CONTENTS - Central Public Works Department

158 SECTION 21
Note: Cash that has actually been received or recovered from the contractor’s bill(s) may be converted
even though the full amount of the deposit, which is being paid in installments, has not yet been
realised.
(3) The percentage deductions for security deposit made from contractor’s bills should be credited to
the Minor Head “Public Works Deposits - Cash Deposits of Contractors”.
21.4 Repayment/Retransfer of Security Deposit
No security deposit should be repaid or re-transferred to the depositor, or otherwise disposed off,
except in accordance with the terms of his agreement or bond. See also para 34.4(3).
Note: The depositor’s acknowledgement should be obtained in all cases of security that is returned.
When an interest bearing security is returned or re-transferred, the acknowledgement should set
forth the full particulars of the security.
21.5 FDR’s as Security Deposit
(1) Since Fixed Deposit Receipts (FDR’s) are not Government securities, there is no objection to
their being accepted even if the period for the completion of the work is less than one year. It is
further clarified that the Fixed Deposit Receipts should be accepted as security even if it does not
cover the stipulated period/extended period, defect liability period.
(2) The Fixed Deposit Receipt tendered by the State Bank of India or any of the Scheduled Banks is
acceptable as security. There is, therefore, no objection to the investment by the Divisional Officers
of the amount of security, deducted from the running bills of the contractors in Fixed Deposit
Receipts of the State Bank of India or any of the Scheduled Banks at the request of the contractor.
(3) It may, however be seen that the Fixed Deposits Receipt is made out in the name of “The Executive
Engineer, ……………. Division” concerned.