Section 24 in Oil Industry (Development) Rules, 1975
24. Power to incur expenditure and to write off losses.
(1)Provided that prior approval of the Central Government shall be obtained before-(i)the Board invests any funds in the equity capital of any company or organisation, or(ii)the Board makes a grant of more than Rs. 25 lakhs in a single case.(2)The Board may write off losses upto Rs. 20 lakhs in each case. Write off of losses beyond this amount shall be done with the prior approval of the Central Government.(2A)While writing off losses under sub-rule (2), the Board shall have regard to the following namely:-(i)the loss does not disclose a defect in the rules;(ii)the loss does not disclose any defect in complying with the stipulations specified by the Board;(iii)there has not been any serious negligence on the part of an oil industrial concern to which the Board had granted loan and its realization requires some legal or administrative action;(iv)the loss is not attributable to any serious lapse on the part of any employee of the Board and in cases where the loss is attributable to any serious lapse on the part of such employee, it is not realizable from such employee/ functionary;(v)if the loss of any property acquired by an oil industrial concern with the assistance of the Board is due to fire, flood, earthquake or any other natural cause, it has been ensured that the facts were promptly reported, and proved to the entire satisfaction of the Board that the circumstances aforesaid were beyond the control of the said oil industrial concern:-(vi)if the loss is due to any expenditure on all or any of the measures specified in section 6, a detailed investigation has been carried out by the Board to ascertain the causes thereof and to ensure that the loss is not due to lack of proper technical survey in assessing the technical soundness and viability of the measure or any other lapse on the part of the oil industrial concern executing such measure.G.S.R. 311(E) 14thMay, 1979(File No. 7/4/78-PFD)S.L. KhoslaJt. Secy, Financial Adviser(3)The Secretary of the Board may write off losses upto Rs. 2000/- in each case.(4)The Board may delegate the powers under sub-rule (1) to the Chairman or its officers, subject to such limits as may be laid down by it in this behalf.(5)Re-appropriations between sub-heads under heads of expenditure may be made by the Board.(6)The Board may, however, delegate its powers under sub-rule (5) to the Chairman or the Secretary to such extent as it may deem fit.
