transaction in movable and immovable properties

(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]