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Rule 156 - Piecemeal Purchases | KartavyaDesk

GFR 2017

Original Rule Text

Rule 156 Deleted. 25 Rule 157A demand for goods should not be divided into small quantities to make piecemeal purchases to avoid the necessity of obtaining the sanction of higher authority required with reference to the estimated value of the total demand

What This Means

Rule 156 of the General Financial Rules (GFR), 2017, has been deleted. However, it's important to understand the principle behind the *next* rule, Rule 157, which directly addresses a common issue: circumventing approval limits. Rule 157 essentially prohibits 'piecemeal purchases'. This means you can't artificially split a large procurement into smaller, separate purchases just to avoid getting the necessary approvals from higher-ups. The goal is to maintain financial accountability and prevent unauthorized spending. This rule applies to all government departments and agencies and affects everyone involved in the procurement process, from the initial requestor to the approving authority.

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

Key Points

  • •Rule 156 is deleted in GFR 2017.
  • •Rule 157 prohibits 'piecemeal purchases'.
  • •The purpose is to prevent circumventing approval limits.
  • •It applies to all government departments and agencies.
  • •It ensures financial accountability and prevents unauthorized spending.

Practical Example

The Department of Agriculture needs to purchase 100 laptops for its field officers. The estimated cost for all 100 laptops is ₹50,00,000. However, the department head, Mr. Sharma, only has the authority to approve purchases up to ₹20,00,000. To avoid seeking approval from the Secretary, Mr. Sharma decides to split the purchase into five separate orders of 20 laptops each, each costing ₹10,00,000. This is a violation of Rule 157. He should have sought the necessary approval for the entire ₹50,00,000 purchase from the appropriate authority.

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

Frequently Asked Questions

What happens if I accidentally make a piecemeal purchase?▼
If it's a genuine oversight, report it immediately to your superior. Transparency is key. Corrective action, such as seeking retrospective approval, may be necessary.
How do I determine if a purchase is considered 'piecemeal'?▼
Consider the overall requirement. If the items are related and intended for the same purpose, it's likely a single requirement that shouldn't be split to avoid approvals.
What are the consequences of violating Rule 157?▼
Violating financial rules can lead to disciplinary action, including warnings, suspensions, or even legal proceedings, depending on the severity and intent.
Does Rule 157 apply to services as well as goods?▼
Yes, the principle of avoiding piecemeal splitting of requirements applies to services as well. You cannot break up a service contract into smaller contracts to bypass approval limits.
Where can I find the official text of the General Financial Rules, 2017?▼
The official document is available on the website of the Ministry of Finance, Department of Expenditure.

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

As per the General Financial Rules (GFR), 2017, what is the current status of Rule 156?

Related Rules

Rule 271General Financial Rules 2017 (amended July 2024) - Rule 271 - Chapter 10Rule 109General Financial Rules 2017 (amended July 2024) - Rule 109Rule 146General Financial Rules 2017 (amended July 2024) - Rule 146 - Chapter 6Rule 169General Financial Rules 2017 (amended July 2024) - Rule 169 - Chapter 6Rule 215General Financial Rules 2017 (amended July 2024) - Rule 215 - Chapter 6

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