GOVERNMENT OF ANDHRA PRADESH

ABSTRACT

Misappropriation cases –Recovery of misappropriated amount –
Amendment to Article 300 of A.P. Financial Code, Volume-I - Orders – Issued.
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FINANCE (TFR.I) DEPARTMENT

G.O.Ms.No.33 Date.09-02-2006

Read the following:-

1.G.O.Ms.No.25, General Administration (Ser.C) Dept., dt.3-2-2004.

2. U.O.Note No.96116, G.A.(VC.H1) Dept., dt.27-7-2005.

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ORDER:

In the reference 1 st read above, consolidated instructions were issued to plug loopholes in the management of Government money giving clear and comprehensive instructions on all aspects of misappropriation cases.

Articles 5, 273, 294, 300, 301 and 302 of A.P. Financial Code, Volume-I lays down the responsibilities of Government servants in dealing with Government money, the procedure to fix responsibility for any loss sustained by the Government, the procedure to be followed and the action to be initiated for recovery. 

In the reference 2 nd read above, the Vigilance Commissioner has stated that, it has come to their notice that in many cases, misappropriation / loss to Government / wasteful expenditure are noticed and disciplinary action initiated. At the conclusion of the disciplinary proceedings, whatever punishment is being imposed, with it the amount of loss as determined in the inquiry is being collected from the guilty officers. Collecting the loss amount alone does not appear to be enough. Recovery in cases of misappropriation / waste of Government money in collusion with parties or with malafide intention or with carelessness, is not enough deterrent to the guilty officers. The recovery in cases where ordered, should be either double the amount of the misappropriation or at least with interest which would be a penal element, not at current bank rate but at a rate higher i.e., may be @ 10% p.a. on the amount ordered to be recovered, so that the illegal benefits obtained by the persons concerned are not retained by him.

Government after careful consideration of the matter, decided that recovery from the Government servant for the losses by misappropriation of Government money shall be, recovery of the misappropriated amount / loss caused at bank rate as fixed by RBI + 2% (This is actual cost of funds for State Government). The loss / misappropriation shall be determined by the disciplinary authority as per rules, and the recovery proposed is at the cost of funds for the Government and it may not be punishment. Accordingly, the following amendment is issued to the A.P. Financial Code, Volume-I.

This order is also available on the A.P. Government Website and can be accessed at www.aponline.gov.in .

AMENDMENT

In the said code, in Article 300, after Clause 4 (c) the following shall be added, namely:-

“(d) Recovery from the Government servant for the losses by misappropriation of Government money shall be, recovery of the misappropriated amount / loss caused at bank rate as fixed by RBI + 2% (This is actual cost of funds for State Government). The loss/ misappropriation shall be determined by the disciplinary authority as per rules, and the recovery proposed is at the cost of funds for the Government and it may not be punishment.”

(BY ORDER AND IN THE NAME OF THE GOVERNOR OF ANDHRA PRADESH)

P. RAMAKANTH REDDY

SPECIAL CHIEF SECRETARY TO GOVERNMENT

To

All Departments of Secretariat.

All Heads of Departments.

All District Collectors.

The Director General, Anti Corruption Bureau, Hyderabad.

The Secretary, A.P.Public Service Commission, Hyderabad.

The Vigilance Commissioner, A.P.Vigilance Commission, Hyderabad.

The Registrar, A.P.Administrative Tribunal, Hyderabad.

The Registrar, High Court of Andhra Pradesh, Hyderabad.

The Commissioner, I. & P.R., Hyderabad.

The Principal Accountant General (Audit.I), A.P., Hyderabad.

The Accountant General (Audit.II), A.P., Hyderabad.

The Accountant General (A&E), A.P., Hyderabad.

The Law (E) Department.

SF/SC's.