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
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.
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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
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
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
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.
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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
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(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)