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Rule 127 - Cost Recovery | KartavyaDesk

FR/SR

Original Rule Text

F.R. 127. When an addition is made to a regular establishment on the condition that its cost, or a definite portion of its cost, shall be recovered from the persons for whose benefit the additional establishment is created, recoveries shall be made under the following rules: —

What This Means

FR 127 deals with situations where the government creates a new department or adds staff to an existing one, specifically because it benefits a particular group of people or an organization. The rule states that if the government sets up this 'additional establishment' with the understanding that the beneficiaries will pay for it (or a portion of it), then the government must recover those costs according to established rules. Think of it like a user-pays system within the government. This ensures that public funds aren't unfairly used to benefit a select few without them contributing to the expense.

This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.

Key Points

  • •Applies when a new government establishment or addition is created specifically to benefit a particular group.
  • •Requires the cost (or a defined portion) of the establishment to be recovered from the beneficiaries.
  • •Recoveries must be made according to established government rules and procedures.
  • •Ensures fairness and prevents undue burden on general taxpayers for specific benefits.
  • •The 'additional establishment' can refer to new staff, infrastructure, or resources.

Practical Example

The Ministry of Agriculture decides to establish a specialized extension service dedicated to supporting mango farmers in the Ratnagiri district. This new service, called the 'Ratnagiri Mango Support Unit' (RMSU), will provide expert advice, training, and market access assistance. The government estimates the RMSU will cost ₹50 lakhs per year. After consulting with the mango farmers' association, it's agreed that 60% of the cost (₹30 lakhs) will be recovered from the farmers through a small levy on mango sales. FR 127 dictates that the Ministry must follow established procedures for collecting this levy and ensuring the funds are used to offset the RMSU's expenses.

This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.

Frequently Asked Questions

What constitutes an 'additional establishment' under FR 127?▼
It can be a new department, a new section within an existing department, or simply an addition of staff or resources to cater to a specific group's needs.
Who decides the proportion of cost to be recovered?▼
The concerned ministry or department, in consultation with relevant stakeholders (like the beneficiaries), determines the recoverable portion, subject to government guidelines.
What happens if the beneficiaries fail to pay the agreed-upon amount?▼
The government has established procedures for dealing with defaults, which may include legal action or adjustments to the services provided.
Does FR 127 apply to all government services?▼
No, it specifically applies when a service is created or expanded with the explicit understanding that the beneficiaries will contribute to its cost.
Where can I find the 'established rules' for making recoveries mentioned in FR 127?▼
These rules are typically outlined in departmental manuals, treasury rules, and other relevant financial regulations specific to the government entity involved.

This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.

Test Your Knowledge

Question 1 of 3

According to F.R. 127, when is the cost of an addition to a regular establishment recovered from the beneficiaries?

Related Rules

Rule 36Fundamental Rules & Supplementary Rules - Rule 36 - Chapter IIRule 10Fundamental Rules & Supplementary Rules - Rule 10 - Chapter IIRule 1Fundamental Rules & Supplementary Rules - Rule 1Rule 114Fundamental Rules & Supplementary Rules - Rule 114 - Chapter VIIRule 113Fundamental Rules & Supplementary Rules - Rule 113 - Chapter VII

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