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Para 10.10 - Delivery of Sold Goods | KartavyaDesk

Goods Manual

Original Rule Text

10.10. Delivery of Sold Material 10.10.1 Free Delivery Time and Ground Rent Delivery must be taken within 30 (thirty) calendar days (called free delivery period) from the date of the acceptance letter/sale order (excluding the date of issue of acceptance letter/sale order). The delivery of material will be given only after the realisation of the demand draft/pay order. If the purchaser is not able to lift the material within the free delivery period, he may request an extension. Such extensions are generally granted after levying a ground rent @ 1/2 (half) per cent of the sale value per day. But, in some genuine cases, the levy of ground rent may be waived. An accounts representative will be responsible for seeing that when the ground rent has become due, it is recovered by the stockholder before delivery of the stores. The amount realised as ground rent should be noted in the issue note by the stockholder and certified by the stock verifier. The stockholder will be responsible for remitting the cash to the cashier and obtaining a receipt.

What This Means

Para 10.10 of the Manual for Procurement of Goods, 2017, deals with the delivery of materials that have been sold by the government. Essentially, it sets a timeframe for the buyer to collect the purchased goods after the sale is finalized. This rule ensures that government warehouses aren't indefinitely storing sold items and that the process is financially sound. It applies to all government departments and agencies involved in selling goods, as well as the individuals or organizations purchasing those goods.

The rule states that the buyer has 30 calendar days (the 'free delivery period') from the date of the acceptance letter or sale order to take delivery of the material. This excludes the date the acceptance letter/sale order was issued. If the buyer can't collect the goods within this period, they can request an extension. However, this extension usually comes with a 'ground rent,' which is a fee for storing the goods beyond the free period. The accounts representative ensures this rent is collected. In exceptional cases, this ground rent can be waived.

Finally, the rule outlines the responsibilities of the stockholder (the person in charge of the inventory). They must ensure that any ground rent due is collected before the goods are released. They also need to record the ground rent collected on the issue note and get it certified by the stock verifier. The stockholder is then responsible for depositing the collected rent with the cashier and obtaining a receipt, ensuring proper accounting of the transaction.

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

Key Points

  • •Buyers have 30 calendar days (free delivery period) to collect purchased goods after the acceptance letter/sale order date.
  • •Extensions to the free delivery period may be granted, but usually incur a ground rent of 0.5% of the sale value per day.
  • •Ground rent may be waived in genuine cases.
  • •The accounts representative is responsible for ensuring ground rent is collected.
  • •The stockholder is responsible for collecting ground rent, documenting it, and depositing it with the cashier.

Practical Example

The Department of Agriculture sold surplus fertilizer to a local farmer, Mr. Sharma, for ₹50,000. The acceptance letter was issued on July 1st, 2024. Mr. Sharma had until July 31st, 2024, to collect the fertilizer without incurring any ground rent.

However, due to unforeseen circumstances, Mr. Sharma couldn't collect the fertilizer until August 15th, 2024. He requested an extension. The department granted the extension but levied a ground rent of 0.5% per day for the 15 days beyond the free delivery period. This amounted to ₹375 per day (0.005 * ₹50,000). The total ground rent was ₹5,625 (₹375 * 15). The stockholder, Mr. Verma, ensured that Mr. Sharma paid the ₹5,625 before releasing the fertilizer. Mr. Verma then recorded the ground rent on the issue note, had it certified by the stock verifier, and deposited the cash with the cashier, obtaining a receipt.

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 the buyer doesn't collect the material even after the extended period and paying ground rent?▼
The manual doesn't explicitly state the procedure in this scenario. However, the department would likely issue a notice to the buyer. If the material is still not collected, the department may have the right to re-auction or dispose of the material, potentially forfeiting the buyer's initial payment and ground rent.
Who decides whether to waive the ground rent in genuine cases?▼
The authority to waive ground rent usually rests with a higher-level officer within the department, such as the Head of the Department or a designated committee. The decision would be based on the specific circumstances presented by the buyer and documented evidence supporting their claim.
Is the 30-day free delivery period negotiable?▼
Generally, the 30-day free delivery period is not negotiable. It's a standard clause in the sale agreement. However, in exceptional circumstances, a department may consider a longer period, but this would need to be explicitly stated in the sale agreement itself.
What documentation is required to request an extension of the free delivery period?▼
The buyer should submit a written request to the concerned department, clearly stating the reasons for needing an extension and providing any supporting documentation (e.g., medical certificate, transportation issues, etc.).
Does this rule apply to all types of goods sold by the government?▼
Yes, Para 10.10 of the Manual for Procurement of Goods, 2017, applies to all types of goods sold by the government unless specifically exempted by another rule or notification.

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 Para 10.10 of the Manual for Procurement of Goods, 2017, what is the standard free delivery period allowed to a purchaser for lifting sold material from the date of acceptance letter/sale order (excluding the date of issue)?

Related Rules

Para 9.4Manual for Procurement of Goods, 2024 - Para 9.4 - Chapter 9Para 9.5.5Manual for Procurement of Goods, 2024 - Para 9.5.5 - Chapter 9Para 1.8.2Manual for Procurement of Goods, 2024 - Para 1.8.2 - Chapter 1Para 2.2.2Manual for Procurement of Goods, 2024 - Para 2.2.2 - Chapter 2Para 2.2Manual for Procurement of Goods, 2024 - Para 2.2 - Chapter 2

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