THE ALL INDIA SERVICES (CONDUCT) RULES, 1968

RULE 13. PRIVATE TRADE OR EMPLOYMENT:

Government of India Decisions

Whether a member of the service could accept royalty of the publication of a book of literary, artistic, or scientific character.

(1) A question arose, whether a member of the service could accept royalty of the publication of a book of literary, artistic, or scientific character and also whether such royalties were to be treated as 'Fee' under supplementary Rule 12. It has been decided that the income from literary, cultural or artistic efforts, which are not aided by the knowledge acquired by the member in the course of his service, is not `fee' for the purpose of SR 12 and can be retained by the officer in full. In other cases, SR 12 will apply and 1/3rd or the amount above Rs. 250 will have to be credited to the Consolidate Fund of India/State.

[G.I. M.H.A. letter No. 16/12/59-AIS (III), dated 15th June, 1959]

Member of the Service becoming a member of any Co-operative Society.

(2) There is nothing in this rule prohibiting a member of the Service from becoming a member of any Co-operative Society.

[G.I. M.H.A. letter No. 8/50/61-AIS (III), dated 29th November, 1961]

Permission to continue, as a sleeping partner to keep their interests alive in the joint family concern.

(3) Instances have come to the notice or the Government of India, when members of the service sought permission to continue, as a sleeping partner to keep their interests alive in the joint family concern or otherwise. As a rule the Government are averse to the continued association of an all India Service Officer with a commercial firm in his own State of Allotment.

[G.I. M.H.A. letter No. 8/6/63-AIS (III), dated the 15th May, 1963]

Secretaries of the Government of India associating with the Public Sector Undertakings, as members of Board of Directors.

(4) Instances have come to the notice of the Government in which the Secretaries of the Government of India have associated themselves with the Public Sector Undertakings, as members of their Board of Directors.

2. [Deleted vide D.P & A.R letter No. 11017/6/79-AIS (III), dt. 10-9-79]

The matter has been carefully considered in this Department and with the approved of Prime Minister, Secretaries to Government need not be appointed to the Boards of Public Sector Undertakings or in such companies with which Public Sector Undertakings are intimately involved.

4. A question was referred to the Government of India whether, wives of All India Service Officers, should be permitted to enter into business or become partners in firms of a commercial nature.

[M.H.A. letter No. 8/62/64-AIS (III), dated 14-1-1965]

Whether a member of an All India Services could enroll himself with bar association.

(5) A question has arisen whether a member of an All India Services could enroll himself with bar association. It has been decided that a member an All India Services can permitted to enroll himself as an advocate, on condition that he should not engage himself in the legal profession either independently or otherwise for so long as he continues in Government Services.

[DP&T No. 11017/55/92 AIS (III), dated 22/12/92]

Seeking election to a University Senate.

(6) Seeking election to a University Senate is neither in the scheme of social nor literary work. In fact the work of the University Senate itself cannot be regarded as of social or literary character. In a large number of Universities, elections to the Senate are hotly contested by nominees of the major political parties and the senate bodies are considered another forum for political activity.

In view of the considerations mentioned above it has been decided that elective post of the nature referred to above should not be held by the members of the All India Services and that they may be discouraged from seeking such election.

[M.H.A. letter No. 8/88/65-AIS (III), dated 8-12-1965]

Contesting the elections for the elective post on the Executive Council of Indian Institute of Public Administration, New Delhi.

(7) The Government of India have no objection if the members of the All India Services contest the elections for the elective post on the Executive Council of Indian Institute of Public Administration, New Delhi under rule 4 of the All India Services (Conduct) Rules, 1954.

[M.H.A letter No. 9/3/66-AIS (III), dated 28-3-1966]

(8) [Cancelled vide DP & AR letter No. 11017/50/80-AIS (III), dated 15-10-1982]

Nomination/appointment to specific executive semi-executive positions under the State Governments.

(9) Instances have come to notice where members of All India Services while on Central deputation have been nominated/appointed to specific executive semi-executive positions under the State Governments. Not only does this practice create avoidable embarrassment, it is also contrary to the rules. According to sub-rule (1) rule 13 of the AIS (Conduct) Rules read with clause (a) of rule 12 ibid no member of the Service serving in connection with the affairs of the Union, or serving under a foreign Government or outside India whether on duty or on leave, shall, except with the previous sanction of the Central Government undertake any employment under a State Government. In view of these provisions State Government are not competent to nominate or appoint any member of the AIS on Central deputation to any executive or semi-executive positions under the State Government without the specific approval of the Central Government. The concurrence of the Central Government cannot be presumed. The basic assumption is that the entire time of a Government servant, particularly a senior one, should be available to the Central or State Government depending on where he is working. Moreover, it is necessary that while an officer is serving in the Government of India, he is not subject to any kind of control by a State Government.

2. If an officer in a State Government is holding certain positions in the State, it is not necessary that he should continue to do so, even when he comes on deputation to the Centre. For one thing, he will be able to devote the same time which he may have done while he was in the State and this may be against the interest of the institution(s) with which he was associated. For another, such step may tend to cause demoralization amongst officers in the State as it implies that there is no one competent enough to take over the responsibility.

3. For the above reasons, it has been decided that, as a matter of principle, members of the All India Services who are serving at the Centre will not be permitted to occupy executive or semi-executive position under a State Government or Public sector organisation etc. controlled by the State Government except, where they are nominated by the Central Government to represent the interests of that Government.

[D.P & A.R letter No. 11017/10/78-AIS (III), dated 20-7-1978]

Engaging directly or indirectly in any trade or business or negotiate for or undertake any employment.

(9A) Rule 13(1) of All India Services (Conduct) Rules, 1968 as amended by this Department's Notification No. 5/23/72-AIS (III), dated, the 27th July, 1974 provides that no member of the service shall except with the previous sanction of the Government, engage directly or indirectly in any trade or business or negotiate for or undertake any employment. The powers of the Central Government under this rule are exercisable by the Department of Personnel and Administrative Reforms as these powers have not been delegated to the administrative Ministries/Departments. The Ministry of Finance etc. are therefore, requested to ensure that proposals for grant of permission under this rule to the members of the All India Services working in, or under, them are invariably referred to this Department for prior concurrence.

[Department of Personnel and A.R. O.M. No. 11017/3/75-AIS (III), dated 9-4-1975]

Grant of permission under the second proviso to sub-rule (3) of rule 13.

(10) In supersession of the orders contained in the Department of Personnel and A.R letter No. 5/20/72-AIS (III), dated 25th May, 1973, No. 11017/39/78-AIS (III), dated the 28th December, 1978 and No. 11017/7/79-AIS (III), dated the 5th September, 1979, it has been decided that each case for grant of permission under the second proviso to sub-rule (3) of rule 13 of the All India Service (Conduct), Rules, 1968 should be decided on merits.

[G.I. M.H.A. DP & AR letter No. 11017/50/80-AIS (III), dated 6th February, 1981]

Surety/guarantee to a loan being taken by his wife for business purposes.

(11) A question was raised whether an All India Service Officer can stand surety/guarantee to a loan being taken by his wife for business purposes.

2. It has been clarified that members of the All India Service should not stand guarantee/surety for loans taken by their relatives for business purposes as in this way indirect interest in business and financial commitments are created attracting the provisions of Rules 13 and 15 of the All India Services (Conduct) Rules, 1968.

[G.I. DP & AR letter No. 11017/46/82-AIS (III), dated 4th September, 1982]

Member of family engaging in a trade or business, or owns or manages an insurance agency or commission agency.

(12) Under sub-rule (2) or rule 13 or the All India Service (Conduct) Rules, 1968, every member of the Service shall, if any member of his family is engaged in a trade or business, or owns or manages an insurance agency or commission agency, report that fact to the Government. It is, however, noticed that in a number of cases in the past, members of the All India Services did not furnish details relating to the trade/business started by their family members while making their reports to the Government under the aforesaid sub-rule with the result that Government had no information in this regard. Hereafter whenever a report is made by a member of the All India Services (Conduct) Rules, 1968, elementary details like nature of and name under which trade/business is being done, its location, whether with or without partners, amount invested and the source of the amount invested etc. should invariably be furnished.

[G.I. M.H.A., D P & A R letter No. 11017/15/79-AIS (III), dated 30th July, 1979]