Refund of Security Deposit retained in Special Drawing Account SDA dt 01.03.2013
OFFICE MEMORANDUM
Subject: Special Drawing Account
Kindly refer to the subject cited above.
2. The Government of the Punjab, in some cases, has allowed the execution ol development schemes by releasing development funds through Special Drawing Accounts (SDA), Personal Ledger Accounts (PLA) or Assignment Accounts (AA). The funds provided through these accounts are either in normal release, mode or placed in Public Account and in either cases are lapsable at the close of a financial year; As per existing practice; the security deducted from contractors / suppliers against work done supplies made is retained as balance in such accounts and are payable on maturity during the financial year by the operators of the accounts,
3. However, it has been observed that in case the payment of the security attain maturity after the close of the relevant financial year, the residual balance in the respective account lapses to government and the scheme becomes un-funded due to full utilization of funds of the scheme, wherefore, the operators of such accounts are unable to discharge such liabilities (refund of securities) due to non-availability of funds in the accounts. Meanwhile, fresh funds cannot be demanded due to technical reasons like completion of gestation period of the scheme etc. Consequently, the contractors/ suppliers have to face undug problems.
4. The problem has accordingly upon deliberated this dopȧrtmont, and In order to streamline the issue the following procedure is prescribed:
The provisions of the Rule 12.5 of Punjab Financial Rules Vol-1 cater for such situation and allows the deposit of security of contractor in the Public Account of the province by recording the following head of account on the Account of the province by recording the following head of account on the challan form;.
Provincial A/C No.-1 (NF)
G Liabilities
G11 Special Deposit-Investment
G112 Other Deposit Account
G11276 Security Deposit of Contractors/Suppliers
5. The amount deposited will be classified by the Treasury/ District …Accounts Officer as–Revenue Deposit under Public Account of the Province, and will also be allotted a unique serial number to each such entry in the Revenue. Deposit Register maintained for the purpose. Consequently, the procedure of refund of ‘revenue deposit; as laid down in Rules 4.128, & 14.129 of the Punjab Subsidiary Treasury Rules shall be invoked for the refund of security on maturity.
6. The concerned operators of such accounts while refunding the securities to the contractors/supplies shall use the prescribed refund form No ‘STR 41’, previously obtained from the Treasury/District Accounts Officers, and shall follow the provisions of Subsidiary Treasury, Rules as well as other procedures prescribed / instructions issued, from time to time for deduction; retention and refund of securities.
