Rule 217 - Asset Disposal | KartavyaDesk
Original Rule Text
(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 GFR10. (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. (v) Sale of Hazardous waste/Scrap Batteries/Electronic waste: Scrap lots comprising of hazardous waste, batteries etc. shall be sold keeping in view the extant guidelines of Ministry of Environment & Forest. Prospective bidders of such lots of hazardous waste/scrap batteries/ e-waste should be in possession of registration, valid on the date of e-Auction and on the date of delivery, as recycler/ preprocessor agency.
What This Means
Rule 217 of the General Financial Rules (GFR), 2017, deals with how government departments should handle the disposal of surplus or unserviceable goods. Before selling off these items, it's crucial to determine their value. This involves figuring out the book value (accounting value), guiding price (market value), and a reserved price (minimum acceptable price). If the book value is unavailable, the original purchase price can be used as a reference. All details about the items for disposal must be documented in a 'Report of Stores for Disposal' using Form GFR-10.
Furthermore, if an item becomes unusable due to negligence, fraud, or misconduct by a government employee, that employee must be held accountable. Special attention is given to hazardous waste, scrap batteries, and electronic waste. Their disposal must strictly adhere to the guidelines set by the Ministry of Environment & Forest. Only recyclers or preprocessor agencies with valid registration on the date of the e-auction and delivery can bid on these items. This rule ensures transparency, accountability, and environmentally responsible disposal of government assets.
This rule affects all government departments and employees involved in managing and disposing of government assets. It ensures a standardized and responsible approach to asset disposal, minimizing financial losses and environmental risks.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- •Determine book value, guiding price, and reserved price before disposing of surplus goods.
- •Use original purchase price if book value is unavailable.
- •Document disposal items in Form GFR-10.
- •Fix responsibility for unserviceable items caused by negligence, fraud, or mischief.
- •Dispose of hazardous waste according to Ministry of Environment & Forest guidelines; bidders must have valid recycler/preprocessor registration.
Practical Example
The Department of Irrigation discovers it has 50 obsolete water pumps in its warehouse. Before auctioning them off, Mr. Sharma, the storekeeper, needs to determine their value. He finds the original purchase invoices, but the book value is unavailable due to outdated accounting records. He uses the original purchase price as a reference. He also researches current market prices for similar used pumps to establish a guiding price. Finally, he sets a reserved price below which the pumps will not be sold. All this information is recorded in Form GFR-10.
Later, it's discovered that one of the pumps became unserviceable because a junior engineer, Ms. Verma, improperly maintained it. An inquiry is conducted, and Ms. Verma is held responsible for the damage. When disposing of old computer monitors, the department ensures that only recyclers with valid e-waste processing licenses are allowed to bid in the e-auction, as per the Ministry of Environment & Forest guidelines.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
What is Form GFR-10, and where can I find it?▼
What happens if we can't determine the original purchase price of an item?▼
Who is responsible for ensuring compliance with the Ministry of Environment & Forest guidelines for hazardous waste disposal?▼
Can we donate unserviceable items instead of selling them?▼
What constitutes 'negligence' that would lead to an employee being held responsible?▼
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 Rule 217 of GFR, 2017, which form is used to prepare a report of stores for disposal?
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