RULE 18. MOVABLE, IMMOVABLE AND VALUABLE PROPERTY:
Government of India Decisions
(1) General instructions regarding submission of the return for immovable property-House-building is clearly a transaction in immovable property-‘prescribed’ authorities, who would exercise authority-returns to be treated as secret and kept along with character rolls.
Under sub-rule 3 of Rule 15 of the Central Civil Service (Conduct) Rules, 1955 (now Rule 18 of 1964 Rules) every member of Class I (Group A) and Class II (Group B) services shall, on first appointment to Government service and thereafter at intervals of 12 months, submit a return of immovable property owned, acquired or inherited 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. It has been decided that this return shall be submitted in the form (Annexure) attached to this Office Memorandum, to the authority prescribed in Explanation (a) to sub-Rule 15 (1) [now Rule 18 (2)] of these rules within a month of their appointment and subsequently in the month of January every year. The initial return should show the position as on the date of their appointment and subsequent returns as on the 1st January of the year in which they are submitted. In the case of persons already in service, the first return, if one has not already been submitted, shall indicate the position as on the 1st January, 1956.
2. These returns shall be treated as secret and shall, after such scrutiny as may be considered necessary, be kept in the custody of the authority which maintains the Character rolls of the officers concerned; they should not, however, be filed in the Character roll itself, but kept separately.
3. Reference is invited to Explanation (a) (i) under rule 15 (1) [now Explanation I (2) of Rule 18] of the Central Civil Services (Conduct) Rules, 1955. The question has been raised as to which authority in Government should appropriately exercise the functions of the prescribed authority as mentioned in this Explanation. In respect of Class I (Group A) officers intended to man posts in or under more than one Ministry, the Ministry administratively concerned with the post or service of which the Government servant is a member, should act as the prescribed authority in this connection. In the latter case, the functions of the prescribed authority would be discharged by the Ministry which controls the service in question. An instance of a service of this nature is the Central Secretariat Service which is controlled by the Home Ministry but is intended to man posts in and under the various Ministries. For a Class I (Group A) officer of this service, therefore, the prescribed authority for purposes of Rule 15 (Now rule 18) would be the Ministry of Home Affairs. In the case of Class II and Class III (Group B and Group C) officers of this and such other services, however, Explanation (a) (ii) and (a) (iii) would apply and the functions of the prescribed authority would be discharged by the Head of the Department or the Head of the Office in which he is for the time being employed, as the case may be.
4. A question has also been asked whether construction of a house requires the previous knowledge or sanction, as the case may be, of the prescribed authority under rule 15 (now Rule 18) of the Conduct Rules. Since such construction results in the acquisition of immovable property, the provisions of this rule are clearly attracted. A Government servant should, therefore, report to, or seek the permission of, the prescribed authority as the case may be, before commencing the construction of, or addition to, any building.
[MHA OM No. 25/10/55-Estt.(A), dated 12.01.1956]
(2) Question whether the report of the conclusion of a transaction in immovable property should be made forthwith in cases where prior permission to purchase such property was obtained and the amount involved was/was not indicated.
A point was raised whether it is necessary for a Government servant once he had got permission from Government to purchase immovable property, report the actual acquisition of it immediately on the conclusion of the transaction. If the first sanction specifies the details of the transaction and the amount involved, a further report is not necessary but if such details are not furnished at the time of sanction, a further report after the acquisition giving full details should be made. The property should, of course, figure in his subsequent annual returns of immovable property in either case.
[Min. of W.H. & S.O.M. No. AV(37) dated 05.12.1956]
(3) Form of report standardized for cases involving purchase of land, construction of building and additions alterations to an existing building.
In para 4 of the orders cited at Decision No. (10) it is explained that the construction of a house amounted to an acquisition of immovable property for which the previous knowledge or sanction, as the case may be, of the prescribed authority was required under Rules 15 (now Rule 18) of the Central Civil Service (Conduct) Rules. A question has been raised whether the purchase of movable property required for the construction of the house comes within the scope of rule 15 (2) [now Rule 18 (3)] of the Central Civil Services (Conduct) Rules, which requires that a report of such transactions shall forthwith be sent to the prescribed authority. It would obviously be cumbersome and inconvenient if such reports have to be made in respect of purchases made in connection with the building of the house. At the same time, the purpose of the rule would be defeated if a check is not kept on such purchases merely because permission has been given for the building of the house just before the construction begins. It has, therefore, been decided that whenever a Government servant wishes to build a house the following procedure should be followed.
Before starting construction of the house, he should report or seek permission, as the case may be, in Form I and after completion of the house, he should report in Form II to the prescribed authority.
[MHA OM No. 25/21/57-Ests.(A), dated 11.06.1957]
(4) Reference Ministry of Home Affairs OM No. 25/21/57-Ests.(A), dated the 11th June, 1957 (Decision No. 3 above)
It has further been decided that –
(i) the details in the proforma prescribed should be furnished whenever it is possible to do so. Where, however it is not possible to furnish these details, the Government servant concerned should mention the covered area on which the building is proposed to be erected and the estimated cost of the building;
(ii) In cases where the expenditure to be incurred on repairs or minor construction work in respect of any immovable property belonging to a Government servant is estimated to exceed Rs. 1,000 (now Rs. 10,000) the provisions of the Office Memorandum mentioned above will also apply to such cases;
(iii) the existing caption in Form I may be amended as follows:-
“[Form of report/application (for permission) to the prescribed authority for the building of or addition to a house]” and the existing caption in Form II as –
“(Form of report to the prescribed authority after completion of the building/extension of a house)”.
[MHA OM No. 25/21/51-Ests.(A), dated 18.12.1957]
(5) Prohibition of Government servants from bidding at Government auctions (either personally or by proxy)
A question has been raised whether a specific provision should be added to the Central Civil Services (Conduct) Rules regarding participation by Government servants in auctions of property owned or confiscated by Government. Even if the transaction is, in fact, free of any element of undue influence or dishonesty, the suspicion that all is not above board is bound to arise in case where property sold at Government auctions is purchased by Government servants particularly by buyers belonging to the same Ministry or Department as the one by which or under whose orders the auction is conducted. While, therefore, it may not be necessary to frame a specific Conduct Rule for the purpose, it is obviously undesirable for Government servants to bid at auctions arranged by their own Ministries or Departments. Any Government servant who does so would be regarded as indulging in conduct unbecoming of a Government servant within the meaning of the Conduct Rules.
[MHA OM No. 25/12/57-Ests.(A), dated 21.01.1958]
(6) “On account” payment to be transaction in movable properties
“On account” payment to Co-operative House-building Societies for purchase, development, etc. of land are to be treated as transaction concerning movable properties.
[MHA OM No. 21/38/58-Estt. (A), dated 16.04.1958]
(7) No regular and continuous scrutiny necessary in case of returns of immovable property submitted by officers of the Central Secretariat Service and the Central Secretariat Stenographer’s Service.
Paragraph 2 of this Ministry’s Office Memorandum No. 25/10/55-Ests.(A) dated the 12th January, 1956, (Decision No. 10 above) stated that the returns of immovable property required to be submitted under Rule 15 of the Central Civil Services (Conduct) Rules, 1955, (now Rule 18), shall be treated as secret and shall after such scrutiny, as may be considered necessary be kept in the custody of the authority which maintains the character rolls of the officers concerned. It has now been decided that in so far as the Central Secretariat Service and the Central Secretariat Stenographers’ Service are concerned, there need be no regular and continuous scrutiny of the property returns submitted by the officers of these Services and that the returns need be scrutinized by the officers only if and when there is ground for suspicion in any particular case. The Ministries etc., need not therefore, undertake any regular scrutiny of these returns when submitted by the officers and the returns may, as and when they are received from the officers, be passed on to the authority which maintains Character Roll of the officers.
2. As the Character Rolls of offices of the Selection Grade and Grade I-III of the Central Secretariat Service, and also those of officers of Grade I of the Central Secretariat Stenographers’ Service are maintained by the Establishment Officer to the Government of India (Ministry of Home Affairs), the returns of immovable property of these officers should, no receipt from the officers, as be directly transmitted to the Office of the Establishment Officer for record.
[MHA OM No. 12/9/58-CS (A), dated 21.06.1958]
(8) Sale of a car purchased on an advance from the Government of India, required two sets of sanctions – one under the G.F.Rs. and the other under the CCS (Conduct) Rules.
A question has been raised whether the sanction of the competent authority under para 256 (v) of the General Financial Rules for the sale of a car or other conveyance purchased with advance from Government, before repayment of the advance together with interest, can be deemed to carry with it the permission of the competent authority under Rule 15 (2) [now Rule 18 (3)] of the Central Civil Services (Conduct) Rules, 1955, relating to transactions of movable property.
2. The matter has been considered by the Ministry in consultation with the Comptroller and Auditor General and the Ministry of Finance. Since the objects of according sanctions under the two sets of Rules are entirely different it has been decided that separate sanctions under the General Financial Rules and under the Conduct Rules should be taken by a Government servant when the sale of the conveyance is made otherwise than through a regular or reputed dealer or agent.
3. In all cases, whether the sanctioning authorities under the two sets of rules are the same or different, in order to obtain the required sanctions expeditiously, the Government servant will be well advised to obtain first the sanction under the General Financial Rules, as at that stage he will not be required to furnish details of the prospective purchaser, sale price etc., which would be required before the permission under the Conduct Rules is given. After obtaining this sanction, he may settle the details with the intending purchaser and apply for permission under the Conduct Rules stating clearly that necessary sanction under the General Financial Rules had already been obtained. The authority issuing sanction under the General Financial Rules should specify in the sanction itself that the actual sale of the car, if made otherwise than through a reputed or regular dealer or agent, would be subject to the condition that the Government servant also obtains the prior sanction of the competent authority under the Conduct Rules for the sale of his car, so that this requirement is not overlooked by the Government servant.
4. In so far as the personnel serving in the Indian Audit and Accounts Departments are concerned, these instructions have been issued after consultation with the Comptroller and Auditor General.
[MHA OM No. 28/47/58-Estt.(A), dated 05.03.1959]
(9) Clarification of the provisions in the CCS (Conduct) Rules, 1955 regarding transaction in movable and immovable properties –
Detailed probe into the private affairs of Government servants and harassment to them to be avoided – transactions made out of funds of dependants – how to account for.
Certain difficulties are being experienced by administrative authorities in interpreting Rule 15 of the Central Civil Services (Conduct) Rules, 1955 (now Rule 18) relating to transaction of movable and immovable property and submission of property returns especially in regard to transactions entered into by members of the family of a Government servant.
2. In order to ensure that Government servants do not indulge in benami transactions or ostensible transfers and acquisitions to secret assets illegally earned, and at the same time to ensure that unnecessary restraint is not imposed on either Government servants or their dependants, or harassment caused to them, the following executive instructions are issued for the guidance of administrative authorities.
(i) All transactions both of immovable and movable property made out of the funds of the Government servant (irrespective of the person in whose name the transaction is made) should be governed strictly by Rule 15 (now Rule 18) that is:
(a) Transactions in immovable property: In all cases, the transaction should be with the previous knowledge of the prescribed authority.
(b) Transaction in movable property: In all cases a full report to the prescribed authority immediately after completion of the transaction, is necessary.
Note: - Cases falling under sub-paragraph (iv) below will not be governed by these instructions.
(ii) All transactions of both, immovable and movable property made out of the funds (including stridhan, gifts, inheritance, etc.) of the dependants of the Government servants, irrespective of the person in whose name the transaction is made should be reported in the following manner.
(a) Transactions in immovable property: These should be reported alongwith the annual property return but in a separate form. No other report is necessary.
(b) Transactions in movable property: These should be reported immediately on completion or immediately after the Government servant comes to know of them.
In both the types of cases, prior permission of the prescribed authority is not necessary.
(iii) A Government servant who transfers any immovable property or movable property exceeding Rs. 1,000 (now Rs. 10,000) in value to a member of his family, should report or obtain sanction of the prescribed authority in accordance with Rule 15 (now rule 18).
(iv) Transactions as members of Hindu undivided joint family do not require Government’s prior permission. In such cases transactions in immovable property should be included in the annual property returns and those in movable property should be reported to the prescribed authority immediately after completion or immediately after the Government servant comes to know of them. If a Government servant is unable to give an idea of his share of such property, he may give details of the full property and the names of the members who share it.
3. The above instructions may be implemented liberally in order to avoid a detailed probe into the private affairs of the Government servants or their dependants, but cases in which suspicious circumstances exist should be investigated with firmness and speed.
4. The above instructions may be brought to the notice of all concerned.
5. In so far as persons serving in the Indian Audit and Accounts Department are concerned, these instructions are issued in consultation with the Comptroller and Auditor General of India.
[MHA OM No. 25/18/59-Ests.(A), dated 28.08.1959]
(10) Transactions in immovable property – Points to be ensured
In the Ministry of Home Affairs Office Memorandum No. 25/22/59-Ests.(A), dated the 7th February, 1959, (not reproduced) powers were delegated to the Administrative Ministries/Departments to deal with certain matters relating to the application of the Central Civil Services (Conduct) Rules, 1955 in respect of officers of the Service controlled by the Ministry of Home Affairs. It has now been decided that cases relating to the acquisition/disposal of immovable property by Class I (Group A) Officers of the Central Secretariat Service, which are, under the existing instructions, required to be referred to this Ministry, may also be dealt with and finally decided by the administrative Ministries/Departments concerned.
The intention underlying the provision in the CCS (Conduct) Rules, 1955, vide rule 15 (1) [now rule 18(2)] laying down that no transactions relating to immovable property shall be entered into by the officers subjected to these rules except with the previous knowledge of the prescribed authority and, in the case of transactions with a person having official dealings with the prior sanction of such prescribed authority is to ensure that –
(i) The transaction proposed to be entered into is for bonafide purposes;
(ii) the acquisition/sale of the property in question is at fair prevailing market prices and does not involve any element of profiteering or speculation;
(iii) there is no reasonable ground to hold that the transaction in question is the result of the exercise of any undue official influence by the officers (e.g. in return for any official favours conferred or likely to be conferred upon the prospective seller/buyer of the property); and
(iv) there is nothing otherwise objectionable in relation to the proposed transaction.
Ministries/Departments may therefore deal with the individual references relating to transactions in respect of immovable property entered into or proposed to be entered into by the Class I officers of the CSS serving under them, in the light of the above guiding principles. Annual Returns of immovable property owned by officers of the Selection Grade and Grade I-III of the Central Secretariat Service should, however, as at present, continue to be sent regularly to the Ministry of Home Affairs, (Office of the Establishment Officer) for purpose of record.
[MHA OM No. 12/6/60-CS (A), dated 10.03.1960]
(11) Requirement of seeking prior permission
See Government of India decision No. (1) under rule 16, according to which it has been impressed on Government servant to obtain prior permission, where required and on authorities to severely discourage ex post facto sanctions.
[MHA OM No. 25/25/61-Ests. (A) dated 26.06.1961]
(12) Reference this Ministry’s OM No. 25/21/57-Ests.(A) dated the 11th June, 1957 (Decision No. 3 above), on the above subject, the attached Form I may be substituted for the Form I circulated with the OM under reference.
[MHA OM No. 25/2/64-Ests.(A), dated 31.01.1964]
(13) Question whether a charge of corruption should be held proved in case the officer concerned is unable to account satisfactorily possession by himself or by any other person on his behalf of pecuniary resources or property disproportionate to his know sources of income.
A presumption of corruption fairly and reasonably arises against an officer who cannot account for large accretion of wealth which he could not possibly have saved from his known sources of income. This principle has received statutory recognition in section 5 (3) of the Prevention of Corruption Act, 1947, and its application in a departmental inquiry against an officer charged with corruption could not, therefore, be unjust or inequitable. In fact, this principle has recently been upheld by the Supreme Court in the case of G.R. Manker Vs. Union of India (Civil Appeal No. 160 of 1963)
2. Ministry of Finance etc., are requested to ensure that in a departmental enquiry against an officer charged with corruption and found to be in possession of assets disproportionate to his known sources of income, the Presenting officer concerned brings the legal position, as set out in para 1 above, to the notice of the Enquiry Officer.
3. This Ministry’s Office Memorandum No. 39/19/51-Ests., dated 08.10.1952 (not printed) may be treated as cancelled.
[MHA OM No. 39/19/63-Ests.(A), dated 16.12.1964]
(14) “Pagri” charged by Government servants in renting their houses and flats – amounts to corruption
Recommendation No. 32, contained in para 6.19 of the Report of the Committee on Prevention of Corruption reads as follows:-
32. To buy and sell properties at prices much greater than those recorded in the conveyance deeds has become a common method of cheating the Central Government of the income-tax and other taxes and the State Government of the stamp duty and a convenient methods of transferring black money. If, in some manner, the Central and State Governments, or some special corporations setup for the purpose, can be empowered to step in and acquire such properties at the stated value, or even at a small premium when it is considered that the properties have been deliberately undervalued, it will strike a blow against black money.
The habit of charging “pagri” or “premium” for renting houses and flats in a similar sources of corruption for which some drastic steps have to be taken.”
2. This recommendation has been considered carefully in the light of the comments received from Ministries/Departments etc., Government of India’s decision on the recommendations is as follows:-
The changes made in the Income Tax Act 1964 substantially achieve the purpose underlying a part of the recommendation Government are, however, advised on legal and constitutional grounds that it would not be possible to accept the part of the recommendation regarding the setting up of special corporations for the acquisition of such properties.
As regards the part of the recommendation relating to “pagri” the State Governments have been requested to take appropriate action in the matter.
[MHA OM No. 43/49/64-AVD, dated 19.11.1965]
(15) All purchases made at the same time, in the same place (Shop, etc.) and charged for the same bill should be treated as one transaction for the purpose of Rule 18 (3) whether or not they relate to the same item.
[MHA OM No. 25/8/57-Ests.(A), dated 25.03.1967 and OM No. 71/33/58-Ests.(A), dated 03.04.1958]
(16) Heads of Departments declared as “prescribed Authorities” for Class I (Group A) Officers:
The Central Government hereby directs that the powers exercisable by it and the Comptroller and Auditor-General of India under sub-rules (2) & (3) of Rule 18 shall, subject to any general or special instructions issued by the Central Government in this behalf, be also exercisable, by the Heads of Department in respect of Class I (Group A) Officers serving under their control, subject to the following conditions, namely:
(a) in relation to the Heads of Department themselves, the said powers shall continue to be exercised by the Central Government or the Comptroller and Auditor-General of India, as the case may be; and
(b) all cases of sanction accorded by the said Heads of Department shall be reported to the Central Government or the Comptroller and Auditor General of India, as the case may be.
[MHA No. 25/11/68-Ests.(A), dated 05.08.1968]
(17) Order -
In pursuance of Sub-rule (1) of rule 18 of the Central Civil Services (Conduct) Rules, 1964 read with Note III thereto, the Central Government hereby-
(a) prescribes the forms specified in the Schedule to this order, as the forms in which the return referred to in the said rule shall be submitted by –
(i) every Government servant on his first appointment after the date of issue of this order to any service or post,
(ii) every Government servant who is in service on the date of issue of this order.’
(b) directs that –
(i) the first return in respect of a Government servant on his first appointment to any service or post shall be as on the date of such appointment and shall be submitted within three months from that date and every such return, after the first, shall be submitted as on, and by, the date specified in clause (c) in respect of returns after the first return, provided that if the interval between the date of submission of the first return and the date on which a subsequent return is due is less than six months, the later return need not be submitted.
(ii) the first return in respect of every Government servant who is in service on the date of issue of this order, shall be as on the 31st December, 1972 and specifies the 31st day of March, 1973, as the date on or before which such return shall be submitted.
(c) further directs that every Government servant shall submit such returns, after the first at an interval of five years, on or before the 31st day of March of the year immediately following the year to which the return relates and every such return shall be as on the 31st day of December of the year immediately proceeding the said 31st day of March; and
(d) also directs that every such return shall be handled as secret document and the provisions of rule 11 of the Central Civil Services (Conduct) Rules, 1965, as far as may be, apply thereto.
[See Rule 18 (1)]
[Cab. Sectt. DP&AR O.M. No. 25/7/65-Ests. (A) dated 6th January, 1973]
(18) Central Civil Services (Conduct) Rules, 1964 – Rule 18 – Return of Assets and Liabilities – forms and periodicity.
Under Rule 18 (1) of the Central Civil Services (Conduct) Rules, 1964, read with Note III thereto, every Government servant shall on his first appointment to any service or post and thereafter at such intervals as may be specified by the Government, submit a return of his assets and liabilities in such form as may be prescribed by the Government giving the full particulars as indicated in that rule. The forms in which the said return should be furnished, and its periodicity have been notified in the Order No. 25/7/65-Estt. (A) dated 6th January, 1973, a copy of which has been endorsed to the various Ministries/Departments separately.
2. The return of assets and liabilities in the prescribed forms is required to be submitted by only Class I Class II and Class III (Group A, Group B and Group C) officers, excepting those to whom the provisions of sub-rules (1), (2) and (3) of rule 18 of the Central Civil Services (Conduct) Rules, 1964, do not apply by virtue of the second proviso to sub-rule (3) of rule 18. Government servants in Class IV (Group D) services and posts are not required to submit these returns by virtue of Note I below rule 18 (1).
3. As regards Government servants in Class III (Group C) services/posts, the Head of the Department may recommend to Ministry/Department concerned for the exclusion of any specified categories of such employees from the requirement of furnishing the return, in pursuance of sub-rule (5) of Rule 18, if the nature of work of such employees justifies the exemption. The Ministry/Department to whom the recommendation is made would take a decision thereon with the concurrence of he Cabinet Secretariat, Department of Personnel; in regard to such employees working in a Ministry/Department itself, a decision thereon could similarly be taken by it in consultation with the Department of Personnel.
4. The first return on the prescribed form will be as on 31st December, 1972, in respect of Government servants who are already in service and should be submitted by them by the 31st March, 1973, even if they have already submitted the return of immovable property for the year 1972 under the earlier orders. The subsequent returns will be as on 31st December, 1977, 31st December, 1982 and so on and will be submitted by the 31st March of the succeeding year. As regards persons appointed to services/posts after the date of issue of the Order, they will submit their first return as on the date of appointment within three months of their appointment. The second and subsequent returns will be submitted by them as on the crucial date for those who are already in service subject, however, to the proviso to sub-clause (i) of clause (b) of the Orders referred to in para 1 above.
5. The return will be submitted by the Government servants to the prescribed authority through the Administration Wing of the Ministry/Department Office in which the Government servant is for the time being serving. On receipt of the return, it would be scrutinized with reference to sanctions/report etc., already on record and thereafter forwarded with such remarks as may be necessary in the light of the scrutiny through the Vigilance Officers of the Ministry/Department/Office to the prescribed authority. The prescribed authority on receipt of the return and the remarks thereon will make such further scrutiny and also take such further action as may be necessary and will retain the returns in its custody.
6. It will be the responsibility of the prescribed authority to ensure that the returns in respect of all the officers are received by the due date and are properly scrutinized and kept on record. As regards officers on deputation, the prescribed authority in the parent department will be responsible for obtaining, scrutinizing and keeping the returns on record.
[Cabinet Sectt., Department of Personnel OM No. 25/7/65-Ests.(A), dated 8th January, 1973]
(19) Action be held in abeyance
Pending a further review of the question of submission of the return of Assets and Liabilities by Government servants as prescribed in this Department’s order No. 25/7/65-Ests.(A), dated the 6th January, 1973 (at 17) the Central Government in exercise of the powers conferred by sub-rule (1) of rule 18 of the Central Civil Services (Conduct) Rules, 1964 and all other powers enabling it in this behalf, directs that action in pursuance of the aforesaid order be held in abeyance until further orders.
[Cabinet Sectt., DP&AR OM No. 25/7/65-Ests.(A), dated 4th July, 1973]
(20) Central Civil Services (Conduct) Rules, 1964 – Amendments introduced therein by the Central Civil Services (Conduct) Amendment Rules, 1973 – Lease of immovable property.
The undersigned is directed to invite the attention of the Ministry of Finance, etc. to the Central Civil Services (Conduct) (Amendment) Rules, 1973 issued under the Department of Personnel Notification No. 25/57/64-Ests.(A) dated 05.01.1973 which seeks to amend rule 18 of the CCS (Conduct) Rules, 1964 in certain respects and also introduces a new Rule, namely, Rule 18A.
2. Clause (1) (d) of the Explanation below Rule 18 has been expanded to include specifically ‘television sets’ as well amongst the categories of movable properties mentioned in that clause and a new Explanation II has been added to the effect that for purposes of Rule 18, the term ‘lease’ would mean, except where it is obtained from, or granted to, a person having official dealings with the Government servant, a lease of immovable property from year to year or for any terms exceeding one year of reserving a yearly rent. Thus where the lessee or the lessor is a person having official dealings with the Government servant the general meaning of the term ‘lease’ as given in Section 105 of the Transfer of Property Act, 1882 would apply; it would include any agreement giving rise to the relationship of tenant or any conveyance, grant or devise of reality for designated period of conveyance of interest in real property for limited term with conditions attached, irrespective of the duration of such agreement, etc., or the mode of payment of rent or other consideration. This general meaning of the term ‘lease’ would also apply to the new Rule 18A which has been introduced by Rule 3 of the CCS (Conduct) (Amendment) Rules, 1973 relating to a transaction entered into by a Government servant in respect of immovable property situated outside India as also to any transaction with a foreigner, foreign Government, foreign organisation or concern in respect of any immovable property.
[Cabinet Secretariat, DP & AR OM No. 25/57/64-Ests.(A), dated 5th February, 1973]
Transfer of Property Act, 1882
Of Lease of Immovable Property
105. A lease of immovable property is a transfer of a right to enjoy such property, made for certain time, express or implied, or in perpetuity in consideration of a price paid or promised, or of money, a share of crops, service or any other thing of value, to be rendered periodically or on specified occasions to the transferor by the transferee who accepts the transfer on such terms.
Lessor, Lessee, premium and rent defined
The transferor is called the lessor, the transferee is called the lessee, the price is called the premium, and the money, share service or other thing to be so rendered is called the rent.
(21) Form of property return to be obtained from officers governed by the CCS (Conduct) Rules, 1964 – for the year ending 1973.
In continuation of this Department’s OM No. 25/7/65-Ests (A) dated 04.07.1973, (decision No.8) the Ministry of Home Affairs, etc., are requested to obtain the return of immovable property as on 01.01.1974 from I and Class II (Group A and Group B) Government servants in the proforma which was in vogue prior to the issue of this Department’s order No. 25/7/65-Ests.(A), dated 06.01.1973 (at 17) since the review contemplated in the aforesaid OM has not yet been completed.
[CS DP&AR OM No. 25/27/73-Estt. (A), dated 07.01.1974]
(22) Form for report/permission -
It has been decided that the existing forms of report/application to prescribed authority for building of or addition to a house should also include a column to indicate the “source of finance” with full details thereof. Accordingly, in supersession of the existing forms in this regard, the Forms enclosed may be used.
[CS DP&AR OM No. 11013/5/75-Ests.(A), dated 20.06.1975 – 13.08.1975]
(23) Appropriate authorities not to sanction acceptance of substantial amount as advance rent if it is in violation of the concerned State’s Act.
A survey conducted has revealed that there is a fairly wide-spread practice among Government servants to accept substantial amount as “advance rent” from the prospective tenants even in cases not covered by regular agreement entered into under the provisions of the Delhi Rent Control Act or other State Rent Control Acts. In this connection, attention is invited to the provisions contained in Section 5(2) (b) and Section 5 (4) (b) of the Delhi Rent Control Act which are reproduced below:-
5(2) (b) No person shall, in consideration of the grant renewal or continuance of a tenacy or sub-tenacy of any premise except with the previous permission of the Controller claim or receive the payment of any sum exceeding one month’s rent of such premises as rent in advance.
5(4) (b) Nothing in this section shall apply to any payment made under an agreement by any person to a landlord for the purpose of financing the construction of the whole or part of any premises on the land belonging to, or taken on lease by, the landlord, if one of the conditions of the agreement is that the landlord is to let to that person the whole or part of the premises when completed for the use of that person or any members of his family provided that such payment does not exceed the amount of agreed rent for a period of five years of the whole or part of the premises to be let to such person.
2. When a Government servant lets out the premises to a tenant, it obviously constitutes a transaction in immovable property under Rule 18 (2) of the CCS (Conduct) Rules, 1964 which inter-alia provides that no Government servant shall, except with the previous knowledge of the prescribed authority, acquire or dispose of any immovable property by lease, mortgage, purchase, sale etc. Such a Government servant is required to obtain the previous sanction of the prescribed authority of the transaction is:-
(a) With a person having official dealings with the Government servant; or
(b) otherwise than through a regular or reputed dealer.
3. The appropriate authorities should refrain from sanctioning acceptance of substantial amounts as advance rent, if this is proposed to be done in violation of the provisions of the Delhi Rent Control Act. For this purpose if necessary, the concerned authorities should ask for production of the lease agreement and examine it with a view to seeing that the conditions stipulated in Section 5 (4) (b) of the aforesaid Act or similar provisions in the State Rent Control Acts are satisfied.
4. The Ministry of Finance, etc. are, therefore, requested to bring to the notice of all persons working under them the contents of the Delhi Control Act and Rule 18 (2) of the CCS (Conduct) Rules, 1964 so that these provisions and similar other provisions in other States Acts, wherever they are applicable are strictly observed by Government servants.
[C.S. Deptt. of Personnel), OM No. 11013/18/75-Estt. (A), dated 21.02.1976]
(24) Chit Funds/Life Insurance Policies/Fixed Deposits in Banks by Government servants-Clarification regarding –
Clarification have been sought by Ministries/Departments from time to time on the following points:-
(i) Whether a Government servant requires permission of the Government for joining Chit Funds;
(ii) Whether a Government servant should report to or seek prior permission from the prescribed Authority for taking Life Insurance Policies; and
(iii) Whether a Government servant should obtain prior permission from the Prescribed Authority for making Fixed Deposits in Banks?
The above points are clarified in the succeeding paragraphs.
2. The subscriptions which a Government servant gives to a chit fund would be a transaction in movable property with-in the meaning of sub-rule (3) of Rule 18 of the CSS (Conduct) Rules, 1964. If the annual subscription to the chit fund exceeds the monetary limits, prescribed in Rule 18 (3) the Government servant has to report it to the prescribed authority under the aforesaid rule. Previous sanction of the Government would be necessary only if the Government servant concerned has official dealings with the chit fund and if it is not a registered chit fund company.
The amount that the Government servant may receive from the chit fund can be classified into two categories:-
(i) receiving the amount of the sum total of the contributions payable by all subscribers for any one installment less the discount or commission payable to the Chit Fund Company by bid before the expiry of the period upto which the subscription is to be made; and
(ii) receiving the amount at the time of maturity.
2.2. As regards 2 (i) above, since the amount received by a subscriber from the chit fund by bid would be more than the amount subscribed by him and the difference will have to be made good by him by future subscriptions upto the total period of the chit fund, the amount received in such case would amount to a loan received from the Chit Fund Company. Since the Chit Fund Company is not a banking company and the provisions of the Banking Regulations Act, 1949, are not, therefore, applicable to such companies, the loan received from the Chit Fund Company as explained above, may be regulated under sub-rule (4) of rule 16 of the CCS (Conduct) Rules, 1964. As regards (ii) above, if the amount received from the Chit Fund exceeds the prescribed limits in sub-rule (3) of rule 18 ibid the Government servant has to report to the prescribed authority under that sub-rule because the amount received by him would not be exclusively the amount subscribed by him but will also include the commission payable by the Chit Fund Company.
3.1 As regards the second point in para 1 (ii), it is clarified that a Government servant need not obtain prior permission from the Prescribed Authority for taking a Life Insurance Policy. He should, however, submit a report to the Prescribed Authority, if the annual premium on an insurance policy exceeds the monetary limits laid down in Rule 18 (3) of the CCS (Conduct) Rules, 1964. If , in any case, the annual premium initially determined was less than the monetary limits prescribed in the aforesaid rule 18 (3), but on conversion, the annual premium exceeds the said limits, a report to the Prescribed Authority is necessary at that stage. When a Government servant receives the sum assured as survival benefit/on maturity of the policy, he need not submit any report in this regard.
3.2 A Government servant need not report to the Prescribed Authority the fact of his having taken an insurance policy, if the annual premium thereon is less than the monetary limits prescribed in rule 18 (3) of the CCS (Conduct) Rules, 1964. He should, however, submit a report to the Prescribed Authority at the time of receiving the sum assured as survival benefit/on maturity of the policy.
4. Regarding the point raised in para 1 (iii) it is clarified the Fixed Deposits in Bank or Deposits in a Savings Bank account made by a Government servant from out of his salary or of accumulated savings would not come within the purview of rule 18 (3) of the CCS (Conduct) Rules, 1964.
[Cabinet Sectt. DP&AR OM No. 11013/12/76-Estt. (A), dated the 4th October, 1976].
(25) CCS (Conduct) Rules, 1964 – Prescription of time limits for grant of permission under certain rules thereunder.
The undersigned is directed to say that Government have had under consideration the question of imposing time-limits for action under the various rules of the CCS (Conduct) Rules, 1964, so that in matters governed by these rules where the exercise of a right available to a Government employee or the availing of an opportunity which may come his way, is subject to Government’s prior permission, the exercise of the right or the availing of the opportunity may not become in-fructuous because of any delay on the part of Government to grant necessary permission.
2. Accordingly, the matter has been examined with reference to the various provisions of the Conduct Rules in which taking of prior permission is visualized and the following time-limits are prescribed for granting or refusing permission in respect of some of the provisions. The time-limit is to be reckoned from the date of receipt of the request of the Government employee for the necessary permission under the relevant conduct rule. It, therefore, follows that an acknowledgement showing the date of receipt may be given to the employee when a request for permission is received.
Rule 8 (2), 13 (4), 18 (2) and (3) and 18-A - 30days
Rule 19 (1) - 6 weeks
In the event of failure on the part of the competent authority to communicate its decision to the Government employee concerned within the time-limits indicated above, the Government employee shall be free to assume that permission has been granted to him.
3. The above decision of the Government may be given wide publicity and all the authorities exercising powers under Conduct Rules advised suitably so that they may ensure that all requests of Government servants under the aforesaid rules are dealt with expeditiously and ordinarily no occasion need arise where a Government employee may be enabled to act on the assumption that permission has been granted in his case on account of the failure of the competent authority to convey its decision within the stipulated time.
[MHA, DP&AR OM No. 11013/17/77-Ests.(A), dated 19th April, 1978]
(26) CCS (Conduct) Rules, 1964 – Transaction entered into by the spouse and other members of family of a Government servant out of their own funds.
The undersigned is directed to say that references are being received in this Department from time to time from various Ministries and Departments seeking clarification regarding the applicability of provisions of sub-rules (2) and (3) of Rule 18 of the CCS (Conduct) Rules, 1964, to transactions entered into by the spouse and other members of family of a Government servant out of their own funds (including stridhan, gifts, inheritance etc.) as distinct from the funds of Government servant himself. It is hereby clarified that transactions entered into by the spouse or any other member of family of a Government servant out of his or her own funds (including stridhan, gifts inheritance etc.) as distinct from the funds of the Government servant himself, in his or her own name and in his or her own right, would not attract the provision of sub-rules (2) and (3) of rule 18 of the CCS (Conduct) Rules, 1964.
2. In view of the position-stated above, paragraph 2 (ii) of the Ministry of Home Affairs Office Memorandum No. 25/18/59-Estt.(A), dated the 28th August, 1959 (decision No. 8) may accordingly be treated as modified.
[MHA, Department of Personnel & AR OM No. 11013/13/78-Estt.(A), dated the 11th September, 1978]
(27) CCS (Conduct) Rules, 1964 – Fixed Deposits with Banks and Companies – Clarification regarding.
Fixed Deposits with public limited companies, whether in the private sector or the public sector, will be covered by the saving clause in the Rule 16 (4) of the CCS (Conduct) Rule, 1964 as public limited companies receive deposits from the public on authorization given by the Government under the Companies (Acceptance of deposit from the public) Rules, 1975. However, where the amount of deposit with a public limited company exceeds the monetary limits laid down in Rule 18 (3) of the CCS (Conduct) Rules, 1964, then a report to prescribed authority in regard to the deposit will be necessary under that rule.
Fixed Deposits with Banks are, as already provided in Rule 16 (4) of the CCS (Conduct) Rules, 1964, exempt from the operation of this rule. However, in regard to Fixed Deposits with Banks also, a report should be made to the prescribed authority under Rule 18 (3) of the CCS (Conduct) Rules, 1964, if the monetary limit laid down therein are exceeded. The clarification contained in para 4 of this Department Office Memorandum No. 11013/7/76-Ests.(A) dated 04.10.1976 will stand modified to this extent.
Day-to-Day Savings Bank transactions, either with a Bank or with a post-office would not, however come within the purview of Rule 18 (3) of the CCS (Conduct) Rules, 1964 as already provided in para 4 of this Department office Memorandum No. 11013/12/76-Ests.(A) dated the 4th October, 1976.
Day-to-Day Savings Bank transactions, either with a Bank or with a post-office would not, however come within the purview of Rule 18 (3) of the CCS (Conduct) Rules, 1964 as already provided in para 4 of this Department office Memorandum No. 11013/12/76-Ests.(A) dated the 4th October, 1976.
[Deptt. of Personnel & AR’s OM No. 11013/5/81-Ests.(A), dated 12.05.1982]
(28) Transactions of property coming within the purview of Rules 18 (2) & (3) – Forms for obtaining permission/giving intimation
In accordance with the provisions of sub-rule (2) of Rule 18 of the CCS (Conduct) Rules, 1964, all Government servants coming within the purview of these Rules are required to make a report to the prescribed authority before entering into any transaction of immovable property in their own name or in the name of a member of family. If the transaction is with a person having any official dealings with the Government servant, the Government servant is required to obtain prior sanction of the prescribed authority. Sub-rule (3), ibid provides that all Government servants should give an intimation to the prescribed authority within one month of entering into any transaction of movable property, the value of which exceeds the monetary limits prescribed in that Rule. In case any such transaction is with a person having official dealing with the Government servant, prior sanction of the prescribed authority is necessary.
2. The question of streamlining the procedure for obtaining prior sanction or making a report about the transactions of property by Government servants has been considered and it has been decided that all requests for obtaining prior sanction and making intimation about transactions in immovable and movable property may be made in the enclosed standard Forms I and II, respectively, devised for this purpose. These forms contain the basic information required by the prescribed authority in all cases for considering a request for grant of permission or taking note of an intimation given by the Government servant. The prescribed authority concerned, if it so desires, may seek any additional information/clarification about the transaction entered into by the Government servant, depending upon the facts and circumstances of the case.
3. The applications for obtaining sanction or making prior intimation regarding construction of a house will continue to be made in the form prescribed vide this Departments OM No. 11013/5/75-Estt. (A), dated 20th June, 1975. (Decision No. 10).
FORM – I
FORM - II
[DOPT OM No. 11013/11/85-Estt.(A), dated 23.06.1986]
(29) Rule 18 (4) of CCS (Conduct) Rules, 1964 calling of a statement of movable or immovable property at any time.
A question has been raised whether in addition to the return of assets and liabilities to be submitted at the time of initial appointment and the annual return of immovable property in case of Group A and Group B officers, the Government servants can be asked to furnish, at any time, the details of movable or immovable property held by them or on their behalf. Attention in this regard is invited to sub-rule (4) of Rule 18 of the CCS (Conduct) Rules, 1964, which provides that the Government or an authority prescribed under these rules, may at any time by a general or special order require any Government servant to furnish a full and complete statement of movable or immovable property held or acquired by him or on his behalf or by a member of his family. The Government servant can also be asked to indicate the means by which, or the source from which, such property was acquired.
[DOPT OM No. 11013/6/86-Estt.(A), dated 03.07.1986]
(30) Amendment to Rule 18 of the Central Civil Services (Conduct) Rules, 1964.
Reference is invited to Explanation I below Rule 18 of the Central Civil Services (Conduct) Rules, 1964 wherein it has been inter-alia clarified that the expression “movable property” used in this rule will include “loans advanced by such Government servants whether secured or not”. It has been decided that loans taken by Government servants should also be brought within the purview of Rule 18 of the CCS (Conduct) Rules, 1964. A formal amendment to Explanation I giving a clarification to this affect is being issued separately. In the meanwhile, the above position may be brought to the notice of all Government servants so that necessary sanction is obtained or intimation made in respect of all loans which require prior sanction/intimation under Rule 18 (3) of the CCS (Conduct) Rules, 1964 by virtue of this clarification.
[DOPT O.M. No. 11013/1/87-Estt.(A) dated 27.03.1987]
(31) Provision regarding expenditure incurred on repairs or minor construction work in respect of movable property.
According to the existing provisions of Rule 18 of the CCS (Conduct) Rules, 1964, prior permission of the prescribed authority is required for transaction in immovable property with a person, who is having official dealings with the Government servant concerned. In other cases, only a prior intimation is to be given.
2. The instructions contained in this Department’s OM No. 25/21/57-Estt. (A), dated 18.12.1957 (decision 14) provide, inter-alia, that where the expenditure incurred on repairs or minor construction work in respect of any immovable property belonging to a Government servant is estimated to exceed Rs. 1,000/-, sanction of the prescribed authority is necessary. The provisions have been reviewed in the light of the amendments to Rule 18 of CCS (Conduct) Rules, 1964 carried out from time to time and it has been decided that in respect of the expenditure incurred on repairs and minor additions to an immovable property by a Government servant, an intimation shall be necessary to be given to the prescribed authority only if the estimate exceeds Rs. 10,000/-. However, prior sanction of the prescribed authority should be obtained in all cases regardless of amount involved, where the transaction regarding the material purchased or contract for such repairs or minor construction, is with a person with whom the Government servant concerned has official dealings.
[DOPT OM No. 11013/9/89-Estt.(A), dated 27.11.1990]
(32) Transactions in sale and purchase of shares and debentures etc.
The provisions of sub-rule (4) of Rule 18 of the CCS (Conduct) Rules, 1964 provides that the Government or the prescribed authority may, at any time, by general or special order, require a Government servant to furnish within a period specified in the order, a full and complete statement of such movable or immovable property held or acquired by him or on his behalf or by any member of his family as may be specified in the order. Such statement shall, if so required by the Government or by prescribed authority, include the details of the means by which or the source from which, such property was acquired.
2. Sub-rule (1) of Rule 16 also provides that no Government servant shall speculate in any stock, share or other investment. It has also been explained that frequent purchase or sale or both, of shares, securities or other investments shall be deemed to be speculation within the meaning of this sub-rule.
3. It has been brought to the notice of the Government that a number of employees are investing in shares, securities and debentures etc. frequently. With a view to enable the administrative authorities to keep a watch over such transactions, it has been decided that an intimation may be sent in the enclosed proforma to the prescribed authority in the following cases:-
(i) Group ‘A’ and ‘B’ Officers – If the total transaction in shares, securities, debentures or mutual funds scheme etc. exceeds Rs. 50,000/- during the calendar year.
(ii) Group ‘C’ & ‘D’ Officers – If the total transactions in shares, securities, debentures or mutual funds scheme etc. exceeds Rs. 25,000/- during the calendar year.
4. It is clarified that since shares, securities, debentures etc. are treated as movable property for the purpose of Rule 18 (3) of the CCS (Conduct) Rules, 1964 if an individual transaction exceeds the amount prescribed in Rule 18 (3), the intimation to the prescribed authority would still be necessary. The intimation prescribed in para 3 will be in addition to this, where cumulative transaction(s) i.e. sale, purchase or both in shares, securities, debentures or mutual funds etc. in a year exceed the limits indicated in para 3.
[DOPT OM No. 11013/6/91-Estt.(A), dated 08.04.1992]
(33) Submission of annual returns by Group ‘A’ and Group ‘B’ officers regarding immovable property
In accordance with the provisions of clause (ii) of Rule 18 (1) of the CCS (Conduct) Rules, 1964, every Government servant holding a Group ‘A’ or ‘B’ post is required to submit an annual return giving full particulars regarding 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. It has been prescribed in MHA OM No. 25/10/55-Estt. (A) dated 12.01.1956 that such reports shall be submitted in the month of January, every year. The form used for this purpose has also been prescribed under the said OM. The need for obtaining these returns regularly and making careful scrutiny of the same was reiterated from time to time.
2. It has, however, been noticed that these returns are not submitted in time in many cases. Ministries/Departments are, therefore, requested to ensure that these returns are submitted by all Group ‘A’ and ‘B’ officers under their control in respect of every calendar year by 31st January of the next year. It may be impressed upon them that failure on the part of a Government servant to comply with the requirement of the aforesaid rule can form good and sufficient reason for instituting disciplinary proceedings against him. Strict action may be taken against employees who fail to submit the returns in time or furnish wrong information.
[DOPT OM No. 11013/12/93-Estt.(A), dated 24.01.1994]
(34) Transaction in immovable property under General Power of Attorney – applicability of CCS (Conduct) Rules
References are being received seeking clarification whether transaction in immovable properties made through Power of Attorney by Government servants would attract the provisions of the Conduct Rules. The matter has been examined in consultation with the Ministry of Law. The Ministry of Law has observed that acquisition/disposal of immovable property for a consideration through Power of Attorney effects de-facto transfer of possession of the immovable property. Hence the transaction of immovable property under Power of Attorney will attract the provisions of CCS (Conduct) Rules.
2. It is, therefore, clarified that transaction in immovable properties made by Government servants through Power of Attorney will attract the provisions of sub-rule (2) of rule 18 of the CCS (Conduct) Rules, 1964.
[DOPT OM No. 11013/9/98-Estt.(A), dated 29.12.1998]