The Ministry of Finance has released a new Office Memorandum dated 24 October 2025, reminding all Ministries, Divisions, Departments, and Organizations to strictly follow the approved procedure for hiring private properties for official use. The circular highlights repeated violations and sets clearer expectations moving forward.
What new instructions has the Ministry of Finance issued about hiring private properties for office use?
Short featured-snippet answer (45 words):
The Ministry of Finance has directed all Ministries and Divisions to strictly follow the approved procedure for hiring private properties. No lease agreement with any private party can be made without prior permission from the Finance Division, and no ex-post-facto approval will be granted in future.
Why the New Reminder Was Issued
According to the memorandum, earlier instructions issued through O.M. No. F.8(69)R.14/83/2001-452 dated 18.10.2001 were not being fully followed. Several cases surfaced where departments entered into lease agreements or forwarded proposals after an audit objection, bypassing the required process.
The Finance Division noted that some organizations were even seeking approvals after signing agreements, creating compliance issues. This prompted the Ministry to reiterate the rules.
Strict Instructions to All Ministries and Divisions
The circular clearly states that:
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All departments must comply with the official hiring procedure for private properties.
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No lease agreement with a private party should involve higher rental rates than those allowed by the Ministry of Housing & Works.
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No agreement should be signed without prior approval from the Finance Division, specifically the Regulation Wing.
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In future, no ex-post-facto approvals will be granted.
These directions aim to ensure transparency, financial control, and compliance with existing regulations.
Approval Requirements for New or Increased Rent
Any new hiring or increase in rent beyond the approved limit must be sent to the Finance Division (Regulation Wing). Proposals must come through the concerned JS-Exp with proper approval from the Secretary of the relevant Ministry or Division.
All proposals must include complete documentation as per the prescribed procedure.
Mandatory Documents Required with Each Proposal
The Finance Division has made it clear that incomplete proposals will not be processed. The required documents include:
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Consent of the property owner
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Statement of space entitlement
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Details of sanctioned strength of officials, approved by Ministry of Housing & Works
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Hiring particulars on Standard Format signed by a Grade-20 officer or equivalent
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Authentic map of the premises
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Copies of previous lease agreements (if rent is being increased)
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A self-contained note with recommendations of the concerned JS-Exp
Any proposal missing these documents will be returned at the initial stage without review.
Authority and Approval
The circular concludes with a note that the instructions have been issued with the approval of the Finance Secretary.
