All about 7th Central Pay Commission for Central Government Employees. Dearness Allowance for Government Employees, CENTRAL GOVERNMENT EMPLOYEES NEWS - DOPT, DOPT Orders, Expected DA & more.
Registration of New Public & Private Limited Companies for EPFO & ESIC now on MCA Portal
06 MAR 2020
As part of the ongoing efforts to improve India’s ranking in the Doing Business Report 2021, The Ministry of Labour & Employment has completed the reform to “Integrate process of registration for GST, EPFO, ESIC and Profession Tax for Maharashtra with company incorporation” in tandem with the MCA.
The reform has been completed by making the registration of new Public, Private Limited Companies and One Person Company for ESIC and EPFO mandatory through the Spice+ and AGILE-PRO eforms of MCA w.e.f., 15-02-2020. Registration for ESIC and EPFO for new companies as above has been stopped on Shram Suvidha Portal from 15.02.2020. A message to this effect is displayed on the Shram Suvidha Portal and the website of Ministry of Labour and Employment www.labour.gov.in as follows:
Registration for EPFO & ESIC for new Public& Private Limited Companies and One Person Company has been stopped on Shram Suvidha Portal from 15.02.2020.
With effect from 15.02.2020, new Public& Private Limited Companies and One Person Company shall get registration number for EPFO & ESIC on MCA portal (www.mca.gov.in) through Spice + and AGILE-PRO eforms) only at the time of incorporation.
However, the above new companies will have to comply with the provisions of EPF & MP Act, 1952, and ESI Act, 1948 when they cross the threshold limit of employment under the respective Acts.
Whether MACP scheme entitles financial upgradation of pay to the next grade pay or to the grade pay of the next promotional post as envisaged under the ACP scheme
2. The instant batch of appeals have been filed assailing the orders of various High Courts dismissing petitions filed by the appellants, thereby upholding decisions rendered by different Benches of Central Administrative Tribunal granting financial upgradation of grade pay in the next promotional hierarchy by placing reliance upon Union of India and others v. Raj Pal and another CWP No.19387 of 2011 dated 19.10.2011. In these batch matters, we are concerned with the question whether MACP Scheme entitles financial upgradation to the next grade pay or to the grade pay of the next promotional hierarchy.
3. In all these appeals, almost all the High Courts have followed the Raj Pal and Ved Prakash’s case and granted relief as prayed for by the Being aggrieved, the appellant- UOI has filed these appeals.
4. The main questions falling for consideration in these appeals are:-
Whether MACP scheme entitles financial upgradation of pay to the next grade pay or to the grade pay of the next promotional post as envisaged under the ACP scheme? Whether MACP Scheme envisages grant of financial upgradation in Grade Pay Hierarchy and not in promotional hierarchy?
As contended by the respondents, whether MACP scheme is disadvantageous to the employees in comparison to ACP scheme as long as the financial upgradation is granted in hierarchy of grade pay under MACP scheme?
Whether respondents are entitled to stepping up of their grade pay to be at par with grade pay of their juniors who were getting the higher grade pay on account of implementation of MACP Scheme?
Appeals relating to Issue No.III were ordered to be de-tagged and listed separately.
5. At the outset, it is to be pointed out that almost all the Tribunals/High Courts have only relied upon Raj Pal’s case for grant of financial upgradation on promotional hierarchy and rejected the stand of the appellant-UOI that under MACP scheme, the employees are entitled to financial upgradation of the next grade pay only. Since the matter was considered on merits and since the issue involves impact on the public ex- chequer and also interest of the staff of various establishments, we requested learned Senior counsel, Mr. Jaideep Gupta to assist the Court as amicus curiae which the learned Senior counsel has readily Mr. Kunal Chatterji, learned counsel has agreed to assist the learned Senior counsel-amicus.
6. The Government of India with a view to “deal with the problem of genuine stagnation and hardship faced by the employees due to lack of adequate promotional avenues”, introduced the Assured Career Progression (ACP) Scheme with effect from 09.08.1999 vide its Office Memorandum dated 09.08.1999. To mitigate the hardship in cases of acute stagnation in a cadre or in an isolated post, it has been decided to grant two financial upgradations under the ACP Scheme to Group ‘B’, ‘C’ and ‘D’ employees on completion of 12 and 24 years of regular service. As per ACP Scheme, isolated post in Group ‘A’, ‘B’, ‘C’ and ‘D’ cadres which have no promotional avenues also qualify for similar benefits. The financial upgradations under the ACP Scheme is placement in the higher Pay Scale and financial benefits in the higher Pay Scale without regular promotion. Under the financial upgradation, grant of financial benefits under the ACP Scheme to the government servants concerned is on personal basis. Such financial upgradation neither amounts to regular promotion nor require creation of new post. Some of the salient features of the ACP Scheme are as follows:-
The ACP Scheme envisages merely placement in the higher pay- scale/grant of financial benefits (through financial upgradation) only to the Government servant concerned on personal basis and shall, therefore, neither amount to functional/regular promotion nor would require creation of new posts for the purpose;
Under the ACP Scheme, two financial upgradations shall be allowed to Group ‘B’, ‘C’ and ‘D’ employees on completion of 12 years and 24 years of his/her regular service. As per para 1 of Annexure-1 – conditions for grant of benefits under the ACP Scheme, it is stipulated that two financial upgradations would be available only if no regular promotion during the prescribed period (12 and 24 years) was granted to an employee. If an employee has already received one regular promotion, he/she would qualify for second ACP only on completion of 24 years of regular service. However, in case if two regular promotions have been received by an employee, no further benefit under the ACP Scheme would accrue in favour of the employee.
As per para 1 of the Office Memorandum dated 09.08.1999, the grant of financial upgradations under the ACP Scheme shall be subject to the conditions mentioned in the Annexure-I annexed thereon to the Office Memorandum dated 09.08.1999.
7. Para 8 of the Annexure provides that the financial upgradations shall be purely personal to the employee and would have no relevance to his/her seniority position. In other words, there would be no additional financial upgradations for the senior employee on the ground that the junior employee has got the higher pay scale under the ACP Scheme. Para No.12 of Annexure-I provides that the ACP Scheme contemplates merely placement on personal basis in the higher pay scale/grant of financial benefits only and shall not amount to actual functional promotion of the employees concerned. We may usefully refer to the relevant features of the ACP Scheme as stipulated in Annexure-I to the Office Memorandum dated 09.08.1999-Conditions for Grant of Benefits under the ACP Scheme, which reads as under:-
Conditions for grant of benefits under the ACP Scheme :-
1. The ACP Scheme envisages merely placement in the higher pay-scale/grant of financial benefits (through financial upgradation) only to the Government servant concerned on personal basis and shall, therefore, neither amount to functional/regular promotion nor would require creation of new posts for the purpose;
………
4. The first financial upgradation under the ACP Scheme shall be allowed after 12 years of regular service and the second upgradation after 12 years of regular service from the date of the first financial upgradation subject to fulfilment of prescribed conditions. In other words, if the first upgradation gets postponed on account of the employee not found fit or due to departmental proceedings, etc. this would have consequential effect on the second upgradation which would also get deferred accordingly;
………
8. The financial upgradation under the ACP Scheme shall be purely personal to the employee and shall have no relevance to his seniority position. As such, there shall be no additional financial upgradation for the senior employee on the ground that the junior employee in the grade has got higher pay-scale under the ACP Scheme;
……….
12. The proposed ACP Scheme contemplates merely placement on personal basis in the higher pay-scale/grant of financial benefits only and shall not amount to actual/functional promotion of the employees concerned. Since orders regarding reservation in promotion are applicable only in the case of regular promotion, reservation orders/roster shall not apply to the ACP Scheme which shall extend its benefits uniformly to all eligible SC/ST employees also. However, at the time of regular/functional (actual) promotion, the Cadre Controlling Authorities shall ensure that all reservation orders are applied strictly;
………”
8. ACP Scheme was replaced by Modified Assured Career Progression (MACP) Scheme which became operational with effect from 09.2008. The Sixth Central Pay Commission has recommended the adoption of MACP Scheme primarily to rectify the problems arising from inter-departmental disparities:-
ACP Scheme led to creation of certain disparities within the employees in different organisations/departments who were directly recruited in the same pay scale who received different financial upgradations under the ACP Scheme because of existence of different promotional hierarchical structure and different promotional pay scales in different organisations/ departments;
Another adverse consequence in the implementation of the ACP Scheme was that the benefit of a higher pay scale was not available if the next post in the hierarchy also existed in the identical pay scale.
9. In order to bring systematic changes in the existing scheme of ACP so that all employees irrespective of existing hierarchical structure in their organisations/cadre get the same benefit, MACP was recommended by the Sixth Central Pay Commission which was accepted by the Government with certain modifications vide its Office Memorandum dated 05.2009. Under the Sixth Central Pay Commission, revised pay structure has been implemented with effect from 01.01.2006; whereas benefits of ACP Scheme have been allowed till 31.08.2008. Vide Office Memorandum dated 19.05.2009, the Government of India introduced the MACP Scheme, in supersession of the ACP Scheme w.e.f. 01.09.2008. There shall be no change in distinction, classification or higher status on grant of financial upgradation under MACP as the upgradation is purely personal and merely placement in the next higher Grade Pay.
Modified Assured Career Progression (MACP) Scheme:-
10. Under the MACP Scheme, three financial upgradations are made available in the next grade pay to an employee who has completed 10, 20 and 30 years of regular service in the same post without getting any The benefit would be available at the next higher grade pay. Some of the salient features of the MACP Scheme are as follows:-
Para 2 of the MACP Scheme provides that the “MACP Scheme envisages merely placement in the immediate next higher grade pay in the hierarchy of the recommended revised pay bands and grade pay”.
As per para 10 of the MACP Scheme – Office Memorandum dated 19.05.2009, no stepping up of pay in the pay band or grade pay would be admissible with regard to junior getting more pay than the senior on account of pay fixation under the MACP Scheme.
As per para No.11 of the said memorandum dated 19.05.2009, the differences in pay scales on account of financial upgradations under the ACP Scheme and MACP Scheme would not be construed as anomaly.
11. Para (19) of MACP Scheme contemplates merely placement on personal basis in the immediate higher grade pay / grant of financial benefits only and shall not amount to actual/functional promotion of the employees concerned. As per para (20) of the MACP Scheme, financial upgradations shall be purely personal to the employee and shall have no relevance to the seniority position. As such, there shall be no additional financial upgradation for the senior employees on the ground that the junior employees in the grade have received higher grade pay under MACP Scheme. We may usefully extract the relevant portion of Annexure-I of the Office Memorandum dated 19.05.2009, which reads as under:-
ANNEXURE-I
MODIFIED ASSURED CAREER PROGRESSION SCHEME (MACPS)
There shall be three financial upgradation s under the MACPS, counted from the direct entry grade on completion of 10, 20 and 30 years service Financial upgradation under the Scheme will be admissible whenever a person has spent 10 years continuously in the same grade-pay.
The MACPS envisages merely placement in the immediate next higher grade pay in the hierarchy of the recommended revised pay bands and grade pay as given in Section 1, Part-A of the first schedule of the CCS (Revised Pay) Rules, Thus, the grade pay at the time of financial upgradation under the MACPS can, in certain cases where regular promotion is not between two successive grades, be different than what is available at the time of regular promotion. ln such cases, the higher grade pay attached to the next promotion post in the hierarchy of the concerned cadre/organisation will be given only at the time of regular promotion.
…………
17. The financial upgradation would be on non-functional basis subject to fitness, in the hierarchy of grade pay within the PB-1.Thereafter for upgradation under the MACPS the benchmark of ‘good’ would be applicable till the grade pay of Rs. 6600/- in PB-3. The benchmark will be ‘Very Good’ for financial upgradation to the grade pay of Rs. 7600 and above.
19. The MACPS contemplates merely placement on personal basis in the immediate higher Grade pay /grant of financial benefits only and shall not amount to actual functional promotion of the employees Therefore, no reservation orders/roster shall apply to the MACPS, which shall extend its benefits uniformly to all eligible SC/ST employees also. However, the rules of reservation in promotion shall be ensured at the time of regular promotion. For this reason, it shall not be mandatory to associate members of SC/ST in the Screening Committee meant to consider cases for grant of financial upgradation under the Scheme.
………….
25. If a regular promotion has been offered but was refused by the employee before becoming entitled to a financial upgradation, no financial upgradation shall be allowed as such an employee has not been stagnated due to lack of opportunities. If, however, financial upgradation has been allowed due to stagnation and the employees subsequently refuse the promotion, it shall not be a ground to withdraw the financial upgradation. He shall, however, not be eligible to be considered for further financial upgradation till he agrees to be considered for promotion again and the second the next financial upgradation shall also be deferred to the extent of period of debarment due to the refusal.
……………”
12. Clause 28 contains illustrations as to grant of financial upgradation under MACP. The illustrations in Clause 28 of the Scheme can easily be understood by referring to the First Schedule, Part-A of Section 1 of Central Civil Services (Revised Pay) Rules, 2008 which gives a comparison of the scale of pay under the 5th Pay Commission and the 6th Pay Commission as under:- Download order:
GOVERNMENT OF INDIA (BHARAT SARKAR)
MINISTRY OF RAILWAYS (RAIL MANTRALAYA)
(RAILWAY BOARD)
RBE No.29/2020
No. F(E)HI/2005/PN1/35
New Delhi, Dated : 04.o3.2020
The GMs/ Principal Financial Advisors,
All Zonal Railways/ Production Units,
(As per mailing list)
Subject: Counting of service on joining new service in State Government / Central Government / Autonomous
Body for the benefit of gratuity in respect of Railway employees covered under National Pension System
(NPS).
A copy of Department of Pension & Pensioners’ Welfare (DOP&PW’s) O.M. No. 7/5/2012-P&PW(F)/B
dated 12th February, 2020 is enclosed herewith for compliance and guidance. These instructions shall apply
mutatis mutandis on the Railways also. Central Civil Services (Pension) Rules, 1972 correspond to the Railway Services (Pension)
Rules, 1993.
The Railway Board’s instructions corresponding to the DOP&PW’s instructions referred to in their
aforesaid O.M. dated 12th February, 2020 are given under :-
S. No.
DOP & PW’s instructions
Railway Board’s
corresponding instructions.
1.
O.M. No. 38/41/06 -P&PW(A) dated 05.05.2009
Letter No. 2008/ AC-II/21/19 dated
29.05.2009.
2.
O.M. No.7/5/2012 -P&PW(F)/B dated 26.08.2016
Letter No. 2012/ F(E)III/1(1)/4
dated 05.09.2016.
(G. Priya Sudarsani)
Director, Finance (Estt.)
Railway Board.
D.A.: as above
No. F(E)III/2005/PN1/35
New Delhi, dated: 04 . 03.2020.
Copy to Deputy Comptroller and Auditor General of India (Railways), Room No. 224, Rail Bhawan, New Delhi.
Ministry of Personnel, Public Grievances & Pensions
Premature Retirement
04 MAR 2020
As on 27.02.2020, based on the updated/ reconciled information/ data provided by various Ministries/
Departments/ Cadre Controlling Authorities (CCAs) on the Probity Portal operated by Department of Personnel
and Training, provisions of the Fundamental Rules FR 56(j) similar rules have been invoked against
163 Group ‘A’ officers, (including All India Services officers) and 157
Group ‘B’ officers during the period July, 2014 to January, 2020.
As per the provisions under FR 56(j), Rule 48 of Central Civil Services (CCS) (Pensions) Rules, 1972, and
Rule 16(3) (Amended) of All India Services (Death-cum-Retirement Benefits) Rules, 1958, Government has the
absolute right to retire Government officials prematurely on the ground of lack of integrity or
ineffectiveness, in public interest.
This information was provided by the Union Minister of State (Independent Charge) Development of North-
Eastern Region (DoNER), MoS PMO, Personnel, Public Grievances & Pensions, Atomic Energy and Space,
DrJitendra Singh in written reply to a question in Lok Sabha today.
Kendriya Vidyalayas School Admission Schedule for 2020-2021 - changes/modifications are effected in
KVS Admission Guidelines - KVS
KENDRIYA VIDYALAYA SANGATHAN
(Min. of HRD, Deptt. of Education, Govt. of India)
F.No.110331/01/2020/KVS(HQ)-Acad/9916-9948
03.03.2020
The Deputy Commissioner Kendriya Vidyalaya Sangathan
All Regional Offices
Subject : Intimation regarding admission schedule for the academic session 2020 - 2021 -
reg.
Madam/Sir,
With regard to the subject cited above, this is to say that KVS (HQ) is receiving number of queries
regarding. announcement of admission schedule for the academic session 2020-21 for admission in all Kendriya
Vidyalayas. In this connection, it is informed that some essential changes / modifications in KVS Admission Guidelines are under way. Therefore,
admission process shall be started after such changes/modifications are effected in KVS Admission Guidelines.
KVS will issue detailed instructions / guidelines very soon in this regard.
Ministry of Personnel, Public Grievances & Pensions
Implementation of RTI Act
04 MAR 2020
The Central Government is fully committed to implement the Right to Information (RTI) Act in respect of public authorities under it. Each State Government is
responsible for implementation of the Right to Information Act in respect of the public authorities in the
State concerned.
In respect of the Central Information Commissions, the appointment process has been conducted duly as and
when vacancies were required to be filled up and has not been at preliminary stage.
The Hon’ble Supreme Court vide its Order dated 16.12.2019 in M.A. No. 1979 of 2019 in WP (C) No. 436 of
2018: Ms Anjali Bhardwaj & Others Vs. Union of India and Others pertaining to fill up the vacancies in
Central Information Commissions, has inter-alia directed that the Government complete the process of
appointment in 3 months.
The process has reached an advanced stage for appointment of the Chief Information Commissioner and one
Information Commission in Central Information Commission.
This information was provided by the Union Minister of State (Independent Charge) Development of North-
Eastern Region (DoNER), MoS PMO, Personnel, Public Grievances & Pensions, Atomic Energy
and Space, Dr Jitendra Singh in written reply to a question in Lok Sabha today.
Lokpal Complaint Rules, 2020 - section 59 of the Lokpal and Lokayuktas Act, 2013 (1 of 2014), the Central
Government hereby makes the following rules - DoPT
MINISTRY OF PERSONNEL, PUBLIC GRIEVANCES AND PENSIONS
Department of Personnel and Training
NOTIFICATION
New Delhi, the 2nd March, 2020
G.S.R.148(E).- In exercise of the powers conferred by section 59 of the Lokpal and
Lokayuktas Act, 2013 (1 of 2014), the Central Government hereby makes the following rules, namely:-
1. Short title and commencement. - (1) These rules may be called the Lokpal (Complaint)
Rules, 2020.
(2) They shall come into force on the date of their publication in the Official
Gazette.
2. Definition. - In these Rules, unless the context otherwise requires -
(a) “Act” means the Lokpal and Lokayuktas Act, 2013 (1 of 2014);
(b) “offence” means an offence
punishable under the Prevention of Corruption Act, 1988 (49 of 1988);
(c) words and expressions used and
not defined in these rules, but defined under the Act shall have the same meaning as respectively assigned to
them under the Act.
3. Form and manner of complaint. - (1) For the purposes of clause (e) of sub-section (1) of
section 2 of the Act, a complaint shall be filed in the form appended to these rules as Annexure.
(2) A complaint shall be filed in any of the following manner, namely: -
electronically, in the manner, as laid down by the Lokpal; or
by post; or
in person:
Provided that where the complaint is filed electronically, the hard copy thereof shall be required to be
submitted to the Lokpal within a period of fifteen days from the date of filing:
Provided further that the Lokpal shall not keep the said complaint, received electronically, as pending, if
the same is complete in all respects.
(3) A complaint shall contain the details of allegations about commission of an offence committed by the
public servant:
Provided that no complaint shall be filed against the public servant under the Army Act, 1950(45 of 1950) or
the the Navy Act, 1957 (62 of 1957) or the Air Force Act, 1950 (46 of 1950) or the Coast Guard Act, 1978 (30
of 1978), as the case may be.
(4) A complaint may ordinarily be made in English:
Provided that the Lokpal may also entertain a complaint in any of the languages referred to in the Eighth
Schedule to the Constitution.
(5) The following shall be required to be annexed with the complaint, namely: –
copy of the identity proof as specified in the form of complaint;
registration or incorporation certificate of the organisation, on whose behalf the complaint is being
made, if it is a board, body, corporation, company, limited liability partnership, authority, society,
association of persons or trust; (c) copy of authorization certificate in favour of the signatory if the
complaint is being made on behalf of the board, body, corporation, company, limited liability partnership,
authority, society, association of persons or trusts;
an Affidavit in the form as specified in the Part D of the Annexure; and
duly signed detailed statement making out the allegation.
(6) The complaint filed against a public servant referred to in clause (a) of sub-section (1) of section 14
of the Act, shall be decided by the full bench referred to in sub-clause (ii) of clause (a) of sub-section
(1) of section 14, in the first instance, at the admission stage
(7) The complaint filed against a public servant referred to in clauses (b) and (c) of sub-section (1) of
section 14 of the Act shall be decided by the bench as referred to in sub-section (3) of section 20 of the
Act, in the first instance, at the admission stage.
(8) The Lokpal may seek such other information or affidavit relating to a complaint, as it deems fit.
4. Handling form(s) of complaint. - The Lokpal may process a complaint in the following
manner, namely:-
(a) protect the identity of the complainant or the public servant complained against till the conclusion of
the inquiry or investigation:
Provided that the protection, shall not be applicable, in cases where the complainant himself has revealed
his identity to any other office or authority while making a complaint to the Lokpal;
(b) protect the integrity of the process of inquiry or investigation;
(c) dispose of the complaints, in limine, under the following conditions, namely:-
where the contents of the complaint are illegible;
where the contents of the complaint are vague or ambiguous;
where the contents of the complaint are trivial or frivolous;
where the complaint does not contain allegation against a public servant;
where the complaint is not filed within the period of limitation under section 53 of the Act; and
where the cause of the complaint is pending before any other Court or Tribunal or Authority.
(d) the Lokpal shall dispose of the complaints satisfying the conditions as contained in clause (c) above
within a period of thirty days.
GOVERNMENT OF INDIA (BHARAT SARKAR)
MINISTRY OF RAILWAYS (RAIL MANTRALAYA)
(RAILWAY BOARD)
No. D-43/12/2018-F(E)III
New Delhi, Dated : 03.03.2020
The GMs/ Principal Financial Advisors,
All Zonal Railways/ Production Units,
(As per mailing list)
Subject: Coverage under Railway Services (Pension) Rules, 1993, in place of National Pension System, of those Railway employees whose selection for appointment was finalized before 01.01.2004 but who joined Railway service on or after 01.01.2004.
A copy of Department of Pension & Pensioners’ Welfare (DOP&PW’s) O.M. No. 57/04/2019-P&PW(B) dated 171 h February, 2020 is enclosed herewith for compliance and guidance. These instructions shall apply mutatis mutandis on the Railways also. Central Civil Services (Pension) Rules, 1972 correspond to the Railway Services (Pension) Rules, 1993. The Department of Economic Affairs, Ministry of Finance’s Notification No. 5n/2003-ECB &PR dated 22.12.2003, mentioned in the DOP&PW’s O.M. dated 17.02.2020, has been circulated on Railways vide this office’s letter No. F(E)III/2003/PN 1/24 dated 31.12.2003.
Similar to the amendments made in the Central Civil Services (Pension) Rules, 1972 and other connected rules, as mentioned in para 1 of the DOP&PW’s O.M. dated 17.02.2020, the Railway Services (Pension) Rules, 1993 and other connected rules were also amended vide Notification No. F(E)III/ 2003/PN1/38 dated 30.12.2003.
Further, separate instructions with respect to para 9 of the DOP&PW’s O.M. dated 17.02.2020 will be issued by the Accounts Directorate for accountal of the corpus available in the NPS account of the railway servant.
Controller General of Defence Accounts
Ulan Batar Road, Palam, Delhi Cantt- 110010
AN/XI/11206/SA/PR/FR-56(J)/2019
Dated: 02.03.2020
To
All PCsDA/PCA (Fys)/CsDA
(Through CGDA Website)
Subject: Strengthening of administration-Periodic review of Central Government Employees under
Fundamental Rule (FR) 56(j)/(1) and Rule 48 of CCS (Pension) Rules,1972.
Please refer to this HQrs office circular bearing No. AN/XI/11206/e-Suchna/2019 dated 21.01.2020 under which
periodicity and due date for receipt of the subject report along with other directions was circulated for
strict compliance.
Instructions exist on the need for periodical review of performance of Government servants with a view to
ascertain whether the Government servant should be retained in service or retired service in the public
interest. Provisions in this regard are contained in FR 56(j), FR 56(l) and Rule 48(1) (b) of CCS (Pension)
Rules, 1972. Besides, the detailed guidelines on the above subject are already in public domain at
http://dopt.gov.in under 'Notification' -'OM & Orders'- Establishment- Premature Retirement. However,
copies of DOP&T O.M. No 25013/1/2013-Estt (A) dated 21.03.2014, No.25013/01/2013-Estt.A-IV dated
11.09.2015 and MOD, D (lab) Branch ID No 26(1)/2015-D (Lab) dated 30.05.2016 are enclosed herewith for
guidance and taking an appropriate action with reference to orders on the subject.
It is also re-iterated that project e-Suchna has been launched with an objective to introduce paperless
reporting system. In order to achieve this objective, it is once again requested that the reports, (i)
Strengthening of administration - Periodic review of Central Government Employees under Fundamental Rule (FR)
56(j)/(l) and Rule 48 of CCS(Pension)Rules, 1972. (ii) Review of mechanism to ensure probity among Government
servants (iii) Periodical review of Performance of Government servant as per the provision of FR 56(j), FR
56(l) and Rule 48(1) of CCS (Pension) Rules, 1972 and (iv) Representation of Women Members on the various
Committees/ Boards concerned with selection of Posts in Central Government, may strictly be rendered through
e Suchna portal only. Rendition of hard copy/ Fax copy may be discontinued.
TERMS AND CONDITIONS OF ENLISTMENT OF ITEMS AND PURCHASE ORDERS FOR SUPPLY OF ITEMS TO CANTEEN STORES
DEPARTMENT
The terms and conditions of enlistment of items and purchase order for supply of items to Canteen Stores
Department are as under :-
1. Enlistment of Items:
(a) The primary objective of CSD is to "Provide consumer goods of High Quality to the troops wherever they
are at a price cheaper than the prevailing market rates. Accordingly, items are introduced / enlisted in CSD
inventory range based on popularity and quality. The terms and conditions as mentioned in the introduction
form are applicable for all suppliers.
(b) Any Firm dealing with CSD should either be a manJfacturer or brand owner or all India sole selling agent
for both CSO and Civil Trade.
2. Purchase Orders:
(a) All Purchase Orders placed by General Manager CSD, or Officers authorized by General Manager, CSD are
placed on behalf (If the President of India.
(b) Mere enlistment of items in CSD does not guaran:ee placement of purchase orders of any specified
quantity. Purchase Orders are placed as per requirement / demand of Unit Run Canteens/ entitled customer:3,
which is subject to various factors like budget availability, storage space constraints, seasonal variations,
sales trend , denials, customer preferences, bank guarantee availability, and overall sufficiency.
(c) Purchase Orders are placed on monthly or on requirement basis from time to time.
3. Supply Terms
Firms will supply approved items from approved sources of supply at at rates and terms as ratified by the
CSD.
4. Taxes
GST and other taxes as applicable and also approved / confirmed by CSD will be charged by the firms in the
Tax Invoice.
5. Delivery Terms
Terms of Delivery are F.O.R. destination (CSD Area Depots) as per allocation with Purchase Order unless
otherwise specified .
6. Initial Order
a) Initial order will be placed as per quantity approved by the Department
b) Delivery schedule of Initial Order wil l be 30 days from the date of ISSue of order. Validity of Initial
Order can be extended upto 30 days with 2% penalty at the discretion of department. In case of fa ilure to
supply item may be considered for deletion without notice.
c) All subsequent orders for new introduced items wi ll be placed as per PRGO considering sale / off take of
the item.
7. Bank Guarantee
a) All firms (except for those exempted from providing Bank Guarantee as per the laid down policy), will
submit Bank Guarantee of adequacy value to cover all stocks, pending order quantity and value of order to be
placed.
b) Initial order will be placed only on receipt of JPG image and Bank Guarantee (if applicable) valid for a
period of 3 years from any authorized Bank. BG will be received through normal Registered Post I Speed Post
only from the Bank. Thereafter the Bank Guarantee should be renewed for a period of 2 years at least three
months in advance before the expiry of the Bank Guarantee. In case of delay I failure orders and pending
payments will be stopped.
c) BG is required to be submitted within a period of 3 months from date of issue of introduction circular,
failing which item will be put up for deletion without further notice.
d) Firms granted exemption from BG will have to resubmit adequate BG in case they fai l to achieve the
minimum required turnover criteria in a financial year.
8. Return of Stores and Debit to Supplier
a) Stores can be returned only when cost of such stores is recovered by the department or new stores in lieu
of old is received from supplier.
b) In the event of any stocks against initial or subsequent orders remaining unsold, the department reserves
the right to return the stocks on freight to pay basis. The value of such stocks will be adjusted from
pending bills / Bank Guarantee. In case no response from firm regarding taking back of stores against which
debit note has already been recovered , concerned CSD Depot reserve the right to dispose off the product
including by destruction as per the departmental policy at the cost of the supplier.
c) Surplus stock of new introduction items at end of one year from date of receipt of initial supply of area
Depot will be debited to supplier and returned after recovery of debit note.
d) Any loss of GST in the process will also be debited to supplier.
9. Price Change
a) In case the price of the product has been reduced in the civil market the reduction will automatically be
applicable to such supp ies made to the
Department with effect from the date of reduction in the civil
market The differential amount will be debited to supplier account. In case reduction IS no! intimated by
firms in time, the difference in price from the date of reduction In civil market till date of implementation
in CSD will be recovered With penalty on such amount.
b) All price reductions will have retrospective effect as per the effective date established and all price
increases are with effect from the date mentioned in Price Increase Circular issued by CSD.
c) All orders will be executed at the existing rate mentioned on the orders till such time increase in price
applied for is approved by the Competent
Authority and implemented at the Area depots of the Department.
d) Regarding price reduction existing pending orders will be executed by firm at the reduced rate from the
date from which the same are made effec tive by firm without awaiting prior approval from the Department
Firms Will ensure to intimate such downward revision by the fastest means te CSD HO so that exact amount of
price reduced could be verified and approval accorded by the Department.
e) Firms will neither seek apply for price increase nor will it be granted by the Department for at least
till one year after introduction of the item .
f) Price { Discount decided at the time of introduction is not norm211y reduced.
10. Quality
a) In case of any deviation in quality of the item or if the item is found substandard defective, liquidity
damages { penalty shall bE' levied as per
policy of the department and the item may be considered for
deletion. Entire stock of such item (except food items, which will be destroyed) will be back loaded to firm
on freight-to-pay basis and the amount shall be recovered by raising debit note. It will be mandatory on part
of the firm to in Gide all quality check parameters in the TDS including grade of the material & metals
used (e.g. copper, wire, thickness of an electric motor) for the manufacturing of the item, relevant Indian
standards and tests etc. failing which quality checks carried out as per available specification by the lab
will be treated as final.
b) The Department will be getting products tested from testing centers { laboratories periodically. In case
the item is found to be not confirming to the quality standards specifications as prescribed in Technical
Data Specification (TDS) { Bureau of Indian Standards (BIS) and { or otheL Government standards like Legal
Metrology, FSSAI Act {Rules FPO, Agmark etc. , as the case may be, necessary recovery towards the value of
the affected stocks at wholesale rates plus liquidity damages { penalty will be made as per the laid down
policy { procedure of the Department in vogue. The cost of samples and testing charges will be debited to
supplier.
11. Deletion
a) If the product does not pick up adequate demand as per norms laid down by the Department within a period
of two years commencing from the date of issuance of initial order post introduction, the item is liable to
be deleted.
b) In case of three consecutive failures to supply the item, the same can be considered for deletion.
c) Before deletion of an item due to deviation in quality terms or other reasons, a show cause notice, will
be issued to firm for reply within 30 d2Ys.
12. One to One Replacement
One to one replacement of the new items can be considered only after completion of one year from date of
initial order. Subsequent one to one replacement will be considered after completion of one year from earlier
one to, one replacement. While carrying out one to one replacement, it will be ensured that the items fall
within the same generic code with similar utility and relative ly similar pricing. No one to one replacement
will be permitted for item which has been identified for deletion or under quality complaint.
13. Shelf Life
All items with specified shelf life { Best before date shelf life items will be accepted as per policy: -
Total shelf life period of the item
Minimum Shelf
life at the time of acceptance of item at CSD Depots
1
Up to 6 months
75%
2
Above 6 months
70%
14. Government Levies
In case of Government exempting any levies, the department reserves the right to reduce the equivalent value
with effect from the date of implementation of Government order.
15. Delivery Schedule
a) The delivery period will be as per the purchase order. Normally no extension of delivery period is allowed
.
b) For HO orders delivery schedule will be 28 days and no consignment wi ll be accepted after expiry of
delivery schedule.
c) Penalty @2% will be imposed on concerned suppliers against non-delivery / part delivery of consignment
"
d) General Manager, being Competent Authority to place orders has full powers with regard to extension of
delivery schedule with 1 without imposition of penalty @2% in case of force majeure conditions like natural
calamities, strikes, riots , curfews, etc. as per merits of each case.
e) Any disputes regarding non-
delivery, late delivery, part delivery are to be addressed to the MS branch, CSD HO for examination and
disposal by
Competent Authority. GM CSD will be the final authority in 011 such cases .
f) In
case any item cannot be supplied due to val id reasons, the same has to be intimated before placement of
supply orders failing which penalty as applicable for non-supplies will be levied.
16. Special Market Survey
If at any given point of time special market survey is necessitated on account of the following
discrepancies, CSD shall be charging an amount of Rs.50,000/- (Rupees Fifty Thousand Only) per installation /
Depot
a) Rate variation .
b) Complaint against the product's quality / rate.
c) Non-extension of consumer promotion scheme to CSD which is available in civil market on the same
product.
d) Non-availability of CSD listed items in civil market
17. Other Conditions
a) Firms are not to supply the CSD enlisted items to any Defence Canteen including INCS either directly or
through your agents.
b) CSD rates will not be printed on carton/mono pack of the item and "For sale to CSD only" etc is also not
to be printed on items/case pack.
c) No middleman/agents will be appointed by firms to 100., after the interest of their products listed with
CSD. Any violation will lead to deletion of items from CSD range without notice.
d) In case the firm, directly or through the dealer appointed by firm , fails to render After Sales Service
within 45 days, the item will be replaced ex-stock and defective item back loaded to at firm's risk and
cost.
e) Any consumer promotion scheme (CPS) offered in the civil market directly or through stockist / dealers has
to be simultaneously offered to CSD and information thereof is to be sent in writing well in time. In case of
violation, recovery towards the value of the scheme/offer plus liquidity
damages/penalty will be made
as per the laid down policy/procedure of the Department in vogue. Persistent violation may also lead to
deletion of the
product as may be decided by the Competent Authority.
f) In case, at a later stage, any information given in the introduction form and connected papers is found
false with regards to the status of the firm and other details, the item will be deleted/penalty imposed.
g) CSD publishes a pictorial price list of all the listed item, on annual basis for which firms are to
forward two copies of photograph of their products immediately on receipt of the circular.
h) All products are to be "Bar Coded" and the same is to be intimated to the Department.
i) Firms will make good all losses suffered or likely to be suffered by the Department due to any deviations,
defective supplies and/or breach of any
terms and conditions contained herein, as well as those
contained in the information brochure supplied with the Introduction Form, and that firm will also be liable
for all costs and expenses incurred on any proceeding which the Department may have to institute against firm
in connection thereof.
j) No changes in product specification with regard to composition content, ingredients, carton , design ,
graphics, packing shelf life, etc. will be carried out by firm without approval of the Department.
k) The consignment wi ll be delivered at the destination Depot and loading / unloading charges will be borne
by suppliers.
l) Firms will send a list of C&F agents / dealers (Depot wise) for approval and circulation to CSD
depots.
m) Firm will ensure that supplies are executed from sources approved by Department, failing which firm shall
liable to be penalized .
n) It is to be ensured that Index No., Batch No. and expiry details are printed / affixed on the outer carton
to ensure easy identification / handing, as well as In voice.
18. Terms specific for Liquor Items
a) In case of any deviation in the specifications of the item or if the item is found to be substandard or
defective or has deviation in qUa1ity / quantity, liquidity damages plus penalty shall be levied as per the
policy of the department in vogue and the item may be deleted as per merit of the case. If the sample sent
for Lab test is declared unfit for CSD vending, the complete value of stock (at wholesale rate) of affected
batch plus 25%
penalty thereon will be debited to your account and recovered from pending bills.
b) In case of any defect in cap sealing (improper crimping), Ise of Inferior/substandard packing material,
second hand bottles and / or variation in alcoholic strength, leakage / shortage and breakages the necessary
recovery will be made from pending bills as per prevailing policy of the department.
c) The label of Liquor items will be registered with all State Excise Authorities wherever the same are
mandatory. In case the labels are not registered with any of the State Excise Auth orities, the Department
may not place further orders to the firm.
d) The unexecuted import permits will be returned to the depot's within 10 days, failing which penalty @18%
on Excise Duty paid on the permits will be levied.
19. Payment Terms
a) Payments against stocks received at CSD Depots will be re leased within a period of 60 days from date of
receipt subject to receipt of bills and requisite documents complete in all respects at CSD Head Office and
also no observations I amendments found thereof in the bills at CSD Head Office. The stipulated release is
also subject to availability of funds I budget with CSD.
b) No interest will be paid for delay in payments due to reasons whatsoever and no claim in this regard will
be accepted by the Department
c) Outstanding debits / credits will be adjusted from the bills of supply
20. GST Reconciliation Recoveries
Firms will ensure that there is timely reconciliation of bill / debits / credits with consignee Depots and in
case if any mismatches / recoveries from CSD on account of errors in bills or due to mistake by firms in
billing / GST returns, the amount so payable to Govt / recovered by Govt will be debited and recovered from
the firms.
21. Firms will also ensure to give timely response to queries sent by Depots to resolve the mismatches in GST
returns.
22. Compliance to Govt Regulations.
Firms will ensure compliance of Govt laws and regulations aS laid down in various Acts for weight and
measures for packaging, labels, manufacturing
location / unit, branding, brand / trade mark ownership,
marketins. manufacturing location / unit, branding , brand I trade mark ownership, marketing , manufacturing
date, shelf life I best before date, ingredients declaration including Consumer Protection Act, Legal
Metrology. Food & Standard Act, State Excise Act & Rules ,
etc.
23. Termination of Contract
Both parties to the contract, i.e. firm and CSD can terminate the contract by giving one month's notice.
Firms can apply for voluntary withdrawal of their products. CSD can also delete the items from CSD inventory
range by giving one month's notice specifying reason thereof.
24. Departmental Appellate Authority
In case of any dispute , the matter will be put up to the appellate authority i.e. Board of Administration ,
whose decision will be final and binding and no representation on this account will be entertained.
25. The above terms and condition are in addition to those already contained in the form of Application for
Introduction / Registration, letter of undertaking given by the firm on the non-judicial stamp paper along
with the said Application Form and those contained in our letter of approval issued by Canteen Stores
Department for introduction of products in CSD range as also various circulars issued / amended by the
Department from time to time.
26. Arbitration Jurisdiction
Jurisdiction related to any legal matter arising out of the business transaction with the department shall be
at Mumbai.
27. Acceptance to terms and conditions The above condition shall be applicable to all listed products in
CSD.
