Section 45 in The M.P. Gram Panchayats (Accounts) Rules, 1999
45. Conversion of Security.
- Security furnished in cash by an employee or a contractor may be converted at the cost of the depositor into any of the prescribed interest-bearing forms of security mentioned in the preceding para, provided :-(a)That the depositor has expressly requested in writing that this be done; and(b)That the acceptance of the form or forms or security is permissible under the rules and under the terms of the agreement or bond; and(c)The conversion is authorised by a resolution passed at the meeting of the Panchayat.Conditions:(i)Cash actually received or recovered may be converted into an interest bearing form of security even when it forms part of a deposit which is being paid in instalments and has not yet been realised in full.(ii)Percentage deductions made from a contractor's bill held as security for the due fulfillment of a contract should not be converted into any other forms of security unless there is special rule or order for such conversion.(iii)When an employee has furnished security in the form of a fidelity bond, the Sarpanch receiving the bond should see that the employee pays the premium necessary to keep it alive on the due dates and continues to do so until a period of six months has elapsed since he vacated his office.(iv)A security deposit taken from an employee should be retained for atleast six months from the date when he vacates his post, but security should be retained permanently or until it is certain that there is no further necessity for keeping it.(v)Without a resolution of Panchayat no security should be repaid or re-transferred to the depositor, or otherwise disposed off, except in accordance with the terms of the security bond or an agreement.(vi)The Sarpanch on returning any security to the depositor should invariably obtain his acknowledgment duly signed and witnessed. When an interest-bearing security is refunded or transferred, the acknowledgment should set forth full particulars.(vii)The percentage deduction from bills held as security in connection with contracts to execute works should not be refunded till the final bill has been prepared and passed.(viii)All securities including fidelity bonds and security bonds should be kept in the safe custody of the Sarpanch.(ix)The question whether a particular form of security tendered is or is not satisfactory from the point of view or its acceptance or otherwise if for Sarpanch to decide at his discretion after examining all the aspects of the case.
