Rule 27 — CCS Conduct Rules
Original Rule Text
27 Government of India. (1961). The Dowry Prohibition Act, 1961, Section 3–4. 28 Ibid., Rule 16.
An employee who becomes insolvent or is unable to meet their financial liabilities may be subject to an inquiry to determine whether their financial mismanagement affects their ability to perform their duties. Habitual indebtedness, defined as repeated failure to clear financial obligations, reflects poorly on a government servant’s integrity and may result in disciplinary action29 .
Employees must ensure that they handle their finances prudently, avoiding excessive loans or debts that could impact their professional reputation or impartiality.
This chapter highlights the ethical and financial responsibilities of government servants. By regulating the acceptance of gifts, prohibiting dowry, restricting private trade, and ensuring financial discipline, the CCS (Conduct) Rules, 1964, seek to maintain the integrity and credibility of government employees.
Property Transactions and Personal Conduct
24/31
https://www.istm.gov.in/home/css_conduct_rules
Home | Institute of Secretariat Training & Management | Govt. of India
23/03/2026, 13:35
Government servants must maintain transparency and accountability in their financial and personal dealings to uphold public confidence in administration. The CCS (Conduct) Rules, 1964, lay down clear provisions regarding declaration of property, transactions with foreign entities, vindication of personal acts, influence peddling, and restrictions on marriage. These rules ensure that employees act with integrity, avoid conflicts of interest, and adhere to ethical personal conduct30 .
# Rule 18: Declaration of Movable, Immovable, and Valuable Property
A government servant must declare all movable and immovable property, including valuable assets, to the government at prescribed intervals.
Employees are required to submit annual property returns, listing details of land, buildings, jewellery, shares, bonds, and any other high-value assets owned by them, their spouse, or dependent family members.
Prior permission from the competent authority is required before purchasing, selling, or transferring any immovable property such as land, houses, or apartments. Transactions involving large sums of money or significant financial gains must be reported to the government to ensure accountability31 .
What This Means
This section concludes the discussion on insolvency (Rule 17) and introduces Rule 18 on the mandatory declaration of movable, immovable, and valuable property. The insolvency provision of Rule 17 reflects a well-established principle: a financially distressed government servant is more vulnerable to corruption. The government does not immediately punish an employee who faces financial difficulty, but it reserves the right to inquire into the circumstances and determine whether the employee's financial position has been caused by misconduct, imprudence, or factors outside their control. If misconduct is found — for instance, living well beyond one's salary — it can result in disciplinary action.
Rule 18 is a transparency mechanism of great practical importance. Every government servant is required to file an Annual Property Return declaring all movable property (jewelry, shares, bank deposits, vehicles, etc.) and immovable property (land, houses, flats) owned by them, their spouse, and dependent family members. The declaration must be made in the prescribed format to the prescribed authority. Before making any transaction involving immovable property — purchase, sale, gift, or mortgage — prior permission from the competent authority is required if the transaction value exceeds limits set by the rules.
For movable property in the form of shares or equity, the thresholds are layered: if a single transaction exceeds two times the monthly basic pay, it is a Rule 18 reportable transaction. If the cumulative annual investment in shares/debentures/MFs exceeds six times the basic pay, it is reportable under Rule 16 as well. Both reporting obligations apply simultaneously in that case. Failure to file or filing a false property return is a serious misconduct that can result in prosecution under the Prevention of Corruption Act in addition to departmental action.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Rule 17: Financial distress (insolvency, habitual indebtedness) triggers an inquiry — misconduct findings can lead to disciplinary action.
- 2Rule 18: Every government servant must file an Annual Property Return disclosing all assets of self, spouse, and dependents.
- 3Prior permission is required before purchasing, selling, mortgaging, or gifting any immovable property.
- 4A single share/equity transaction exceeding two times monthly basic pay must be reported under Rule 18.
- 5If cumulative annual investments exceed six times basic pay, reporting is required under both Rule 16 and Rule 18.
- 6Declaration covers all high-value assets: land, buildings, jewelry, shares, bonds, vehicles, and bank deposits.
- 7False or incomplete property returns can attract prosecution under the Prevention of Corruption Act.
Practical Example
Ajay, a Group A officer with a basic pay of Rs. 80,000 per month, sells a flat he owns in Delhi for Rs. 75 lakh without informing his department. This is a major violation of Rule 18 — prior permission was required before the transaction, and the transaction must also be disclosed in his Annual Property Return. His department initiates a scrutiny proceeding, finds the omission, and issues a charge memo.
In another case, Kavitha files her Annual Property Return but conveniently omits shares worth Rs. 12 lakh held in her spouse's demat account. Omission of family members' assets is a specific violation of Rule 18. During a vigilance check triggered by an unrelated complaint, the omission is discovered. Kavitha faces action for filing a false or incomplete property return.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
▼
▼
▼
▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.