Rules of the Payment of Grants-In-Aid

Rules of the payment of Grants-in-Aid

The following conditions are prescribed by the Municipal Corporation for the purpose of giving voluntary grants-in-aid to institutions in Delhi. Other than those receiving grants-in-aid for education from the provision therefore in the Corporation’s Budget.

1. Voluntary grants-in-aid may be made by the Corporation t their discretion, to Associations or Institutions carrying out any of the obligatory or discretionary duties of the Corporation, as laid down in the Delhi Municipal Corporation Act, 1957.

In particular, Associations or Institutions whose aims and objects are:

(a)to promote care or education of the deaf, the dumb, the mute, the blind and the crippled and handicapped;

(b)to promote adult literacy;

(c)To promote, establish and run poor houses, infirmaries, children’s homes, orphanages’ homes for deserted women and shelters for destitute persons;

(d)to promote, establish and urn museums, art galleries, reading rooms and libraries.

(e)to promote sports and games and establish and run stadia, gymnasia and akharas;

(f)to promote, establish and run social services centers, work centers and women’s social and educational activities;

(g)to promote, establish and run health centers, hospitals, dispensaries, maternity homes, leper homes and lunative asylums:

(h)to promote car of and relief to beggars, moral rehabilitation of women and delinquent persons and ;

(i)to provide benefits and benevolence of any kind failing under clause (Za) of Section 43 of the Delhi Municipal Act, will be recognized for the purposes of grants-in-aid under these rules.

1. No grants will be made if the Association or Institution is not conducted for any charitable or benevolent purpose.
2. The grant made by the Corporation will be restricted to such activities as are carried on within the limits of Delhi.
3. No grants will be made, if in the discretion of the Corporation, it is found that the amenities provided or the services rendered by a particular Association or Institution are not necessary in the particularly locality in which they are provided.
4. No grant will be paid to any Institution or Association in which religion is a condition of admission or if its activities include proaganda for conversion of faith or religion.
5. Grants will be made subject to the following consideration:-

(i)if an Association or Institution requires a thereof, assistance may be given by the Corporation at their discretion if such Association/Institution is registered under the Societies Registration Act (Act XXI of 1860). The grant will be of such amount as the Corporation may fix having regard to the financial position of the Association or Institution and the object for which it is needed

(ii)An annual grant towards meeting the current expenses of an Association or Institution may be given subject to the following:-

(a)No grant will be given in cases in which fees, other than nominal fees in the opinion of the Corporation are charged for the benefits, amenities or services provided;

(b)No grant ill be given in the case of an Association or Institution, the balance sheet of which for each of three preceding years show al surplus exceeding the amount of the grant-in-aid paid by the Corporation during each of these years;

(c)no grant will be given if it is found that the activities are not carried on properly and economically or that funds are either not utilized for which they are intended or are mismanaged;

(d)no grant will be given to an Association or Institution which is not open to all classes and communities;

(e)no grant will be made if the amenities or services are rendered to a class of people who can themselves afford to pay for such amenities or service; and

(f)concession in rent, taxes etc, already made by the Corporation will be taken into account in fixing the amount of the grant.

1. Each Association or Institution applying for a grant must have a regular constitution of its own specifying its aims and objects and rules and regulations for the conduct of its affairs.
2. An Institution or Association applying for a grant for the first time or in subsequent years shall submit its application to the Commissioner not later than the 30th June of each year.
3. (a) Every application must be accompanied by the following information:-

(i)Name and address

(ii)Aims and objectives

(iii)Composition of the Board of Management.

(iv)Copy the Annual Report for the immediately preceding year.

(v)Statement showing the income, expenditure, resulting surplus or deficit, the grant received from the Corporation (or its predecessors) or Government and the concessions in rent, taxes etc. granted by the Corporation (or its predecessors) for the immediately preceding three financial years.

(vi)Balance sheets for the immediately preceding three financial years.

(vii)The fees, subscription etc. charged to the public or members for taking the benefit of the Association or Institution.

(viii)Copy of registration Certificate.

(b)In the case of new institutions applying for a grant for the first time, the requirements under (v) and (vi) above may, where inevitable, be confined to the immediately preceding year only. (Thus no institution, which by the last date for application, has not completed at least one year of activity will be eligible for a grant).

1. The Commissioner shall scrutinize the applications received and as soon as possible and in any case, not later than the 31st August succeeding put up before the Corporation through the Grants-in-Aid Committee a tabular statement giving briefly, the particulars mentioned at (a) and (b), in para 9 and his recommendations in respect of each institution.
2. The Corporation shall consider and pass orders on the Commissioner’s proposal as soon as possible and, in any case, not later than the 15th of October.
3. The grants decided upon shall be disbursed within 15 days of the date of Resolution of the Corporation.
4. Nothing in Paras 9 to 12 shall preclude the Corporation, in exceptional cases from considering and passing orders on requests for the payment of grant in advance, monthly or quarterly from Associations or Institutions, which would otherwise be seriously handicapped in carrying on their activities. Applications with such requests should be made, with all the particulars specified in para 7 by the 30th April of a year, and must explain the reasons for which an exception to the annual basis of payment of grants is desired.
5. An institution to which a grant is sanctioned must agree to:-

(a)the inclusion of one representative of the Corporation on its Board of Management if the amount of grant is upto Rs.1000/- , and two or more representatives of the Corporation on its Board of Management if the amount of grant exceed Rs. 1000/-.

(b)the submission, for the information of the Corporation of the annual report and audited balance sheet for the previous year certified by a recognized auditor or a firs of recognized auditors before the 31st each year. In the case of small institutions receiving a grant-in-aid not exceeding Rs. 500 per annum, the audit of accounts by recognized auditors will not be insisted upon; and

(c)allow inspection of accounts and documents whenever required by the said representative or representatives of the Corporation.

1. A grant shall be subject to reconsideration every year;
2. The representative or representatives of the Corporation on the Board of Management of an Association or Institution to which grants are given shall submit to the Corporation their reports on the work and progress of the institutions during the year for which the grants are made.
3. Recognition may be withdrawn for that year by the Municipal Corporation of Delhi from any association or institution, if the Association or institution violates or ceases to fulfill any of the conditions of recognition.
4. The recognition of an association or institution shall lapse if:-

(a)a recognized institution or association ceases to exit; or

(b)an association or institution is transferred to a building or locality not already approved by the Municipal Corporation of Delhi.;

(c)The association or institution is transferred to a different managing body not already approved by the Corporation.

Note:- Changes in the personnel of managing body due to ordinary annual elections will not constitute a breach of this clause.

(Resolution No. U.B. 29 of Special Meeting of the MCD held on 5-9-58).

Note:- The resolutions passed by the Grants-in-Aid Committee are to be placed before Corporation direct, not through the Standing Committee.

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