Commercial employment after retirement
10. Commercial employment after retirement (1) If a pensioner who immediately before his retirement was a member of Central Service Group `A' wishes to accept any commercial employment before the expiry of two years from the date of his retirement, he shall obtain the previous sanction of the Government to such acceptance 1 [by submitting an application in Form 25] : Footnote 1. Inserted by G.I., Dept. of Per. & A.R., Notification No. 29/4/83-Pension Unit, dated the 15th November, 1984 and takes effect from 1st December, 1984. Provided that a Government servant who was permitted by the Government to take up a particular form of commercial employment during his leave preparatory to retirement or during refused leave shall not be required to obtain subsequent permission for his continuance in such employment after retirement. 2 (2) Subject to the provisions of sub-rule (3), the Government may, by order in writing, 3 [on an application made under sub-rule (1)] by a pensioner grant, subject to such conditions, if any, as it may deem, necessary permission, or refuse for reasons to be recorded in the order, permission, to such pensioner to take up the commercial employment specified in the application. Footnote 2. Inserted by G.I., M.F., Notification No. F.5 (5)-E. V (A)/76, dated the 10th August, 1976. 3. Substituted by G.I., Dept. of Per. & A.R., Notification No. 29/4/83-Pension Unit, dated the 15th November, 1984. 1 (3) In granting or refusing permission under sub-rule (2) to a pensioner for taking up any commercial employment, the Government shall have regard to the following factors, namely :- (a) the nature of the employment proposed to be taken up and the antecedents of the employer; (b) whether his duties in the employment which he proposes to take up might be such as to bring him into conflict with Government; (c) whether the pensioner while in service had any such dealing with the employer under whom he proposes to seek employment as might afford a reasonable basis for the suspicion that such pensioner had shown favours to such employer ; (d) whether the duties of the commercial employment proposed involve liaison or contact work with Government departments ; (e) whether his commercial duties will be such that his previous official position or knowledge or experience under Government could be used to give the proposed employer an unfair advantage ; (f) the emoluments offered by the proposed employer ; and (g) any other relevant factor. Footnote : 1. Inserted by G.I., M.F., Notification No. F. 5 (5)-E. V (A)/76, dated the 10th August, 1976. (4) Omitted vide DOPT's Notification No. 27012/5/2000-EStt(a) dated 30-1-2002 published as GSR 75(E) in Gazette India dated 1-2-2002. 1 (5) Where the Government grants the permission applied for subject to any conditions or refuses such permission, the applicant may, within thirty days of the receipt of the order of the Government to that effect, make a representation against any such condition or refusal and the Government may make such orders thereon as it deems fit : 1/30/2019 CHAPTER http://persmin.nic.in/pension/rules/pencomp2.htm#Regulation%20of%20claims%20to%20pension%20or%20family%20pension 18/21 Provided that no order other than an order cancelling such condition or granting such permission without any conditions shall be made under this sub-rule without giving the pensioner making the representation an opportunity to show cause against the order proposed to be made. 1 (6) If any pensioner takes up any commercial employment at any time before the expiry of two years from the date of his retirement without the prior permission of the Government or commits a breach of any condition subject to which permission to take up any commercial employment has been granted to him under this rule, it shall be competent for the Government to declare by order in writing and for reasons to be recorded therein that he shall not be entitled to the whole or such part of the pension and for such periods as may be specified in the order : Provided that no such order shall be made without giving the pensioner concerned an opportunity of showing cause against such declaration : Provided further that in making any order under this sub-rule, the Government shall have regard to the following factors, namely :- (i) the financial circumstances of the pensioner concerned; (ii) the nature of, and the emoluments from the commercial employment taken up by the pensioner concerned; and (iii) any other relevant factor. 1 (7) Every order passed by the Government under this rule shall be communicated to the pensioner concerned. Footnote : 1. Inserted by G.I., M.F., Notification No. F. 5 (5)-E. V (A)/76, dated the 10th August, 1976. 2 (8) In this rule, - Footnote : 2 Renumbered by G.I., M.F., Notification No. F. 5 (5)-E. V (A)/76, dated the 10th August, 1976. (a) the expression "commercial employment" means :- (i) an employment in any capacity including that of an agent, under a company, co-operative society, firm or individual engaged in trading, commercial, industrial, financial or professional business and includes also a directorship of such company and partnership of such firm, but does not include employment under a body corporate, wholly or substantially owned or controlled 3 [by the Central Government or a State Government] ; Footnote : 3 .Substituted by G.I., M.H.A., Dept. of Per. & A.R., Notification No. F. 38/2/81-Pension Unit, dated the 30th April, 1981. (ii) setting up practice, either independently or as a partner of a firm, as adviser or consultant in matters in respect of which the pensioner - (A) has no professional qualifications and the matters in respect or which the practice is to be set up or is carried on are relatable to his official knowledge or experience, or (B) has professional qualifications but the matters in respect of which such practice is to be set up are such as are likely to give his clients an unfair advantage by reason of his previous official position, or 1 [(C) has to undertake work involving liaison or contact with the offices or officers of the Government.] 1/30/2019 CHAPTER http://persmin.nic.in/pension/rules/pencomp2.htm#Regulation%20of%20claims%20to%20pension%20or%20family%20pension 19/21 Footnote : 1. Inserted by G.I., Dept. of Per. & A.R., Notification No. 6 (2)-Pen. (A)/79, dated the 1st August, 1980. 2 (iii) [Omitted, vide Notification No. 6(2) - Pen(A)/79 dated 1-8-1980.] Footnote : 2. Deleted by G.I., Dept. of Per. & A.R., Notification No. 6 (2)-Pen. (A)/79, dated the 1st August, 1980. EXPLANATION. - For the purpose of this clause, the expression "employment under a co-operative society" includes the holding of any office, whether elective or otherwise, such as that of President, Chairman, Manager, Secretary, Treasurer and the like, by whatever name called in such society; (b) the expression "date of retirement", in relation to a Government servant reemployed after retirement, without any break, either in the same or in another Group `A' post under the Government or in any other equivalent post under a State Government, means the date on which such Government servant finally ceases to be so re-employed in Government service. NOTE : Govt. of India orders relating to this Rule will be put on website on receipt of information from Estt. Division of DOPT.