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Govt. Grant

Ketan Sain (Mcom) (2 Points)

24 May 2025

Can we create a FD in Gaushala by the amnt of 2 cr. Which was given by government as a grant

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Rama chary Rachakonda (Master in Accounts & high court Advocate email ID:ramachary64@gmail.com voice no:9989324294) (8196 Points)
Replied 25 May 2025

Creating a Fixed Deposit (FD) with funds received as a government grant for a Gaushala (cow shelter) can be a viable option for managing the funds effectively. Here are some points to consider:

Purpose of the Grant - *Grant Purpose*: Ensure that the grant is specifically meant for the Gaushala's welfare and that creating an FD aligns with the grant's purpose. Utilizing the Funds -

*FD Creation*: If the grant is for a specific purpose, such as animal welfare or infrastructure development, and creating an FD will help achieve that purpose in the long run, it might be a good option.

*Grant Compliance*: Verify that creating an FD with government grant funds complies with any regulatory requirements or conditions attached to the grant. Benefits of FD -

*Earning Interest*: An FD can earn interest, which can be utilized for the Gaushala's future needs or expenses. -

*Fund Management*: An FD can help manage the funds effectively, ensuring that they are utilized for the intended purpose.

By considering these factors, you can make an informed decision about creating an FD with the government grant funds for the Gaushala.

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Areeba Nishat (20 Points)
Replied 27 May 2025

Utilizing government grant funds, such as the ₹2 crore received for the Gaushala, is typically subject to specific terms and conditions outlined in the grant agreement. In most cases, grants are meant to be used directly for the purpose intended—such as infrastructure, feed, healthcare, or welfare of the cattle—and not for creating Fixed Deposits (FDs), unless explicitly permitted.

Before creating an FD with this amount, it is essential to review the grant documentation or consult with the relevant government department to ensure compliance. Misuse or diversion of grant funds can lead to legal or financial repercussions.