UNUSED LAND REVENUE FUNDS TO BE DEPOSITED IN SAVINGS OR TERM DEPOSITS
GANGTOK, 03 Oct: The State government has struck upon an innovative initiative concerning the use of unused funds that it has kept aside for land compensation etc, and which are not immediately required by it. This initiative also involves generating ‘extra revenue’ by parking these funds in a bank which offers the highest rate of interest.
The funds which are to be deposited in savings or term deposits will generate interest over a period of time and the interest generated, in turn, is to be deposited under a separate head by the respective District Collectors.
It has been particularly decreed by the state government that neither the DCs nor the Land Revenue department, which disburses the funds for land compensation etc, are authorized to utilize or incur any expenditure from the interest accruing out of the deposits.
With a view to streamline the procedure for maintaining accounts related with deferred Land Compensation and Lease Rent, the State Government has decided upon a new set of procedures. The Land Revenue Department and all the District Collectors are to convert all Current Accounts maintained by them for payment of Land compensation into interest bearing Savings Accounts. The bank accounts are to be reconciled on a monthly basis.
There will be separate accounts for lease rent and land compensation as well.
Funds for the disbursement of compensation are also to be invested in term deposits. Such funds, if not immediately required are to be invested in selected banks which offer the highest rate of interest.
The selected banks include the State Bank of Sikkim, the Sikkim State Cooperative Bank and any of the nationalized banks. While the funds in these accounts accumulate interest it has been directed by the state government that neither the district collectors nor the Land Revenue department will be authorized to use the money arising out of the interest.
No expenditure is to be incurred out of the interest accruing out of deposits in the banks. In fact, the interest accruing from the savings and term deposits are to be credited under a different head altogether. These are to be done on quarterly or half yearly basis.
All figures of accounts held in the banks are to be compiled by the Land Revenue department as submitted by the district offices. In turn this information will be put up to the Finance Department.
The district collectors will be responsible for the receipt and payment of funds under the Land Compensation and lease rent to the head office which will have to be done monthly.