CHAPTER – V AUDIT OF MARKET COMMITTEE ACCOUNTS

Market Committees are constituted under Section-4 of the Andhra Pradesh (Agricultural Produce and Livestock Markets) Act 1966, with a view to provide for the establishment of recognized open Market for regulation of purchase and sale of any notified agricultural produce, livestock or products of livestock and such facilities in the market as may be specified by Government from time to time by general or special order. The Secretary of the Market Committee is the executive authority, who is responsible for proper maintenance of accounts.

1. Scope of Audit: a) According to Rule-4(1) of the AP State Audit Rules issued with G.O.Ms.No.130, Fin. & Planning (FW-Admn-II) Dept., dt.08-09-2000, the procedure for conduct of Audit of AMC Accounts is post Audit, which means conducting detailed audit locally after transactions are completed. Thus, audit of the transactions in a financial year is being conducted after closure of the financial year.

b) The local audit of the vouchers should be conducted with reference to the original registers and accounts and with regard to receipt portion, all the items of receipts shown in the accounts should be checked with concerned registers and connected files.

2. Commencement of Audit: a) Before taking up the audit, the auditor should study the rules issued by Government under Section-33 of the Act, i.e. the AP (Agricultural Produce & Livestock) Markets Rules, 1969, as amended from time to time and the by-laws framed by the Committee under Section-34 of the Act. According to Rule-97 of the Rules, the procedure laid down in the AP Financial Codes, Accounts Codes, Treasury Codes and instructions, if any, issued from time to time, shall mutadis-mutandis apply, in regard to maintenance of accounts, registers and forms etc, by the Market Committees.

b) The auditors should go through the latest administrative reports, the budget of the year, the previous year’s audit report with special reference to the general defects in accounts and registers and attitude to disposal of objections.

c) The Auditor should identify the major items of transactions i.e.; produce, livestock etc; and total quantities under each item during the year of audit and comment with reference to the transactions of the previous year.

d) The auditors should also comment on the overall performance with reference to income and expenditure during the year of audit.

e) The audit fee is recoverable at the rate of 0.375% of the total annual expenditure audited.

Note:- The following items of expenditure of Market Committees are exempted for purpose of levy of audit fee

i) 10% contribution towards Central Market Fund,ii) Expenditure on contribution towards National Defence Fund, CM Relief Fund and

PM Relief Fund, andiii) Expenditure on investments.

(GOMS No.686 Food and Agriculture (Agri IV) department Dt. 27-11-78)

f) The Market Committee fund should be deposited in a single banking account with the nearest govt. treasury. Cheques of the value of rupees one hundred and below drawn on behalf of the market committee has to be signed by the secretary and all other cheques drawn on behalf of market committee have to be signed by the secretary and counter signed by the chairman or by vice-chairman in the absence of chairman

3. Income: The income of a Market Committee is derived from the following sources:a) License fees under Section-7 of the Act in respect of purchaser and seller,b) License fees to operate as broker, carting or clearing agent, warehouseman,

weighman, measurer, surveyor, lorry owner, cartman or hamal in the notified area under Rule-49 of the AP (Agricultural Produce and Livestock) Market Rules 1969,

c) Market fees levied under Section-12 of the Act.d) Other miscellaneous receipts such as sale of grass and cattle droppings in

the Market yard, sale of badges, electoral rolls, lease of shops, interest on investments, chungdi (Rule-69),

e) Fines and Penalties under Section-23,f) Securities from officers and servants,g) Securities from contractors and other deposits.h) Subscription for Market Intelligences under Rule-34 of the Rules.

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4. The process of audit of the several items of Receipts is indicated below:

a) Fees for licence:

It shall be granted under Section-7 of the Act and is valid for 5 (Five) years and shall expire on the last day of the fifth financial year, unless cancelled or suspended under Sub-Section 4(b) of Rule-7.

It should be seen

1) that the licences issued by the market Committee are noted chronologically in a Register kept for the purpose with the information regarding the names of the licensees, period of licences, the amount of fees paid and treasury challans or receipts in support of payment,

2) that the licence fee or renewal fee, as the case may be, collected by the Market Committee has been supported by a receipt granted to the person and the amount taken to credit in cash book without delay,

3) that the licence fee or renewal fee, as the case may be, is collected at the following rates as per Rule 48 of the Rules.

Licence FeesFor traders having an annual Rs.turnover of Rupees one croreand above: 3000/=

For traders having an annualturnover of Rupees fiftylakhs and upto Rupees one crore: 2000/=

For traders having an annualturnover of below rupees fifty lakhs: 1000/=

4) that the licence granted is renewed only after the licensee has paid the arrears of amounts due under provisions of the Act,

5) whether the licence is granted to a person, who is not eligible to be granted in view of the conditions vide Sub-Section-4 (a) of Section-7 of the Act,

6) that the persons who have taken licences render accounts to the Market Committee,

7) that a special licence fees not exceeding Rs.100/- (Rupees one hundred) only as may be fixed in the bye-laws of the Market Committee has been collected from a person desiring to operate in a notified area of a Market Committee for specific transactions, which may not exceed ten in a year.

Note:-

a) A person purchasing notified agricultural produce, livestock or products of livestock for his own domestic use is not attracted by Section-7 of the Act.

b) No fees shall be charged for the grant of license –

1) to Khadi and Village Commission

2) to a Co-op Marketing Society registered or deemed to be registered under the AP Co-operative Societies Act 1964 selling notified agricultural produce, livestock or products of livestock grown, reared or produced by any of its members.

3) A person merely for curing, pressings, or processing any notified produce or products of livestock.(sub-rule[2]and[3]ofSection-7 of the Act)

4) Traders having turnover not exceeding Rs.2500/=(Rupees two thousand five hundred only) per day are exempted from obtaining license.(Sub-Rule-4 of Rule-48 of the Rules)

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b) Licence fees to operate as Broker, carting or clearing agent etc. in Notified area.

It should be seen

1) that the licence fees are collected at the rates fixed in the by-laws of the Market Committee not exceeding maximum specified in Rule-49 of the Rules,

Sl No. Licence to operate as Maximum fee per annum for obtaining

or renewing licence feeRs.

1 Broker 252 Carting or clearing agent 103 Warehouse man 54 Weighman, measurer/surveyor 105 Lorry owner 56 Carts man 27 Hamal 1

Note:- The Market Committee may in the case of Hamal decide not to collect any licence fee.

2) that the annual list of persons exercising profession has been obtained from the outdoor subordinates and action has been taken either to collect the licence fees due or prosecute them for failure to takeout licences,

Note:-The annual list should be examined to see that the names of all persons who had taken out licences during the previous year have been included in the list and the cases of omissions have been satisfactorily explained.

3) that licences issued have been chronologically noted in a register maintained for the purpose,

4) that receipts are issued for the fees collected from a printed counterfoil receipt book and that the fees collected have been taken credit in the cash book and noted in the Register of licences and in the annual list,

5) that when the fees are collected by the Market Supervisor, the amounts collected with the particulars of the person from whom the amount was collected etc., is included in the memorandum of collections and remittances or extract from the cash book,

6) that the fees collected according to the entries in the register have been taken credit in the cash book.

c) Market fees

The Market fees is levied on any notified agricultural produce, livestock or products of livestock purchased or sold in the notified market area under Section-12 of the Act read with Rule-74 of the Rules issued thereunder. This fee shall be paid by the purchaser, and where the purchaser cannot be identified, it shall be paid by the seller.

It should be seen that –

1) that the fees is levied at such rate not exceeding two rupees as may be specified in the by-laws, for every hundred rupees of the aggregate amount for which the notified agricultural produce, livestock or products of livestock is purchased or sold, whether for cash or deferred payment or other valuable consideration,2) that the fees collected either from the purchaser or seller are correct with reference to the aggregate amount realized and entered in the schedule or statement, sale docket sheet, daily return received from traders and the weekly returns of brokers,3) that the amount of market fees payable by a trader has been assessed by the assessing authority on the basis of the return of turnover submitted by the trader after having satisfied about the correctness and completeness of such returns as required under Section-12-B,

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4) whether penalty equal to two times the market fees due on the turnover that has not been disclosed by a trader in his return has been collected from such trader,5) whether there are cases where traders liable to pay market fees have failed to submit returns before the date specified in that behalf or produced the accounts, registers and other documents after inspection or submitted returns subsequent to the date of inspection and whether the assessing authority has taken action to assess fees as required in Sub-Section-4 of Section-12-B of the Act and directed such traders to pay in addition to the market fees so assessed, a penalty equal to two times the market fees due,6) whether there are cases of omissions or discrepancies in the assessment and action taken thereof under Sub-Section-5 of Section 12-B of the Act and the traders have been directed to pay a penalty equal to two times the market fees,7) whether the market fees assessed and the penalty levied have been paid by the trader in such a manner and within such time not being less than fifteen days from the date of service of the notice of assessment or of the levy of penalty as specified in such notice ( Section-12-C of the Act),8) whether interest at 12% per annum from the date when the market fees became due has been collected on the sums relating to market fees assessed or any installment thereof and penalty if any, in addition to the said sum, in cases where such sums are not paid within the time specified therefor in the notice of assessment or in the order permitting payment in installment,9) that the fee levied has been entered in a Register maintained in the Committee’s office for the purpose,10) that the Register is posted from a schedule or statement of the fee collections received from the employees entrusted with the collection work, 11) that the fees collected by the licensees are correct as seen from the schedules received from them along with each remittance and the weekly returns received from them,Note: The correctness of the fees levied need be checked in about 10% of the

cases.12) that the Market fees collected by the licensed commission agents have been paid to the Market Committee not later than 25th of the succeeding month and also traders have paid the market fees to the Market Committee not later than 25th of the succeeding month.Note: The Takpattis (Sale slips) received from the commission agents should be hecked in audit for the selected months.

Exemptions from payment of Licence Fees and Market fees :

The following exemptions have been granted by Government from time to time.

1) Exemption from payment of licence fees due under section-7 of the Act:

a) Girizan Co-operative Corporation Limited, Visakhapatnam and its branches (G.O. Ms.No. 326, Food and Agricultural Department, dated 10-4-1975).

b) National Seeds Corporation Limited, Vijayawada and its units (G.O. Ms. No. 462, F. & A. Dept. dated 28-5-1975).

c) A.P. Civil Supplies Corporation (Private) Limited, Bhimavaram (G.O. Ms. No. 1001, F.& A., dated 18-11-1975).

d) Nizam Sugar Factory Limited, and its units companies (G.O. Ms. No. 624, F.& A. Dept. dated 25-8-1977).

e) A.P. Dairy Development Corporation (Private) Limited, (G.O. Ms. No. 83 F.& A. Dept. dated 14-2-1977).

f) Cotton Corporation of India, (G.O. Ms. No. 876, F.& A. Dept. dated 25-10-1976).g) A.P. Fisheries Corporation Limited Kakinada and its branches (G.O. Ms. No. 530

F.& A. Dept. dated 12-9-1979).

2) Exemption from payment of Market Fees due under section 12(1) of the Act.

a) Sri. Sitharama Kuteera Parishramala Sangham, Tenali, Guntur district in so far as it relates to the levy of fees on the paddy purchased by it for the purpose of being converted into the hand-pounded rice. ((G.O. Ms. No. 1054, F.& A. Dept. dated 30-12-1976).

b) Agricultural Department, Government of Andhra Pradesh on the purchase of paddy seeds. (G.O. Ms. No. 125, F.& A. Dept. dated 12-2-1976).

c) Retail vegetable and fruit traders in so far as it relates to payment of Market fees.(G.O. Ms. No. 1098 Food & Agrl. (Agri.IV) Dept., dt.29-12-75)

Explanation: - A retail vegetable trader or retail fruit traders, one who is not a whole saler, but who sells vegetables or fruits as the case may be in small quantities in retail on wheeled and hand pushed cart or in basket, or gunny bag or in small heaps on road side

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or by roaming about in the streets and whose turnover of sale or purchase of such vegetables or fruits does not exceed Rs.70 on any single day.(G.O. Ms. No. 1389 Food & Agrl.(Agri.IV) Dept., dt.3-8-1977)

d) Sale of Grass, Cattle Droppings, Lease of Shops. Etc.

It should be seen:-

I) that these have been sold in public auction:II) that the agreements have been obtained from the lesseesIII) that the instalments of kists are regularly Collected:IV) that the realization of instalments is watched by means of a register (Miscellaneous

Demand Register) maintained for the purpose.V) that the collections are supported by printed receipts issued from a counterfoil receipt

book. VI) that the collections have been promptly brought in the cash book.

Note: - Under Rule 69 no buyer should refuse to buy chungdi at the same price as declared for the lot of which the former forms a part; any sweepings of the market shall be the property of the market committee and the cost thereof should be credited to accounts at the end of each day’s transactions.

e) Fines:

Under sub-section 3 of Section-25 of the Act all fines realized would be credited to the State funds and a grant equal to fines would be paid to the Market Committees. The grants on account of the fines are paid in the manner indicated in the Andhra Pradesh Treasury Code Volume-I and also Government Memo No. 123983/Accounts/57-3 Finance dated 5-11-1958.

f) Fees for Arbitration and Appeals:

It should be seen that a separate Register is kept for noting arbitration of disputes and appeals disposed of by the Committee with information regarding the amount of fees collected in each case. The collections should be checked with the entries in this Register, and the counterfoil of printed receipts issued.

g) Securities from the Officers and Servants:

It should be seen that the securities fixed under Rule 39 of the Andhra Pradesh (Agricultural Produce and Live Stock) Markets Rules 1969 have been obtained from the Officers and servants of the Committee and that an account of the securities so obtained, is kept in the Security Deposit Register.

h) Deposits from the Contractors and Others:

The following are the deposits of the Market Committee:

a) Weighmen’s deposits;b) Contractor’s Deposits for the due fulfillment of contracts;c) Unclaimed dues;d) Election Deposits;e) Other Miscellaneous items.

It should be seen in audit that all the above Deposits have been entered in the Register of Deposits.

It should also be seen:

1) that a register of deposits is maintained in the prescribed form and separate pages have been allotted for each class of deposits,

2) that the deposits are in cash or in such kind of securities as Government may specify,

3) that the following items have not been credited to deposit head of account,a) sums that can be clearly brought to account under any revenue

head of account;b) Pay, Pension, Leave salary or other allowances;c) Fines;

4) that no item has been credited to any deposit head of account except with the written order of the Secretary,

5) that a certificate by the Secretary at the end of each quarter to the effect that the entries in the register are maintained uptodate, is forthcoming,

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6) that no deposit is refunded except under the written orders of the Secretary,7) that election deposits received at the time of filing nomination have been refunded

only under the orders of Election authority,

Note: At the end of each year, any deposit or balance thereof should be credited to revenue head of account, if it has remained unclaimed for a period of three years from the date on which became payable or in case the deposit has been received in cash and the deposit or balance thereof does not exceed one rupee, if it has remained unclaimed for a period of one year from the date on which it became payable.

8) that no deposit credited to a revenue head has been refunded except with the sanction of the Market Committee on an application preferred by the person entitled to refund.

4.2 Write off of Irrecoverable Amounts:

A Market Committee is competent under section-24 of the Act to write off any amount due to it, if in its opinion such amount is irrecoverable. It should be seen in audit,

i) that the Market Committee has satisfied itself about the irrecoverability about the amounts due to it by the reason of non-traceability or insolvency of the person or on the basis of the report of the Officer entrusted with collection of such amounts that the recovery is not possible,

ii) that the previous sanction of the Government for write off of the amount exceeding Rs.100 is forthcoming.

5) Expenditure

General: - Before the audit of the paid vouchers is Commenced, the following records and registers should be obtained and kept ready.

1. Bundle of Vouchers2. Cash Book3. Cheque Book4. Treasury Pass Book5. Permanent Advance Register6. Pay Bill register7. Contingent register 8. Acquittance register 9. Register of advances10. Register of Deposits11. Register of Securities12. Central Market Fund Register 13. Register of Service Books of employees14. Service Registers15. Establishment Audit Register16. Register of increments17. Register of Probationers18. Register of cheques and money orders received19. Stock Register of books and forms20. Stock Register of tools and plant21. Stock Register of Stationery22. Stamp Account23. Stock register of (Library) reference books24. Minutes book25. Register of Immovable properties26. Register of estimates and allotments27. Tender register28. Measurement Books29. Register of Loans30. Register of investments31. Register of suits.32. Receipts and Expenditure ledger.

6) Audit checks of expenditure:

The objects on which expenditure could be incurred from the Market Committee Fund are specified in Section-15 of the Act. The following are the important checks to be exercised in the course of audit of charges.

1) That the expenditure is permissible under the Act or rules framed thereunder and has been provided for in the year’s Budget or by subsequent allotments

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by reappropriation from other heads of account duly sanctioned by the Director of Marketing,

2) that vouchers have been prepared in accordance with all the certificates duly signed and passed by the Secretary,

3) that the totals of the amounts in the vouchers are noted in figures as well as in words,

4) that receipts for all sums in excess of Rs.5000/- are duly stamped,5) that payments have been made by means of cheques,6) that the pay bills of establishment have been prepared in prescribed form

and that cheques for payment of establishment bills have been drawn in favour of the Secretary or the Supervisors of the Market yards, as the case may be,

7) that separate acknowledgements (stamped wherever necessary) have been taken in the cases of disbursements in the office of the Market Committee in the last columns of the bill and in other cases in the acquittance register from each Officer or servant to whom any salary or allowance is paid except where the drawer is the sole payee and has already furnished a receipt (Stamped where necessary) on the bill itself,

8) that whenever any item of expenditure requires the sanction of any authority higher than the Officer or servant drawing the bill, such sanction has been obtained and the terms thereof have been quoted on the bill,

9) that the specific sanction of the Market Committee is forthcoming in respect of a claim presented after more than six months from the date on which the claim became due,

Note:-i) Any defalcation or loss of money or stamps belonging to the Market

Committee should be reported immediately after discovery to the Director and also to the Assistant Director of Marketing in whose jurisdiction the Market Committee is situated. A further and complete report should also be submitted to him, as soon as may be after the matter has been fully enquired into, setting forth the nature and extent of the defalcation or loss, the errors or neglect of rules by which such defalcation or loss, was rendered possible and the prospects of effecting a recovery.

ii) Loss or theft or otherwise of other property belonging to the market committee should be reported to the Audit Officer, if the value of the property list exceeds one hundred rupees.

iii) The submission of reports in items (i) an (ii) above should not debar the Committee or its Secretary from taking such further action as may be considered necessary.

7) ESTABLISHMENT VOUCHERS

The sanctioned scale for different establishment as recorded in the Establishment Audit Register should be examined with reference to the sanctioned scale of the previous year and any subsequent alterations sanctioned during the currency of the year. The following are the important checks that should be applied in the case of audit of establishment bills,

1) that the charge drawn in the bill is arithmetically correct and supported by necessary certificates printed on the bill,

2) that the Pay bill is supported by an absentee statement in such form as may be specified by Government or by a certificate in the bill that no leave has been granted to any member of the establishment,

3) that the pay and allowances claimed for each individual are according to the sanctioned scales of pay and at the rates admissible and also are in accordance with the rules regulating the conditions of service,

Note: - The Fundamental Rules, the A.P.Travelling Allowance Rules, the A.P.Leave Rules 1933 or the leave Rules prescribed in the Hyderabad Civil Service Regulations as the case may be for the time being in force will so far as they may be applicable, govern the members of the Service in regard to their pay, allowance, leave and leave salary,

4) that the pay claimed is admissible in respect of a Post to which the incumbent has been appointed and of which he is actually in charge,

5) that no claim is admitted for service in a post not duly sanctioned or for pay not assigned or provided for the post held,

6) that an increment certificate is attached to the first pay bill in which a periodical increment is drawn,

7) that in the case of an Officer or servant lent by the Government or transferred from any other Market Committee, the first pay after such loan or transfer is drawn only after receipt of the last Pay Certificate in the proper form granted by the head of the former office and the said certificate is attached to the first pay bill drawn after loan or transfer,

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8) that pay, leave salary and allowances of a deceased employee are drawn only upto and inclusive of the date of his death, (The hour at which the death takes place does not affect the claim).

9) that leave and increments sanctioned from time to time to the staff are according to the rules and entries recorded in the Service Registers of the incumbents,

Note: - (1) Orders admitting Grade increments from 1st of the month in which it falls due under operation of normal rules and orders regulating increments as applicable to Government employees were extended to employees of Market Committees.

(Govt. Memo. No. 4811 Agri.IV 74-1 Food & Agricultural Department dated 3-12-1974)

Note: - (2) The concession of availment and encashment on earned leave preparatory to retirement ordered in G.O.Ms No.415 Finance and Planning (FR-I) Dept. dt. 30-11-77 in respect of Government employees has been extended to the employees of Market Committees (G.O.Ms.No.396 Food & Agriculture (Agri.IV) Department dt. 22-6-1979; (G.O.Ms. No.68 Food & Agriculture (Agri.IV) Dept. dt. 16-1-81).

Note: - (3) Leave Travel Concession has been extended to the employees of Market Committees in the State on par with Government employees. The expenditure on this account should be met from the funds of the Market Committee concerned (G.O.Ms. No.46 Food & Agriculture (Agri.IV) Department dated 1-2-1980).

10) that the grant of leave and payment of leave salary etc., are according to rules,11) that payments due to a deceased Officer or servant of the Market Committee have not

been made except on the production of an authority of the nature specified in clauses (i), (ii), (iii), (iv) and (v) of sub-section (1) of section-214 of the Indian Succession Act. 1925,

Note: - Payments may be made without production of the above authority :a) to the extent of Rs.300/- under the orders of the Secretary if he is satisfied, after

such enquiry as he may consider sufficient about the right and title of the claimant.b) Above Rs.300/- under the orders of the Market Committee on the execution of an

indemnity bond with such surety or sureties as he may require, if it is satisfied, after such enquiry as it may consider sufficient about the right and title of the claimant and considers that undue delay or hardship would be caused by insisting on the production of such authority specified in para 7(11) above.

12) that in the case of the last payment of an employee’s pay and allowances and in case he is finally quitting the service of the Market Committee at the end of any leave granted to him, the last payment of his leave salary has been made only on ascertaining that there are no demands outstanding against him and that a certificate to that effect signed by the Secretary of the Market Committee is attached to the bill in which such pay and allowances or leave salary is claimed,

13) that arrears of pay are drawn on a separate bill with a quotation of the bill in which the charge was omitted or with-held or on which it was refunded by deduction,

Note: - The original bills should be verified and the number and the amount of the subsequent voucher should be quoted against the entry in the original bill.

14) that the pay bills have been signed and passed by the Secretary Market Committee, who is the pay drawing Officer for himself and all other employees of the Market Committee,

15) that cheques in respect of payment of salary and fixed allowances have not been issued before the first working day of the month following that to which payment relates,

Note: In the event of an Officer or servant finally quitting the service of the Market Committee or being transferred to the service of another Market Committee or the Government, cheques may be issued on the date of such an event.

16) that in respect of posts for which qualifications have been prescribed, a certificate that the persons holding the posts are duly qualified and have been exempted from possessing the requisite qualification by the competent authority has been furnished in the bill,

17) that in the case of temporary posts the sanction of competent authority for the creation of the posts is forthcoming and that the pay and allowances etc. claimed are according to the rules,

Note: Necessary entries regarding the period of sanction should be made in the audit register and fresh sanction called for when necessary. Temporary establishment should be entered in the audit register on a separate page and not mixed up with the permanent establishment.

18) that income tax deductions are made wherever necessary,19) that subscriptions towards P.F. are deducted according to the rules and credited to the

Provident Fund accounts of the institution,

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20) that other deductions made, if any, such as those towards repayment of advance for purchase of conveyance, security deposits and recoveries of excess payments etc., are properly credited to the respective accounts,

21) that annual verification of services has been conducted in respect of each member of the establishment with reference to pay bills and acquittances and a certificate to that effect recorded in the Service Registers at the end of the year.

8) Acquisition of Sites for the Market

In cases of acquisition of lands for market: It should be seen:

1) that the land has been acquired under the Land Acquisition Act, 1964, unless it has been purchased at the rate approved by the District Collector,

2) that the sanction of the Market Committee has been obtained for the intended purchase,

3) that a Registered Sale deed has been obtained to secure the title of the Committee to the lands,

4) that in every case where the consideration for the property is more than Rs.75/-, a non-encumbrance certificate has been obtained from the registration office in respect of such property and examined by the legal advisor of the Market Committee.

9) Maintenance and Improvement of the Market: Construction and Repair of Buildings Necessary for the Market for the Health Convenience and Safety of the Persons Using it:

It should be seen:

a) that all plans and estimate for works proposed to be carried out by the Market Committee have been designed by the Engineering Cell of the office of the Director and that in cases where such Engineering Cell considered that the technical advice of any Engineer of the Public Works Department or Roads and Buildings Department or Public Health Department is necessary the case has been referred to such department,

b) all the original and repair works have been technically sanctioned by the Market Engineer,

c) that tenders for the execution of works have been called for and the lowest accepted.

10) Provident Fund Account

Every Market Committee shall establish, maintain and administer a provident fund for the benefit of Officers and servants of the Market Committee. The Auditor should acquaint himself with the Provident Fund Rules vide Chapter XIII of the AP (Agricultural Produce and Live Stock) Market Rules 1969. The Auditors who conduct audit of Market Committee Accounts in the Telangana Region should keep in view the provisions of the Rules relating to “Application of Provident Fund Rules to employees of the Market Committee of Telangana Region vide Rule 228, which is extracted below:

Rule-228:- Application of provident fund rules to employees of the market committee of Telangana Region:-

1) The employees of the Market Committee of the Telangana area of the State having service of 10 years or less immediately before the application of these rules shall be brought under these rules and the pension contribution made by the aforesaid Market Committees in favour of the employees and accumulated by the Director shall be transferred as contributions in the Provident Fund under these rules in respect of such employees.

2) The employees of the aforesaid Market Committees who are to retire within five years from the commencement of these rules shall not be brought under the Provident Fund Rules and they will be entitled only for the accumulated pension contribution paid by the aforesaid Market Committees and continue to be paid by such Market Committee in respect of such employees at the rate of one-seventh of their pay to their credit on the date of their retirement.

3) Other employees of the aforesaid Market Committees not covered by sub-rules (1) and (2) shall have choice to continue under the pension contribution system or opt out to the Provident Fund Rules and in the latter case, the accumulated pension contributions shall be treated as provided in sub-rule (1).

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It should be seen in audit whether every subscriber has been furnished, after the close of each year as soon as possible with a statement in Form-21 showing the amount at his credit inclusive of interest and contribution as required under Rule-225 of the rules.

The following registers have to be maintained as required under Rule-226 of the Rules. These registers should be reviewed every year by the Director.

a) a Provident Fund Ledger in Form-22,b) an abstract register in Form-23,c) a cash book in Form-24,d) a register of subscribers in Form-25,e) a register of temporary advances and their recoveries in Form-26,f) a register of Life Insurance Policies in Form-27 andg) a register of Premia in Form-28.

The Provident Fund Accounts should be examined on the lines indicated in Para 15 of Chapter III relating to Audit of the accounts of Municipal Council.

11) Pensionsa) In G.O.Ms.No.444 Food & Agriculture (Agri.IV) Department dated 18-8-1980, the pensionary benefits in the Andhra Pradesh Liberalized Pension Rules 1961 issued with G.O.Ms.No.231 Finance dated 11-6-1962 and the Andhra Pradesh Government Servants (Family Pension) Rules 1964, as amended from time to time and the Civil Service Regulations as amended from time to time in so far as they are not inconsistent with the provisions of the Andhra Pradesh Liberalized Pension Rules, have also been made applicable to all employees of Market Committee borne on regular establishment who retired or retire on and after 1st April, 1974.

b) The auditor has to acquaint himself with the Andhra Pradesh Market Committee Employees [Pension-cum-Gratuity) Rules 1980 issued with G.O.Ms.No.444 Food & Agriculture (Agr.IV) Department dt. 18-8-80 and check the accounts relating to administration of pension Fund in the light of the instructions contained therein.

Note (1):- The age of retirement on superannuation of the employees of the Market Committees has been raised to 58 years with effect from 29-10-79 (G.O.Ms.No.694 Food & Agriculture (Agrl.IV) Department dated 14-12-79).

Note (2):- Government directed that the orders issued to the effect that the State Government employees in all categories shall retire from service with effect from the afternoon of the last day of the month in which their date of retirement (Superannuation) falls, have been extended to all the Market Committee employees with effect from 6-2-80 (G.O.Ms.No.57 Food & Agriculture (Agri.IV) Department dated 6-2-1980).

c) Government introduced in G.O.Ms.No. 653 Finance (Pension-I) Department dt. 22-09- 2004 the Contributory Pension Scheme to all the employees who were recruited on or after 01-09-2004 and whose Pay and Allowances are drawn from the Consolidated Fund of the State, including all the new recruits of all tiers of all the Rural and Urban Local Bodies, Zilla Grandhalaya Samsthas, Agriculture Market Committees, Universities etc. and amended the AP Revised Pension Rules, 1980 to the effect that the latter Rules are not applicable to all Government employees, employees of Rural and Urban Local Bodies, whether temporary or permanent, appointed on or after 01-09-2004.

d) According to the orders issued in G.O.Ms.No. 655 Finance (Pension-I) Dept. dated. 22-09-2004, it is mandatory for all the above said employees to become members of the Contribution Pension Scheme, they have to pay a monthly contribution of 10% of the Basic Pay and DA from his salary to the said Scheme and Government makes a matching contribution for each employee.

12) Payment of interest on loans that may be raised for the purposes of the market and the Provision of a sinking fund in respect of such Loans:

It should be seen:-

1) that the sanction of the State Government has been obtained for the loan raised.2) that the terms of repayment and the time within which the loan has to be repaid have

been specifically approved by Government and these have been noted in the Register of Loans.

3) that the payment of interest and principal has been regularly made and noted in the Register.

4) that where a sinking fund has been constituted for the liquidation of a non-Government loan, the instalments are paid on the due dates.

Note (1):- The Market Committee should maintain the following accounts in respect of loans raised by it:

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(i) an account showing the receipts from the loans, the repayments thereof and the payment of interest, if any thereon;

(ii) an account showing the manner of appropriation of loan and;

(iii) a sinking fund account, where a sinking fund has been created for liquidation of any non-Government loan.

Note (2):- Diversion of earmarked funds:

Where for a specific purpose, any loan has been raised, any contribution has been received or any fund has been earmarked, such loan, contribution or fund should not be diverted even temporarily to any purpose other than that for which the same has been raised, received or earmarked, as the case may be, without the previous sanction of the Government.

13) The Collection and Dissemination of information regarding all matters relating to crop statistics and Marketing in respect of the Notified Agricultural produce: Livestock and products of livestock:

It should be seen that a subscription not exceeding Rs.25 per annum with the approval of the Director of Marketing has been collected from every subscriber in advance for supply of a copy of Market reports as required under Rule 34 of the Market Rules.

14) Propaganda in favour of production and Marketing of Notified Agricultural produce, livestock, and products of livestock:

The Market Committee whenever funds permit, should with the approval of the Director provide staff, for propaganda (including demonstration) and publicity in favour of the improvement of the production and marketing of the notified Agricultural Produce, Livestock or products of livestock. Such items of expenditure should be checked with reference to the terms of the sanction of the Director. The nature of the check will depend upon the manner of propaganda adopted by the Committee.

15) Refunds of Revenue:

It should be seen:-

that the sanction of the Market Committee has been obtained for the refund;that the refund has been drawn on the form prescribed for the purpose;that acknowledgements of the payees are forthcoming; andthat the fact of refund has been noted against the original credit.

16) Budget:

It should be seen:-

that the budget for the next year has been prepared by the Market Committee not later han two months preceding the commencement of its official year in the prescribed form and submitted to the Director of Marketing for sanction before 45 days of the closure of the year;

Note: The Market Committee is competent to incur expenditure provisionally as per budget passed by the Committee, in case the sanction of the Director is not received within 30 days from the date of submission of the Budget to him.

that the expenditure has been regulated in accordance with the provisions of its budget and in accordance with the instructions issued from time to time by the Director;That no expenditure has been incurred for which there is no budget provision unless it has been proposed to be met by reappropriation from savings under other heads or by a supplementary grant from the available reserve subject to such demand from the Market Committee and sanction thereto by the Director;that the works for which plans and estimates have not been previously prepared and technically sanctioned, have not been included in the Budget.

17) Surplus Funds (Rule-85)

It should be seen that all unexpended balances on the last working day of the Committee’s official year have been invested in such banks or in such interest bearing securities as may be specified by the Government or of an Officer authorized by the Government in this behalf.

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Note: - Government directed all the Market Committees in the State to deposit all surplus unds with the State Co-operative Banks or District Co-operative Central Banks (G.O.Ms.No.102, Food & Agrl. (Agril.-IV_ Dept. dt. 4-2-1976).

18) Contribution to the central market funds (Rule-86-A):

It should be seen:-

1) that every Market Committee has contributed to the Central Market Committee for four quarters commencing from April on or before tenth of the first month of the subsequent quarter 10% of its income in the previous Quarter;

2) that every Market Committee has maintained a separate Register showing the income of every year and remittance to the Central Market Fund every year.

Note (1):- In case any Market Committee fails to remit the contribution to the Central Market Fund within the time prescribed, the said amount with simple interest at 6% per annum is recoverable from the Market Committee by the Director.

Note (2):- The above-said payment of interest is avoidable and constitutes loss to the institution. Such cases should be pointed out in the Audit Report.

19) Sitting fees, Travelling Allowance & Honorarium of the Members of the Committees:

Payment of Sitting fees, T.A and Honorarium regulated by the provisions under Rule-38 of the Rules as amended.

It should be seen –

a) That the sitting fees per day is paid not exceeding the rates shown below to its Chairman, Vice-Chairman and members:

1) Selection Grade AMC - Rs.150/-2) Spl.Grade AMC - Rs.100/-3) Grade I AMC - Rs. 50/-4) Other AMCs - Rs. 30/-

b) that the traveling allowance for journeys undertaken by the Chairman, Vice-Chairman and members for attending the meetings of the Market Committee, meetings convened by the Director or for inspection tour within the notified area or study tour outside such notified area is paid at the rates applicable to the Grade II Officers as specified in A.P. Civil Services (T.A) Rules, 1996 and as amended from time to time.

Note (1):- If journey is performed by a class lower than to which he/she is eligible, he/she shall draw a single fare of the class by which he/she actually traveled.

Note (2):- If the Chairman or Vice-Chairman or Members of the Committee undertake(s) tour on the same day, he/she shall be allowed either sitting fees or daily allowance for the day whichever is advantageous to him/her.

Note (3):-The Market Committee shall not allow its Chairman, Vice-Chairman, members, officers or employees to incur any expenditure for performing journeys beyond its jurisdiction to any place within the State without the previous sanction of the Director (or any Officer authorized by him/her in this behalf) and to any place outside the State without the previous sanction of the Government.

Note (4):-The Market Committee shall not incur any expenditure on any deputation sent by it to any place outside the State without the sanction of the Government, and the number of the members for any such deputation shall in no case exceed three including the Chairman or Vice-Chairman.

c) The Market Committee may pay an honorarium to its Chairman at the rates specified hereunder per month subject to availability of funds and with the prior approval of the Director.

Sl. No. Grade Rs. Per month

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1) Selection Grade AMC 2000/-2) Spl.Grade AMC 1500/-3) Grade-1 AMC 1000/-4) Other AMCs 500/-

20) Law Charges (Rule-131)

It should be seen: -

1) that in respect of all cases leading to disputes, Civil or Criminal, where legal advice or representation in courts is necessary, the Market Committee has sought advice or entertained the services of the Government Pleaders, Public Prosecutors, Pleaders doing Government work or other Law Officers having jurisdiction and appointed by the Government for the various courts, and that in cases where there are more than one Law Officer having jurisdiction over the particular court where the case is filed, the Market Committee has sought the advice or entertain the services of such Law officer as may be decided by the Collector,

2) that the Market Committee has paid fees to Counsel in accordance with the following scale:

i) in civil cases, the regulation fee or fee allowed by the Court whichever is higher; and

ii) in criminal cases, the fees to be fixed with reference to the amount and the nature of work involved, but subject to a maximum of Rs.35/- for each day during which the Counsel is engaged in court in connection with the case for not less than three hours or for less than three hours but at a station different from that where he usually practices and Rs.15/- for each day in all other cases.

Provided that where the Counsel is engaged in court in more than one case on the same day, the total of fee payable to him for that or the cases should not exceed Rs.50/-.

21) Payment of Fees

1) Whenever the Market Committee proposed to pay fees in a civil case, exceeding the regulation fee or that allowed by the court, but not exceeding Rs.500/-, it should be seen that the sanction of the Director of Marketing has been obtained for such payment.

2) that the Market Committee may pay fees upto Rs.100 with the sanction of the Director in the following cases:i) in each case for work done in examining the records and for services rendered

out of court, provided that no suit or case is instituted, or defence entered in continuation of such examination or of such services;

ii) in each case in which the subject matter of the claim does not admit of valuation.

3) That the sanction of Government has been obtained for appointment of a Standing Counsel on a fixed remuneration for a term not exceeding one year at a time.

Note: -Payment of fees to Government Pleader or other Pleader in cases of opinion on appeal against the decision of the Civil Court: -

With the sanction of the Director of Marketing, the Market Committee may pay fees to the Government Pleader or other Pleader as the case may be, upto Rs.100 in each case for the opinion on appeal against the decision of Civil Court and may, in special case pay a higher fee with the previous sanction of Government. If the Government Pleader or other Pleader is entrusted with the filing and the conduct of the appeal in court, the total fee payable to him for the opinion and for the filing and the conduct of the appeal in court, should not exceed Rs.100 or the regulation fee whichever is higher, except with the previous sanction of Government.

22) Expenditure on Items of Special Nature:1) The Market Committee with the sanction of the Government may: -

a) Contribute a sum not exceeding Rs.500/- towards opening ceremony of Market Committee constituted for the first time, or of an institution under the control of the Market Committee.

b) Defray any other extraordinary charges.

Note: - The extraordinary charges so incurred should not exceed Rs.500/-.

2) The Market Committee may incur expenditure towards the presentation of address to the Governor, a Minister not exceeding Rs.100/- provided that no charges are

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incurred on entertaining any Minister or any other very important person or on the purchase of casket for the presentation of address to him.

3) Supply of uniform was sanctioned to watchman and other staff working in Agriculture Market Committees in the State at the rate of Rs.75/- per head per annum including stitching charges. The expenditure should be met from the funds of respective Market Committee

(G.O.Ms.No.1198 Food & Agril. (Agri.IV) Dept. dt. 3rd May, 1979).

23) Cash Book and Pass Book:

These should be checked in the manner indicated in Chapter rotating to the Municipalities for check of these accounts. The cash book should be directly written up from duplicate or counterfoil receipts, Treasury challans, memorandum of collections and remittance or extract from the cash book received from the supervisors etc., Self-cheques should be accounted for in the cash column of the cash book as there is no separate petty cash book. Remittance into the treasury should be made daily by means of challans.

The cash book if any maintained by Superintendent incharge of Market should also be called for and examined to see that the extracts submitted to the Committee’s Office are true extracts of the cash book, that receipts from counterfoil receipt books have been issued for collections, that the collections have been promptly remitted into the Treasury or the Committee’s Office at such intervals as may have been fixed by the Committee. The deposits and withdrawals noted in the cash book should be verified into the pass book with reference to remittance of challans and cheques respectively and the correctness checked. The cash balance on the date of audit should be verified physically and certificate of verification recorded in the cash book under the initials of the Auditor.

24) Cheque Book:

It should be seen –

i) that all payments except from imprest are made on cheques.

ii) that the cheques are signed as provided in Rule 111 of the Market Committee Rules.

25) Counterfoil Receipt Books:

This would have been checked when the items of Receipts were checked. The following further checks should be exercised: -

i) that all used up receipt books have been received in the Committee Office from the Superintendents;

ii) that all the collections made as per counterfoil receipts are remitted without delay; and

iii) that a stock account of books is maintained.

26) Deposit and Advances Registers, Register of Investments, Register of Immovable Property, Register of Tools and Plant, Register of Permanent Advance, Contingency Register Stock Register of Stationery, Postage Stamps, Receipt Books etc., Register of Prosecutions, Suits Register and Other Miscellaneous Registers:

This should be checked in the manner prescribed for check of such records in Municipal and Zilla Parishad Offices.

27) Monthly and Annual Accounts:The monthly and annual accounts of the Committee prepared with or without the aid of a Register similar to the posting Register in a Municipality should be checked in audit. The closing balance of the Account should agree with the balance of the cash book.

28) Audit Report:Important irregularities noticed in audit are included in an Audit Report and forwarded to the Secretary of the Market Committee for necessary action and a copy of the Audit Report should also be sent to the Director of Marketing. Further remarks on the replies to the Audit reports should be issued as soon as they are received. A copy of further remarks should be extended to the Director of Marketing. Further remarks should be signed by Audit Officer Local Funds as ‘for Director.’ Irregularities of minor nature should be incorporated in a separate statement styled as “Annexure” to and as part of the audit

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report and issued along with the audit report and receipt of replies watched. Objections should be pursued by means of further remarks till they are settled.

ANNEXURE-IPara 9 (d)

GOVERNMENT OF ANDHRA PRADESH

ABSTRACT

Works – Execution of works by the Agricultural Market Committees – Detailed procedure to be followed – Instructions – Issued.

(G.O.Ms.No. 426, Food & Agriculture (Agri-IV) Department, dated 4th August 1980)

READ:

1. G.O.Ms.No.143 Food & Agriculture (Agri-IV) Department, dated 6-2-1974.

2. G.O.Rt.No.1762, Food & Agriculture (Agri-IV) Department, dated 16-9-1976.

3. G.O.Rt.No.195 Food & Agriculture (Agri-IV) Department, dated 4-2-1977.

4. From the Commissioner for Development of Marketing and Director of Marketing Lr.No.E/C4/4660/78, dated 12th July, 1980.

ORDER:Under Rule 87(2) of the Andhra Pradesh (Agricultural Produce and Livestock) Markets Rules, 1969 and in supersession of the Govt.Orders read above, the Government prescribes the procedure as laid down in the Annexure to this order to be followed by all Agriculture Market Committees in the State, while calling tenders for and in execution of works by the Committees.

(By order and in the name of the Governor of Andhra Pradesh)

N.K. MURALIDHARA RAO, Ex-Officio Secretary to Government

ANNEXURE

Under Rule 87(2) of the Andhra Pradesh (Agricultural Produce and Livestock) Markets Rules, 1969, the Government of Andhra Pradesh prescribes the following procedure for calling of Tenders and execution of works by the Agricultural Market Committees:

I. PREPARATION OF PLANS AND ESTIMATES:

a. The Market Committee shall propose works as per the norms laid down by the Director of marketing from time to time either from out of its available savings or out of loans or out of grants-in-aid by December or each year in order to consider inclusion in the Budget of the next year.

b. The Plans of such works shall generally by in accordance with the type designs duly approved by Director of Marketing.

c. Plans and estimates for the works proposed to be carried out by the Market Committee shall be prepared by the technical person working under the Market Committee or in the Marketing Department.

d. All the estimates of works shall be in conformity with the specifications of schedule of items of works detailed in A.P.D.S.S. or those in application in the Public works Department.

e. Where a Market Committee is to employ a private Architect for preparing designs, working plans etc., for buildings estimated to cost over Rupees One Lakh it may do so with the prior approval of the Director of Marketing and pay only such centage charges as are sanctioned by the Director of Marketing after executing a necessary agreement.

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f. The schedule of rates shall be in accordance with those prescribed for the place by the Public Works Department from time to time.

II. TECHNICAL SANCTION:

Technical sanction to all the original works or repairs shall be accorded by the Engineering personnel of Director of Marketing according to the instructions of the Director of Marketing from time to time.

III. ADMINISTRATIVE SANCTION:

Market Committees shall obtain Administrative sanction of Government through Director of Marketing for all works costing Rs.5000 and more before tenders are called for (G.O.Ms.No.200 Food & Agriculture (Agri-IV) dated 2-5-1981.

IV. PROCEDURE FOR CALLING TENDERS:

a) Tenders shall be invited only after approval of the Tender schedules by the Assistant Engineer (Marketing) or Assistant Engineer (Agriculture Market Committee) concerned. Tenders in sealed covers shall be invited by the Secretary, Market Committee in such forms as may be specified by the Director of Marketing and in the most open and public manner in respect of all original works and repairs which are to be executed on contract from all the registered contractors of Marketing Department, Public Works Department and Zilla Parishads the estimated cost of which exceeds Rs.2,500; whereas works upto Rs.2,500 shall be let out on nomination basis within the sanctioned estimated rates.

b) Schedule for inviting Tenders.

SlNo.

Value of work

No. of Newspapers inWhich tenders to be

Invited.

TimeSchedule

1. Upto Rs.10,00,000

One each in English and Telugu in Coastal

15 days – from the date of publication

2. Above Rs.10,00,000

Coastal Andhra and Rayalaseema and one each in English, Telugu and Urdu in Telangana

30 days – fromthe date of publication

Provided that where tenders received in the first instance are not found acceptable under rules, the Secretary with the sanction of Chairman, Market Committee may recall tenders by republishing the tender notices as per above schedule.

c) The tenders of contract shall be definite and precise without any scope for ambiguity or misconstruction therein. No contract involving an uncertain or indefinite liability or any condition of an unusual character shall be entered into.

d) Tenders for works shall be accompanied by a schedule giving the items of work and their approximate quantities and the conditions of contract. These should also include specifications and the plans of the work to be done.

e) Every tender shall be accompanied by a cash receipt in token of having paid the earnest money which shall not be less than 1½ percent of the contract amount. The earnest money deposited by unsuccessful tenders shall be returned within a week’s time after receipt of application thereof. The earnest money deposited by the successful tenderer shall be retained as security for the fulfillment of the contract. The earnest money of the successful tenderer shall be refunded only after the completion of the work, settlement of accounts and audit objections, if any, relating to the work after a period of six months from the date of taking over the work by the department after completion and after production of a satisfactory certificate from the Assistant Engineer concerned.

f) 1) The Secretary of the Market Committee shall at the time and place specified for the purpose in the notice inviting tenders open the sealed box and sealed covers containing the tenders in the presence of not less than three members of the Market Committee including the Chairman, Market Committee and such of the tenders or their authorized agents as may be present;

2) Until the sealed covers are so opened, the sealed box shall be kept in the personal custody of the Secretary.

g) On opening the tenders, the Secretary shall initial all corrections in each tender which may have been made by the tenderer and attest tender unattested by the tenderer, a note of such correction shall be made on the tender itself and obtain the signatures of members of Market Committee present.

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h) The Secretary or the Overseer or Supervisor or Market Committee or of the Marketing Department shall enter the details of all the tenders received in a tender register in such form as may be specified by the Director. The tenders shall be tabulated and scrutinized by the Secretary with the help of a technical person not below the rank of an overseer and the lowest tender ascertained. The Secretary shall then place the comparative statement before the Market Committee through the Chairman Market Committee with his recommendations for consideration and approval. The works under state/central schemes of assistance shall be executed by the Department of Marketing.

V. ACCEPTANCE AND DISPOSAL OF TENDERS:

a) All tenders the value of which is Rs.50,000 and below may be examined and decided by the Agricultural market committee, provided the offers are within the estimated rates.

b) In respect of all other works of a value exceeding Rs.50,000 the tenders shall be forwarded to the Government through the Director of Marketing. (G.O.Ms.No. 200 F.& A.(Agri-V) Department dated 2-5-1981).

c) Normally the Agricultural market committee should accept the lowest tender. Where the Market Committee prefers to accept higher tender but within the estimated rates, a reference should be made to the Director of Marketing to seek prior approval.

d) In case the lowest tender received is higher than 10% of the estimated rate, the Agricultural Market Committee shall recall tender under intimation to the Director.

e) The Director may sanction tenders if the tendered rate is within 10% of the estimate and if the tendered rate is above 10% of the estimate, the Director of marketing shall seek sanction of the Government.

f) In case of exigency or urgency, the Director of Marketing either on his own motion or at the request of the Agricultural Market Committee let out works costing not more than Rs.25,000 on nomination basis to registered contractors.

g) In respect of any individual item of overall tender, the offer shall not exceed the percentages stipulated by the Chief Engineer (R & B), or Chief Engineer (General) from time to time.

h) 1) All agreement bonds shall normally be executed in K-2 form for the works costing below Rs.20,000 and in L.S. form for the works above Rs.20,000.

Provided that considering the exigencies, the Director of Marketing may issue orders to execute agreement in K-2 form instead of L.S. The proforma of K-2 and L.S. agreements shall be informs communicated by Director of Marketing separately in this behalf.

2) All agreements shall be drawn up between Contractor and the Market Committee represented by Chairman, Market Committee and two members of Market Committee as per Section 11 of the Andhra Pradesh (Agricultural Produce and Livestock) Markets Act, 1966, on non-judicial stamp paper. On the execution of the Agreement, plans, specification and detailed estimates duly attested by Chairman, Market Committee, two other members and the contractor, shall be furnished to the contractor and his acknowledgement obtained.

VI. EXECUTION AND CHECK MEASUREMENT OF WORKS AND PAYMENT BY THE MARKET COMMITTEE:

a) The Mark out given by the contractors shall be checked by the technical person of Agricultural Market Committee or the Marketing Department.

b) All works shall be executed under the technical guidance of the overseer or supervisor of the Market Committee or the technical persons of the concerned Assistant Engineer’s office. The Assistant Engineer shall not check-measure the item of works and the secretary shall not make payment in respect of works done in deviation of the plan and estimate unless approved by the Director of Marketing.

c) There shall be no deviation from the estimates and plans sanctioned by Director of Marketing. In case any deviation is necessary, prior approval of Director of Marketing shall be taken furnishing the necessary information and a work slip.

d) A Measurement book shall be maintained in which the quantity of work done shall be measured and recorded by the overseer or supervisor of the Market Committee or in their absence, the overseer or the Supervisor of the office of the Assistant Engineer concerned.

e) The Secretary shall not make any payment to the Contractor without getting the measurements recorded in the measurement book by a technical person. Pending check-measurement by Assistant Engineer, the Market Committee can make payment to the extent of the 60% of work done on a running bill on the

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responsibility of Market Committee wherever the Assistant Engineer has not been able to check measure the work of works within 15 days from the date of informing the Assistant Engineer concerned either through certificate of posting or Telegram.

Provided that no such payment shall be made in respect of fittings, foundation of building or of laying R.C.C. roofing.

f) No final Bill shall be paid without the check measurements in the Assistant Engineer or Executive Engineer, as the case may be.

g) The Secretary with the help of the Accountant shall check up the calculations and prepare the Bill according to the tendered rates of Contractor after the measurements are check-measured by the concerned Assistant Engineer. In respect of any supplemental item by way of deviation, payment shall be made on the basis of rates approved by Director of Marketing.

h) The foundations shall be filled under the supervision of the concerned Assistant Engineer.

i) The Assistant Engineer concerned shall inspect the works at the stage of foundation, lintal level, roof level and at final stage on intimation by the Market Committee.

j) A deduction of 7½ percent of the value of the work done shall be made as security deposit (as retention money) on all bills payable in case of L.S. Contracts. In respect of K-2 Contractors security (retention money) to be held shall not be less than 5% of the value of the work done. Such deductions shall be adjusted and included for payment in the final bill on completion of the work.

k) The Market Committee shall preserve the check-measurements Books for a period of ten years and destroy them with due approval of the Director of Marketing.

VII. The Director of Marketing may issue instructions from time to time either in respect of works of a committee or committees as may be deemed necessary for execution of works in a proper manner.

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