Lending and borrowing.

Lending and borrowing.—

(1) No Government servant shallI (a) directly or indirectly engage in the business of money lending; or except with the previous sanction of Government, lend money to any person possessing land within the local limits of his authority, or at interest to any person; or save in the ordinary course of business with a Bank or a Firm of standing borrow money from, or otherwise place himself under pecuniary obligation to, any person subordinate or superior to him or anyone else within the local limits of his authority; or except with the previous sanction of Government, permit any member of his family to enter into any transaction of the nature of those prohibited in this case of Government seivants; Provided that-

(i) clause (b) does not preclude the making of advances of pay to private servants even if they possess land within the local limits of the Government servant's authority; -

(ii)-clause (c) does not preclude the acceptance of a purely temporary loan of small amount, free of interest, from a personal friend or the operation of reasonable credit account with a bona JIde tradesman; this sub-rule shall, in its application to. the dealings of a Government servant with a Co-operative Society registered or deemed to have been registered under the Co-operative Societies Act or under any similar law, be subject to such relaxations as Government may, by special or general order, direct; clause (c) will not permit a Government servant who has to deal officially with a Bank or a Finn from placing himself under a pecuniary obligation to such Bank or Firm. Wherever a Government servant propose to enter into such a relationship with a Bank or Firm, he should first inform Government and obtain orders.

(2) When a Government servant is appointed or transferred to a post of such a nature as to involve him in the breach of any of the provisions of sub-rule (1) he shall forthwith report the circumstances to Govermnent, and shall thereafter act in accordance with such orders as may be passed by Government. A non-gazetted Government servant shall make the report referred to above to the Head of the Department concerned. Note:—The term 'land' in the above nile includes house property. The above rule does not prevent a Government servant from borrowing money from a Co-operative Society of which he is a member provided that where the borrowing is on personal security, the surety shall not be a Government servant subordinate to him. The prohibition as regards the lending and borrowing of money applies to all loans, credits, advances, supply of articles or accommodation at unduly low rates or for insufficient consideration and to sales of property for inordinate prices. The fact that a Government servant lending money is acting as an executor, administrator Or as a trustee without profit or advantage to himself in no way affects the prohibition. . A Government servant who belongs to a Joint Hindu Family carrying on the business of money-lending as an ancestral profession is exempted from the prohibition, provided he takes no active share in the business and is not employed in a district in which the transactions of the firm are carried on. A Government servant engaged in teaching is prohibited from having pecuniary relations with any pupil or ex-pupil or parent or guardian of a pupil or ex-pupil or with the staff or establishments of the school or college in which he is employed. A person who has ceased to be a pupil of the Government servant for a period of over two years will not be regarded as an ex-pupil for the purpose of this rule.