State Government has introduced an alternative system for individuals to produce solvency certificate to take up contracted Government works.
Solvency certificate issued by revenue authorities is used as an instrument to certify the solvency of a person who undertakes works or functions.
These are usually taken up in departments such as civil supplies, excise, public works and water resources. The market value of the landed property of the individual is assessed by the revenue authorities and necessary entries made in the revenue records.
But the individual who submits the solvency certificate cannot sell the property without cancellation of the solvency certificate in force.
The Government had received suggestions from many quarters for an alternative system, a notification said. It has since approved the alternate system instead of production of solvency certificate ‘wherever so required,’ it added.
Treasury fixed deposit certificate pledged in favour of the Government department or agency concerned will now be accepted as sufficient proof for solvency.
In such cases, a certificate has also to be produced from the treasury officer along with the treasury fixed deposit certificate.
This certificate should state that the deposit will be released only after getting a clearance from the department to which it is pledged.
It should also be accompanied by a declaration from the depositor to the effect that no claim would be made on the treasury fixed deposit on the principal of the sum or interest thereon.
Only exception is when an express written sanction of the officer to whom the treasury fixed certificate is pledged is made available.