Motor Car and Jeep etc.
245. The Government, a Secretary to Government, a Head of Department and a District and Sessions Judge may sanction an advance for the purchase of a motorcar, a jeep or a land rover to a Government servant when they consider that it is required for the convenient transaction of Government business and possession of the conveyance which he will use for transaction of Government business will add to the efficiency of the Government servant concerned.
(Correction Slip no. 25, dated March 26, 1983).
[Vitta (Lekha) Anubhag-1, File no. 15 (4)/75].
NOTE(1) In paragraphs 245, 245-A to 245-N "motor-car" is also to be taken as covering a motor boat.
Note(2) Advance for the purchase of a Motor Car may be sanctioned to the Government servants whose basic pay is Rs. 1,500 or more.
(C. S. No. 63 dated August 4, 1986.)
[Vitta (Lekha) Anubhag-1, File No. 15(4)/75].
245-A. The total amount to be advanced to a servant shall not exceed Rs. 60,000 or twenty four months pay or the anticipated price of the motor car, whichever is least, If the actual price is less than the advance taken, the balance must be refunded to the Government immediately.
C. S. no. 59, dated July 18, 1986
[Vitta (Lekha) Anubhag-1 File no. 15 (4)/75]
NOTEFor the purposes of an advance drawn in England in respect of a motor-car, "actual price" will also include, in cases in which the advance drawn included estimates of these charges, the amount of freight actually paid on the car up to an Indian port, the cost of its insurance during the voyage and the customs duty paid in India.
245-C. (1) A Government servant who is on leave or about to proceed on leave for whom an advance has been approved by the Government will not be allowed to draw the advance earlier than a week before the expiry of the leave but a Government servant who is on leave out of India or about to proceed on leave out of India will be allowed to take it from the High Commissioner six weeks before his departure for India.
(2) A servant taking an advance from the High Commissioner within six weeks of his departure for India under clause (1), may include in the amount of the advance required charges separately estimated on account of freight on the motor-car to an Indian port and of the customs duty thereon payable in India, as also the cost of its insurance during the voyage. In the case of a Government servant who purchases a car in Europe prior to six weeks of his departure back to India, no advance will be allowed to be drawn in England, but on bringing the car into India such an officer may apply for an advance to cover the price of the car as valued on landing in India for customs purposes (which will include the freight), and the cost of insurance, plus the customs duty paid on the car. The customs receipt should be produced in both cases.
NOTEA Government servant, who purchases a car in Europe prior to six weeks of his department back to India and who does not hold a post for which a motor-car has been definitely recognized by the Government to be necessary, should if he proposes to apply for an advance on return to India, inform the Government of his intention and obtain their consent before he brings a car to India.
245-D. Recovery of an advance will be made by deducting monthly instalments equal to one ninety-sixth part of the advance actually drawn and utilized on the purchase of a motor-car from the pay bill of the Government servant concerned. It will commence with the first issue of pay after the advance is drawn. The amount of the advance to be recovered monthly should be fixed in whole rupees, except in the case of the last instalment when the remaining balance including any fraction of a rupee should be recovered. The amount of interest calculated in accordance with note 2 to paragraph 242 will be recovered in one or more instalments, each such instalment being not appreciably greater than the instalments by which the principal was recovered. The recovery of interest will commence from the month following that in which the whole of the principal has been paid.
NOTEThe authority sanctioning an advance may, however, permit recovery to be made in a smaller number of instalments if the officer receiving the advance so desires.
245-E. A motor-car purchased with an advance must be hypothecated to the Government.
245-F. A motor-car purchased with an advance must be insured. Insurance must be complete cover against loss or damage by fire, theft or accident, when the car is in use and accordingly insurance on owner driven terms is not valid. Insurance policies at a reduced rate of premium shall, however, be accepted as adequate in cases where
(a) the owner of the car undertakes to meet the first Rs. 50 or so of a claim preferred against an insurance company in the event of an accident, or
(b) the car is not insured against accident for any seasons of the year during which it is not in use but is stored in a garage.
Insurance must also be continued throughout the period of an advance, the amount for which a car is insured at any time being not less than the outstanding balance of the advance at that time with interest accrued from the beginning of the period. If, at any time, for any reason the amount insured under a current policy is less than the outstanding balance of the advance, including interest already accrued, the Government servant will be required to refund the difference to the Government. The amount to be refunded in such a case will be recovered in not more than three monthly instalments. Failure to ensure a car or to renew the insurance policy in time will render the Government servant liable to refund the entire outstanding balance of the advance, with interest due thereon, at once.
NOTEThe Accountant General accepts such evidence, as he consider adequate to show that a motor-car has been sufficiently insured within the specified period and that the insurance is regularly renewed at the proper time. He will bring to the notice of the Government any cases in which such evidence is not forthcoming.
245-G. Except when a servant proceeds on leave other than leave on average pay not exceeding four months or retires from service, or is transferred to a post the duties of which do not render the possession of a motor-car necessary, the previous sanction of the Government is necessary to the sale by him of a car purchased with the aid of an advance which with interest accrued in accordance with note 2, to paragraph 242, has not been fully repaid. If a servant wishes to transfer such a car to another servant who performs duties of a kind that renders the possession of a motor-car necessary, the Government may permit the transfer of the liability attaching to the car to the latter servant, provided that he records a declaration that he is aware that the car transferred to him remains subjects to the mortgage bond and that he is bound by its terms and provisions.
NOTEIn the case of Government servants recruited to the State specialist and subordinate services on or after January 1, 1936, the term "leave on average pay not exceeding four months" occurring in this rule shall be taken to mean "earned leave not exceeding 90 days."
245-H. In all cases in which car is sold before the advance received for its purchase from the Government with interest accrued in accordance with note 2 to paragraph 242 has been fully repaid the sale-proceeds must be applied, so far as may be necessary towards the re-payment of such outstanding balance. If the car is sold on the instalment system, the borrowing servant must repay in full the outstanding balance on receipt by him of the first instalment of the price : provided that when the car is sold in order that another car may be purchased, the Government may permit a servant to apply the sale-proceeds towards such purchase, subject to the following conditions ;
(a) The amount outstanding must not exceed the cost of the new car.
(b) The amount outstanding must continue to be repaid at the rate previously fixed.
(c) The new car must be insured and mortgaged to the Government as required by these rules.
245-J. An advance is not admissible to a Government servant proceeding on deputation out of India.
245-K. A servant may be allowed advances to purchase more than one car at a time if it can be shown that such action is clearly desirable in the public interest, and provided that the total amount outstanding at any one time by way of Such advances against a particular servant does not exceed the limit within which advances may be given.
245-L. Advances for the purchase of motor-cars to Government servants in foreign employ may be granted from the funds of the foreign employer; and when the employer desires to make such an advance, he should apply to the Government for sanction. The Government may grant sanction in such cases subject to the proviso that the advance should be regulated by the same conditions as would apply if the servant were serving directly under the Government. In special cases, however, where a Government servants services have been lent to a municipality whose financial position will not permit of the advance being made from its funds, the Government may, at their discretion, sanction an advance from the revenues of the State, provided the servants duties are such as to render the possession of a motor-car practically a necessity.
NOTEThe unrecovered portion of an advance for the purchase of a motor car granted to a Government servant from the funds of a foreign employer under paragraph 245-L.ibid, should be refunded by the Government servant direct to the foreign employer on his reversion from the foreign service. The Government servant concerned should make his own arrangements to remit the balance of the advance taken/interest due, etc. to the foreign employer direct by cheque/Bank Draft, and such recoveries should not be effected through pay bills etc. for remittance to foreign employer.
245-M. The order of sanction to an advance in India will be operative for a month only from the date of sanction.
245-N. The following procedure is prescribed for regulating the grant of such advances :
(1) An application must be made through the applicants departmental superior, who will record his opinion as to the necessity for the advance. The applicant must invariably submit a declaration to the effect that he has read the rules regulating the grant of such advances and will abide by them, and that, if he delays executing the mortgage bond or taking out insurance beyond the period mentioned in the rules, he is liable to re-pay the entire advance in one lump sum at once.
(2) The borrowing servant will execute an agreement in Form no. 25-A, at the time of preparation and presentation of his bill for the advance for payment and send it immediately to the Government direct. He must also record on the bill that the agreement has been executed and sent to the Sanctioning authority.
Correction Slip No. 87 Dt. 9-1-89
Finance (Account)Section-1 File no.15(4)/75
(3) The borrowing servant must purchase a motor-car with the advance, and the advance must in no circumstances be utilized in obtaining a car on the hire purchase or instalment system. He must also execute mortgage bond in Form no. 25 within one month which will be reckoned from the date of execution of the agreement. A servant drawing an advance in England must execute a personal security bond in the form prescribed by the Central Government at the time of drawing the advance.
Para 245-(N) (4) and Note (1)and (2) deleted vide Correction Slip No. 87 Dt. 9-1-89