CONTENTS - Central Public Works Department

SECTION 45
SECTION 45
LOSSES ON STORES AND THEIR WRITE OFF
45.1 Unserviceable stores
(1) When stores of any kind become unserviceable, a report thereof should be made in Form no.
CPWA 18. This should be done at once on discovery of the facts.
(2) In case of survey reports of stores valued above the powers of acceptance of the Chief Engineer,
the certificate that materials proposed to be survey reported are really unserviceable should be
recorded by the Superintending Engineer concerned after inspection of the stores. In the case of
survey reports below this amount which are within the competence of Chief Engineer, the certificate
should be given by the Executive Engineer, while in the case of survey reports within the competence
of Superintending Engineer, the certificate should be given by the Assistant Engineer concerned.
45.2 Losses of stock
(1) All losses of stock should be immediately reported to the next higher authority as well as to the
Audit Officer and the Accounts Officer even when such loss has been made good by the party
responsible for it. Petty cases involving losses need not be reported to the Audit Officer/Accounts
Officer unless there are some important features which need detailed investigation and
consideration. The losses on stock should be immediately investigated and steps taken to obtain
the sanction of the competent authority for their write off, if necessary.
(2) In the case of serious losses, the Divisional Officer should hold a departmental enquiry and record
the evidence and his findings thereon, including findings as regards the responsibility and culpability
of the persons concerned.
45.3 Losses relating to DGS&D contracts
(1) The procedure regarding write off of irrecoverable losses relating to contracts placed by the
Directorate General of Supplies and Disposals is explained below:
(i) In respect of purchase and inspection of stores arranged through the DGS&D, Inspection
Wing of Supplies and Disposals Directorate act as agents who utilize their services. The
gains or losses, if any, are to go to the indentor’s account and money, if any, accruing by way
of compensation, liquidated damages, etc. are credited to the indentor concerned. Similarly
losses too, if any, arising out of such contracts are also debitable to the indentor.
(ii) On their part, the DGS&D take care to avoid losses. They investigate all such cases and
take steps to recover loss, if any, as far as possible. They take appropriate departmental
action against the defaulting officers, if it is found that loss has been caused by delinquency
on their part.
(iii) If, however, it is not possible to recover a loss, it is debited to the indentor.
(iv) Sanction letters are issued by the DGS&D within his powers in any individual case, and
beyond this limit, by the Department of Supply. The head of account to which the loss is
debitable is indicated in the sanction letter.
(v) Such sanctions enable the Audit Officer of the DGS&D:
(a) to regularise the amounts recovered and kept under objection in his books.
(b) to make payments to the suppliers of the amounts withheld from their bills, and
(c) to raise debits for the amount involved against the Accounts Officer of the indentor/consignee.
(d) A copy of the sanction letter is also endorsed to the indentor/consignee, who is to issue a
similar sanction for writing off such losses to regularise his stores accounts.
(2) It is not open to the indenting Ministry to raise the question of the liability for the loss once the
Associated Finance of the Department of Supply has accepted that there is no escape from the
loss. There is, however, no objection to the indenting Ministry being associated in the matter of
departmental action to be taken against the delinquent officials.
257