Rule 12 — General Financial Rules 2017 (amended July 2024) - Rule 12
Original Rule Text
Rule 12
Amounts due to Government shall not be
left
outstanding
without
sufficient
reasons. Where such amounts appear to
be irrecoverable, the orders of the
competent authority shall be obtained for
their adjustment.
What This Means
This rule is about making sure that any money owed to the government is properly collected and accounted for. Simply put, if someone owes money to the government – whether it's a fee, a penalty, an overpayment, or any other due – government officers cannot just ignore it or let it remain uncollected without a very good reason. The expectation is that all efforts will be made to recover these amounts.
If, after making all reasonable attempts, it becomes clear that a particular amount cannot be recovered (meaning it appears 'irrecoverable'), an officer cannot simply write it off on their own. Instead, they must follow a formal process. This involves getting official permission from a senior officer or a specific body that has the authority to approve such adjustments. This ensures that every decision to not collect government money is properly reviewed, justified, and approved at the appropriate level, maintaining financial accountability.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1All money owed to the government must be actively pursued for collection.
- 2Outstanding government dues cannot be left uncollected without valid and documented reasons.
- 3If an amount appears impossible to recover, it cannot be simply abandoned by the officer responsible.
- 4Formal approval from a designated 'competent authority' is mandatory before any irrecoverable government dues can be adjusted or written off.
- 5This rule ensures strict financial discipline and accountability in managing government funds.
Practical Example
Imagine Mr. Suresh, an Accounts Officer in the Department of Urban Development. His department had mistakenly overpaid a contractor, M/s Green Builders, by ₹75,000 for a landscaping project. Mr. Suresh initially sent several reminders and made phone calls to recover the overpaid amount. However, M/s Green Builders declared bankruptcy and ceased operations, making direct recovery impossible.
Under Rule 12, Mr. Suresh cannot just close the file and forget about the ₹75,000. He must document all his recovery efforts, including copies of letters sent and records of phone calls. He then prepares a detailed report explaining why the amount is now considered irrecoverable. This report is submitted to the Joint Secretary (Finance), who is the 'competent authority' in this case. The Joint Secretary reviews the documentation, confirms that all reasonable efforts were made, and then issues a formal order to write off the ₹75,000 as an irrecoverable due, thereby officially adjusting the government's accounts.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
▼
▼
▼
▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.