Preparations and Sanctioning of Rent Statements

279. The Divisional Engineer is responsible for attaching to all estimates in connexion with residential buildings for which rent statements are maintained whether those buildings are borne on the capital and revenue accounts or not, a provisional rent statement in duplicate if in accordance with Subsidiary Rule 20 C, Financial Handbook, Volume II, the execution of the work will necessitate revision of the standard rent. (See paragraphs 274, 282-A, 292 and 295). To enable him to prepare the revised rent statement the local officer should invariably attach a copy of the sanctioned rent statement to every estimate relating to a residential building. The Head of the Department will obtain the sanction of Government in the administerative department to the estimate but will sanction the provisional rent statement himself after it has been verified by the Accountant General. One copy of the provisional rent statement sanctioned by the Head of the Department will be sent to the Accountant General for information and the other will be returned to the local officer with the sanctioned estimate.

NOTE—Instructions for the preparation of rent statements and calculation of rent are contained in paragraph 281-A and Annexure B.

280. The local officer will be responsible for reporting to Head of the Department and to the Accountant General the date of the completion of the work, and for recovering rent from that date at the rate sanctioned in the provisional rent statement.

281. (a) When the accounts of the work have been closed the local officer will inform the Divisional Engineer of the actual cost of the work, and will supply him with any other information that he may required to enable him to prepare a detailed rent statement. This statement the Divisional Engineer will submit for sanction to the head of the Department, through the local officer concerned and the Accountant General.

(b) A record of the actual cost of additions and alterations to residential buildings should be maintained in Form no. 29-A. This record will enable the local officer to furnish the requisite information to the Divisional Engineer for preparation of a detailed rent statement in accordance with the instructions laid down under paragraph 282-A and subsidiary Rule 20-C, Financial Handbook, Volume II. A separate page should be allotted for each building and the register should be posted when accounts of a work of additions and alterations have been finally closed and not at the end of each year.

282. On receipt of the detailed rent statement sanctioned by the Head of the Department, the local officer will adjust with effect from the date of completion of the work, any differences between rent recovered on the provisional statement and rent due on the detailed statement. The revised standard rent should be entered in column 11 of the register of cost of additions and alterations in Form no. 29-A.

282-A. The following instructions are laid down for preparation of revised rent statements and for fixing the date from which the revised rent should be charged. Attention of the Divisional Engineer should be invited to these instructions, when he is required to prepare revised rent statement in respect of a residential building :—

(I) When by the execution of one work alone the capital value of a residential building is increased by Rs. 500 or by 1 per cent of the existing capital value (whichever is less)* the rent statement will be revised and for the purpose of deciding the rate of interest to be charged on the additional capital value, the work shall be regarded as having been carried out in that financial year in which the accounts of the work were closed. The revised rent, however, will take effect from the date on which the work was completed and was fit for use.

(II) When by the execution in one financial year of more than one work the capital value of a residential building is increased by Rs. 500 or by 1 per cent of the existing capital value (whichever is less) the rent statement will be revised and, for the purpose of deciding the rate of interest to be charged on the additional capital value, several works shall all be regarded as having been carried out in that financial year in which the accounts of the last work were closed. The revised rent, however, will take effect from the date on which the last of the several works was completed and was fit for use.

(III) If in any financial year the rent has been revised in accordance with (I) or (II) above and if another work is carried out, and the accounts closed in that financial year, the rent need not be revised again in that year unless the capital expenditure on the last estimate exceeds Rs. 500 or 1 per cent of the existing capital value,

*See Subsidiary Rule 20-C, Financial Handbook, Volume II.

whichever is less. If the rent is not revised according to this clause, the expenditure on the last estimate will be taken into account when the occasion for revision of rent next arises in accordance with subsidiary Rule 20-C.

(IV) In all cases a work shall be regarded as having been completed in that financial year in which accounts are closed, but if a building is actually occupied prior to closing the accounts of expenditure, rent is to be charged from the date of occupancy. Where, however, the revision of rent of a residence is necessitated by the execution of additions and alterations during occupation of the building the revised rent shall have effect from the date on which the work is completed and is fit for use.

This date is to be fixed by the Head of the Department.

(V) Whenever the necessity for revision of the rent arises, whether because of major additions and alterations or expiry of the quinquennium, all expenses on additions and alterations, both major and minor incurred up to the time of revision, should be taken into account in revising the rent. (Also see the instructions contained in Annexure B).

(VI) Unless the register referred to above shows that the capital expenditure in one year has been more than Rs. 500 or 1 percent of the existing capital value (whichever is less), the rent shall only be revised on the expiry of five years from the date from which the last revision takes effect.

(Explanatory Note—Under this rule it would be possible for alterations and additions valued at Rs. 499, or say, 0.99 percent of the existing value, to be carried out in each of four successive years without revision of the rent).

(VII) The period of five years during which a rent statement is valid [unless revision is required under (I) or (II) above] will commence from the date from which the sanctioned rent takes effect.

NOTE—Register in Form no. 29-A is to be maintained by all civil departments except the Public Works Department for which a separate form has been prescribed.