System Devl

System Devl. Sr. No 15

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P= rocedure order for= Accountal and encashment of Earnest Money and

S= ecurity Deposit in Stores Contracts=

PREAMBLE :

(i) The amount of Earnest Money to be deposited should be sufficiently large to be a security against loss, in the event of the contractor failing to furnish the required security within the appointed time after acceptance of his tender, or until such time as the su= ms due to him form a sufficient guarantees, as the case may be (Para 339-S). Exemption of EMD should be as per Railway Board’s instruction vide letter No. 2004/RS(G)/779/11, dtd. 24.7.2007.=

(ii) FORMS of Earnest Money Deposit : EMD should be in the form of = Cash Receipts issued by ECoRly Cash Offices, Banker’s Demand Drafts, Pay Orders, Deposit Receipts (FDR/SDR), Guara= ntee Bonds issued by Nationalized Banks/Scheduled Commercial Banks, IRFC Bonds a= nd KRCL Bonds of Rs. 1000/- each in favour of FA & CAO/ECoRailway/BBS or as per Railway Board’s instruction issued from time to time.

(Authority : (SI-339) Railway Board’s Letter No. F(X)II= -63/BN-2 (PT)Vol. II of 6/19.12.74 (Anx.VI/1-06)

(iii) EMD of unsuccessful Tenderers - RETURN/REFUND<= /p>

Stores purchasing officials shall arrange to ret= urn the EMD instruments directly to the unsuccessful tende= rers. In case of EMD received in the for= m of Cash Receipt, they should send Pay Order for such amount along with the add= ress of the tenderer and original cash receipt to AFA (Stores Bills) for passing and sending EMD amount by c= heque to the unsuccessful tenderer. This should be do= ne soon after the “unsuccessful status” of the tenderer is known.

(iv) EMD of successful Tenderers= :-

Stores purchasing officials shall send the EMD instruments including cash receipt to AFA (Stores Bills) with the details of the tender case including the name and address of the successful tenderer at the time of sending Purchase Orders for v= etting or at the time of placing Purchase Orders (below Rs. 50,000/-).

(v) Accountal and custody of EMD instruments :-

Accountal and custody of EMD instruments shall be maintained by AFA (Stores Bills) as per extant rules. Extant procedure for sending the D= emand Drafts/Pay Orders to Cash Office and encashment/collection of such instrume= nts and advice by ACC to AFA (Stores Bills) and AFA (Books) shall be followed.<= o:p>

(vi) Validation of expiring EMD instruments shall be reviewed e= ach week by AFA (Stores Bills).

N.B : As regards posting, encashment, renewal/extensio= n, review and reconciliation etc., = Rly. Bd. guidelines vide letter No. 52/2= 005, 8.9.2005 & 61/2005, dtd. 10.9.05 should be scrupulously followed. <= /p>

S= ecurity Deposit :

(i) Security Deposit shall be accepted= in the form of Cash Receipts issued by Railway Cash Offices, Bankers Deposit Receipt, Pay Orders, Demand Drafts and Guarantee Bonds (Nationalized & Scheduled Commercial Banks), Deposit in the post office savings Banks, IRFC= and KRCL bonds, in favour of FA & CAO/ECoRailway/BBS or as per Railway Board’s instru= ction issued from time to time.

(ii) The balance amount of Security Deposit after adjustment of EMD may also be deducted from the bills of the concerned firm= .

(iii) Accountal, custody, encashment and collection of SD instruments shall be same as per EMD.

(iv) The amount of EMD/SD shall be determined as per Railway Board’s letter No. Lr.No. 2004/RS/G/779/11, dtd. <= span class=3DGramE>24.07.2007.

N.B : As regards posting, encashment, renewal/extensio= n, review and reconciliation etc., Rly. Bd. guidel= ines vide letter No. 52/2005, 8.9.2005 & 61/2005, dtd. 10.9.05 should be scrupulously followed.

(v) Concerned Stores purchasing officials shall advise to AFA (Stores Bi= lls) in writing in case of forfeiture of such EMD/SD of the concerned firm within the validity period of EMD instruments as per extant rules.

(vi) Concerned= Stores purchasing officials shall advise for return/refund of EMD/SD to AFA (Stores Bills) to the concerned suppliers af= ter the contractual obligations are fulfilled as per extant rules along with necessary no due certificate. AFA (Stores Bills) shall arrange to return/refund such EMD/SD to the concerned = firm as soon as possible and maintain accounts as per extant procedure.

&nbs= p; This issues with the approval of FA &am= p; CAO (F&S).

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