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Rule 310 - Land Transfers | KartavyaDesk

GFR 2017

Original Rule Text

Rule 310 (4) The allotment of land to, and recovery of cost of buildings from the Public Sector Undertakings shall be at 'market value' as defined in paragraph - 2 of Appendix - 7. Rule 310 (5) The transfer of land and building between the Union and State Governments shall be regulated by the provisions of Articles 294, 295, 298 and299 of the Constitution and subsidiary instructions issued by the Union Government which are reproduced as Appendix - 7.

What This Means

Rule 310 of the General Financial Rules (GFR) 2017 deals with the transfer of land and buildings involving Public Sector Undertakings (PSUs) and between the Union and State Governments. Specifically, sub-rule (4) states that when land is allotted to a PSU, the cost recovered for buildings on that land should be based on the 'market value'. This 'market value' is defined in Appendix 7, paragraph 2 of the GFR. This ensures fair pricing and prevents undervaluation of government assets.

Sub-rule (5) addresses the transfer of land and buildings between the central (Union) and state governments. These transfers are governed by specific articles of the Indian Constitution (Articles 294, 295, 298, and 299) and any additional instructions issued by the Union Government, which are also detailed in Appendix 7. This ensures that such transfers are conducted legally and constitutionally.

In essence, Rule 310 provides guidelines for financial transactions related to land and buildings involving PSUs and different levels of government, ensuring transparency and adherence to constitutional provisions.

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

Key Points

  • •Land allotment to PSUs requires cost recovery for buildings at 'market value' (as defined in Appendix 7).
  • •Transfers between Union and State Governments are governed by Articles 294, 295, 298, and 299 of the Constitution.
  • •Appendix 7 of GFR 2017 contains crucial definitions and subsidiary instructions for these transactions.
  • •Rule 310 aims to ensure fair pricing and legal compliance in land and building transfers.
  • •Government employees involved in land and building transactions must be familiar with this rule.

Practical Example

Bharat Electronics Limited (BEL), a PSU, is allotted land by the Ministry of Defence to build a new research facility. According to Rule 310(4), the cost of existing structures on the land that BEL will use must be recovered at 'market value'. An independent valuation committee assesses the market value of the existing buildings to be ₹5 crore, following the guidelines in Appendix 7. BEL is then required to pay ₹5 crore to the Ministry of Defence for the buildings.

Later, the Union Government decides to transfer a government-owned building in Lucknow to the Uttar Pradesh State Government for use as a state government office. This transfer is governed by Articles 294, 295, 298, and 299 of the Constitution, as stated in Rule 310(5). The Union Government issues specific instructions, as outlined in Appendix 7, regarding the transfer process, documentation, and any associated financial adjustments.

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

Frequently Asked Questions

Where can I find the definition of 'market value' mentioned in Rule 310(4)?▼
The definition of 'market value' is provided in paragraph 2 of Appendix 7 of the General Financial Rules (GFR) 2017.
What happens if there is a dispute regarding the 'market value' assessment?▼
The process for resolving disputes related to valuation should be outlined in the relevant government orders or guidelines. Generally, an independent valuation committee or a higher authority may be involved in resolving such disputes.
Are there any exceptions to the application of Rule 310?▼
While Rule 310 provides a general framework, specific cases may have exceptions based on government policy or specific agreements. These exceptions should be clearly documented and justified.
What are the key constitutional articles mentioned in Rule 310(5) and what do they cover?▼
Articles 294, 295, 298, and 299 of the Constitution deal with succession to property, assets, rights, liabilities, and obligations, the power to carry on trade, business, and acquire property, and contracts made by the Union or States, respectively.
Where can I find the subsidiary instructions issued by the Union Government mentioned in Rule 310(5)?▼
These instructions are reproduced in Appendix 7 of the General Financial Rules (GFR) 2017.

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 310(4) of GFR 2017, when land is allotted to a Public Sector Undertaking (PSU), the cost recovery for buildings on that land should be based on:

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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