Prohibition of Government servants from bidding at Government auctions (either personally or by proxy)

(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]