Employment of near relatives of Govt. servants in companies or firms

4. Employment of near relatives of Govt. servants in companies or firms

(1) No Government servant shall use his position or influence directly or indirectly to secure employment for any member of his family in any company or firm.

(2) (i) No Group ‘A’ officer shall, except with the previous sanction of the Government, permit his son,daughter or other dependant, to accept employment in any company or firm with which he has official dealings or in any other company or firm having official dealings with the Government:

Provided that where the acceptance of the employment cannot await prior permission of the Government or is otherwise considered urgent, the matter shall be reported to the Government; and the employment may be accepted provisionally subject to the permission of the Government.

(ii) A Government servant shall, as soon as he becomes aware of the acceptance by a member of his family of an employment in any company or firm, intimate such acceptance to the prescribed authority and shall also intimate whether he has or has had any official dealings with that company or firm:

Provided that no such intimation shall be necessary in the case of a Group A officer if he has already obtained the sanction of, or sent a report to the Government under clause (i).

(3) No Government servant shall in the discharge of his official duties deal with any matter or give or sanction any contract to any company or firm or any other person if any member of his family is employed in that company or firm or under that person or if he or any member of his family is interested in such matter or contract in any other manner and the Government servant shall refer every such matter or contract to his official superior and the matter or contract shall thereafter be disposed of according to the instructions of the authority to whom the reference is made.

Government of India Decision

(1) Propriety of sons and near relatives of Class I (now Group A) officers seeking employment in private firms which enjoy Government patronage – 

The question has been raised of propriety of sons and near relatives of senior officers of Government seeking employment in private firms which enjoy Government patronage. Government have no desire to stand in the way of the sons or near relations of officers getting employment in private firms which they may by qualifications and merit deserve. It is, however, necessary in the public interest to ensure not only that an officer is under no obligation to a private firm with which he has official dealings, but also that even a suspicion of such influence is avoided. The latter is equally important because Government should not be in the embarrassing position of having the bona fides of their senior officers questioned. It has, therefore, been decided that whenever the sons/daughters or dependents of Class I (Group A) officers of the Government wish to accept employment with private firms with which the officers have official dealings, the fact should be reported to Government by the officers concerned and the Government’s permission should be obtained to such employment. Where, however, the acceptance of such employment could not await Government’s prior permission or the matter is otherwise considered urgent, a report should be made to Government and the employment accepted provisionally subject to Government’s permission.

[MHA OM No. 25/43/55-Ests.(A), dated 19.01.1956]