Rule, 2018

Text

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EXTRAORDINARY

PUBLISHED BY AUTHORITY

No. 832] NEW DELHI, TUESDAY, NOVEMBER 20, 2018/KARTIKA 29, 1940 XX XX (ii) XX XX XX XX

MINISTRY OF ENVIRONMENT, FOREST AND CLIMATE CHANGE

(Forest Conservation Division)

NOTIFICATION

New Delhi, the 20th November, 2018

G.S.R. 1133(E).—Whereas, the Central Government in exercise of the powers conferred by sub- section (1) of section 30 of the Compensatory Afforestation Fund Act, 2016 (38 of 2016), published the accounting procedure as required under section 7 of the said Act vide the notification of the Government of India in the Ministry of Environment, Forest and Climate Change number

G.S.R. 782(E), dated the th August, 2018, in the Gazette of India, Extraordinary, Part-II, Section 3, Sub-section (i), for inviting objections and suggestions from persons likely to be affected thereby, before the expiry of thirty days from the date on which copies of the Gazette containing the said notification were made available to the general public; And whereas, copies of the Gazette in which the said notification was published, were made available to the general public on the 17th August, 2018;

And whereas, the objections and suggestions received in respect of the said draft rules within the specified period have been considered by the Central Government; Now, therefore, in exercise of the power conferred by sub-sections (1) and (2) of section 30 of the Compensatory Afforestation Fund Act, 2016 (38 of 2016) ( hereafter in this notification referred to as the said Act), the Central Government in consultation with the State Government hereby makes the following rules, namely:-

1. (1) These rules may be called the Compensatory Afforestation Fund (Accounting Procedure) Rules, 2018.

(2) They shall come into force on the date of their publication in the Gazette.

2. The accounting procedure to regulate the manner of crediting the monies to the National Fund and State Fund in a year shall be in such manner as given below:

(1) Consequent upon issue of notification in the Official Gazette for establishment of the ‘National Compensatory Afforestation Fund’ by the Central Government in terms of sub-section (1) of section 3 and in terms of sub-section (3) of section 3 of the said Act all the monies collected by the State Governments and Union territory Administrations which has been placed under the ad hoc Authority and deposited in the nationalised bank shall be transferred to the interest bearing section of Public Account of India under a distinct Minor Head with the nomenclature ‘National Compensatory Afforestation Deposits’ below the ‘Major Head 8336- Civil Deposits’ and Sub-Head opened thereunder for each State and Union territory.

Note : This is a Deposit Account as 90 percent of the monies transferred from the ad hoc Authority belong to State Governments and Union territories and not the Central Government.

(2) While remitting money, the ad hoc Authority shall provide detailed State wise break-up for which the Office of the Controller General of Accounts should, in consultation with the Ministry of Environment, Forest and Climate Change propose standard sub heads or detailed head for this purpose so that said standard heads are reflected under Major Heads 8336-Civil Deposits, 8121- General and other Reserve Funds and 2406-Forestry and Wildlife.

(3) The one-time 10 percent share of the Central Government shall be credited/transferred to National Fund under interest bearing section of Public Account of India under a distinct minor head ‘National Compensatory Afforestation Fund (NCAF)’for the purpose below the ‘Major Head 8121- General and other Reserve Funds’.

(4) Consequent upon issue of notification for establishment of respective State Compensatory Afforestation Funds by the concerned State Governments in terms of sub-section (1) of section 4 of the Act, State share (90 percent of the monies with ad hoc Authority) so credited to the National Compensatory Afforestation Deposits under Major Head 8336-Civil Deposits, shall be transferred to State Compensatory Afforestation Fund (SCAF) as per each State share.

(5) While transferring respective State share to State Fund, breakup shall be provided at an appropriate level below the Minor Head ‘State Compensatory Afforestation Fund (SCAF)’ and these heads of accounts shall be uniformly applicable across all the States/Union Territories.

(6) The monies received by the State Governments from the User Agencies shall be credited in ‘State Compensatory Afforestation Deposits’ at Minor Head level below ‘Major Head 8336-Civil Deposit’ in Public Account of State. Out of which 90 percent shall be transferred to the Major Head 8121 in Public Account of State and 10 percent credited into the National Fund on yearly basis as per sub- section (4) of section 3 of the Act; provided that, the credit of 10 percent Central share of funds should be ensured on monthly basis so that the same is transferred to the National Fund.

(7) The expenditure of the National Authority shall be provided for under the Detailed Demand for Grants of the Ministry of Environment, Forest and Climate Change and the specific schemes to be financed from the National Fund shall be formulated by the National Authority and provisions shall be made for the same in the Ministry’s Budget.

(8) Similarly, the State Budget shall have provision for State Schemes financed from State Fund based on the Annual Plan of Operation of the State Authority.

(9) The Pay and Accounts officer of the Ministry or the State treasury, as the case may be, shall debit the concerned Functional Head under Consolidated Fund of India/Consolidated Fund of State and thereafter make the accounting adjustment at regular intervals with the National Compensatory Afforestation Fund or State Compensatory Afforestation Fund as deduct recoveries and this ensures that the expenditure is adjusted from the National Fund or the State Fund, as the case may be, and the balance continues to remain in the interest bearing, non-lapsable fund in Public Account.

3. Detailed Accounting Entries.- The accounting entries for transfer of the existing monies with ad-hoc Authority shall be as below:-

(i) Initially, amount lying with ad hoc Authority shall be transferred to distinct minor head below ‘MH 8336-Civil Deposits’ under interest bearing section of Public Account of India. Debit Major Head Existing 8658 Suspense Accounts Minor Head Existing 108/138 Public Sector Bank Suspense/Other Nominated Banks (Private) Sector Banks Suspense Credit Major Head Existing 8336 Civil Deposits Minor Head New 102 National Compensatory Afforestation Deposits Note 1: Each State or Union territory shall be a separate Sub-Head. Each Sub-Head may be divided into Detailed Head for various activities viz. Compensatory Afforestation, Net Present Value of Forest Land, Catchment Area Treatment Plan, Interest etc.

Note 2: While remitting money, the ad hoc Authority shall provide detailed State wise breakup.

(ii) At the time of payment of 90 percent share to State Government or Union territory, the accounting entry shall be as follows:

Debit Major Head Existing 8336 Civil Deposits Minor Head New 102 National Compensatory Afforestation Deposits Credit Major Head Existing 8658 Suspense Account Minor Head Existing 110 Reserve Bank Suspense –CAO

(iii) Respective States shall credit the amounts to dedicated Minor Head ‘129-State Compensatory Afforestation Fund (SCAF)’ below Major Head ‘8121-General and other Reserve Funds’ and this Minor Head may be divided into Sub-Head for various activities, namely the Compensatory Afforestation, Catchment Area Treatment Plan, Net Present Value of Forest Land, Interest etc and these heads of accounts shall be uniformly applicable across the States. Note 1: The applicable rate of interest on balances available under ‘National Compensatory Afforestation Deposits’ under ‘8336-Civil Deposits’ and ‘National Compensatory Afforestation Fund’ under 8121-General and other Reserve Funds shall be as per the rate declared by the Central Government on year to year basis.

Note 2: The applicable rate of interest on balances available under ‘State Compensatory Afforestation Deposits’ under ‘8336-Civil Deposits’ and ‘State Compensatory Afforestation Fund’ under 8121- General and other Reserve Funds shall be as per the rate declared by the Central Government on year to year basis.

(iv) At the time of transfer of 10 percent share to National Fund: 10 percent share pertaining to Central Government shall be transferred to National Compensatory Afforestation Fund under Public Account of India from National Compensatory Afforestation Deposits below Major Head 8336-Civil Deposits and the accounting entry shall be- Debit Major Head Existing 8336 Civil Deposits Minor Head New 102 National Compensatory Afforestation Deposits Credit Major Head Existing 8121 General and other Reserve Funds Minor Head New 128 National Compensatory Afforestation Fund (NCAF)

(v) Accounting entry for 10 percent yearly receipts transferred from the User Agencies.- I. The yearly receipts transferred from the user agencies shall initially be accounted by States in the below mentioned head :- Major Head Existing 8336 Civil Deposits Minor Head New 103 State Compensatory Afforestation Deposits Provided that this Minor Head may be divided into Sub-Head for various activities and thereafter, 90 percent of the receipts shall be transferred to Minor Head ‘129-State Compensatory Afforestation Fund (SCAF)’ under the Major Head 8121—General and other Reserve Funds in Public Account; provided further that break up shall be maintained and provided at Sub-Head level under new Minor Head ‘8121.129 – State Compensatory Afforestation Fund (SCAF) and these heads of accounts shall be uniformly applicable across the States.

II. Balance 10 percent shall be transferred to the National Fund by the States from their Deposit Head of Account on monthly basis.

III. The following accounting entry shall be made in the books of the Central Government on receipt of the same.

Credit Major Head Existing 8121 General and other Reserve Funds Minor Head New 128 National Compensatory Afforestation Fund (NCAF)

4. Expenditure from the Fund- After due appropriation of funds, the expenditure on schemes to be financed from National Fund shall be incurred from the Major Head 2406.

(i) On the basis of sanctions issued, the Pay and Accounts Officer shall make the payment by debiting government account as below:

Debit Major Head Existing 2406 Forestry and Wild Life Sub Major Head Existing 04 Afforestation and Ecology Development Minor Head New 102 National Compensatory Afforestation (NCA) Sub Head New 01 National Authority Credit Major Head Existing 8670 Cheques and Bills Minor Head Existing 102 PAO cheques Note: Appropriate primary units of appropriations shall be opened as per Delegation of Financial Power Rules, 1978 under National Authority.

(ii) A new Minor Head ‘103-State Compensatory Afforestation (SCA)’ is opened under Major Head ‘2406-Forestry and Wildlife’ below Sub-Major Head ‘04-Afforestation and Ecology Development and the appropriate head of accounts and primary units of appropriation shall be opened under State Authority.

5. Recoupment from National Fund/State Fund-

(i) The Pay and Account Officer of the Ministry of Environment, Forest and Climate Change shall make the accounting adjustment with the National Fund as deduct recoveries and this ensures that the expenditure is adjusted from the National Fund and the balance continues to remain in the interest bearing, non-lapsable fund in Public Account.

(ii) The following entry shall be made in the books of Pay and Accounts Officer- Debit Code Description Major Head Existing 8121 General and other Reserve Funds Minor Head New 128 National Compensatory Afforestation Fund (NCAF) (-Debit) Major Head Existing 2406 Forestry & Wild Life Sub Major Head Existing 04 Afforestation and Ecology Development Minor Head Proposed 903 Deduct Amount met from National Compensatory Afforestation Fund (NCAF) Object Head 70 Deduct recoveries Note: The arrangement for State Government(s) shall be similar to that of Central Government and the Minor Head for “Deduct Amount met from State Compensatory Afforestation Fund (SCAF)” is ‘904’.

6. Budget of the National Authority- The National Authority shall prepare its budget showing the estimated receipts and expenditure of the National Authority and forward the same to the Central Government, in such form and at such time in each financial year as may be prescribed and similar arrangement shall be applicable in respect of the State Authorities also.

7. Accounts of National Authority-

(i) The Pay and Accounts Office, Ministry of Environment, Forest and Climate Change shall maintain a broadsheet of receipts and payments from the National Fund and effect reconciliation on monthly basis with the National Authority and it should be ensured that there are no adverse balances under the Reserve Fund at any time.

(ii) The Comptroller and Auditor-General shall, within a period of six months from the date of commencement of the Act, audit the accounts of all the monies collected by the State Governments and Union territory Administrations, which has been placed under the ad hoc Authority and deposited in the nationalised banks and submit the report to the Central Government.

8. Audit of National Authority.-

(i) The Comptroller and Auditor General of India has the power to conduct the audit including special audit or performance audit of State or National Fund and State or National Authority.

(ii) The Internal Audit Wing under Chief Controller of Accounts shall also conduct audit at regular intervals of the National Fund and National Authority.

[F. No. 11-100/2015-FC (Vol. III)] DEEPAK KUMAR SINHA, Inspector General of Forest and Published by the Controller of Publications, Delhi-110054.

ALOK KUMAR

Provisions this rule answers to

Read out of the instrument itself: an enabling provision is one it says it was made under, which is the power it rests on. The rest it names without resting on.

Other instruments under the same Act

All of the The Van (Sanrakshan Evam Samvardhan) Adhiniyam, 1980