Rule 196 Disposals of Goods
(i) An item may be declared surplus or obsolete or
unserviceable if the same is of no use to the Ministry or
Department. The reasons for
declaring the item surplus or obsolete or unserviceable should be recorded
by the authority competent
to purchase the item.
(ii) The competent
authority may, at his discretion, constitute a committee at appropriate level
to declare
item(s) as surplus or
obsolete or unserviceable.
(iii) The book value,
guiding price and reserved price, which will be required while disposing of the
surplus
goods, should also be
worked out. In case where it is not possible to work out the book value, the
original
purchase price of the goods
in question may be utilised. A report of stores for disposal shall be prepared
in
Form GFR - 17.
(iv) In case an item
becomes unserviceable due to negligence, fraud or mischief on the part of a
Government
servant, responsibility for
the same should be fixed.
Rule 197 Modes of Disposal
(i) Surplus or obsolete or
unserviceable goods of assessed residual value above Rupees Two Lakh should be
disposed of by :
a) Obtaining bids through advertised tender or
b) Public auction.
(ii) For surplus or
obsolete or unserviceable goods with residual value less than Rupees Two Lakh,
the mode
of disposal will be
determined by the competent authority, keeping in view the necessity to avoid
accumulation
of such goods and
consequential blockage of space and, also, deterioration in value of goods to
be disposed
of.
(iii) Certain surplus or
obsolete or unserviceable goods such as expired medicines, food grain,
ammunition
etc., which are hazardous
or unfit for human consumption, should be disposed of or destroyed immediately
by adopting suitable mode
so as to avoid any health hazard and/or environmental pollution and also the
possibility of misuse of
such goods.
(iv) Surplus or obsolete or
unserviceable goods, equipment and documents, which involve security concerns
(e.g. currency, negotiable
instruments, receipt books, stamps, security press etc.) should be disposed of/
destroyed in an appropriate
manner to ensure compliance with rules relating to official secrets as well as
financial prudence.
Rule 198 Disposals through Advertised
Tender
(i) The broad steps to be
adopted for this purpose are as follows:
a) Preparation of bidding documents.
b) Invitation of tender for the surplus goods to be sold.
c) Opening of bids.
d) Analysis and evaluation of bids received.
e) Selection of highest responsive bidder.
f) Collection of sale value from the selected bidder.
g) Issue of sale release order to the selected bidder.
h) Release of the sold surplus goods to the selected bidder.
i) Return of bid security to the unsuccessful bidders
(ii) The important aspects
to be kept in view while disposing the goods through advertised tender are as
under:-
(a) The basic principle for sale of such goods through advertised
tender is ensuring transparency,
competition, fairness and elimination of discretion. Wide publicity
should be ensured of the sale plan
and the goods to be sold. All the required terms and conditions of
sale are to be incorporated in the
bidding document comprehensively in plain and simple language.
Applicability of taxes, as relevant,
should be clearly stated in the document.
(b) The bidding document should also indicate the location and
present condition of the goods to be sold so
that the bidders can inspect the
goods before bidding.
(c) The bidders should be asked to furnish bid security along with
their bids. The amount of bid security
should ordinarily be ten per cent. of the assessed or reserved
price of the goods. The exact bid security
amount should be indicated in the
bidding document.
(d) The bid of the highest acceptable responsive bidder should
normally be accepted. However, if the price offered by that bidder is not
acceptable, negotiation may be held only with that bidder. In case such negotiation
does not provide the desired result, the reasonable or acceptable price may be
counteroffered to the next highest responsive bidder(s).
(e) In case the total quantity to be disposed of cannot be taken up
by the highest acceptable bidder, the remaining quantity may be offered to the
next higher bidder(s) at the price offered by the highest
acceptable bidder.
(f) Full payment, i.e. the residual amount after adjusting the bid
security should be obtained from the
successful bidder before releasing the goods.
(g) In case the selected bidder does not show interest in lifting
the goods, the bid security should be
forfeited and other actions initiated including re-sale of the
goods in question at the risk and cost of the
defaulter, after obtaining legal advice.
(iii) Late bids i.e. bids
received after the specified date and time of receipt should not to be
considered.
Rule 199 Disposals through Auction
(i) A Ministry or
Department may undertake auction of goods to be disposed of either directly or
through
approved auctioneers.
(ii) The basic principles
to be followed here are similar to those applicable for disposal through
advertised
tender so as to ensure
transparency, competition, fairness and elimination of discretion. The auction
plan
including details of the
goods to be auctioned and their location, applicable terms and conditions of
the sale
etc. should be given wide
publicity in the same manner as is done in case of advertised tender.
(iii) While starting the
auction process, the condition and location of the goods to be auctioned,
applicable
terms and conditions of
sale etc., (as already indicated earlier while giving vide publicity for the
same),
should be announced again
for the benefit of the assembled bidders.
(iv) During the auction
process, acceptance or rejection of a bid should be announced immediately on
the
stroke of the hammer. If a
bid is accepted, earnest money (not less than twenty-five per cent. of the bid
value) should immediately
be taken on the spot from the successful bidder either in cash or in the form
of
Deposit-at-Call-Receipt
(DACR), drawn in favour of the Ministry or Department selling the goods. The
goods should be handed over
to the successful bidder only after receiving the balance payment.
(v) The composition of the
auction team will be decided by the competent authority. The team should
however
include an officer of the
Internal Finance Wing of the department.
Rule 200 Disposal at scrap value or by
other modes
If a Ministry or Department
is unable to sell any surplus or
Obsolete or unserviceable
item in spite of its attempts through advertised tender or auction, it may
dispose off the same at its scrap value with the approval of the competent
authority in consultation with Finance division. In case the Ministry or
Department is unable to sell the item even at its scrap value, it may adopt any
other mode of disposal including destruction of the item in an eco-friendly
manner.
Rule 201. A sale account should be prepared for goods
disposed of in Form GFR 18 duly signed by the officer who supervised the sale
or auction.
