THE KARNATAKA FINANCIAL CODE, 1958

NOTIFICATION
No. FD I COD 58, dated 1st April 1958
In exercise of the powers conferred by clause (2) of
Article 283 of the Constitution of India and in supersession of
the Rules contained in the Mysore Financial Code, Volume 1
(1952 Edition) with Appendices and Forms as contained in the
Mysore Civil Account Code, Volume 1 (1927 Edition) as
amended, other than the rules relating to contingent expenditure,
the Governor of Karnataka, hereby makes the following rules,
namely:-
CHAPTER - I
TITLE AND DEFINITIONS
1. (1) These rules may be called the Karnataka Financial
Code, 1958.
(2) They shall come into force on the First day of July
1958.
1-A. If the Government considers it necessary or expedient
so to do for avoiding any hardship or removing any difficulty
that may arise as a result of the application of these rules, it
may subject to such restrictions and conditions, if any, as it may
think fit to impose, dispense with or relax the provisions of any
of these rules in any case or class of cases.
2. In this Code, unless the context requires otherwise the
following words and phrases have the meanings hereby assigned
to them:-
2

(1) “Accountant General” means the head of the Office of

Audit and Accounts who maintains the accounts of the State
and exercise Audit functions in relation to those accounts on
behalf of the Government.
(2) “Abstract Bill”.-A bill without details either for
contingent or travelling allowance expenditure, paid at a treasury
without the scrutiny and countersignature of a controlling
authority, to save delay in the discharge of a claim.
(3) “Budget Calendar” means the calendar fixed by
Government for the preparation of the budget estimates and for
completion of the State Budget of the year (Refer to the Budget
Manual).
(4) “Budget Estimates” are the detailed estimates of the
receipts and expenditure of a financial year. (Refer to the Budget
Manual).
(5) “Cash Order” means an order issued by a Treasury
Officer for private remittances on another Treasury, of a specified
amount to a specified person.
(6) “Cheque” means a written order (not expressed to be
payable otherwise than on demand) addressed by a person called
the “drawer” to a Bank or Treasury to pay a specified sum of
money to himself or to a third party known as the “payee” and
includes a demand draft drawn on any specified Bank.
(7) “Controlling Authority” means the Head of a
department or other departmental officer who is entrusted with
the responsibility of controlling the incurring of expenditure
and/or the collection of revenue by the subordinate authorities
of a department.
3

(8) “Disbursing Officer” means a Government servant who

draws moneys from the Treasury on bills or cheques, but
excludes a Government servant who is not the Head of an
office and draws only his own pay and allowances from the
treasury.
(9) “Financial Year” means the year beginning with the 1
st April and ending with the following 31st March.
(10) “Government” means the Government of Karnataka.
(11) “Government Servant” means any person serving in
connection with the affairs of the Government, whether
remunerated by salary or not, and includes every person who is
authorised to receive, keep, carry or spend moneys on behalf of
Government.
(12) "Head of a Department" means any authority specially
ordered by the Government to be the Head of a Department
(vide Appendix 1).
(13) “Inevitable Payments” means money which is
indisputably payable.
(14) “Inspecting Officer” means a Government servant who
is appointed solely or mainly for performing specified duties of
inspection which involve touring the State and does not include
a Government servant who performs inspection duties
occasionally as part of his general supervision of his
subordinates.
(15) “Lapse of Grant” means the expiry at the close of the
financial year of the sanctioned grant not utilised for expenditure
or the unexpended portion of the sanctioned grant, except grants
which are specially exempted from the rule of lapse (Refer to
the Budget Manual).
4

(16) “Local Body” means a District Board, a Municipal

Council, Village Panchayat, Trust Board, etc.
(17) “Local Fund” means:-
(1) the revenues administered by Bodies which come under
the control of Government by law or rule having the force of
law whether in regard to the proceedings generally or to specific
matters such as the sanctioning of their budgets, sanction to
the creation or filling up of particulars appointments. the
encashment of leave, pensioner similar rules; and
(2) the revenues of any body which may be specially
notified by the Government of Karnataka as such.
(18) “Major Head” means a main head of account for the
purpose of recording and classifying receipts and disbursements
of moneys that enter into the accounts of Government (Refer to
the Budget Manual).
(19) “Miscellaneous Expenditure” means all expenditure
other than that falling under pay and allowances, contingencies
and works.
(20) “Proposition Statement” means a statement to be
submitted to Government setting forth the financial effect of a
proposal for revision of establishments.
(21) “Re-appropriation” means the transfer of funds from
one head of account to another. (Refer to the Budget Manual).
(22) “Receipts of Government” means and includes all
moneys received by a Government servant on behalf of the
Government, not only the proceeds of taxation and the yield of
ordinary revenue but also capital receipts, such as, the proceeds
of sales of land; the proceeds of borrowing operations unfounded
5

debt, and such receipts of a banking or deposit nature as by

virtue of any statutory provision or of any general or special
executive order of the Government have to be held in the custody
of the Government.
(23) “Revised Estimates”-Refer to the Budget Manual.
(24) “Surrender of Grants” means the formal surrender of
grants which are not likely to be utilised before the expiry of
the year to be placed at the disposal of Government (Refer to
the Budget Manual).
(25) “Treasury” means any Treasury in the State and includes
a Taluk Treasury.
(26) “Treasury Officer” means the officer in immediate
executive charge of a Treasury.
(27) “Unit of Appropriation” means the lowest account
head under which the Government place a specific appropriation
at the disposal of the spending authority concerned (Refer to
the Budget Manual).
(28) “Ways and Means Estimates” -Refer to the Budget
Manual.
6

CHAPTER II
GENERAL PRINCIPLES AND RULES
Duties as regards accounts
3. Every Government servant should see that proper
accounts are maintained for all Government financial
transactions with which he is concerned, and render accurately
and promptly all such accounts and returns relating to them as
may have been prescribed by Government, the Accountant
General, or the competent departmental authorities.
Every Government servant should realise that the
correct maintenance of his accounts is as important a part of his
duties as his executive work. A knowledge of the accounts and
financial rules relevant to his duties is a necessary part of the
equipment of every Government servant through whose hands
Government money passes, and he is expected to be sufficiently
familiar with financial and account rules to keep an adequate
check over the clerks or accountants in the office under his
control. He should check the accounts as frequently as possible
in order to see that his subordinates do not commit fraud,
misappropriation or any other irregularity. The Govern- ment
will hold him personally responsible for any loss that may be
found to be due to any neglect of the duties laid upon him by
the provisions of this Code. The fact that a Government servant
has been misled or deceived by a subordinate, will in no way
mitigate his personal responsibility, since every Government
servant should be familiar with the financial rules laid down by
the Government and exercise a specially strict and close control
over his subordinate in regard to the use of public funds and the
maintenance of proper accounts.
7

RECEIPT
4. (a) All transactions to which any Government servant
in his official capacity is a party must, without any reservation,
be brought to account, and all moneys received should be paid
in full without undue delay in any case within two days, into
a Government treasury, to be credited to the appropriate account
and made part of the general treasury balance.
Note 1.- If in exceptional circumstances, the time limit
of two days cannot be observed, the Heads of Departments
should by specific order, extend the said time limit up to seven
days. Unless the time limit is so extended by a specific order,
by the Head of Department, the time limit of two days will
operate.
Exception.- The provisions regarding the time limit
for crediting Government money contained in clause (a) of this
Article are not applicable to remittances like Land Revenue for
which specific rules exist in the ‘Department Manuals’.
Note 2.- The following procedure shall be observed if
a Government officer receives in his official capacity, moneys
which are not Government dues:-
(i) All moneys received by or deposited with any officer,
other than Revenues or Public money raised or received by
Government, shall be paid into the public account ;
(ii) All moneys received by or deposited with any court to
the credit of any cause, matter, account or persons shall also be
paid into the public account;
(iii) Moneys not being Government dues received by a
Government servant in his official capacity, i.e., Poor Fund in
Hospitals, Sports Fund in Educational Institution, etc., shall be
8

deposited in the Savings Bank of the Karnataka Government/

Post Office Savings Bank.
(iv) The Head of Account to which such moneys shall be
credited and the withdrawal of moneys therefrom shall be
governed by the relevant provisions of the Account Code,
Volumes I and II, the Karnataka Financial Code, ‘The Karnataka
Treasury Code or such other general or special orders as may
be issued in this behalf.
But accounts of such transactions should be kept
distinct from those pertaining to State Funds.
DEPARTMENTAL RECEIPTS
1
[(b) Government dues paid in the form of cash, cheques,
bank drafts, postal orders and money orders should be accepted
by the Departmental Officers. The following procedure should
be observed in accepting the Government dues.
(i) Acceptance of Government dues in cash at the
Departmental Counters:-
Government dues tendered in cash may be accepted by
Departmental Officers in their office upto an amount not
exceeding Rs. 250/- in each case in Bangalore City and an
amount not exceeding Rs. 100/- in each case in places other
than Bangalore City. Wherever Departmental regulations permit
acceptance of Government dues tendered in cash, exceeding
Rs. 100/- in each case, the regulations will continue to apply.
The Departmental authorities should receive such remittance
across their counters upto one hour before the closing of the
office hours. In offices where payments in cash are already

1. Substituted by Notn. No. FD 10 TCE 85 dt. 5-2-1986 w.e.f.

7-4-1977.
9

being accepted beyond such hour, the existing arrangement may

continue.
(ii) Acceptance of Cheques and Bank Drafts drawn on
local Banks:-
Cheques or Bank Drafts drawn on local Banks in
payment of Government dues may be accepted and instructions
contained in Article 9 of Karnataka Financial Code will continue
to be allowed. Cheques and Drafts should be treated as cash
and entered in the Cash Book of Departmental Officers like
other cash transactions.
(iii) Acceptance of Money Orders and Postal Orders:-
a) When the Departmental Officers are in account with a
Bank Treasury.
(i) Money Orders:
For all money orders payable to the same Departmental
Officer, the post office will prepare each day a list in triplicate
(showing the name and address of the remitter, the amount) and
present to the Departmental Officer, through a Post man, a list
in duplicate together with the listed Money Orders. The
Departmental Officer will scrutinise the list to ensure that they
are intended for him and the totals are correct and return the
original to the Post Office duly corrected if necessary and with
a request to pay the amount by a Crossed Cheque. The Post
Offices will issue a crossed cheque and send it along with the
accepted list and money orders after carrying out corrections in
his copy of the list. The Departmental Officer will acknowledge
the receipt of the Cheque in the original copy of the list, detach
the Money Order coupons, sign the Money Order
acknowledgements and return the list and Money Orders.
10

Thereafter the Cheque will be sent to the Bank along

with the Challan duly filled in for credit to the appropriate
Head of Account.
(ii) Postal Orders:-
On receipt of Postal Orders the Departmental Officers
should prepare a list in triplicate and send to the Bank the
Postal Orders together with first and second copies of the list
and the necessary challan for credit to the appropriate Head of
Account.
(iv) When the Departmental Officers are in account with
the Non Bank Treasury:-
a) Money Orders:-
The procedure to be followed will be the same as in
the case of a Bank Treasury except that the post office will pay
the Money Orders by a Treasury voucher instead of by a Cheque
which will be presented by the Departmental Officer at the
Treasury for adjustment by credit to the Head of Account as
indicated in the Challan.
b) Postal Orders:-
The procedure to be followed will be the same as in
the case of a Bank Treasury except that the postal orders with
the list in triplicate alongwith a Challan duly noting the
appropriate Head of Account is presented to the Post Offices.
The Post Master after necessary check and verification will
issue a Treasury Voucher for the amount of the Postal Orders
and send it alongwith the copy of the list to the Treasury Officer
for adjustment and return one copy of the list duly indicating
thereon the voucher number and date of the Treasury Voucher.
11

(v) When the Post Office is not in account with

Treasury/ Bank:-
In place where the Post Offices are not having account
either with the Treasury or Bank the Departmental Officers
may receive the dues remitted by Postal Orders and Money
Orders and will be guided by the normal rules.
These should be treated as cash and accounted for. in
the Departmental Cash Books.
5. The appropriation of departmental receipts to
departmental expenditure, except when specially authorised, is
strictly prohibited.
This rule is relaxed :-
(a) In regard to money received on account of the service
of summons, and diet money of witnesses in Civil cases; and
(b) In cases covered by the rules in other authorised Codes.
(c) In regard to money received as daily collections at the
Legislator’s Home, Bangalore, for the purpose of refunding the
advance of lodging charges to the occupants at the time of
vacating the rooms in the Legislator’s Home.
6. A Government Officer receiving money on behalf of
Government must give the payer a receipt.
Note 1.- This rule applies also to moneys received by
Postal Money Orders. In such cases the receipts should be
despatched to the remitters by post.
Note 2.- Form K.F.C. I will be used for the purpose.
Educational Institutions will use Form K.F.C.-1A. Use of
manuscript forms is strictly prohibited.
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Note 3.- Only Heads of Offices or Institutions are

authorised to sign these receipts. With the sanction of
Government Officers subordinate to them may also be authorised
to sign such receipts on behalf of the concerned Heads of Offices
or Institutions.
Personal Assistants to the Superintending Engineers of
Circles in the Public Works and Electricity Department are
authorised to sign the receipts.
Note 4.- Heads of offices or Institutions should keep a
complete account of the receipt books that they have received
and should be able to produce them always, used or unused.
Ordinarily more than one book should not be used at one and
the same time, and a new book should be brought into use only
after the old one is exhausted. The Stock Register of Receipt
Books should show the date on which a book was brought to
use and the date on which it was completed. Before a receipt
book is brought into use, the number of forms contained therein
shall be counted and the result recorded in a conspicuous place
in the book over the signature of the Government officer in
charge of the book. Counterfoils of used receipt books shall be
kept in his personal custody. The receipt books must be kept
under lock and key in the personal custody of the officer
authorised to sign the receipt on behalf of Government.
Note 5.-The money received should be brought into
the Cash Book immediately, the receipt number being noted
therein.
Note 6.-The required printed receipt books (machine
numbered) should be obtained by the Head of each Department
or other controlling officer and distributed to all subordinate
officers a stock account thereof being maintained showing the
13

number of the books (and number of forms contained in each)

received by him and issued to each individual officer.
Note 7.-At the time of inspections it should be seen
that all the receipt books supplied to each office have been
accounted for properly and that the amounts received as per
receipts granted have been brought to the Cash Book.
“Exception.-The provisions of’ this Article will not
apply in the case of charges collected from occupants of
Inspection Bungalows/Travellers’ Bungalows/Circuit Houses,
under the control of Public Works Department or other
departments of Government and the Chamundi Guest House at
Mysore where adequate arrangements exist to collect the charges
through the prescribed registers. This exemption however, will
not apply in the case of other State Guest Houses under the
control of General Administration Department.”
7. No department may require that funds pertaining to it
be kept apart from the general treasury balance, or, be received
for safe custody and kept out of account or be received at all
except under ordinary rules.
Detailed rules regarding the receipt of departmental
cash chests, etc., in the treasury for safe custody and the registers
to be maintained in this connection are given in Appendix II.
8. (a) Any person paying money into a Government
Treasury will present with it a memorandum (challan) in
duplicate (Form 2) which will show distinctly the nature of the
payment, the person or officer on whose account it is made and
the head of account in the Treasury accounts to which the amount
has to be credited, and will thus contain all the information
necessary for the preparation of the receipt to be given in
exchange. Receipts for sums less than ‘[Rs. 2500] do not require
14

the signature of the Treasury Officer, but only of the Accountant

and the Treasurer.
1
[As regards receipts for sums received by transfer in
accounts which do not require the signature of the Treasurer,
the Treasury Officer shall by an office order designate the person
who shall attach the second signature in the case of sums under
Rs. 2,500. Receipts for sums of Rs. 2,500 and over must
invariably be signed by the Treasury Officer.]
Note.- Challans written/signed by Ball Pens will be
accepted.
(b) As regards payment of money into a Bank Treasury,
reference is invited to Section C- II of Chapter V of Karnataka
Treasury Code-Volume I and Appendix IX of Karnataka Treasury
Code-Volume II containing the detailed rules in the matter.
(1) Challan forms printed in both Kannada and English
should be supplied by the Treasury. One copy will be returned
to the tenderer duly signed as a receipt, and the other retained
in the treasury for record.
(2) Duplicate challans are not required when remit- tances
are made to the treasury for obtaining Remittance Transfer
Receipts, or when such remittances are accompanied by
Remittance or Pass Books in which the Treasury Officer is
required to acknowledge receipt of the remittance.
(3) When money is paid by a private party into a Treasury,
the copies of the challan should be initialled by the departmental
officer to whose account the money is to be credited, If he is
at the same station, otherwise the payment should be made in

1. Inserted by No. FD 37 RFC 76 dt. 2-12-1978 w.e.f. 12-12-1781.

15

triplicate challans, one of which should be forwarded by the

treasury to the departmental officer. Amounts creditable to heads
failing under the group head “P. Loans and Advances by the
State Government” should also be remitted in triplicate challans,
one copy of which will be forwarded by the treasury to the
Departmental Officer maintaining the loan accounts.
(3A) When money is paid into the Treasury, by a Government
Institution to the credit of an officer of another department, in
another station, duplicate challans may be presented in addition
to the Remittance Book. One copy of the challans will be
retained by the Treasury Officer for his account purposes. The
other challan will be signed by the Treasury Officer and returned
to the Government servant, who remitted the amount, for being
sent to the officer to whose credit the amount was remitted.
The Treasury Officer will also sign the Remittance Register of
the Institution and return the same to the Institution concerned.
Note.- Depots of the Karnataka Government Road
transport Department while making rernittances into treasuries
to the credit of the Karnataka Government Road Transport
Department Remittance Head of account, may present challans
in duplicate in addition to the Remittance Register. One copy
of the challans will be returned to the remitter (along with the
Remittance Register) for being sent to the Divisional Office.
(3B) Remittances to Treasury of amounts creditable to, ‘XXI-
Miscellaneous Departments’ or L II Miscellaneous’ and also
remittances in respect of recoveries of service payments, under
all heads should be supported by challans in triplicate.
Note.- In every case of recovery of over payment made
in cash a challan shall be presented in triplicate containing full
particulars of the number and date of encashment of the voucher
16

and also the head of account under which the amount was
originally drawn, one copy of the challan being forwarded by
the Treasury to the Accountant General in support of the credits
incorporated in the monthly schedule of receipts of the
department concerned.
(3C) Sale proceeds and other receipts in respect of Food
Supply transactions which are creditable to the P.D. Account of
the Deputy Commissioner, should be supported by challans in
triplicate.
(4) Special challan forms prescribed for particular receipts,
such as Land Revenue, Sales Tax, Agricultural Receipts, should
be used when such sums are credited.
“Note.-1 Remittances of Sales-tax should be
accompanied by a Challan in quintuplicate as per Rule 60-A (3)
of the Karnataka Sales Tax Rules, 1957. The copies marked
‘Original’ and ‘Duplicate’ shall be returned to the dealer duly
receipted as proof of payments, of which the copy marked
‘Duplicate’ shall be attached by him to the return or statement
to be submitted to the Assessing Authority. The third copy
marked ‘triplicate’ shall be retained by the treasury for being
sent to the audit office with monthly accounts. The fourth copy
marked ‘quadruplicate’ shall be forwarded as soon as possible
by the Treasury Officer to the Assessing Authority concerned
and the fifth copy marked ‘quintuplicate’ to the Karnataka
Government Computer Centre, Bangalore immediately after the
close of the week.”
Note.-2 The challan form for indenting stamps by the
Licensed Vendors will be in Form KFC 2-A.
Note.-3 Remittances of major items of Excise Revenue
should be accompanied by a challan in KFC-2B and of minor
17

items in Form KFC 2-C. The Sub-treasury Officers should

transmit these challan’s in batches to the concerned Tahsildars
every week on 3rd, 10th, 17th and 26th of each month and the
District Treasury Officers to the Tahsildar of District
Headquarters Taluk on 8th, 16th, 24th, and the first working
day of the following month.”
(5) Receipts should bear the name of the treasury and be
stamped with the Treasury stamp (seal). It should distinctly
show the date of’ issue, the designation of the Government
servant granting it and the head of account to which the amount
was credited.
Each treasury will maintain two seals, one to be in the
custody of the Head of the Cash Branch to be used solely on
cash challans and the other to be in the custody of the Head of
the Accounts Branch to be used in respect of challans tendered
for receipt of money by transfer.
(6) Receipts given by a Taluk Treasury should be signed
by the Shroff, the Nagadi Gumasta and the Sheristedar or the
Tahsildar.
(7) In the case of remittance by Money Orders to the
treasury the Money Order coupon, which contains full details
of remittances will be the challan in support of the credit and
a separate challan is not necessary.
(8) In the case of the amounts deducted from bills towards
Court attachments, the Courts may return the deduction
statements to the Treasuries alongwith the Receipt Orders noting
thereon the Receipt Order number, instead of preparing separate
challans therefor. The deduction statements themselves will be
treated as challans by the Treasuries.
18

(c) All receipts (challans) must be written in figures and

in words in the original and such other copies of challans in
Form 2, prescribed in Article 8(a) as are required to be given
to the tenderer of moneys, and signed in full over the ‘Cash
received/Received payment’ stamp. Other copies of the challan
may however, be initialled against the amount already indicated
therein over the “Cash received/Received payment” stamp.
CHEQUES TENDERED IN PAYMENT 0F
GOVERNMENT DUES
(9) (1) (a) At places where the cash business of the
treasuries is conducted by the Bank, cheques on local banks
may be accepted in payment of Government dues, or in
settlement of other transactions with the Government, if the
cheques have been crossed by the drawer or the acceptance of
uncrossed cheques in that class of transactions has been
permitted by the Government. Until. however, a cheque has
been cleared, the Government cannot admit that payment has
been received and consequently final receipt shall not be granted
when a cheque is tendered. A receipt for the actual cheque only
may be given in the first instance, but if a person making
payment in this manner so desires, a formal payment receipt
shall be sent to his address after the cheque has been cleared.
Collection charges of the Bank, if any, will be recovered by or
under instructions of the Bank from the party presenting the
cheque.
The preliminary acknowledgement of the receipt of
the cheque will be given in the form below :-
“Received cheque No................................. for Rupees
............................................................................. on account of
........................................ as per challan No.
19

Note.-1 The Reserve Bank of India, the State Bank of

India and the State Bank of Mysore reserve themselves the
right to refuse to accept cheques collection of which, in their
opinion, cannot reasonably be undertaken and which they would
not accept on behalf of their own constituents.
Note.-2 The Bank drafts issued by the State Bank of
India and its subsidiaries and received as payment o Government
dues, or towards other payment, may be treated as cash and
final receipts granted, subject however to the condition that an
indemnity bond in Form 75 of Karnataka Financial Code, is
obtained from the parties to indemnify Government against any
possible loss to Government.
(b) in the event of the cheque being dishonoured by the
bank on presentation. the fact shall be reported at once to the
tenderer with a demand for payment in cash, but the Government
cannot accept any liability for loss or damage which may possibly
occur as a result of delay in intimating that the cheque has been
dishonoured.
(c) when Government dues which are payable by certain
fixed dates are paid by cheque, the person desiring to make
such payment in this manner without risk must take suitable
precautions to ensure that his cheque reaches the treasury or the
receiving office at the latest on the working day preceding the
date on which the payment is to be made. Cheques received on
the last day of payment of Government dues may be refused at
the discretion of the officer to whom they are tendered and
those received later will not be accepted.
Exception.- Cheques payable on demand, presented by
private individuals, firms or companies in payment of Motor
Vehicle taxes may be treated as cash and accepted even on the
20

last day of the grace period. In such cases, the following

endorsement should be made on the receipt in Form K.F.C.I.
granted to the presenter of the cheque].
Received by Cheque No.............................................on
................................. Bank.
This receipt is subject to its realisation.
In the event of such a cheque being dishonoured at the
bank, the owner of the vehicle on whose behalf the cheque was
tendered will be subject to all penalties prescribed under the
law, or the rules framed thereunder, for non-payment of the tax
on or before the due date.
(2) The Government may, in relation to any particular class
of transactions involving payment of Government dues issue
orders varying or relaxing any of the conditions prescribed in
this rule.
Note.- The term “Local Banks” as used in this rule
means banks (including the Reserve Bank, the State Bank of
India and the State Bank of Mysore), located in the station in
which a Bank treasury is situated.
Demand Drafts shall not be distinguished from cheques
for the purpose of these rules and, provided that a cheque
tendered in payment of Government dues is accepted under the
provisions of clauses 1 and 2 of this Article and is honoured on
presentation, payment shall be deemed to have been made.
(i) If the cheque is handed over to the Government’s
bankers or to a Government officer authorised to receive money
on behalf of the Government on the date on which it is so
handed over.
21

or
(ii) If it is sent by post in pursuance of an instruction to
make payment by post, on the date on which the cover containing
it is put into the post :
Provided that where a cheque is marked as not payable
before a certain date, the payment shall not be deemed to have
been made until the date on which it becomes payable.
Note.- The provisions of clause (ii) above apply mutatis
mutandis to payments made to the Government by Postal Money
Order or by any other recognised mode of remitting money by
post.
10. Special rules for the acceptance from the public of
cheques, bank pay orders and bank credit challans in some
departments are prescribed in their departmental regulations.
CHECK OF RECEIPTS
11. It is ordinarily the duty of the Revenue Department
concerned and not of the Audit Department to see that the dues
of Government are regularly paid into the Treasury. Detailed
rules are given in Chapter III.
CUSTODY OF MONEY
12. Public money in the custody of departmental officers
should be kept in cash chest under single or double locks as
may have been prescribed in each case. The officer in charge
of a chest should carefully observe any detail orders prescribed
in each departmental manual regarding the arrangements for
the custody of the key or keys and the proper disbursement of
all moneys, and where no special orders have been laid down,
he should make the necessary arrangements for the purpose. If
22

necessary, cash chest may be lodged in the treasury for safe

custody under the rules in Article 7.
13. When a large amount of cash is frequently kept in the
chest, it shall be fitted with double locks of different patterns
and the keys of the two locks shall be kept in the custody of
two different Government servants, unless Government have
given special permission in any case to dispense with this
procedure.
EXPENDITURE
14. No Government servant may incur any item of
expenditure from public funds unless the following two
conditions are both satisfied :
(a) The expenditure must have been sanctioned by a general
or special order of the authorities competent to sanction such
expenditure ; and
(b) Sufficient funds must have been provided for the
expenditure in Appropriation Acts for the current financial year
or by a reappropriation of funds sanctioned by the authority
competent to sanction such a reappropriation.
14-A. In the event of the orders communicating the allotment
of funds for each year not being received before the
commencement of the financial year, Drawing Officers may
authorise expenditure in anticipation of funds on pay and other
charges on the basis of that incurred in the last month of the
preceding year.
CANONS OF FINANCIAL PROPRIETY
15. Further, every Government servant who incurs or
authorises the incurring of expenditure of public money shall
23

see that it does not contravene the following principles which

are termed as the canons of financial propriety and which shall
be observed by all Government servants vested with powers of
sanctioning expenditure :-
(1) Every Government servant should exercise the same
vigilance in respect of expenditure incurred from Government
revenues as a person of ordinary prudence would exercise in
respect of the expenditure of his own money.
(2) No authority should exercise its powers of sanctioning
expenditure to pass an order which will be directly or indirectly
to its own advantage.
(3) Government revenues should not be utilised for the
benefit of a particular person or section of the community
unless :-
(i) a claim for the amount could be enforced in a court of
law, or
(ii) the expenditure is in pursuance of a recognised policy
or custom.
(4) No authority should sanction any expenditure which is
likely to involve at a later date expenditure beyond its own
powers of sanction:
(5) The amount of allowances, such as travelling
allowances, granted to meet expenditure of a particular type,
should be so regulated that the allowances are not on the whole
sources of profit to the recipients.
The Accountant General will bring to the notice of
Government in the Finance Department breach of any of these
canons.
24

It must be remembered that a Government servant has

to satisfy not only himself but also the Audit Officer that there
has been no breach of any one of these canons.
16. It is the duty of every Government servant not merely
to observe complete integrity in financial matters, but also to be
constantly watchful to see that the best possible value is obtained
for all public funds spent by him or under his control and to
guard scrupulously against every kind of wasteful expenditure
from public funds.
RESPONSIBILITY OF TREASURY OFFICERS
REGARDING PAYMENTS
17. (a) A Treasury Officer has no general authority to deal
with demands presented at the treasury, his authority to make
payments being strictly limited to the rules contained in the
Financial Code. If a demand of any kind is presented at a
treasury, which is not provided for by the rules in the Code, or
is not covered by a special or general order received from the
Audit Office, the duty of the Treasury Officer is to decline
payment for want of authority. A Treasury Officer has no
authority, to act under an order of Government sanctioning a
special payment unless it is an express order to him to make the
payment, and even special orders should, in the absence of
urgency, be sent through the Accountant General.
Note.-A Treasury Officer should not refuse to pay a
bill merely on the ground that the drawing officer has not
compiled with a final rule requiring that the particulars of the
order sanctioning a charge of a certain kind should be quoted
on the bill. If the drawing officer fails to obtain sanction before
incurring a charge when the rules require him to obtain sanction,
be alone is responsible.
25

1
[Exception 1.- The Treasury Officers can start making
payment as soon as they receive the Government Order
sanctioning Dearness Allowance to the pensioners without
waiting for authorisation from the Accountant General].
2
[Exception 2.- Treasury Officers can start making
payment as soon as they receive the Government order
sanctioning Dearness Allowance to the Municipal Pensioners
drawing pension from Consolidated Fund, without waiting for
authorisation from the Controller of State Accounts Department.]
“17(aa) “Non-recurring Honoraria may be drawn by the
Gazetted officer himself by presenting a bill in the treasury in
a . simple receipt form on the authority if the sanction issued
by the competent authority,, or a duly certified copy thereof
appended to the bill, without the authorisation of the Accountant
General, Karnataka”.
(b) treasury Officers may pay on the authority of the signing
or countersigning officers without any special instructions from
the Accountant General, the following :-
(1) Establishment bills in respect of all old establish- ments
irrespective of any additions and alterations that may have
occurred in such establishments.
Note.- The Accountant General will not intimate to
treasuries changes in the scale of establishment, such as.
additions or reductions nor will he issue instructions to the
treasury for the payment of the above claims.
(2) Contingent and travelling allowance bills of all old
establishments.
1. Inserted by No. FD 17 TFC 88 dt. 7-11-1989 (wef 7-11-1989)
2. Inserted by No.FD 3 TFC 93 dt. 5-8-1994 (w.e.f. 5.8.1994)
26

(3) Bills for grant-in-aid, stipend, scholarship or

contributions supported by a copy of the order of sanction and
signed or countersigned by the competent authority of the
department concerned.
(4) Advances sanctioned to Government servants whether
for their personal use or public purposes, which are drawn on
the bills signed or countersigned by a gazetted Government
servant to which the certified copy of the original sanctioning
order is attached, a note being made in the forwarding memo
to the effect that the original has been retained in the office of
the sanctioning authority.
Note.- When an advance is drawn in more than one
instalment it is enough if the number and date of the order
sanctioning the advance already attached to the first bill are
quoted in the receipt on which the second and subsequent
instalments are drawn. The Treasury Officer should see that
such reference is given before paying the second and subsequent
instalments.
As regards House Building, Motor Car and Bicycle
advances, the procedure laid down In the relevant rules will
apply.
Note 1.- Whenever loans and advances are sanctioned
to Government servants in relaxation of the provisions of
Karnataka Financial Code, the Treasury Officers should pass
such claims only on the receipt of authorisation from the
Accountant General and should not pass them merely on the
strength of copies of Government Orders issued in the matter,
unless Government themselves have passed Orders to the effect
that such payments may be made without authorisation from
the Accountant General in view of urgency.
27

Note 2.- Reference is invited to Article 99-A in respect

of personal advances granted to Gazetted Government servants.
(5) Bills for Loans and Advances to private persons granted
under general rules, such as, Land Improvement or Takavi Loans
and special charges, such as special advances, special loans
etc., sanctioned in favour of a private individual by Government
when the original order sanctioning the loans, etc., accompanies
the bills.
(6) Bills for the remuneration to the Examiners in respect
of the examinations of the Education Department or the
Karnataka Local Service Examinations drawn in the prescribed
forms and duly countersigned by the Commissioner for
Examinations, Education Department or the Secretary of
Karnataka Local Service Examinations {except in the case of
Gazetted Government Servants - vide Note under Rule 55(26),
Manual of Contingent Expenditure 1958}.
(7) Bills for remuneration for review of Text Books of
non-officials and non-Gazetted Government servants, when
countersigned by the Joint Director of Public Instruction or the
Secretary, Text Book Committees.
(8) Bills for remuneration for setting question papers and/
or Valuation of answer papers due to Gazetted Officers in
connection with the various Public Examinations, whether
conducted under the direction of the Karnataka Public Service
Commission or the Departments themselves should be honoured
at the treasuries on the basis of sanctions communicated by the
Chairman/Secretary, Commissioner or Controller or other
authorised Officer of the concerned examination without insisting
on the authority from the Accountant General.
28

The Bills should be prepared in the prescribed form,

separately for each Gazetted Officer and countersigned by the
concerned authorities of the examinations. The Treasury Officer
will record the payment individually, so as to watch the recovery
of income-tax.
(9) Bills for remuneration preferred by Doctors performing
operations under the Family Planning Scheme duly countersigned
by the Superior Officers under whose administrative control
they are working should be honoured at the Treasuries, without
any authorisation from the Accountant General. The Bills
containing similar claims of the District Health Officer himself
countersigned by the Deputy Director of Health Services (Family
Planning and Maternity and Child Health) should also be
honoured at Treasuries without insisting on any authority from
the Accountant General.
“9(a). Bills for honorarium of Rs.5 per visit limited to Rs. 50
per rnensum to the doctors appointed as authorised Medical
Attendants for attending on the Ministers and Ministers of State.
The claim of the doctors appointed as authorised
Medical Attendants for payment of Honorarium may be admitted
on the basis of the certificate issued by the concerned private
Secretaries without the authorisation of the Accountant General”.
(10) Bills for remuneration to supervisors and invigilators
of departmental examinations conducted by the Public Service
Commission, the Deputy Commissioners who appoint the
supervisors and invigilators will draw the amounts required for
disbursement of remuneration to the supervisors and invigilators
as and when required, by presenting Bills at the Treasury in
Form KFC-3 (Payees’ Receipts) separately for Gazetted and
non-Gazetted Officers. The remuneration to the supervisors and
29

invigilators will be disbursed by the Deputy Commissioners at

the end of each day of duty after the examination for the day
is over, obtaining a proper receipt, duly stamped, whenever
necessary. The amount will be debitable to the head “Allowances
and Honoraria” of the Public Service Commission. In the case
of payments to the Gazetted Officers, the Treasury Officers or
the Accountant General (I.R.L.A. Section), if the Officer is
covered by the I.R.L.A. system, should be intimated so that
action can be taken to calculate income-tax and deduct the
same from the salary of the Officer.
After the Examination is over, the Deputy
Commissioners will send to the Public Service Commission
statement of payments so made. The receipted
acknowledgements should be filed in the Office of the Deputy
Commissioner and produced when required by local audit.
(11) Bills pertaining to the interest on Depreciation Fund,
Reserve Fund Investments and Provident Fund investments due
to the Karnataka State Road Transport Corporation, duly
scrutinised and countersigned by the Departmental Officer
concerned.
(c) In the cases noted below, the treasuries will make
payments only on the authority of intimation issued by the
Accountant General :-
(1) Changes in the pay of gazetted and other Government
servants who draw separate bill for their own salaries.
(2) Establishment and contingent bills of newly opened
offices.
(3) Permanent Advances for contingencies sanctioned
whether by Government or by Heads of Departments under the
powers vested in them.
30

(4) Payment on account of the Government’s investments

in a Company, Corporation or similar autonomous Organisation
unless the Government specially direct otherwise.
1
[except Government’s investments in Co-operative
societies.]
(d) A Deputy Commissioner may, in circumstances of
urgency, by an order in writing, authorise and require a Treasury
Officer to make a payment, not being a payment of
pension without complying with the provisions of these rules.
In any such case, the Deputy Commissioner shall at once forward
a copy of his order and a statement of the circumstances
requiring it, and the Treasury Officer shall at once report the
payment to the Accountant General.
Note.- The need for exercising the special power under
this rule should not arise at all in normal conditions. The power
should be used only in real cases of urgency, e.g., floods, earth-
quake and the like, and withdrawals of money, under this rule
should, as far as possible, exclude all personal claims of
Government Servants. The maximum amount which can be
withdrawn in each case is fixed as Rs.5,000 (Rupees five
thousand only).
18. 2[The arrears claims of non-gazetted Government
servants and contingent claims either of special nature or of
periodical nature shall be authorised for payment by the
authorities who are delegated powers to sanction investigation
of claims. To avoid double claims and payments, the drawing
officers shall make a note of the payments, in acquittance rolls,

1. Inserted by No. FD 11 TFC 81 dt. 19- I I- 1983. (w e f. 19-1-1984).

2. Amended by No. FD 20 TFC 81 dt. 28-8-1986 (w e f. 1-5-1984)
31

service registers, office copies of original bills and other registers

kept in the office. The inspecting officers, while inspecting the
offices of the drawing officer shall ensure that the procedure is
scrupulously followed.
This article shall not apply to the following categories
of claims: -
(a) claims on account of pensions, the payments, of which
is regulated by Article 136 of K.T.C.-.
(b) claims on account of pay and allowances other than
reimbursement of medical expenses of such non-gazetted
Government servants whose names are not required to be shown
in the pay bills in accordance with article 117 of KFC ;
(c) claims on account of interest on Government securities,
and
(d) any other class of payments which are governed by
special rules or orders of Government ;
(e) claims by one Department against another or by a State
Government and the Central Government ;
(f) claims of Gazetted Government servants whose pay
and allowances are authorised by the Accountant General.]
Note 1.- The time limit of one year prescribed in this
Article should be calculated from the date on which the charge
becomes payable. In the case of sanction to the claim, accorded
with retrospective effect the time limit should, however, be
calculated from the date of sanction only and not from the date
from which the sanction takes effect.
32

Note 2.- A claim for an amount of fine deducted from

a pay bill by the Head of an office and subsequently excused
by him may, if it is preferred within one year, be paid without
the sanction of the Accountant General, just as withheld pay
claimed within one year of its becoming due.
Note 3.- Claims pre-audited or passed by the
Accountant General but remaining unpaid after the financial
year, preferred at the Treasury within the first quarter of the
next financial year, need not be returned to the drawing officer
for revalidation, excepting those claims coming under the
purview of Note 3 below Article 305 of Karnataka Financial
Code; and no revalidation by the Accountant General is
necessary in cases other than those covered by Note 3 below
Article 305 ibid, provided the payment thereof is claimed within
three months from the date of enfacement.
Note 4.- Deleted.
Note 5.- The claims for arrears of pay and allowances
of non- gazetted Government servants whose names are omitted
from bills and which do not require pre-audit by the Accountant
General, should be settled as expeditiously as possible and in
any case within a year of their becoming due. Claims which are
prepared after one year, require the orders regarding condonation
of delay, by the Head of Department or the Government as the
case may be.
Note 6.- (i) For the purpose of counting the period of
one year referred to in this Article, the date on which the claim
is presented at the Treasury should be considered to be the date
on which it is preferred. A claim which is presented for payment
within one year may be paid by the Treasury Officer in the
usual way even if the period of one year elapses between the
33

date of presentation and the date of payment, due to delay in

passing the bill for payment in the treasury.
(ii) Bills which are presented within the prescribed period
of one year, but are returned due to their being imperfect, etc.,
cannot be paid without pre audit if they are not presented after
supplying the omissions or rectifying the defects, etc., within
the prescribed time limit of one year from the date on which
they become due. The fact that this bill was presented on the
previous occasion with the prescribed time limit of one year in
imperfect manner shall not exempt it from the operation of this
Article.
The above principle will apply, also to the claims not
exceeding 1[Rs.500] presented within three years of their
becoming due and do not require pre-audit by the Accountant
General and also to the claims falling under Articles 20, 21, 22
and 146-A.
19. Bills on account of arrears of pay and allowances and
other claims affecting the emoluments of an officer, revised
with retrospective effect, do not require pre-audit before payment,
if the claims are preferred at the treasury within one year of
sanction.
Note 1.- When the amount involved is considerable, it
should be clearly indicated on such bill whether requisite
appropriation (Budget provision) exists or whether additional
appropriation has been applied for.
Note 2.- In the case of claims arising from general
revisions of pay scales, the rules of which provide for election

1. Substituted by Notification No. FD 36 RFC 76 dt. 21-6-1978. (w.e.f.

21-6-1978).
34

of such case by individual Government servants, for the purpose

of pre-audit of arrears claims, the period of one year should be
counted from the date of exercise of option, or the last date
prescribed for the exercise of option, as the case may be.
20. (a) Except under the special orders of Government or
of some other competent authority to which the power is
delegated under this Article, the Accountant General will not
investigate any claim of a Government servant, whether gazetted
or not, for arrears of pay or allowance or for an increment,
when the claim has remained in abeyance for over a year.
Heads of Departments are authorised to sanction the
investigation of arrears claims of all Government servants
appointed by them. In exercising this power, they should bear
in mind that the investigation of such claims often involves a
large amount of labour in the Audit Office out of all proportion
to the amount or importance of the claims preferred. They
should, therefore, exercise the power with caution and call upon
the Audit Office to report on cases in which there appears to be
a prima facie reasonable claim and reasonable cause for delay.
It is necessary that belated claims which are not capable of
proof should be disallowed. The investigation by the heads of
Departments of arrears claims of Government servants appointed
by them is restricted to those claims which are not over 1[six
years old] When, however, the validity of an old claim is
established by acceptable evidence, a report of the circumstance
in which the delay occurred should be made to Government, so
that suitable action may be taken to prevent the recurrence of
such cases.

1. Substituted by No. FD 12 RFC 77, dated 19th May 1978.

(w.e.f. 1-12-1974).
35

Note 1.- The potgi allowance due for a year may be

paid by Tahsildars within twelve months after it becomes due
without the sanction of the Deputy Commissioner. Deputy
Commissioners are empowered to sanction the investigation of
all arrear claims of pay and potgi of any amount when the
period for which they have been outstanding does not exceed
twenty-four months, and up to a money limit of Rs.100 when
the delay in preferring the claim is not more than three years.
Claims beyond these limits, will be sanctioned by the
Divisional Commissioners.
The Divisional Commissioners will obtain orders of
Government in doubtful cases.
The power delegated to the Deputy Commissioners
may be exercised by them in respect of Muzrai matters also,
i.e., in respect of pay of Muzrai Establishment paditara and
other charges, provided in the sanctioned scale of expenditure
of Muzrai Institutions, and potgi of Village Officers in villages
belonging to muzrai Institutions.
Note 2.- The Commissioner for Charitable Endowments
is empowered to pass arrears claims of Malnad Cash Grants
and Muzrai Stipends, when the delay does not exceed three
years or the amount involved does not exceed Rs. 500.
Note 3.- Deputy Commissioners are authorised to
sanction the investigation (i) of all arrears claims of Malnad
Cash Grants not exceeding 24 months, and (ii) of arrears claims
of such grants up to a money limit of Rs. 100 when the delay
in preferring the claim is not more than three years.
Note 4.- In respect of arrears claims of the staff of
Community Development Projects and National Extension
Service, falling under this Article, the Divisional Commissioners
36

shall exercise the power to condone the delay in preferring

them, upto a period of five years.
1
[Note 5.- In respect of the following claims of Non-
Gazetted officers, the time limit of one year prescribed in Articles
18 and 19 of Karnataka Financial Code has to be calculated
from the date of the order sanctioning the claim and not from
the date from which the sanction takes effect:-
(i) Retrospective revision of pay scales;
(ii) Retrospective promotion consequent to review of
promotions involving payment of arrears of salary and;
(iii) Claims which were inadmissible according to the then
existing orders/rules but which were considered admissible
consequent on Court decisions of revised orders issued by
competent authorities and have been sanctioned with
retrospective effect.
When the delay involved in settlement of the above
claim computed from the date of order sanctioning the claim
does not exceed six years, the Heads of Departments are
authorised to condone the delay under Article 20 (a). Before
issuing orders condoning the delay, the following checks should
be exercised:-
(a) Claims should be scrutinised by the Financial Advisor/
Chief Accounts Officer attached to Heads of Departments
wherever such posts exist ;
(b) The correctness of claims should be verified with
reference to original records;

1. Inserted by No. FD 20 TFC 81 dt. 28-8-1986 (w.e.f. 3-1-1978).

37

(c) That the claims has not been preferred before, should
be established conclusively beyond doubt with reference to
original records;
(d) It should be ensured that the payment of claim will not
result in wrong or double payment ;
(e) The Heads of Departments should maintain a suitable
register detailing all such sanctions accorded by them.
(b) Delays in payment are opposed to all rules and are
highly inconvenient and objectionable. The Heads of Offices
and Departments should distinctly understand that the personal
claims of Government servants under the orders of competent
authority should be discharged with the least possible delay and
that the provisions for entertainment of belated claims made in
Articles 18, 19 and 20 above are intended for exceptional cases
where from unavoidable causes, the speedy settlements of claim
is rendered impossible. Every case of deferred claim forwarded
for pre audit by the Accountant General under Article 18 and
19 and sanction of Government or the Head of a Department
under Article 20(a) should invariably be accompanied by a clear
explanation of the necessity for postponing the settlement of
the claim and where the postponement was avoidable, also by
a report of the names of Government servants responsible for
the delay and of the action taken to prevent the recurrence of
such cases.
(c) All sanctioning authorities should bear in mind the
inadvisability and inconvenience of sanctioning claims with
retrospective effect as it throws unnecessary burden on the Audit
Office and leads to undeserved hardship on the Government
servants concerned.
38

(d) All Promotions, permanent or officiating and other

arrangements involving alterations in the pay of a Government
servant should be sanctioned by the superior authorities with
the greatest promptitude as soon as the occasion for the same
arises. If any such arrangements are not sanctioned within the
period of one year from the earliest date on which they could
be ordered, they cannot be sanctioned afterwards except with
the special sanction of Government which will be accorded
only in exceptional cases and on satisfactory explanation being
payable.
Note 1.- Heads of Departments are empowered to
sanction permanent or officiating promotions and other
arrangements involving alterations in the pay of Government
servants within 1[six years] from the earliest date on which they
could be ordered. They are also empowered to sanction
investigation into the claim for arrears of increments within
five years of the date on which they become payable.
Note 2.- Except in the case of an increment which has
been specially withheld or which is next above an efficiency
bar in a time-scale which requires the specific sanction of the
competent authority under Rule 52 of the K.C.S.Rs. the period
of one year prescribed in Articles 18 and 20 should be reckoned
from the date on which the increment falls due for payment,
irrespective of the date on which the increment certificate is
passed by the Drawing Officer, since that is the earliest date on
which the claim could have been putforth. Even where an
increment is specifically withheld it accrues from the date on
which it falls due after taking into account the period for which
it is withheld. On the expiry of that period, the accrual of the

1. Substituted by No. FD 12 RFC 77, dt.19th May 1978.

(w.e.f. 1-12-1974).
39

increment is a matter of course. The period of one year should,

therefore, be counted in such a case from the date on which the
increment falls due after taking into account the period for
which it is withheld.
In a case in which the increment next above the
efficiency bar is to be allowed under Rule 52, K.C.S.Rs., or in
which a pre-mature increment is to be granted under Rule 57
of K.C.S.Rs.. the period of one year should be counted from the
date of sanction or the date of accrual of the increment,
whichever is later.
In the case of an increment which can be drawn only
after the increment certificate has been passed by the Accountant
General in terms of Article 126 of Karnataka Financial Code
the period of one year should be reckoned from the date of
passing of the increment certificate by the Accountant General
or from the date of accrual of the Increment, whichever is later.
(e) When old claims which cannot be verified from
Government records are preferred, the Accountant General will
return the papers to the party concerned with a remark to that
effect. It will then be the duty of the claimant to submit the
claim to Government with independent evidence of a conclusive
nature.
Note 1.- As the claims under Article 20(e) will not be
scrutinised by the Accountant General, it is necessary subject to
such claims to a detailed scrutiny by the Heads of Departments
and the Administrative Departments of the Secretariat so as to
ensure that no claims which are not supported by satisfactory
evidence are recommended for payment. The following
procedure has therefore to be followed in such cases:
40

(i) All time barred claims which are more than 1[6 years]
old and which fall under Article 20(e) should continue to be
sent to Government in Finance Department through the
respective administrative Departments in the Secretariat.
(ii) Only such claims which are found to be correct in all
respects beyond doubt should be recommended. Others should
not at all, be entertained.
(iii) All such claims should contain the following certificate
duly signed by the concerned drawing Officers:
(a) the correctness of the claim is verified with the relevant
original records ;
(b) the claim has not preferred before and it is established
conclusively beyond doubt, with reference to such original
records, and
(c) the payment of the claim will not result in wrong or
double payment.
(iv) Claims which do not satisfy the above conditions and
which also pertain to the period prior to the reorganisation of
States should be, however, forthwith rejected unless entertain-
ment of such belated claims, in very exceptional cases, is
considered absolutely necessary, since it would be difficult for
Government to ensure the correctness of such old claims and to
prevent the possibility of double or incorrect payments being
made on account of sanction of such old claims.
Note 2.- In all cases of arrear claims which are
recommended for sanction of Government under clause (e),
prior remarks of the Accountant General, regarding his inability
to verify the claim should invariably be obtained and that every
sanction order issued under the aforesaid clause, should quote
41

the reference of the Audit Office wherein its inability to verify

the claim is intimated.
1
[Note 3.- In respect of the following claims of Non-
Gazetted Officers the period of one year prescribed in Article
18 and 19 of Karnataka Financial Code has to be calculated
from the date of the order sanctioning the claim and not from
the date from which the sanction takes effect.
(i) Retrospective revision of pay scales ;
(ii) Retrospective promotion consequent to review of
promotions involving payment of arrears of salary and ;
(iii) Claims which were inadmissible according to the then
existing orders/rules but which were considered admissible,
consequent on Court decisions or revised orders issued by the
competent authority and have been sanctioned with retrospective
effect.
When the delay involved in settlement of the above
claim computed from the date of order sanctioning the claim
exceeds six years, the Heads of Departments are authorised to
condone the delay under Article 20(e). Before issuing the orders
condoning the delay, the following checks should be exercised;
(a) Claims should be scrutinised by the Financial Adviser/
Chief Accounts Officer attached to Heads of Departments
wherever such post, exist:
(b) The correctness of claims should be verified with
reference to original records ;

1. Substituted by No. FD 20 RFC 81, dt. 28-8-1986 (w.e.f. 3-1-1978).

42

(c) That the claim has not been preferred before should be
established conclusively beyond doubt with reference to original
records;
(d) It should be ensured that the payment of claim will not
result in wrong or double payment ;
(e) The Heads of Departments should maintain a suitable
register detailing all such sanctions accorded by them.
(f) All bills, whether payable at Bangalore or elsewhere,
submitted to Government for sanction, are returned by
Government with orders, to the office submitting them and
only copies of the orders sanctioning the bills are sent to the
Audit Office.
(g) (i) It is of the utmost importance that claims against
Government should be liquidated at the earliest possible moment
as belated claims cannot be effectively checked in the Audit
Office.
(ii) Claims against Government, which are barred by time
under the provisions contained in Section 3 read with the First
Schedule of the Indian Limitation Act of 1908 or under any
other provisions of law relating to limitation, should ordinarily
be refused and no claim on account of such a time barred item
should be paid without the sanction of Government. The onus
is upon the claimant to establish a claim to special treatment
for a time-barred item and it is the duty of the authority against
which such a claim is made to refuse the claim until a case for
other treatment is made out. All petty time-barred claims are to
be rejected forthwith and only important claims of this nature
considered.
43

(iii) It is the duty of the authority against which a claim is

made to consider in the first instance the question of a time-bar
before submitting it to the Accountant General for the issue of’
authority for payment. The Accountant General will refuse
payment of all claims found to be time-barred until the sanction
of Government has been obtained.
(iv) All petty claims of a Government servant not exceeding
Rs. 100 and which are more than five years old, other than
those that effect his pension, and all such claims for whose
delayed submission an adequate explanation is not forthcoming
should be rejected forthwith. In considering old claims
recommended for sanction, the authority concerned will also
take into account the fact that it is normally not possible owing
to the limited period of preservation of records to audit claims
more than six years old.
(v) The authority competent to authorise the investigation
of a belated claim should be told why the claim was not
submitted when it become due.
(vi) In respect of non-Gazetted Government servants whose
pay and allowances are drawn on establishment bills by the
Heads of Office, the responsibility for making claims rests on
the latter and they should invariably see that all claims are
presented within one year of their falling due. Sanctioning
authorities should jealously scrutinise all old claims preferred
for condonation of delay, and reject such of them in respect of
which convincing reasons for the delay are not forthcoming.
CONTINGENT CHARGES
21. The liabilities incurred on account of these charges
should be discharged with the greatest promptitude. In the case
of payments made out of permanent advances, the amount should
44

be recouped at once as laid down in the Manual of Contingent

Expenditure ; and in other cases, the liability discharged at the
earliest possible date. In either case, the liability should not be
allowed to remain undischarged for over a period of one year
nor should it be carried forward as a charge on the grant for the
subsequent year without adequate reasons. Claims preferred
within one year (even though they relate to the previous year)
can be settled by the head of the office, without higher sanction.
Before preferring Such claims in a subsequent year, the Drawing
Officer has to ensure that sanction to the charge where necessary,
continues to exist and that sufficient funds are available in the
budget. Heads of Departments can sanction on their own
authority payment of claims on account of contingent charge
(including supplies and services) preferred after one year of
their becoming due if they are submitted in the same or the next
financial year, provided funds for meeting the same are available
in the budget. The general principles laid down in Article 18
will apply equally to claims covered by this Article. Clause (e)
of Article 20 of the Karnataka Financial Code will also be
applicable to old claims covered by this Article which cannot
be verified from Government records.
Note 1.- The Heads of Departments are empowered to
sanction all arrear claims of other Government departments or
Government Industrial Concerns not more than three years old,
subject to a monetary limit of 1[Rs.3,000].
Note 2.- The Director of Public Instruction is
empowered to sanction arrear claims in respect of rent when
such claims are not over three years old.

1. Substituted by No.FD 9 RFC 77 dated, 27-6-1978.

45

Note 3.- Contingent bills not preferred for recoupment

within three years should, as a rule, not be sanctioned or
permitted to be encashed.
Note 4.- The claims for travelling allowance to non-
officials for attending meetings and also for monthly recurring
grants-in-aid will also be dealt with under this Article.
Heads of Departments are empowered to sanction
arrears claims of travelling allowance to non-officials for
attending the meeting, etc., when such claims are not over three
years old.
Note 5.- The Director of Public Instruction is
empowered to sanction arrear claims on account of fees payable
to the Doctors for medical inspection of pupils, when such
claims are not over one year old.
Note 6.- A claim falling under contingencies should
normally deemed to have become due immediately on
completion of the relevant supply or service. In the case of
claims which can be paid only on receipt of a demand therefor
e.g., municipal and water taxes payable to Corporations,
Municipalities, etc., and claims of the officers of the Electricity
Board towards cost of electric energy supplied by them the
period of one year should be reckoned from the last date fixed
in such demand notices, for payment.
1
[“Exception.- The Director of Printing, Stationery and
Publications is empowered to incur the contingent liability on
account of supply of stationery and sanction payment of such
contingent claims in the third financial year or later subject to
Budget provision”.]

1. Inserted by No. FD 40 RFC 76 dated 27-6-1978 (w.e.f. 27-6-1978).

46

TRAVELLING ALLOWANCE
22. The general principles laid down in Articles 18 and 20
apply equally to claims of T.A. to Government servants in
service.
The time limit of one year (Article 18) is to be counted
from the date succeeding the date of completion of the journey
in respect of which the claim is made to the date of presentation
of bills at the Treasury. However, in case of journeys undertaken
to attend an obligatory examination, where admissibility or
otherwise of the Travelling Allowance is conditional and can
be determined only after the results of the examination are
declared the time limit of one year is to be counted from the
date of the announcement of the result.
22-A. The right of a Government servant to travelling
allowance, including daily allowance, is forfeited or deemed to
have been relinquished if the claim for it is not preferred to the
head of the office or, the Controlling Officer or the Accountant
General as the case may be, within one year from the date on
which it become due.
If the T.A. claim is not preferred by the administrative
authority concerned for payment within one year from the date
of its becoming due wherever the claims have been preferred
by the Government servants well in time it shall not be paid
unless the reasons for delay are investigated in detail by the
authority competent to sanction investigation of the claims and
a specific sanction is issued by it.
If the investigation shows that the claim could not be
preferred in time due to administrative delay without adequate
and cogent reasons, suitable action shall be taken against the
officer (s) concerned so that such delays do not recur in future.
47

In cases where T.A. advance is drawn and the

adjustment bill therefor is not preferred within one year from
the date the Travelling Allowance became due, the claims for
T.A. will also stand forfeited and the advance of T.A. drawn
shall be recovered from the pay or any other dues of the
concerned officer/official in one installment by the authority
competent to sanction such an advance.
Note.- 1[The provisions of this Article apply to tour/
Transfer travelling Allowance and Conveyance Allowance
claims. But in case of journey on tour where Travelling
Allowance advance has been drawn the amount of the advance
drawn shall be adjusted by the end of the month succeeding the
month in which the journey is completed in the final T.A. bills
of the Government servant concerned.]
2
[The provisions of this Article shall also apply to
claims in respect of Home Travel Concession and Leave Travel
Concession availed by a Government servant once in a block
period of two years and 1[during entire service] respectively, for
which no advances are drawn and these shall be deemed to
have come into force with effect from Ist August 1980. But in
cases in which advance has been drawn. the adjustment bill
therefor shall be preferred :-
(i) Within one year from the Date of completion of return
journey when the return journey is completed between 1st August
1980 and 31st December 1980.
and

1. Substituted by No.FD 13 TFC 88 dt. 18-10-1989.

2. lnserted by No.FD 1 TFC 81 Dt. 4-5-l982.
48

(ii) Within three months from the date of completion of

return journey or 31st December 1981 whichever is later when
the return journey is completed on or after Ist January 1981.
and
1
[(iii) In the case of leave travel concession, the final bill in
adjustment of the advance or T.A. claims for journey, if no
advance is drawn shall be submitted within one month when
the return journey is completed on or after
6-6-1990, along with the certificate In the following form:
CERTIFICATE
Certified that I and the members of my family have undertaken
journey from ............. to .......... (declared place of visit) by
railway / bus/sea, vide ticket Numbers ............. during the
period from ......... to................................

Signature
Name
Date: Designation:

If the adjustment bill is not preferred within the period

mentioned above the claims will stand forfeited and the advance
drawn shall be recovered from the pay or any other dues of the
concerned officer/official in one instalment by the authority
competent to sanction such an advance.]

1. Substituted by No. FD 17 TFC 92 dt. 31-3-1993 (w.e.f. 6-6-!990).

49

CLAIMS AGAINST GOVERNMENT

23. 1[Save as hereinafter provided, bills presented
by a departmental Officer, personal claims preferred by a
Government Officer and all cheques tendered at the Treasury or
at an authorised office of disbursement shall be duly receipted
for payments and stamped, where necessary. Receipts, duly
stamped, where necessary, for all other payments made on bills
shall be given at the time of payment.]
At places where the cash business of the treasury is
conducted by the Bank, this Article shall apply subject to the
provision of Section ‘C’ in Chapter V of the Karnataka Treasury
Code, Volume 1.
Note 1.- Government servants receiving stamped
documents should invariably see that all stamps affixed to such
documents are promptly punched, as failure to do so affords
scope for fraud and is likely to lead to loss of revenue to
Government.
Note 2.- The disbursing and audit officers should see
that receipts on account of partnership firms are signed by one
of the partners for and on account of it as any partner of
partnership firm may receive money on behalf of the firm and
give valid receipts therefor. In cases where the Accountant
General is unable to satisfy himself that the person giving a
receipt is a partner of the firm, he may accept the certificate of
the disbursing officer that payment was made to the best of his
knowledge, to the correct party in the case of obscure firms
which have transactions once in a way. In the case of partnership
firms having frequent transactions, they should be asked to

1. Substituted by No. FD 38 RFC 76 dt. 16-11-1977 (w.e.f. 16-11-1977).

50

deposit with the disburser before receiving first payment, a

declaration specifying the names of partners sworn to before a
stipendiary magistrate and Attested by him under the seal of his
court. As a rule, either the officer countersigning the bills or the
Audit Officer should in every case satisfy himself that the person
who has signed the bill has authority to do so and give a valid
receipt.
PREPARATION AND FORM OF VOUCHERS
24. The following general instructions regarding the
preparation and form of vouchers should be observed:-
(a) A bill or other vouchers presented at the treasury as a
claim for the payment of any amount by the Government shall
contain particulars of :
(1) the nature of the claim,
(2) the amount claimed,
(3) the period to which the claim relates if it arises
periodically, e.g., a claim for pay and fixed allowances,
(4) the orders sanctioning the charge, if it was incurred
under special orders.
(5) the authority for any deduction made in the bill,
(6) the major head, minor head, sub-head and detailed
account head to which the charge (or each part of it) is debitable,
and
(7) the allocation of the charge between Governments and
departments, if any such allocation is necessary.
51

(b) Vouchers should as far as possible, be in printed forms

in English or Kannada. Where no special form is prescribed,
Form 3 (Payees’ Receipt) should be used.
When the use of a voucher in any other language is
unavoidable, a brief abstract should be endorsed in English or
Kannada under the signature of the preferring officer stating the
amount, the name of the payee and the nature of the payment.
All vouchers must be filled in and signed in ink.
Note 1.- Bills affixed with the facsimile signature of
the authorised officer, presented by the following departments
and institutions forming sub-vouchers of the Contingent Bills,
may be accepted for payment, if otherwise in order:-
1. Posts and Telegraphs Department for telegram and
trunkcall charges and telephones bills.
2. Public Works Department for water charges.
3. Karnataka Electricity Board for electricity charges.
4. Municipalities and Corporations for tax, water and
electricity charges.
5. Air India International on account of their dues against
Government (for passage fares, cargo and excess luggage
charges).
Note 2.- Vouchers prepared on a typewriter where ink
is used may be accepted, care being taken to reject carbon
copies.
Note 3.- Bills prepared on Computers may be accepted.
52

Bills written/Signed by Ball Point Pens will be accepted

at the Treasury/Bank provided the writings and the signature
are both clear and legible.
(c) The amount of each vouchers (Rupees and Paise)
should be always written in words as well as in figures. Care
should be taken to have no space for interpolation. When
writing the amount in words “Paise” should always be prefixed
to the amount as illustrated below :
(1) Rs. 700.09 should be written as Rupees seven hundred
and Paise nine only.
(2) Rs. 35.23 should be written as Rupees thirty-five and
Paise twenty three only.
(d) All corrections and alterations in the total of a voucher
whether made in words or figures should be attested by the full
signature of the drawing officer with date as many times as
such corrections and alterations are made; similarly, corrections
and alterations in the orders of payment must be attested in the
same way by the Treasury Officer. The space left blank either
in the money column or in the column for particulars of the bill
should invariably be covered by oblique lines. A note to the
effect that the amount of the bill is below a specified amount
expressed in whole rupees should invariably be recorded in the
body of the bill in red ink. The amount so specified should be
a sum slightly in excess of the total amount of the bill. Erasures
and overwriting in any bill are absolutely forbidden and must
be avoided; if any correction be necessary, the incorrect entry,
should be cancelled neatly in red ink and the correct entry
inserted. Each such correction or any interpolation deemed
necessary should be authenticated by the drawing officer setting
his dated initials against each.
53

Note.- Important corrections in all enfacements for

payment at the Treasuries, such as charges in the name of the
payee, amount payable and the Treasury of payment, should be
attested by the full signature of the drawing or countersigning
officers.
(e) Except when specially ordered by the Accountant
General otherwise, charges against two major heads should not
be included in one Voucher but the Treasury Officer will not
take exception to a voucher on this ground unless the items
require different action by him, such as entry in different
registers. This order does not apply to the allowances of a
Government servant, or of an establishment, as in such a case
the whole of the allowances, even if belonging to two or more
major heads of account should be drawn on a single bill if they
are chargeable wholly to the revenues of the State.
(f) Unless the Government have expressly authorised it
in the case, of any specified office, no bill or other voucher and
no payment order shall be signed by a clerk for the head of the
office, even if it is customary for the clerk to sign letters for
him when he is absent. No bill or other voucher and no payment
order shall be signed with a stamp. The head of an office may
authorise a gazetted Government servant serving under him to
sign bills, vouchers and payment orders for him but, if he does
so, he shall communicate the Government servant’s name and
specimen signature to the treasury or treasuries concerned. A
delegation of powers of this kind shall not in any way relieve
the Head of the office of his responsibilities for the accuracy of
the bills, etc., and for the disposal of the moneys drawn from
the treasury.
Note.- Whenever Head Accountant of the District
Treasury is in charge of the District Treasury during the absence
54

of District Treasury Officer on casual leave or on other duty

such as Inspection of sub-treasuries, etc., he shall sign the bills
and other vouchers of the District Treasury for and on behalf of
the District Treasury Officer.
When a claimant or payee is unable to sign his name
he may furnish his signature on a bill or other vouchers In the
form of a mark or preferably a thumb impression. No payment
shall be made on any bill or other voucher so signed unless
some person known to the Treasury or Bank, as the case may
be, appears with the payee and identifies him and attests his
mark or thumb impression in token of its genuineness. Signatures
in vernacular other than Kannada must always be transliterated.
(g) When any kind of bills is prepared in duplicate or
triplicate, only one copy should be signed or countersigned in
full, the other copy or copies being initialled.
(h) When the payee sends a messenger to receive payment
on a voucher, the Signature of the messenger or his thumb
impression, if illiterate, should also be taken on the voucher as
a proof of the messenger having actually received the money on
behalf of the payee.
(i) When a rule or order requires that bills of a certain
kind shall be countersigned before payment, no such bill shall
be presented at the treasury until it has been duly countersigned.
(j) When a bill relates to a charge incurred under a special
order of sanction, the particulars of the order shall be entered
on the bill, and a copy of it shall be attached to the bill and duly
certified to be a true copy by the Government servant who
signs the bill.
55

(k) Dates of payment should, whenever possible, be noted

by payee in their acknowledgments on sub-vouchers, acquittance
rolls. etc. If, for any reason, such as illiteracy or the presentation
of receipts in anticipation of payment under Article 23, it is not
possible for dates of payment to be noted by the payees, the
dates of actual payment should be noted by disbursing officers
on the documents under their initials, either separately for
each payment or by groups as may be found convenient.
(l) In cases in which the endorsement on a bill is
unauthorised, incomplete or otherwise, irregular, the treasury
officer should refuse payment of the bill and return it to the
person with a memorandum explaining why payment is refused.
(m) When a bill is presented by a person who is not the
drawing officer himself or his duly authorised agent (banker),
he shall be required to produce a letter in Form KTC. 12,
authorising him to receive payment. The signature of the
messenger or his thumb impression, if illiterate, shall be taken
on the bill as a proof that the messenger actually received the
money on behalf of the drawing officer.
Pay to .....................................................(designation)
whose specimen signature below, is hereby attested.

Signature of Messenger,
Signature of the Drawing Officer.
Note 1.- The above endorsement should not be
combined with other endorsements on the bills as for example,
‘Received Payment’ or ‘Received content’ usually recorded by
the drawing officers at the end of the bill. In other words, the
56

drawing officers’ discharge should be quite separate from the

authority to receive payment on their behalf.
Note 2.- The procedure laid down in clause (m) should
be followed also when payment has to be made to a firm or a
private party for service rendered or supplies made to
Government.
INEVITABLE PAYMENTS
24-A. It is an important financial principle that money
indisputably payable should not, as far as -possible, be left
unpaid [vide also Article 20 (b)] and that money paid should
under no circumstances be kept out of accounts a day longer
than is absolutely necessary even though the payment is not
covered by proper sanction. It is no economy to postpone
inevitable payments even for the purpose of avoiding an excess
over a grant or appropriation and it is very important to ascertain,
liquidate and record the payment of all actual obligations at the
earliest possible date. It must be borne in mind that if an
inevitable payment is required to be made in the absence of
funds, the error lies not so much in the payment as in the
entering into of the relevant liability.
Note.-When preparing Budget Estimates or applying
for additional grants or appropriation suitable provision should
always be made for anticipated liabilities.
24-B. A Disbursing Officer may not on his own authority
authorise any payment in excess of the funds placed at his
disposal; but absence of funds should not necessarily prevent
the payment of any sums really due by Government. If the
disbursing officer is called upon to honour a claim which is
certain to produce an excess over the allotment or appropriation
57

at his disposal he should take the orders of the administrative

authority to which he is subordinate before authorising payment
of the claim in question.
It is the responsibility of the administrative authority
to arrange for necessary funds either by re.-appropriation or by
obtaining a supplementary grant, If savings are not available
within the Grant to which the payment is required to be debited
or if payment cannot wait till funds are made available through
supplementary estimates or if the expenditure is on ‘New
Service’, the administrative authority should obtain necessary
advance from the Contingency Fund in accordance with the
Karnataka Contingency Fund Rules, 1957.
DOUBTFUL CLAIMS
25. A Treasury Officer must not honour a claim which on
the face of’ it is disputable; he will request the claimant to refer
the question to the Accountant General.
He may not undertake correspondence for a
Government servant making a claim to any special allowance
but will request him to address the Accountant General either
direct or through his official superior.
VERIFICATION OF CLAIMS BY TREASURY
OFFICERS
26. It must be remembered that the Treasury Officer has to
satisfy not only himself, but also the Audit Department, that the
claim is valid; and has further to prove that the payee has
actually received the sum charged. Careful attention must
therefore be given to the rules regarding the completion of
vouchers referred to in Article 24. The Treasury Officer must
have sufficient information as to the nature of every payment
58

he is making and is without excuse if he accepts a voucher

which does not formally record that information.
Note.- In respect of bills prepared on Computers, the
Treasury Officer may carry out only test checks of arithmetical
computations.
(i) In the case of establishment bills, the Treasury Officer
should see that the arithmetical computations are correct that
the drawer of the bill is a Government servant who had been
hitherto drawing such bills or that he has been specially
authorised by the Accountant General to draw such bills and
that it is countersigned by the proper authority, in cases where
such countersignature is required under any rule or practice.
1
[The Treasury Officers in addition, should also see
that the Compulsory Life Insurance premium payable to the
Karnataka Government Insurance Department are recovered at
the prescribed percentage from all the officials included in the
pay bill. This check should be exercised in such a way, that all
the Drawing Officers whose bills are drawn at the Treasury are
covered atleast once in six months. In exercising such checks,
he will be assisted by the District Insurance Officer. The District
Insurance Officer will intimate the cases of short deduction or
non- deduction of premia to the Treasury Officer as per Article
87 of this Code and also inform the Drawing Officer concerned.
The Drawing Officer, shall be responsible for deducting the
correct premium amount from the pay of the officials concerned
for the month following the month in which the communication
is received from the District Insurance Officer. If the Drawing
Officer fails to recover the prescribed premium amount even
then, the Treasury Officer will himself deduct the premium
1. Inserted by No. FD 9 TFC 80 dt. 28-2-1984 (w.e.f. 17-5-1984).
59

amount as mentioned by the District Insurance Officer from the

pay of the official and pass the bill for the reduced amount.]
(ii) The Treasury Officer, before paying a bill of a gazetted
Government servant, must see that the deductions, 1[at the
prescribed rate] if any, on account of insurance, etc., and those
required to be made by the Accountant General or other authority
have been made.
(iii) Treasury Officers, when encashing bills for Government
servants at a distance from the treasury, should furnish a note
explaining the amount of cash and transfer receipts, if any,
issued and any deductions or alterations that may have been
made in the bills presented. The note should be in bilingual
form, as it is important that the guard or messenger who
receives the money should ascertain that the amount stated agrees
with the actual cash or transfer receipts delivered to him, and
when that person is unable to read, the Treasury Officer should
himself explain to him the amount entered on the note.
(iv) Any deductions made by the Treasury Officer reducing
the net amount claimed on a bill should be explained in a
memorandum signed by him to be given to the presenter.
BILLS PAYABLE AT STATE HUZUR TREASURY
27. All salary, establishment, travelling allowance
contingent and other bills payable at Bangalore, are paid by
cheques drawn on the Reserve Bank of India, Bangalore by the
Treasury Officer, State Huzur Treasury, Bangalore, Similarly,
such claims payable at Gulbarga, Raichur and Bidar are paid by
cheques drawn on the Agency Banks by the District Treasury
Officers of Gulbarga, Raichur and similarly such claims payable
1. Inserted by No. FD 9 TFC 80 dt. 28-2-1984 (w.e.f. 17-5-1984).
60

at Gulbarga, Raichur and Bidar. Appendix VI of Karnataka

Treasury Code, Volume II details the procedure for payment of
claims by cheques on Banks.
28. The special rules prescribed for withdrawal of funds
from the Bank Treasuries are contained in Section C.III of
Chapter V of Karnataka Treasury Code Volume I and Appendix
IX of Karnataka Treasury Code, Volume II.
29. Payments of petty amounts of Rs.10 or less for
remittance of money on Government account within the State,
but outside the headquarters of a Government servant, or at a
treasury other than the one on which he has a drawing account
may be arranged for by money order, by all offices, the money
order commission incurred being debited to the contingent grants
of the respective offices.
PAYMENTS OUTSIDE KARNATAKA
30. Payments outside Karnataka
(a) In India-
As a general rule, all payments of Rs.50 and upwards
outside the Karnataka State should invariably be arranged for,
by means of Bank drafts, the Bank commission being charged
to Government.
Payments of less than Rs.50 may be arranged for by
means of money orders, the money order commission being
charged to Government.
Note 1.- Whenever Payments are made by postal money
order, separate receipts from the Payees prepared in accordance
with the instructions contained in Article 24 supra should be
obtained.
61

Note 2.- The refund of the Earnest Money Deposits

(vide Article 213 of Karnataka Treasury Code) to a party outside
the Karnataka State will be made by the Departmental Officer
concerned by means of Bank draft by drawing the money from
the Treasury, on deposit refund bill. The draft commission shall
be debited to office contingencies of the Departmental officer.
(b) Outside India .-
1
[In respect of payments to be arranged through an Indian
Mission on behalf of a State Government in foreign currency,
the State Accountant General will forward two copies of the
relevant sanctions with the concurrence of Ministry of Finance
issued by the State Government to the Controller of Accounts,
Ministry of External Affairs. One copy of the sanction duly
signed in ink should bear the special seal of authority of the
State Accountant General. The sanction will either specify the
exact amount payable in the designated authorised foreign
currency or indicate the manner in which the amount is to be
ascertained by the Mission. The Controller of Accounts, Ministry
of External Affairs, will thereafter authorise the payment by
forwarding the copy signed in ink bearing special seal to the
concerned mission].
Note.- If payments are required to be arranged for
urgently by means of Cablegrams, the charges incurred thereon
will be debited to the grants of the Departments concerned.
DUPLICATE OF COPIES OF DOCUMENTS
31. (a) No Government servant may issue duplicate or
copies of receipts granted for money received, or duplicate or
copies of bills or other documents for the payment of money

I. Sub. by No.FD 8 TFC 83 dt. 7-11-1988 (w.e.f. 20-10-1981).

62

which has already been paid, on the allegation that the originals
have been lost. If any necessity arises for such a document, a
certificate may be given that on a specified day, a certain sum
on a certain account, was received from or paid to a certain
person, and a fee of rupee one shall be levied for every such
certificate issued to a private party.
The above prohibition extends only to the issue of
duplicate on the allegation that the originals have been lost and
does not apply to cases in which, by existing rules, duplicates
are prepared and tendered with the originals. In the case of a
bill passed by the Drawing Officer/Controlling Officer for
presentation at a Treasury, but lost either before payment or
before presentation at the Treasury, the Government Officer
who drew the original bill shall ascertain from the Treasury that
payment has not been made on it before he issues a duplicate
thereof. The duplicate copy, if issued, must bear distinctly on
its face the word ‘duplicate’ written in red ink. The fact that a
duplicate bill has been issued shall be immediately
communicated to the Treasury Officer with instructions to refuse
payment on the original bill, if presented.
Note.- For the purpose of this Article, the Treasury
Officer on receipt of a request from any Drawing/Controlling
Officer shall after due verification from his records furnish a
certificate in the following form:-
“Certified that Bill No........... dated........................for
Rs........... (Rupees..................................................)reported by (the
drawing officer) to have been drawn by him on this Treasury in
favour of.............................. ...... ........... ............ has not been
paid, and will not be paid, if presented hereafter”.
63

(b) When a cheque is lost before payment and

a duplicate is required, a guarantee in the following form should
be furnished by the person in whose favour the cheque was
originally issued and an application made to the officer who
issued the cheque for the issue of a duplicate cheque:-
“I do hereby guarantee to make good to Government
the sum of Rs....................... being the amount of the cheque
bearing No.............and dated...................... ...due to .............in
case a double payment is made in consequence of the loss of
the original cheque. A duplicate thereof may be issued at my
requests”.
The Bank or the treasury drawn upon will see that the
payment on the cheque originally issued is thereafter stopped.
64

CHAPTER III
REVENUE RECEIPTS AND THEIR CHECK
Departmental Revenue
32. (a) In the case of Departmental Revenue, e.g., Land
Revenue, State Excise, Stamps, Jail Receipts, Registration
Receipts. Sales-Tax Receipts, etc., the duty of seeing that the
dues, of Government are regularly paid into the Treasury and
checked against demands, rests with the departmental controlling
officers, who receive from their subordinates, accounts and
returns claiming credits for the amounts paid into the Treasury
and to whom the Accountant General sends for comparison
with these, extracts from the accounts showing the amounts
brought to credit in them.
(b) Prompt action should be taken for recovery of moneys
due to Government.
Note 1.- The following dates for issue and receipt of
the above return are prescribed for adoption:-
Date of despatch from the 20th of 2nd Month
Accountant Generals Office. following.
Date of the return by the 10th of 3rd Month
Department after following.
verification.
Regarding the yearly Not later than the
accounts. end of June.
65

1
[Note 2.- Each Departmental Controlling Officer
should furnish a certificate to the Accountant General every
month to the effect that the receipt figures according to his
registers have been reconciled with those of the Accountant
General. This certificate should be sent not later than 15th of
the 3rd following month.
The Certificate noted below should be recorded in the
monthly pay bill of each of the Controlling Officer.
“I certify that the figures of Revenue Receipt received
from the Accountant General are reconciled with those received
from the subordinate officers and a certificate of reconciliation
due from me for the third previous month, has been furnished
to the Accountant General vide No...............Date... .... ......

Controlling Officer.]
REALISATION OF DUES TO GOVERNMENT
33. (a) Every Government servant who is responsible for
the collection of any moneys due to Government should see
that demands are made at once as payments become due, that
effective steps are taken to ensure the prompt realisation of all
amounts due and that proper records are kept to show in respect
of items of revenue whether recurring or non-recurring, the
assessments and demands made, the progress of recoveries and
the outstanding amounts due to Government. The controlling
officer of every department of Government should closely watch
the progress of the realisation of the revenues under his control
and check the recoveries made against the demands.

1. Inserted by No. FD 18 TFC 78 dt. 26-6-1979 (w.e.f. 16-6-1979).

66

(b) If any wrong credits are brought to notice by the

controlling officer, consequent on the check of recoveries, he
should at once inform the Accountant General to enable the
later to effect necessary corrections in the accounts on hand. If
any credits are claimed but not found in the accounts, it is
usually more convenient to make enquiries first of the
departmental officer.
Similarly, in the case of funds managed by Government
servants, detailed accounts should be kept by them to whom the
Accountant General will send monthly, for comparison and
verification, the figures passing through his books. To facilitate
comparison, the ‘Accountant General’ will enter separately
the figures appearing in the Treasury cash account and the
adjustments and corrections made in his office explaining the
latter in the remarks column.
VERIFICATION OF CREDITS
34. Every departmental controlling officer should obtain
regular accounts and return from his subordinates for the amount
realised by them and paid into the treasury and consolidate the
figures In a register so as to show the total receipts for each
month classified according to the heads of account in the Budget
Estimate.
The subordinate officers are required to send their
accounts/returns only after verification of credits shown therein,
with those in the treasury accounts. To ensure that this has been
done they should furnish a certificate in their accounts/returns
as under:
Certified that credits included in the accounts/returns
have been verified and agreed with those in the treasury accounts.
(Signature.)
67

Note.- For detailed procedure in this behalf See

Article 329 (V).
(1) It is essential that the accounts of the departmental
controlling officers should not be compiled from returns of the
Treasury. But the Treasury Officer is, in some cases, required
to verify returns prepared for submission to departmental
controlling officers. It is the duty of Tahsildars and Deputy
Commissioners to have the “Demand, Collection and Balance
Statement” prepared in the Accounts Department of their office
independently of the Treasury Department and then get them
verified with the Treasury figures.
(2) A reconciliation of departmental revenue figures with
those of actual credits into the Treasuries on which the accounts
of the Accountant General are based is of the utmost importance.
Such a comparison is the only check on the proper realisation
of departmental revenue, and every department should maintain
regular accounts of revenue, which should be carefully verified
every month with the credit statements received from the
Accountant General.
(3) Controlling Officer should promptly compare the
returns received from District Officers with those received from
the Accountant General and have all difference reconciled as
early as possible, in communication with the District Officers,
and if necessary, with the Accountant General. This is specially
important in the case of the returns for March as all corrections
required in the books of the Accountant General should be
effected before the accounts of the year are closed.
(4) All differences between the treasury and departmental
officers’ Classification Of receipts would be avoided by the
latter remitting money to the Treasury with challans showing
the proper heads of account.
68

(5) The departmental accounts should be verified with those

of the Treasury only after both are independently compiled and
any difference discovered in the course of such verification
should be simply intimated to the department concerned and
only such corrections as are warranted by details found in the
challans, should be made in the treasury accounts. If the challans
themselves are inaccurately prepared, the treasury should require
the departments concerned to correct them before complying
with their request to alter the classification once made in the
treasury accounts.
FINES
35. The duty of realising fines and of checking the receipts
and refunds rest with the Government servants of the
departments concerned.
Each Court, Civil or Criminal, is required to submit,
to the District Judge or the District Magistrate, as the case may
be, on the last working day of each calendar month a statement
in Form 4, of Fees, Fines, etc., realised in each Court and
remitted to the Treasury during the month.
The statement should be made up for the account month
of the District Treasury or Taluk Treasury with which the Court
deals.
The District Judge and the District Magistrate, should
each consolidate these returns into a monthly fines statement
for the Courts under him, and forward it to the Treasury Officer,
as soon as possible, after the beginning of the following month,
for verification of the amounts shown as remitted into the
Treasury with the credits appearing in the Treasury account.
The Treasury Officer should certify as to the correctness of or
otherwise of these amounts. When there is any discrepancy
69

between a consolidated statement and the Treasury account, the

Treasury Officer may, if necessary, before giving his certificate,
request the District Judge or the District Magistrate, as the case
may be, to explain the discrepancy.
(i) Compensation fines due to an injured party which are
creditable to deposits, and fines which, under competent
sanction, are credited to a Municipal or other Local Funds will
be excluded from this return.
(ii) Fines to be credited to Municipalities or other Local
Funds will be entered in separate registers for each Municipality
or Fund, and when the Municipality or Fund banks with a local
treasury, the amounts will be remitted by the Court direct to the
Treasury for being credited to the account of such fund.
(iii) Courts realising arrears of Municipal Taxes under the
Municipal Acts or fines which under any law in force are credited
to municipal or other Local Funds, will furnish at the end of the
month in which the realisations are effected, a statement in the
prescribed form,(No.194 Criminal) to the Municipality or other
body concerned.
36. A register in Form 5 will be maintained in the Offices
of the District Magistrates and the District Judge, for
consolidating the figures of the several Courts in each month.
As the District Judge will receive statements from Courts situated
in different Districts, the figures of the Courts of each District
will be entered on separate pages in the register.
(1) All fines realised by the Police on warrants should be
paid, as far as possible, into the Court concerned for payment
into the District Treasury; but when the fine is realised in a
Taluk, it must be paid into nearest Taluk Treasury and a receipt
obtained, which the police officer will send with the warrant to
70

the Court. The Court will then enter the fine in the proper
register as realised and as paid into the Taluk Treasury, sending
the Taluk Treasury receipt to the District Treasury.
(2) All fines levied and confiscation ordered under the
State Excise Regulations by Judicial Officers should be shown
in the separate column the statement of fees and fines.
(3) When any amount is realised in any district on account
of a fine imposed in another district of the State the amount
should not be remitted to the Court which inflicted the fine, but
should be treated for the purpose of the fines statement, as if
a fine equal to the amount realised had been inflicted by the
Court in which it is realised. The Court which realises the
amount should send an advice of the recovery to the Court
which inflicted the fine, and should also make a note of the
Court to which the amount realised relates, against the credit in
its fines register, and monthly statement. The Court which
inflicted the fine should, on receiving the intimation, note in its
fines register, and monthly statement, the amount of the recovery
so advised, and the name of the treasury into which the amount
was paid.
37. All fees and fines, civil or criminal, stamp penalties,
deficient stamp duty, and any other items belonging to
Government realised by Court will be entered in remittance
books, one to be headed “Administration of Justice” and the
other “Stamps”, with particulars of the date of remittance, nature
of item and amount. The books will be signed by the Nazir and
the Judge in the proper columns and sent with the money to the
treasury within two days to be credited under the proper head.
The Treasurer and the Treasury Officer will sign in the proper
columns and return the books, At the end of the month the
entries will be totalled by the Nazir and forwarded to the treasury,
71

where the totals will be checked with the Treasury account and
signed by the Treasurer and Treasury Officer, if correct.
Note 1.- Provision of Note 1 below Article 4 are also
applicable.
Note 2.- The annual Cash Balance statements of Civil
Courts and the half-yearly Fines Statements of Criminal Courts
will be got certified by the Treasuries before Submission to the
High Court. To enable the treasuries to furnish these certificates,
the Courts will furnish them with particulars of remittances and
a copy of the remittance register relating to the period.
MISCELLANEOUS DEMANDS
38. Miscellaneous demands of Government not falling
within the ordinary revenue administration are entered by the
Accountant General in a register of special recoveries and their
realisation watched by him. The Departmental Officers must,
however, take the initiative for the recovery of these demands.
39. In respect of supplies made or services rendered by
Service Departments to Local Bodies, etc., (e.g., value of
medicines supplied from the Medical, Stores value of vaccine
lymph supplied from the Vaccine Institute, cost of stationery
supplied from the Stationery Depot value of printing work done.
at the Government Presses), the departmental officer concerned
should see that the value thereof is recovered and remitted to
the Treasuries promptly. For such supplies and services, bills
containing full details of the transactions, (e.g., particulars of
work done or supplies made, institution to which the bill relates,
etc.), should be sent to the concerned offices promptly. These
bills should be numbered serially and a record of bills sent out
should be maintained in Form 6. The receipt of replies from the
offices concerned should be watched and necessary action taken
72

promptly in cases of delay. A copy of this Register, i.e., a

statement showing the bills sent out during each quarter (with
columns of recoveries left blank) will be sent to the concerned
State Local Audit Circle for taking action in cases of delayed
payments.
CLASSIFICATION
40. Rules regarding the classification of receipts are found
in the Budget Manual.
RENTS OF PUBLIC WORKS DEPARTMENT
BUILDINGS
41. Rents due from Government servants occupying
Government buildings shall be recovered regularly by deduction
from the salary or establishment bills of such Government
servants.
(1) Changes in the amount of rent to be paid by the
occupants of Government buildings owing to increase in the
capital cost of buildings, remissions, occupation for a portion if
a month only or other causes will be intimated by Executive
Engineers to the Government servants concerned. In the absence
of such information, a Government servant, gazetted or non-
gazetted, will continue to deduct from the Salary or
Establishment bill, the amount deducted in the previous bill on
this account.
(2) All gazetted Government servants and official superiors
in the case of non-gazetted Government servants who occupy
Government buildings and are liable to payment of rent therefor,
should intimate to the Executive Engineer any change in their
pay which may affect the rate of rent and send a quarterly
report whether there is any change or not so as to, enable the
Executive Engineers to levy rents in accordance with rules.
73

(3) When recoveries of rent are to be effected through a

Treasury Officer, a demand in Form No. KFC-7 (Statement of
rent recoverable in cash or by deduction from pay bills) should
be sent, in duplicate, by the 25th of each month to that officer
or the Accountant General in the case of officers covered by
I.R.L.A. system, who will make the necessary recoveries and
return one copy of the statement duly completed before the
close of the following month, the other copy being attached to
the bills from which the recovery has been made vide Article
274 of Karnataka Treasury Code. In the case of rents recoverable
from non gazetted Government servants, whose pay is drawn
by the heads of their officers on a consolidated bill cashed at
the Treasury, a consolidated statement of demand, in Form No.
KFC-7 will be sent to the drawing officer concerned, in
duplicate, by the 25th of the month to which the demand relates,
for taking similar action.
(4) When rent, for any reason, is not regularly paid by a
Government servant, the Executive Engineer will intimate the
concerned Treasury Officer, in the case of gazetted officers
drawing their salary on such treasuries, the Accountant General,
in the case of gazetted officers whose salary is drawn by the
Accountant General under the I.R.L.A. system and the concerned
drawing officer in respect of a non-gazetted Government
servants, by a special letter to recover the rent from the salary
bill, etc., of the Government servant concerned and endorse a
copy of the same to the Government servant, for his information.
The Treasury Officer, Accountant General or the drawing officer
on receipt of such an intimation from the Executive Engineer
should recover the amount from the salary bill, etc., straight-
away and they should not conduct any correspondence with the
tenants on the subject of their rent but should leave it to the
Government servant to represent his/her case to the Executive
Engineer.
74

(5) If the Government servant is permitted to occupy the

quarters even after handing over charge of the post or does not
vacate the quarters, that information should be intimated to the
authority responsible for issuing the Last Pay Certificate well in
time by the Public Works Department Officers. In case of late
receipt of this information from the Public Works Department
Officers regarding demand for rent after the issue of Last Pay
Certificate, the Treasury Officer may forward the demand to the
new Treasury from where the transferred officer will draw his
salary. The future demand for rent upto the date he vacates
the quarters should be sent to the officer who disburses his
salary in respect of the post to which he is transferred. Article
275 (c) (ii) of the Karnataka Treasury Code may also be referred
to.
(6) The statement of deductions to be attached to the
establishment bill will be in Form 7.
(7) In order that the rents due are properly assessed, the
Accountant General will send to the Divisional Officers/ officers
concerned a copy of the Pay slip issued to each Gazetted Officer
who is occupying a Government residential building. For this
purpose, the Divisional Officer/Officer should send to the Audit
Office, as soon as a Gazetted officer has occupied a building,
intimation regarding the date from which rent is recoverable
from that Officer. The Audit Office will then intimate the
Divisional Officer/ Officer the rate of pay of the Gazetted Officer
and will also continue to endorse copies of the Pay slips
whenever there is a change in rate of pay when the building is
vacated by the Officer, the fact should again be reported to the
Audit Office by the Divisional Officer/Officer.
Each Gazetted Officer who will be occupying a
Government residential building should also intimate the Audit
75

Office the particulars of the building occupied by him, the date

of occupation and the Public Works Divisional Officer/Officer
responsible for watching the recovery of rent in respect of that
building, as soon as he occupies the building, so that there may
be no complication in regard to date of occupation, etc. On
vacating the building, a similar intimation has also to be sent
to the Accountant General.
RECOVERY OF RENTS OF RESIDENTIAL
BUILDINGS IN CHARGE OF DEPARTMENTS
OTHER THAN PUBLIC WORKS
42. Heads of Department of Other Civil Departments
concerned will be responsible for the due recovery of rents of
residential buildings under the charge of their respective
departments. The main Principle of assessment and procedure
for recovery of rent of such buildings will be the same as in the
case of other residential buildings in charge of the Public Works
Department. Concession in the shape of reduced rents or free
quarters will be governed by specific orders of Government
passed from time to time.
Note.- Heads of Departments will furnish the
information to the Accountant General or the Treasury Officer,
as the case may be, in respect of Officers and officials occupying
departmental residential buildings.
When new quarters are constructed and rent is to be
recovered, the Government servant in charge will, in consultation
with the Executive Engineer of the Division, Prepare a statement
for the calculation of rent liveable in accordance with the rent
rules for buildings in charge of the Public Works Department
and obtain the approval of Government through the Accountant
General.
76

Rents recovered on account of buildings in charge of

departments other than the Public Works Department should be
treated as departmental revenues and not as revenues of the
Public Works Department.
Recovery of rents due on Forest Buildings are regulated
in accordance with the rules contained in the Karnataka Forest
Account Code.
VEHICLE TAX
43. All Taxes collected under the Karnataka Motor
“Vehicles Taxation Act. 1957, shall be credited to the head XI
Taxes on Vehicles”.
44. According to Section 20 of the Act, (i) there shall be
paid to each local authority, which prior to the commencement
of the Act, was being paid any amount, under the previous
Acts, a sum equivalent to the said amount and (ii) there shall
be paid annually to each local authority which, at the
commencement of’ the Act, was levying tax or toll or both on
motor vehicles, a sum equivalent to the average annual income
derived by such local authority during the three years ending on
31st day of March 1957 from such tax or toll or both, as the
case may be.
Note.- The following procedure should be followed
for the payments of these compensation amounts:-
The amount payable to each Local Body under the
statute shall be determined by the Commissioner for Transport
and a formal sanction order issued by him. On the basis of this
sanction, the Regional Transport Officer concerned will prepare
a bill for the amounts due to Local Bodies under his jurisdiction
and present the same to the concerned District Treasury
77

requesting the Treasury Officer to credit the deposit account of

the Local Bodies concerned with the amount due to the particular
Local Body. The Treasury Officer, shall furnish to each Local
Body, a copy of its monthly transactions.
REMISSIONS AND ABANDONMENT OF CLAIMS TO
REVENUE
44-A. If a claim be relinquished, the value of the claim shall
not be recorded on the expenditure side as a specific loss (vide
Article 377).
Remissions and abandonment of claims to revenue shall
be reported to the Accountant General in the form of an annual
statement, as indicated below for inclusion in the Appropriation
Accounts of Government.
(a) The statements should show the remissions of revenue
and abandonment of claims to revenue sanctioned during the
preceding year by competent authorities in exercise of the
discretionary powers vested in them otherwise than by Law or
Rule having the force of Law. For inclusion in these statements,
remissions and abandonments should be classified broadly with
reference to the ground on which they were sanctioned and a
total figure should be given for each class. A brief explanation
of the circumstances leading to the remission should be added
in the case of each class.
(b) Subject to any general or special order issued by
Government, individual remissions below Rs.100 need not be
included in the statements.
(c) The statements for a financial year should be arranged
to be sent to the Audit Office before the 1st June of the next
financial year.
78

44-B. (1) The Electricity Tax payable to Government under

the Karnataka Electricity (Taxation on Consumption) Act, 1959,
shall be collected by the licences along with the cost of energy
supplied, and credited to Government under the Head “XIII.
Other Taxes and Duties, B, Electricity Duties, (i) Tax on
consumption of Electricity”.
(2) The licensees are entitled to the reimbursement of
collection charges at the prescribed rates on the amount of tax
collected. The charges should be claimed by them in payees
receipts (Form 3 K.F.C.). which will be payable at the Treasury
after they are countersigned by the Electrical Inspector to
Government. The expenditure is debatable to “13-Other Taxes
and Duties, Charges under the Electricity Acts-5. Other charges.”
(3) The Electrical Inspector to Government will watch the
prompt realisation of the tax revenue.
1
[44-C SHARE OF ENTERTAINMENT TAX TO LOCAL BODIES

The following procedure shall be followed for the

payment of share of Entertainment Tax to Local Bodies under
Section 17 of the Karnataka Entertainment Tax Act 1958:-
The Commercial Tax Officer of the area concerned
sanctions the payment of compensation to each local body for
each quarter. He should prepare a payee’s receipt for the amount
payable to each local body and present the same to the District
Treasury along with a copy of his sanction order and a
challan in duplicate requesting the Treasury to credit the amount
of the payee’s receipt to the deposit account of the local body
concerned. The Treasury Officer shall furnish to each Local
Body a copy of its monthly transactions.]

1. Inserted by No.FD 2 TFC 87 dt.16-10-1987 (w.e.f. 16-10-1987).

79

CHAPTER IV
RESPONSIBILITIES FOR MONEYS WITHDRAWN
Treasury Officers - Responsibility of the Treasury
OFFICERS IN RECOVERING AMOUNTS
DISALLOWED BY THE ACCOUNTANT
GENERAL
45. When the Accountant General disallows a payment as
unauthorised, the Treasury Officer should promptly recover the
amount disallowed, without regard to any representation or
protest, and if the item is a recurring one, should also refuse to
make similar payments in future until the Accountant General
authorises him to do so; that no warning slip has been received
by the Government servant retrenched, or that being received,
it has been answered, are facts with which the Treasury Officer
has no concern. The Accountant General is responsible for seeing
that Treasury Officers carry out his instructions. His objection
must prevail absolutely and immediately over every authority
under the Government.
If a Treasury Officer received an order to make a
recovery from the salary, etc., of a Government servant who
has in the meantime been transferred to another district, he
should immediately forward it to the Treasury Officer of that
district. The Treasury Officer should not enter into any
correspondence regarding any such recovery.
Recoveries may not ordinarily be made at a rate
exceeding one third of pay unless the Government servant
affected has (a) in receiving or drawing, the excess, acted
contrary to orders of without due justification or (b) taken an
advance for a specific purpose, not utilised it for the purpose
80

for which the advance was sanctioned within the prescribed

period and failed to refund the outstanding amount within the
stipulated date.
46. Objections and orders which arise out of the
examination by the Accountant General of the Treasury accounts
are communicated to the Treasury Officers and departmental
officers by letters, audit memoranda, or periodical objection
statements. To these, the earliest attention should be given and
it is most important that these objection statements should be
returned punctually within the prescribed period and also that
the replies to them should be such as will enable the Accountant
General to adjust the items under objection without further
correspondence.
47. Every Treasury should maintain a register of recoveries,
in which separate pages should be set apart, as may be
convenient, for each Government servant or department entitled
to draw bills etc., on the treasury, As soon as any order to make
a recovery is recovered, whether through an objection statement
or a separate slip, an entry should be made in the register.
Before any bill is passed for payment, the register should be
consulted to see whether any recovery has to be made. When
any, amount is recovered, it should be duly noted in the register
along with the number and date of the voucher.
48. The Treasury Officer should ordinarily recover from
the next pay bill of the Government servant concerned any
amount which the Accountant General orders him to recover be
account of pay and similarly from the next Travelling Allowance
bill any recovery ordered on account of Travelling Allowance.
When, however, a recovery has to be made on account of
Travelling Allowance and the Government servant concerned
does not present a Travelling Allowance bill within a month, he
81

should be requested to refund the amount at once in cash and

if he fails to do so, it should be recovered from his next pay
bill.
DRAWING OFFICERS
49. A Government servant supplied with funds for
expenditure shall be responsible for such funds until an account
of them has been rendered to the satisfaction of the Audit Office.
In cases in which the acquittances of the actual payees are not
sent for audit, the Government servant supplied with funds
shall be held personally responsible for seeing that the payments
are made to the person entitled to receive them.
If any doubt arises as to the identity of the Government
servant by whom account of such funds shall be rendered, it
should be decided by Government.
DISBURSEMENTS MADE ON BEHALF OF
GOVERNMENT
50. (a) (i) Subject to the provisions of clause (b) below, a
Government servant shall obtain, for every disbursement which
he makes on behalf of Government including every repayment
of moneys which have been deposited with the Government a
voucher setting forth full and clear particulars of the claim,
using as far as possible the particular form, if any, prescribed
for the purpose, and shall obtain at the time of making payment,
either on the voucher or on a separate paper to be attached to
it, an acknowledgement of the payment signed by the payee by
hand and ink. In doing so, he shall observe carefully the
directions contained in Articles 23 and 24 supra in regard to the
stamping of receipts and the preparation of vouchers. When
possible, he shall require the payee to note the actual date of
payment in his acknowledgement. When it is not possible for
82

the payee to note the actual date of payment either because he

is illiterate, or because he is required to present a signed receipt
before payment is made, the disbursing officer shall enter the
actual date of payment on the relevant voucher with his initials
either separately for each payment or for groups of payments,
as may be found convenient.
Note 1.- As adjustment bills for ‘nil’ amount involve
no payment, it is not necessary to insist upon any
acknowledgement of payment in respect of such bills.
Note 2.- A single receipt, stamped where necessary
given by a payee in acknowledgement of several payments or
a lumpsum payment, either in cash or by cheque, made to him,
on one occasion, shall constitute a valid acquittance and the
disbursing officer, in such cases, should give cross reference on
all vouchers to which the receipt relates.
(ii) If a payee is not able to write, his signature on the
acknowledgment should be taken in the form of his mark or
preferably by his thumb impression attested invariably by some
known person.
(iii) If a payee signs his acknowledgement in a language
other than in English he shall be required to write also the
amount acknowledged in words in that language in his own
handwriting. His acknowledgement including the amount
acknowledged and any remark made by him, shall be translated
into English and his signature shall be transliterated in roman
characters. If a payee cannot sign his name in a script known
to the disbursing officer or a member of his staff or if he can
sign in a script known to one of them but cannot write the
amount acknowledged in words in It, the procedure applicable
when a payee is not able to write shall be followed.
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Exception.- A special procedure is prescribed for

obtaining the payee’s acknowledgements of payment on account
of the pay and allowances of Government servants-see Article
52 infra.
(b) If, in very exceptional circumstances, it is quite
impossible to furnish a proper voucher with the payee’s
acknowledgement in support of a payment, a certificate of
payment showing the particulars of the claim, signed by the
disbursing officer and endorsed by his immediate superior shall
be placed on record. Particulars of the claim should invariably
be set forth.
Note.- Production of vouchers for cooly charges, cart
or jutka hire, incurred on public service in the course of journeys
by Railway or public buses need not be insisted on provided
the charges are reasonable and are supported by a certificate of
the Government servant incurring them that the amounts were
actually paid by him for the purpose.
(c) If a disbursing officer anticipates any difficulty in
obtaining an acknowledgement in the proper form from a person
to whom any moneys are due he shall decline to deliver the
cheque or cash to him or to make a remittance to him as the
case may be, until he receives a proper acknowledgement of the
payment with all the necessary particulars. Whenever a payment
is made by remittance, a note of the date and mode of remittance
shall be made on the bill or voucher at the time of remittance.
When a remittance is made by postal money order, its purpose
shall be briefly stated in the acknowledgement portion of the
money order form in continuation of the entry “Received the
sum specified above on.....................” and sufficient space shall
be left below the manuscript addition for the signature or thumb
impression of the payee.
84

(d) When an article is obtained by value payable post, the

value payable cover, together with the invoice or bill showing
full details of the items paid for, shall be treated as a voucher,
and the disbursing officer shall note on the cover that the
payment was made through the post office and includes postal
commission.
(e) A disbursing officer may retain a certified copy marked
“Duplicate” of a receipted voucher, when this is necessary in
order to complete the record in his office, but the payee shall
not be required to sign any such copy or to give a duplicate
acknowledgment of the payment.
51. No voucher shall be treated as a valid voucher unless
it bears a distinct pay order. specifying the amount payable both
in words and in figures separately and signed or initialled, and
dated by hand and in ink by the responsible disbursing officer.
Cashiers and other Government servants, who are authorised to
make payments on passed vouchers, shall not make any payment
on a voucher unless it bears a pay order satisfying these
requirements.
ACQUITTANCE ROLL
52. The Head of the Office is personally responsible for
all moneys drawn as pay, leave salary allowances, etc., on an
establishment bill signed by him or on his behalf until he has
paid them to the persons who are entitled to receive them and
has obtained their dated acknowledgments, duly stamped when
necessary. These acknowledgments shall be taken as a rule on
the office copy of the bill. When the Head of the Office
concerned considers that an establishment is so large or scattered
that the payee’s acknowledgments cannot without undue
inconvenience be obtained on the office copy of the bill, he
85

shall maintain a separate acquittance roll In Form 9 and obtain

the Payee’s acknowledgements in it.
Note 1.- A separate acquittance roll may also be
maintained in every office in respect of payments (including
refunds) made to private persons for which vouchers are not
required to be sent to the Audit Office under the rules.
Note 2.- The acquittance rolls or office copies of bills
containing acknowledgments of payees are not required to be
sent to the Accountant General, but being important records
they should be preserved carefully for the periods prescribed.
In respect of payments made through acquittance rolls
or Office copies of bills on the pay day, the disbursement
certificate which, should be recorded at foot of the last page
of the acquittance roll or office copy of the bill should invariably
be signed by the disbursing officer in token of the total amount
actually paid. The “paid” stamp should also be affixed against
the daily total shown as disbursed in the acquittance roll or
office copy of the pay bill and attested by the disbursing officer.
In respect of undisbursed amounts or amounts drawn
on supplemental and other bills paid subsequently the items
should be stamped “paid” individually in the acquittance roll or
office copy of the bill, as the case may be and attested by the
drawing officer while signing the cash book.
53. The Acquittance Roll should be drawn after approval
of the pay and Travelling Allowance bills by the Head of the
Office.
In cases in which Government servants cannot
themselves take payment at the office, stamped and signed
receipts should be separately obtained from them, the signature
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of the agents being obtained on the letters of authority granted

by the former.
This register should be examined every month by the
Head of the Office or other Government servant deputed by
him for the purpose, who should satisfy himself that proper
receipts have been taken for all sums disbursed and that the
amounts of cashed bills and payments have been posted in the
cash book.
Note 1.- For amounts recovered at the time of
disbursement of salary from Government servants in cash, such
as recoveries on account of court attachment or on account of
purchase from Jails or Industrial Institutions, a receipt should
be given as required in Article 6.
Note 2.- A Bill Register, in Form No. K.F.C. 9-A,
should be maintained by the all Heads of Offices who are
authorised to draw moneys from the treasury on bills signed by
them. The register should be reviewed monthly by the officer
concerned and the result of the review recorded thereon.
“PAYMENT OF LEAVE SALARY”
54. Subject to any orders of procedure that may be specially
prescribed by Government in the case of Gazetted Government
employees and in the Departmental regulations in the case of a
non-Gazetted Government employees, the leave salary of
Government Employee shall be drawn from the Treasury or
office of disbursement from which his pay was being drawn
immediately before proceeding on leave. Normally, the
Government employee shall make his own arrangements for
getting his leave salary remitted to him. However, if the
employee during the period of earned leave exceeding a month,
specially requests the Treasury Officer (in the case of Gazetted
87

Employees) and disbursing Officer (in respect of non-Gazetted

employees) for the remittance of his net dues by means of
demand draft, the officer concerned should arrange to. send to
the Government employee demand draft at par, by registered
post. The charges incurred in this regard should be debited to
office contingencies. In cases where a period of leave is followed
by transfer, such portion of leave salary as would not be drawn
at the old station may, however, be drawn at the treasury or
office of disbursement from which the pay in respect of the
new post is drawn.
55. If a Government servant who is entitled to receive any
moneys drawn from the Treasury on his behalf fail to claim
payment in person or in accordance with the preceding Article
before the end of the month in which they are so drawn, the
moneys drawn for him shall ordinarily be refunded by short
drawing in the next bill and drawn afresh when he claims them,
if the rules regarding arrears claims permit it. When the drawing
officer consider that the earlier refunding of any such moneys
would cause undue inconvenience, he may retain them for a
period not exceeding three months, but he will continue to be
held personally responsible for them and must make satisfactory
arrangement for keeping them safely. Undisbursed pay,
allowances and leave salary shall not under any circumstances
be placed in deposit.
56. In addition to watching, the disbursement of pay and
allowances through the office copies of bills or the acquittance
rolls, a register in Form No.10 shall be maintained in each
office for effective watch over the disposal of undisbursed
amounts. The Head of the Office should review all the
undisbursed items regularly. The same register shall also be
used, when necessary, for watching the disposal of the
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undisbursed balances, if any, of amounts, drawn on contingent

bills in excess of the Permanent Advance.
Note.- In this Register, entries of the total amounts of
bills or cheques and particulars of amounts undisbursed shall
be made against each bill, serially, and subsequent payment
thereof entered in the appropriate Columns of the Register and
the Cash Book. Each such entry should be attested by the
disbursing officer. From this register, an abstract of amounts of
pay and allowances remaining undisbursed for 3 months should
be prepared to ensure their refund either in cash or by short
drawl from the next bill.
CUSTODY OF VOUCHERS AND ACQUITTANCES
57. All vouchers and acquittances are important documents
and shall be filed and preserved carefully in the office concerned,
when they are not sent elsewhere for audit in accordance with
the rules.
CANCELLATION OF SUB-VOUCHERS
58. (a) Sub-vouchers to contingent bills should be
cancelled in such a manner that they cannot subsequently be
used fraudulently to claim or support a further payment.
(b) Whenever a drawing officer signs a fully voucher
contingent bill for presentation at the treasury for payment or a
detailed contingent bill for submission to the controlling
authority, he should at the same time cancel all the sub-vouchers
which relate to the bill but are not attached to it or retained for
record in his office. He should endorse the word “cancelled”
across each such sub-voucher in red ink or by a rubber stamp,
and initial it with the date. He should certify on the bill that all
the sub-vouchers relating to it other than those attached to it
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have been so cancelled that they cannot be used again. When

the amount of a sub-voucher exceeds the permanent advance,
it should be cancelled in the manner described above as soon
as the payment has been made and entered in the contingent
register.
Whenever a controlling authority forwards a detailed
contingent bill to the Accountant General, he should cancel in
the manner described above, all the sub-vouchers received with
the bill, but not required to be forwarded to the Accountant
General and should certify on the bill that all such sub-vouchers
have been so cancelled that they cannot be used again.
CHECK OF CHARGES
59. The Accountant General is responsible for the audit of
all expenditure charged against Government.
If any item of expenditure is found to be irregular or
in excess of what is due, he proceeds to remove the irregularity
or recover the excess amount paid through the Treasury Officer,
and he usually issues warning slip to the drawing officer
concerned at the same time. When an item of expenditure is
less than what is actually due for payment, and the amount
involved is not insignificant, the Accountant General informs
the drawing officer of the fact, leaving him to prefer an additional
claim or not as he thinks proper.
60. Every Government servant should give proper attention
to all objections and orders received from the Accountant
General without any avoidable delay. If there should be any
delay in attending to them, a letter explaining the cause of
delay should be sent to the Audit Office.
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A Register shall be maintained in each office in Form

11 for recording the objections communicated by the Audit
Office. The fact that some of the objections are still under
reference is no reason for keeping back the statement. Such
cases may be extracted for subsequent explanation.
RESPONSIBILITY OF DRAWING OFFICERS AND
TREASURY OFFICERS
61. An administrative authority should not ordinarily
consider any representation or protest against a recovery ordered
by the Accountant General unless the representation or protest
is received within six months from the date when the
Government servant making the representation received the first
intimation of the order.
62. Every Government servant who draws bills for pay
and allowances or contingent expenses is primarily responsible
for the correctness of the amount for which each bill is drawn.
If any amount is drawn in excess of what is due, the drawing
officer will be required to make good the excess amount so
drawn. If the excess amount cannot for any reason be recovered
from the drawing officer, The Government servant, if any, who
countersigned the bill will be liable to make good any loss
arising from culpable negligence on his part and the Treasury
Officer who passed it will be similarly liable to make good any
loss arising from culpable negligence on his part. The Treasury
Officer who makes payments without pre-audit will be
responsible for checking any culpable errors and in the case of
change of office or of rate of salary of Government servants for
passing the new rate with reference to the orders directing the
change.
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Note 1.- The Treasury Officer is required under the

above ruling to examine the accuracy of the arithmetical
computations in a bill.
Note 2.- Besides gazetted Government Servant some
classes of non-gazetted Government Servant, exercise the
privilege of drawing bills. Each treasury Shall maintain a correct
and up-to-date list of officers authorised to draw bills from the
treasuries.
63. Each head of an office will maintain a register in Form
12 for all special advances drawn by him. It is the duty of every
Government servant to see to the prompt adjustment of advances
and items under objection outstanding against him in the books
of the audit Office. If, owing to delay in dealing with the matter,
any amounts become unadjustable, they will be recovered pro
rata from all the Government servants during whose time they
remained under objection. Cases in which adjustments of
advances are unduly delayed will be reported to Government.
64. In the challan with which a cash recovery of service
payment is remitted to the treasury or in the bill in which such
recovery is adjusted by short-drawing, the number (sectional)
and date of the objection slip of the Audit Office should
invariably be entered and the nature of the original payment
(Salary Bill, Travelling Allowance Bill or Contingent Bill) should
also be specified. The challan presented by the Departmental
Officers without the above information will be returned by the
treasuries for supplying the omission.
65. The requisitions of the Audit Department for supply of
information necessary for purposes of audit should be complied
with by all departments promptly.
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CHEQUES ON TREASURIES
66. Cheque books required by Disbursing Officers
authorised to draw on Treasuries should be obtained by them
from the Treasury Officers on a requisition signed by the
Disbursing Officer himself.
Ordinarily not more than one cheque book will be sent
at a time.
67. A separate cheque book should be used for each
treasury (District or Taluk) and the drawing officer should notify
to the treasury the number of the cheque book which from time
to time he brings into use and the number of cheques it contains.
Each cheque book must be kept under lock and key in the
personal custody of the drawing officer, and when a transfer of
charge takes place, a note should be recovered over the signature
of both the relieved and the relieving officers showing the
number of unused cheques and cheque books made over and
received in transfer by them, respectively. The note should be
made in the Cash Book or other permanent register in which
the expenditure for which cheques are drawn is recorded.
Note.- In cases where withdrawal of funds by Cheques
is no longer necessary, all the cheque forms of cheque books,
which remain partly or wholly unused, shall be Cancelled by
writing the word ‘cancelled’ prominently across each cheque
form and counterfoil, with signature of the drawing officer, and
thereafter returned to the Treasury Officer concerned who shall
destroy them by incineration in the presence of the Director of
Treasuries or the Deputy Director of Treasuries, after keeping
a note of the fact in the relevant records of the treasury under
proper attestation.
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68. Whenever a Government servant draws a cheque other

than a cheque, the amount of which is typed in words with
perforated letters by a special cheque-writing machine he shall
see that it has been written across it at right angles to the type
the word “under” followed by an amount a little larger than that
for which he draws the cheque. No abbreviation such as ‘Eleven
hundred” for “One thousand and one hundred’ may be used.
The amount of a cheque shall be written in the manner prescribed
for bills [vide Article 24 (c) supra].
Note.- Under thirty rupees will mean that the cheque
is for a sum not less than Rs.29 but less than Rs.30, and similarly
‘under eight hundred rupees’ will mean that it is for a sum not
less than “Rs.799 but less than Rs.800.”
69. A common form of fraud in regard to cheques consists
in altering the word “one” into “four” by prefixing an “f” and
changing the “e” into an “r” as the figure can easily be altered
corresponding to 4. The word “twenty’ when written carelessly
has also sometimes been changed into “seventy”. A Government
servant who draws a cheque in which the word “one” or
“twenty” occurs shall therefore write the word very carefully in
order to make such a fraud impossible. The Treasury Officer
shall examine the words “four” and “seventy” and the
corresponding figures in cheques with special care.
Note 1.- The provisions contained in Article 24(d)
apply mutatis mutandis to corrections and alteration in cheques.
Note 2.- Important corrections in cheques, pay orders,
enfacements for payment at treasuries or Banks R.T.Rs., Cash
Order, etc., such as changes in the name of the payee, the
amount payable and the Treasury of payment, should be attested
by the full signature of the drawers.
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70. No advice of the issue of any cheque need be sent to

the treasury. As a general rule, no cheque shall be issued for a
sum less than Rs.10 except, when it is done in order to comply
with the provisions of law or a rule having the force of law.
Cheque shall be payable at any time within three months after
the month of issue; thus a cheque bearing date and time in
January is payable at any time up to 30th April.
Note.- If the currency of the cheque should expire owing
to its not being presented at the Bank or the Treasury within the
period specified above, it may be received back by the Drawing
Officer, Who should then deface it and issue a new cheque in
lieu of it. The fact of the defacement and the number and date
of the new cheque should be recorded on the counterfoil of the
old cheque, and the number, date And amount of the cancelled
cheque should be entered on the counter foil of the new cheque
issued. Necessary entries should be made in the relevant register.
71. When a Government servant is authorised to draw
cheques on Taluk Treasuries, he should give notice to the District
Treasury Officer, from time to time, of the probable amount of
his drawings on each Taluk Treasury in order that funds may be
provided as far as possible. Cheques drawn on Taluk Treasuries
should be distinguished by different numbers and letters from
those drawn against the District Treasury.
72. (a) When a Government servant draws cheques in
favour of another Government servant, he shall make it payable
to ‘Order’ only. When a Government servant draws a cheque in
favour of a person who is not in Government service, he may,
if the payee request him to do so make it payable to bearer. The
Treasury Officer shall not cash a cheque made payable to A.B.
or bearer if A.B. is a Government servant. All cheques/drafts
on Banks for amounts exceeding Rs.1,000 (Rupees one
95

thousand only) in each case, other than in payment of salary,

allowances, pensions etc., of Government servants and
pensioners, drawn in favour of an individual, a firm, a company,
statutory body, etc., for services rendered or supplies made by
them to the State Government, should invariably be ‘Crossed’
with the addition of the Words ‘Account Payee only’ between
the crossings. If the amount involved is less than Rs.1,000 the
Treasury Officer may decline to make any payment on a cheque
payable to a person not in Government service ‘or bearer’ if he
is unable to satisfy himself as to the identity of the person
claiming payment. He may also decline to make any payment
on a cheque payable to person or persons not in Government
service “Or Order” if he is unable to satisfy himself as to the
identity of the person claiming payment or as to the validity of
the chain of endorsements, if any, by virtue of which that person
has become the holder of the cheque.
“The above procedure is also applicable to the cases of
cheques/drafts for amounts exceeding Rs.1,000 in each case,
issued in favour of Gazetted Government servants and pensioners
in payment of their personal claims. But such cheques/drafts
will always be to the ‘order, of the payee, and ‘crossed’. The
superscription ‘Account Payee only’ referred to above, need
not however, be added thereon.”
Note.- All Cheques preferred at a Government Treasury
including pre-audit cheques for payments, are to be treated as
non-negotiable instruments and such cheques can be endorsed
only once in favour of a banker or messenger to whom the
money is to be paid. The words “Contents Received’ should
invariably be noted on such cheques ‘while receipting the same.
A Bank shall not re-endorse any such cheques otherwise than
to a messenger for collection only.
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(b) Ordinarily a cheque is not cashed by the Treasury

Officer unless it is receipted by the payee himself, or other
person in whose favour it is regularly endorsed for payment. In
special cases, when the Head of an Office is unable himself to
receipt cheques payable to his order, owing to his being absent
on tour or for other causes and when he considers that strict
compliance with the ordinary rule would cause inconvenience,
he may specially authorise in writing a subordinate gazetted
Government servant to endorse for him cheques drawn in his
favour by his official designation.
(c) When a Government servant sends a cheque to a
Treasury not for cash payment, but for credit of its amount in
the treasury accounts, he must, before endorsing the same add
the words ‘Received payment by transfer credit to ‘and should
also cross the cheque if it is not already crossed. Omission to
do this facilitates fraudulent appropriation of money. Treasury
Officers should not make cash pavements on such cheques.
LOST CHEQUES
73. When a drawing officer receives a report that a cheque
drawn by him has been lost, he shall at once report the fact to
the Treasury Officer and request him to stop payment of the
cheque. The Treasury Officer shall at once examine the lists of
paid cheques and, if he finds that the cheque has not been paid,
take steps to stop payment. A board showing the particulars of
all “stopped” cheques shall be hung up before the clerk
concerned. If the cheque referred to has already been paid,
such a fact may be reported immediately by the Treasury Officer
to the drawing officer for taking further needful action.
The Treasury Officer shall also send the drawing officer
a certificate in the accompanying form, when a cheque reported
as lost has not been paid and he has stopped payment,.-
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‘Certified that cheque No............. dated.............. for

Rs ......................................... reported by the (Drawing Officer)
to have been drawn by him on this treasury in favour of
........................... has not been paid, and will not be paid if
presented hereafter.....................................
Treasury
The ...................... 19 “Treasury Officer”.
Note.- The procedure to be followed by the Bank-
Treasuries in the matter of issuing non-payment certificates for
lost Government cheques, is as follows :-
(i) On receipt of a request for issue of a fresh cheque in
lieu of a cheque alleged to have been lost, the drawing officer
should send an intimation by Registered Post A.D., to the Bank
regarding the alleged loss of the cheque and advise it to stop
payment if the cheque alleged to have been lost is presented
thereafter. A written confirmation about the Bank having
recorded the ‘Stop Order’ should also be obtained from it.
However in cases where the currency of the cheque alleged to
have been lost has already expired, in terms of Article 70, at the
time when the request for recording the ‘Stop Order’ by the
Bank is made, no acknowledgment of the ‘Stop Order’ by the
Bank, other than a postal acknowledgment due, is necessary.
(ii) The Drawing Officer should then intimate the Treasury
Officer concerned, that the cheque has been lost and that the
fact thereof has been intimated to the Bank and their
acknowledgement obtained.
(iii) The Treasury Officer should then issue the non-payment
certificate after verifying the Treasury schedules of payments.
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(iv) If the currency of a cheque expires on a Saturday the

Treasury Officer shall also verify the list of cheques paid for
the subsequent working day of the Bank before issue of non-
payment certificate wherever necessary.
(v) The party requesting for a fresh cheque in lieu of a lost
one should execute an indemnity bond in Form K..F.C. No.73.
However in the case of a Government Department or a Bank
the execution of an indemnity bond is not necessary but a fresh
cheque should be issued in its favour only on receipt of a
certificate stating that it has not received the cheque alleged to
have been lost or having received it, it has been lost and that
it will be returned to the drawer if found later.
74. On completion of the requirements in clause (i) to (iv)
of the Note below Article 73, the drawing officer shall cancel
the original cheque and make the necessary entries in his
accounts and may then issue another in its place.
If any “stopped” cheque is presented at the Treasury
for payment, the clerk concerned shall at once bring the fact to
the notice of the Treasury Officer, and the latter shall refuse
payment and return the cheque to the person who presented it
with the words “Payment stopped’ written across it.
CANCELLED CHEQUES
75. The Drawing Officer shall cancel any cheque which
has remained unpaid for twelve months from the date of issue.
When a cheque is cancelled for any reason, the fact shall be
recorded on its counterfoil and the cheque, if in the Drawing
Officer’s possession. shall be destroyed. If the cheque is not in
his possession and payment has not already been stopped under
the preceding rule, he shall at once request the Treasury Officer
99

to stop payment of the cheque. If the Treasury officer then finds

that the cheque has not been paid, he shall stop payment.
The cheques issued by any Treasury which are
outstanding for a period of twelve months from the date of
issue, should be cancelled and adjusted.
The following procedure is prescribed for the
accounting of the cancelled cheques :-
(1) The Treasury Officer should prepare a list of cheques
outstanding for more than twelve months from the date of issue
on the 15th of May each year. This list should furnish the
cheque number and date name of drawer and amount and
voucher number assigned in the schedule of payment of the
month concerned. Simultaneously he will prepare Alteration
Memoranda, in duplicate, showing the heads of debit and credit
and send the first copy to the Accountant General and the second
copy to the Drawing officer concerned. The Drawing Officer
will note the fact of receipt of Alteration Memoranda (with
particulars of number, date and amount thereof in the office
copy of the bills, if the Alteration Memoranda proposed is in
order, on verification. Otherwise it Is the responsibility of the
drawing Officer to inform the Treasury Officer and the
Accountant General for any corrections or alterations that are
required before the 1st June. The second copy may be retained
by the Drawing Officer.
(2) The Alteration Memoranda should be rendered to the
Audit Office along with the list referred to above, in duplicate.
This list should reach the Audit Office on the 1st June.
(3) The Audit Office will verify the correctness of the list
with reference to the list of outstanding cheques and propose
necessary adjustments immediately. After effecting this
100

adjustment, one copy of the list noting the transfer entry numbers
and date should be returned to the Treasury Officer and the
Treasury Officer is required to furnish a certificate that necessary
entries have been made in the relevant register.
(4) All final adjustments will be intimated to the Drawing
Officer concerned by the Audit Office.
TRANSACTIONS WITH BANKS
76. No Government servant may open an account with a
private bank for the deposit of moneys by him in his official
capacity (the Reserve Bank of India and its agencies are not
private banks since they conduct cash business on behalf of the
Treasuries). In cases where a Government servant is associated
with a quasi-Government Body, Private Body, Institution, etc.,
otherwise than in his official capacity, he may deal with the
moneys thereof according to the Rules or Regulations Governing
Bodies or Institutions.
77. Cheques drawn on Government account on a Bank in
which Government keeps money should be addressed to the
Bank itself as “Bank of .............................”and not to any officer
thereof.
SPECIMEN SIGNATURES OF DRAWING OFFICERS
78. When a Government servant, whether Gazetted or non-
Gazetted, who usually draws cheques or bills or countersigns
bills payable at a treasury makes over charge of his office to
another he should send a specimen of the relieving officer’s
signature to the Treasury Officer in order that the latter may
satisfy himself as to the validity of the bills presented by him.
Similarly, when a subordinate Government servant is permitted
to sign the establishment and contingent bills for the Head of
101

an Office, the latter should send to the Treasury intimation of

such fact as also the specimen of the signature of such
subordinate Government servant who has been permitted to
sign bills.
Note 1.- Only gazetted assistants may be delegated
with the duty of signing bills.
Note 2.- The specimen signature of a countersigning
officer is necessary only when the bills he countersigns are
signed a private person and not by Government servant.
Note 3.- Treasury Officers are required to keep such
slips pasted in a register for reference. Government servant
who draw funds on several treasuries should send a specimen
of the relieving officer’s signature to each of the Treasury
Officers concerned.
ERASURES IN GOVERNMENT RECORDS
79. A Government servant should on no account erase
or overwrite any entry in any cash book, account register, or
schedule; if any correction be necessary, the incorrect entry
should be cancelled neatly in red ink, and the correct entry
inserted. Each Such correction or any interpolation deemed
necessary should be authenticated by the Head of the Office
setting his dated initials against each. Special care should be
taken by the Treasury Officer as regards all vouchers and
accounts showing signs of alternation and if such documents be
frequently received from any office, the attention of’ the Head
of the Office should be formally drawn to the irregularity.
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CHAPTER V
PAY AND ALLOWANCES GENERAL RULES
DUE DATE
80. (a) Except as provided in clause (d) below, pay, leave
salary and other monthly recurring payments, become due for
payment on the expiry of the month to which they relate and no
such payment should be made before the first working day of
the next month and any claim relating to the last few days of
the month after the submission of the bill which is subsequently,
found not payable shall be refunded by short drawing the bill
of the next month.
Note.- The monthly pay bills of officers and
establishments payable on the first working day of the following
month may be signed and presented to the treasuries concerned
a few days before the last working day of the month to which
they relate, as noted below, to facilitate scrutiny of the bills at
the treasuries before arranging payment.
(a) State Huzur Treasury Bangalore-9 days:
(b) District Treasury, drawing cheques (other than SHT)
- 7 clear days;
(c) Other District Treasuries - 5 clear days;
(d) Sub-treasuries-3 clear days.
(b) 1[The pay and allowance of Government Servants
except for the month of March shall be disbursed on the last
working day of the month for which the pay and allowances are
due and if the last working day in any month falls on a Bank
1. Substituted by No.FD 16 TFC 85 dt. 6-11-1985 (w.e.f. 1-4-1985).
103

Holiday or Saturday, the pay and allowances shall be disbursed

on the working day immediately preceding such a Bank Holiday
or Saturday as the case may be. The pay and allowances for the
month of March shall be disbursed on the first working day of
April only.]
1
[Exception: In respect of offices situated in Bangalore
and who draw pay by encashing cheques at the Reserve Bank
of India, Bangalore, pay and allowances of Government servants
except for the month of March shall be disbursed on the last
two working days of the month for which the pay and allowances
are due. If the last working day in any month fall on Saturday
or Bank Holiday the pay and allowances shall be disbursed on
the last two working days immediately preceding such a Bank
Holiday or Saturday as the case may be. The pay and allowances
for the month of March shall be disbursed on the first working
day of April only.
The distribution of departments detailed in Annexure-
I and II. The Departments can encash their salary cheque only
on the days specified in the Annexures.
ANNEXURE - I
List Of Drawing Officers to Whom Salary is to be
Disbursed on I Day.
Name of the Department
1. Animal Husbandary
2. Archaeology & Museum
3. Adult Education

1. Inserted by No.FD 8 TFC 91 dt.1-2-1992 (w.e.f. 1-9-1990).

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4. Appellate Tribunal
5. Agriculture
6. Bureau of Public Enterprises
7. Bio-Gas Department
8. Co-operation Audit
9. Commercial Tax Department
10. Co-operative Department
11. D.P.A.R. Accounts
12. Election Office
13. Endowment Department
14. Enquiry Commissions
15. Excise
16. Employment and Training
17. Economics & Statistics
18. Education Department
19. Fisheries
20. Fire Force Department
21. Food & Civil Supplies
22. Government Flying Training School
23. Guest House
24. Home Guards
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25. Horticulture
26. Information & Publicity
27. Industries & Commerce
28. Insurance Department
29. Judicial Department
30. Lokayuktha
31. Legislature
32. Police Department
33. Raj Bhavan
34. Treasury
ANNEXURE - II
List Of Drawing Officers To Whom Salary is to be
Disbursed on II Day.
Name of the Department
1. Backward Class & Minorities
2. Electrical Inspectorate
3. Forest
4. Health & Medical Department
5. Kannada & Culture
6. Library
7. Mines and Geology
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8. Mid-day Meals Department

9. Motor Vehicle Department
10. Marketing Department
11. Printing & Stationery
12. Public Service Commission
13. PWD/National High Way & PHE & Irrigation
14. R.D.P.R.
15. Revenue Department
16. Registration
17. Small Savings & Lottery
18. Scientific Department
19. Survey and Settlement
20. Store Purchase
21. Sericulture
22. Social Welfare
23. Technical Education Department
24. Tourism
25. Translation Department
26. Town Planning
27. Youth Services
28. Weights & Measures
107

29. Women & Children Welfare

30. All other Departments
(c) The payment due for a part of a month should ordinarily
be made at once without waiting till the end of the month, in
the following circumstances:-
(1) When a Government servant proceeds out of India on
deputation or on leave other than earned leave taken by itself.
(2) When a Government servant finally quits the service
of Government or is transferred to Foreign Service.
(3) When a Government servant is transferred to another
Audit Circle.
(3A) When a non-gazetted Government servant is promoted
as a gazetted officer or a gazetted officer is reverted as a non-
gazetted Government servant.
(4) When Government so authorise specifically.
(5) 1[When a Government servant is transferred within the
same Account Circle from one office to another in the same or
different station involving change of Drawing and Disbursing
officer.]
Note 1.- In the case of Government servants transferred
from or to the Bhadra Reservoir Project or Ghataprabha Project
and Sharavathi Valley Hydro-Electric Project, payment of salary
due for a part of a month is authorised.
Note 2.- In the case of trainees of the Central Recruits
School, Bidar, leaving the School after completion of their

1. Inserted by No.FD 6 TFC 85 dt.14-2-1986.

108

training, drawal and disbursement of their salary up to the date

of leaving the school is authorised.
(d) The last payment of salary should not be made to a
gazetted Government servant finally quitting the service of
Government, until the Treasury Officer has satisfied himself by
reference to the Accountant General, the departmental authorities
and to his own records, that there are no demands outstanding
against him. In other cases, the payment may be made without
reference to the Accountant General on the responsibility of
Head of the Office concerned.
Note 1.- The procedure prescribed in clause (d) above,
shall apply to the last payment of dues or honorarium to non-
officials, including members of any Commission or Committee,
whether statutory or not, as it applies to the last payment of pay
or allowances to, or in respect of a Government servant who
finally quits the service of the Government.
Note 2.- With a view to expediting the disposal of
pension cases, the last payment of pay and allowances may be
made and the last pay certificate issued pending final assessment
and realisation of outstanding demands, provided that adequate
security for meeting the likely demands is taken either in cash
or by a surety bond from the Government servant concerned; or
by withholding a part of the gratuity payable to him in
accordance with the provisions of the Karnataka Civil Services
Rules.
(e) Pay and allowances of a person who is certified to be
a lunatic by a magistrate should be paid in accordance with the
following procedure.
109

(i) On receipts of information that a Government servant,

not covered by the individual Running Ledger Accounts (IRLA)
Scheme, has been certified to be a lunatic, the Head of the
Office in which the Government servant before him being
certified to be a lunatic was last employed should, on the basis
of the orders issued by the appointing authority indicating the
person(s) to whom and the proportion in which the pay and
allowances admissible to the Government servant may be
disbursed in accordance with the provisions of Section 95(1) of
the Indian Lunacy Act, 1912, draw the pay and allowances of
the Government servant in the appropriate bill form, gazetted
or non-gazetted as the case may be, from the Treasury or other
office of disbursement. The claim should be supported by all
the relevant certificates which the Head of the Office is required
to furnish in the normal circumstances. However, in respect of
the certificates which solely depend on the personal knowledge
of the Government servant and which cannot be furnished in
such cases, the Head of the Office should record, if he is satisfied
about the reasonableness of the claim, a certificate to the effect
that the claim is not susceptible of verification but is considered
reasonable. If the Government servant is invalided from service,
the claim would be the last one in respect of him and the
requisite payment in case he was a gazetted Government servant
shall be made only after the Head of the Office has satisfied
himself’ by reference to the Accountant General, the
Departmental authorities, if any, and his own records that no
Government dues are outstanding against him. In other cases
payment may be made on the responsibility of the Head of the
Office concerned.
(ii) The amount withdrawn in the manner stated above
may be paid to the person(s) referred to in sub-para (i) above
in the proportion determined by the appointing authority and
receipts obtained, stamped where necessary.
110

(iii) In cases where payments to Government servants are

made under the IRLA System and the ledger account remains
open, the amounts due from or due to a Government servant
may be debited or credited to that account and the credit balance
left over may be paid by the Accounts Officer concerned to the
person(s) by cheque or Bank draft as the case may be, after
ascertaining from the appointing authority the proportion in
which amount is to be paid and also the person(s) to whom it
is to be paid.
When a Government servant has been invalided from
service and it is found that some Government dues are
outstanding against him even after the adjustment of his claims
for pay and allowances, the same may be adjusted against the
amount of death - cum-retirement gratuity if any and if the
same is also insufficient, the balance of the outstanding dues
may be written off under sanction of the competent authority.
PROVISIONAL PAYMENTS PENDING, RECEIPT OF
SANCTION FOR CONTINUANCE OF TEMPORARY
POSTS
80(A) (1) Where action for the continuance of temporary posts
beyond the period upto which they stand sanctioned has been
taken but the competent authority has not accorded sanction,
the holders of such temporary posts may draw provisionally,
without any authority from the Accountant General their pay
and allowances at the same rate as they were drawing in that
post, for a period of three months after the expiry of the period
upto which the posts had been sanctioned. The Gazetted Officer
availing of the facility should attach to the bill drawing his pay
and allowances a declaration by the officer who is empowered
to countersign his T.A. bills, that the officer continued to hold
the post and that sanction for the continuance of the post has
111

been applied for. In respect of officers governed by the I.R.L.A.

system of payments, they should forward such declarations to
the Accountant General.
(2) In regard to non-Gazetted Officers holding temporary
posts, the concerned drawing officers are permitted to draw
their pay and allowances for a period of three months after the
expiry of the sanctioned period provided the proposal for
continuance of the posts have been submitted well in time and
a certificate to this effect is attached to the relevant pay bills.
The concerned drawing officers are also permitted to draw
contingent bills towards office rent, postage, etc., without which
the establishment cannot function.
(3) It will be the responsibility of the Administrative
Department concerned to take timely action for issuing sanction
for the continuance of temporary posts in such cases as soon as
possible so as to cover also earlier periods governed by payment
of provisional salary to the officers.
(4) The bills in which salary is drawn pending receipt of
sanction for the post, under the provision of this Article should
be marked prominently in red ink that they relate to provisional
payments.
DEATH OF PAYEE
81. (a) Pay, officiating pay, leave salary and other
emoluments can be drawn for the day of a Government servant’s
death; the hour at which death takes place does not affect the
claim.
112

(b) 1[Subject to the provisions of Clause (c) of Article 80,

Pay and Allowances of all kinds claiming on behalf of a deceased
Government servant may be paid without the production of the
usual legal authority :-
(a) if the gross amount of the claim does not exceed Rs.
5,000 under the orders of the Head of the Office in which the
Government Servant was employed at the time of his death,
provided that, the Heads of the Office is otherwise satisfied
about the right and title of the claimant, and
(b) if the gross amount of the claim exceeds Rs. 5,000
under the orders of Head of Department on execution of an
indemnity bond in Form 13 duly stamped for the gross amount
due for payment with such sureties as may be deemed necessary
provided that, in cases falling under clause (b) the authority
mentioned in clause (a) may, subject to the condition prescribed
in that clause, make anticipatory payment of an amount not
exceeding Rs. 5,000.
Note 1.- Normally there should be two sureties both of
known financial stability, unless the gross amount of the claim
is less than Rs.7,500 in which case the authority accepting
indemnity bond in Form No.13 for and on behalf of the
Government should decide on the merits of each case whether
to accept one Surety instead of two.
Note 2.- Obliger as well as the sureties executing the
indemnity bond should have attained majority so that the bond
may have legal effect or force. The bond is also required to be
accepted on behalf of the Governor by an Officer duly authorised
in that behalf.

1. Substituted by No.FD 43 RFC 76 dt. 8-8-1978 (w.e.f. 8-8-1978).

113

(c) In case of any doubt payment shall be made only to

the person producing the legal authority.
Note.- Regarding the safe custody and disposal of
indemnity bonds executed by the dependents of the deceased
Government servants, reference is invited to ‘Note’ below Rule
6 of Appendix-II.
(d) The procedure to be followed in regard to the
preferment of withdrawal and disbursement of claims of
deceased Government servants to the rightful claimants will be
as under:-
On receipt of the claim for payment of arrears of pay
and allowances on behalf of a deceased Government servant
from his heir/heirs, the Head of the Office in which the
Government Servant was last employed should draw the amount
in the appropriate bill form from the Treasury. In case of claims
of Gazetted Officers necessary authorisation should be obtained.
The claims should be supported by all the relevant certificates
which the Head of the Office is required to furnish in the normal
circumstances. However, in respect of the certificates which
solely depend on the personal knowledge of the Government
servant and which obviously cannot be furnished by the Head
of the office, the Head of the Office should if he is satisfied
about the correctness of the claim, furnish a certificate to the
effect that the claim is not susceptible of verification but is
considered reasonable. In the case of Gazetted officer, the Head
of office has to satisfy himself by reference to the Accountant
General, the Departmental authorities and his own records that
there are no demands outstanding against the deceased
Government servant. In the case of other Government servants
payments may be made without reference to the Accountant
General on the responsibility of the Head of the Office
114

concerned. The amount should be disbursed to the claimant/

claimants by the Head of the office of his own authority where
the gross amount of the claim does not exceed Rs. 5,000 in
terms of sub-rule (a) above and under orders of higher authorities
if the gross amount of the claim exceeds Rs.5,000 as mentioned
in Sub-rule (b) above. A formal receipt, stamped where necessary
should be obtained from the claimant.
Note.- The procedure prescribed in this rule shall apply
to any claim for payments of dues or honorarium payable to
deceased non-officials including deceased non-officials members
of any Commission/Committee whether Statutory or not as it
applied to the claim for payment of pay and allowances of a
deceased Government servant.
(c) In any case of doubt payment shall be made only to
the person producing the legal authority.
Note 1.- Regarding the safe custody and disposal of
indemnity bonds executed by the dependents of the deceased
Government servants, reference is invited to “Note” below Rule
6 of Appendix II.
Note 2.- The procedure prescribed in this Article shall
apply to any claim or payment of dues or honorarium payable
to deceased non-officials including deceased non-official
members of any Commission or Committee, whether statutory
or not, as it applies to the claim for payment of pay and
allowances of a deceased Government servants
PAYMENT OF DUES OF A GOVERNMENT
SERVANT WHOSE WHEREABOUTS ARE UNKNOWN
82. Pay, etc., due to a Government servant whose
whereabouts are unknown should not be paid till a presumption
115

of death of the Government servant is shown to be justified.

Action may be taken (when the presumption of death is shown
to be justified) as described in Article 81 (b) supra, on the
assumption that the Government servant is dead if any one
claims the undisbursed pay, etc., in the capacity of legal heir of
the Government servant.
APPOINTMENTS AND TRANSFERS
83. (a) Every order of appointment, whether to gazetted or
non-gazetted posts, should give clear and specific information
regarding (1) the particular sanctioned post filled up, (2) the
circumstances of the occurrence of the vacancy and (3) the kind
of tenure of appointment ordered substantive provisional,
officiating, in charge of current duties in addition to a
Government servant’s own duties or in charge of current duties
independently without retaining charge of a Government
servant’s own duties.
(b) Vacancies, permanent or temporary, will be filled up
by the authorities competent to do so, only when the work of
vacant appointments cannot be entrusted to other Government
servants without involving extra expenditure.
(c) Transfers should be minimised as far as possible.
PRODUCTION OF HEALTH CERTIFICATE ON
FIRST APPOINTMENT IN SERVICE
83-A. In respect of Gazetted officers, certificates furnished
by the competent authority to whom the medical certificate has
been submitted should be attached to the first pay bill. In respect
of non-gazetted officers, the drawing and disbursing officers
should furnish such certificates along with the first pay bill of
the Government servant concerned.
116

Where the production of’ the Medical Certificate has

been dispensed with under sub-rule (b) and (c) of Rule 9 of the
Karnataka Civil Services Rules, a certificate to this effect should
be attached to the first pay bill of the Government servants
concerned.
INCIDENCE OF CHARGE
84. The following rules govern the incidence of cost of
pay and allowances of Government servants:-
(a) The whole pay and allowances of a Government servant
should be taken against the Department and the post in which
he is actually serving,
(b) (i) The transit pay and allowances of a Government
servant proceeding to join an office should, in the absence of
special orders to the contrary, whether in respect of a particular
case or class of cases be debited to the office to which he is
proceeding.
1
[(ii) The salary admissible for the period of joining time
and the salary admissible for the period of leave of non-gazetted
Government servant, who on promotion to Gazetted post avails
joining time and then leave under the proviso to sub-rule (1) of
Rule 83 of Karnataka Civil Services Rules before joining the
Gazetted post, shall be drawn and disbursed by the drawing
officer of the office in which the Government servant was
working immediately before his promotion. The last pay
certificate should be sent to the Accountant General’s office
immediately thereafter.]
Note.- Transfers to Local Funds will be treated like
transfers to Foreign Service.
1. Inserted by No. FD 7 TFC 83, dt. 30-8-1983 (w.e.f. 28-4-1980).
117

(c) The leave allowances of a Government servant

transferred from one department to another while on earned
leave, are from the date of the order of transfer, charged to the
new department.
(d) When, a Government servant is transferred to another
department, while on leave, other than earned leave, the transfer
does not take effect until he joins his new appointment.
(e) The travelling allowance of a Government servant, on
whatever duty he may be employed, is charged to the same
head as his pay.
Exception.- The travelling allowance of a Government
servant paid from a Local Fund may when travelling in the
execution of Government duty, be paid and charged to general
revenues. Similarly, the travelling allowance of a Government
servant paid from the general revenues, when travelling on duty
connected with a Local Fund, may be charged to the Local
Fund.
The Travelling allowance of Government servants
deputed for training in connection with the Applied Nutrition
Programme from various departments to the Administrative
Training Institute, Mysore and Rural Development Training
Centre, Dharwar, Bagalkot, Gangavathi, Mandya and Kudige,
admissible as per rules in the K.C.S.Rs. both for the forward
and return journeys and D.A. for the halts at the training centres
shall be drawn and disbursed by the authorities of the training
centres by debiting the expenditure on this account to the
allotments made available by the Department of Rural
Development and Co-operation.
118

The principle laid down in the exception applies also

to Government Industrial and Commercial undertakings.
(f) The travelling allowance of a Government servant
called away from his duty to give evidence in any court in his
official capacity, is during the period of his absence, charged to
the department which would bear the charge if the Government
servant were on duty.
(g) The Government of Karnataka have entered into
reciprocal arrangements with the Central Government,
Government of Punjab, Rajasthan, Andhra Pradesh, Maharashtra,
Madras and West Bengal in regard to the payment of expenses
to the Government servants summoned by criminal Courts to
give evidence in their official capacity. The effect of the
arrangements will be as follows:-
(1) In criminal cases to which the State is a party, a
Government servant giving evidence regarding facts of which
he has official knowledge will, on production, of certificate of
attendance issued by the summoning court, be paid travelling
allowance by the Government under whom he is serving ;
(2) In criminal cases to which the State is not a party, a
Government servant giving evidence regarding facts of which
he has official knowledge will be paid travelling allowance by
the summoning court according to the rules under which such
Government servant draws his travelling allowance for a journey
on tour, and the charges will be borne by the Central Government
or any of the five reciprocating Governments mentioned above
according as the Court is situated in the Union territory or in
any of the State territory.
119

(3) When a Government servant serving in a commercial

department, or when any other officer is summoned to give
evidence as a technical or expert witness, the pay of the
Government servant concerned for the period of his absence
from his headquarters and travelling allowance and other
expences due to him will first be borne by the Government
under whom he is serving and subsequently be recovered from
the Central Government or any of the five reciprocating State
Governments, according as, the Court in which the officer is
summoned to give evidence is situated in the Union territory or
in the territory of any of the aforesaid State Governments
respectively.
1
[(h) The Government of Karnataka have entered into
reciprocal arrangements with the Governments of Tamil Nadu,
Kerala and Maharashtra in regard to the payment of travelling
allowance and other expenses to witnesses summoned for giving
evidence in departmental enquiries:
(a) In departmental enquiries to which the State is a party,
a Government servant giving evidence regarding facts of which
he has official knowledge will, on production of certificate of
attendance by the summoning authority, be paid travelling
allowance by the Government under whom he is serving;
(b) In departmental enquiries to which the State is not a
party, a Government servant giving evidence regarding facts of
which he has official knowledge will be paid travelling allowance
by the summoning authority according to the rules under which
such Government servant draws his travelling allowance for a
journey on tour and the charges will be borne by the
Government of Karnataka or any of the other reciprocating

1. Inserted by No. FD 19 TFC 83 dt. 19- I I- 1983 (w.e.f. 29-3-1984).

120

Governments according as the authority is situated in this State

or in the territory of the other reciprocating Governments ;
In such cases the Government servant concerned
will carry to the summoning authority a certificate duly signed
by his controlling officer showing the rates of travelling
allowance and daily allowance admissible to him for a journey
on tour. If the Government servant is his own controlling officer,
the certificate will be signed by him as such.]
84-A. The incidence of pay, leave salary, allowances, pensions,
etc., of Government servants deputed or transferred to or from
the Central Government or the following State Governments
are regulated by the provisions of Appendix 3 to Account Code,
Volume I.
Note 1.- The provision of this Article is applicable to
deputations and transfers effected from 1st November 1956
onwards and in respect of the following State Governments :-
1. Andhra Pradesh
2. Assam
3. Bihar
4. Gujarat
5. Kerala
6. Madhya Pradesh
7. Madras
8. Maharastra
8-A. Orissa
121

9. Punjab
10. Rajasthan
10-A. Uttar Pradesh
11. West Bengal
1
[Note 2.-The provisions of Note-1 shall be applicable
to a permanent Government servant of Government of India
(including Union Territories) or Governments of Assam, Bihar,
Maharashtra. Punjab and Rajasthan who is appointed to a post
under Government of Karnataka or to a permanent Government
servant of Karnataka appointed to any post under any of the
Governments specified above, through open competition
provided the Government servant concerned is not required to
resign his previous appointment and the Government under
whom he was employed prior to his appointment agrees to
retain his lien until he is finally absorbed by the other
Government.
(on matters covered by this Article (i.e., note-2 below
Article 84-A) action taken or required to be taken in accordance
with orders issued by Government in that behalf before the
commencement of this Article shall be deemed to have been
taken under the provisions of this Article).
2
[84-B. 1. The system of allocating the liability on
account of leave salary and pensionary charges in respect of
both permanent and temporary Government servants who have
served under the Central Government and State Government is
as specified below:

1. Inserted by No. FD 6 TFC 84 dt. 21-I- 1985 ( w.e.f. 31-3-1982).

2. Substituted by No.FD 4 TFC 91 dt.19- 12-1991 (w.e.f .19-12-91)
122

(a) The liability for leave salary shall be borne in full by the
Department from which the Government servant proceeds on leave
whether it be his parent department or a borrowing department with
whom he is on deputation.
(b) The liability for pension including gratuity shall be borne in
full by the Central/State Government to which the Government servant
permanently belongs at the time of retirement.
(c) The liability for Government contributions shall be borne
by the parent department of the Central Government or State
Government.]

1
[Government servants claiming the benefit of combined
service shall be categorised as follows:-
i) Those who having been retrenched from the service of
Central / State Government secured on their own are employed
under State / Central Government either with or without interruption
between the date of retirement and date of new appointment;
ii) Those who while holding temporary posts under Central/
State Government apply for the posts under State/Central
Government through proper channel with proper permission of the
administrative authority concerned;
iii) Those who while holding temporary posts under Central/
State Government apply for posts under State/Central Government
direct without permission of the administrative authority concerned
and resign their previous posts to join the new appointments under
Central/State Government.
The benefit of combined service may be allowed to the
Government servants in categories (i) and (ii) above. Where an
1. Substituted by FD 6 TFC 84 21.1.1995 w.e.f. 31.3.1982.
123

employee under category (ii) is required for administrative reasons

for satisfying a technical requirement to tender resignation from the
temporary post held by him before joining the new appointment, a
certificate to the effect that such resignation had been tendered for
administrative reasons and /or to satisfy a technical requirement to
join with proper permission the new posts may be issued by the
authority accepting the resignation. A record of this certificate may
also be made in his service book under proper attestation to enable
him to get this benefit at the time of retirement. Government servants
under category (iii) will not be entitled to count their previous service
for pension.]

LAST PAY CERTIFICATE

85. A Treasury Officer (or the head of the office in the case
of a non-gazetted Government servant) should on no account
disburse any pay or allowances to a Government servant to whom
he has granted a Last Pay Certificate (Form No. 14) unless the
certificate is first surrendered.
The head of an office should give a last pay certificate to
a Government servant of his establishment who is transferred or
deputed to another establishment. The certificate should be given
even when a subordinate is transferred from one establishment to
another under the same Government service.
Note.-When the Head of an Office is himself a non-gazetted
Government servant he should not sign his own last pay certificate
but should obtain one from the relieving Government servant. The
certificate should state that the Government servant has received
pay up to (date) inclusive, and that from...........date he ceased to
draw pay, on account of etc.
124

(i) The last pay certificate (Form No. 14) provides for details
of the fund deductions, although the officer preparing the bills is
responsible for their correctness; but the officer preparing the last
pay certificate is responsible not only for entering in the certificate
all demands against the departing Government servant, including any
made under an order of attachment of his pay by a court of law of
which he may have received notice before granting the certificate,
but also for passing on any of which he may afterwards receive
notice, to the treasury of the disbursing office from which the
Government servant will in future, draw pay.
(ii) In all cases of transfer within the same Audit Circle, the
Last Pay Certificate should specify the last regular or monthly payment
; and the entire salary for the month in which transfer is made should
be paid at the new treasury.
(iii) The blank spaces in the printed form of the certificate
should be carefully filled up to enable the Accountant General to use
and record the particulars without further reference.
(iv) The Last Pay Certificate of a Government servant who is
transferred or is proceeding on leave should not be issued until the
date and hour making over charge are known to the treasury or
other Government servant who has to issue the certificate.
(v) A Last Pay Certificate is also necessary before the first
payment of pension to a retired Government servant and should
therefore be issued to a Government servant discharged on
pension. The certificate should accompany the application for
pension, unless the applicant continues in service after
submission of his application, in which case the Accountant
General in issuing orders for payment will direct that no payment
is to be made until the certificate is produced.
125

Note.- So far as the preparation of Last Pay Certificate is

concerned, the disbursing officers should be guided by the provisions
contained in Appendix 4 to the Central Treasury Rules Volume II.
(vi) On reversion from a gazetted post to a non-gazetted post,
the Last Pay Certificate should be sent by the treasury officer to the
Audit Officer, who will countersign and transmit it to the head of
office responsible for drawing pay of the Government servant as a
non-gazetted officer.
BOND OF INDEMNITY FOR DRAWING LEAVE
ALLOWANCE, ETC.
86. (a) Government servants often make arrangements with
their agents to draw their leave or vacation allowances, pensions,
etc., either granting them powers of attorney to enable them to
do so, or leaving their bills ready signed in the agents’ custody
for presentation, the Agents in their turn giving Government a
bond of indemnity (in Form No.15) as security against any loss in
case of overpayment.
Note.- A register of powers of Attorney will be kept by
the treasury officers in Form 16.
(b) The bond of indemnity in the case of a Firm or Bank
which must be stamped, shall be in Form No.17.
(c) The authority competent to accept indemnity bond on
behalf of Government shall before accepting the bond, verify
that the person who signs a bond of indemnity on behalf of a
Firm or Bank has authority to bind it.
(d) It is not necessary, however, for a separate bond to be
entered into in the case of each individual Government servant.
Agents of standing and respectability may, for this purpose, be
126

allowed to enter into a general agreement in Form 17 covering the

allowances, pensions, etc., of all their constituents.
(e) A list of Agents who have executed general bonds of
indemnity under clauses (b) and (d) is contained in Appendix
IV-A.
(f) Separate bonds must be executed for payments relating
to or for persons whose salaries or pensions are debitable to the
Central Government and those debitable to a State Government.
The applications for such bonds will be dealt with by
the Government (Central or State) concerned.
FUND DEDUCTION
87. Every Government servant who draws any pay bill
should enter in it correctly the deductions, if any, to be made
but no discretion is given to the Treasury Officer in carrying
out an order received from the Accountant General or from the
Secretary, Karnataka Government Insurance Department to make
any particular deduction.
88. (a) Every establishment bill should contain the following
certificate:-
“1. Certified that I have satisfied myself that all Government
servants permanently entertained and Government servants who have
already insured their lives in the official branch of the Karnataka
Government Insurance Department and who have received permanent
increase to their pay during the month have duly submitted their
proposals for the first and further insurance respectively, or failing
insurance, have contributed to the General Provident Fund as
required by the rules.”
127

1
[2 Certified that the Officials / Officer whose names have
been included in the pay bill have compulsorily obtained KGID
policy / Additional policy according to their posts/ or necessary
proposals have been sent to KGID for obtaining additional policy
and policy Bond is awaited .]
(b) Heads of Offices should carefully satisfy themselves
before signing the certificate of insurance in the pay bills that
all Government servants permanently entertained and the
Government servants who have already insured and who have
received permanent increase of pay during the month to which
the bill relates have actually submitted their proposals.
(c) Whenever a Government servant, whose life has been
insured quits the Government service, for any reason whatever
before the policy in his favour has matured, the fact should be
reported to the Secretary of the Karnataka Government Insurance
Department by the head of the office concerned.
RECOVERY OF INCOME TAX
89. The sole authority for the recovery of Income-tax is
contained in the Government of India Income-Tax Manual and
rules and orders issued under it.
Treasury Officers are responsible for the deduction of
Income-tax due from all gazetted Government servants who
draw their pay from treasuries on separate bills and also from
all pensioners and gratuitants who draw their pensions and
gratuities from treasuries at the time of payment. As regards
non-gazetted staff, heads of offices are responsible for the
deduction of Income Tax at the prescribed rates.

1. Inserted by No. FD 27 TFC 93 dt. 7- 6-1994

128

ATTACHMENT OF PAY
90. (a) The Government servants mentioned in column 2 of
the subjoined table are the persons to whom notice should be given
of orders of attachment of the salary or allowances of the persons
named in column 1 by the Courts. The amount recovered by these
Government servants should be remitted to the court concerned at
the cost of the Party.
Sl. Class of Judgement Officer to whom notice
No. Debtor of attachment should
be given

1 2 3

1. Gazetted Officers drawing Treasury officer

their salaries and allowances concerned.
on bills from treasuries
2. Gazetted and other Officer Officers drawing cheques
whose salaries and allow-
ances are drawn on cheque
3. Non-gazetted officers other Heads of officers who
than those referred to in 2 draw the salaries and
above disburse to the officers
concerned
4. Servants of local authorities The Commissioner or
i.e. Taluk Boards, Municipal other Chief Executive
Council, Village Panchayats. Officer of the Board or
Council concerned
129

5. Gazetted Officers on the Chief Pay and Accounts

University staff Officer of the University

6. Non-Gazetted staff of the Heads of the respective

University Institutions.

(b) Whenever recoveries on account of Court Attachment

are to be effected they should be shown as deductions in the
concerned establishment or salary Bills and the drawing officers
should prepare statements of deductions, separately for each
court showing particulars of the suit, the name of the subordinate
whose salary is attached and the amount deducted, etc. ; and
attach them to the bills. In the case of recoveries on behalf of
courts situated outside the station, the commission prescribed
for the issue of Treasury Cash Orders should also be recovered
from each individual in addition to the amounts to be credited
under Judicial Deposits in accordance with the prescribed procedure.
Note.- In the case of warrants of attachments issued by
officers of the Co-operative Department also the same procedure
may be followed for remittances outside the station, money
orders being resorted to only in the case of creditor societies
not situated in Taluk or District Headquarters.
91. Recoveries relating to societies situated in the same
station will, however be made in cash at the time of disbursing
salary.
92. It is the duty of the Government servant receiving the
attachment order to see that the amount attached is deducted
from the bill and also that a record is kept of such deductions
in form K.F.C. 78.
130

The Government servant receiving the warrant should not

enter into correspondence with the court or forward any
representations of the Government servants concerned in the matter.
His business is merely to execute the warrant provided the amount
is available. Any failure to obey the provisions of law in this respect
will make the Government servant concerned personally liable to
make good the loss that may be caused to Government thereby.
92-A. In cases in which a Government servant concerned does
not sign the acquittance roll and intentionally allows his pay to remain
undisbursed, or the Government servant concerned, being a Gazetted
Government servant or not being a Gazetted Government servant
but being permitted to draw his pay on a separate pay bill refrains
from preparing his pay bill and drawing his pay regularly, in order
to evade payment on account of an attachment order issued by a
Court of Law, the head of the office or, in the case of a Gazetted
Government servant or of a Government servant treated in this
respect like a Gazetted Government servant, the Head of the
Department or such other officer whom Government may authorise,
may draw the pay of the Government servant concerned in satisfaction
of the attachment order, subject to the prescribed restrictions and
remit the amount to the court concerned.
The amount so drawn should be treated in the accounts in
the same way as pay (or leave salary, as the case may be) drawn
in the normal course. Particulars of the attachment order should be
cited in the acquittance rolls or the pay bills as the case may be, as
an authority for the charge and the court’s receipt for the amounts
should be filed with the attachment register or such other suitable
record as may be kept by the drawing officer.
131

ATTACHMENT OF PAY AND ALLOWANCES, ETC.,

FOR DEBT
93. The following rule’s for the attachment of pay and
allowances, etc., for debt in respect of State Government servants
are laid down:-
(1) The wages of labourers and domestic servants whether
payable in money or in kind are not liable to attachment;
1
[(2) The salary of all employees of Government or of a
Local Authority is not liable to attachment to the extent of the
first four hundred rupees and two thirds of the remainder in
execution of any decree other than a decree for maintenance:
Provided that where any part or such portion of the
salary as is liable to attachment has been under attachment
whether continuously or intermittently, for a total period of
twenty four months, such portion shall be exempt from
attachment until the expiry of a further period of twelve months
and where such attachment has been made in execution of one and
the same decree, shall, after the attachment has continued for a total
period of twenty-four months be finally exempt from attachment in
execution of that decree.
(2A) One third of the salary of all employees of Government or
of a Local Authority is not liable to attachment in execution of any
decree for maintenance.
(3) All compulsory deposits and other sums in or derived
from Funds to which the Provident Funds Act 1925, applies,
are not liable to attachment;

1. Substituted by No. FD I RFC 77 dt. 5-3-1979 (w.e.f. 15-3-1979)

132

(4) Any allowance forming part of the emoluments of any

servant of the State Government or any servant of Local
Authority which the Karnataka State Government may, by
notification in the Karnataka State official gazette declare to be
exempt from attachment, and any subsistence grant or allowance
made to any such servant while under suspension is also exempt
from attachment;
(5) In sub-para (2) above, the term “salary” means the total
monthly emoluments (excluding any allowances declared by
Government to be exempt from attachment under the provisions of
sub-para (4) above, derived by a person from his emoluments
whether on duty or on leave);
(6) The following allowances payable to any servant of
Government or of a Local Authority have been declared by the
Karnataka Government to be exempt from attachment:-
(i) All kinds of travelling allowances.
(ii) All kinds of conveyance allowances.
(iii) All allowances granted for meeting the cost of, (a) Uniforms,
and (b) Rations.
(iv) Allowances granted as compensation for higher cost of
living in localities considered by the Government to be expensive
localities.
(v) All house rent allowances.
(vi) All allowances granted to provide relief against the increased
cost of living.
(vii) All amounts paid by way of reimbursement of medical
expenses.
133

(7) In accordance with the above provision, the maximum

amount attachable by a civil court is to be calculated thus:
If the total gross emoluments earned by the Government
servant are represented by X, and the allowances declared to be
exempt from attachment (Vide clause 6) and, if the Government
servant is under suspensions, any subsistence grant or allowance
made to him are represented by Y, the net amount attachable, if any,
is [(X-Y)/2]-100.
Note.- The revised limits referred to above do not apply
to an order of attachment issued by a Court of law before 4th
September 1963 if such an order specifically lays down that
recovery shall be made in instalments of one-half of the salary
in excess of Rs.100. In such cases any revision in the rate of
attachment will require a revised order of the Court.
(8) (a) If an order of attachment against a Government
servant is received before a previous order of attachment against
the same Government servant has been fully complied with, the
recoveries shall be made by the disbursing office so long as the
total amount recoverable with reference to the attachment orders
is within the maximum limits prescribed in Clause (7) above.
(b) If a new attachment order has the result of increasing
the amount beyond the maximum limits prescribed, the
disbursing officer shall return the attachment order to the court
concerned with a statement showing :-
(i) Particulars of the existing attachment ;
(ii) Particulars of the amount with-held and paid into the
court concerned up-to-date;
and
134

(iii) amount remaining uncovered.

(9) Any deductions which may have to be made on account
of subscriptions (other than compulsory deposits) to provident
funds recognised by Government, taxes on income payable by the
Government servant and debts due to Government should be made
from the non-attachable portion of the Government servant’s salary.
RECOVERY OF GOVERNMENT DUES
94. Government servants who purchase article on credit from
Departments of the State for their own use should pay for them
punctually. In cases where the Head of a Department or other
Government servant considers that it is necessary to recover from
the pay or pension of a Government servant any amounts in
adjustment of his dues to Government or to any concern belonging
to Government when such dues relate to transactions in his private
and individual capacity, a special reference should be made to
Government. Without the special orders of Government no such
recoveries can be effected from the pay or pension of the
Government servant. This rule applies also to cases in which
Government servants stand as security for others and the bill of
charges is not paid either by them or by the purchasers.
(1) Arrears of income-tax may be recovered from the pay or
pension of the Government servants concerned on requisitions from
income-tax Officers.
(2) Dues in respect of sales from the Jail Manufactory may be
recovered from the pay of the Government servants concerned.
135

(3) Whenever possible, hospital charges due to Government

on account of treatment given to a Government servant or a
member of his family should be recovered in advance. Where,
for any reason, such charges are not recovered in advance the
amount payable by the Government servant may, if the claim made
by the hospital authorities is accepted by him, be recovered from
his salary or pension on the requisition of the Medical Officer in
charge of the hospital. Should there be any dispute as regards the
amount due, a reference should be made to Government.
In cases where a patient admitted to the hospital dies
before adequate arrangements are made for the payment of the
charges due on his or her account, a report will be promptly
submitted to Government by the Medical Officer and orders
obtained regarding the recovery of these charges.
Note.- The officers in charge of the hospitals should
see that arrears are not allowed to accumulate for more than a
month.
RECOVERIES FROM SUBSISTENCE ALLOWANCE
94-A. (1) The permissible deductions from the subsistence
allowance granted to a Government servant under suspension
fall under the two categories:-
(a) Compulsory deductions ;
(b) Optional deductions.
(2) Recovery of the following deductions which fall under
category (a) above, should be enforced from the subsistence
allowance:-
136

(i) income-tax and super-tax (provided the employee’s yearly

Income calculated with reference to subsistence allowance is
taxable).
(ii) House rent and allied charges, i.e., electricity, water,
furniture, etc.
(iii) Repayment of loans and advances taken from
Government at such rates as the, head of the department may deem
it right to fix.
(3) The following deductions which fall under category (b)
should not be made except with the Government servant’s written
consent :-
(a) Premia due on Life Assurance Policies ;
(b) Amounts due to Co-operative Stores and Co-operative
Credit Societies.
(c) Refund of advances taken from General Provident
Fund.
(4) The deductions of the following nature should not be
made from the subsistence allowance :-
(i) Subscription to a General Provident Fund.
(ii) Amounts due on court attachments.
(iii) Recovery of loss to Government for which a
Government servant is responsible.
Note.- There is no bar to effect the recovery of
overpayments from the subsistence allowance. In such cases
the retrenchment order in respect of an overpayment caused to
him in the past shall be issued by the Accountant General in
137

consultation with the authority competent to place the Government

servant under suspension. The suspending authority will exercise
discretion to decide whether the recovery should be held wholly in
abeyance during the period of suspension or it should be effected.
If it is decided to effect the recovery, the rate of recovery should
not, in any case, exceed one-third of the gross amount of subsistence
and other allowances admissible.
138

CHAPTER IV
BILLS OF GAZETTED GOVERNMENT SERVANTS
FORM OF SALARY BILLS
95. The claim by a gazetted Government servant for pay and
fixed allowances shall be presented on a bill in Form 18. A gazetted
Government servant who draws a special pay or allowance in respect
of a separate office of which he is in additional charge, need not
present a separate bill for it, unless it is chargeable to a Local Fund
or met from some source other than the Consolidated Fund.
Note 1.- The special attention of all drawing officers is
invited to the various certificates prescribed on the bill forms.
Note 2.- A Gazetted Government servant on leave
preparatory to retirement or on refused leave under Rule 110
Karnataka Civil Services Rules, 1958 or any other corresponding
rule or on such other leave on the expiry of which he is not
expected to return to duty should record a certificate on the
leave salary bill that during the period for which leave salary is
drawn he was not re-employed under Government, Local Fund
or Private Employer.
96. Salaries may be paid only upon the personal claim of
the Government servant concerned and to his personal receipt
and not otherwise, except under the special authority in each
case of Government.
The Government servant may, if he wishes, send the
bill or cheque with a messenger to the treasury or the Bank,
requesting that the moneys be paid to him and the moneys shall
then be handed over to the messenger, but only on the strict
understanding that Government accept no responsibilities
139

whatever for any fraud or misappropriation in respect of any moneys,

cheque or bill handed over to the messenger.
(1) If a Government servant who draws a bill on the Treasury
in respect of a personal claim signs a distinct endorsement in favour
of a specified well known Bank or Agent, payment shall be made
accordingly.
In cases where the payee does not find it convenient to
receive payment personally, he should furnish a discharge on the bill
in the proper form (Form No. M.F.C. 19-A) before the bill is
presented at the Treasury. In such cases the bill shall be returned to
the person presenting it, and will be paid at the Bank in accordance
with the orders of the Treasury Officer, the Bank being responsible
only for strict adherence to this order and for obtaining a proper
discharge from the payee/endorse of the bill in addition to his signature
at the foot of the bill.
(2) A Government servant or any other single person cannot
be constituted an “Agent” under Article 86 for the purpose of
the above rule.
(3) The ruling in this Article applies to all payments,
whether on account of salary, travelling or other allowances,
except payment of remuneration under Article 17(b) (10) of
K.F.C. which under the rules are made to Government servants
on their personal accounts.
(4) When the endorsement on a bill is incomplete or
irregular, the procedure laid down in Article 24 should be
followed. When payment is made by cheque, it is not correct
to disregard the endorsement on the bill and issue a cheque in
favour of the drawer.
140

DRAWING OF SALARIES
97. (a) A Government servant drawing salary for the first time
from any treasury, should present with his salary bill, a Last Pay
Certificate and a pay slip from the Audit Office. If he is a newly
appointed Gazetted Government servant drawing his pay for the
first time pay slip should be attached to his pay bill.
A fresh pay slip would also be necessary from the Audit
Office whenever an officer is transferred from one post to another
within the same station involving change in designation or emoluments.
Last Pay Certificate should be issued by Treasury Officers
to Gazetted Officers, transferred outside the original station without
any delay, to avoid hardship to officers.
(b) In the case of a Government servant newly entertained in
service, the payment of his salary in accordance with instructions
issued by the Audit Office is subject to the production of a certificate
with the salary bill that the Government servant has submitted his
proposals for insurance in the Karnataka Government Insurance
Department, or is contributing to the General Provident Fund due
to his inability to insure owing to overage or certified ill-health or
that he has been exempted from insuring his life. Whenever his pay
is permanently increased he should certify that he has submitted his
proposal for further insurance or that he is ineligible under the rules
for such further insurance. The treasury officer should see that these
certificates are invariably furnished. The above ruling does not apply
to a Government servant appointed on probation as in his case
insurance is optional.
141

CONVEYANCE ALLOWANCE
98. Government servants should certify on the salary bills that
the conveyances maintained, by them, viz., ......................... are in
sound condition and actually in use.
Conveyance Allowance may be allowed to be drawn by
a Government servant, during periods when their conveyances are
under repairs, for not more than fifteen days at a time or a month
on the whole in any one official year.
When the claim for conveyance allowance is based on the
amount spent and this is admissible under a general or special order
of Government, the following certificate should be furnished :-
“I certify that I have spent not less than the amount of
conveyance allowance claimed in this bill towards conveyance
charges in connection with Government work”.
A certificate from the Controlling Officer in the
following form should be attached to the salary bills for the
month of January and July which include conveyance
allowance:-
“Certified that the conveyance allowance claimed in
the salary bill for the month of January/July on account of Sri/
Smt./Sriyuths................................... is in order and that the
conditions attached to its drawal have been fulfilled”.
The treasury officers will not accept or honour the
salary bills for the months January and July which include the
conveyance allowance but are not accompanied with the requisite
certificates.
142

ALTERATION OF PAY
99. No Gazetted Government servant may draw an increased
or a changed rate of pay, leave salary, fixed allowance, or any
reward or honorarium unless the bill on which he draws it is either
pre-audited by the Accountant General, or is accompanied by a
letter of the Accountant General, authorising the amount to be drawn.
These letters will be issued from the Accountant General’s office as
soon as possible ; but as delay may occur if the change is made
near the end of a month, or if it takes effect from a date which
cannot, immediately be ascertained, or cannot be fixed by a certificate
of transfer of charge appended to the bill, Government servants
shall, in the case of pay, leave salary or fixed allowances, either
draw their bills for not more than old rates, or send their bills for
pre-audit to the Accountant General, if they have not received his
letter of authority.
Exception:- “Non-recurring Honoraria may be drawn by
the Gazetted Officer himself by presenting bill in the Treasury in a
simple receipt form on the authority of the sanction issued by the
Competent authority, or a duly certified copy thereof appended to
the bill, without the authorisation of the Accountant General,
Karnataka”.
1
[Note.- In all cases of Training, the officer deputed for
training can draw his pay and allowances on the basis of pay slip
issued by the Accountant General before his deputation, if it is
certified that the officer will continue in the same post but for his
deputation. In case where an officer deputed for training does not
discharge statutory duties and the handing over of cash or stores is
not involved and the total absence from headquarters does not
exceed ten days, the handing over and taking over charge of the

1. Amended by No. FD 8 TFC 88 dt. 14-9-1990 (w.e.f. 16-7-1988).

143

post is also dispensed with.]

LEAVE, PROMOTION, RFSERVATION, TRANSFER,
ETC.
99-A. No Gazetted Officer who has relinquished charge of a
post consequent on his proceeding on leave, or on training or
promotion, reversion or transfer, shall draw any bill on account of
his pay, allowances, leave salary, etc., for any period beyond the
date of making over charge without a fresh authority from the
Accountant General:
Provided that the provisions of this rule shall not apply to
cases of transfers within the same Audit Circle and not involving any
change in designation or emoluments of the officer concerned:
Provided further that in cases where, on the expiry of
leave, an officer is appointed to the same post from which he
proceeded on leave, he shall draw bills for his pay and
allowances from the date of his assumption of such charge on
the basis of the authority of pay and allowances issued to him
by the Accountant General, before his proceeding on leave and,
if such authority has been superseded on the basis of such
revised authority for pay and allowances.
Note 1.- In case any bill presented at the treasury
includes claims for any period beyond the date of making over
charge, the Treasury Officer should, instead of returning the bill
for amendment, pass for payment such portions of the claim as
relates to the period up to the date and is otherwise admissible.
Note 2.- In the case referred to in the proviso to this
Article, the treasury from which the officer concerned draws
his claims, after transfer, shall commence making payments on the
basis of the last pay certificate issued by the Treasury Officer who
144

last disbursed the claims of the officer. For this purpose of the
Treasury Officer issuing the last pay certificate, should clearly indicate
therein complete information given in the uthority of the Accountant
General in his possession, particularly the date, if any, up to which
it is effective.
1
[Note 3.- In cases where a Gazetted Officer proceeds on
leave for a period of 120 days, he may draw his leave salary and
allowances, without an authorisation from the Accountant General,
from the Treasury from which he was drawing his pay immediately
before proceeding on leave, by enclosing a copy of the sanction
duly signed by the sanctioning authority and the certificate of transfer
charge. The correctness of the claim shall be verified by the Treasury
Officer with reference to the Pay slip/ Authorisation issued by the
Accountant General and with reference to the rules and orders
governing leave salary and allowances . 2 [xx]. A copy of the
Certificate of Transfer Charge should also be sent to the Accountant
General.
99-B. Advances to a Gazetted Officer on transfer or on tour or
of leave salary or for purposes of leave travel concessions
3
[or Festival Advances to such an officer] may be drawn from
the treasury on the ordinary Pay Bill or Travelling Allowance
Bill forms on the authority of the sanction or a duly certified
copy thereof appended to the Bill, without any previous authority
from the Accountant General. As regards temporary advances
from the Provident Fund, attention is invited to Clause (f) of
Article 325.

1. Substituted by No. FD 20 CFC 78 dt, 28-2-1979 (w.e.f. 28-2-1979).

2. Deleted by No. FD 5 CFC 79 dt. 18-6-1980 (w.e.f. 18-6-1980).
3. Inserted by No. FD 5 TFC 82 dt. 29-9-1982 (w.e.f. 1-4-1982).
145

No other personal advance can be paid to a Gazetted Officer

unless the payment has first been authorised by the Accountant
General or the claim has been preaudited by him.
Note.- Sanction to personal advances may, if preferred,
be obtained in the form of counter signature on the bill itself
before it is presented for encashment.
TRANSFER OF OFFICE
100. Every transfer of charge of a Gazetted Government
servant proceeding on leave or on transfer or returning from leave
(irrespective of whether such a Government servant is in independent
charge of the office or attached to an office as a general or an extra
assistant) should, without fail be reported by post on the same day
to the Accountant General in Form-19 or in Form No.19-A as the
case may be and in case of a Government servant having independent
charge of a public treasury, statements of the cash balance, of the
stamp, ganja and opium stores and also of the bill forms in stock,
should be prepared, signed by the Government servant taking charge
and forwarded to the Accountant General at the same time.
(1) This rule applies only to charges of Deputy Commissioners
and Tahsildars and not to transfers of executive charge of the treasury
between their subordinates; in the latter case, the fact of the transfer
should simply be advised to the Accountant General.
(2) Every Government servant who is responsible for the
adjustment of advances and who is transferred to another office
before fully accounting for the amounts outstanding against
him should leave for the information and guidance of His
successor, a memorandum clearly explaining the state of
accounts of each item of advance and noting the action to be
146

taken for adjusting the outstanding amounts within the time allowed
by the sanctioning authority. If he does not do so, his responsibility
will not cease and his successor may not be held responsible in
respect of the items not brought to the latter’s notice.
(3) A statement of unadjusted advances and unremedied
objections should be given by the relieved to the relieving
Government servant in Forms 20 and 21 respectively.
(4) Special attention should be paid to the rule in this
Article which requires reports of transfers of charge being
despatched by post on the same day on which the transfer of
charge is made, as any delay in reporting the dates of handing over
and receiving charge of Government servants on transfer from one
appointment to another or when proceeding on leave causes
inconvenience to the office of the Accountant General in auditing the
pay bills of gazetted Government servants.
(5) Copies of the report of transfer of charge sent to the
Accountant General, should, in future, be simultaneously sent
to the Treasury Officer and the Head of the Department
concerned.
In the copies of the reports sent to the Accountant
General Karnataka, and the Head of the Department, a certificate
to the effect that “a copy of the report of transfer of charge has
been sent to the Treasury Officer ....................
....................Treasury, on ..... should invariably be recorded
hereon.
147

TRAVELLING ALLOWANCE
101. The claim for travelling allowance of each gazetted
Government servant should be prepared separately and drawn in
Form No. 22 which provides for the necessary details being furnished.
Note 1.- Claims relating to transfer/travel concessions
should be preferred on separate bills. They should no be mixed
up with those relating to tour Travelling allowance in any case.
Note 2.- Ordinarily not more than one bill will have to
be preferred for the claims of a particular month in respect of a
Gazetted Government servant. The bill should be countersigned by
the Head of the Department or the Controlling Officer before being
presented for encashment in cases in which such countersignature is
required by rules.
Note 3.- Instructions for the preparation of T.A. claims
are detailed in Article 138.
PLACE OF PAYMENT
102. Unless ordered otherwise by Government, bills for pay
and allowances are ordinarily payable at the Treasury of the
Station in which the claim arises.
For drawal of leave salary by a Government employee,
who signs his bills himself when claiming leave salary in respect
of earned leave on average pay (other than leave preparatory to
retirement), the provisions of Article 96 will mutatis mutandis
apply. In the case of all other kinds of leave, such a Government
employee must either appear in person at the place of payment
or furnish a life certificate signed by a responsible Government
Officer or some other well known and trustworthy person. If he
draws his leave salary through an authorised agent, the agent
148

must furnish the life certificate aforesaid or execute a bond to refund

overpayments under the provisions of Article 86.
PAY TO GOVERNMENT SERVANTS IN ENGLAND
103. If pay be due in India to a Government servant absent in
England, he must make his own arrangements to receive it in India.
INSPECTING OFFICERS
104. When a Gazetted Government servant, whose duty requires
him to travel about or inspection, desires to receive payment of his
claims at a place where he is on tour, he shall send his bill to the
treasury officer at his headquarters duly receipted and stamped, and
endorsed as “Pay by Bank Draft” encashable at .........................
to be sent by registered post. He shall also make an application to
the treasury officer, along with the bill inter alia specifying therein the
address to Which the Bank Draft may be sent by the Treasury
Officer. The Treasury Officer shall then arrange to send the Bank
Draft by registered post, the expenses incurred on postage (including
registration charges) being treated as normal expenditure on
correspondence of the treasury.
149

CHAPTER VII
ESTABLISHMENT
SECTIONS OF ESTABLISHMENT
105. For the purposes of audit and the preparation of pay bills,
the Accountant General divides a non-gazetted establishment, when
necessary, into sections in consultation with the Head of the
Department or the office on the following principles:
(a) The division should be uniform throughout the State for the
same classes of establishment ;
(b) The division into sections in large offices should follow the
actual working arrangements of the office ;
(c) In large offices where the members of the ministerial
services are arranged by classes and grades, such as Superintendent,
First Division Clerks and Second Division Clerks, each class or
grade may form a separate section ;
(d) An establishment consisting of a large number of
subordinate Government servants, such as school masters, may
be divided into sections according to the taluks or sub-divisions
of a district ;
(e) Clerks, School masters, etc., should not, except in a
small establishment, be combined with the last grade
Government servants. Such subordinates should form a separate
section, or sections unless they are very few ;
(f) In preparing pay bills, absentee statements, annual
returns of establishments, proposition statements, and other
similar documents, the entries should be made in accordance
with the sections arranged under the provisions of this Article.
150

Note 1.- Parts of an establishment under the same head

of an account which are charged for under different major heads
should be treated as separate establishments.
Note 2.- The Accountant General issues from time to time
a list of the sections fixed by him for each office and the entries in
pay bills, absentee statements, annual returns of establishments,
proposition statements and other similar documents should be made
in accordance with the sections so prescribed.
ANNUAL RETURNS OF ESTABLISHMENT
106. The directions regarding the form, preparation and
submission of the annual return of establishment are contained
in Appendix V.
ALTERATION OF ESTABLISHMENT
107. The Head of the Department or other authority concerned
should scrutinise with the greatest care every proposal for an addition
to an establishment, whether permanent or temporary, or for an
increase in the emoluments of an existing post. He should examine
the financial implications thoroughly, and should not submit the
proposal to the Government unless he is satisfied that it is essential.
108. The scale of pay proposed for a new post whether
temporary or permanent, should be the same time-scale as that
already in force for the posts of the same class or category,
except when a different time-scale has been fixed for temporary
posts in a particular department. When the new post to be
created will form an addition to a cadre which is divided into
grades, the pay of the post should ordinarily be that of the
lowest grade, if a higher rate of pay is proposed, the special
reasons for proposing the higher rate should invariably be stated. If
151

there is no post in existence similar to the one proposed, the following

principles should be observed in proposing a rate of pay for the
new post :
(1) If the post is to be filled by a person not already in
Government service, the pay proposed should be the minimum
necessary to secure the services of a person capable of
discharging efficiently the duties of the post.
(2) If the post is to be filled by a person who is already a
Government servant, the pay proposed should be appropriate
with reference to the nature and responsibility of the work to be
done and the existing pay of Government servants whose status
is such that they are considered likely to be suitable for selection
for the post.
(3) In determining the cost of a scheme, allowances, whether
fixed or variable, should be taken into account. When it is impossible
to determine in advance the exact amount of an allowance, it will be
sufficient to include as accurate an estimate as possible of the amount
required for this allowance.
(4) If the expenditure proposed is to be incurred in the current
year, the proposal should show clearly whether it can be met within
the grant or appropriation for the year. If the expenditure can be
met by re-appropriation, a re-appropriation statement in Form 22-
A should also be submitted.
109. Every proposal to add to, or to make a change in an
existing establishment should be explained fully in the
communication addressed to the authority competent to sanction
the proposal. The following information should invariably be
furnished :
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(i) The reasons for considering the addition or the change

Proposed to be necessary,
(ii) The present cost either of the section or sections
affected or of the total establishment, as the circumstances may
require ;
(iii) The corresponding cost after revision ; and
(iv) The details of the number and pay of the posts, if any,
which it is proposed to add to the establishment and of the number
and pay of the posts, if any, of which it is proposed to change the
conditions.
(1) Government servants on provincial scale, e.g., Assistant
Surgeons, Police Inspectors, etc., constitute separate
establishments by themselves and whenever any increase or decrease
of their emoluments is proposed, the proposals should be for that
class of Government servants only and for the whole State without
the specification of any other class of establishment in any particular
district. The same procedure should be followed in regard to gazetted
Government servants.
(2) In the case of proposals which deal with the reorganisation
of establishment, the Head of the Department submitting the proposal
should certify that claims of pension that may arise in consequence
of the reorganisation have been considered with reference to the
provisions of Karnataka Service Rules, and should specify any cases
in which the maximum pension ordinarily admissible will be subject
to reduction under that Article.
A proposal to add to or modify an existing establishment
shall be accompanied by a proposition statement in duplicate in
Form 23, (1) if it involves a general revision of establishment, (2)
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if it cannot be set out clearly without proposition statement, and (3)

when the scheme involves recurring expenditure of Rs.6,000 per
annum or more.
110. No proposition statement is required in the following cases
:
(i) when the new scheme proposed involves no change in
establishment except the creation of a post or posts the like of
which does not yet exist.
(ii) when the proposal involves only the retention without
alteration of an existing temporary establishment for a further
period;
(iii) When the proposal is solely for the grant of a
compensatory allowance, a special pay or personal pay to a
member or members of an existing establishment, or solely for a
change in the designation of an existing post.
Where the proposition statements are not required under the above
rules, the proposals should distinctly indicate the extra cost of
Government including clearly the fixed and variable allowances
attached to the appointments.
111. The following instructions should be observed in preparing
a proposition statement :
(i) The statement should relate strictly to the section or part
of the office affected by the proposals. No details or figures of total
cost should be furnished for the other parts or sections of the office;
(ii) The latest order sanctioning the existing establishment should
be quoted and not any earlier orders on the subject;
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(iii) The Increase or decrease in cost involved in the proposals

should be Shown against each post or class or category of posts
affected;
(iv) Grand totals should be given for the number of posts in
and the total cost of the several sections affected, both under the
existing orders and according to the proposal made and also of the
amounts under “increase or decrease per month”;
(v) Pay which is not incremental should be entered in the
column headed “Maximum”;
(vi) In the case of a temporary establishment the period for
which it is proposed that it should continue should be entered;
(vii) When the pay of any post, existing or proposed rises
from the minimum to a maximum by periodical increments, the
average monthly cost should be calculated according to the
formulae given in Article 112 below and not the actual cost or the
cost in the first year;
(viii) Fixed allowances should be entered in a proposition
statement but not variable allowances, such as ordinary travelling
allowance, information in regard to which should be furnished
separately in the communication addressed to the authority
competent to sanction the proposal.
112. The following rules should be followed in determining
the average cost of appointments on progressive (time scale of
pay) pay:
I. A time scale of pay raising to its maximum by five
equal yearly increments is equivalent to a fixed pay equal to the
minimum, plus two-thirds or if the appointment is a ministerial
appointment, plus three-fourths of the difference between the
minimum and the maximum.
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II. When the increment is annual or biennial and the period of

rise is above five years, the, following principles shall be followed:
(a) In the case of’ ministerial appointments, value=minimum+(3/
4-x /60) of the difference between the maximum and the minimum.
(b) In the case of other than ministerial appointments,
value=minimum+(2/3-x /90) of the difference between the
maximum and the minitnum.
Here x represents the excess in the period of rise in
years over five years when the increment is annual, or over four
years, when the increment is biennial.
III. When the increment is less than five years, the following
method shall be applied:
(a) In the case of ministerial appointments, value=minimum+(3/
4+x /20) of the difference between the maxin,ium and the minimum.
(b) In the case of other than ministerial appointments,
value=minimum+(2/3+x / 15) of the difference between the maximum
and the minimum.
Here x represents the deficiency required to make up five
years when the inerement is annual and four years when the increment
is biennial.
113. No proposals for revision of establishments should be
submitted after the close of the first two quarters of the official
year except when called for by Government.
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Note.- Verification of the proposition statement by the

Accountant General will be got done in cases of very
complicated establishments. The Accountant General will check
only such proposition statements which have been forwarded to him
for verification by Government in view of their complicated nature.
The work of verification of the correctness of the facts
regarding the ‘present establishment’ is the function of the executive
authority, and if a sanctioning authority is to exercise its functions
satisfactorily, he should maintain adequate records and statistics of
his own sanctions and be in possession of a full picture of the
present establishment.
In respect of proposition statements not sent to the
Accountant General, Karnataka, for his verification. they will
be verified in the concerned Administrative Secretariat.
RULES REGARDING TEMPORARY
ESTABLISHMENTS
114. The following additional rules should be observed as
regards temporary establishments:
(1) A clear distinction should be maintained between temporary
establishment charged to the estimate for a work and temporary
establishment sanctioned for general purposes and charged to the
departmental head ‘Establishment’. The temporary establishment
sanctioned for general purposes of control without reference to any
special work should be regulated by sanctioned scales as in the
case of permanent establishments.
(2) No temporary establishment should be continued in
anticipation of sanction and should there be a need for renewal
of sanction, application should be submitted in time so as to
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reach Government at least three months before the sanctioned period

expires. Government servants who do not dispense with temporary
establishments on the dates on which sanction expires will render
themselves personally liable for the expenditure involved.
(3) In the absence of an express order specifying the period
for which a temporary establishment should be retained, it should
be considered to be terminated at the end of February of the
financial year in which the sanction was accorded.
PLACE OF PAYMENT
114-A. The claims on account of pay and allowances of the non-
gazetted personnel should be deemed to arise at the station where
the drawing and disbursing officer, who draws the claims, is stationed.
MONTHLY BILL
115. Form 24 shall be used for bills for the pay fixed allowances
and leave salaries of non-gazetted Government servants drawn by
the head of the office for disbursement to them. Separate bills shall
be prepared in each office for each of the following classes, if it
exists:
(a) Permanent Establishment.
(b) Temporary Establishment. and
(c) Government servants for whom no establishment returns
are submitted and no service books are maintained.
116. With the exception mentioned in Article 117 infra the name
of every substantive, officiating, or temporary Government servant
on whose behalf a claim is made and his post shall be shown in
column 2. Against each temporary post the number and date of the
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order and the name of the authority sanctioning it and the name of
authority which passed the order shall be entered. The rate of pay
etc., claimed shall be shown against each name in columns 3 to 8.
If the payment of any claim for the month to which the bill relates
is postponed, it shall not be omitted from the bill, but the amount
of each claim held over for future payment shall be noted in red ink
in the appropriate column and ignored while totaling the bill. Column
No. 8 shall be used to show the amount actually drawn for each
section. Deductions made from the pay of each incumbent shall be
shown in columns 9 to 13. When pay, etc., is claimed only for part
of a month, the number of days for which it is claimed shall be
entered against the Government servant’s name. The part of a bill
relating to each section shall be marked off in red ink. The component
items of an establishment bill shall be checked and the total shown
in the bill shall also be checked by adding up the items. If the bill
relates to a small establishment, the drawing officer shall either check
it himself or leave it checked by a gazetted Government servant
under his orders, before he signs it. If the bill relates to a large
establishment. The drawing officer shall ensure that the whole bill is
thoroughly checked by some one other than the clerk who prepared
it, and shall himself check a part of the bill or arrange for a gazetted
Government servant to do so, before he signs it.
117. 1[The names of the following categories of Government
Servants shall be omitted from Pay Bills:-
1. Head Constables,
2. Constables, and

1. Substituted by No. FD 4 CFC 78 dt. 3-11-1978 (w.e.f. 3-11-1978).

159

3. Incumbents of posts carrying a fixed Pay not exceeding

Rs. 500 p.m. or on time Scales of pay, the maximum of which does
not exceed Rs. 500 p.m.]
(2) Incumbents of posts carrying a fixed pay not exceeding
Rs.150 per month or on time scales of pay the maximum of
which does not exceed Rs.150.
In all such cases, a certificate in the following form
shall be furnished in the bill:
“Certified that all persons whose names are omitted
from, but whose pay has been drawn in this bill have actually
been employed during the month, that full details of the names of the
persons concerned and the emoluments drawn for them working up
to the total included in this bill have been duly shown in the office
copy and that the emoluments drawn are according to the relevant
rules and orders.”
Note 1.- The Drawing Officer shall have the office copy
of each bill relating to these classes of Government servants prepared
separately so as to show full details of names, leave etc. The total
of this pay bill shall then be entered in the pay bill. The drawing
officer shall verify and satisfy himself that the grand total in the office
copy of the bill agrees with the total amount in the fair copy.
Note 2.- Physical fitness certificates of such of the
Government servants, as are not required in the Accountant
General’s Office for purposes of audit, need not be attached to
the establishment pay bills sent to his office for audit.
“Note 3.- As regards claims of Government servants
referred to in this Article held over for future payment, the
procedure prescribed in Article 116 shall apply”.
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118. The claims of Government servants whose names are

omitted from the bills under Article 117 above should not be
lumped together but entered as a single item in the bills. The bills in
such cases should be shown separately the numbers on different
rates of pay or with different designations. The claims for broken
periods of a month and claims of persons on leave should also be
shown separately, with particulars regarding the kind and period of
leave.
Note .- The special attention of all Drawing Officers is invited to
the various certificates prescribed on the bill forms.
118-A. A Certificate from the Controlling Officer in the following
form should be attached to the pay bills for the months of January
and July which include conveyance allowance:
“Certified that the conveyance allowance claimed in the
pay bill for the month of January/July on account of Sri/ Smt./
Sriyuths..............................is in order and that the conditions attached
to its drawal have been fulfilled.”
The Deputy Commissioner (Treasury Department) will
not accept or honour the pay bills for the months of January
and July which include the conveyance allowance but are not
accompanied with the requisite certificates.
119. Fines imposed on Government servants (wherever
permissible) for ordinary neglect of office duty are properly
recoverable by stoppage from pay and consequent short drawings
from establishment pay bills.
ABSENTEE STATEMENT
120. The Drawing Officers shall ordinarily attach an absentee
statement in Form 25 to the monthly establishment pay bill if any
person (other than the last grade Government servants) has been
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absent during the month on leave (other than casual leave) or

deputation or suspension or without leave or if a post has been left
vacant substantively whether or not any Government servant officiated
in it. When signing the absentee statement, the Drawing Officer shall
see that a diagonal line is drawn across the blank space, if any,
below the last entry.
(1) When a Government servant is absent from any cause,
such as deputation, suspension or leave, or without leave, the
particulars of the absence and the arrangements made in
consequence should be shown under the appropriate heads in
the absentee statement. When the Government servant is on
other duty or deputation, the nature of the duty or deputation
with the number and date of the Government order sanctioning the
deputation, should be specified. If the absence extends over a period
of more than one month, the particulars thereof and of the
arrangements made in consequence should be repeated in the
statement for each month. When an extension of leave is granted,
the fact should be stated in the column for remarks.
(2) Each chain of arrangements consequent on each absence
should be separated from others by a line ruled across the
absentee statement after the name of the last acting Government
servant.
(3) If any Government servant is absent on casual leave he
does not forfeit any part of his pay for the period of his absence,
and he should not be reckoned as on leave. His name should not
be included in the absentee statement, nor his absence noted in his
service book.
(4) When any Government servant is granted leave who during
the period of duty, immediately preceding the leave, which is
taken into account for the calculation of leave granted to him served
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under a Local Fund, separate report should be made in the following

form:-
A.B. (absent on............................) has during his service,
immediately preceding the date on which he availed himself
of................................ which is taken into account for the
calculation of leave granted to him, been employed -
1. In an office paid from the State Revenues from the
............................to the...........................during which he drew
an aggregate salary of Rs..............................................
2. In an office paid from a Local Fund from the
.............................to the............................... during which he drew
an aggregate salary of Rs..............................................
A.B’s. allowance during the leave are to be charged to
Local Fund ... Rs. a month
121. (1) Establishments borne on a ‘Provincial Scale’ are those
for which a consolidated sanction is accorded for the State as a
whole without reference to the requirements of each office. Heads
of Departments will, therefore, have discretion to distribute the posts
to the several offices according to the exigencies of service. Posts
carrying different grades of pay, should also be regarded as borne
on amalgamated ‘Provincial Scales’ as Heads of Departments have
discretion to fill up the posts from any one of the sanctioned grades.
(2) As audit in respect of the establishments on a ‘Provincial
Scale’ is conducted separately from that of posts borne on ‘Office
Scales’ pay and allowances of these establishments should be drawn
in separate establishment bills and should not be included in the bills
of other office establishments. A consolidated Absentee Statement
should also be furnished to the Accountant General’s Office monthly
by the Head of the Department, not later than the 15th of the month
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following the months to which it relates.

(3) The Drawing Officers should furnish necessary information
to the Head of the Department in sufficient time to enable him to
prepare the consolidated Absentee Statement and sent it to the
Accountant General’s Office before the due date.
121-A. (1) When leave salary based on average pay is drawn in
a bill for a Government servant, the bill in which it is first drawn shall
be accompanied by a statement in Form 26 attested by the Drawing
Officer showing the calculation by which the amount drawn on
account of leave salary has been deducted. If the calculation is
based on pay drawn outside the Government servant’s substantive
section or office, a reference to the bills in, or the office from, which
such pay was drawn shall be given in the statement.
(2) If leave salary is based on actual pay and not on average
pay, the Drawing Officer shall attach to the bill a certificate in
one of the following forms :-
(i) If the absentee is entitled to leave under the Karnataka
Leave Rules, 1957:
“That the leave salary is based on the pay of a permanent
post held substantively by the absentee at the time of taking leave”.
(ii) In all other cases :-
“That the leave salary claimed is admissible under (a). (a)
The rule under which the leave salary has been claimed should be
specified here”.
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121-B. A certificate to the effect that the Government servant on

leave preparatory to retirement, or refused leave under Rule 11 of
Karnataka Civil Service Rules, 1958, or any other corresponding
rule, or such other leave, on the expiry of which he is not expected
to return to duty, was not employed under Government Local Fund
or a private employer during the period of such leave, should be
recorded by the Drawing Officer on the bill in which leave salary for
such a Government servant is drawn after obtaining from him
declaration regarding non-employment.
122. The Head of an Office need not attach an Absentee
Statement it Form 25 to his monthly establishment pay bill so
far as it relates to any establishment, the scale of which is fixed
for the State. In those cases, however which the power to
sanction leave and officiating arrangements within the office in
consequence thereof has been delegated to heads of offices
within the prescribed limits, the requisite Absentee Statement shall
be furnished by them along with the pay bills and such vacancies
and arrangements will be included in the consolidated Absentee
Statement to be furnished by the controlling authority.
123. All permanent events such as deaths, retirements, permanent
transfers and first appointments, which find no place in the increment
certificate or absentee Statement shall be recorded in the remarks
column of the pay bill. In the case of establishments on progressive
pay, statement of substantive changes in Form 27-A (in -the case
of Government servants other than those referred to in Article 117
and Form 27-B (in the case of Government servants whose names
do not appear in bills) shall accompany the pay bill.
Note .- A certificate to the following effect shall also be
recorded in the pay bills.
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“Certified that all Government servants referred to in Article

117 for whom increments have been claimed in the bill have rendered
the required period of approved service entitling them to the increased
pay drawn in the bill”.
124. When the name of a Government servant appointed
permanently or on probation to a post appears for the first time
in the pay bill of an establishment, the previous post in the
Government service, if any, held by him shall be stated and a Last
Pay Certificate attached showing the date of handing over charge,
advances outstanding, etc. In the case of new appointments, the
number and date of sanction creating the new appointment shall be
quoted in the bill in which pay is drawn for the first time.
Note 1.- No appointment in any office will be accepted
by the Audit Office or the Treasury unless the first entry of the
new name in the pay bill is supported by a certificate that the
rules rendered the required period of approved service entitling
them to Government service have been observed.
Note 2.- If a pensioner is re-employed the fact should be
stated in the bill (along with details regarding pay drawn at the time
of retirement, pension and pension equivalent of Death-cum-
retirement Gratuity).
INCREMENTS
125. When a periodical increment is claimed on behalf of a
Government servant in an establishment pay bill, an increment
certificate In Form 28 shall be attached to the bill except in the
case of those referred to in Article 117. The increment certificate
in respect of the Drawing Officer (non-gazetted) will be passed
by the next higher authority.
166

When an increment is due to a Government servant,

otherwise than for having been the incumbent of a specified post
(less periods not counting for increments as shown in the tabular
portion of the certificate) an explanatory memorandum showing briefly
and clearly the grounds on which the increments is clarified shall be
attached to the increment certificate.
Note.- Office copies of all increment certificate including
those referred to in Article 117, shall be kept for record and attached
to the office copies of pay bill retained by the disbursing officer.
126. Deleted.
127. Where an increment claimed operates to carry a
Government servant over an efficiency bar, the claim shall not
be paid unless it is supported by a declaration from the competent
authority that it has satisfied itself that the character and
efficiency of the Government servant concerned are such that he is
fit to cross the bar. In order to prevent the crossing of an efficiency
bar becoming a mere matter of form it is imperative that every case
shall be carefully scrutinised by the sanctioning authority before
signing the declaration prescribed above.
SANCTION OF ESTABLISHMENTS, ETC.
128. (1) The Financial Powers of the various Heads of
Departments are given in the Book of Financial Powers. Officers
appointed to be in charge of the current duties of a post shall be
competent to exercise all administrative, and financial powers vested
in the regular incumbent of that post. Such an Officer should not
however modify or overrule the orders already passed by the regular
incumbent of the post, except in an emergency, without obtaining
the orders of the next higher authority.
167

(2) The powers delegated to officers subordinate to Heads of

Departments are contained in the Departmental Manual or standing
orders.
TRANSFERS
129. The entire salary for the month in which a transfer has
been made shall be drawn on the bill of the establishment to
which the Government servant is transferred, after the close of
the month, attaching thereto the requisite Last Pay Certificate, and
not in several bills as for example, one for the salary due from the
first of the month to the date on which the Government servant
makes over charge in the establishment from which he is transferred,
another for the period of joining time, and a third from the date on
which he joins the appointment in the establishment to which he is
transferred to the end of the month.
Note.- The pay of a person, transferred from one Local
Fund or Municipality to another or to a different Audit Circle, up
to the date of his transfer, shall be drawn on a supplemental bill of
the office from which he is transferred, and disbursed to him. His
pay for the period of joining time and for the rest of the month shall
be drawn in the pay bill of the establishment to which he is transferred.
In respect of Government servants transferred to Local Funds the
joining time allowance and travelling allowance for the forward and
return journey shall be borne by the Local Body concerned.
130. (a) Transfer of Government servants from one department
to another without a formal change or transfer of appointments
thereby necessitating their pay and travelling allowances being debited
to the department to which they belong but in which they are not
working is not regular and shall not be made.
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(b) In the case of a candidate who is transferred from one

department to another in the exigencies of service or other
circumstances by a competent authority, his lien may be retained in
the former department and he may also be granted other benefits
under the Karnataka Civil Service Rules; but in the case of a
candidate who leaves one department and joins another as a fresh
recruit in accordance with the rule of recruitment cannot be dealt
with on the same footing, nor can it be treated as one of transfer,
as he elects. to take up the new appointment offered in the latter
department of his own accord and in his own interest.
Note.- In cases where local candidates in the Departments
of Government are regularly appointed in other departments, last
pay certificates may also be issued even though the transfer is not
in the public interest.
131. The Head of an office is not at liberty to readjust the
salary of a Government servant by giving one Government
servant more and another less than the sanctioned pay of his
post, nor may distribute the pay of an absentee otherwise than as
provided in the Karnataka Service Rules. But in the case of
departments or establishments divided into grades, there is no
objection to an excess appointment being made in a lower grade on
an interim basis, against a vacancy left unfilled in a higher grade.
This liberty must, however, not be used for the purpose of increasing
the numerical strength of an office. For each vacancy in a higher
grade, only one extra appointment in a lower grade is admissible.
This rule is applicable to ministerial establishments also.
169

ARREAR BILLS
132. Arrear pay shall be drawn on a separate pay bill and not
in the original monthly pay bill. The amount of arrears claimed for
each month shall be entered separately in the bill furnishing reference
to the bill in which the amount was omitted or withheld, or in which
it was recovered by deduction, if the claim relates to an allowance
or special pay newly sanctioned, the name of the authority which
sanctioned it and the number and date of the order sanctioning it
shall be entered in the bill. Arrear bills may be presented at any time
subject to the conditions prescribed (see Articles 18 and 19) and
may include as many items as are necessary. The drawing officer
shall certify in every arrear bill that no part of the amount claimed
has been drawn previously. Only one bill is sufficient for all arrear
claims of different months which are drawn at the same time,
particulars of claims of different months, being however, shown
separately in the bill.
(1) As the monthly bill should include the full claim for the
month, whether drawn or not, no subsequent claim preferred in an
arrear bill which is not covered by the amount thus shown as undrawn
in the original monthly bill or by an amount refunded into the treasury
or by a fine which has been remitted, will be paid without full
explanation of the circumstances under which it was omitted from
the monthly bill.
(2) For drawing the amount of a fine recovered by short
drawing from the pay of a Government servant, no other authority
than the order remitting the fine is necessary.
133. All supplemental claims should be verified thoroughly by
the Drawing Officers. Such claims should invariably be noted in the
original Acquittance Rolls filed in their offices and a certificate in the
170

following form shall be recorded by them, in addition to the non-

payment certificate prescribed above, in all supplemental pay bills:
‘Certified that the supplemental claims preferred above
have been verified with reference to the acquittance rolls for
the concerned months filed in this Office/the concerned Offices
and also that they have been noted against the entries shown
therein as withheld or omitted.’
Supplemental pay bills without the above certificates
recorded thereon by the Drawing Officers will not be paid at
the treasuries when presented for payment.
A note of the arrear bill should invariably be made in the
office copy of the bills for the period to which the claim pertains
over the dated iniitials of the drawer to the arrear bill, in order to
avoid the risk of the arrears being claimed over again.
1[
Note 1.- A “due and Drawn Statement” in respect of
arrears of pay and allowances of a Government servant shall be
prepared by the drawing and disbursing officers of the office in
which the Government servant is currently working and refer it
to the earlier office(s)/parent Office as the case may be for verification
of the claim. The latter office after making necessary entries in their
records (i.e., in the office copies of the bills) return it to the concerned
drawing officer with a certificate that the arrears relating to the
Government servant have been noted in the relevant office copies
of the bills. On receipt of the “Due and Drawn Statement” duly
verified by the earlier/parent Office, the drawing and disbursing
officer may prefer the arrear claims of the Government servant in
the proper forms recording the certificate as required in Article 132,

1. Substituted by No.FD 15 RFC dt. 28-6-1978 (w.e.f. .5-9-74)

171

draw the bills from the Treasury and disburse the arrears to him on
proper acquittance.
The expenditure in this behalf may be debited to the budget
provisions of his office.
Note 2.- The claims relating to tour/transfer/travel
concession from one office to another office and in respect of whom
last pay certificates have been issued, should not be drawn by the
office from which these officials have been transferred, even though
bills for their arrears may have to be prepared by that office. Such
bills should be encashed and disbursed only by the officer under
whom these Government servants are actually working at the time
of disbursement.
SERVICE BOOKS
134. Special attention is drawn to the rules regarding service
books contained in the Karnataka Service Rules. The service
book is a contemporary record in minute details of the official
career of a Government servant and every entry in it shall be
attested by the Head of the Office each time an entry becomes
necessary due to orders passed by him or any higher authority.
Non-pensionable service should be distinctly shown as such in column
2 of the service books.
135. Service books shall be kept in the custody of the Head of
the Office. When a Government servant is transferred to another
office, his service book shall be sent to the Head of the Office to
which he is transferred and not made over to him nor shall it be
given to him when proceeding on leave. When non-gazetted
Government servants are officiating in gazetted appointments, their
service books shall be kept by the head of the office to which each
such Government servant permanently belongs but when they are
confirmed in such appointments their service books shall be sent to
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the office of the Accountant General for record.

136. Deleted.
TRAVELLING ALLOWANCE
137. Travelling allowance of establishments, other than permanent
or fixed allowances, shall be drawn in Form 29 setting forth the
details of the journeys and explaining any divergence from the
recognised route; ordinarily not more than one bill will have to be
preferred for the claims of a particular month in respect of a
Government servant. The bill should be countersigned by the Head
of the Department or Controlling Officer before being presented for
encashment in cases in which such countersignature is required by
the rules. When actual expenses are drawn under the rules, details
therefor should invariably be furnished in the travelling allowance
bill; the travelling allowance bill will be encashed at the treasury in
which the pay bill of the establishment is encashed and the amounts
distributed as in the case of establishments bills.
(1) The Government servant countersigning travelling allowance
bills will maintain a register in Form 30 in which he will note the bills
he countersigns.
(2) Travelling allowance bills of subordinate Government
servants shall be prepared and passed through in all their stages
as expeditiously as possible, and when they are delayed either
in the office where such bills are prepared or in the office where bills
are received for countersignature for more than a month, a note of
explanation shall be added on the bills.
(3) The drawing officers shall prepare separate travelling
allowance bills in respect of the non-gazetted Government
servants, whose pay exceeds Rs. 200 per mensem.
173

Note.- The claims relating to tour/transfer/travel concession

should be preferred on separate bills and should not be mixed up
in one bill.
138. The rules of procedure regarding the preparation of
Travelling Allowance bills are given in the Karnataka Service
Rules. To facilitate audit and rninimise correspondence, attention
is invited to the following points:
(1) The hours at which a journey began and ended should
always be noted.
(2) A certificate should always be inserted in the case of
a non-gazetted Government servant other than executive making
a road journey which does not exceed twenty miles to the effect
that he was ordered to travel by public or hired conveyance.
(3) Whenever mileage is claimed for a journey which can be
performed by rail, or partly by rail and partly by road, the claims
should be accompanied by an explanation duly accepted by the
controlling or countersigning officer that the road journey, was made
in the interest of public service for purposes of inspection or for
other causes which should be clearly stated. This concession is to
be granted for the forward journey only.
(4) Claims on account of travelling allowance of Government
servants summoned to give evidence must be supported by certificate
from Courts in the prescribed form as specified in the Karnataka
Service Rules.
(5) Such of the printed certificates in the bill as are not
necessary should be scored through, and those retained should each
be attested with the initials of the drawer of the bill.
174

(6) Purpose of journey should be specifically stated.

(7) Number of miles travelled by road whether independently
or in continuation of railway journey should always be entered in
column 13 of the bill.
(8) Travelling allowance should not be claimed for journeys
within a radius of five miles from headquarters, nor can this
distance be added on to a journey beyond it performed the same
day.
(9) Mileage should not be drawn for Gazetted Officers
and non-gazetted executive establishments for marches of not
more than twenty miles.
(10) When mileage is claimed for the last grade Government
servants, the reason for not providing them with seats in carts
engaged at Government cost should be given.
(11) When Government servants are transferred, the period
of transfer to the new place should invariably be stated and the
pay drawn by them before and after the transfer specified. It
should also be clearly noted whether the transfer is in the interests
of public service or otherwise. In case of reversions, the cause of
such reversion should be specified.
(12) Fractions of a mile in the total of a complete journey
performed by a person should be omitted and not added on to the
fraction of a mile due to another complete journey in the same
month.
(13) Halts for more than ten days made at a place should
always be supported by the sanction of the Heads of Departments
specified in the Karnataka Service Rules.
175

(14) When the first item in a travelling allowance bill is a halt,.

the date of commencement of halt should invariably be stated.
(15) The following certificates should be furnished on the Leave
Travel Concession bills by the officers concerned as indicated below
with a view to satisfy that the conditions laid down in the Karnataka
Civil Service Rules have been fulfilled.
CERTIFICATE FOR CLAIMING TRAVEL
CONCESSION FOR HOME VISIT
Certified -
(1) That I and /or my family members travelled in
................................class, Vide Ticket Nos............................ for
the outward journey and Nos....................for the return journey.
(2) That I have rendered a continuous service for not less than
one year on the date of performing the journey.
(3) That I have already submitted my declaration to the effect
that my home town is..............................................
(4) That I have not submitted any other claim so far, for the
leave travel concession in respect of myself and/or my family members
in respect of the block of two years 19................ and 19
..........................
(5) That I have already drawn T.A. for the leave Travel
Concession in respect of a journey performed by me/my wife
with ........................... children. This claim is in respect of the
Journey performed by my wife/myself with..............................
children, none of whom travelled with the party on the earlier
occasion.
176

(6) That the journey has been performed by me/my wife with
children to the declared home town viz........................
(7) That my husband/wife/is not employed in Government
service and that the concession has not been availed of by him/
her separately for himself/herself or for any of the family members
for the concerned block of two years.
“(7) (a) Certified that my family members, in respect of whom
the concession is claimed, are wholly dependent on me”.
(8) That before transfer journey I had been to home-town
on.................... leave exceeding/not exceeding 4 months and
proceeded there from to new station.
(9) That I have been to home-town on
................................... leave from tour station/headquarters and
there from proceeded to headquarters/tour station.

Signature...........................................
Designation .......................................

Certified that the certificates No.2 and 3 tally with the

entries made in the Service Book of Shri..................................
as recorded. The payment of travel concession is sanctioned in
Order No......................................
Certified that the........................................... leave applied
for from ................... to ............. was refused in the interest of
Public Service and that the official was informed in writing that no
leave could be granted to him at any time in the calendar year in the
exigencies of public service.
177

Necessary entries as required by Rule 551 of K.C.S.Rs.,

have been made in the Service Book
of Shri/Smt ....................................

Head of Office/Controlling Officer.

Certified that the claims are in accordance with the

provisions of Rules Nos. 549 and 550 of K.C.S.Rs.

Drawing Officer/Controlling Officer.

Note.- Portion not relevant should be scored out.

DEARNESS ALLOWANCE
139. The rules regarding the grant of Dearness Allowance to
Government servants on account of increase in the cost of living are
detailed in Appendix VI.
178

CHAPTER VIII
CONTINGENCIES
140. The rules relating to contingent charges are detailed in the
Manual of Contingent Expenditure separately issued.
179

CHAPTER IX
MISCELLANEOUS CHARGES
TERM DEFINED
141. The terms “Miscellaneous Charges” used in this Code
means all expenditure other than those falling under pay and
allowances, contingencies and works. Except where authorised by
the rules in this Chapter and the Book of Financial Powers or other
authorised Codes or by any general or special orders of Government,
no miscellaneous expenditure of any kind may be incurred by any
Government servant without the specific sanction of Government or
the authority to whom the Government have delegated the power to
sanction such expenditure. In the case of payments for which no
specific forms have been prescribed, the claims should be preferred
in Form 3.
REFUNDS
142. The Powers of the Heads of Departments in the matter of
sanctioning the several kinds of refunds and the special procedure
for refunds of certain items of revenue are given in the Book of
Financial powers. In cases not provided for therein, sanction of
Government is necessary.
1
[Note 1.- Heads of Departments, District and other
Officers exercise full powers to sanction refunds of revenue. Joint
Director/Controlling Officers and Deputy Director of Agriculture
may sanction refund of revenue upto Rs. 5,000 in each case.
Superintendent Engineers may sanction refunds of revenue upto Rs.
2.000 in each case.

1. Inserted by No.FD 12 RFC 77 dt. 19-5-1978 (w.e.f. 1-12-1974).

180

Note 2.- Heads of Departments, joint Directors /Controlling

Officers exercise full powers to sanction refund of wrong or excess
credits and District and other Officers may sanction refund of wrong
or excess credits upto Rs.500 in each case.]
143. 1[(a) Every refund shall be noted against the original entry
in the departmental accounts, Where all receipts are entered in
detail. The voucher for refunds in Form 31 provides for a certificate
of such a note to be made by the authority competent to refund the
amount under his signature and he will also certify in the refund
order that the refund has been noted against the original receipt
entry in the departmental account under his initials. He will also be
responsible to see that no refund regarding the sum noted in the
refund order has been previously granted;
(b) The departmental officers while issuing the refund orders
should simultaneously issue an advice in the form No. 31-AA in
duplicate to the Bank/Treasury on which the refund order is issued
for payment, so that the Bank may make payment when such order
is presented by the concerned party. The advice will be prepared
in triplicate. One copy will be retained in the office of the Refunding
Authority and two copies will be sent to the Bank/Treasury. The
Bank/Treasury will return one copy of the advice to the Departmental
Officer after noting the date of payment on the advice;
(c) The Competent Departmental refunding authority should
also send to the concerned Bank/Treasury his specimen signature
duly attested by an Officer whose signature is already lodged with
the Bank/Treasury.

1. Substituted by No.FD 10 TFC 83(I) dt. 8-10-1984 (w.e.f. 7-4-1977).

181

(d) The amount of refund should be classified under the

concerned “Revenue Head” “Deduct Refund” and the debits
will be included by the Bank in the payment scroll.
Note 1.- Refund of Tax Revenue such as Sales Tax. Motor
Vehicles Tax etc., shall be as per Forms, procedures and provisions
prescribed in the respective Acts.
Note 2.- The refunds, of sales tax are arranged by the
Commercial Tax Officers or the Assistant Commercial Tax
Officers by refund orders on the treasury. In the case of Bank
treasuries such orders are issued on the bank direct. Advices of
such orders will be prepared, in triplicate, in form No. KFC 31
-A, in respect of each refund order, one for retention in the
Office of the Commercial Tax Officers or the Assistant Commercial
Tax Officers concerned and the other two for transmission to the
Treasury/ Bank of which one will be returned by the Treasury/Bank
to the Commercial Tax Officer or the Assistant Commercial Tax
Officer with the date of payment noted thereon.
The Commercial Tax Officers or the Assistant Commercial
Tax Officers will intimate to the Treasury/Bank, from time to time,
the designation of the Officers authorised to issue such refund orders
and the numbers of the Refund Order Books that are brought into
use by them.
Note 3.- Refunds of loan amounts recovered in excess are
also governed by the provisions of this Article.
1
[Note 4.- Refund of Court fee ordered by the Court shall
be as per form, procedures and provisions prescribed in Court Fee
and Suits Valuation Act and Rules and the refund need not be noted
against the original credit.

1. Substituted by No. FD I TFC 85 dt.19-11-1986 (w.e.f. 25-2-1985).

182

144. (a) Refund bills may be presented for payment at the

treasuries which received the amounts originally. Such bills when
presented for payment should have recorded on them the original
orders of the authority sanctioning the refund or have attached to
them duly authenticated copies of the orders sanctioning of refund:
(b) In the case of refunds sanctioned by Government, it will
be enough if an endorsement noting the number and date of the
Government order is made on the bill itself and attested by the
departmental countersigning authority concerned.
(c) As regards refunds of examination fees, a certificate should
be endorsed on the original receipt by the Deputy Secretary,
Karnataka Public Service Commission, specifying the amount to be
refunded and the receipt returned to the party for presentation at the
Treasury in which the amount was originally credited.
Note 1.- As a precaution against double refunds of Land
Revenue or other receipts, the amount and the date of each refund
should be noted by the Treasury Officer against the original item of
credit in the Treasury Receipt Register.
Note 2.- In paying refund bills, the Treasury Officer should
see that the certificate of note of refund in departmental accounts is
recorded on bills before they are encashed.
144-A. Unless otherwise provided by any law or rule or
departmental regulation, an order for refund of revenue shall
remain in force 1[for a period of 3 months after the month of
issue], and no payment shall be made on its authority thereafter
unless, it is got revalidated by the sanctioning authority.

1. Inserted by No. FD I TFC 85 dt. 19-11-1986 (w.e.f. 25-2-1985).

183

1
[Note.- The provisions of this Article are also applicable
to the refund cheques issued by the Courts.
REFUND BY MONEY RODER
145. Refunds of sale amounts deposited by auction purchasers,
in respect of revenue sales for arrears of land revenue, may be
made, when such sales are subsequently cancelled, by Postal Money
Order, if the party claiming the refund furnishes his acquittance
(stamped whenever necessary, on the sanctioned refund bill noting
therein “Contents Received. Please remit the amount by money
order”.
146. The Treasury Officer will thereafter draw the amount from
the Treasury and remit it by Money Order at the cost of the party
and he will cause the postal receipts to be pasted securely to the
refund voucher.
Note 1.- When a Money Order is issued, the purpose of
the remittance should be briefly stated by the Treasury in the
acknowledgement portion of the money order form in
continuation of the printed entry “Received the sum specified
on the reverse on,” sufficient space being left below the
manuscript entry thus made, for the signature or thumb
impression of the payee.
Note 2.- On receipt of the Money Order
acknowledgement duly signed by the payee, it should be attached
to the refund voucher, in which the full amount of the refund and the
deduction made therefrom on account of the Money Order
commission should be clearly shown; the voucher will then be
disposed of in the usual way.

1. Inserted by No. FD I TFC 85 dt. 19-11-1986 (w.e.f. 25-2-1985).

184

Note 3.- Such bills should be cashed and Money Order

under these rules issued only in the first half of the month so that in
the case of the treasury accounts a complete voucher may be ready
to accompany them. Payees’ acknowledgements received after the
vouchers are despatched by the Treasury Should be sent to the
Audit Office, giving reference to the number, date, and of the voucher
to which it relates.
Note 4.- To enable the Treasury to watch the receipt of
payees’ acknowledgements, all payments by Money Orders should
be recorded in a register in the following form:-

Sl. Date Vou- Postal Name Amount Date Date Re-

No. cher Receipt of of of of marks
No. No. Payee Money receipt affix-
Order of ing
ackno- to the
wledg- Vr. for
ement trans-
miss-
ion to
Audit
Office
185

REIMBURSEMENT OF THE CHARGES UNDER THE

kARNATAKA GOVERNMENT SERVANTS (MEDICAL
ATTENDANCE) RULES, 1957.
146-A. (i) Charges for treatment and ward charges should be paid
by the Government servant in the first Instance and claims for the
refund submitted to the Controlling Officer in the appended form*.
(ii) Final claims for reimbursement of Medical expenses of all
the Government servants in respect of a particular spell of illness
should ordinarily be preferred within 3 months from the date of
completion of treatment as shown in the last Essentiality Certificate
issued by the authorised medical attendant concerned. The Controlling
Officers are also empowered not to entertain a medical claim not
preferred by a Government servant within 3 months of the completion
of the treatment where they are not satisfied with the reasons putforth
by the Government servant for late submission of the Medical claim
or where the claim is prima facie incomplete.
The payment of arrear claim if preferred and entertained
by the Controlling Officer after three months shall be governed
by the provisions of Articles 18 and 20 of K.F.C. In cases
where a claim Is not ordinarily admissible and a special sanction
is accorded for reimbursement of expenses involved in relaxation
of rules, the sanction shall be deemed to be operative for a period
of one year from the date of its issue.
1
[Note.- In the case of prolonged illness requiring treatment
for a couple of years or more and where the authorised Medical
Attendant certifies in the Essentiality Certificate that the treatment is
continuing, the Government servant shall prefer the claims within 3
months from the date of incurring the expenditure.]

1. Inserted by No. FD 3 TFC 89 dt. 6-11-1989 (w.e.f. 6-11-1989).

186

(iii) Officers empowered to countersign the T.A. Bills of the

Government servants concerned are Controlling Officers for the
purpose of these rules also.
(iv) The expenditure on account of these charges should be
classified under the sub-head “Allowances, honoraria, etc cost
of medical treatment’ under the appropriate budget head to which
the pay of the Government servant concerned is debited:
(v) Application form for claiming Refund of Medical Expenses.

1. Name and designation of the Government servant (in

block letters)
2. Office in which employed.
3. Salary.
4. Place of duty.
5. Full residential address.
6. Name of the patient and his/her relationship to the
Government servant.
(Note.-In the case of children state age also).
7. Place at which the patient fell ill.
8. Nature of illness and its duration.
9. Details for the amount claimed.
10. Total amount claimed.
11. List of enclosures.
187

Declaration to be signed by the Government Servant

I hereby declare that the statements in this application are
true to the best of my knowledge and belief and that the person for
whom medical expenses were incurred is a member of my family as
defined under the Karnataka Government Servants Medical
Attendance Rules, 1957 and is wholly dependent upon me.
Signature of the Government servant.
Signature of the controlling officer/competent authority.
Note.- Separate form should be used for each patient.
(vi) The application form prescribed above is intended for
obtaining the sanction of the competent authority for the
reimbursement of the medical charges and not for drawing the
amounts from the Treasury. The competent authorities should
indicate their approval on the application itself for the amount
reimbursable under the rules as provided for in the Karnataka
Government Medical Attendance Rules. The claims relating to the
reimbursement of Medical expenses should be drawn in Form 18
or 24 according as the Government servant concerned is a Gazetted
or a non-Gazetted Government servant.
“Such claims of Gazetted Government servants may be
drawn without the prior authority, of the Accountant General. The
amount drawn in the bills must be supported by proper receipts and
vouchers in all cases”.
Note 1.- The following procedure may be adopted with
regard to the payment of ward charges:-
(i) Government servants of classes III and IV should produce
before the Medical Officer a certificate signed by the head of Office
188

furnishing all particulars about their appointment, pay, etc., which

are necessary for allocating wards suitable to their status as well as
for purposes of medical charges, in such cases the ward charges
need not be collected in advance.
(ii) In case a Government servant of Class III or Class IV is
not in a position to produce the certificate from the Head of Office
at the time of admission, he or a member of his family may be
admitted to the ward he is entitled to on his giving a written statement
signed by him indicating the necessary particulars regarding his pay,
post and office or department. He should be required to produce
the necessary certificate from the Head of Office within 3 days of
admission, failing which the ward charges, etc., shall be collected
from him, subject to reimbursement later”.
(iii) In the case of Government servants belonging to classes I
and II, it is enough if they produce before the Medical Officer
a declaration signed by themselves furnishing the required
particulars.
Note 2.- The cost of Ayurvedic and Unani medicines will
also be refundable under Rule 6(2) of the Medical Attendance
Rules.
Note 3.- Deleted.
FINANCIAL ASSISTANCE TO GOVERNMENT
SERVANTS INVOLVED IN LEGAL PROCEEDINGS
146-B. The following rules regulate the grant of financial assistance
to Government servants involved in legal proceedings:
(1) Legal Proceedings in which Government servants are likely
to be involved may be classified as follows:
189

(a) Proceedings, Civil or Criminal, by Government in respect

of matters connected with official duties or the position of a
Government servant;
(b) Proceedings by a Government servant against a private
party or vice versa in respect of matters not connected with his
official duties or position:
(c) Proceedings by a private party against a Government
servant in respect of matters connected with his official duties
or position;
(d) Proceedings by Government servant to vindicate his official
conduct when called upon the Government to do so; and
(e) Proceedings by a Government servant to vindicate his
conduct connected with his official duties or position, with
previous sanction of Government, though not required by
Government to do so.
2. (a) In cases falling under Rule (1) (a) supra, no financial
assistance will be given for the defence of a
Government servant in the proceedings. However, in the event of
the proceedings concluding in favour of the Government servant, the
question of reimbursement of the whole or a reasonable portion of
the costs incurred by the Government servant for his defence will be
considered, provided Government are satisfied, from the facts and
circumstances of the case, that the Government servant was subjected
to the strain of the proceedings without proper justification;
(b) In cases falling under Rule (1) (b) above, no financial
assistance is admissible:
190

(c) (i) In cases falling under rule (1) (c) above, if the
Government, on consideration of the facts and circum- stances,
decide that it will be in public interest that the Government servant
should be defended by the Government, and the Government servant
agrees to such a course, arrangements will be made for the conduct
of the proceedings as if they had been instituted against the
Government themselves.
This is subject to the Government servant agreeing in writing
in the annexed Form to render such assistance to Government as
may be required for his defence on the clear understanding that no
responsibility shall attach to Government in the event of the
proceedings resulting in a decision adverse to him.
(ii) If, in such cases, the Government servant proposes to
conduct his defence himself the question of reimbursement of
reasonable costs incurred by him therefor may be considered on the
conclusion of the proceedings in his favour, the amount thereof
depending on the extent to which the Court has vindicated the act
of the Government servant. The conclusion of the proceedings in
favour of the Government servant will not by itself justify
reimbursement.
(d) In cases falling under rule (1) (d) also reimbursement will
be governed by the principles laid down at clause (c) (ii) supra;
(e) In cases coming under rule (1) (e). no part of the expenses
incurred by the Government servant will be reimbursed in any
circumstances;
(f) The power of granting assistance under these rules is
reserved with Government.
191

ANNEXURE
(Here enter the description of the proceedings)
The Government of Karnataka having been pleased to
undertake my defence in the above proceedings, I hereby agree
to render such assistance to Government as may be required for
my defence and further agree that I shall not hold Government in
any way responsible if the proceedings end in a decision adverse to
me.
Place:
Date: Signature of the Government Servant.
DISCOUNT ON STAMPS
147. The commission allowed on the gross value of the stamps
indented is adjusted by book transfer on the acknowledgment
furnished by the vendor. The Treasury Officers are responsible for
seeing that commission is properly calculated. The District Treasury
Officers should furnish the following certificate along with the
connected schedule accompanying the Treasury accounts under
commission vouchers.
Certified that the commission has been actually allowed to
the parties to whom it was due according to the sanctioned rates
and that the total amount of the commission allowed and included
herein for the month agrees with that shown in the receipt schedule
under XIV Stamps for the month.
148. Refund of the amount of spoilt stamps and refund of the
amount of Judicial Stamps allowed by the Courts:
In respect of refunds on account of spoilt stamps, the
spoilt stamps or stamp papers will be retained in the departmental
office itself duly cancelled and a certificate will be recorded on
192

the voucher that the stamps or stamp papers have been cancelled
and notes of payment recorded therein.
In the case of refunds of judicial stamps allowed on court
certificates, payments should be made on the court certificate itself,
the receipt of the party being taken on such certificate, which should
then be treated as a voucher.
Note.- The authority competent to cancel the spoilt stamps
and stamp papers is also the authority competent to destroy the
cancelled stamps and stamp papers.
1
[Exception.- A statement of the amounts of refund under
sub-rule 3 shall be sent by the Court to the Deputy Commissioner
and the Officer-in-charge of Treasury at the end of every month in
Form-F of Karnataka Court Fees and Suits Valuation Rules.]
PAYMENT TO VILLAGE OFFICERS (OLD MYSORE
STATE)
149. The remuneration to Shanbhogs and Patels shall be paid
annually as a rule either during the collection season or soon after
the close of the financial year for which the Potgi is due. Payments
should, as far as possible, be made in cash at the headquarters of
Taluks by the Tahsildar himself, and not through the agency of
revenue inspectors. But Shanbhogs and patels may be allowed to
pay themselves their potgi allowances out of the kandayam due
by them out of the collections made by them, the amount so withheld
being shown in Taluk accounts as received under “Land Revenue”
and disbursed as “Potgi”. A voucher in proper form should be
obtained before such an adjustment is made. These vouchers are
audited in the office of the Accountant General.

1. Substituted by No. FD I TFC 85 dt. 19. II. 1986 (w.e.f. 25.2.1985)

193

(1) A permanent order is issued by the Deputy Commissioner

to each Taluk in the prescribed form, showing the settled allowances
payable to each village officer. It should be kept in a book form, a
page being allotted to each village and each payment entered therein
with date, under the initials of the Tahsildar or Sheristedar. A copy
of the order book may be given to each Shanbhog or Patel
concerned and if desired, the payment should be noted in his copy
also. Payments should be made as parties appear, on their receipts,
and the payments made should be entered in a detailed bill (Form
32) and submitted to the District Treasury, one for the payments
from the 1st to the 10th and another for those from the 11th to the
end of the month.
At the end of each year, an abstract should be made in the
Taluk Potgi Registers showing the total settled allowances payable
for the year, the payments made during the year and the balance of
outstanding payments. A detailed list of outstanding payments by
individuals should also be appended and the Tahsildar should certify
that the analysis is correct and that he has satisfied himself that the
claims have not been paid. A remark should also be made against
each case as to why payment was not made during the year.
Payments against outstanding claims made after the year
should be noted against the respective individuals with dates of
payments, and the balance after each payment should be carried
forward. Before payments are made, the Tahsildar should satisfy
himself that the conditions for the non-fulfilment of which the Potgi
was with-held in the first instance have since been fulfilled. A certificate
should also be recorded on the bills as to why payment had been
deferred originally and whether the conditions have since been
satisfied.
194

(2) The Treasury will make no payment unless it is

acknowledged in the bill itself (Form 32) by the person or persons
actually entitled to it with receipt stamp where necessary.
(3) Potgi allowance should not be drawn and kept in deposit
under any circumstances.
(4) The Divisional Commissioner has been empowered to
sanction disbursement of Potgi according to decennial revision.
The revised Potgi will be paid from the date of introduction
of the revised settlement in the case of an increase and from the
date of the order in the case of a decrease.
(5) For the payment of arrears claims requiring the sanction of
Government or the Divisional Commissioner, the following procedure
will be followed:
The Tahsildar will submit for sanction a statement in
triplicate, showing the particulars of claims, the names of
claimants, the amount and the period of claim, separately for Patels
and Shanbhogs (one for each year). The sanctioning authority will
keep one copy, return one to the Tahsildar and the other to the
Audit Office noting thereon the sanction accorded. After receipt of
sanction payments will be made direct by the Tahsildar in the manner
prescribed in Rules (1) and (2) the number and date of sanction
being invariably quoted on each arrears bill and the number and
date of the bill being entered against the particular item in the order
of sanction. No arrears bill under this procedure need be sent to the
Audit Officer for pre-audit. Payments made by the Tahsildar from
time to time will be admitted against the sanction communicated to
the Audit Office direct by the sanctioning authority.
Sanctions not operated on in one year will lapse and will
require renewal.
195

HYDERABAD AREA
150. Vouchers for payments made are sent to the Audit Office
alongwith the Treasury accounts.
OTHER AREAS
151. In the old Bombay and Madras areas, payments made by
the Revenue Department are audited by the Assistant Commissioner,
and vouchers are not sent to the Audit Office and only certificates
of Audit are furnished to the Audit Office.
MALNAD INAM PAYMENTS
152. Malnad Inam Payments are money grants sanctioned by
Government in lieu of resumed Inam Lands. The rules regulating the
grant of these cash payments are given in Karnataka Revenue Manual.
These grants are drawn by the Tahsildar of each taluk in the form
prescribed for drawing potgi and disbursed to the parties.
Note.- With a view to prevent double payments of arrears
claims of Malnad Cash grants in respect of Muzrai institutions the
following procedure will be followed:
(1) In the concerned acquittance rolls maintained in Taluk offices
a detailed memo of undisbursed items out of the annual allotment
should be worked out and arrears claims as they come up should
be verified with reference to the relative memos and duly certified.
(2) As a sort of counter-check to the entries in the registers
of the Taluk Office a copy of the lists showing undisbursed
items should be furnished by Taluks annually to the Deputy
Commissioner and the Commissioner for Charitable
Endowments. Arrear claims as they are sent up for sanction
may be disposed of with reference to the lists noting therein the
dates of sanction.
196

(3) In the Taluk Offices, the dates of subsequent payments

should be noted in the lists against the concerned Institutions.

(4) A register embodying the items contained in the lists has

to be maintained in the office of the Commissioner for Charitable
Endowments for checking the statement subordinate officers and
verifying the correctness of old claims.

COMPENSATION FOR LAND

153. (a) The procedure to be observed for the payment of

compensation for lands taken up for public purposes under Land
Acquisition Act, 1894 is regulated by the rules printed in Appendix
VII.

(b) In cases of acquisition of lands for public purposes,

departmental officers should see that compensation is settled before
possession is taken and Land Acquisition Officers should see that
payment or compensation is not delayed and possession is handed
over in due course to the departments concerned in a formal manner.
In cases where, in contravention of this direction, possession is
taken and owing to any inordinate delay in the payment or tender
of such compensation, it becomes necessary to pay interest under
the Acquisition Act, the Government servant or Government servant
responsible will render themselves personally liable to make good
such amount.

154. Government may authorise any Land Acquisition Officer

to make all or any of his payments by cheques on the Treasury,
provided no inconvenience is caused to the payee in consequence
of the property being situated at a distance from the Treasury.
197

155. (i) The cost of any special establishment entertained under

orders of Government by a civil officer, is when the Government
servant employed as a Public Works Disburser, chargeable to the
works concerned; otherwise, it is brought to account in the Civil
Department. Contingent charges follow the same rule.
(ii) When land is acquired on behalf of Companies, Local
Bodies, Industrial Concerns, Electricity Board, Co-operative
Institutions, Central Government Departments, etc., incidental
expenses to cover Establishment and Audit charges should be
recovered on the following scale:

Establishment Audit
Charges Charges

(a) Where the cost of 10% on the cost of 1% on the cost of

acquisition does not acquisition

(b) Where the cost of (i) 10% on the first

acquisition exceeds
Rs. 50,000 but does
not exceeds Rs. 1,00,000
Rs. 50,0000

(ii) 5% on the excess

} Rs. 500

(c) Where the cost of (i) 10% on the

acquisition exceeds
Rs. 1,00,000
first Rs. 50,000
(ii) 5% on the
next Rs. 50,000
(iii) 3% on the
excess
} Rs. 500

This levy will be made irrespective of the fact whether

any special establishment is entertained or not.
198

Note.- Departmental charges at the rate of 1/8% of the

cost of land shall be levied where the State Public Works Department
render advice on acquisition of land to autonomous bodies,
Commercial Departments, Central Government or other State
Governments and the expenditure on such acquisition does not pass
through their books.
Establishment and audit charges will not however be leviable
in the following cases:
(a) Acquisition of lands on behalf of Village Panchayats and
Town Panchayats inclusive of smaller Municipalities with population
not exceeding 10.000;
(b) Acquisition of lands on behalf of Village Co-operative
Societies;
(c) Cases where a full time Land Acquisition Officer is appointed
on behalf of a Local Body, and the Local Body meets the full cost
of the establishment.
Government reserve the right by a general or special order
to waive the recovery of these charges. In such cases the amounts
forgone will be treated as grant-in-aid under the appropriate head.
155-A. In a statutory arbitration, when an award is decreed against
the Government for payment of rent compensation, etc., thus imposing
an obligation to make a recurring payment, every such recurring
payment would be an expenditure ‘charged’ on the Consolidated
Fund of the State.
COMPENSATION TOWARDS ABOLITION OF
INAMS
156. This is regulated accordance with the Karnataka (Personal
and Miscellaneous) lnams Abolition Act, 1954 and the rules issued
199

thereunder. The compensation payable will be payable in one or

more of the following modes namely:
(i) in cash, in full or in annual instalments not exceeding ten;
(ii) in bonds either negotiable or not negotiable carrying interest
at the prescribed rate and of guaranteed face value maturing with a
specified period not exceeding ten year.
SCHOLARSHIPS AND STIPENDS
157. The payment of Government scholarships and stipends in
Government and non-Government institutions is regulated by the
general or special orders on the subject, which the Government
issue, from time to time. The rules relating to the Education
Department are contained in the Karnataka Educational Manual.
158. Bills for Educational scholarships, stipends, etc. in respect
of Aided Institutions of the Education Department shall be presented
in form No. K.F.C.32-A by the Heads of Institutions or by any
other competent officer who draws the establishment bills of the
Institutions, to the Inspecting Officers of the Department who will
countersign and return the same for being encashed. A copy of the
authority or order of sanction must be enclosed to each bill. If any
conditions are attached to the payment of scholarships or stipends,
the bill must bear a certificate of the countersigning officer that he
is satisfied that the prescribed conditions have been fulfilled.
In the case of Government Institutions, no counter-signature
is necessary and Heads of institutions or other competent officers,
who are authorised to draw establishment bills, may draw scholarship
and stipend bills enclosing a copy, of the sanction either of the Ad
hoc Scholarship Committee or the Director of Public Instruction, or
in the case of stipends of trainees in Training Colleges, the Principal
of the concerned college.
200

Note.- The Accountant General will not investigate any arrears

claim in respect of scholarships or stipends outstanding for
over a year after it has become due, except under the orders of
Government. Government may delegate this power to Heads of
Departments and other officers, subject to such conditions as they
deem fit;
DISCRETIONARY GRANTS
159. Discretionary grants, wherever placed at the disposal of
Governmental officers, should be spent for the objects for which
such grants can be made, subject to the conditions and principles
laid down by Government. Generally no recurring expenditure may
be incurred under this head and it is not intended that any
subscriptions of a purely private nature should be debited to it.
159-A. Discretionary grant by the Governor:
(1) These are petty grants and charitable donations given by
the Governor, at his discretion to institutions of a public or quasi-
public character and to individuals deserving assistance from public
funds. The grant is subject to audit by the Accountant General,
Karnataka, Bangalore.
(2) The Secretary to the Governor is authorised to operate on
this grant under the orders of the Governor.
(3) The amount required for payment out of this grant shall be
drawn on Form No. K.F.C. 3 (Payees’ Receipt) furnishing full
details of the amount. The payees’ acknowledgements shall be sent
to the Accountant General subsequently. The provisions of Article
141 of Karnataka Financial Code for the drawl of bills relating to
miscellaneous charges should be followed. In exceptional cases,
where a voucher cannot be obtained, the Secretary to the Governor
201

should supply the Accountant General with his own certificate that
the amount was actually disbursed to the payee mentioned in the
certificate. The Accountant General, Karnataka, Bangalore, may
admit the claim on the strength of such certificates furnished by
Secretary to the Governor.
160. The following Rules govern the administration of
discretionary grants by the Divisional Commissioners and the Deputy
Commissioners of Districts:-
(1) The Discretionary grants shall be made for general purposes
of public nature calculated to be of benefit to the districts under their
control:
(2) The aggregate grants made in a year shall be limited to
Rs.2,000 in the case of Divisional Commissioners and Rs. 1,000 in
the case of Deputy Commissioners;
(3) The grant, whether made by the Deputy Commissioner or
the Divisional Commissioner or by both, shall not exceed Rs.200 in
any individual case;
(4) No recurring grant shall be made;
(5) There should be Budget provision;
(6) The grants shall be confined to the objects specified below
and will be subject to such further restrictions as may be prescribed:-
(i) Rewards to individuals for conspicuous aid to the Police
or other officers of Government:
(ii) Rewards either in money or in the form of Jewellery or
dresses-of-honour, for deeds of special merit involving Personal risk
of self-sacrifice, such as rescuing life, rendering disinterested service
202

on occasions of fire, floods or other serious calamities, removing

friction between classes of people, educating and uplifting the poorest
classes;
(iii) Grants-in-Aid for carrying out schemes:-
(a) Contributions to local exhibitions and Philanthropic
Societies:
(b) Destruction of Water Hyacinth, Pickle pea and other
noxious growth;
(c) Provision of ballast’s or boats for crossing streams and
canals or any other arrangements for safely crossing streams
which are liable to sudden floods.
(iv) Grants in exceptional cases of individual distress;
(v) Grants for any other object, which in the opinion of
the Divisional Commissioner/Deputy Commissioner is calculated
to promote the public well-being and contentment.
GRANT - IN - AID
Note.-A grant-in-aid can be given only to a person or
body which is independent of the State Government. Accordingly,
one Department of Government cannot make a grant-in-aid to another
Government Department.
161. (a) The sanction necessary for payment of grants-in-aid or
contribution to educational and other institutions, local bodies and
co-operative societies is regulated by the orders contained in the
Book of Financial Powers and orders issued by the Government
from time to time. The rules governing the payment of grants-in-aid
to aided educational institutions are found in Grants-in-aid Code of
the Education Department, vide Volume III. The rules governing the
203

payment of grants-in-aid to medical institutions-Indian Medicines as

well as Allopathic, are found in Appendix VII-A of this Code. The
Bills for grants-in-aid sanctioned to these institutions, should be
countersigned by the authorities mentioned in these rules before
encashment at the treasuries.
(b) The following instructions are issued for the guidance of
sanctioning authorities in the matter of according sanctions for grant-
in-aid.
(1) Unless in any case Government direct otherwise, every
order sanctioning a grant should specify clearly the object for which
it is given and the conditions, if any, attached to the grant. In the
case of non-recurring grants for specified objects, the order should
also specify the time limit within which the grant or each instalment
of it is to be spent.
Note1.- As the sanctioning authorities are normally
expected to sanction the amounts expected to be utilised within
that year the time limit within which the grant or each instalment
of it is to be spent would be one year from the date of sanction
of the grant. But, in the case of grant-in-aid sanctioned for building
purposes, the period would be two years from the date of sanction
of the grant and in special circumstances Government may extend
the period.
Note 2.- Before sanctioning Grant-in-aid to private
institutions, it should be examined that the concerned institutions
have the experience and managerial ability to carry out the
purposes assigned to them and a machinery is devised to keep an
effective and constant check to see that the money is utilised fruitfully
and applied to the purposes intended.
204

(2) Only so much of the grant should be paid during any

financial year as is likely to be expended during the year. In the
case of grants for specified works or services such as buildings,
water supply schemes and the like, the sanctioning authority should
use its discretion in authorising payments according to the needs of
the work. The authority signing or countersigning a bill for grant-in-
aid should see that money is not drawn in advance of
requirements. There should be no occasion for a rush for payment
of these grants in the month of March.
Note.- Grants should be made available as far as possible
on the basis of specific schemes drawn up in sufficient detail and
duly approved by Government.-
1
[(3) (i) Before a grant is paid to any Public body or Institution
the sanctioning authority shall except in cases of trading or commercial
organisations, invariably obtain the following set of audited statement
of account of the body or institution concerned along with the
Auditor’s Report thereon in order to see that grant-in-aid is justified
by the Financial position of the grantee and to ensure that previous
grant: if any, was spent for the purpose for which it was intended:-
(a) The receipt and payment accounts of the body as a whole
for the financial year;
(b) The Income and Expenditure accounts of the body as a
whole for the financial year: and
(c) The Balance Sheet as at the end of the financial year for
the body as a whole.
Trading or Commercial Organisations should, however, be
required to furnish the audited statement of profit and loss accounts

1. Substituted by No.FD 14 TFC 81 dt. 28.4.1982 (w.e.f .29.6.1982)

205

with Auditor’s Report thereon instead of the Income and Expenditure

accounts statement indicated at item (b) above.
Note.- Provision of this rule will not be applicable to
autonomous organisations and other institutions which are governed
by separate set of grant-in-aid rules and for whom separate
sets of forms of accounts have been accepted by the Government
for adoption and they can continue to render accounts to the
Government in the forms so approved.
(ii) It is not essential for this purpose, however that the accounts
should be audited in every case by the Accountant General,
Karnataka and it will be sufficient therefore if the accounts are
certified as correct by a Registered accountant or other recognised
body of auditors. In the case of small institutions, which cannot
afford to obtain the services of a registered accountant or other
registered body of auditors, the sanctioning authority may exercise
its discretion in exempting any such institution from the submission
of account audited in this fashion.
Note.- No Department of Government should release grants
to private bodies without satisfying themselves about the stability
and capacity of the private bodies to undertake the task allotted to
them.]
(4) The authority sanctioning a grant while communicating the
sanction to the Account General should state whether the audited
statement of accounts has been received when required, or whether
the grantee has been exempted from submitting the statement.
Note 1.- This order applies both to non-official institutions
and to semi-official ones, such as public clubs, etc.
Note 2.- The accounts of expenditure incurred out of
grant-in-aid paid by Government or Local Bodies and other
206

institutions coming under the audit control of the State Accounts

Department will be subject to audit by the department.
(5) In cases in which conditions are attached to the utilisation
of a grant in the form of specification of particular objects of
expenditure or the time within which the money must be spent, or
otherwise, the departmental officer on whose signature or
countersignature the grant-in-aid bill was drawn should be primarily
responsible for certifying to the Accountant General, where necessary,
the fulfilment of the conditions attaching to the grant, unless there is
any special rule or order to the contrary. “The certificate should be
furnished in the form prescribed below this Article not later than 18
months from the date of sanction of the grant to the Accountant
General in respect of Grant-in-aid sanctioned where conditions are
attached for utilisation by the sanctioning authority”. Before recording
the certificate, the certifying officer should take steps to satisfy himself
that the conditions on which the grant was sanctioned have been or
are being fulfilled. For this purpose he may require the submission
to him at suitable intervals of such reports, statements, etc., in respect
of the expenditure from the grant as may be considered necessary.
Where the accounts of expenditure from the grant are inspected or
audited locally, the inspection or audit report as the case may be,
will either include a certificate that the conditions attaching to the
grant have been or are being fulfilled or will give details of the
breaches of these conditions.
207

FORM OF UTILISATION CERTIFICATE

Sl. Letter No Amount Certified that of Rs..............
No. and date of grant-in-aid sanctioned
during the year.......... in favour
of ................ under this
Ministry/ department letter
No............. given in the margin
and Rs.............. on account of
unspent balance of the previous
year, a sum of Rs............. has
been utilised for the purpose
of ................ for which it was
sanctioned and that the balance
of Rs.............remaining
unutilised at the end of the year
has been surrendered to
Government (vide No. ...........
dated ............ will be adjusted
towards the grants-in-aid
payable during the next
year ..........................
2. Certified that I have satisfied myself that the conditions on
which the grants-in-aid was sanctioned have been duly fulfilled/are
being fulfilled and that I have exercised the following checks to see
that the money was actually utilised for the purpose for which it was
sanctioned.
208

Kinds of Check exercised.

1.
2.
3.
4.
5.
Signature,
Designation,
Date.
Note 1.- The heads of Departments should observe the
following instructions in connection with the sanction of grants to
private bodies and institutions.
(i) The audited statements of accounts by the grantee institution
etc., should invariably be sent not later than 15 months from the
date of sanction of the grant. The sanctioning authority should make
it incumbent upon the grantee institutions to submit the statement
within the period by incorporating a clause to this effect in the
sanction order.
(ii) The utilisation certificate should be submitted to the
Accountant General by the sanctioning authority, not later than
18 months from the date of sanction of the grant.
1
[(iii) In all cases where the total grant / loan sanctioned to
the institutions exceed Rs.25.00 lakhs in a financial year, copy of the
Audited accounts of the year should also be submitted to the

1. Inserted by No. FD 6 TFC 90 dt. 19-12-1991 (w.e.f. 5- I- 1990)

209

Accountant General within 15 months of sanction. Further, copies

of Audited accounts for Subsequent two years should also be sent
to the Accountant General so as to fulfil the provisions of Section
14(3) of the C & AG (D.P.C.) Act.]
Note 2.- In respect of grants-in-aid sanctioned for specific
approved schemes [Vide Note below Clause (2) above] the sanction
order should prescribe the submission, by the grantee, of quarterly
reports indicating the expenditure on each of the objects as detailed
in the scheme. These reports should be scrutinised by the
departmental officer concerned to check whether there have been
any variations or unauthorised diversion of funds.
Note 3.- (a) There should be a condition in the sanction
order that the grantee institution should maintain a record of all
assets acquired wholly or substantially out of the Government grant
and subject it to the audit of the State Accounts or other Government
Department to be specified in the sanction order, unlesss the institution
is specially exempted by the sanctioning authority, under clause (3)
of this Article, from the submission of audited accounts for the
expenditure incurred out of the grant.
(b) There should be a further condition that the assets referred
to in (a) above should not, without the prior sanction of Government,
be disposed of, encumbered or utilised for purposes other than
those for which the grants are sanctioned.
Explanation.- The term ‘assets’ used in clauses (a) and
(b) of the Note, refer to (1) immovable properties and (ii) moveable
properties of a capital nature exceeding Rs.500 in value in each
case.
210

Library books and articles of furniture, do not fall within

the definition of the term ‘assets’ but an inventory of such
articles should nevertheless be maintained by the authorities and
produced at the time of audit
(c) The following procedure should be adopted in regard to
(a) and (b) above:-
(i) An undertaking should be obtained by the sanctioning
authorities from the grantee institutions that they (the institutions)
agree to be governed by the conditions of the grants which result
in the creation or acquisition of permanent or semi-permanent assets.
(ii) The grantee institutions should maintain a register in Form
32-B of the permanent and semi-permanent assets acquired wholly
or mainly out of Government grants. The register should be maintained
by the grantee institutions separately in respect of each sanctioning
authority and a copy thereof furnished to the respective sanctioning
authorities annually.
(iii) The sanctioning authorities should also maintain block
accounts in Form 32-C or permanent and semi-permanent assets
acquired wholly or mainly out of Government grants. This record
should be of a permanent nature and should be posted from the
annual returns furnished by the grantee institutions under (ii)
above,
(iv) The Register of Assets and the Block Accounts
maintained by the grantee institutions and the sanctioning authorities
respectively should be available for open to scrutiny by Audit.
Note 4.- The Head of every Department shall, in respect
of each class of grant paid during the year, submit to
211

Government annually, by the 15th May of the following year a

performance or achievement report. The Government will review
the utilisation of the grant where feasible and desirable with the
assistance of some leading non-officials interested in the object or
scheme and issue where necessary, suitable orders so as to regulate
the payments of grants-in-aid in future. Such orders will issue in the
Finance Department.
The annual reports of autonomous/statutory bodies are
ordinarily laid on the table of the Legislature. In such cases, the
Administrative Departments of Secretariat need not incorporate
performance-cum-achievement reports in the Annual Administrative
Reports. In all other cases if the Grants-in-aid exceed the monetary
limits prescribed in Article 161-A of the Karnataka Financial Code,
the Administrative Departments should include in their Administrative
Reports a review of the utilisation of the Grants-in-Aid individually
specifying in detail the achievements vis-a-vis the amounts spent, the
purpose and destination of the grants. In cases where the Grants-
in-aid are for amounts less than the monetary limits prescribed in
Article 161-A of the Karnataka Financial Code, 1958, the
administrative Department should include in the administrative reports
their own assessment of the achievements or performances in a
general way for facility of a complete and comprehensive study of
the Grants-in- Aid by the Department.
Where the accounts of the grantee Institutions are audited
by the Accountant General, Karnataka, Bangalore copies of the
performance-cum-achievement reports, furnished by the grantee
institutions to the administrative departments/ sanctioning authority
should be made available to audit. In other cases, copies of such
reports, received by the administrative department or the sanctioning
authority, should be made available to audit when local audit of such
grants-in-aid in the office of the administrative department or
212

sanctioning authority is conducted or when it is called for by the

Accountant General.
(6) Unless it is otherwise ordered by Government, every grant
made for a specific object is subject to the implied conditions-
(i) Deleted.
(ii) That any portion of the amount which is not ultimately
required for expenditure upon that object should be duly surrendered
to Government.
(iii) That portion of the grant-in-aid amount to be paid to the
Public Libraries in the form of reading materials may be drawn by
the countersigning authorities on the detailed contingent bills and
endorsed in favour of suppliers.
Note 1.- The authority sanctioning a recurring grant-in-aid
to the same institution for the same purpose shall furnish a certificate
in the sanction order to the effect that the unspent balance of the
previous grant, if any, has either been surrendered to Government
in cash or has been adjusted against the subsequent grant to which
the sanction order refers.
Note 2.- The voluntary organisations receiving grant-in-
aid from Government for the implementation of various programmes
under the ‘Public Co-operation Schemes’ in respect or continuing
Schemes, may retain with them at the end of the financial year, an
amount of unspent balance equivalent to the estimated expenditure
in the first two months of the following financial year subject to the
condition that the above procedure should be followed only in
exceptional hardship and this procedure should not be resorted to
frequently and the unspent balance should not be carried forward as
a matter of course. Amounts held in excess of the requirements for
213

the first two months of the following year, should, without fail, be
recredited to Government.
(7) Grants-in-aid in the nature of reimbursement of expenditure
already incurred by the grantee may be sanctioned only to meet
such expenditure already incurred not earlier than a year prior to the
date of issue of the sanction.
(8) Before the grant is released, the grantee should be required
to execute a bond with two sureties to the Governor of Karnataka,
that he will abide by the conditions of the grant by the target dates,
if any, specified therein and in the event of his failing to comply with
the condition or committing breach of the bond, the grantee and the
sureties individually, and jointly will be liable to refund to the Governor
of Karnataka the entire amount of the grant with interest thereon or
the sum specified under the bond.
Note 1.- The Grantee institutions are exempted from
payment of stamp duty on such bonds. The stamp duty on the
bond shall be borne by Government.
Note 2.- To enable the audit to verify that this condition
has been fulfilled a certificate to the effect that the grantee has
executed the requisite bond or has been exempted from doing
so, should be furnished along with the grant-in-aid bill, duly
countersigned by the officer on whose signature or countersignature
the grant-in-aid bill is drawn.
Note 3.- While obtaining the prescribed bond, where it is
necessary, the requirement of furnishing the sureties in addition,
need not be insisted on if the grantee institution or Organisation is
a Society registered under the Karnataka Societies Registration
214

Act, 1960 or is a co-operative society or is an institution of standing

in whose case such Sureties are not considered necessary by the
sanctioning authorities concerned.
Note 4.- In the event of the failure of the grantee to
comply with the conditions or committing breach of the bond, he
should be charged interest at 6 per cent per annum on the amount
of grant-in-aid ordered to be refunded. A recourse to the
enforcement of recovery of interest should be had in consultation
with the Finance Department. A brief mention of the breach and the
decision of the sanctioning authority about the charging of Interest
as well as reference to the orders issued should also be made in the
utilisation certificate to be furnished under Note-I of clause 5 of the
above Article.
Note 5.- These instructions will not apply to the grant-in-
aid paid to quasi-Government or Government-aided organisations
and Local Bodies. For the purposes of the grant-in-aid the following
types of institutions or organisations are treated as quasi-Government
and Government aided organisations.
(i) Quasi-Government Institutions.- Institutions or or-
ganisations set up by Government as autonomous bodies either
under a statute or as a society registered under the Karnataka
Societies Registration Act, 1960 or otherwise.
(ii) Government aided bodies .- Institutions or organisations
which receive financial assistance from Government on a regular
basis (either wholly or on a fixed per centage basis) and/or
(a) whose annual budget is approved by the Government.
Or
215

(b) Government is adequately represented and associated with

the Boards of Management or Committee of Management’s of the
Institutions.
(9) The following principles should be kept in view by the
sanctioning authorities while sanctioning grants to Institutions,
etc., for building purposes:
(a) It should be ensured that the building grant is sanctioned
for the minimum area required for the purpose of the grantee
institution.
(b) The order sanctioning the grant should embody such other
conditions as may be considered necessary for ensuring to
Government the right to claim a share of the rent where the buildings
are used for purposes other than those for which the grants were
made:
(c) In order to ensure that the above conditions can in the
event of their breach, be enforced through a Court of Law an
agreement bond as stated in clause (8) above will also be got
executed by the grantee Institutions.
1
[161-A (1) Subject to the provisions of any law for the time being
in force applicable to an autonomous body or authority, the audit
and report on the audit of all receipts and expenditure of a body or
authority substantially financed by grants or loans from the
consolidated fund is entrusted to the Comptroller and Auditor General
of India under Section 14 of the Comptroller and Auditor General’s
(Duties, Powers and Conditions of Service) Act 1971. For this
purpose such body or authority shall be deemed to be substantially
financed by grants or loans, if -

1. Inserted by No.FD 10 TFC 84 dt. l 2-10-1987

216

(a) the total assistance (Grant/Loan/Subsidy/ Rebate) paid from

the consolidated fund of the State Government in a financial year is
not less than Rs. twenty five lakhs and is not less than seventy five
per cent of the total expenditure of that Body/Authority.

(b) notwithstanding anything contained in Clause (a), if the

grants, loans, subsidies and rebates to a body or authority from the
consolidated fund in a financial year are not less than Rs. one crore
and previous approval of the Governor is obtained.

Note.- The test for determining whether a body / authority

falls under Section 14 of the Act may be applied with reference to
the normal accounting period of that body/authority.

(2) Where the receipts and expenditure of any body/ authority

are by virtue of the fulfilment of the conditions, specified in sub-
clause (1) above are audited by the Comptroller and Auditor General
of India in a financial year, he shall continue to audit the receipts and
expenditure of that body/authority for a further period of two years
notwithstanding that the conditions specified in sub-clause (1) are
not fulfilled during any of the two subsequent years.

(3) To facilitate the Accountant General to identify the

institutions for audit under sub-clause (1) and (2) and also for
conducting audit in time, all the Departments in the Secretariat shall
furnish to the Accountant General (Audit-1) an exhaustive Department
- wise list of sanctioning authorities who are empowered to sanction
Grants/Loans/ Subsidies/Rebate etc., to the bodies/institutions/
authorities during a particular financial year not later than the 1st
June of the succeeding financial year. The orders sanctioning Grants/
217

Loans/Subsidies should specify where-ever necessary that the

accounts of the autonomous bodies/authorities/institutions are subject
to audit scrutiny of Comptroller and Auditor General of India. All
the sanctioning authorities who are empowered to sanction Grants/
Loans/Subsidies/Rebate etc., should endorse a copy of their sanction
order as and when issued and also a statement of such sanction
orders issued during a particular year in the following proforma to
the Audit (the Accountant General (Audit- I), Bangalore) not later
than the 1st June of succeeding financial year.
PROFORMA
Sl. San Particulars Amount Pur- Con Parti-
No. ction of Grantee of Grant/ pose dition culars
order along with Loan/ if any of the
No. postal subsidry/ scheme
and address Rebate
date

1 2 3 4 5 6 7

(4) In addition the Grantee Institution/Authorities/ Bodies shall

furnish the following information to the Accountant General:-
(i) the audited financial statement of accounts consisting of
receipt and payment account; income and expenditure and balance
sheet for that financial year;
(ii) a statement containing unspent balances of grant/subsidy/
loan granted during the previous financial year; receipt from
Government of India and State Government (in case of several
State Governments, Government - wise details); the amount received
as grants/loans/subsidy during that financial year from Government
of India and State Government;
218

(iii) the expenditure incurred during the financial year (both

capital and revenue expenditure excluding payments towards deposits,
investments, income tax recovered, advance to staff, transfer of
cash between office and bank to be specified) (to be furnished
before 1st June of the succeeding financial year).
Note 1.- In the case of grants or loans not coming under
the purview of Section 14, the Comptroller and Auditor General of
India can still under Section 15 of the Act scrutinise the procedure
by which the sanctioning authority satisfied itself as to the fulfilment
of the conditions subject to which such grants or loans are given and
shall for this purpose have right to access to the book and accounts
of that authority or body.
Note 2.- In the other cases where the Administrative
Department desire that the accounts of a body or authorities should
be audited and certified by the Comptroller and Auditor General of
India, they may initiate proposals for the entrustment of Audit to
Comptroller and Auditor General of India under section 19 (3) and
20 of the Act irrespective of the fact whether Section 14 of the Act
has been attracted (or is likely to be attracted) or not in a particular
year. The accounts audited under section 19 (3) shall be submitted
to the Government are being placed before the Legislature.
(5) The orders sanctioning grants/loans/ subsidies /rebats should
specify, wherever necessary that the receipts and expenditure of the
assisted body/authority are subject to audit by the Comptroller and
Auditor General of India. The sanctions should also indicate the
responsibility of such bodies/authorities to comply with the conditions
in sub-clause (4) above.]
162. The following instructions should be strictly observed in
connection with the sanction and payment of grants-in-aid to public
bodies or institutions or statutory bodies.
219

(a) Once a Grant-in-aid has been sanctioned, it is the

responsibilities of the grantee to prepare and submit the bill in the
form annexed to the countersigning authority for signature and the
Treasury Officer for payment. In no case, therefore, should the
office of the sanctioning authority to this work on behalf of the
grantee. There is, however, no objection to the grantee being
guided in the preparation of the Bill, such guidance taking the form
of supply of blank form and indication of the particulars to be filled
in.
(b) Before a bill is accepted, it should be particularly seen that
the conditions, if any, attached to the grant have been accepted by
the grantee without any reservation,
(c) A Register of Grants containing the following columns should
be maintained:
(i) Serial No.;
(ii) Number and date of sanction letter:
(iii) Purpose of grant;
(iv) Conditions, if any attached to the grant;
(v) Amount sanctioned:
(vi) Date of receipt of the bill from the grantee and its amount;
(vii) Whether conditions attached to the grant have been
accepted by the grantee without reservation;
(viii) Dated initials of the countersigning authority;
(ix) Date by which audited statements of account etc., are
required to be furnished by the grantee;
220

(x) Date by which utilisation certificate is required to be

furnished by the sanctioning authority to the audit office;
(xi) Date by which audited statements of accounts are actually
received. The reasons for delays in receipt of such statements as
well as efforts made by the sanctioning authority/countersigning
authority to expedite submission of such statement should also be
indicated in the register;
(xii) Date of submission of utilisation certificate to the audit
office, in case there is delay in submission of utilisation
certificate to audit, the reasons therefor should also be indicated,
(xiii) Unspent balance, if any, (Indicate whether the unspent
balance has been Surrendered by the grantee institution);
(xiv) Whether the register has been reviewed by the superior
officer during his periodical visits to the office of sanctioning
authority. Any delay in receipt of audited statements of accounts
from the grantee institutions or submission of utilisation
certificate should be specifically brought to his notice with relevant
reasons for the delay. The Accountant General should also be
informed of the reasons for delay.
The register should be maintained by the sanctioning
authority if the bill is to be countersigned by the same authority.
If, however, the powers of countersignature of grants’ bill have
been vested with an authority other than sanctioning authority
under Article 208-A of the Karnataka Treasury Code, the register
should be maintained by the countersigning authority and not
the sanctioning authority.
Columns (i) to (v) of the Register should be filled in
simultaneously with the issue of the order sanctioning each
grant if the register is being maintained by the sanctioning authority.
221

In those cases in which the register is to be maintained by the

countersigning authority, these columns should be filled in by the
countersigning authority on receipt of his copy of sanction from the
sanctioning authority. These columns should be attested by a Gazetted
Officer, nominated for the purpose by the sanctioning or
countersigning authority, as the case may be. The serial number
should be recorded on the body of the sanction letter at the time the
item is entered in the Register, as under:
“Noted at Serial No.... ... in the Register of Grants. Such
a record will guard against the possibility of double payment. Columns
(vi) and (vii) should be filled in and attested by the Gazetted Officer
concerned as soon as the bill has been received from the grantee.
The bill should then be submitted to the countersigning authority
with the Register for countersigning the bill and for giving his dated
initials in columns (viii) of the Register. It should also be the duty of
the countersigning authority to verify that the conditions, if any,
attached to the grant have been duly accepted by the grantee without
any reservation and that no other bill for the same purpose has
already been countersigned before. Any bill received from the grantee
should not be countersigned unless it has been noted in the Register
of Grants against the relevant sanction. This would also facilitate
watching of payments in installments, if any, in the case of lumpsum
sanctions.”
(d) In case the amount of grant-in-aid is considerably small
and it is not convenient to follow the procedure laid down in
clause (a) regarding the preparation and presentation of a bill
by the grantee, the procedure to be followed should be settled
in consultation with the Audit office.
222

In cases where it is agreed between the sanctioning

authority and the Audit Officer that grants-in-aid may be drawn by
the departmental authorities on contingent bills and then paid by
them to the grantees on simple receipt without requiring the latter to
present a regular bill, the register prescribed in clause (c) should be
maintained with the following changes:
(i) Column (vi) of the register should bear the heading “date
of drawal of bill” ;
(ii) Column (viii) of the register should bear the heading “dated
initials of the drawing officer”:
(iii) The following two additional columns should be added in
the register in such cases;
(a) Column (ix)- “Date of payment to the grantee”.
(b) Column (x)-“Dated” initials of the Disbursing Officer.
GRANTS-IN-AID BILL
No .................
Heads of Accounts.............................. ..........received the
sums of Rs.............. (.....................................) being the grant-in-
aid for the period...................................... sanctioned
b y. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
No..........dated.................... (copy enclosed). Dated ................

Signature.
Designation.
223

Countersigned for Rs...................... Date ..................

Signature.
Designation.
For use in Treasury
Pay Rs ............................(..................................................)
Examined.
Treasury Officer.
Treasury Accountant.
Date ........................
For use in Accountant General’s Office
Admitted Rs ..........................
Objected to Rs ......................
Reason of objection................

Auditor. Superintendent. Gazetted Officer.

ADMINISTRATION AND OPERATION OF THE

GRANTS PROVIDED IN THE BUDGET FOR
AFFORDING RELIEF TO THE SUFFERERS IN
ACCIDENTAL FIRE AND ARSON CASES.
162-A. Following are the rules for the administration and the
operation of the grants provided by Government in the budget
of each year for affording relief by way of grants to the sufferers
in the accidental fire cases in the State:
224

(1) The Divisional Commissioner shall be the Chief Controlling

Authority for the administration of the funds. He will distribute the
grants sanctioned in each year to the several districts.
(2) The grant need not be confirmed to persons paying Land
Revenue to Government. Relief will be extended to all sufferers in
fire accidents who are really poor and require Government help for
rehabilitation.
(3) The extent and nature of relief shall have a direct bearing
to the immediate needs of the sufferer with particular reference to
the number of members in the family, and his minimum requirements
for getting rehabilitated in his previous occupation or employment.
The relief given need not necessarily be in proportion to the extent
of loss sustained by the sufferers as it is neither possible nor necessary
that the sufferer be given relief fully for the loss he might sustain due
to the fire accident.
(4) The Tahsildar shall investigate and determine the extent
and nature of relief to be given in each case with the due
reference to the above factors.
(5) Each family shall be treated as a unit for purposes of the
grant of relief.
Note.- ‘Family’ for purposes of these rules means wife or
husband, legitimate children and stepchildren residing with and wholly
dependent on the sufferer and includes in addition, his parents,
sisters and minor brothers, if residing with and wholly dependent on
him.
(6) The maximum amount of relief for any one family shall not
exceed ordinarily Rs.500.
225

(7) The Tahsildars and Assistant Commissioners are authorised

to sanction relief not exceeding Rs.50 and Rs.100 respectively, to
each family. The Deputy Commissioners are empowered to sanction
relief not exceeding Rs.250 and the Divisional Commissioners to
sanction relief not exceeding Rs.500 to each family. Cases of relief
exceeding the limit of Rs.500 shall require the sanction of
Government.
(8) (a) The preceding rule is subject to the following limits:
Sl. Name of the Officer Maximum limit upto which the
No. powers under the preceding rule
are to be exercised
1. In the case of Not exceeding Rs.1,000 in
Tahasildar any one case of accidental fire
2. In the case of Not exceeding Rs.2,000 in any
Assistant Commissioner one case of accidental fire

3. In the case of Not exceeding Rs.10,000 in any

Deputy Commissioner one case of accidental fire
4. In the case of Not exceeding Rs.20,000 in any
Divisional Commissioner one case of accidental fire

(b) cases exceeding the limit of Rs.20,000 shall require the

sanction of Government.
Explanatory Note.- For purposes of this Rule:
(a) One case of accidental fire shall mean one fire accident in
a village or town involving one or more families:
(b) The amount noted in column (3) represents the total amount
of relief that can be afforded in a fire accident.
226

(9) Cash relief should just cover the cost of foodgrains and
clothing, if any needed immediately.
(10) Building materials may be given free according to the
requirements of each case. The value of the building materials
supplied from forests may be paid direct by the Revenue Department
to the Forest Department. In the case of Scheduled Castes and
Scheduled Tribes, the material is supplied free of cost.
(11) Cash relief sanctioned in each case shall be disbursed by
the Tahsildar.
(12) Cash relief may be granted to each of the sufferers in fire
accidents on the following basis:
(a) For loss sustained up to Rs.10 cash relief up to Rs.20;
(b) For loss sustained, between Rs.100 and Rs.500 cash relief
of Rs.20 to Rs.50;
(c) For loss sustained between Rs. 500 and Rs. 1,000 cash
relief of Rs.50 to Rs.70;
(d) For loss sustained above Rs.1,000 cash relief up to Rs.100.
(13) Cash relief at the scale laid down in rule 12 will be in
addition to other reliefs that may be sanctioned by the Revenue and
Forest Officers by way of grant of building materials. The total relief
including the value of building materials shall not exceed Rs.500 for
any one family as laid down in rule 6.
Note.- Under this rule, the value of clothes and foodstuffs
to be supplied to the sufferers in addition to other reliefs by way of
free grant of building materials may be adjusted towards the relief
permissible only when they are paid from Government funds and
not from local help or contributions.
227

As regards the procedure regarding grant of relief to the

sufferers Government considers that no hard and fast rules can be
laid down regarding the quantum of relief to be granted as the
method and extent of such grant will mainly depend upon the nature
and extent of loss sustained, the social and financial position of the
sufferers, the amount required to provide food, clothing and
temporary shelter immediately, the contributions raised from the
public or charitable institutions, etc. The Revenue Officers should
therefore decide the quantum of relief and the method of its distribution
having regard to the circumstances of each case, keeping in view
the principle that Government aid is necessarily restricted to
supplementing private charity.
With regard to the supply of timber or building materials
the following procedure should be observed:
(i) The Revenue Officers may grant unreserved timber from
Government waste lands other than those constituted as State forests
or vested in other Departments. The value of such grants should not
exceed the cash relief which the Officer concerned can grant.
Reserved trees should not be granted.
(ii) Where suitable timber is not available in Government waste
lands under the control of the Revenue Department within reasonable
reach of the person affected, the Revenue Officer will issue an
authority in the Forest Department to permit removal of such timber
as the Forest Department may select up to the value specified in the
permit. The value of the timber granted together with cash relief, if
any, should not exceed the grant admissible in the case.
228

(iii) On receipt of the authority from the Revenue Officers, the

Forest Department will select and mark the trees which should be
cut and removed by the grantee.
The expenditure on account of grant of relief to sufferers is the
accidental fire should be met from the provision made under “64.
Famine Relief-d Gratuitous Relief-E. Expenditure an account of
Gratuitous Relief to Victims of flood, fire accidents and other natural
calamities”.
Note.- Grant of relief in case of the fire victims need not
be confined only to sufferers in incidental fires. The relief may also
be given to poor persons who suffer on account of arson provided
that the relief shall not be available to persons against whom any
criminal proceedings have been launched by the Police till such
persons are cleared by competent Courts”.
162-AA. Rules regulating the grant of relief to sufferers of flood
havoc-
(1) The Divisional Commissioner shall be the Chief Controlling
Authority for the administration and regulation of the relief.
(2) The following are the cases, where relief would be
admissible:-
(i) Loss of human lives.
(ii) Loss of cattle.
(iii) Damage to houses.
(iv) Damage to standing crops or crops sown.
(v) Damage to other properties such as irrigation bunds, pump
houses, etc.
229

(vi) Damage to lands by heavy deposit of silt or by erosion

rendering lands unfit for cultivation.
(3) The relief and its quantum will be governed by the following
conditions:-
(a) The relief will be limited to the minimum needs of the
sufferer to tide over the distress with particular reference to the
number of members in the family and for getting him rehabilitated in
his previous calling.
(b) It should be adequate enough to make the sufferer feel
that he is not left destitute and uncared for.
(c) The amount of relief should not exceed what is quite
necessary to supplement private charity.
(d) The quantum of relief should be decided on without
delay and dispensed quickly.
(e) It shall in no case exceed the loss sustained by the
individual.
(4) In the case of loss of human lives and cattle and damage
to houses, the permanent solution of shifting the houses in the low-
lying areas to higher regions which can be considered free from
danger of floods even during the peak years should be adopted. No
relief is admissible to people who persist in residing in their places
exposed to danger of floods even after they are offered sites in
higher regions.
The relief in such cases will be governed by the following
conditions:-
(i) Grant of building sites, free of cost, either out of available
Government lands in the vicinity or by acquiring suitable lands for
their rehabilitation in exchange for the abandoned sites, the cost of’
230

acquisition being borne by Government.

(ii) Grant of building materials free of cost, the extent of grant
being regulated with reference to the number of members in the
family of the sufferer and his need for assistance.
(iii) The materials should be supplied from the nearest Forest
depots, the transportation and other incidental charges being levied
from the grantees. Mafi passes to fetch such materials should not be
issued.
(iv) The maximum value of building materials to be granted in
any one case shall not exceed Rs.300 per house calculated at the
prevailing seigniorage rates of the Forest Department.
(v) The Revenue and forest Departmental Officers who are
empowered to grant building materials free shall exercise those
powers in those cases also.
(5) In the case of loss of, or damage to crops, where no crop
is realised, the assessment on the lands will be remitted in full.
(6) No other relief is admissible ordinarily for damage to crops
or other property. Where the persons are, however, deprived of
their all and are reduced to a state of destitution, relief by way of
cash grant may be dispensed up to a maximum of Rs.500 per family
on the following sliding scale subject to the principles enunciated in
clause (3) above:-
(i) for loss sustained upto Rs.200-Full extent of the loss.
(ii) for the loss of more than Rs.200 but not more than
Rs.1,000-50 per cent of the loss subject to a minimum of Rs.200.
(iii) for loss exceeding Rs.1,000-Cash relief of Rs. 500.
231

The cash relief indicated above will be in addition to the

grant, where necessary, of building materials of the value not
exceeding Rs.300 as provided in clause 4 (iv).
The overall cash relief should not exceed Rs.500 per family.
Each family shall be treated as a unit for the purpose of grant of
relief.
Note.- Family for purposes of these rules means wife or
husband, legitimate children and step children, residing with or wholly
dependent on the sufferer and includes in addition, his parents,
sisters and brothers, if residing with and wholly dependent on him.
(7) The Revenue Officers competent to grant relief for victims
of fire accident indicated in Article 162-A, are competent to grant
cash relief in respect of flood havoc also. Cases exceeding these
limits shall be submitted to Government for orders.
(8) In respect of lands damaged by heavy deposit of silt or by
erosion, rendering the lands unfit for cultivation full assessment on
the lands may be remitted or the period during which the lands
remain unfit for cultivation. This period shall not exceed three years
in any case.
(9) Where it is considered necessary, long-term relief by way
of loans may be given by Tahsildars to enable the sufferers owning
lands to rehabilitate in their former avocation, to the extent of loss
sustained by the individual, subject to the following Conditions:
(i) The loan will be interest-free.
(ii) it shall not exceed the value of loss sustained by the
sufferers or Rs. 1,000 whichever is less in any case.
232

(iii) The period of repayment shall not exceed 10 years.

(iv) The loan will be limited to Rs.200 per acre in the case of
wet or garden lands and Rs. 50 per acre in the case of dry lands.
(10) The expenditure on account of gratuitous relief is debitable
to 64. Famine Relief-D. Gratuitous Relief-E- Expenditure on account
of Gratuitous Relief to victims of flood, fire accidents and other
natural calamities”.
The loans sanctioned will be debited to the head. “Q.
Loans and Advances by State and Union Territory Governments
Miscellaneous Loans and Advances (e) Other Loans-Aid against
floods, rains, fire, accidents, etc.
Note.- Damages caused due to hailstones, storms, lightning,
earth quake and cyclone are also treated as natural calamities and
relief to be afforded to sufferers in such calamities by way of cash
grants and building materials will be as per the scales mentioned in
clause (6) of Article 162-AA.
“Payment of gratuitous relief to the families of persons
who loose their lives in the accidents, arson, floods, cyclones,
lightening storm and hail-storm”.
162-B. The following are the rules regulating the grant or relief
to the bereaved families of the persons killed in natural calamities
like fire accidents, arson, floods, cyclones, lightning, storm and hail-
storm:-
1. These shall be applicable throughout the Karnataka State.
2. They shall apply to all the families of persons who loose
their lives in fire accident, arson and other natural calamities such as
floods, cyclone, lightning, storm and hail-storm subject to the
conditions noted below:-
233

(i) the deceased persons should have been the sole earning
member of the family as per definition of family under Clause-
5 of Note below Article 162-A of Karnataka Financial Code.
(ii) the income of the deceased person should have been below
Rs.1,200 per annum.
3. The heirs of the deceased or killed will be sanctioned by
Government a lumpsum grant of Rs.250 and monthly payment of
Rs.30 for a period of five years from the date of sanction and in the
event of death of the payee of the bereaved family before the expiry
of five years the relief is payable to the next heir, if any, in the family
in the order of merit as indicated hereunder:-
(a) (i) to the surviving widow or if there are more widows
than one, all of them in such manner as Government may
deem fit, if the deceased is a male member or to the husband
if the deceased is a female member;
(ii) failing a widow or husband, as the case may be, to the
eldest surviving son:
(iii) failing (i) and (ii), to the eldest surviving unmarried daughter;
(iv) these failing to the eldest widowed daughter, and
(b) in the event of no pension becoming payable under clause
(a) the pension may be granted:-
(i) to the father;
(ii) failing the father to the mother;
(iii) failing the father and the mother to the eldest surviving
brother below the age of 18.
234

(iv) these failing to the eldest widowed daughter, married sister,

(v) failing (i) to (iv) to the eldest surviving widowed sister;
4. The gratuitous relief amount sanctioned under this scheme
will not be liable to attachment under any process of law.
5. Each Tahsildar shall make in respect of grantees in his area
yearly verification of the fact that the grantee is alive. The verification
shall be made by the Tahsildar once in a year and a report sent to
Government (Revenue Department) through the Deputy
Commissioner of the District before the end of March.
6. The District Treasury Officer/State Huzur Treasury Officer
shall be the authority for the payment of amount.
7. The monthly payment shall become due for payment only
on the expiry of the month to which it relates.
8. It shall be the duty of the grantee to intimate any change
of his/her address to the Tahsildar who will in turn advise the
District Treasury Officer/State Huzur Treasury Officer, who
makes the payment.
9. Every grantee will be provided with an identification card
furnishing therein his/her marks of identification, his passport size
photo, the monthly gratuitous amount payable to him/her.
162-C. The rules governing the grants for construction of houses
by Scheduled Castes, Scheduled Tribes, Ex-criminal Tribes and
Nomadic and Semi-Nomadic Tribes are detailed in Appendix VII-
B.
235

CONTRIBUTIONS
163. As it is considered inexpedient that different departments
of the State should, in their Individual names, make contributions
towards one and the same object of public utility, Heads of
Departments will forward to Government all applications for help
for such purposes. In deserving cases, a State grant will be sanctioned
in the name of Government.
236

CHAPTER X
STORES
(The stores Purchase Rules are contained in the Stores
Purchase Manual).
STOCK ACCOUNTS
164. (a) Heads of Offices and other entrusted with the care of
stores of any kind, e.g., raw materials and consumable stores in all
manufacturing, trading or consuming departments, apparatus,
instruments, plant and machinery, office furniture, and other office
stores like books, forms, stationery, safes, locks, bicycles, clocks,
lamps, etc., are responsible for taking all due care for the safe
custody of such articles and for maintaining suitable accounts and
inventories so as to prevent losses to Government by accident,
theft, fraud or negligence. For securing this object, it is important
that each item of receipt and issue (or disposal) of stores should be
recorded concurrently as it occurs in suitable stock registers or
inventories so that it should be possible at any time to check the
actual balance with the book balances. It should also be possible to
check the expenditure on stores with the help of the stores records
and vice versa-vide the certificate prescribed at the foot of the
contingent bill forms.
(b) The exact forms in which the stores accounts described
above should be kept depend on the nature of the stores, the
frequency of transactions and the special circumstances of each
department. Thus, the accounts to be kept for consumable stores
like dietary stores in a hospital or jail of which there are
numerous and varied transactions, differ very materially from
those be maintained of the articles of furniture in the office.
237

Separate stock accounts or inventories should be maintained

of-
(i) raw materials and consumable stores in all manufacturing,
trading, development and other departments, and
(ii) office furniture such as chairs, tables, racks, stools, benches,
trays, etc., and other office stores excluding books, forms and articles
of stationery but including live-stock and other stores and movable
property in the custody of each Government servant such as iron
safes, locks, scales, weights, tents, machines, lamps, bicycles, clocks,
etc.
165. Raw Materials and Consumable Stores.- A stock account
of these stores should be maintained in the forms prescribed in the
respective departmental Manuals, Codes or orders. The main features
of the accounts required are the maintenance of Day Books of
receipts and issues recording the transactions as they take place,
and of a ledger for each kind of article showing the receipts, issues
and balances.
In the case of departments for which,. no specific forms or
rules have been prescribed by general or special orders of
Government or in any of the departmental Codes or Manuals,
Forms 33 and 34 may be used.
Note.-The issue of stores should as far as possible be on
indents duly passed by an authorised officer.
166. Furniture and other office stores.- In the case of office
furniture and other office stores a Day Book in Form 34-A and
a sample ledger account in Form 34 for each kind of article are
sufficient. The form of ledger provides for noting the receipts,
disposals (due to damage, loss, transfer or sale) and balances.
Articles purchased or supplied should be immediately brought to
238

account. Once a quarter, these registers should be verified and the

result reported to the head of the office.
Note 1.- In the case of furniture in large offices distributed
over several rooms, the head of the office may have inventories
which may be in each room kept up-to-date to facilitate the annual
verification of stock and to fix the responsibility for losses.
Note 2.- In the case of libraries and museums, catalogues
are also maintained besides the prescribed inventories.
Note 3.- In case of forms and stationers, stock books
should be kept in accordance with the stationary rules.
167. The object of the above provisions is to enable the
Government servants to realise their responsibility in respect of
Government property and to indicate the general and essential
principles on which accounts of stock are kept. The actual system
to be followed in any particular case will be depend on the
circumstances of each case and where a particular system prescribed
in any Manual or Code is already in force, it need not be changed.
Where the existing systems are defective or where no accounts are
kept at all, Heads of Departments and offices should see that the
necessary accounts are kept as far as possible, in conformity with
the principles contained above.
STORES LOST OR RENDERED OBSOLETE, SURPLUS
OR UN-SERVICEABLE
Stores Lost
168. (a) If stores are lost by fire, theft, etc., and their value
becomes irrecoverable, previous sanction of the com- petent
authority should be obtained for their write-off before the missing
articles are eliminated from the store accounts, numerical or otherwise,
239

vide Article 306. If however, the cost of missing stores is recovered

fully, they may be eliminated from the accounts without an order of
write-off.
1
[Heads of Department may declare stores as obsolete
surplus or un-serviceable and dispose them of upto Rs.1,000 each
time and Rs.5,000 per annum. Joint Director/Controlling Officers
may declare Stores to the extent of Rs.200 each time and rupees
1,000 per annum, as obsolete surplus or unserviceable and dispose
them of.]
Stores rendered obsolete, surplus or unserviceable.
(b) (i) Subject to any special rules or orders applicable to any
particular department, whenever stores become obsolete, surplus or
unserviceable for whatever reason, they should be declared as
such and disposed of by sale or otherwise under the orders
of competent authority by submitting to him a survey report in Form
K.F.C. 34-B. After such disposal, they may be eliminated from the
accounts without an order for write-off which is required only when
the stores are lost and their cost becomes irrecoverable.
(ii) Each order declaring store as obsolete, surplus or
unserviceable under (b) should indicate the causes leading thereto
and how the condemned stores are to be disposed of, i.e., whether
by sale in public auction or otherwise or by destruction in the case
of useless and irreparable materials, such an order would be sufficient
to cover the loss to Government, if any. A copy of each such order
should be endorsed by the competent authority to the Accountant
General. The head of the office should record full particulars of all
condemned stores in Form 34-B of Karnataka Financial Code from
which their disposal can be watched.

1. Inserted by No. FD 12 RFC 77 dt. 19.5.1978 (w.e.f. 1.2.1977)

240

Where the competent authority holds that stores have

become unserviceable, obsolete, or surplus owing to negligence,
fraud, etc., on the part of individual Government servants, it will be
necessary to fix the responsibility for the loss and to devise measures
to prevent recurrence of such cases.
1
[Note.- Advertisement in news papers for disposal of
Articles and empty bottles, containers etc., shall be inserted
only when the amount expected to be realised by sale in public
auction of condemned stores, is more than Rs.2,500/-. In other
cases, local quotations may be called for from three or more known
firms and also published in the office notice board. However, in
respect Public Works Department and Irrigation Department the
procedure prescribed in Karnataka Public Works Departmental code
and Departmental Rules shall be followed.]
(iii) Where the articles are sold by public auction the head of
the office or any other Gazetted Officer should invariably attend the
auction and record the final bids ;
(iv) The Head of the office or any other Gazetted Officer
should also be present when the article sold are released, his presence
being most essential when the release of the articles takes place
sometime after the auction, or when It involves processes such a
weighment, etc. ,
(v) The Sale Account should be in Form K.F.C. 34-C. It
should be signed by the Officer who supervised the auction
after comparing the entries made in that Account with the list
of such stores in Form 34-B, vide sub-clause (ii). If the articles
are released in the presence of an officer other than the one
who supervised the auction, the entries in column 9 of the Sale
Account should be attested by dated signature of such officer;
1. Inserted by No.FD 2 TFC 82 dt. 2.12.1982 (w.e.f. 24-2-83)
241

(vi) The sale proceeds should be treated as a miscellaneous

receipt of the department concerned.
The term “value of stores” for the purpose of issue of
sanction for the write-off of irrecoverable value of stores lost,
or for condemnation of unserviceable, obsolete or surplus stores
should be taken as (a) the book value where priced account are
maintained and (b) the replacement value, i.e., market value (at the
time of issue of sanction for the write-off/disposal) of an article of
similar nature whether old or new where no such accounts are
maintained.
VERIFICATION OF STORES
169. Stores should be verified periodically in the manner
prescribed for each department, in any case, at least once a
year. Subject to any special rules or orders, consumable stores
and raw materials should be checked annually by the
Government servants in charge of them and a report of
verification should be sent to the controlling authorities, who
will check the inventories in the course of their inspections.
In the case of furniture and other office stores, the stock
should be verified at least once a year (in April) by the head of the
office or one of his Gazetted Assistants. A certificate of check
should be submitted to the controlling officer, where there is one,
signed by the head of the office who will be held responsible for the
proper maintenance of the registers and the correctness of the
verification report, whether he conducts the verification himself or
entrusts it to a Gazetted Assistant.
Note 1.- When there is a separate store-keeper in charge
of stores, the verification of stock prescribed in this Article
should be done by another Government servant.
242

Note 2.- A certificate in Form 35 will also be attached to

the salary bill of the Heads of offices for April payable in May.
When there is a transfer of charge, a similar certificate should be
attached to the first pay bill of the relieving Government servant
presented for payment. Explanation for the difference in stock, if
any, and action taken thereon should be furnished in these certificates.
Exception.- In respect, however of the heads of
Government Colleges, the certificate in form Karnataka Financial
Code 35, will be attached to their pay bills for the month of
July.
Note 3.- With a view to preventing delay in the annual
physical verification of stores (Stock, Tools and Plant and
materials at site account including roadside materials) and the
despatch of the copy of Part III (Review) relating to Stock and of
the certificate relating to Tools and Plant due to the Chief Engineers
concerned and of the Annual Certificate of suspense balances due
to the Accountant General the certificates should be sent by the
Government servants concerned along with their salary bills for July
and December of each year to the effect that necessary stores
verification has been carried out and returns due to the Chief
Engineers and the Accountant General have been despatched on
the due dates.
The form of the Certificate should be as follows:
Certified that the following returns and certificates have
been submitted with this office letter No................. dated
.............................. to the concerned officers on the prescribed
date as indicated below :-
243

Name of the Prescribed date of To whom submitted

returns etc. submission

1 2 3

(i) Part III Review of 15th December and To the concerned

Register of stocks 15th July respectively Chief Engineers.
for the half year Copy to be endorsed
ended 30th September to the Chief Engineer
and 31st March (Communications
and Buildings).

To the Chief Acc-ounts

Officer of the project in
the case of projects
having pre-audit set up

(ii) Certificate printed On or before 15th To the concerned

in Part-III Shortages December Chief Engineers, copy
await-ing adjustments to be endorsed to
of the register of the Chief Engineer
tools and plant (Communications
and Buildings).

(iii) Annual Certificate 20th May To the Accountant

of suspense balance General.

Note 4.- (i) The Executive Engineer should furnish a

certificate on the pay bill for June to be encashed in July every
year to the effect that the pass books or intimations in respect of all
irrigation works taken up and completed during the year and for
which contribution and water rates are leviable have been sent to
the revenue authorities concerned in complete form.
244

(ii) The Tahsildars should also furnish a certificate on their pay

bill for June to be encashed in July every year, to the effect that the
demand has been booked in respect of all irrigation works for
which pass books, etc., have been received from Public Works
Department.
Note 5.- (i) Accounts in respect of receipt, issue and
stock of forms and registers should be maintained and
verification of their stock should be conducted properly and
promptly as prescribed under the rules for printing and supply of
forms and registers to Government Offices;
(ii) The forms and registers should not be used for the purposes
other than those for which they have been prescribed under the
rules;
(iii) The accounts maintained in respect of receipt issues and
stock of forms and registers should be made available to the Audit
party of the Office of the Accountant General, Karnataka, Bangalore
at the time of local audit of the respective offices for verification and
scrutiny as is being done in case of stationery articles, and
(iv) A certificate regarding verification of Stock Register of
forms and registers, should be attached to the salary bills of all
heads of offices for the month of April payable in the month of May,
as is being done in case of furniture and other office stores.
The above rules are also applicable to the City Improvement
Trust Boards of Bangalore and Mysore and to the Executive
Engineers or the Assistant Engineers working therein who are a
incharge of the Stock, Tools and Plant, materials at site, etc., of the
stores of the Boards concerned, the Chairman of the concerned
Board exercising the powers of the Controlling Officer for granting
extension of time.
245

170. Whenever a Government servant entrusted with the custody

of stores in an office is transferred, the relieving Government servants
should verify the stock of stores with the stock accounts and certify
to the correctness of the stock taken over. For the purpose of this
rule, the Government servant entrusted with the custody of stores is
ordinarily the Head of the Office, but this duty may be delegated in
large offices to a Gazetted Assistant., Manager or a recognised
store keeper. When such a delegation has been made, the
verification prescribed is only necessary, unless it is otherwise ordered
in any case, when a Government servant to whom the duty has been
delegated is transferred, and in such cases the results of verification
should always be placed before the head of the office. This does
not however relieve the head of the office of the responsibility for
the certificate prescribed at the foot of the various contingent bills,
etc., stating that the articles billed for have been brought into account,
nor for general control over the proper custody and accounts of
stores.
DISCREPANCIES FOUND ON VERIFICATION OF
STORES
171. Deficiencies found as a result of stock verification may be
due to :-
(1) incorrect or careless accounting.
(2) losses arising from fraud, theft or negligence, or
(3) unavoidable causes such as wastage, shrinkage, spilling,
etc., in the cases of consumable stores such as dietary articles,
chemicals and certain classes of manufactory articles.
Excesses found in stock verification may be due to incorrect
or careless accounting. It will be the duty of the head of the office
246

or institution to investigate fully into discrepancies and to report

them along with the verification reports to controlling authorities with
full explanation therefor and recommendations, if any, as to how the
losses should be made good by recoveries from Government servants
in case the loss can be traced to their culpable negligence or
carelessness. The controlling authority should after such examination
and investigation as the importance of the case warrants, issue or
obtain from the competent authority, orders to write off deficiencies
from the account. On receipt of such orders the deficiencies will be
charged in the accounts quoting the authority. The realisation of
recoveries ordered should be recorded. Excesses at the time of
stock taking should, after investigation, be brought on to the stock
register as receipts with the remark “Excess found in stock
verification.” No special orders are necessary for this.
ANNUAL REPORT
172. In the Annual administration report sent to Government,
the Head of the Department should furnish information as
regards (1) conditions in which stock registers are maintained
in his office and in the offices subordinate to him, (2) result of
periodical verification of stock, (3) action taken for the
adjustment of deficiencies, excesses, etc., if any, noticed during
stock taking.
The Head of each department should send to the Audit
office annually before 1st June, a statement in the following
form, showing (1) the names of institutions and offices under his
charge (including Guest’s Houses, etc.). (2) the dates on which
stock verification reports were received by him in respect of each
institution or office, (3) result of verification (excesses or deficiencies
noticed), and (4) action taken in respect of excesses or deficiencies,
if any, noticed during stock taking.
247

Serial Name of Date receipt Name and Period

No. the of stock designation covered
Institution verification of the by stock
or office report Government taking
servant by
who stock
was taken

1 2 3 4 5

Difference

Name Book Balance Excess Deficiency Action Re

of balance actually taken marks
article counted

6(a) 6(b) 6(c) 6(d) 6(e) 7 8

Note.- Details in respect of only such of the articles

thereunder differences are observed need be furnished in columns
6(a) to 6(e). When there are no difference under any of the articles
in an institution, they need not be detailed but it should be noted as
“Nil” in Columns 6(d) and (e).
248

STOCK ACCOUNTS OF BOOKS AND PERIODICALS

173. All books and periodicals received in an office will be
dealt with as laid in the Manual of General Circulars and
Standing Orders and entered in a register in Form 36.
Every Government servant, upon receiving charge of
an office to which library is Attached, must satisfy himself as to the
state of the library, unless he then reports that the books are out of
order, it will be assumed that he received the library in good order
and he will be held thenceforth personally responsible for any defect.
All books appearing in the register of books or catalogue
of the library on the 31st March of every year should be counted
and examined by the heads of offices or institutions concerned or
by one of their Gazetted Assistants. A certificate to this effect should
be furnished by the Head of each office, every year.

ACCOUNTS RELATING TO MOTOR VEHICLES

174. The following rules regulating the use of vehicles maintained
in Government Commercial concerns and other Government offices
are issued for the guidance of Government servants:
(1) Whenever a Car, Jeep or Bus maintained at the expenses
of Government is to be used, the permission of the Chief Officer
of the concern or such other Government servants to whom
powers have been delegated, should invariably be obtained.
(2) The vehicle should be used only in the interest of
Government work.
249

1
[Deleted]
(3) The vehicle may be used by the Chief Officer or other
Government servant permitted in this behalf to move about on
inspection duty. Attention is invited to Rules 497, 527, 527(A),
527(B) and 527(C), Karnataka Civil Services Rules, 1958 regarding
the travelling allowance payable when Government vehicles are used.
The Drawing officer/Gazetted Officer should furnish, in the
bill containing claims for conveyance allowance, a certificate to the
effect that wherever the Government conveyance was used,
proportionate conveyance allowance has been deducted/will be
deducted from the travelling allowance claims or, in the case of
journeys within the headquarters, from the salary bill of the month.
(4) The movements of each vehicle should be recorded in a
Log Book which should contain the details as indicated in the forms
noted below:
The meaning of the term ‘private capacity’ used above is
that the Government vehicles could be used even by private persons
in connection with Government work. Government vehicles should
not be used for purposes not connected with Government work.
The vehicles can be used by Government officers or by private
persons like the contractors of the Public Works Department only
for Government work on payment of the hire charges fixed above.
As regards travelling allowance admissible to Government
servants when means of locomotion are supplied, attention is invited
to Karnataka Civil Service Rules.

1. Deleted by No. FD 3 TFC 81 dt. 24.8.1983

250

“Note 1.- The Assistant Engineers and Executive Engineers

incharge of a Sub-division/a division shall furnish a certificate along
with their pay bills for the months of June and December to the
effect that the log Books and History Registers of Machinery have
been brought up to date. Without such a certificate their pay bills for
the months of June and December shall not be honored by the
‘Treasury Officers’.
FORMS
LOG BOOKS OF GOVERNMENT MOTOR VEHICLE
In the custody of....................................................................
Type of Vehicle.. ...........................................................
Name of the Driver.................................................
No. of Engine................ Registration No...................
PART - I
Date From To Num Details Purposes Quantity Intials Intials
and and ber of of Places of of of the of the
Time Time miles Travelled Journeys petrol Driver Officer
run and purchsed
persons (Galons)
who
travelled
in the
vehicle

1 2 3 4 5 6 7 8 9

Total for the month ............................ Total for the month .............................

N.B..- Average number of mile per gallon during the

monthshould be worked out at the end of each month, for the
purpose of the T.A. claim.
251

PART - II
SERVICING, REPAIRS, ETC.

Date Date Nature Date Date Replace Cost Cost Refer- Initials Re
of on of which of -ment of of ence of marks
Servi- which Rep- the return of servi- servi- to the the
cing the airs vehicle of the equip- cing cing Bill Offi-
vehicles was vehicle ment accep- cer
went sent after or ted or
out for repairs parts paid
of repair
order

1 2 3 4 5 6 7 8 9 10 11

PART - III
ACCOUNTING FOR SPARE PARTS AND
ACCESSORIES

Sl. Name and Quan- Date Quan- Date Acknow- Bal- Re-
No. description tity of tity of ledgement ance marks
of spare recei- receipt issued issue of the by
pars and ved of Driver the
tools pur- Officer
received or chase
purchased

1 2 3 4 5 6 7 8 9
252

Note 2 .- 1[(i) Any Officer to whom a Government Vehicle

is attached for official work is permitted to use the vehicle for
private purposes also if he so desires, subject to payment of Rs.
450/- per month for a vehicle whose H.P. exceeds 16 but below 18
and Rs. 300 P.M. for a vehicle whose H.P. is 16 or less. If the
distance covered 500 KM per month, the officer, should pay
charges at Rs. 2-30 per Kilometer for a vehicle whose HP exceeds
16 but below 18 and Rs, 2.00 per Kilometer for a vehicle whose
HP is 16 or less.
(ii) Any Officer who does not wish to make use of the facility
permitted in (i) above, may if he so desires, use the vehicle attached
to him for private journeys on payment at the rate of Rs 2-30 per
KM, for a vehicle whose H.P. exceeds 16 but below 18 and Rs,
2.30 per Kilometer for a vehicle whose H.P. is 16 or less. ]
(iii) The use of Government vehicle on private journeys should
not interfere any way with official requirements, and official journeys
should always take precedence over private ones;
(iv) The journeys from the residence of the officer to his place
of work and back shall be treated as private journeys;
(v) Notwithstanding what is stated above, the use of
Government vehicles, for picnic parties, pleasure trips and other
similar journeys is strictly prohibited;
(vi) The Government Vehicle should not be taken on Private
Journeys to places outside the Corporations / Municipal Limits
of the Headquarters of the Officer to whom it is attached. The
Private use of the Vehicle beyond the City / Municipal Town Limits
is totally Prohibited;

1. Substituted by No. FD 19 TFC 91 dt. 21.8.1995

253

(vii) The movement of each vehicle should be scrupulously

entered in the log book in strict accordance with Article 174 of
K.F.C. and rule 55(40) of M.C.E. The entries pertaining to each
journey, whether official or private, should be verified, and initialled
by the actual user within 24 hours of its performance,

(viii) Officers should not generally use Government vehicles

outside the normal hours of duty of the driver, save in exceptional
circumstances;
1
[(ix) Vehicles should be parked, when not in use, only at the
office premises/garages and not at the residence of officers].

(x) Rates applicable to diesel vehicles.- The rates fixed for the
use of Government vehicles for private purposes are applicable to
both diesel and petrol vehicle irrespective of the type of fuel used;

(xi) Use of Government vehicles by the officer when he is on

leave:- The Government vehicle should not be taken for private
purposes when the officer to whom the vehicle is attached is on
leave, other than casual leave. This includes the journey under L.T.C.
and other journey the officer may undertake, in his private capacity
when he is on leave.

(xii) Use of Government vehicles for journeys on transfer.- Since

the places to which the officer is transferred, will be outside the
Municipal/Corporation limits of the post he was holding, the vehicle
cannot be taken for journeys on transfer;

1. Substituted by No. FD 19 TFC 91 dt. 21.8.1995

254

(xiii) Use of Government vehicles to carry tappal boxes:- (a)

The use of Government vehicles occasionally by an officer to whom
it is attached for carrying files/tappal boxes to the residence of the
officer and back may be treated official journey to limited extent
only. But such runs should not exceed eight trips in a month.

(b) In addition to above, the use of Government vehicle by the

officers who may have to reach the office very early i.e., before 10
A.M. and leave the office very late i.e. after 6.00 P.M. or on
holidays in the exigencies of work is also treated as official to an
extent of 6 trips per month only.

(xiv) Payment of the expenses of driver and shifting of vehicles

when an officer gets transferred:- The pay of the Driver and
expenditure of the Government vehicle has to be met by the
concerned department from the funds allotted to that Department.
Shifting of cars and drivers to the places where the officer gets
transferred is not possible, for the reason that the vehicles are attached
to the departments and assigned to work with the officer while
occupying a particular post and hence, when the officer is transferred
to some other department the vehicle and driver do not go with the
officers

(xv) Heads of Account to which the charges for the private use
of vehicles to be credited:- Every Department has its own credit
heads, under which there is a minor head ‘Other Receipts’ to which
all the credits which are not classified under any particular head may
be credited. Since the receipts for private use of Government vehicles
are not comparatively huge, they could be conveniently credited to
the minor head ‘Other Receipts’ of the concerned Departments.
255

(xvi) The aforesaid amendments shall be deemed to have come

into effect from the dates indicated below against each.-
Paras (i) and (ii) ... from 1.12.1980
(iii) to (ix) ... from 18,01.1978
(x) to (xv)
Excepting para (xiii) ... from 4.10.1979
Para (xiii) (a) from 4.10.1979
(b) from 28.11.1980
256

CHAPTER XI
WORKS
175. The duty of constructing and maintaining Government
buildings used or intended for any purpose in connection with
the administration of the State on behalf of the departments of
Government concerned, devolves on the Public Works Department
except in so far as Government have assigned such a work to the
department using or requiring such buildings. Works assigned to
departments other than the Public Works Department are of
two kinds, viz :-
(i) Works of petty constructions and repairs of buildings under
the administrative control of the Public Works Department.
(ii) Works connected with buildings under the administrative
control of departments other than the Public Works Departments,
i.e., buildings which are not borne on the registers of the Public
Works Department, e.g., certain buildings of the Forest, Agriculture
and other departments.
Note.- The Head of each department will keep a register
of all buildings under his control.
176. All expenditure on works assigned to Civil Departments
will be met out of the budget provision of the departments
concerned. The powers of officers to sanction expenditure on
works assigned to the civil departments and executed by them are
contained in the Book of Financial Powers.
Note.- The execution of works by the Forest Department
is regulated by the rules contained in the Karnataka Forest Account
Code.
257

177. The following are the rules and conditions governing the
execution, by civil departments, of works of petty construction and
repairs of buildings under the administrative control of the Public
Works Department :-
(1) Expenditure on construction and repairs executed by civil
departments will be treated as contingent expenditure of the
department incurring it and classified as petty construction and repairs,
when the amount does not exceed Rs.250. Construction and repairs
costing more than Rs.250 will be treated as Public Works
expenditure.
(2) The execution of works described in rule,(1) above should
involve:
(a) no structural alterations to buildings in charge of the Public
Works Department : and
(b) the repairs to roofs should be confirmed to only trifling
items.
In other words, civil offices may carry out only ordinary
repairs which do not affect the capital value of buildings in charge
of the Public Works Department, all structural alterations and
additions, irrespective of the amount of their cost, being executed
by or with the approval of the Public Works Department Officers
in charge.
(3) Civil Officers should seek the assistance of Officers of the
Public Works Department whenever, they consider that the works
undertaken by them under these rules require professional supervision.
(4) Rules 1 to 3 above do not apply to buildings, the
maintenance and repairs of which irrespective of the cost, devolve
258

on the Public Works Department, (e.g., Official residences, Public

Office Buildings, etc.)
178. Preparation of estimates.- No work may be started unless
as complete an estimate as possible with a detailed explanation of
the work and the necessary for the same has been prepared by the
officer requiring the work, and has been duly sanctioned by the
competent authority with due regard to the appropriations of the
year.
Note.- When it is proposed to make a lumpsum payment
for any work on items of work, only Such descriptions and details
as are necessary to justify the estimate should be given in it.
179. Sanctions for work- Copies of sanction should be
communicated to the Audit Office by the sanctioning authority,
except when bills are drawn or countersigned by the sanctioning
authority itself.
180. Methods of execution.
(1) After the necessary sanction has been obtained for an
estimate and an appropriation has been allotted for the work or a
group of such works by the competent authority, the work may be
executed in one of the two ways, (i), departmentally, all materials
being purchased by the department and labour being engaged at
daily or weekly rates, or (ii) the work may be executed through a
piece- worker or a contractor.
(2) Special care should be taken to see that the rates and
amounts fixed upon are economical with due regard to the
quantities and the nature of the work.
(3) Attention should also be paid to the principles regarding
the invitation of tenders.
259

(4) When only materials are purchased from a supplier and

labour is engaged departmentally, the Stores Purchase Manual
contains full instructions as to the Procedure to be followed for the
supply of materials. As regards measurements of quantities see Article
183.
(5) If a work is proposed to be executed through a contractor
who supplies his own materials and labour, it is important to adopt
the measures necessary to secure Government against loss. Written
agreements (and securities too, if need be) should be taken in a
manner similar to the Public Works Department.
Note.- As works involving technical skill or professional
supervision should be entrusted to the Public Works Department,
the simpler class of works assigned to civil officers should not
ordinarily require elaborate and complicated agreements.
181. Preparation and payment of bills.- Charges on account of
petty works and repairs carried out departmentally should be drawn
on in bills in Form No, 37. The details regarding the name of work,
serial number of the bill for a work, the number and the date of the
last bill, the number and date of orders sanctioning the work and the
amount of sanctioned estimate should be entered on the bills in the
spaces for the purpose. A full description of each item of charge,
together with details, where necessary, as to the rates and quantities
should be given and sub-vouchers should be attached for payments
over Rs.25.
Charges for labour should be supported by a certificate to
the effect that laborers were actually entertained and paid on muster
rolls maintained in accordance with the rules. These muster rolls
should be submitted to audit whenever called for.
260

In all cases in which no special procedure or forms have

been prescribed either in the departmental Manuals or by orders of
Government, civil officers proposing to execute works on contract
will use the forms prescribed for the Public Works Department.
Note.- Advances to contractors are, as a rule prohibited.
182. Muster rolls.- For work done by daily labour, the officer
in immediate charge of the work will prepare a muster roll
which is the initial record of labour employed each day on a work.
lt must be written up daily by the officer in immediate charge of the
work. Muster rolls should be prepared in accordance with the
following instructions :-
(i) One or more muster rolls should be kept for each work
but muster rolls should never be prepared in duplicate.
Note.- All entries in muster rolls should be made in
ink.
(ii) Wages may be paid more than once a month and the
period covered by each payment may be determined locally; but
separate muster rolls must be prepared for each period of payment;
(iii) The daily attendance and absences of labourers and the
fines inflicted on them should be recorded daily in Part 1 of the
muster roll in such a way as (1) to facilitate the correct calculation
of the net wages of each person for the period of payment, (2) to
render it difficult to tamper with or to make unauthorised additions
to, or alterations in, entries once made, and (3) to facilitate the
correct classification of the cost of labour by works and subheads
of works where necessary.
Note - Superior officers should, as frequently as possible,
test-check the attendance of labourers.
261

(iv) After a muster roll has been passed by the officer authorised
to draw the bill for works expenditure, payment thereon should be
made as expeditiously as possible. Such payment should be made
or witnessed by the official of the highest standing available, who
should certify to the payments individually or by groups, at the same
time specifying, both in words and figures, at the foot of the muster
roll, the total amount paid on each date. If any items remain unpaid
the details thereof should be recorded in Part II, the register of
arrears, before the memorandum at the foot of the muster roll, is
completed by the person who made the payment.
(v) Unpaid items should subsequently be carried forward from
muster roll to muster roll until they are paid, the payments being
recorded and certified in Part II, in the same way as payments of
current items.
(vi) In the muster roll should be recorded the progress of
work done by the labour shown thereon in all cases where such
work is susceptible of measurement. If the work is not
susceptible of measurement, a remark to this effect should be
recorded.
(vii) Paid muster rolls need not pass beyond the office of the
responsible disburser.
183. Measurement Books.- Payments for all work done
otherwise than by daily labour and for all supplies are made on the
basis of measurements recorded in measure ment books. The
measurement book is the original record of actual measurement or
count. The descriptions must be lucid so as to admit of easy
identification and check. A reliable record is the object to be aimed
at as it may have to be produced as evidence in a court of law. The
measurement books should, therefore, be considered as very
important account records.
262

Note.- Whenever measurement books change hands even

if it is only from one office to another situated within the same
building, the receipt of the books should be acknowledged in writing
by some responsible person of a grade not inferior to that of a
clerk.
In recording detailed measurements, the following general
instructions should be carefully observed. See also instructions
printed in the measurement book :
(i) The topmost lines under columns 1 to 4 on each page of
a measurement book should invariably be filled in the field. None of
the lines should be left blank. Any lines not required should be
carefully scored through in order to prevent additional entries being
made later on. Detailed measurements should be recorded only by
the disbursing officer or such duly authorised executive subordinate
incharge of the work, as has been supplied with a measurement
book for the purpose. These detailed measurements should, as far
as possible, be test-checked by the superior officers.
(ii) All measurements should be neatly taken down in a
measurement book and nowhere else.
(iii) Each set of measurements should commence with entries
stating :-
(1) In the case of bills for work done :-
(a) Full name of work as given in the estimate,
(b) Situation of work,
(c) Name of contractor,
(d) Number and date of his agreement, if any, and
(e) Date of measurement :
263

(2) In the case of bills for supply of materials.-

(a) Name of supplier,
(b) Number and date of his agreement, if any, or order,
(c) Purpose of supply, and
(d) Date of measurement:
and should end with the dated signature and designation of the
person making the measurements. A suitable abstract should then
be prepared which should collect, in the case of measurements for
work done, the total quantities of each distinct item of work.
(iv) As all payments for work or supplies are based on the
quantities recorded in the measurement book, it is incumbent upon
the person taking the measurements to record the quantities clearly
and accurately. If the measurements are taken in connection with a
running contract account, on which work has been previously
measured, he is further responsible -
(1) that reference to the last set of measurements is recorded,
and
(2) that, if the entire job or contract has been completed, the
fact is recorded prominently just above his initials. If the measurements
taken are the first set of measurements on a running account, or the
first and final measurements, this fact should be suitably noted against
the entries in the measurement book. The signature of the contractor
or his agent should be obtained in the measurement book after
each set of measurements, with the addition, “I accept the
measurements”. In the case of illiterate men, their marks should be
attested by an independent witness.
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(v) At the time of payment, the officer authorising payment

should cross out every page containing the detailed measurements
of the work of supplies Paid for by a diagonal red ink line and
should record a reference to the number and date of the voucher
or sub-voucher on the abstract of measurements.
(vi) Entries should be recorded continuously in the measurement
book. No blank pages may be left and no page be torn out. Any
pages left blank inadvertently must be cancelled by diagonal lines,
the cancellation being attested.
(vii) No entry may be erased. If a mistake is made it should be
corrected and dated by the responsible officer. When any
measurements are cancelled, the cancellation must be supported
by the dated initials of the officer ordering the cancellation or by
a reference to his orders initialled by the officer who made the
measurements. In either case the reason for the cancellation be
recorded.
(viii) Entries should, if possible, be made in ink; when this is not
possible, pencil entries should not be inked over. Entries in the
“contents or area” column should be made in ink in the first instance.
(ix) Each measurement book should be provided with an index
which should be kept up-to-date.
(x) The measurement book should be made available for the
inspection of the Accounts Officer, when necessary.
184. Completion reports.- on the completion of a work in
accordance with the sanction, a completion report should be prepared
and forwarded to the Audit office through the sanctioning authority.
It should show the name of the work, sanction number and date,
amount of sanction and the actual expenditure incurred. The
expenditure in excess of the sanctioned estimate should be explained
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in the completion report and sanction of the authority competent to

incur the total expenditure obtained and recorded.
184-A. The special procedure prescribed by Government for the
construction of school buildings undertaken under the cheap design
scheme is detailed in Appendix VIII.
184-B. The Accounting procedure for the guidance of officers
employed in the execution of National Extension Service and
Community Development Works, is detailed in Appendix IX.
184-C. In case of Drinking Water Wells, where water is not tapped
at the expected depth or the water tapped is brackish or otherwise
not potable, they shall be abandoned with specific sanction as
under:-
1. The Well proposed to be abandoned shall be inspected by
the Assistant Commissioner and the views of either the Assistant
Engineer or the Geologist be obtained, before the inspection is
taken up;
2. The Deputy Commissioners of the Districts may order
write off of the infructuous expenditure on such abandoned
Wells upto and inclusive of Rs.2,000 (Rupees Two thousand
only) and the Divisional Commissioners upto and inclusive of Rs.5,000
(Rupees Five Thousand only);
3. The Deputy Commissioner and the Divisional Commissioner
shall send a list of such cases to Government after the close of each
quarter with reasons for abandonment of Wells.
4. The above proviso applies to Drinking Water Wells
executed under all Schemes and where the Deputy Commissioner
and the Divisional Commissioner is satisfied that the infructuous
expenditure could not be forestalled.