Para 7.5 — MSO (A&E)
Original Rule Text
7.5 Credit for the earnest money deposits made in a treasury of State X in favour of a Departmental office of State Y, should be passed on to the latter through the outward settlement Account. On receipt of the credit the particulars should be entered by the Accountant General of State Y in a separate Register of Receipts of Deposits (to be maintained by him for such credits). The Accountant General of State Y should adjust it finally in his books and intimate the fact of receipt of the credit to the Departmental Officers concerned. Whenever a repayment is to be made, the departmental officer concerned of State Y should endorse the refund order on the original receipt granted by the Treasury Officer and send it to his Accountant General who after verifying the signature of the drawing officer and the credit in the Register of Receipts of Deposit or Statement of Lapsed Deposits, will arrange for payment to the party concerned by obtaining a Reserve Bank of India Government Draft. This procedure will do away with the repayment in State X and thus eliminate the passing of the debit to the Accountant General of State Y.
- PERSONAL DEPOSITS
What This Means
When earnest money is deposited in Treasury of State X but the deposit is meant for a department in State Y, the credit is transferred through the outward settlement account. The AG of State Y records it in a separate Register of Receipts and adjusts it in his books. For refunds, the departmental officer in State Y endorses the refund order on the original receipt and sends it to the AG of State Y, who verifies it and arranges payment via an RBI draft — avoiding the need for any refund transaction in State X.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Inter-state earnest money deposits are transferred through the settlement account
- 2AG of receiving state maintains a separate Register of Receipts for such deposits
- 3Refunds are handled entirely by the AG of State Y, eliminating inter-state refund complications
- 4Payment to the claimant is made via RBI Government Draft
- 5Departmental officer endorses the refund order on the original receipt
Practical Example
A contractor in Rajasthan (State X) deposits Rs 50,000 as earnest money in a Jaipur treasury for a road project tender in Gujarat (State Y). The Rajasthan AG transfers this credit to the Gujarat AG through the settlement account. When the contractor is not awarded the contract, the Gujarat PWD officer endorses a refund order on the original receipt. The Gujarat AG verifies the deposit in the Register and arranges an RBI draft for Rs 50,000 payable to the contractor.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
Why is the refund handled by State Y instead of State X?▼
What document does the contractor need for a refund?▼
How is the payment made to the contractor?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.