Directs Departments to Conduct Physical Verification, Ensure Transparent Disposal Under GFR Norms
Srinagar, June 22: In a significant move aimed at improving inventory management and preventing wastage of government assets, the Jammu and Kashmir Finance Department has issued a circular directing all government departments and offices to undertake the clearance and disposal of dead stock items in accordance with the provisions of the General Financial Rules (GFR).
According to the circular issued by Financial Commissioner (Additional Chief Secretary), Finance Department, Shailendra Kumar (IAS), it has been observed that a large quantity of dead stock items has remained undisposed in various government offices for prolonged periods, resulting in unnecessary occupation of storage space, blockage of government assets, and deterioration in the value of such items.
The Finance Department noted that such practices are contrary to the provisions of Rules 217 to 223 of the General Financial Rules, which provide guidelines for proper management, survey, and disposal of obsolete, surplus, and unserviceable government assets.
To ensure effective inventory management and strict compliance with GFR provisions, all Administrative Departments, Heads of Departments, Treasury Officers, and Drawing & Disbursing Officers (DDOs) have been instructed to take immediate action.
As per the directions, all departments and offices shall conduct a comprehensive physical verification of stores and inventories under their control and identify obsolete, surplus, and unserviceable items. The identified items are to be surveyed and declared unserviceable by the competent authority in accordance with Rule 218 of the GFR.
The circular further states that disposal of dead stock shall be carried out in a transparent manner through public auction, tender, e-auction, or any other method prescribed under Rules 219 and 220 of the GFR to ensure fairness, transparency, and maximum realization of government revenue.
Departments have also been directed to maintain proper stock registers, survey reports, and disposal records for audit and inspection purposes. Sale proceeds generated from the disposal process shall be deposited promptly into the concerned Government Treasury under the appropriate Head of Account.
Additionally, Treasury Challans and all related records are to be preserved for audit and verification purposes.
The Finance Department has emphasized that all departments must accord top priority to the exercise and ensure strict adherence to the General Financial Rules. Director Finance/Financial Advisors of all departments have been instructed to submit monthly progress reports to the Finance Department without fail.
The circular, issued on June 19, 2026, is expected to streamline asset management practices across government institutions and enhance transparency and accountability in the utilization of public resources.(KNC)
