Rule 212 - Asset Hire Charges | KartavyaDesk

Rule 212 of the General Financial Rules (GFR), 2017, deals with the situation where a government department rents out its fixed assets (like machinery, vehicles, or buildings) to local bodies (municipalities, panchayats), contractors, or other entities. The rule emphasizes the importance of maintaining a detailed record of these assets and ensuring that the agreed-upon rental or hire charges are collected regularly. Think of it like renting out your personal property; you'd want to keep track of what you're renting out and make sure you get paid on time.

The rule applies whenever a government department decides to lease out its assets. It affects the department responsible for managing those assets, the local bodies or contractors who are renting the assets, and ultimately, the taxpayers whose money funded the purchase of those assets. The charges to be recovered are calculated based on the historical cost of the asset, which is the original price the government paid for it. This ensures a fair and transparent process for determining rental fees.

In essence, Rule 212 promotes accountability and financial prudence when government assets are leased out. It ensures that the government receives appropriate compensation for the use of its assets, contributing to efficient resource management and preventing potential losses.