Sunday, 6 January 2019




1. The Grantee will execute bond favour of the President of India in the prescribed form. The bond shall be supported by two surities if the granter is not a legal entity.

2. The accounts of the project programme shall be maintained separately. Reports on progress of expenditure will be sent as and when asked for by granter. The accounts shall be open to inspection by the Sanctioning authority. The audit of accounts shall be done both by the Comptroller and Auditor General of India under the provision of CAG (DPC) Act, 1971 and internal audit by the Principal Accounts Office of the Ministry or Department. The audited accounts shall be sent to the granter annually.

3. The grant shall be utilized for the purpose for which it is sanctioned and in the stipulated time schedule. The granter shall not divert any portion of the grant received by him for any other purpose or organisation or individual.
4. The grantee shall furnish every quarter progress of expenditure on the grants received upto the end of the previous quarter, alongwith a progress report on the implementation of the project. Release of further instalments of grant shall be made on receipt of such reports The report will clearly indicate the targets fixed in the project and achievements there against lack of clarity in the report may lead to delay in release of further instalments of grant. Further amounts may be also not be released if the progress in implementation of the projects is not clear from the report on the achievements of targets is not give.
4.A. The organisation may please also ensure that the following points get mentioned in their Quarterly Progress Report.
i) That they are not getting assistance from any one else for the programme.
ii) Separate accounts are being maintained in the Bank.
5. The grantee shall furnish a utilization certificate in the enclosed proforma on the grants received every year within 12 months of the close of the Financial Year.

6. Any portion of the grant that remains unutilized for the purpose granted shall be refunded to the Government by the grantee except where it is adjusted against subsequent release.

7. The grantee shall maintain a record of assets and other items of permanent value having a life of not less than five years and costing Rs. 1,000/- and above acquired wholly or substantially out of the grant. Such assets should not be disposed, encumbered or diverted for purpose other than for which the grant is sanctioned without the prior approval of Govt. of India. Should the grantee organisation cease to exist at any time such assets etc. shall be surrendered to the Govt. of India.

8. When the Govt. of India/State Govt. have reasons to believe that the grant is not being utilized, for the purpose for which it is sanctioned, the amount paid to the grantee are liable to be refunded to the govt. of India.

9. The Govt. reserves the right to nominate a representative in the management of any grantee institution which received grant-in-aid from Govt. of India amounting to more than 50% of its annual recurring expenditure.

10. Govt. may direct grantee institution to make suitable changes in the Bye-laws and Ariticles of Association of the institutions concerned before release of grant-in-aid it the purpose of the grant required it.

11. Ownership of any building or immovable property constructed wholly or partly out of the grant-in-aid may rest with the grantee so long as it is utilized for the purpose for which the grant has been sanctioned. The responsibility for the maintenance of such buildings etc. will also be that of the grantee institutions concerned. If the organisation ceases to exist or there is breach of the terms and conditions of the grant or the building is not utilized for the purpose for which the grant was given, the ownership of the building shall rest wholly or partly with the Govt.

12. Where the grantee institution
i) employs more than 20 persons on a regular basis and at least 50% of its recurring expenditure is not out of grant-in-aid from Central Government and,
ii) is a registered society or a co-operative and is in receipt of a general purpose annual grant-in-aid of Rs. 2 lakhs and more out of the Consolidated Fund of India, the grantee should provide for reservation for scheduled castes and tribes in recruitment to the posts and services under it, as contained in orders issue by the Govt. from time to time for recruitment to posts and services under it.

(To be furnished on Rs. 20/- Stamp Paper)

KNOW ALL MEN BY THESE PRESENTS THAT we the _____________________________ (name of the organisation as in Registration Certificate) an association registered under the Societies Registration Act, 1960 having been registered by the office of ___________________ (name and full address of Registering Authority), vide Registration Number __________ date _________ Office at ____________________ in the State of _________________ (herein after called the obliger/obligate) are held and firmly bound to the President of India (hereinafter called the Government) in the sum of Rs. _____________ (in words Rupees _______________ only) well and truly to be paid to the President on demand and without demur, for which payment we bind ourselves and our successors and assigns by these presents.

2. SIGNED this ___________ day of __________ in the year Two thousand and ________

3. WHEREAS the obligors has sent a request proposal to Government through the Union Ministry of ___________ for Grants of Rs. _____________ vide his letter number __________ dated __________ the obligors has agreed to execute this bonds in advance in favour of Union Ministry of ____________________________ for entire amount of Rs. _________________ as requested in the proposal sent to the Government. The obligor is willing to accept the proposed amount or any other amount approved/sanctioned by the Government. The obligor is willingly executing this bond of higher proposed amount to accept the actual amount approved/sanctioned by the Government. The obligor is also willing to accept all terms and conditions mentioned in the “letter of sanction” to be issued by the Government.

4. Now the condition of the above written obligation is such that is the obligor duly fulfil and comply with all the condition mentioned in the letter of sanction, then above written bond or obligation shall be void and of no effect. But otherwise it shall remain in full force and virtue. If a part of the grant is left unspent after the expiry of the period within which it is required to be spent, the obligors agree to refund the unspent balance along with interest at the rate of 14% (fourteen percent) per annum unless it is agreed by the sanctioning authority to be carried over to the next financial year. The amount of grant shall be refunded along with interest earn thereon.

5. The Society/Trust agrees and undertakes to surrender/pay to Government the monetary value of all such pecuniary or other benefits which it may receive or derive/have received or derived through/upon unauthorized use (such as letting out premised for adequate or less than adequate consideration or use of the premises for any purpose other than that for which the grant was intended) of the property/building or other assets created/acquired/constructed largely from out of Government grant. The decision of the Secretary to the Government of India in the Ministry of ____________ Department of ___________________ or the administrative Head of the Department concerned shall be final and binding on the Society/Trust, in respect of all matter relating to the monetary value mentioned above to be surrendered/paid to the Government.

6. The member of the executive committee of the grant will
(a) abide by the conditions of the grants in aid by the target dates specified in the letter of sanction and
(b) not divert the grants or entrust execution of the scheme or work concerned to other institution (s) or organization (s); and
(c) abide by any other conditions specified in the agreement governing the grants in aid.
In the events of grantee failing to comply with the conditions or committing breach of the condition of the bonds the signatories to the bonds shall be jointly and severally liable to refund to the President of India, the whole or a part amount of the grant with interest @ 14% per annum thereon. The stamp duty of this bond shall be born by the Government.


(i) The decision to the Secretary to the Government of India in the Ministry of _______________ Department of __________________ on the question whether there has been breach or violation of any of the terms and conditions mentioned in the sanction letter shall be final and binding on the obligors; and the terms and conditions mentioned in the sanction letter shall be final and binding on the obligors; and

(ii) the Government shall born the stamp duty payable on these presents.

In witness where of these presents have been executed as under on behalf of the obligors and day herein above written in pursuance of the Resolution No. ____________ dated ___________ passed by the Governing Body of the obligors, a copy whereof is annexed hereto as Annexure-8.
Signed for and on behalf of
(                                      )
Signature & Name in capital letters
Designation and office seal of organisation

(name of the obligor Association)

In the presence of

(1) Witness Signature …………………………
(2) Witness Signature …………………………


(Form of Aquittance for grant-in-aid to be received through cheques/DD’s)

Received a sum of Rs. _______________ (Rupees ___________________________ only) by Cheque/Bank Draft from Pay and Accounts Office, Ministry of ________________, New Delhi on account of the grant-in-aid sanctioned by the Ministry of ________________ Govt. of India, New Delhi vide letter No. ____________________ dated _____________

Place: New Delhi
Signature of grantee
Date: ___________
Name of Grantee:                            
Designation :                            
Rubber Stamp of the Organization

Source: DoP&PW (click to view)
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