequently set position with
properly right, if so, from regard to the
which date previous year
should also be
shown in the
certificate itself)
1 2 3 4 5 6
882
Statement 1C to AAC
Statement showing number of vouchers not produced for audit

Sl. Name of Unit & Formation No. of Vouchers not Remarks
produced for audit
No. (Comparative position vis-à-
vis last year should be shown
in the certificate proper)
1 2 3 4
883
ANNEXURE – V to AAC
Statement showing cases where Stores/Cash, etc., were not accounted

for
Statement showing stores not brought on ledger charge

Sl. Name of Name of Number of Remarks
consignee Unit consignor Unit/ Vouchers in
No. / Formation Formation respect of which (Comparative position
stores consigned vis-à-vis the previous
have not been year. No. of such
brought on vouchers would be
charge shown in the certificate
proper). Latest position
of vouchers settled so
far)
1 2 3 4 5
884
Statement 2 to AAC
Statement showing the position of stock verification in Ordnance

Depots, Vehicle Depots, etc., during the year
Sl. Unit Formation Total No. of items for Item for which Approximate percentage
which stock stock of items for which stock
No. verification was done verification verification was not
was not done carried out
1 2 3 4 5
Items for Balance Percent- Years i.e., Value Value of Remarks

which stock of items age of percentage of surplus
verification not discrep- of discrep- defici- (Comparative
has since been verified ancies ancies encies position vis-à-vis the
done during ….. previous year to be
subsequently (year) shown in the
i.e.., after ….. certificate proper)
(date)
6 7 8 9 10 11 12
885
Statement 3 to AAC
Statement showing number of CRV's not linked with the consignor's

issue vouchers
Sl. Unit / No. of CRV's not Since linked Balance Remarks

Formation linked subsequent of the
No. close of the
financial year
1 2 3 4 5 6
Note: The comparative position vis-à-vis last year should be shown in the
certificate.
886
Statement 4 to AAC
Statement showing the number of vouchers in respect of which credits

are not traceable in consignee's ledger
(value below Rs. 5000/-, Value of Rs.5000/- and above but less than Rs.15000/- and where the
monetary value is Rs. 15000/- or more in each case to be shown separately).
Sl. Yea Nos. of No .of No. of Total Category Remarks

No r vouchers voucher voucher
. of value s of s of A B C D
of Rs. value value
15000/- between below
or more Rs. Rs.5000
5000/- /-
and
over but
below
Rs.
15,000/-
1 2 3 4 5 6 7 8 9 10 11
Note:-Details for category A, B, C & D
A Stores not received at all.
B Stores received with minor defect/damages.
C. Stores cleared by inspector not found accepted by consignee.
D. Stores lost in transit/stores short received hence not taken on charge.
887
Statement 5 to AAC
Statement showing the position of outstanding on account of stores

supplied (payment issues) and services rendered(including hire
charges of Tools & Plants)for the period ending 31st March _____ as on
_______
(Individual items of over Rs 50,000/- in each case of private individuals/ institutions and
Rs 1 lakh in other cases outstanding for more than one year)
Sl. Name of the Name of the Period for Amount Remarks

consignor or the party from which the
No. authority which whom due amount relates
rendered service
1 2 3 4 5 6
888
Statement 6 to AAC
Statement showing details of outstanding dues on account of rent and

allied charges for the period ending 31st March _____ as on _______
(Individual items of over Rs 50,000/- in each case of private individuals/ institutions and Rs 1
lakh in other cases outstanding for more than one year)
Sl. Name of the Unit / Name of the Period for Amount Remarks
Formation party from which the
No. whom due amount
relates
1 2 3 4 5 6
889
Statement 7 to AAC
Statement showing details of losses awaiting regularization by

Government of India and are outstanding for more than one year
(including those requiring sanction by Ministry of Defence under
delegated powers).
(Outstanding claims against Railways representing losses and damages of Stores
in transit as well as claims outstanding against Shipping Corporation/ Carriers on
account of short landing/missing stores to be shown in a separate statement).
Sl. Name of the Unit / Amount Particular of Present Remarks

Formation No. and date loss position
No. of loss statements
1 2 3 4 5 6
890
Statement 8 to AAC
Statement showing number of outstanding audit objections raised up

to 31st March showing position as on 30th June.
(Separate statements for outstanding audit objections pertaining to Internal Audit
& Test Audit may be annexed as 8A & 8B respectively)
Sl. Name of the Unit / No. of Total Amount Oldest Remarks

Formation Outstanding involved Date
No. Objections
1 2 3 4 5 6
891
Statement 9 to AAC
List of units and formations whose accounts could not be audited

during _____ and their present position
Sl. Name of the Period of Present Reasons for not Remarks

Unit / Accounts Position auditing the
No. Formations regarding accounts during the
audit of year
account
1 2 3 4 5 6
892
Statement 10 to AAC
Statement showing number of vouchers not produced for audit
Sl. Name of Unit & Formation No. of Vouchers not Remarks

produced for audit
No. (Comparative position vis-à-
vis last year should be shown
in the certificate proper)
1 2 3 4
893
Statement 11 to AAC
Statement showing details of gifts and cases of transfer of property

exceeding Rs 1 Lakh in Book Value to Non-Government
Organizations during the year
S. No. Details of Book Value To whom Purpose of

property transferred transfer
(Rs in Lakh)
transferred
1 2 3 4 5
894
Statement 12 to AAC
Statement showing items of expenditure exceeding Rs 5,00,000/-in

each case which were included in Annexure-1 to CGDA’s certificate
Appropriation Accounts (DS) for previous years and which are still
awaiting regularization
Sl. Year to which the Sl.No. of Present position Amount Remarks

Appropriation Annexure 1 of the case and
No. Account pertains action taken to
expedite
regularization
1 2 3 4 5 6
895
Statement 16 to AAC
Statement showing the number of vouchers in respect of which credits

are not traceable in consignee's ledger (Foreign Invoice)
(Foreign invoices having value of Rs.5000/- and above but less than Rs.15000/- and
those having monetary value is Rs. 15000/- or more in each case to be shown in
separate statements)
Sl. Yea Nos. of No .of No. of Total Category Remarks

No r vouchers voucher voucher
. of value s of s of A B C D
of Rs. value value
15000/- between below
or more Rs. Rs.5000
5000/- /-
and
over but
below
Rs.
15,000/-
1 2 3 4 5 6 7 8 9 10 11
Note:-Details for category A, B, C & D
A Stores not received at all.
B Stores received with minor defect/damages.
C. Stores cleared by inspector not found accepted by consignee.
D. Stores lost in transit/stores short received hence not taken on charge.
896
Statement of Losses
Sl. Name of Particulars Period to Amount Circumstances

Unit / of the loss which the under which
No.
Formation loss the loss
in which pertains occurred
the loss
occurred
1 2 3 4 5 6
Details of the Particulars of Remedial No. and date Other

recommendation disciplinary measures of the loss remarks, if
of the court of action taken instituted or statement or any
inquiry, if held proposed to Government
be instituted letter under
for the which
prevention of regularized
losses in
future
7 8 9 10 11
897
Statement showing by various categories, the total amount of stores losses pertaining to the Defence Services
finally dealt with during the year ………..
Categories of losses Food & POL & Other MT Vehicles Other Medical MES Stores Misc. Aviation Naval Total
Forage aviation ASC & connected Ordnance Stores & buildings Stores Stores Stores
spirit Stores Stores &Clothing
Stores
1 2 3 4 5 6 7 8 9 10 11 12
Head I. Actual
Losses due to theft,
fraud or neglect.
Head II. Actual

losses due to other
causes :
(a) Fire
(b) Deficiencies in
actual balance
(c) Deterioration in
actual balance
(d) Defective
storage
898
(e) In Transit
(f) Misc. causes
Total of Head II
Grand Total of
Heads I & II
(The figures in the statement should be rounded to the nearest Rupees)
899
Statement showing by various categories, the total amount of cash losses

pertaining to the Defence Services relating to Post / Pre-partition finally
dealt with during the year ……..
Other categories
Fraudulent use
of Rly. warrant
hired transport
Overpayments
use of Govt. or
Losses of cash
Unauthorized
Categories of
irrecoverable
Demurrage
property
charges
claims
losses
Total
and
I. Losses
due to
theft, fraud
or neglect
II. Losses
due to
other
causes
Total II
Grand
Total I & II
900
Subject headings/format for preparation/submission of draft Internal Audit
Report cases by the PCsDA/CsDA
1 Subject title of the case:
2 Highlight of the case
3 Name of the Unit/formation
4 Financial value/implication
5 Audit facts
6 Audit observation/description of the irregularity in length

(including reference to relevant/precise rule/authority/orders
which have been overlooked and precise point at which
failure/irregularity is revealed)
7 Audit follow-up action
8 Audit conclusion
9 Audit Risk Rating
Audit Likelihood – Certain; Consequences: Major;

Risk high probable; moderately Medium/significa
Rating probable; low probable; nt; minor;
remote/rare insignificant
Risk: High,
Medium, Low
10 Action Proposed
901
Format for the forwarding letter of Internal Audit Report submitted by the
PCsDA/CsDA
To,
The DAD HQRs
Subject: Submission of Internal Audit Report.
The report on the above cited subject for the half-year ending………… is enclosed for
information and further consideration. The information viz. (i) subject title of the case; (ii) highlight of
the case; (iii) Category of the case (viz., Pay, Pension & Personal entitlement; Stores/Procurement;
Works); (iv) Name of the unit/formation/Establishment; (v) financial value/implication; (vi) time of
detection of the irregularity viz., during Local Audit/Performance Audit/Special Audit/Super
Review; (vii) violation of specific rule/order/authority; and (viii) Audit Risk Rating, is submitted in
following table for kind consideration.
Category of the case (viz., Pay,
pension & personal entitlement;
Name of the unit/ formation
Financial value/ implication

stores/Procurement; works)
Time of detection of the

title of the case
rule/order/authority
Highlight of the case
Violation of specific
Audit Risk Rating

/Establishment
irregularity
Subject
SL No.
No
.
1 2 3 4 5 6 7 8 9
1 Abc Pqr Pp & pe Lmn 10000/- During Local Rule Likelihood – Certain;
Audit/Performa para high probable;
nce order moderately
Audit/Special probable; low
Audit/Super probable; and
Review remote/rare
Consequences:
Major; Medium/
significant; minor;
and insignificant
Risk: High, medium,

low
2. The soft copy of the proposed cases/Internal Audit Report is also
forwarded through NIC mail/CGDAWAN
3. This issues with the approval of the PCDA/CDA
Sd/-
Dy.CDA/GO (IA)
902
Chapter – X
INFORMATION TECHNOLOGY WING
10.1. Objectives:
(i) To FACILITATE digitization and automation in various areas of the

Department.
(ii) To ENSURE advancements in TECHNOLOGY in the Department.
(iii) To ensure standardization of activities through Information

Technology initiatives and solutions.
(iv) To keep the Information Technology Policy of the Department

updated in sync with new advancements and Departmental needs.
(v) To undertake periodic exercise for assessment of IT Hardware for all

the field offices.
(vi) To ensure proper upkeep of IT Hardware, Software and Networks for

smooth functioning of IT Projects.
(vii) To achieve efficiency and accuracy in functioning and provide data

on real time basis.
903
10.2. Duties:
(i) To implement various IT Projects for automation of works being

undertaken in the Department.
(ii) To procure IT Hardware and IT Consumables and issue the same as

per necessity/demand to various sections/ sub-offices.
(iii) To maintain IT Hardware, Software and Networks for smooth

functioning of IT Projects.
(iv) Application management for entire IT solutions/ portals being used

in the Department
(v) To undertake role of System Administrator for carrying out back-end

activities for entire IT solutions/ portals being used in the
Department such as user role mapping, etc.
(vi) To identify needs for Digital Signatures for various IT related

activities and their procurement, distribution and all connected
activities.
(vii) Updation and maintenance of websites hosted by the offices of the

PCsDA/ CsDA.
(viii) To make continued study and efforts so as to integrate the systems

developed for the Department with other systems to produce real
time MIS required at all levels.
(ix) To maintain single source of truth, data quality and availability by

avoiding multiple copies of data through its replication.
(x) To follow the guidelines issued by the Ministry of Electronics and

Information Technology (MeiTY), National Informatics Centre
(NIC),etc. for different IT areas especially disposal of e-waste
(hardware and software both), etc.
(xi) Devising policy to focus on improving the structures for work

distribution between various divisions and improving the
collaboration between various agencies.
904
(xii) To focus on improving core functions of organisation / domain and
outsource non-core functions.
(xiii) Identifying ways and means for continually improving the IT systems
to address the concerns of the internal and the external stakeholders –
mainly the clients.
(xiv) To identify the agencies for outsourcing of IT projects for better

project execution and maintenance.
905
10.3. Information Technology Wing of DAD HQrs
The IT Wing of DAD HQrs will look after the following areas of work
for accomplishing the various IT related activities in the Department
through various Sections:
Name of Work to be dealt

Section
IT- • General Administration.

Administration • Rendition of different reports and returns
including Monthly Leave Statement
• IT&S Training related works
• E-procurement Portal
• IT Manpower (DAD) - Transfer/Posting
• Outsourcing of IT Manpower for HQrs IT &S Wing
• Dak-Diary,
• CPGRAMS
• Content Updation of DAD HQrs Website
• Procurement for IT Division for DAD HQrs
• Accounting and Maintenance of IT Assets
• AMC of IT Hardware of DAD HQrs
IT-Budget • Allotment of IT Budget(BE&RE),

• Budget Monitoring and related MIS,
• Release of funds to PCsDA/CsDA/IFAs for
procurement of IT Hardware/Software( All India)
Network • DAD WAN (MPLs VPN)/ LAN

Systems & IT- • DNS Server, Video Conferencing
Security • Coordination with NIC-NOC
• All Co-ordination and issues pertaining to the NIC
& Cloud excluding NIC-NOC related issues
• Matter related to Cyber Security & NOC-SOC
• Security issues of all DAD Websites &
Maintenance of DAD HQrs Website
906
Section
• Management of Social Media Accounts of DAD

HQrs
Miscellaneous • Action Plan for short term and long term targets
Section (IT Development)
• Allotment of Unit Code and issue to PAO(ORs)
• Inspection Report
• All legal issues pertaining to IT wing including
MEIT
• Matters on Synergy Conference, Controller
Conference& DAD Day
• Data entry related work and any other work not
assigned
• All matters other than those dealt with by other
division of IT&S
• NIC Mail Creation & Changes
System/ • Defencepension.gov.in & Mobile App & SUVINAY

Projects • Comprehensive Pension Package (SPARSH)
• All matters relate to IT Support & Monitoring for
Project PRABAL being developed by WIPRO
• All matters related to DTS(Rail & Air)
• Comprehensive Pay System
• Maintenance of Honey Bee Server
• Server and Data base related work all projects,
CGDA Mail Server (Zimbra) creation and
Maintenance.
• PRABAL with Legacy NCS, Budget Module, eMRO
• GP Fund System (NIDHI)
• SIFA
• e-Suchna
• e-office
• TULIP &GeM Integration with Tulip
907
Section
• Misc. Projects viz. SBI-CMP, DSC, DAD Pay

System, Bhawan, Vishwak, NISC Developed
Projects (CCMS, GHMS, VOICE, SPARROW) and
other In-house developed Projects developed by
sub-offices.
• Any other new projects
• Study and effective utilization of systems
developed by services in Audit and Accounting
functions of DAD.
Similar functions, as outlined above and found necessary to be

performed, shall be undertaken by the IT Wing in offices of the
PCsDA/CsDA within their organisations.
908
10.4. Focus on improving core functions of organisation /
domain and outsource non-core functions
In order to have an emphatic presence of the Defence Accounts
Department within the Government Sector and assure optimum client
satisfaction, it is imperative that a clear distinction and vision in handling the
core and non-core functions of the Department is well-defined.
In view of the above, it is to be firmly and clearly adopted that the core
functions of the Department viz. the Payment, Accounting, Auditing and
Financial Advice will be handled by the officials and non-core functions such
as IT development and maintenance will be outsourced.
This will bring in a specialized approach towards achieving

stakeholder’s satisfaction.
909
10.5. Formulation and updation of DAD IT Policy
Over years, the DAD has made significant progress in IT adoption.
Several applications have been built to facilitate automation and digitization.
While these applications solved point problems but this has also led to data
and application silos.
To take the digitization and automation journey forward in a structured

manner, leveraging fast technology advancements and to drive
standardization, there is need for IT policy at the organizational level.
Some of the benefits to be drawn out of such a policy are:
Focus on standardization
The standards ensure that the systems come with consistent quality and
are comparable to the products or services in the IT industry. It will also help
in ensuring the security, interoperability, and compatibility of systems
produced.
Standards based project documentation

The documentation will be prepared by adopting the standards used in
the IT industry. For example as recommended by IEEE, ISO and other
commonly followed implementation methodologies. Documentation
standards should ensure easy transfer of ownership of the systems.
Real time MIS using modern technologies and integrated

applications
The systems produced for the Department should be integrated with
other systems so as to produce real time MIS required at all levels.
Single source of truth, data quality and availability

Multiple copies of data and its replication should be avoided unless
absolutely necessary.
Improved work distribution and collaboration

The policy focuses on improving the structures for work distribution
amongst various divisions and improving the collaboration.
910
Focus on improving core functions of organisation / domain and
outsource non-core functions
The policy should also cater to this aspect for future continuance of the
Department.
Reduce cost by removing redundancies in IT infrastructure

The policy should necessitate that the IT infrastructure be put to
optimum utilization at par with best practices in the industry.
Improve user experience

IT systems will be continually improved to address the concerns of the
internal and the external stakeholders (mainly the clients)
Knowledge transfer and maintainability
In view of transfers of officials from IT to non-IT functions, it is
important to ensure knowledge repositories, ease of access, availability and
ease of transfer.
Avoid dependence and lock-ins

Under the policy, a Vendor lock in will be avoided as far as possible.
This will be made possible by designing and adopting technology neutral
solutions.
911
10.6. DEFINING THE ROADMAP
DAD headquarters will establish a short term and long term IT

roadmap, in consultation with field offices and stakeholders. Only
projects which are approved in these plans will be taken up for
development by organizations/team identified by the DAD HQrs. Small
IT projects not in approved plans but of local significance which don’t
have wider organizational impact or use may be allowed after approval
from the authority designated by the DAD HQrs/CGDA.
IT requirement will be identified and intimated to the DAD HQrs

for incorporation into the IT Roadmap. IT team of DAD HQrs shall
constitute the Project Team to execute the project by adopting an
appropriate methodology which may be strictly followed. All
applications must be reviewed at predetermined checkpoints of the
Software Development Life Cycle (SDLC) by the Application Architect
or their designate. Any deviations must be reported and corrective
actions determined. The process that must be followed for each project
right from initiation to maintenance/sustainment shall be as per the
DAD IT policy issued by the DAD HQrs from time to time.
There shall be a separation between the production, development

and test environments. This will ensure that security is rigorously
maintained for the production system, while the development and test
environments can maximize productivity with fewer security
restrictions.
912
10.7. OUTSOURCING OF WORK /PROJECTS
To be able to leverage technology advancements and remain

focused towards domain functions, outsourcing of IT projects has to be
adopted for project execution and maintenance of IT projects.
In house development by DAD officials may be resorted and

allowed only in cases where compelling justifications are available, and
only after approval of DAD HQrs. The maintenance of existing In house
developed projects should also be outsourced. This will enable the DAD
to get skilled resources as per requirement and allow it to be focused on
core functions.
913
10.8. ENSURING THE GENERAL STANDARDS
For the optimum resources and the developments achieved, the IT

Wing shall ensure that all IT projects, including maintenance projects,
must follow certain standards as given below:
(i) Clear definition of purpose, problems the project will solve,

objectives it is expected to meet, functions it is expected to
deliver.
(ii) Simplicity of use.
(iii) Ruggedness (difficult to misuse, should not crash due to

errors and give meaningful reasons for errors).
(iv) Projects should be delivered on time to counter obsolescence

and cost overrun.
(v) Reliability and consistency of the information produced by

the IT system.
(vi) Efficiency (fast enough for the purpose it was created).

(vii) Conforming to current industry standards and Government
of India and MoD (Ministry of Defence) guidelines issued
from time to time.
(viii) Clear, accurate and precise user documentation.
(ix) Clear, accurate and precise technical documentation.
914
10.9. Constitution of Project Teams
All systems must have designated project team who will act as
Owners and Custodians of the IT systems. Project team will ensure that
correct requirements are framed for new systems and for changes in the
existing systems by involving all stakeholders. Project team will also be
responsible for verifying the final deliverables and provide sign-off.
The various Project teams in the DAD are required to comply with
the policy vis-à-vis the policies and guidelines issued by Government of
India and the Ministry of Defence, etc.
915
10.10. Various IT Projects in DAD
10.10.1. PROJECT ‘TULIP’
The office automation task is primarily done in Regional

PCsDA/CsDA offices through Project ‘Tulip’. The Project Tulip has
replaced w.e.f 01.04.2015 the previous Office Automation Project named
‘SUGAM’.
Project ‘Tulip’ is an online Office Automation System based on
Java platform and developed in-house by the CDA (ITS&DC),
Secunderabad. The project covers all the activities from dak diarisation
to payment of bills through e-payment mode. The project has also been
implemented in other functional PCsDA/CsDA offices after
customization.
Following issues are dealt with by the IT Wing for smooth functioning
of Project Tulip:
(i) Updation of Tulip software as and when the CDA (ITS&DC),
Secunderabad releases an update;
(ii) Taking daily backup of Tulip database for maintaining data
integrity and consistency;
(iii) Creation, modification and mapping of individual ‘Tulip’ ID’s
as per requirement;
(iv) Resolution of various issues pertaining to the work of different
sections and individuals as System Administrator;
(v) Extraction of Cheque Slip data of various units/formations and
uploading it on respective PCsDA/CsDA website.
916
10.10.2. PROJECT ‘NIDHI’
Project ‘NIDHI’ is General Provident Fund (GPF) system for Non-

DAD Civilians developed on a new PHP platform. Data
feeding/updating tasks are performed by respective Pay audit
sections/sub-offices on the system deployed on server held in IT Wing of
Regional PCsDA/CsDA offices connected through
LAN/VPN/Broadband, etc. Consolidated data is forwarded by IT Wing
to office of the CDA (Funds) Meerut on monthly basis.
917
10.10.3. PROJECT ‘VISHWAK’
In order to automate the working of offices of the AOs/ AAOs

(GE), an application using PHP/JAVA Script/HTML as language and
MYSQL as a database has been developed in house namely, Project
‘VISHWAK’. A server of appropriate system configuration is installed at
Regional PCDA’s/CDA’s office and all offices of the AOs/ AAOs (GE)
under their jurisdiction are connected to this server through VPNoBB
connections.
918
10.10.4. PROJECT ‘RAKSHA AWAAS’
Project ‘Raksha Awaas’ is a web-based application developed with

the objective of bringing all the stake-holders i.e., PCsDA/ CsDA, BSOs,
AAO BSOs, PAOs, private parties, etc. on common platform to effect the
timely generation of rent and allied charges bills in respect of Service
Officers, JCOs/ORs, Defence Civilians and Private parties and their
prompt recovery. The ‘Raksha Awaas’ portal can be accessed only by
authorized users with their credentials mapped with Digital Signature
Certificate (DSC). In this application, there are two levels of users namely
entry level users and authorization level users. ‘Raksha Awaas’ has
replaced Project ‘Bhawan’ previously used for this purpose.
919
10.10.5. PROJECT ‘LIFELINE PLUS’
Project Lifeline Plus is the WAN Monitoring System for monitoring

of MPLS-WAN sites. It has been developed in-house and was
implemented initially at DAD HQrs. In 2019, Lifeline Plus has been
extended to offices of all the PCsDA/CsDA & equivalent for better
monitoring of WAN System. It is available on DAD MPLS-WAN.
920
10.10.6. PROJECT ‘e - SUCHNA’
In order to streamline the MIS/reporting system, e-Suchna, a

paperless reporting system has been developed in-house wherein
dynamic reports may be created and mapped at various levels. It is
available on MPLS-WAN.
e-Suchna portal is utilized by the offices of the PCsDA/CsDA for

sending reports to HQrs office. Similarly, it is also utilized in seeking
various reports in the desired proforma from sub-offices within the
organization of the PCsDA/CsDA. Project e-Suchna has enabled efficient
generation, consolidation and rendition of reports at various levels
within DAD.
921
10.10.7. PROJECT ‘NEW COMPILATION SYSTEM (NCS)’
The present Compilation System revolves around Distributed Data

Processing (DDP) centers located all over the country. The Punching
Media (PM) is compiled by the IT Wing in the offices of the
PCsDA/CsDA and sub-offices through an automated system named as
‘New Compilation System’. This is an in-house project developed in PHP
and comprises of two different modules i.e., Punching Media (PM)
compilation and Defence Inter Departmental Schedule (DIDS) modules.
922
10.10.8. PROJECT ‘SPARSH – SYSTEM OF PENSION
ADMINISTRATION (RAKSHA)’
Defence Accounts Department has implemented the System For

Pension Administration (RAKSHA) i.e., ‘SPARSH -’, which is a web-
based Interactive pension disbursement system for Defence Pensioners.
The system is centralized and susceptible for grievance management of
pensioners. Necessary inputs required by o/o the PCDA (Pensions),
Prayagraj for issue of Pension Payment Order (PPO) are being
transmitted through this project only by the Personnel (Payment) Wing
of respective PCsDA/CsDA and their sub-offices.
923
10.10.9. PROJECT ‘SPARROW’
Smart Performance Appraisal Report Recording Online Window

(SPARROW) is an e-office initiative implemented by Department of
Personnel & Training (DoPT) of the Ministry of Personnel, Public
Grievances & Pensions with the technical support of National
Informatics Centre (NIC). With the help of this system, the entire
processes involved in management of Performance Assessment Reports
(PAR) has been automated right from generation of PAR to maintenance
of PAR dossier with an online web-based software application.
924
10.10.10. PROJECT ‘INFORMATION TECHNOLOGY
MANAGEMENT SYSTEM (ITMS)’
In order to manage and monitor various IT related activities/issues in

offices of the PCsDA/CsDA & equivalent for exchange of various IT
related information on real time basis, Information Technology
Management System (ITMS) has been developed in-house and
implemented by the DAD HQrs w.e.f 01.04.2017. It has following
features:
(i) IT & S Manpower Management
(ii) Budget Allotment and Expenditure Monitoring
(iii) Dead Stock Management
(iv) Docketing System, i.e., complaint monitoring for various IT
projects.
ITMS is available only on MPLS-WAN and is recommended to be
used on Mozilla Firefox/Google Chrome browser.
925
10.10.11. PROJECT ‘e-OFFICE’
e-Office suite is a system designed by National Informatics Centre

(NIC) for the Government Departments, PSUs and Autonomous bodies
to enable a paperless office by scanning, registering and routing the
inward correspondences along with creation of file, noting, referencing,
correspondence attachment, draft for approvals and finally movement
and tracking of files as well as receipts on the form of e-files which forms
an integral part of e-office suite. e-File is a workflow-based system that
includes the features of existing manual handling of files in addition to
more efficient electronic system. This system involves all stages of
working in a file, including the diarisation of inward receipts, creation of
files, movement of receipts and files and finally, the archival of records.
926
AADHAR ENABLED BIOMETRIC ATTENDANCE SYSTEM
(AEBAS)
The management of attendance for employees is a necessary task

for all organizations because officials’ presence in offices directly impacts
productivity and efficiency. Since the supervision of traditional
attendance system was difficult and liable to incorrect information being
entered, the Government decided to implement a common biometric
enabled attendance system across India with a basic requirement, an
Aadhaar number. AADHAR Enabled Biometric Attendance System
(AEBAS) is a part of the “Digital India” program of Government of India
that was implemented in the Central Government Offices. The system
enables the employees to register attendance by simply presenting their
biometrics (finger print/Iris) in the installed biometric devices, that is
authenticated online from the biometrics (AADHAR) stored with Unique
Identification Authority of India (UIDAI).
927
10.10.13. Project PRABAL
The Project PRABAL is being designed to bridge the various gaps
found to be there in the PFMS. These gaps could have been a likely issue
in accomplishing the multifarious activities in the functioning of the
DAD. Project PRABAL will cater to accounting and budgeting role of the
DAD in a simplified and accurate manner to achieve the role and
responsibilities of the DAD for the client orgnizations. It shall also
provide real-time MIS for the Executives as well as the top echelons of
the Department.
928
10.10.14. Project Comprehensive Pay System (CPS)
To ensure maintaining continuity towards development and
strengthening the existing mechanism to meet the expectation of various
stakeholders in the rising era of technology, Comprehensive Pay System
leveraging Information Technology and institutionalizing the
transparency in business is visioned in accordance with the national
objective of e-Governance and theme of ‘Digital India’. It is culminated
that Project CPS would encompass all categories of MoD employees and
cover entire gamut of budgeting (compilation), accounting, auditing,
disbursing, managing and reporting of Pay & Allowances, TA/DA,
Medical & Funds etc.
Project CPS is the key instrument to integrate all the data in

various forms under one uniform application for similar and routine
nature of work across various organizations with two interfaces –
internal and external with air gap to minimize cyber attacks. Considering
TA/DA as a part of dues to the entitled employees, DTS is also to be
taken on board.
Project would be implemented for Army’s Officers, PBORs, DAD

and civilians in phased manner. In regard to Air Force and Navy,
respective DAD offices will require coming on CPS first for their audit
purpose and later on, service will be asked for to come on board even for
payment purpose.
Comprehensive Pay System will begin with capturing all the data
related to Pay Matrix according to cadre hierarchy, rank structure,
various allowances and their algorithm in respect of different categories
of personnel under MoD. Change statement will be initiated by the
HOOs to be taken up as inputs by the task holder concerned in Project
CPS to affect the pay & allowances of the Individual concerned. These
inputs will be received initially in manual form or in soft copy which will
be replaced in advance stage of CPS by direct data entry on the gateway
interface provided to different H.O.O./Stakeholders from the very initial
stage. Output of such change statements/data entry will be reflected in
reports including Pay Slips generated after processing the data and
929
financial value credited/debited to pay account of the concerned
beneficiary and release of payment accordingly through the medium of
BHARAT KOSH or SBI CMP/SBO FAST Plus.
Project CPS will serve the twin objectives: - (i) to overcome present
deficiencies and gaps, and (ii) futuristic platform to meet Theatre
Command needs, in line with the concept of One Nation – One Unified
Structure – One single application for all payments and employees asset
maintenance needs. It also aims to bring in the best practices and
applications available in the Industry for Pay & Allowances applications
through outsourcing route. The futuristic vision is on-boarding all
stakeholders on one single CPS platform as the final phase of the project
and Phase 1 where all DAD applications are to be brought under one
umbrella CPS with inputs data from stakeholders concerned.
It is considered that CPS would be located centrally to be headed

by Addl. CGDA with IT&SDC providing it with IT support and
PCsDA/CsDA to perform Regional Service Centre(s) including Heads of
Audit.
930
10.11. IT SUPPORT
IT Wing of DAD HQrs/ PCsDA/ CsDA offices is directly

responsible for implementation and smooth functioning of all the
projects mentioned in above Paras by providing all kinds of support
relating to hardware, software and network/ connectivity. Vital
functions such as creation/ mapping of ID’s, technical support,
education and removal of bugs/ technical bottlenecks are also entrusted
to this wing.
931
Chapter – XI
Systems Wing
SYSTEMS WING OF DAD HQRS
(i) Maintenance, updation, BPR& vetting of departmental codes &

manuals including scrutiny of draft amendments to Codes and
Manuals proposed by the PCsDA/CsDA
(ii) Analysis of thematic audit reports submitted by PCsDA/ CsDA.
(iii) Monitoring of Offset Audit.
(iv) Carrying out Time & Motion Study
(v) Streamlining rationalizing of various systems & procedures

including periodical reports and returns being submitted by
various offices to DAD HQrs.
(vi) Carrying out regular inspection of the various

PCsDA/CsDA/IFAs of the Department(including DAD HQrs)
(vii) Development of Centralized Online Training Facilities
932
11.2. MAINTENANCE, UPDATION & VETTING OF
DEPARTMENTAL CODES & MANUALS
Instructions are issued by the DAD HQrs from time to time to

carry out changes in any item of procedure prescribed in the various
Codes and Manuals. On the basis of such instructions the PCsDA/CsDA
concerned propose necessary amendments to the publication concerned.
Copies of such proposals will be sent to other PCsDA/CsDA so that
they may also propose amendment to other publications affected with
which they are concerned.
In regard to amendments necessitated by the issue of orders by

authorities other than the DAD HQrs, as far as possible DAD HQrs will
ensure that steps are taken to call for the necessary draft amendments
from the PCsDA/CsDA concerned. The draft amendments from the
PCsDA/CsDA will be received in the Systems Wing. They will be
scrutinized to ensure that the amendments are clearly worded and bring
out correctly the intention of the orders on which they are based. The
amendments will be approved by the CGDA before adoption.
Systems Wing of DAD HQrs will also strive to maintain the audit
and accounting procedures of the Defence Accounts Department at a
high level of efficiency by prescribing Business Process Reengineering
(BPR) on updation of manuals of the Department in context of fully
automated scenario.
933
11.3. ANALYSIS OF THEMATIC AUDIT REPORTS
SUBMITTED BY PCsDA/ CsDA
Thematic audit is conducted by the PCsDA/CsDA with reference

to the instructions/guidelines issued by the DAD HQrs from time to
time. Projects/areas proposed to be taken up for study from Thematic
Audit angle by PCsDA/CsDA during a year are intimated in advance to
DAD HQrs. A gist of points of interest is also sent to the DAD HQrs
after completion of the study which are examined and Controller
General of Defence Account’s clearance for submitting the formal study
report to the Administrative authorities with copies to the Controller
General of Defence Accounts taken. Based on the evaluation of results of
Performance studies conducted byPCsDA/CsDA, cases considered, fit
for inclusion in the AAC are included by PCsDA/CsDA on merits of
each case.
Thematic Audit is required to be carried out by the PCsDA/CsDA

with references to the information readily available in auditable
documents. Any information/document required but not available with
audit should be called for from the Administrative authorities, clearly
indicating the purpose. Cases of reluctance on the part of Administrative
authorities to furnish any information/document will be reported to
DAD HQrs for intervention and help.
934
11.4 TIME & MOTION STUDY
To ensure that manpower requirements are scientifically assessed,

and methods of work of the Department systematically reviewed from
time to time. For this purpose this wing will examine the the suggestions
received from the PCsDA/CsDA under the “Suggestion Scheme”, and
process them to finality with the Central Committee. A quarterly report
on the “Suggestion Scheme” to Department of Administrative Reforms,
through Ministry of Defence (Finance), is also rendered by this wing
whether there is any progress to be reported.
System Wing also lays down guidelines for fixing the

norms/scales for the various jobs in the offices of Department (including
DAD HQrs) and carries out examination of the O&M study reports
received from the PCsDA/CsDA and for obtaining orders of CGDA on
them. This involves collection and supply of data and other particulars
required by SIU in respect of areas of Department’s activity
entrusted/selected for study by staff Inspection Unit Examination of the
results of such study and processing of further action thereon.
935
11.5. SYSTEMS AND PROCEDURE
This wing is also concerned with the improvement and

reorientation of the audit and accounting procedures regarding Defence
Services receipts and expenditure. Existing procedures will be reviewed
by the section on its own initiative. It will also study questions relating
to procedures which are referred to the DAD HQrs by the
PCsDA/CsDA or by Service Headquarters/ Ministries of Government
of India especially Ministry of Defence/ Ministry of Defence (Finance),
Comptroller and Auditor General of India and other parties.
The detailed methods and procedure followed in the different

wings of the PCsDA/CsDA offices are laid down in this DAD Manual.
Further, detailed instructions have been laid down in the various letters
issued by this DAD HQrs and in rulings issued in consultation with
higher authorities. These are subjected to a critical review by this Wing,
so as to ensure that the existing methods and procedure do not become
out-dated, but effectively fulfil the objectives in view. Such a review may
be initiated either on receipt of a specific proposal to that effect from a
PCsDA/CsDA or by Service Headquarters or Ministry of
Defence/Ministry of Defence (Finance) etc., or by any Wing of the DAD
HQrs or by Systems Wing on its own motion.
References from PCsDA/CsDA regarding clarification of doubts

regarding existing procedure will be dealt with by Audit Wing. On
receipt of a reference from the PCsDA/CsDA suggesting change or
abolition of existing procedure, it should be seen that the reference is
complete in that it indicates clearly:
(i) The procedure prescribed in the existing order;
(ii) The actual procedure followed by PCsDA/CsDA;
(iii) The exact difficulty in following the procedure prescribed; and
(iv) PCsDA/CsDA suggestion and recommendations for improvement.
Where the question is of a general nature pertaining to more than

one PCsDA/CsDA office, the PCsDA/CsDA may make reference to this
936
DAD HQrs direct if he so desires. Where necessary, DAD HQrs will
make references to other PCsDA/CsDA to ascertain their views and the
practice followed by them.
The position will thereafter be carefully studied with the relevant

codes/manuals or other instruction on the point raised. The origin of the
particular method or procedure should be traced from the records,
wherever possible, for a proper appreciation of the circumstances that
led to its introduction. The actual working of the procedure should then
be studied carefully in any of the local Defence Accounts Departments
offices or in any of the PCsDA/CsDA offices. An office note should then
be put up for consideration and directions of the Controller General of
Defence Accounts bringing out clearly the existing procedure with the
authority therefore the circumstances in which a change in that
procedure is sought, and the considered opinion regarding the
procedure that should be adopted in future, if, however, the suggestions
are simple not warranting a special note, the draft reply itself will be put
up for approval.
Where the implementation of the proposed references calls for a

change in the procedure followed by administrative authorities as well,
the same should invariably be referred through a self-contained note to
the Service Headquarters concerned. Unilateral action should not be
taken to change any procedure followed in internal audit in this respect.
Service Headquarters concerned should also be requested to notify the
changed procedure to be followed for the guidance of the lower
formations.
Cases of irregularities that are brought to notice by the Ministry of

Defence/Ministry of Defence (Finance) or Service Headquarters or the
Director General of Audit (Defence Services) or PCsDA/CsDA will be
examined by the concerned sections and referred to Systems Wing, with
a view to finding out the defect in the system or procedure and take
suitable remedial action.
On procedural and organisation questions initiated by the DAD

HQrs, on its own or at the instance of the administrative and financial
937
authorities, the views of PCsDA/CsDA should be obtained whenever
snags or difficulties in actual implementation are anticipated, to that the
same may be taken into account before the issue of the final instructions
in the matter.
The Ministry of Defence (Finance), Director General of Audit

(Defence Services), Controller General of Accounts, etc. will be consulted
wherever it is necessary to do so, in the light of existing orders.
938
11.6. INSPECTION GROUP
The objective of Inspection is twofold, viz.
(i) to enable the DAD HQrs to ensure that his ultimate responsibility
for the efficiency and effectiveness of the Department as a whole is
adequately discharged, and,
(ii) to suggest changes in procedure or introduce new procedures as

found necessary.
In order to achieve the above objective following duties are

promptly discharged:
(i) To arrange for carrying out on behalf of the CGDA, periodical

inspections of the offices of the PCsDA/CsDA of the department
(ii) To keep the inspection manual upto date in conformity with

revised orders/procedures etc., and in the light of the experience
gained through inspection.
(iii) To prepare pre-inspection briefs for use by Reviewing officers:
Note: The briefs will take into accounts points of common interest picked out
from reports on MFAI, IAR, Financial Advice, and previous Inspection reports
of various PCsDA/CsDA. For this purpose the inspection cell will keep in touch
with the audit and other sections and keep itself familiar with important
developments/irregularities, as also changes in procedures etc., introduced in
the Department.
(iv) To prepare further inspection reports of Reviewing officers.
(v) To maintain Inspection Register (PCsDA/CsDA-wise) in order to

keep up-to-date records of Inspection of PCsDA/CsDA carried out
(vi) To receive and deal with half-yearly Inspection reports from

PCsDA/CsDA and circulate important irregularities existing, in
some of the offices to all PCsDA/CsDA for their information and
corrective action.
939
(vii) To give direct feedback to PCsDA/CsDA on
Administrative/Audit aspects of other PCsDA/CsDA as brought
out in the reports of the Reviewing officers.
The inspection should aim at ascertaining through judicious and

careful sampling of various items of work in PCsDA/CsDA to see:
(i) whether the prescribed procedures of audit and accounting had

been followed correctly and efficiently;
(ii) recurring mistakes or typical mistakes over a wide area of work

have occurred,
(iii) there is evidence of faulty supervision or lack of effective

supervision at any level;
(iv) any major weakness in system or procedures exist in a particular

office.
The Inspecting Officers and team will generally be guided by the

Inspection manual. The particular items of works or documents to be
examined and the exact extent and manner of checks to be exercised will,
nevertheless, be decided at the discretion of the Reviewing officers.
However, while reviewing officers may subject any portion of the work
selected for sampling to extensive and detailed scrutiny, they should
avoid getting involved in trivial details or cases of isolated lapses, which
have no significance from the point of view of overall working of the
office.
Normally, PCsDA/CsDA main offices will be inspected once in a

period of two years.
Inspection teams will be headed by Addl. CGsDA/Sr. Jt. CGsDA /

Jt. CGsDA/Sr. Dy. CGsDA/ Dy. CGsDA/ Sr. ACGsDA/ACGsDA, as
decided by the CGDA assisted by one or more SAOs/AOs /AAOs
depending on the volume and nature of work. The names of the
Reviewing officers, other officers and staff will be intimated to AN-
section for issue of necessary Part-II orders.
940
The inspection team will work under the direct guidance of the
Reviewing officer who is nominated to lead the team. Before
commencement of work in any office, the Reviewing officer will allocate
duties/areas of work to the members of the inspection team.
In addition to Inspection proper as laid down in the Inspection

Manual, Reviewing officers will examine procedures and systems in
selected areas at their discretion or as decided by the CGDA. Findings or
suggestions on systems and procedures will be passed on by the
Reviewing officers to the concerned procedure/systems cell for further
processing.
Inspection report will be prepared and disposed of in the following

manner:
(i) The points arising out of the Inspection should first be discussed
by the SAO/AO/AAO with the AAO/Officer-in-charge of the
section concerned and the result communicated to the Reviewing
officer, who will discuss such of those items which cannot be
satisfactorily settled with the PCsDA/CsDA/Addl.CDA/Jt.CDA.
Suggestions likely to be helpful in the improvement of methods
and procedures should also similarly be discussed, and the
outcome embodied in the report, if necessary.
(ii) The Inspection reports will be prepared by the Reviewing officer

themselves with the assistance of the SAO/AO/AAO
accompanying the team. The report will be prepared in two parts.
Part-I will comprise of all items which are considered to be of a
major bearing from the view point of audit and accounting,
whereas in Part-II will be included minor mistakes coming to
notice or other irregularities, where no serious disregard or
circumvention of procedures or rules is involved. No replies from
PCsDA/CsDA to items included in Part-II would be called for or
are expected.
(iii) The inspection report should be clear and concise. The report
should as far as possible refer to the relevant rule or order
941
transgressed and mention precisely the nature and extent of
transgression. It will not however be burdened with illustrative
examples.
(iv) A summary of all important matters and outstanding problems

will also be prepared alongwith the Inspection report to enable the
CGDA to have a correct appreciation of the overall situation and
efficiency of works in the concerned offices. Areas requiring
changes/modification of procedures, if any, will also be
highlighted in the summary.
(v) The draft report will be shown to and discussed with the Head of
the office before closing the inspection, and the result of such
discussion indicated suitably in the final report where necessary.
(vi) Three/four copies of the final inspection report will be prepared

and distributed as follows:
a. Two copies will be sent to the Head of the Office inspected
within 15 days of the completion of the Inspection, who will
return one copy of the report with replies within one month
of the receipt of the report.
b. One copy will be sent to the sub office in the case of
inspection of the sub-office.
c. The other copy will be kept as office copy.
Annual inspection programme will be drawn up by the respective

Inspection cell early in March, for the inspection to be carried out during
the ensuing year. The actual dates of visit for the inspection of a
particular office will be proposed to the CGDA and his approval taken.
Ordinarily a month’s notice will be given to the PCsDA/CsDA.
942
SYSTEMS WING AT PCsDA/CsDA OFFICES
11.7. General arrangement of work
The work in this Wing is arranged in following groups: -
(a) Coordination Group
(b) Organization & Methods Group
(c) Training
(d) Inspection & Total Quality Management (TQM) Group
943
COORDINATION GROUP
11.8. OBJECTIVES
In the light of modern management practices consistent with the
requirements of Defence Services, the objective of this group is to
maintain the audit and accounting procedure & systems at high level of
efficiency by prescribing new procedures and systems and reviewing or
revising existing ones in the areas of work assigned by the DAD HQrs.
944
11.9. FUNCTIONS
The functions of this group are to examine various existing

procedures and systems in vogue which need reorientation and
streamlining and to submit proposals to the DAD HQrs for approval.
The proposal should contain an analysis of the existing systems and
procedures together with authority, its failure and shortcomings as
revealed by practical and detailed examination of the practice and
suggestions for improvement together with justification thereof.
The specific areas of work assigned to various PCsDA/CsDA for
suggesting changes in systems checks & work flow in respect of under
mentioned functions of the department: -
S. No. Office Areas Assigned
(i) Pr. CDA (Pensions), Prayagraj Pension Sanction & Disbursement in
respect of all categories of Defence
Personnel & Civilians
(ii) Pr. CDA (WC) Chandigarh Works Accounting & Audit
(iii) Pr. CDA (CC), Lucknow Seller Payments
(iv) Pr.CDA (Border Roads), Delhi Border Roads “Works & Seller Payments”
Cantt.
(v) Pr. CDA (SC), Pune Accounts
(vi) CDA (Army), Meerut Local Audit
(vii) CDA, Patna Personal Claims (TA/DA, LTC, Medical
Reimbursement, etc.)
(viii) CDA, Jabalpur Internal Audit
(ix) Pr. CDA (O), Pune Pay & Allowances (Army Officers)
(x) Pr. CDA (Navy), Mumbai Pay & Allowances (Naval Personnel &
Civilians)
(xi) Pr. CDA (AF), New Delhi Pay & Allowances (Air Force Personnel &
Civilians)
(xii) Pr. CDA, Bengaluru Pay & Allowances (Army Personnel)
(xiii) Pr. CDA (NC), Jammu Pay & Allowances (Civilians including
945
DAD)
(xiv) Pr. CDA (R&D),New Delhi Pay & Allowances & Seller Payments
DRDO
(xv) CDA (CG & Navy), New Delhi Pay & Allowances (Coast Guard
Personnel)
(xvi) CDA (CSD), Mumbai Pay & Allowances & Seller Payments
CSD
The Progress made against the areas undertaken will be shown in

the Quarterly Achievement Report of the PCDA/CDA concerned.
946
ORGANIZATION & METHODS GROUP
11.10. OBJECTIVES
The Objectives of O&M Group is to ensure rational organization

by keeping in view span of controls and scalar process to assess
requirement of staff on scientific basis through methods study and
standard norms in the areas allotted by the DAD HQrs and to review the
same through periodical systematic review.
The O&M Group deals with study of various sections in order to
achieve economy and efficiency in all areas of work.
947
11.11. FUNCTIONS
The main functions of O&M Group are:-

(i) Preparation of Job Description Sheets (User Manuals with
description & flow charts) & Frequently Asked Questions (FAQs)
for nominated areas of work, as well as updating of existing Job
Description Sheets. Different PCsDA/CsDA are nominated for
preparation of Job Description Sheets & FAQs of various areas of
work as indicated below:
1. Pr. CDA (Pensions), Prayagraj Pension Sanction & Disbursement in
respect of all categories of Defence
Personnel & Civilians
2. Pr. CDA (WC) Chandigarh Works Accounting & Audit
3. Pr. CDA (CC), Lucknow Seller Payments
4. Pr.CDA (Border Roads), Delhi Cantt. Border Roads “Works & Seller
Payments”
5. Pr. CDA (SC), Pune Accounts
6. CDA (Army), Meerut Local Audit
7. CDA, Patna Personal Claims (TA/DA, LTC,
Medical Reimbursement, etc.)
8. CDA, Jabalpur Internal Audit
9. Pr. CDA (O), Pune Pay & Allowances (Army Officers)
10. Pr. CDA (Navy), Mumbai Pay & Allowances (Naval Personnel
& Civilians)
11. Pr. CDA (AF), New Delhi Pay & Allowances (Air Force
Personnel & Civilians)
12. Pr. CDA, Bengaluru Pay & Allowances (Army Personnel)
13. Pr. CDA (NC), Jammu Pay & Allowances (Civilians
including DAD)
14. Pr. CDA (R&D),New Delhi Pay & Allowances & Seller
Payments DRDO
15. CDA (CG & Navy), New Delhi Pay & Allowances (Coast Guard
Personnel)
948
16. CDA (CSD), Mumbai Pay & Allowances & Seller
Payments CSD
(ii) The under mentioned offices will be responsible for issuing

corrections to the departmental codes, manuals, etc., mentioned
below:
S. No. Code/ Manual Responsibility
1. Defence Audit Code PCDA (SC), Pune
2. Defence Account Code PCDA (SC), Pune
3. DAD Manual CGDA’s Office
4. Army Local Audit Manuals PCDA (SC), Pune
5. MES Accountants’ (UA) Manual CDA (Army), Meerut
6. MES Local Audit Manual CDA (Army), Meerut
7. Pension Payment Instructions PCDA (Pensions),Prayagraj
8. Navy Local Audit Manual PCDA (Navy), Mumbai
9. Air Force Local Audit Manual PCDA (Air Force), Dehradun
10. Coast Guard Manual PCDA (Navy), Mumbai
11. Accounts Offices (BR), Manual PCDA (BR) New Delhi
(erstwhile OM – XIII, Vol – II)
(iii) Examination of the suggestion received from various personnel

under the "Suggestions Scheme" and after scrutiny by Local
Suggestion Committee, project the approved suggestions to the
DAD HQrs for finalization.
(iv) Collection and supply of data and other particulars required by

Staff Inspection Unit, Department of Expenditure, Ministry of
Finance (SIU) and to render a yearly report to the C.G.D.A.
(v) The following areas of work are also dealt with:

a. Introduction of level jumping.
b. Achieving Total Quality Management (TQM) as per ISO
Standards
949
c. Re-organization of office layout for quicker flow of work and
diminution of avoidable movement of documents and
records
d. To study the organizational set-up in order to remove
bottlenecks, if any and to render half-yearly report to the
DAD HQrs
(vi) Rendition of half yearly report to the DAD HQrs indicating the
areas of O&M Studies conducted in the PCsDA/CsDA offices by
10th July and 10th January.
(vii) To render following reports to the office of DAD HQrs:

a. Quarterly Achievement Report to office of the CGDA by the
10th of the month following the quarter on the progress of the
personal targets fixed for the PCsDA/CsDA
b. Monthly report on Strengthening of Post Audit
c. Annual report on Implementation of Archival Policy
Resolution.
950
11.12. TRAINING GROUP
Training to IDAS Officers of the Defence Accounts Department is

imparted through Departmental Training Institutions as well as other
National Level Training Institutions like Lal Bahadur Shastri National
Academy of Administration, Mussoorie, Arun Jaitley National Institute
of Financial Management, Faridabad, Indian Institute of Public
Administration, New Delhi, National Defence College, New Delhi,
Defence Services Staff College, Wellington, etc.
The Departmental training is imparted through Centre for

Training & Development (CENTRAD), Delhi Cantt, National Academy
of Defence Financial Management, Pune, CDA (Regional Training
Centers) at Meerut, Lucknow, Kolkata, Pune and Bengaluru, Officers
Training Institute, Gurugram and Defence Pension Training Institute,
Prayagraj. Sufficient exposure is also given to IDAS Officers about the
Services and other Defence Organization including field attachment and
visits to establishments.
Other officers and staff are given orientation/refresher and other

trainings at various CDA (Regional Training Centers), OTI Gurugram &
DPTI, Prayagraj as well as on the job training given by the various
PCsDA/CsDA. The Training Division of the DAD HQrs i.e., CENTRAD
is functioning from October 1996 and has since been conducting training
programmes/seminars for Service Officers as well as senior officers of
the Defence Accounts Department.
Broadly, the following type of training and development activities

are envisaged: -
(a) Induction programme(s) for newly recruited employees at all

levels;
(b) Induction/ Orientation Courses for newly promoted Officers
(c) Orientation programmes/ Qualifying Courses for the

employees at the verge of promotion;
951
(d) In-service training programmes both internal as well
external
(i) Value added general courses.
(ii) EDP/IT Course.
(iii) Special job-related courses.
(e) Pre-examination training courses;
(f) Research and Development avenues;
(g) Workshops; and
(h) Seminars.
(i) Conduct of Defence Financial Management Courses for

Service Officers at Command HQ/ Service HQ Level.
952
11.13. TRAINING ADVISORY COMMITTEE (TAC)
As per the Defence Accounts Department’s Training &

Development Policy, 2019, the PCDA/CDA will be the member of the
Training Advisory Committee of the DAD training institute under
whose training jurisdiction the same has been kept by the HQrs office.
The charter of duties of the Training Advisory Committee (TAC) has
been envisaged broadly in the DAD’s Training & Development Policy,
2019, as amended from time to time.
953
11.14. CONTROLLERS TRAINING COMMITTEE (CTC)
In terms of the Defence Accounts Department Training &

Development Policy, 2019, as amended from time to time, with a view to
cater to the training needs of the offices of the PCsDA/CsDA and
equivalent level offices in the Department, the Controllers Training
Committee (CTC) are to be formed in every office, which shall be
responsible for:
(a) Organising in-house training activities.
(b) Projecting their needs to the respective CDA (RTC)/

DPTI/OTI.
(c) Providing faculty support and feedback available to the CDA

(RTC)/ DPTI/OTI.
(d) Headed by the Principal Controller/Controller with Addl.

CsDA/Joint CsDA, Group Officers & IDAS Heads of Sub-
Offices as members.
(e) The committee will deliberate and take decision on all matters
related to training in the Principal Controller’s/Controller’s
organisation, including identification of training needs, proper
and timely nomination of candidates to CDA (RTC) training
programmes, planning and conduct of in-house training
programmes, development of suitable training material,
evaluation of training interventions, suggestions for
improvements, etc.
(f) CTC would also identify areas where the coordination with
concerned CDA (RTC)/other agencies, is required.
(g) The committee would meet at least once in every Quarter

during a financial year (April to March).
954
(h) Addl. CDA/Joint CDA/Group Officer in every Principal
Controller’s/Controller’s office would be nominated as the
Training Manager for that organisation.
(i) Representatives of respective CDA (RTC) may be co-opted as

a member of CTC.
(j) CTC may maintain database of trainees, to be linked with PIS,

so that nomination of officers/ staff for a particular course/
training could be made without repetition and in turn will
help in imparting training to all the officers/ staff at least once
in a cycle of 3 years.
955
11.15. Training for newly recruited Auditors & Clerks
As per Para 5.1 of the DAD Training & Development Policy, 2019,
as amended from time to time, the salient points regarding training for
newly recruited Auditors & Clerks are as follows:
(a) Two weeks induction training (10 days i.e., 40 sessions) will be
conducted in the respective CDA (RTC)/ DPTI/ OTI.
(b) A qualifying test at the end of 2 weeks training will be

conducted by respective CDA (RTC)/ DPTI/ OTI and result
thereof will be communicated to the client PCsDA/CsDA.
(c) The probation period of Auditors and Clerks will be cleared

after completion of two weeks training in the respective CDA
(RTC)/ DPTI/ OTI.
(d)Six weeks induction training (30 days) will be conducted in

the respective PCDA/ CDA Office as in-house training - both
classroom training and on the job training.
(e) Valediction will also be conducted by respective PCDA/ CDA

Office after completion of 30 days in-house training at PCDA/
CDA level.
Note: Module of six weeks/ 30 days training schedule for newly recruited
Auditors/ Clerks to be conducted by PCsDA/ CsDA Offices is provided in
Chapter – 5 of DAD Training & Development Policy, 2019 as amended from
time to time.
956
11.16. INSPECTION GROUP
An Inspection Group may constitute a part of Systems Wing.
This group will conduct inspection of various sections in the Main

Office once a year and also of Sub-Offices according to the directions
given by the PCDA/CDA. The PCsDA/CsDA may also conduct
personal inspection, on a random sampling basis, of the sections of their
Main Office and of their Sub-Offices during tours.
957
11.17. OBJECTIVES
The objectives of inspection are: -
(i) To enable the PCDA/CDA to ensure that his ultimate

responsibility for the efficiency and effectiveness of his office
and sub-offices under his area, is adequately discharged;
(ii) To ensure that suitable remedial measures are taken to avoid

recurrence of omissions/lapses pointed out;
(iii) To suggest changes in procedures or introduce new

procedures as found necessary;
(iv) To see whether the procedures running within the

organization are necessary and sufficient to carry out the
organizational task;
(v) To ensure that procedures as prescribed are actually

implemented; and
(vi) To ascertain the degree of commitment of the top

management towards not only compliance but also continual
improvement.
958
11.18. FUNCTIONS
Functions of the Inspections group are: -
(i) To carry out, on behalf of the PCDA/CDA, periodical

inspection of various sections in Main Office and Sub-offices
under his jurisdiction.
(ii) To issue Inspection Reports to the concerned Sections/Sub-

Offices duly approved by PCDA/CDA/Addl. CDA/Joint
CDA.
(iii) To take follow up action to watch the rectification of

omissions /lapses pointed out in the Inspections reports.
(iv) To ensure that suitable remedial action is taken by

Sections/Sub-Offices to avoid recurrence of similar lapses in
future.
(v) To keep a record of Inspection of Sections/Sub-Offices

carried out.
(vi) To keep the Inspection Manual up-to-date in conformity

with revised orders/procedures issued from time to time.
(vii) To render a half yearly report by 31st October and 30th April
to the DAD HQrs indicating the details of inspection carried
out upto the end of the half year ending September and
March, the more important points noticed and the remedial
action taken.
(viii) To nominate Addl. CDA/Joint CDA or in his/her absence,

another IDAS officer as ‘Quality Manager’ in each office.
He/She shall formulate internal inspection schedules based
on peer audit. For this 3 or more teams from amongst the
staff of different sections would be formed for conducting
quality audit, headed by an SAO/GO level officer. For
959
example, if X,Y and Z are Quality Audit groups, then X may
inspect sections pertaining of Y. Y will inspect sections of Z
and Z may conduct inspections for X sections. Typically, the
inspection may be done on Quarterly basis but frequency
can be reduced for well-compliant sections and increased for
sections having poor compliance levels. Unresolved points of
these inspections will be put to the "Management
Committee" for review.
(xi) The Management Committee would be formed by Head of

the Organization. Quality Control Officer would be Ex-officio
Secretary and other members would be nominated by the
Head of the Organization. The following are the mandatory
agenda points for discussion in the management review
committee: -
(a) Results of inspection carried out and resolution of

issues brought out therein.
(b) Customer satisfaction and feedback based on question

& answer response, the number, type of complaints
received during the period and those resolved.
(c) "Corrective" action points. Corrective action means

only correction of objected issues but also to ensure
that these do not occur.
(d) Preventive Management issues: These arise from

experiences from other offices and their prevention in
the office in question.
960
11.19. SCOPE OF WORK
The Inspection of various Sections/ Sub-Offices is carried out on a

random sampling basis. The Inspection will aim at ascertaining, through
judicious and careful sampling of various items or work done in the
Section/Sub-Office, whether
(a) The prescribed processes of audit and accounting had

been followed correctly and efficiently.
(b) Recurring typical omissions/lapses of a particular type

of work persist.
(c) There is evidence of faulty supervision at various

levels.
(d) Any lacuna in the systems and procedure existing in a

particular Section/Sub-Offices.
The Inspection group will generally be guided by the Inspection

Drill issued by the DAD HQrs from time to time. The particular item of
work or document to be examined and the extent and manner of checks
will be decided at the discretion of PCDA/CDA/Addl. CDA/Joint CDA.
Any portion of the work selected for random sampling may, however,
be subjected to detailed and extensive scrutiny, but trivial details and
cases of isolated lapses which have no significance from the point of
view of overall performance of work need not be given undue
importance.
The inspection of the sub-offices of the PCDA/CDA should be

carried out preferably by the PCDA/CDA himself or by a senior enough
nominated officer for this purpose. The PCDA/CDA must ensure
periodical inspection of the sections in the Main Offices.
961
11.20. PREPARATION AND DISPOSAL OF
INSPECTION REPORTS
(a) The point arising out of Inspection should first be discussed by the
AAO with AAO, Officer-In-Charge of the Section/Sub-Office concerned,
subsequently the points may be discussed by the Sr.AO/AO of the
Inspection Team with the Sr. AO/ AO-In-charge /G.O.
Omissions/lapses noticed which cannot be settled at this level or items
for which action is pending with the Sections/Sub-Offices, will be
incorporated in the Inspection Report for submission to PCDA/CDA
/Addl. CDA/Joint CDA.
(b) The report will be prepared in two parts. Part I will contain
instance of grave irregularities, failure of audit/accounting system
which have wide repercussions, defalcation of cash or any other issue,
which in the opinion of the PCDA/CDA, may be of immediate interest/
or which merit immediate attention of the DAD HQrs/Ministry and Part
II will include all other procedural discrepancies/defects. The points
raised in Part I of the inspection report of major Sub-Offices, such as
Area Accounts Offices, DPDOs, AOs (R&D), PAOs (ORs), etc. will be
reported to the DAD HQrs, through special report after completion of
the inspection along with PCDA/CDA’s personal appreciation
indicating specifically measures taken/proposed to be taken to eliminate
the inadequacies/deficiencies.
(c) The Inspection Reports should be clear and precise. The report
should, as far as possible, refer to the relevant rules or orders violated.
(d) A summary of all important omissions/lapses and recurring

mistakes noticed will also be prepared and highlighted in the
forwarding memo of Inspection report to enable the PCDA/CDA to
have a correct appreciation of the overall situation and efficiency of the
work in the concerned Sections/Sub-Offices.
962
(e) Three copies of the Inspection Report, after approval by the
PCDA/CDA /Addl. CDA/Joint CDA, will be prepared and distributed
as follows: -
(i) Two copies will be sent to Group Officer-in-Charge of the

Section/Officer-in-Charge of Sub-Office inspected within
three weeks (15 working days) of completion of the
Inspection.
(ii) The Section/Sub Office concerned will furnish replies within

one month of receipt of the Inspection Report.
963
11.21. INSPECTION PROGRAMME
The Inspection Group will prepare a tentative programme for

Annual inspection of all the Sections in Main Office/Sub-Offices in the
financial year by April each year for approval of the PCDA/CDA /
Addl.CDA/Joint CDA. The programme will be so prepared so as to
ensure inspection of all the Sections of Main Office during the year and
of Sub- Offices during the period stipulated by the PCDA/CDA.
The PCsDA/CsDA would send their annual programmes for

inspection of their Sub-Offices/Sections in Main Office, to the DAD
HQrs. After completion of each inspection, the PCsDA/CsDA will send
an Executive Summary of the deficiencies noted during these
inspections to the DAD HQrs. These would be monitored by the
concerned Senior Joint CGsDA/Joint CGsDA in DAD HQrs. The
PCsDA/CsDA would report the follow-up action taken to rectify the
deficiencies once in a quarter to the DAD HQrs.
964
11.22. INSPECTION REPORTS OF DAD HQrs
The receipt of the Inspection Reports of the DAD HQrs and their
further processing will also be undertaken by the Inspection Group. For
this purpose, necessary liaison will be maintained with other
Wings/Sub-Offices to obtain replies regarding rectification of the
omissions/lapses pointed out and the consolidated progress reports will
be furnished to the DAD HQrs for finalization of the observation.
A monthly follow-up action report will be rendered to the DAD

HQrs, with the approval of the PCsDA/CsDA after receipt of Inspection
Report from DAD HQrs. The report will be addressed to the Senior Joint
CGDA/Joint CGDA concerned, by name. Further, PCsDA/CsDA will
be required to make a presentation to the DAD HQrs every quarter on
the items of Inspection Report not yet settled and reasons therefor, till
settlement of all items. This mechanism will ensure -
(a) Adequate promptness in addressing the deficiencies noted

during inspection; and
(b) Finding methods to resolve issues which, at present, remain

outstanding for years.
965
र ा लेखा महािनयं क, िद ली छावनी
के ािधकार से जारी
वष – 2022
Issued under the authority of:
Controller General of Defence Accounts,
Delhi Cantt.
Year – 2022

Dad Manual 2022

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र० ले० िव०

कायिनदश पिु तका

हम लेखांकन एवं िव ीय सेवाओं तथा लेखा परी ा स ं धी

र ा लेखा िवभाग .ाहक की संतुि' के िलये लेखा, भुगतान

The Defence Accounts Department is committed to render

The Defence Accounts Department (DAD), being one of the oldest

III PERSONNEL WING 3.1 – 3.33 258 – 319

IV ACCOUNTS WING 4.1 – 4.39 320 – 383

V PERSONNEL PAYMENT WING 5.1 – 5.75 384 – 581

VI SELLER PAYMENT WING 6.1 – 6.8 582 – 600

VII WORKS WING 7.1 – 7.42 601 – 693

VIII IFA WING 8.1 – 8.11 694 – 751

IX AUDIT WING 9.1 – 9.62 752 – 902

X INFORMATION TECHNOLOGY 10.1 – 10.11 903 – 931

119 Documents required/ Checklist for 2.53.3.2 188

120 Processing of proposals related to hiring 2.53.4 189

128 Allotment of funds to field offices in 2.55 197

129 Preparation of Monthly Expenditure Report 2.56 198

130 Preparation of Appropriation Accounts and 2.57 199

1 Objective 3.1 258

46 Report of Complaints Committee 3.28.4 309

52 General 3.33.1 319

1 ACCOUNTS & BUDGET Wing at 4.1 – 4.15 320 - 335

60 Procedure for levying penal interest 4.39 379 - 383

121 By longer route in same/ different modes 5.24.4 518

VI SELLER PAYMENT WING 6.1 – 6.8 582 – 600

1 Objective 6.1 582

1 Introductory 7.1 601

58 Fly Leaf Instructions for Register Annexure 684

59 Fly Leaf Instructions for Register of Annexure 685 - 686

1 Background and origin of the IFA System 8.1 694 - 697

1 AUDIT WING OF DAD HQrs 9.1 – 9.5 752 - 755

77 Subject headings/ format for Annexure’ 901

1 Objectives 10.1 903

1 SYSTEMS WING OF DAD HQrs

1.2. The Controller General of Defence Accounts is the Head of the

1.3. The Secretary (Defence Finance) is also the Chief Accounting

1.4. The Defence Accounts Department provides services to the

The headquarters of the Defence Accounts Department is located

1.5.2. Field Organization

The field organization of the Department has been structured by

1.5.3. IFA Setup

The Department has a well set-up system of Integrated Financial

1.5.4. Training Setup

The Centre for Training & Development (CENTRAD) in the DAD

The Area Accounts Offices are akin to the Principal

1.5.6. Pay Accounts Offices (Other Ranks)

Pay Accounts Offices are located at various stations across

1.5.7. Local Audit Offices, Assistant Local Audit Offices

Local Audit Officers and Regional Audit Officers (MES)function

1.5.8. Accounts Offices (Border Roads Task Forces)

Co-located with the offices of the Border Roads Organisation, the

The functions of AOs /AAOs (GE) of the Defence Accounts

(i) As an Accountant: They maintain certain accounts, in

(ii) As a primary Auditor: They apply certain preliminary checks to

1.5.10. Accounts Offices (DAD), Hindustan Aeronautics

These offices are responsible for exercising initial and cost

1.6. The structure of Defence Accounts Department has been given in

DAD Headquarters, Delhi Cantt. Field Organization

FUNCTIONAL PCDA/CDA PIFA/IFA

SUB-OFFICES (AS PER FUNCTIONAL NEEDS)

(i) To pay the dues of personnel, units and formations of Defence

(v) To grant pensionary (including commutation) awards as admissible