Corruption act and vigilance matters 4.1 & 4.2

Vigilance Matters/Conduct Rules, disciplinary proceedings and Preventions of Corruption Act.

By Shankar Bose, Inspector of Income-tax, MSTU, Puri

SESSION OVERVIEW

Corruption is one of the most damaging consequences of poor governance. It undermines investment and economic growth, decreases the resources available for human development goals, deepens the extent of poverty, subverts the judicial system, and undermines the legitimacy of the state. In fact, when corruption becomes entrenched, it can devastate the entire economic, political, and social fabric of a country.

There is an urgent need to create a zero tolerance for corruption, which must be embedded in legislative frameworks. Corruption continues until the corrupt are caught and punished. In this session we will be discussing salient features of Prevention of Corruption Act, 1988, to understand the formal statute so as to enforce the laws fairly.

We will also discuss the provisions of CCS (Conduct) Rules, 1964 relevant to vigilance matters and various orders/ instructions issued by GOI/ CVC/CAG on the matter.

Under the CCS (Conduct) Rules, a Government servant is expected to maintain absolute integrity, show devotion to duty and not exhibit conduct unbecoming of a Government servant, as already explained in the earlier session devoted on the subject of CCS (Conduct) Rules. By now we are aware that the Conduct Rules require all Government servants to maintain certain standards of discipline and decorum. Abuse of authority is a serious violation of both the Conduct

Rules and provisions of Prevention of Corruption Act.

LEARNING OBJECTIVE

In this session the participants will understand their rights and the role that they can play in fighting corruption. The lesson aims to launch a systematic campaign against corruption by involving all members of an organization in fighting this social evil and to educate them about the dangers of corruption and sensitise them about the evil consequences of corruption.

A. PREVENTION OF CORRUPTION ACT, 1988

1. Basic concept

1.1 Corruption is defined as the use of public office for private gain. When it becomes entrenched and systemic, its negative influence on economic and social development multiplies. Fighting corruption has therefore, become a rhetorical, rather than an actual priority. The legal framework, aiming at a substantial elimination of major sources of corruption, is laid down in Prevention of Corruption Act, 1988.

1.2 The present Act consolidates the provisions of Prevention of Corruption Act, 1947, Section 161 to 165A of the Indian Penal Code (IPC), and Criminal Law (Amendment) Act, 1952. The sole idea is that the relevant provisions are brought in the single Act, which will make it convenient to refer to the various provisions of the



Act more effectively to curb the menace of corruption among the public servants.

1.3 Criminal misconduct, referred as offence under the Act, includes when the public servant misappropriates the property entrusted to him. When he obtains a valuable thing by abusing his official position and when he is in possession of disproportionate assets to the known sources of his income. Habitual bribe taking increases the gravity of the offence under IPC. Abuse of office is another criminal misconduct. When a public servant obtains a valuable thing or pecuniary advantage by corrupt or illegal means or by abusing his official authority, he commits a criminal misconduct.

2. Date of effect

2.1 The Act received the consent of the President of India on September 9, 1988(Act, No, 49 of 1988) and came into force on that date.

3. Applicability

3.1 The Act extends to the whole of India except the State of Jammu and Kashmir and it is applies also to all citizens of India outside India.

B. PREVENTION OF CORRUPTION ACT, 1988 - Salient Features

1. The essential feature of this Act is that it makes it obligatory for the Court to make certain presumptions of guilt against the accused. It is radical departure from the normal rule under

which the prosecution is required to prove ‘beyond doubt’ all the ingredients of an offence.

1.1 Prevention of Corruption Act, 1988, hereinafter referred as ‘the Act’ consists of 31 sections covering different authorities, offences and the punishments. The Act is divided into five Chapters.

2. Chapter I

2.1 This is preliminary chapter. Section 1 gives extent of the Act and Sec 2 defines various terms used in the Act.

2.2 The term ‘public servant’ as contained in section 21 of IPC has been enlarged to include a large number of employees within the ambit of definition by incorporating sections 2(c)(iii) and 2(c)(ix) covering employees of Nationalised Banks and office bearers of Co-operative societies of the Central and State.

3. Chapter II

3.1 It deals with the appointment of special judges, the procedure and their powers.

3.2 Section 3 - It empowers Central Government and State Government to appoint Special Judges to try the following offences :-

i) any offence punishable under this Act; and

ii) any conspiracy to commit or any attempt to commit or any abetment of any of the



offences specified in (i) above.

3.3 The judges can be as many as required for an area and for given group of cases.

3.3 The appointment is to be done by way of notification in the Official Gazette.

3.4 Eligibility - In order to be eligible for appointment as a special judge the person has to be a Sessions Judge or an Additional Sessions Judge or an Assistant Sessions Judge under the Code of Criminal Procedure (sec 2 of 1974) (in short CrPC).

3.5 Section 4 - This section specifies the jurisdiction of the special Judges appointed in sec 3. The important aspects of the section are-

i) it states that offences described in sec 3 are to be tried by Special Judges only.

ii) the jurisdiction of the Special Judge will be as per the area assigned/ the case assigned to them.

iii) the Special Judge also has powers to try any offence, other than an offence specified in sec 3, with which the accused may, under the CrPC, may be charged at the same trial.

iv) the trial should be held on day to day basis.

3.6 Section 5 - This section describes the procedure to be followed and the powers of Special Judge-

i) A special judge can take cognizance of offences without the accused being committed to him and shall follow the CrPC for the trial of warrant cases by Magistrate.

ii) The special judge, with a view to obtaining the evidence of any person supposed to have been directly or indirectly involved in an offence, may tender a pardon to such person on condition of his making a full a true disclosure of the whole circumstances relating to the offence.

iii) The section further elaborates that provisions of CrPC shall apply to the proceedings before the Special Judge. He will act in the capacity of a Magistrate and is empowered to pass any sentence, authorized by law, for punishment of the offence of which a person is convicted.

3.7 Section 6 - This section authorises Special Judge to conduct a trial in a summary manner, in cases where violation of section 12-A(1) of Essential Commodities Act, 1955, has taken place; and pass upon any person a sentence of imprisonment for a term not exceeding one year. The convicted



person will not have any right to appeal against such summary trial if the term of imprisonment does not exceed one month and fine not exceeding two thousand rupees. In cases where the sentence is in excess of the said limits, appeal shall lie against such trials.

4. Chapter III

4.1 This chapter is dedicated to actions amounting to offence and the relevant penalties which they attract in case of violation of the laid norms.

4.2 Section 7 - If a public servant is charged with accepting any gratification other than legal remuneration in respect of an official act, as a motive or reward for doing any official act or showing any favour or disfavour to any person in official function; he shall be punishable with imprisonment which shall not be less than six months but which may extend to five years and shall also be liable to fine. It would be seen that a minimum sentence of six months has been made mandatory and fine is no more optional before the Courts.

4.3 Section 8 - Accepting or attempting to obtain any gratification by corrupt or illegal means, to do any official act is punishable with imprisonment which shall not be less than six months but which may extend to five years and shall also be liable to fine.

4.4 Section 9 – Accepting or attempting to obtain any gratification for exercise of personal influence with public servant, to do any official

act, is punishable with imprisonment which shall not be less than six months but which may extend to five years and shall also be liable to fine.

4.5 Section 10 - If any public servant abets the offences defined in sec 8 & 9, he shall be punishable with imprisonment which shall not be less than six months but which may extend to five years and shall also be liable to fine.

4.6 Section 11 - If any public servant obtains valuable thing, without adequate consideration from person concerned in proceeding or business transacted by such public servant, he shall be punishable with imprisonment which shall not be less than six months but which may extend to five years and shall also be liable to fine.

4.7 Section 12 - This section defines the punishment for abetment of criminal offences defined in sec 7 & 11. The charged person shall be punishable with imprisonment which shall not be less than six months but which may extend to five years and shall also be liable to fine.

4.8 Section 13 - This section defines actions which can be described as criminal misconduct:-

i) if the public servant is habitual defaulter under section 7 of ‘the Act’; or

ii) if he is habitual defaulter under section 11 of ‘the Act’; or



iii) if he dishonestly or fraudulently misappropriates any property entrusted to him or under his control as public servant; or allows any other person to do so; or

iv) if he obtains for himself or for any other person any valuable thing or pecuniary advantage-

a) by corrupt or illegal means, or

b) by abusing his position.c) while holding office as

public servant

v) if he is in possession of pecuniary resources or property disproportionate to his known sources of income.

criminal misconduct shall be punishable with imprisonment for a term which shall be not less that one year but which may extend to seven years and shall also be liable to fine.

4.9 Section 14 - Habitual committing of criminal offence under section 8, 9 and 12 is punishable with imprisonment for a term which shall be not less that two years but which may extend to seven years and shall also be liable to fine.

4.10 Section 15 - Any attempt to commit an offence referred in section 13 shall be punishable with imprisonment for a term which may extend to three years and shall also be

liable to fine. It can be seen that the section provides compulsory imprisonment which may extended up to three years.

4.11 Section 16 - Where a sentence of fine is imposed under section 13 or 14, the court shall take into consideration the amount or the value of the property which the accused has obtained by committing the offence.

5. Chapter IV

5.1 This chapter describes the investigation authorities authorised to investigate offences under ‘the Act’ and the limits of their powers. 5.2 Section 17 - In terms of Section 17 of the Prevention of Corruption Act, 1988, an offence punishable under the PC Act can be investigated by a police officer not below the rank of an Inspector of Police in the Metropolitan areas and a DSP or a police officer of equivalent rank elsewhere. Further, every person, aware of the commission of, or of the intention of any other person to commit any offence, punishable under various sections of IPC including Sections 7 to 12 of the PC Act, in the absence of any reasonable excuse, is required to give information to the nearest Magistrate or Police Officer of such commission or intention in terms of Section 39 of the Criminal Procedure Code.

5.3 Section 18 - If a Police Officer has reason to suspect the commission of an offence which he is empowered to investigate under section 17, he can even inspect any bankers’ books in so far as they relate to the accounts of the



person suspected to have committed that offence.

6. Chapter V

6.1 This chapter stipulates the procedure for sanction of prosecution and other Miscellaneous Provisions.

6.2 Section 19 - It lays down that before taking cognizance of an offence punishable under sections 7, 10, 11, 13 and 15 alleged to have been committed by a public servant, the court shall obtain prior sanction of the authority competent to remove the public servant from office, namely Central Government, State Government, or any other employer. However, any error, omission or irregularity in the sanction granted by the authority will not make the order open for reversion, alteration, setting aside or stay of proceedings unless such error, omission or irregularity has resulted in failure of justice.

6.3 Section 20 - It lays down the deeming fictions in regard to the offences committed under section 7 or 11 or 12 13(1)(a) or (b) or 14(b) and stipulates that if the public servant is accused of the offences, ibid, it shall be presumed that he accepted or obtained the gratification, unless the contrary is proved or the gratification is so trivial that no inference of corruption may fairly be drawn.

6.4 Section 21 - defines the accused public servant as a competent witness to disprove the charges made against him. He can give evidence on oath to defend himself.

6.5 Section 22 - describes application of CrPC, 1973 in respect of Sections 243(1), 309(2), 317(2) and 397(1), to the proceedings under ‘the Act’ with certain modifications. These sections are applicable with respect to the rights of the accused for information to the list of witnesses whom he proposes to examine, the list of documents which he proposes to rely for defending himself; the conduct of trial even in the absence of the accused subject to the condition that reasons are recorded and the accused holds a right to cross examine prosecution witnesses.

6.6 Section 23 - It is again a deeming fiction and enjoins upon the authority under ‘the Act’ to deem the public servant accused of the offence U/S 13(1) (c), i.e. in charge of property without specifying particular items or dates, provided, the time included between the first and the last of such dates shall not exceed one year.

6.7 Section 24 - This section grants immunity to the bribe giver from prosecution proceedings U/S 12. It lays down that a statement made by a person in any proceeding against a public servant for an offence U/S 7 to 11 or U/S 13 & 15, that he offered or agreed to offer any gratification, shall not subject him to prosecution.

6.8 Section 25- It entails that ‘the Act’ will not interfere with the procedure applicable to Military, Naval and Air Force Acts.

6.9 Section 26 – It is only a transitional provision made in the Act.



It lays down that the Special Judges appointed under Criminal Law Amendment Act, 1952 shall be deemed as Special Judge under section 3 under ‘the Act’ and shall be authorised to deal with the all the proceedings pending before him.

6.10 Section 27 - Authorises High Court to exercise all powers of appeal and revision conferred by the Cr.CP, as if the Court of the Special Judge were a Court of Session trying cases within the local limits of the High Court.

6.11 Section 28 - Provisions of ‘the Act’ in addition to any other law in force, and nothing contained in ‘the Act’ shall exempt any public servant from any proceeding which might be instituted against him.

6.12 Section 29 - It lists various amendments/ substitutions/ insertions, in respect of authorities, time limit, Schedules, Paragraphs etc., in the Criminal Law Amendment Ordinance, 1944.

6.13 Section 30 - This provides for repeal and saving of ‘the Act’ and Criminal Law Amendment Act, 1952.

6.14 Section 31 - It allows application of section 6 of the General Clauses Act, 1897 in place of sections which had been repealed by a Central Act.

7. Synopsis of the Act - With the passing of the PCA, 1988, the existing anti-corruption laws have been made more effective and strengthened. In order to combat the menace of corruption effectively, the existing

provisions have been streamlined. The PC Act, is therefore, a comprehensive statute incorporating all offences of corruption, laying down special rules of procedures to combat corruption, arming the investigating agencies with sufficient powers and denying dilatory tactics by the accused persons.

C. VIGILANCE MATTERS VIS-À-VIS CONDUCT RULES, 1964

1. General

1.1 Misconduct - Before we proceed on to explore the acts which attract ‘preventive vigilance’ we need to go back to the underlying principles of the Conduct Rules. In the conduct rules there is a mention of various acts, conduct and commissions which are described as “misconduct”. In general, any act of the Government servant not conforming to the principles laid down in Conduct Rules is described as misconduct.

1.2 The word ‘misconduct’ though not capable of precise definition, its reflections receive its connotations from the context, the delinquency in its performance and its effect on the discipline and the nature of duty. It may involve moral turpitude; it must be improper or wrong behaviour, unlawful behaviour, wilful in character; forbidden act, a transgression of established and definite rule of action or code of conduct but not mere error of judgement, carelessness or negligence in performance of the duty; the act complained of bears forbidden quality



or character. Its ambit has to be construed with reference to the subject-matter and the context wherein the term occurs, regard being had to the scope of the statute and the public purpose it seeks to serve.

1.3 In the earlier session we have already discussed in depth the acts, conduct and commissions of a Government servant which amount to misconduct. In this discussion we will restrict ourselves only to the acts, conduct and commissions in relation to vigilance.

2. The often repeated Idiom “Prevention is better than cure” is extremely relevant in the context of Vigilance matters. Generally, vigilance means “Punitive Vigilance” which is in the nature of conducting a ‘Postmortem’. This does not do the organization as much good because the act of omission or commission is detected and acted upon long after loss & damage to the Organisation has already resulted. Such a loss is at times irrepairable and cannot be undone at a later stage. Therefore, taking timely steps would prevent wrong decision making or other acts of omission or commission.

2.1 The stratagem of taking precautionary step in advance is described in the Vigilance Jargon as “Preventive Vigilance” and is in contradiction to Punitive Vigilance. The word, “Prevention” has been described to mean Ending, Controlling, Stopping, Barring, Checking, Blocking, Curbing, Halting. Similarly, the term “Vigilance” implies Planning, Wisdom, Caution,

Insight, Judgement, Awareness, Preparation, Precaution, Prudence, Alertness, Farsightedness and Watchfulness. The phrase “Preventive Vigilance” emphasizes both the “Time aspect” as well as the “Qualitative aspect”. Both these dimensions are equally important when we go to discuss matters which attract vigilance angle.

2.2 In common parlance what is understood by vigilance is nothing but a disciplinary proceeding. But as we have understood in the earlier session, the moot point of Conduct Rules is to go for Preventive Vigilance so that all Government servants maintain certain standards of discipline and decorum.

3. To be fore-warned is to be fore-armed - This requires that each one of us present here should look upon ourselves as a Sentinel of Vigilance i.e. an integral part and parcel of the Vigilance mechanism of our Department. Presently, this is not perhaps the case as general impression amongst us all is that since there is a Vigilance Department we need not bother about it. Such an impression is not quite correct as the Vigilance department has its own constraints. Therefore, for an effective Scheme of Preventive Vigilance, our participation becomes “critical”. Accordingly, we need to accept the slogan of ‘Participative Vigilance’ for plugging any loopholes.

4. Integrity at the highest level

3.1 For senior functionaries it becomes very important to restrain from getting swamped by the current



trend towards “Materialism/ Consumerism”. If we lead a simple, but not shabby life, we would be able to keep our integrity at the highest level. On the other hand, if we let go and live in the spirit of “Joneses” then we run the risk of getting into the habit of living beyond our means - initially, through indebtedness and ultimately through trying to make a quick buck. Therefore, there is no justification to violate the Code of Conduct.

5. System improvement

5.1 The procedures and Systems, etc. should be so designed and carried out that settlement of Medical claims, Payment of Loans, Advances etc., to the employees become possible within the shortest possible time frame. This will reduce stress of employees and in turn increase their productivity and efficiency. Presence of good systems would also inculcate a better sense of Discipline and Work Culture. System Improvements and Predictive Preventive Measures need continuous review, simplification and rationalization so that implementation is simple and fast. Such improvements and simplifications will also reduce Vigilance cases of Administrative nature and Vigilance with limited machinery at their disposal can concentrate their energies on more important issues concerning Corruption.

5.2 We can build in a system of effective “Vigilance Clearances” for occasions like Promotions, Foreign Tours/ Postings, Transfers to Key Positions etc. In order to bring awareness amongst employees and

also to give necessary signals to them that they should not indulge in activities which may bring them in the trap of vigilance, the department should invariably give “Vigilance Clearances” for Promotions, Merit Awards, NOC for getting Passports to quote a few examples. This process will keep everyone alert and conscious motivating him not to indulge in activities which are not permitted as per Conduct Rules.

6. Decision making - Avoid delays

6.1 It has generally been observed that whenever there is delay in making small or big decisions, pressures from various sources start mounting on the concerned individuals authorized to make such decision. It is, therefore, of utmost importance that decision making should be pragmatic and fast and as per Rules and Procedure.

7. Co-operation with vigilance activities

7.1 You must co-operate in all the Vigilance Activities which are prescribed. For instance, you are expected to file your Statement of Assets every year. It becomes your paramount duty to ensure that you provide full particulars in this statement and that too well in time. This is a protection to you as well as an aid to the Vigilance.

7.2 Similarly, under various Conduct Rules some onus has been cast upon the employees either to inform about a particular transaction or in some cases to obtain prior-



permission thereabout. We all should educate us about these requirements and adhere to them scrupulously like a Disciplined Soldier and also encourage your other Colleagues and Sub-ordinates to do likewise.

7.3 We should resist all temptations to make any “wrong claims” whether they are medical, LTC or TA/ DA claims. These small lapses on our part not only tarnish our “Personal Image” but also sap our efficiency level and we may get caught in a web.

D. PERMISSION UNDER CONDUCT RULES

We have already discussed various Conduct Rules in our earlier session. In this topic we will touch only specific rules which describe Activities Requiring Prior Permission / Sanction of the authorities. Since we have laid emphasis on ‘Preventive Vigilance’ it becomes even more important to understand the given rules so as to know the acts which attract vigilance angle. The GOI decisions/ directions given under each rule, require the Government servant to inform the employer before taking up the described acts.

1. Rule 3 - General

1.1 Rule 3 - This rule is sweeping in its coverage and is a comprehensive list of dos and don’ts prescribed for a Government servant. Rule 3(1) requires every Government servant at all times to -

i) maintain absolute integrity;

ii) maintain devotion to duty; and

iii) do nothing which is unbecoming of a Government servant.

Related GOI decisions below Rule 3

1. To join educational institution or course of studies for university degree. Rule 3 GID (4).

[G.I., M.H.A., O.M. No. 130/54-Estt. (A), dated 26th February, 1955.]

2. To join non-official, non-political organizations like Bharat Sevak Samaj whose object is to contribute to the National Developmental Plan. Rule 3 GID (6).

[G.I., M.H.A., O.M. No. 25/8/55-Estt. (A), dated 3rd May, 1955.]

3. To join the Civil Defence Service in Delhi or elsewhere outside the office hours. Rule 3 GID (7).

[G.I., M.H.A., O.M. No. 47/7/63-Estt. (A), dated 23 May, 1963.]

4. To join as members of St. John Ambulance Brigade and to receive training subject to the condition that it does not interfere with the efficient discharge of official duties. Rule 3 GID (8).

[G.I., C.S., Dept. of Per., O.M. No. 27/5/70-Estt. (B), dated 12th January, 1971 and G.I., Dept. of Per & Trg., O.M. No.21011/2/88-Estt. (A), dated 21st March, 1988.]



5. To join officially sponsored auxiliary police organizations like Home Guards, National Volunteers Corps, Praniya Raks Dal, etc. Rule 3 GID (9).

[G.I., Dept of Per. & Trg., O.M. No. 11013/4/93-Estt. (A), dated 12th July, 1995.]

2. Rule 5 - Taking part in politics and elections

2.1 Rule 5 - It lays down that -

i) No Government servant shall be a member, or be otherwise associated with, any political party or any organisation or assists in any other manner, any political movement or activity.

ii) Government servant to prevent the members of his family from taking part in, subscribing or assisting in any other manner any movement or activity tending directly or indirectly, subversive or the Government as by law established.

iii) No Government servant shall canvass or otherwise interfere with, or uses influence in connection with or take part in an election.


1. To join foreign language classes conducted by Indo-Foreign Cultural Organisations. Rule 5 GID (14).

[G.I., M.H.A., O.M. No. 25/40/65-Estt. (A), dated 18th May, 1966.]

3. Rule 8 – Connection with press or other media

3.1 Rule 8 - It states that no Government servant, except with the previous sanction of the Government, is permitted to own wholly or in part or conduct or participate in the editing or management of, any newspaper or other periodical publications or electronic media. This however, will not apply in case of Government servant who in the bonafide discharges of his official duties, publishes a book or participates in a public media. Rule 8 (1).


1. A Government servant publishing a book or participating in a public media is required to make it clear that the views expressed by him are his own and not that of the Government. Rule 8 (3).

[G.I., Dept. of Per & Trg., O.M. No.11013/4/93-Estt. (A), dated 17th July, 1995.]

4. Rule 9 – Criticism of Government

4.1 Rule 9 - It stipulates that no Government servant shall, in any radio broadcast, telecast through any electronic media or in any document published in his own name or



anonymously, pseudonymously or in the name of any other person or in any communication to the press or in any public utterance, make any statement of fact on opinion –

i) which has the effect of an adverse criticism of any current or recent policy on action of the Central or State Government;

ii) which is capable of embarrassing the relation between the Central Government and the Government of any State;

iii) which is capable of embarrassing the relations between the Central Government and the Government of any foreign State.

4.2 To participate in a radio broadcast or contribute article to such broadcast.

5. Rule 10 – Evidence before Committee or any other authority

5.1 Rule 10 – It prohibits a Government servant from giving evidence in connection with any inquiry conducted by any person, committee or authority. Where a Government servant gives evidence with previous sanction of the Government, he shall not criticise the policy or any action of the Central Government or of a State Government.

5.2 To give evidence in connection with any enquiry conducted by

anybody other than the Central/ State Government or Parliament or a State legislature or a Judicial authority or a Department authority subordinate to the Government.

6. Rule 12 - Subscriptions

6.1 Rule 12 - No Government servant shall except with the previous sanction of the Government or of the prescribed authority, ask for or accept contributions to, or otherwise associate himself with the raising of any funds or other collections in cash or in kind in pursuance of any object whatsoever.

6.2 To accept contributions for a fund or to associate with raising of any funds or other collections in cash or in kind in pursuance of any object whatsoever.

Exception – Collections during the Flag Day celebrations and to the National Defence Fund are exempted.

[G.I., M.H.A., O.M. No. 25/33/55-Estt. (A), dated 31st October, 1955 and G.I., M.H.A., O.M. No. 25/64/62-Estt. (A), dated 1st November, 1962.]

7. Rule 13 - Gifts

7.1 Rule 13(1) - Except as provided in the Conduct Rules, no Government servant shall accept, or permit any member of his family or any other person acting on his behalf to accept, any gift.

Explanation:



(i) “Gift” includes free transport, boarding, lodging or other service or any other pecuniary advantage when provided by any person other than a near relative or personal friend having no official dealings with the Government servant.

(ii) A casual meal, lift or other social hospitality shall not be deemed to be a gift.

(iii) A Government servant shall avoid accepting lavish hospitality or frequent hospitality from any individual, industrial or commercial firms, organisations, etc., having official dealings with him.

7.2 Rule 13(2) - It states that on occasions such as weddings, anniversaries, funerals or religious functions, a Government servant may accept gifts from his near relatives or from his personal friends having no official dealings with him, but shall make a report to the Government, if the value of such gift exceeds –

(i) Rs. 5,000 - servant holding any Group ‘A’ post;

(ii) Rs. 3,000 - servant holding any Group ‘B’ post;

(iii) Rs. 1,000 - servant holding any Group ‘C’ post and

(iv) Rs. 500 servant holding any Group ‘D’ post.

7.3 Rule 13(3) - In any other case, a Government servant shall not accept any gift without the sanction of the Government if the value thereof exceeds –

i) Rs. 1,000 - servants holding any Group “A” or Group “B” post; and

ii) Rs. 250 - servants holding any Group “C” or Group “D” post.


1. To accept gift from the members of the staff at the time of retirement. Rule 13 (2), (3) and (4).

[G.I., M.H.A., O.M. No. 25/22/62-Estt. (A), dated 12th November, 1962.]

2. To accept membership of Book clubs run by Foreign Agencies. If membership of the book club entitles the Government servant to receive books by way of gifts, the acceptance of such gifts is governed by Rule 13 GID (8).

[G.I., C.S. (Dept. of Per. ), O.M. No. 25/16/73-Estt. (A), dated 3rd July, 1973.]

8. Rule 14 – Public demonstrations in honour of Government servant

8.1 Rule 14 - No Government servant shall, except with the previous sanction of the Government, receive any complimentary or valedictory address or accept any testimonial or attend in a meeting or entertainment held in his honour; or in the honour of any other



Government servant. However, this will not apply to-

(i) a farewell held in honour of a Government servant on the occasion of his retirement or transfer of any person who has recently quitted the service of any Government;

(ii) the acceptance of simple and inexpensive entertainment arranged by public bodies or institutions.


1. To receive any complimentary or valedictory address or accept any testimonial or attend any meeting or entertainment held in his honour of any other Government servant. Rule 14 GIO (1).

Exception 1 – To take part in informal farewell entertainment held on the occasions like retirement or transfer.

Exception 2 – Acceptance of simple and inexpensive entertainments arranged by public bodies or institutions.

[G.I., M.H.A., O.M. No. 25/24/57-Estt. (A), dated 16th September, 1957 read with D.G., P. & T.’s Letter No. 15/13/57-Disc., dated 16th January, 1958.]

9. Rule 15 – Private trade or employment

9.1 Rule 15(1) - No Government servant shall, except with the previous sanction of the Government –

(i) engage directly or indirectly in any trade or business;

(ii) negotiate for, or undertake, any other employment;

(iii) hold an elective office, or canvass for a candidate or candidates for an elective office, in any body, whether incorporated or not;

(iv) canvass in support of any business of insurance agency, commission agency, etc., owned or managed by any member of his family;

(v) take part except in the discharge of his official duties, in the registration, promotion or management of any bank or other company registered or required to be registered, under the Companies Act, 1956 or any other law for the time in force or of any co-operative society for commercial purposes;

(vi) participate in or associate himself in any manner in the making of any media programme.

9.2 Rule 15(2) - A Government servant may, without the previous sanction of the Government undertake

(i) honorary work of a social or charitable nature;



ii) occasional work of a literary, artistic or scientific character;

iii) participate in sports activities as an amateur;

iv) take part in the registration, promotion or management (not involving the holding of an elective office) of a literary, scientific or charitable society or of a club or similar organisation, the aims or objects of which relate to promotion of sports, cultural or recreational activities.

v) take part in the registration, promotion or management (not involving the holding of elective office) of a co-operative society substantially for the benefit of Government servants, registered under the Co-operative Societies Act, 1912 \or any other law in force;

9.3 Rule 15(3) - Every Government servant shall report to the Government if any member of his family is engaged in a trade or business or owns or manages in insurance agency or commission agency.

[G.I., Dept. of Per., O.M. No. 11013/16/85-Estt. (A), dated 10th September, 1986.]


1. To undertake a part time job of lecturer-ship in an educational

institution on regular remunerative occupation basis. Rule 15 GID (2).

[G.I., M.F., O.M. No.F. 10(94)-E. II (B), dated 13th September, 1958.]

2. To take part in the registration, promotion or management of any bank or other company or co-operative society for commercial purposes. However if the purpose of such company or co-operative society is to promote literary, scientific, sports, cultural or recreational activities prior permission is not necessary. No permission is necessary to become a member of a co-operative society substantially for the benefit of the employees registered under the relevant law in force. Rule 15 GID (4).

[G.I., Ministry of W. & H., A.V. No. 126, dated 15th September, 1960.]

3. To undertake the work of Honourary Accountant of CO-operative societies. Rule 15 GID (8).

[G.I., M.F., O.M. No.F. 11(2)-E. II (B), dated 6th May, 1963.]

4. To enrol himself as an advocate with the Bar Association subject to the condition that the Government servant does not engage himself in the legal profession so long as he continues in Government service. Rule 15 GID (12).

[G.I., Dept. of Per & A.R., U.O. No. D 207/74-Estt. (A), dated 15th January, 1974.]

5. To enter into negotiation with private firms to secure commercial employment even while in service. Rule 15 GID (10).



[G.I., M.H.A., O.M. No.29/3/66-Estt. (A), dated 8th February, 1966.]

10. Rule 18 - Movable, immovable and valuable property

10.1 Every Government servant is required on his first appointment to any service or post submit a return of his assets and liabilities giving full particulars of–

(i) the immovable property inherited by him, or owned or acquired by him or held by him on lease or mortgage, either in his own name or in the name of any member of his family or in the name of any other person.

(ii) shares, debentures and cash including bank deposits similarly owned acquired.

(iii) other movable property inherited by him or similarly owned, acquired or held by him and

(iv)debts and other liabilities incurred by him directly or indirectly.

10.2 No Government servant shall accept without the previous knowledge of the prescribed authority acquire or dispose off any immovable property by lease, mortgage, purchase, sale, gift or otherwise either in his own name or in the name of any member of his family.


1. To acquire or dispose of any immovable property by lease, mortgage, purchase, sale, gift or otherwise either in his own name or in the name of any member of the family, if the above transaction is with a person having official dealings with the Government servant. Rule 18 (2).

Note - In the case of movable property, a report should be given within 30 days if the value of such property exceeds Rs. 10,000 in respect of a Group ‘A’ and Group ‘B’ officer and Rs. 5,000 in respect of others. However, prior permission is required when the person involved in the transaction has official dealing with the Government servant.

[G.I., Dept. of Per & Trg., O.M. No.11013/11/85-Estt. (A), dated 7th March, 1986.]

2. To enter into transactions in movable property, if its value exceeds prescribed limits (Rs 15,000 in the case of Government holding any Class I or II post or Rs 10,000 holding any Class III or Class IV post) and if the transaction is with a person having official dealings with the Government servant. Rule 18 (3).

[ G.I., C.S. (Dept. of Per. & Trg.) Notification No. 25/ 15/ 72-Estt. (A) dated 16th July, 1973 and G.I., Dept. of Per & Trg., O.M. No.11013/4/93-Estt. (A), dated 31st August, 1993.]

11. Rule 18-A

11.1 No Government servant shall, except with previous sanction of the prescribed authority –



(i) acquire, by purchase, mortgage, lease, gift or otherwise, either in his own name or in the name of any member of his family, any immovable property situated outside India;

(ii) dispose of, by sale, and other modes any property outside India;

(iii) enter into any transaction with any foreigner, foreign Government, foreign organisation or concern,-(a) for the acquisition(b) for the disposal, by the

above modes

Related GOI decisions below Rule 18-A

1. To acquire any immovable property situated outside India by lease, mortgage, purchase, sale, gift or otherwise either in his own name or in the name of any member of the family. Rule 18-A (a).

2. To dispose of any immovable property situated outside India by lease, mortgage, purchase, sale, gift or otherwise either in his own name or in the name of any member of the family.Rule 18-A (b).

12. Rule 19

12.1 No Government servant shall, except with the previous sanction of the Government, have recourse to any

Court or to the Press for the vindication of any official act which has been the subject-matter of adverse criticism or an attack of a defamatory character.

Provided that

(i) if no such sanction is received by the Government servant within a period of three months from the date of receipt of his request by the Government, he shall be free to assume that the permission as sought for has been granted to him.

12.2 Nothing in this rule shall be deemed to prohibit a Government servant from vindicating his private character or any act done by him in his private capacity and where any action for vindicating his private character or any act done by him in private capacity is taken, the Government servant shall submit a report to the prescribed authority regarding such action.

12.3 To approach the Court of Law or Press for vindication of any official act which has been the subject matter of adverse criticism or an attack of a defamatory character. Rule 19 (1).

13. Appendix III – Orders regarding contact of Government servants with Foreign Nationals, etc. 13.1 To stay as guests with foreign diplomats or foreign nationals abroad.

Note –



(i) Government servants should not stay as guests with foreign nationals in India. Similarly, they should not invite foreign diplomats to stay with them as guests. Para 10 Appendix III.

13.2 To be a member of or actively participate in the activities of Indo-Foreign Cultural Organisations. Para 15 Appendix III.

14. Rule 10 (1), CCS (Pension) Rules

14.1 In the case of Pensioners, who were Group ‘A’ officers immediately before their retirement, to accept any commercial employment, within two years from the date of their retirement.

2. Time Limit For Grant/ Refusal Of Permission

2.1 Time limits are as per table below and are to be reckoned from the date of receipt of the request of the Government servant.

2.2 In the above cases, if no reply is forthcoming within the time limit specified, the Government servant is free to assume that permission has been granted.

[ Rule 10(4), CCS (Pension) Rules, 1972; G.I., D.P. & A.R., O.M. No. 11013/17/77-Estt. (A), dated 19th April, 1978; DOPT O.M. No. 11013/2/88-Estt. (A), dated 7th July, 1988.]

Sl. No.

Purpose for which permission is sought Time limit for grant/ refusal of permission

1.

2.

3.

4.

5.

6.

7.

8.

9.

To publish a book himself or through a publisher

To participate in a Radio Broadcast or contribute an article

Acceptance of gifts from all persons including near relatives if the value exceeds prescribed limits

To enter into immovable property transaction

To enter into transaction in movable property if the value exceeds prescribed limits

To enter into transaction in immovable property outside India

To enter into any property transaction with any foreigner, foreign Govt. etc.

To take recourse to any Court of Law for the vindication of any official act

In the case of pensioners who were Gr A officers, to accept any commercial appointment before expiry of 2 yrs from the date of retirement

30 days

30 days

30 days

30 days

30 days

60 days

60 days

6 weeks

60 days

E. INSTRUCTIONS/ GUIDELINES OF GOI/ CVC/ CAG

ON VIGILANCE MATTERS



Hereunder is the subject heading and the related gist of the instruction/ guideline.

1. Vigilance Angle - Only those cases in which there is an allegation of corruption or improper motive or if the alleged facts indicate an element of corruption or improper motive need be referred to the Commission. Cases involving purely administrative or technical lapses, e.g., late attendance, disobedience, insubordination, negligence, lack of supervision or operational or technical lapses or irregularities need not be referred to the Commission.

[CVC letter No 1/7/66-Coord., dated 14th

April, 1966.]

2. Disciplinary authority to inform action taken on Commission advice - The final decision taken on conclusion of the inquiry in respect of vigilance cases against Gazetted officers may be communicated to the Commission.

[CVC letter No. 4/44/74-R dated 19th April, 1976.]

3. Rotation of officers – Rotation of staff, specially those working in sensitive posts, by each Ministry/ Department should be strictly resorted to after every 2/3 years to avoid developing vested interests.

[DOPT O.M.. No. 371/ 3/85-AVD-III dated 12th February, 1985.]

4. Denial of LTC to Government servants found guilty of misuse of facility – Whenever a case of fraudulent claim of LTC comes to notice and the competent authority arrives at a conclusion that there is a

prima facie case for initiating disciplinary proceedings, the claim for the LTC should be withheld and should not be allowed till the finalisation of the proceedings.

[DOPT O.M. No. 31011/16/86-Estt. (A) dated 8th October, 1987.]

5. Non-supply of CVC’s advice to the delinquent is violative of procedural safeguard – The advice of the Commission should be made available to the charged official as non- supply of the advice is violative of procedural safeguard and contrary to fair and just inquiry.

[G.I., CVC Cir. Letter No. 99/VGL/66, dated 28-9-2000.]

6. Amendment to CCS (CCA) Rules, 1965 – In CCA Rules, in Rule 11, in the first proviso, for the words the “the charge of acceptance”, the words “the charge of possession of assets dis-proportionate to known sources of income or the charge of acceptance” shall be substituted.

[G.I., DOPT., Notification No. 11012/2/2000-Estt. (A), dated 11th October, 2000.]

SUMMARY

Corruption has various types and forms. It has progressively increased both horizontally and vertically. It may not be possible to root out corruption completely at all levels, but certainly it is possible to roll it down or to contain it within tolerable limits. A little amount of inefficiency or negligence can be tolerated but there can be no compromise with integrity. Vigilance certainly helps and decreases losses



and increases profits. It should be accepted as an important tool of managerial functions. It is utmost necessary to have a well planned strategy to deal with corruption because a random and scattered effort could hardly make an impact on the problem.

Corruption act and vigilance matters 4.1 & 4.2

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