(1) Subject to the provisions of the Act these rules and the rules made by the Central Government relating to revenue and expenditure for the time being in force the Board may incur such expenditure as it may think fit or items provided for the within the amounts sanctioned by the Central Government in the budget.
+ (2) The Board may write off losses incurred by it upto rupees ten thousand, if the loss is due to theft, fraud and negligence in any single case, and upto rupees twenty thousand in any single case, where such loss relates to public money, departmental revenue or receipts, stamps, stores or other property held by or on behalf of Board, subject to observance of general conditions on the subject issued by the Central Government from time to time. The total amount in writing off losses in any year shall not exceed rupees one lakh. Write off losses beyond this amount shall be done with the prior approval of the Central Government.
* Inserted vide Tobacco Board (Second Amendment) Rules 1976 vide Gazette of India, Part-II, Section-3(i), Dt. 1-11-1976.
+ Amended vide Tobacco Board (Second Amendment) Rules 1988 published in the Gazette of India Extraordinary Dt.21-12-1988 (2-A) While writing off losses under sub-rule (2), the Board shall have regard to the following factors namely :-
(i) the loss does not disclose a defect in the rules made by the Central Government or the regulations made by the Board under section 33 or the procedures followed by the Board;
(ii) the rule does not disclose any defect in complying with the rules, regulations or procedures referred to in (i) above;
(iii) the loss is not attributable to any serious lapse or negligence or dereliction of duty on the part of any employee of the Board and in cases where the loss is attributable to such lapse, negligence or dereliction of duty on the part of any employee of the Board there are good and sufficient reasons for not releasing the amount of such loss from the employee;
(iv) if the loss of nay property is due to fire, flood, earth-quake, cyclone or any other natural cause, it has been ensured that the facts were promptly reported, and proved to the entire satisfaction of the Board that the loss was unavoidable in the aforesaid circumstances.
(3) Re-appropriations between sub heads under heads of expenditure may be made by the board.
(4) The Board shall not incur expenditure outside India in excess of fifteen thousand rupees on any single item without the previous sanction of the Central Government.