Chapter-6 Army Welfare Fund
29. Establishment and operation of welfare fund:
(1) A welfare fund may be established for the welfare of incumbent and ex-personnel of the Nepal Army and their families.
(2) The following amounts shall be credited to the Fund as referred to in Sub-section (1):
(a) The amounts deducted in the prescribed percentage from the fund received for rendering service by the
Nepal Army while deployed in peace keeping missions in any part of the world on the request of the United
(b) The amounts saved from meeting the cost of welfare activities which are conducted from the interest of the
fund deposited in various Banks and financial institutions,
(c) The income amounts received from the investment on welfare activities as prescribed.
(d) The amounts deposited as the principal amount in various banks and financial institution from Aashad
2032 B.S. to the date of commencement of this Act and the interest received from those amounts.
(e) The movable and immovable property of the institutions prescribed by the Army Headquarters and
amounts increased therefrom.
(f) The movable and immovable property being used by the Nepal Army and amounts increased therefrom.
(3) There shall be a Seven member Army Welfare Fund Operation and Management Committee as following, to operate the welfare fund pursuant to Sub-section (1) comprising:-
(a) Chief of Army Staff Chairperson
(b) Two persons nominated by the Patron from amongst the serving and ex- Member
(c) Two persons nominated by the Chief of Army Staff from amongst the serving and ex-military officers Member
(d) Representative from the Ministry of Finance (gazetted first class officer) Member
(e) Representative from the Ministry of Defence (gazetted first class officer) Member
(4) There shall be a Welfare Planning Directorate in the Army Headquarters to assist the daily functions of the Committee. The functions, duties and powers of the Directorate shall be as prescribed.
(5) The amount as accumulated in the Fund pursuant to Sub-section (2) shall be expended for the welfare of serving and ex-personnel of the Nepal Army and their families.
Explanation: For the purpose of this Section “family” means husband or wife, son, daughter and mother and father; as well as mother-in- law and father-in-law in the case of female employees; whom the retired or
incumbent employee of the Nepal Army is responsible for taking care, 30. Patron of the welfare fund: The Prime Minister shall be the patron and the Minister of Defence shall be the joint patron of the fund.
31. Functions, duties and powers of the Committee : The functions, duties and powers of the Committee shall be as follows:
(a) To formulate, implement, coordinate and monitor on welfare activities, income generating activities as prescribed and welfare planning,
(b) To carry out welfare activities as required to the family of the Army personnel who were killed or seriously injured (Angabhanga) at the time engaging in the military activities,
(c) To reduce, increase or remove facilities and concessions under the welfare acts,
(d) To formulate and implement the procedures and guidelines relating to the welfare activities, income generating activities and welfare planning as required,
(e) To carry out welfare activities on the land and physical infrastructures of the Nepal Army upon entering into the
agreement with the Army Headquarters,
(f) To form administrative, financial and technical unit for welfare activities, income generating activities and welfare planning, to appoint necessary human resource for such unit and prescribe their terms of service and remuneration as per necessity,
(g) To appoint experts for the effective implementation of the welfare activities, income generating activities and welfare planning, and prescribe the terms of service and remuneration,
(h) To depute military personnel as per necessity for the security where welfare activities, income generating activities and welfare planning are launched,
(i) To receive, purchase, rent, use and sell movable and immovable property subject to this Act,
(j) To carry out other functions as prescribed.
32. Account of fund and audit:
(1) An account of daily income and expenditure of the fund shall be maintained in accordance with prevailing
law and the internal audit of the fund shall be made as prescribed by the committee.
(2) The final audit of the fund shall be made by the office of the Auditor General.
33. Submission of annual report: The Committee shall submit a report including income, expenditure and progress details to the patron, and provide a copy of it to the State Affairs Committee of the legislature every
34. Delegation of powers: The Committee may delegate some of its powers conferred on it pursuant to this Chapter to the Welfare Planning Directorate as per necessity.
35. Situations for depriving from facilities and concessions:
(1) In the following circumstances the serving and ex-military personnel and their families may be deprived fully or partially of their entitlement to facilities and concessions relating to programmes conducted under the welfare
(a) If acts detrimental to the Nepal Army are proved to have been committed,
(b) If acts contrary to the Constitution and this Act is proved to have been committed,
(c) If the misuse of facilities and concessions entitled in pursuant to this Chapter is proved to have been
(d) If a penalty is imposed on an offence against state.
(2) Notwithstanding anything contained in Sub-section (1), only the serving or ex-military personnel or their family member who has committed an act referred to in 12 Sub-section (1) shall be deprived of the
entitlement of facilities and concessions relating to programmes conducted under the welfare activities.
36. Other arrangements: Other arrangements regarding the use, operation and management of the Army Welfare Fund shall be as prescribed