CONTENTS - Central Public Works Department

70 SECTION 10
(2) With the exception noted below, any loss or shortage of public moneys, departmental revenue or
receipts, stamps, stores or other property held by or on behalf of Government, caused by defalcation
or otherwise including losses and shortage noticed as a result of physical verification, shall be
immediately reported by the Divisional Officer through his Superintending Engineer to the Chief
Engineer concerned. The Executive Engineer should simultaneously endorse a copy to Audit.
The Chief Engineer of the Zone shall forward the same with his recommendations to the Director
General (Works)/Additional Director General for onward transmission to the Ministry of Urban
Development. Petty cases need not be reported to the Audit/Ministry.
(3) If the irregularity is detected by the Audit Officer/Accounts Officer in the first instance, he shall
report it immediately to the Executive Engineer concerned, and if he considers it necessary, to the
Ministry as well. The Accounts Officer shall send his report through the Audit Officer concerned.
(4) All cases involving loss of Government money arising from erroneous or irregular issue of cheques,
or irregular accounting of receipts and circumstances leading to the loss should also be reported
to the Controller General of Accounts so that he could take steps to remedy the inadequacies in
rules or procedures, if any, connected therewith, which might have been exploited to facilitate the
perpetration/occurrence of the act/event.
(5) The report must be submitted as soon as suspicion arises that there has been a loss. It must not
be delayed while detailed enquiries are being made. When the matter has been fully investigated,
a further and complete report should be submitted of the nature and extent of the loss, showing the
errors or neglect of the rules by which such loss was rendered possible, and the prospects of
effecting recovery.
(6) The report shall be submitted with such comments, as may be necessary or expedient, on the
causes or circumstances which led to the defalcation or loss, the steps taken to prevent its
recurrence, and the disciplinary or any other action proposed as regard to the persons responsible.
(7) When material losses due to suspected theft, fraud, fire etc. occur in any office/installations, such
cases should immediately be reported to the Audit Officer/Accounts Officer/Principal Accounts
Officer concerned, and higher officer of the Department. Such cases should be invariably reported
to the Police for investigation. The Head of the Department should exercise his discretion in
determining at what stage the report should be sent to the Police, keeping in view the fact that the
Police investigation will be increasingly handicapped with lapse of time.
(8) All losses of the assessed value of Rs. 10,000 and more shall be regarded as “Material losses”
excepting the losses due to suspected sabotage. All cases of suspected sabotage should be
reported to the Police promptly, irrespective of the value of the loss involved.
10.8.2 Cases that need not be reported
(1) Cases involving loss of revenue due to:
(a) mistakes in assessments which are discovered too late to permit a supplementary claim being
made.
(b) under assessments which are due to interpretation of the law by the local authority, being over
ruled by higher authority after the expiry of the time limit prescribed under the law, and
(c) refunds allowed on the ground that the claims were time barred, need not be reported to the
Audit Officer and Accounts Officer. A record should, however, be kept of such cases for
examination by the Audit Officer and the Accounts Officer at the time of local inspections.
(2) Petty cases need not be reported to the Audit Officer and the Accounts Officer.
10.8.3 Follow-up action on losses – write-off of losses
(1) The Principal Accounts Officer of the Ministry shall ensure that the cases are properly pursued
and investigated by the authorities concerned. In cases of loss or shortage being due to inadequacies
of prescribed procedure, remedial action to amend the procedure should be suggested promptly