Verification of sureties :

In respect of surety bonds, periodical verification, preferably on an annual basis will be made by the jurisdictional Central Excise Officers so as to ensure the sureties are financially sound, solvent and alive. The enquiry to verify the financial stability of the sureties will be made by any of the following methods:

(i) By reference to the surety’s bankers.

(ii) By making personal enquiries and ascertaining whether the surety possesses a house or other immovable property, industrial equipment, shop etc. which would cover the bond amount. Alternatively, the sureties may themselves be asked to furnish a list of their property, which may be verified by the Officer.

(iii) By reference to Revenue Officer not below the rank of Tahsildar or a Mamalakdar.

(iv) The result of enquiry as well as the solvency of the surety should be incorporated in the records of the Department.