Rule 24 — CCS Conduct Rules
Original Rule Text
24 Government of India. (1961). The Dowry Prohibition Act, 1961, Section 3–4. 25 CCS (Conduct) Rules, 1964, Rule 14. 26 Ibid., Rule 15.
Previous permission for joining any elective office is required. Further, in case, previous sanctions are granted by the competent authority for private trade or business, relevant provisions of Fees under FRSR are applicable.
Rule 15A: Subletting and Vacation of Government Accommodation
Government servants provided with official accommodation must adhere to strict rules regarding its usage, subletting, and timely vacation upon cessation of service.
A government servant shall not sublet, lease, or share government accommodation allotted to them without prior permission from the competent authority. Allowing any unauthorized person to stay in government quarters is strictly prohibited. Employees must also vacate the premises upon transfer, retirement, resignation, or termination of service.
Failure to vacate government accommodation within the stipulated time may result in penal rent, legal action, or disciplinary proceedings. Any misuse or unauthorized occupation of government quarters may be treated as misconduct27 .
# Rule 16: Investment, Lending, and Borrowing
Government servants must follow financial discipline in their personal financial dealings, particularly in investments, lending, and borrowing.
Employees shall not:
Make speculative investments in stocks (intra-day trading and similar practices), shares, or property that could lead to conflicts of interest.
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Lend or borrow money from subordinates, colleagues, or individuals with whom they have official dealings. Engage in financial transactions that may result in undue influence or financial dependence on another person28 .
If an employee is required to make a significant financial transaction, such as purchasing property or investing in high-value assets, they must report it to the government if the amount exceeds the prescribed limit In case overall transaction in shares/debenture/Mutual Funds/SIP in a calendar year is more than six times of the Basic Pay, details are required to be reported upon in the prescribed format, as is the case of Annual Property Return.
What This Means
Rules 15A, 16, and 17 address the responsibilities of government servants in respect of government accommodation, personal investments, and financial solvency. Rule 15A applies to employees who have been allotted government quarters. They must not sublet, lease out, or allow unauthorized persons to share the accommodation without explicit permission. Upon cessation of service — whether by transfer, retirement, resignation, or dismissal — the accommodation must be vacated within the stipulated period. Failure to vacate attracts penal rent (a significantly higher than normal rent charged as a penalty), legal proceedings, and can be treated as misconduct.
Rule 16 governs personal financial conduct. Government servants must not make speculative investments — particularly intra-day stock trading — that could create conflicts of interest or reflect poorly on their integrity. They cannot lend or borrow money from subordinates, colleagues who report to them, or persons with whom they have official dealings. This is to prevent financial dependency that could compromise official impartiality. If investments in shares, debentures, mutual funds, or SIPs in a calendar year exceed six times the employee's basic pay, the details must be reported in the prescribed format, similar to the Annual Property Return.
Rule 17 requires government servants to manage their financial obligations responsibly. Becoming insolvent, or being habitually indebted, can trigger an inquiry into whether the financial distress affects the employee's ability to perform their duties without bias. The theory is that a financially desperate official is more susceptible to bribery and undue influence. Repeated failure to clear financial obligations is a conduct issue independent of whether it affects official duties — it reflects poorly on the integrity and judgment expected of a public servant.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Rule 15A: Government accommodation must not be sublet or shared with unauthorized persons without prior permission.
- 2Vacant possession must be given promptly on transfer, retirement, resignation, or termination — delays attract penal rent and may be treated as misconduct.
- 3Rule 16: Speculative investments, especially intra-day stock trading, are prohibited.
- 4Lending to or borrowing from subordinates and persons with official dealings is prohibited under Rule 16.
- 5Investment transactions in shares/debentures/MFs exceeding six times basic pay in a calendar year must be reported.
- 6Rule 17: Insolvency or habitual indebtedness can trigger an inquiry and disciplinary proceedings.
- 7Financial vulnerability is considered a conduct issue because it creates susceptibility to bribery.
Practical Example
Pradeep, a government officer, was allotted a two-bedroom government quarter. After his transfer to another city, he informally 'rents' the quarter to a friend and continues to pay the nominal allotment rent while pocketing the market rent from his friend. This is a direct violation of Rule 15A. The estate office can initiate recovery of penal rent for the unauthorized period, and the department can initiate disciplinary proceedings.
In the financial domain, Meenu is a Deputy Director whose monthly basic pay is Rs. 60,000. During a calendar year, she invests a cumulative Rs. 5,00,000 in various mutual fund SIPs — more than six times her basic pay (Rs. 3,60,000). She is required to report these investments to the competent authority in the prescribed format. She also lends Rs. 1,00,000 to a junior colleague at interest, which is prohibited under Rule 16 as lending to a subordinate.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
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This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.