Special Fund (Maharashtra) For Reconstruction and Rehabilitation of the Ex-Servicemen

Brief History:-

This fund was created out of contributions from National Defence Fund and Defence service estimates in 1966 for reconstruction and rehabilitation of ex-servicemen. Services Post War Re-construction (SPWR) Fund, which was raised during II World War, was amalgamated in Special Fund (Maharashtra). Presently 40% amount of the Flag Day collection of this State is credited to this fund every year.

Administration of the Fund:-

Kendriya Sainik Board has laid down the policy and rules for management of this fund vide Ministry of Defence Notification dt 27 Sep 1966, SRO-234 (As amended). The salient points notified in the S.R.O. 234 (As amended) for administration of the fund are given below:-

Objects of the Fund.

The objects of the Fund are: -

  1. to award stipends to Ex-servicemen for technical, managerial, vocational or agricultural training at recognized training institutions.
  2. to sanction grant on loans to co-operative societies or other associations of Ex-servicemen for schemes and projects of resettlement that is to say, horticulture, animal husbandry, industry, transport and the like.
  3. to sanction scholarship or grants to dependents of ex-servicemen and children of deceased service officers upto the maximum age of 25 years for higher studies in India beyond High School or Higher Secondary stage in Technical, Vocational or Agricultural education at Govt recognized institutes, the sanction of such scholarship being subject to satisfactory performance in such courses of studies by the recipients.
  4. to sanction expenditure on special measures of a collective nature for the maintenance of old and destitute Ex-servicemen or widows of Ex-servicemen.
  5. to grant loans to individual Ex-servicemen for starting industries or business undertaking.
  6. to do all other things to promote measures for the benefits of Ex-servicemen and their dependents.

In our case the objects have been divided in to two funds i.e. Special Fund & Benevolent Fund.

State Managing Committee.

  1. Subject to the general policy and direction of the Central Managing Committee which will inter alia specify the type of the schemes which will qualify for grant and loans from the Fund. State/Union Territory Managing Committee shall be constituted for the Management and administration of the State/Union Territory Funds. A State/Union Territory Managing Committee shall consist of the following:

  2. Chairman

    (i) Governor/Lt. Governor/Chief Commissioner/Administrator.

    First Vice –Chairman

    (ii) Chief Secretary or a Senior Officer of the State Govt or Administration of the status of Secretary deputed by him as his representative.

    Second Vice-Chairman

    (iii) GOC of an Area, or an Army Officer of the same rank or Commander of an Independent Sub Area, or an Officer of corresponding rank in the Navy or in the Air Force to be nominated by the Chiefs of the Staff Committee.


    (iv) One Ex-Servicemen Officer residing in the State/Union Territory nominated by the Chiefs of the Staff Committee.

    (v) Persons not exceeding two in number, having interest in the Welfare of the Ex-Servicemen nominated by the State Govt/ Administration.

    (vi) Representative of Ministry of Defence

    (vii) The State/Union Territory Managing Committee shall have powers to co-opt any other person as member but such co-opted member will have no right to vote.

  3. The Secretary to the State/Union Territory Soldiers', Sailors' and Airmen's Board shall be the Secretary to the State/Union Territory Managing Committee. Any other Officer may be appointed as the Secretary with the previous approval of the Central Govt.
  4. Change in the composition of the State/Union Territory Managing Committee may be made with the previous approval of the Central Govt.


  1. When a person becomes a member of the Central or State/Union Territory Managing Committee by virtue of the office or appointment he holds, his membership will terminate when he ceases to hold such office or appointment.
  2. Subject to Clause (a), the tenure of Nominated members shall be two years. A member shall be eligible for re-appointment.

Application of the Fund.

Subject to the provisions of the Charitable Endowments Act 18, the Central or State or Union Territory Managing Committee shall have the power to control and administer the Fund and to apply the same or any part thereof as they may consider necessary having regard to the object to the Fund.

Framing of Bye-Laws.

The Central, State or Union Territory Managing Committee may make bye-laws for the detailed regulation, management and any other purpose connected with the execution of the Fund and the Trustee thereof and may after, vary or rescind the same from time to time.


As per the instructions contained in Ministry of Defence Notification dt 27 Sep 1966, SRO-234 (As amended) a Committee was constituted for managing this fund known as “State Managing Committee of Special Fund (Maharashtra) for Rehabilitation and Reconstruction of Ex-Servicemen” vide Home Department Notification No SB. II/SSF.1064/24586 dt 29 Jul 1968, published in the Government of Maharashtra Gazette Notification dt 10 Oct 1968. The organization chart of the committee is given on page No 34. His Excellency the Governor of Maharashtra chairs this committee. The State Managing Committee monitors the activities of Special Fund & meets once in a year to take policy decisions with regard to the hostels run for the children of war widows, widows of ex-servicemen and ex-servicemen.


The construction, maintenance and running of the hostels on the line of war memorial hostels run by the army is the major scheme run from the Special Fund. There are 33 boys and 17 girl’s hostels. The details of hostels in the state are given on page 53. This facility is only available in the state of Maharashtra at all university/district headquarter locations for the wards of ex-servicemen and widows.

The construction and maintenance of Rest Houses at major locations is the another scheme. The details of Rest Houses given in under the head of About DSW-Militarisation.

The following schemes are also run from the Special Fund:-

  1. Queen Mary’s Technical School. Dependents of ex-servicemen and disabled ex-servicemen taking training in Queen Mary’s Technical School is re-imbrued full fee up to Rs 1800/- per year.
  2. Hostel Fees. Dependents of ex-servicemen who do not get admission in military hostels or due to non-availability of hostels in particular station, staying in college/school hostels, is reimbursed up to Rs. 800/- per months towards hostel fees. (This concession has been extended to the dependents of ex-servicemen studying in professional colleges irrespective of the facts that they stay in college hostels or make their own arrangements)
  3. Recurring and non-recurring expenditure of hostels and Rest Houses run under the aegis of this Department.


The Welfare and rehabilitation of ex-servicemen is undertaken from the Flag Day Fund collected every year. The Flag Day Fund is collected throughout the State of Maharashtra from 07th December onwards for welfare of War Widows and ex-servicemen. The Flag Day Fund collection is distributed to Benevolent Fund and Special Fund. 60% of the total Flag Day Fund collection is transferred to Benevolent Fund under the Chairmanship of Hon’ble Chief Minister and 40% to the Special Fund under the Chairmanship of His Excellency, the Governor. (Approved in 42nd Meeting of the State Managing Committee of Special Fund (Maharashtra) for Reconstruction and Rehabilitation of the Ex-servicemen held on 16 Apr 2005). The welfare schemes like financial assistance, medical assistance and educational assistance are financed from the benevolent fund while the expenditure for Hostels and Rest Houses is met from the Special Fund.

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