THE ALL INDIA SERVICES (CONDUCT) RULES, 1968
RULE 16. MOVABLE, IMMOVABLE AND VALUABLE PROPERTY:
Government of India Decisions
Members of the Service serving in connection with the affairs of the Union or serving under a Foreign Government or outside India shall submit the declaration under sub-rule 1 & 2 in Form 1.
(1) The members of the Service serving in connection with the affairs of the Union or serving under a Foreign Government or outside India shall submit the declaration under sub-rule 1 & 2 in Form 1. The declaration shall be submitted in duplicate, one copy being forwarded to the State Government, on whose cadre the member is borne, and the other to Establishment Officer to the Government of India. As far as the members of the Service serving in connection with the affairs of the State are concerned, the State Governments may adopt the same form, subject to such changes, if any, as they may consider necessary in the light of local conditions. In their case also, the declaration shall be submitted in duplicate, one copy being forwarded to the Government of India in the Ministry of Home Affairs.
2. The returns shall be submitted in separate sealed covers subscribed as follows:-
"Statement of immovable property furnished under rule 16 (1) of the All India Services (Conduct) Rules, 1954, on the first appointment for the year.
Name (In block letters)(Service, Cadre) and Designation of Officer."
3. The returns in respect of members serving in connection with the affairs of the Union etc., will be kept in separate folders. When the return relating to a particular year is received from such a member it would be added to the relevant letter and retained in safe custody, after it is scrutinized by the Deputy Secretary (Vigilance). The State Governments may also adopt the same course in respect of returns of members serving under them.
Form I »
[G.I., M.H.A. letter and O.M. No. 8/2/54-AIS (II), dated 8th November, 1955, and O.M. No. 18/2/55-AIS (III), dated 23rd May, 1956 read with letter No. 12(2)-E.O. III/69, dated 13th November, 1959]
Return of immovable property shall be submitted by the members of the Service on their first appointment to the Service.
(2) The return of immovable property shall be submitted by the members of the Service on their first appointment to the Service within a month of such appointment and subsequently in the month of January every year. The initial return shall show the position as on the date of their appointment and subsequent returns as on the 1st January of the year in which they are submitted.
Form II »
Form III »
[G.I., M.H.A. No. 8/9/60-AIS (III), dated 16th February, 1960]
Applications from officers of the All India Services entering into transactions concerning immovable properties, otherwise than through a regular/reputed dealer.
(3) Applications from officers of the All India Services entering into transactions concerning immovable properties, otherwise than through a regular/reputed dealer, are at present, dealt with in the Ministry of Home Affairs. As a rule all such applications should be routed through the 'head of Department' of the Organisation under which the officer is serving for the time being and the later while forwarding these applications should indicate a positive recommendations whether in his opinion permission to enter into the proposed transaction may be granted/withheld.
[M.H.A. letter No. 8/53/64-AIS (III), dated 27th October, 1964]
Share in a joint family property is required to reported.
(3A) Under this rule, a member of the Service who has share in a joint family property is required to report it. He is also required to obtain Government's permission for the disposal of his share in the joint family property, when such permission is necessary under sub-rule (4).
[G.I., M.H.A. U.O. No. 6/34/57-AIS (II), dated 7th May, 1957]
Purchase of any movable property exceeding Rs.10,000/- in value.
(3B) The Govt. of India have decided that the purchase of any movable property exceeding Rs.10,000/- in value by a member of the Service for the construction or extension of a house shall be reported to the prescribed authority in the following manner:
(i) before starting the construction/extension, he shall report or seek permission, as the case may be, in form II, and
(ii) after completing the construction/extension, he shall report in Form III.
2. The details in Forms II and III shall be furnished wherever it is possible to do so. Where however it is not possible to furnish details, the members shall mention the covered area, on which the building is proposed to be erected, and the estimated cost of the building.
The decision should be construed to have been issued under Rule 16.
[G.I. M.H.A. letter No. 6/5/57-AIS (III), dated 12th September, 1957, read with letter No. 11017/25/75-AIS (II), dated 9th September, 1975 and letter No. 11017/40/75-AIS (III), dated 11th November, 1975]
The construction etc. to be done by any contractor.
(3C) It should inter alia also be mentioned in the prescribed form I whether the construction etc. would be done by any contractor. If the construction is to be done by a contractor he should also indicate whether he had or has any official dealings with the contractor.
[M.H.A. letter No. 8/55/63-AIS (III), dated 1st February, 1964]
Interest in the joint family property.
(4) In the case of a member of the Service governed by the Dayabhai School, he has no right in the ancestral property, so long as father is alive. His interest in the joint family property which is non-existent is not therefore, to be included in the return prescribed in sub-rule (3).
[G.I., M.H.A. letter No. 6/37/57-AIS (II) dated 18th November, 1957]
Expenditure to be incurred on repairs or minor construction work in respect of an immovable property.
(5) The Government of India have decided that in cases, where the expenditure to be incurred on repairs or minor construction work in respect of an immovable property belonging to a member of the Service exceeds Rs. 10,000, prior sanction of the prescribed authority is necessary and the procedure outlined in Government of India's decision (2) above shall be followed.
[G.I., M.H.A. letter No. 6/50/57-AIS (II), dated 7th January, 1958]
Repairs costing more than Rs.10,000/-, to a joint family property, in which a member of the Service had interest.
(6) A question arose whether repairs costing more than Rs.10,000/-, to a joint family property, in which a member of the Service had interest, should be reported to the prescribed authority, when the expenditure was being, met from the joint family fund. The Government of India had decided that permission would be necessary only if the share of the member of the joint family funds is such, that the proportionate share of liability falling on him would exceed Rs. 2,000.
[G.I., M.H.A., U.O. No. 16/64/58-AIS (III), dated 2nd August, 1958.]
Return of immovable property to the State Government concerned.
(7) I.C.S. officers permanently seconded to the I.F.S. are required to submit one copy of the return of immovable property to the State Government concerned.
[G.I., M.H.A. letter No. 16/11/59-AIS (III), dated 1st September, 1959]
Transaction involving purchase of movable property exceeding Rs.2,000/- in value by the wife or by another member of the family.
(8) A question was raised whether a transaction involving purchase of movable property exceeding Rs.2,000/- in value by the wife or by another member of the family of an All India Service Officer, entirely from his/her funds, is required to be reported to the Government and whether such property should be included in the property return which the State Government may call for under sub-rule (4).
2. It has been decided that such transactions in movable property need not be reported to the Government. As regards similar transactions in immovable property by the family members of an All India Service Officer, while they are not required to be reported as and when they are entered into, they have to be included, as separate items in the returns of immovable property prescribed in sub-rule (3).
3. As regards return which the State Governments may prescribe under sub-rule (4), it is not, circumscribed by the provision of sub-rule (2). Thus, though there is no mention of the members of the family in sub-rule (2), the State Governments are not precluded from requiring from their officers to include marble or immovable properties held or acquired by the members of their families in the return prescribed by them under sub-rule (4).
[G.I., M.H.A., letter No. 16/33/59-AIS (III), dated 9th September, 1959]
Purchases of Postal or National Saving Certificate.
(9) The Government of India have decided that, while fixed deposits in a bank or deposit in a saving bank account made by a member of the Service from out of his salary or accumulated savings would not come within the scope of sub-rule (2), it would be necessary for the member to report to the Government all purchases of Postal or National Saving Certificate exceeding Rs. 2,000 in value, from such accumulated savings or deposits in banks or post offices, as the Postal or National Saving Certificates come in the same category as insurance policies, shares, securities and debentures mentioned in Explanation (a).
[G.I., M.H.A. letter No. 16/59/59-AIS (III), dated 12th January, 1960]
Rule apply to transactions, even though they are with persons outside the jurisdiction.
(10) Provisions of this rule apply to transactions, even though they are with persons outside the jurisdiction of a member of the Service or outside the State, on whose cadre he is borne. In such cases, the procedure to be followed before grant of sanction approval to the purchase or sale of immovable property by the member is, that the State Government may ascertain from the local authorities, in the case of property situated within the State, whether the price to be paid or the sale price is reasonable in the case of sale or purchase of immovable property situated outside the State the State Government concerned may be addressed in the matter.
[G.I. MHA letter No. 8/4/60-AIS (III) dt. 30th January 1961]
Contribution towards the construction of a building on a plot of land owned by a member of his family.
(11) A doubt was raised whether sanction of the Government was necessary where a member of the Service contributed towards the construction of a building on a plot of land owned by a member of his family.
2. Such a transaction would come within the scope of sub-rule (4) if the contribution in cash or kind exceeds Rs.2,000/- in value. The requirement of this sub-rule should, therefore, be complied with by the officer.
[M.H.A. letter No. 8/6/61-AIS (III), dated 16th February, 1961]
Transaction in immovable property with the Government.
(12) Where a member of the Service enters into a transaction in immovable property with the Government no prior sanction is necessary.
[M.H.A. letter No. 8/36/61-AIS (III), dated 25th August, 1961]
Construction/ extension is financed entirely by a member of the family of the officer.
(13) The intention behind the forms prescribed in Government of India's decision (2) above is that the immovable property that would be acquired during the construction/extension should be reported to the Government as required by sub-rule (4). If the construction/ extension is financed entirely by a member of the family of the officer, rule 16 would not be attracted and hence it would not be necessary for him to submit the reports; but where such construction/extension is financed wholly or partly by a member of the Service in his own name or in the name of any member of his family, reports will have to be submitted.
[M.H.A. letter No. 8/19/62-AIS (III), dated 15th March, 1962]
'Co-operative Society' can be termed as a regular/reputed dealer.
(14) The Government of India have decided that a 'Co-operative Society' can be termed as a regular/reputed dealer for purposes of rules 16(3) and 16(4) of the All India Services (Conduct) Rules, 1968.
[M.H.A. letter No. 8/69/62-AIS (III), dated 4th September, 1962]
Gifts made by a member of the Service to his wife relative dependents etc.
(15) Sub-rules (3) and (4) extend to gifts made by a member of the Service to his wife relative dependents etc. When a gift is made by a member of the Service to his relative or dependents the question of approaching a dealer or an agent would not arise. The proviso to sub-rules (3), (4) of rule 16 have therefore, no application where the nature of transaction is such as to exclude the possibility of the engagement of a dealer or agent. In view of this, a member of the Service need not obtain the prior permission of the Government for making gifts to his wife or relatives or anyone else. It would suffice if he makes a report to the Government under rule 16(3) or 16(4) as the case may be for information.
[Deptt. of Personnel and A.R. letter No. 9/15/71-AIS (III), dated 26th August, 1971]
Ex-post-facto report of a transaction in immovable property conducted through or with a regular or reputed dealer.
(16) A question has arisen whether-
(a) clauses (i) and (ii) of the proviso to sub-rules (3) and (4) of rule 16 of the All India Services (Conduct) Rules, 1968 are mutually exclusive; and
(b) it is in order if an officer submits an ex-post-facto report of a transaction in immovable property conducted through or with a regular or reputed dealer.
The correct position is explained in the succeeding paragraphs.
2. Clauses (i) and (ii) of proviso to sub-rules (3) and (4) of rule 16 ibid are not mutually exclusive. The proviso is attracted if the transactions in movable and immovable properties come under either of the clauses, thereof. Thus, a member of the Service has to obtain the previous sanction of the government in the following types of transactions:-
(i) transaction with a person having official dealings with the member of service.
(ii) transaction with a person having no official dealings with the member of the service.
When a member of the Service reports to the Govt., or seeks permission of the Govt. of a transaction, he has to indicate whether he has had any official dealings with the person with whom he has entered into or proposes to enter into, transactions in movable or immovable properties.
2.1. As regards the question whether the ex-post-facto report submitted to the Govt. by a member of the Service about transaction in immovable property is in order, it is pointed out that sub-rule (3) of rule 16 ibid provides that no member of the Service shall enter into a transaction in immovable property, without the previous knowledge of the Government. That is to say cases, where a member of the service is not required to obtain previous sanction of the Government for entering into a transaction in immovable property, he has to give prior intimation to the Government about the transaction. In view of this requirement submitting an ex-post-facto report to the Government about a transaction in immovable property conducted through a regular or reputed dealer is not in accordance with the provisions of the rules. As regards transactions in movable property entered to with a person having no official dealings with the member of the service, he has to report to the Government within one month of the transaction.
[Deptt. of Personnel & A.R. letter No. 5/18/73-AIS (III), dated 20th July, 1973; M.H.A. letter No. 11017/46/75-AIS (III), dated 13th April, 1976]
Sub-rules (3) and (4) of rule 16 of the All India Services (Conduct) Rules, 1968.
(17) Sub-rules (3) and (4) of rule 16 of the All India Services (Conduct) Rules, 1968, apply only to properties acquired etc. by the members of the Service either in their own names or in the names of the members of their families. In other words, the properties either acquired by the members of the families of the officers from out of their own funds or inherited by them would not attract the provisions of the rules. As such, the movable/ immovable properties owned, etc. by the members of the families of the officers, which are either inherited by them or acquired by them from out of their own funds, are not required to be included in the property returns envisaged in sub-rule (2) of rule 16 ibid.
(Letter No 5/4/74-AIS (III), dated 21st February, 1974]
Acquiring immovable and movable properties by inheritance.
(18) A question has arisen as to whether a member of All India Services should report to, or seek permission of, Government under sub-rule (3) and (4) of the rule 16 of the All India Services (Conduct) Rules, 1968 for acquiring immovable and movable properties by inheritance. The following clarification is issued for the guidance of the State Government:-
2. Sub-rule (3) of rule 16 provides that no member of the Service shall, except with the previous knowledge of the Government:-
(a) Acquire any immovable property by lease, mortgage, purchase, gift or otherwise, whether in his own name or in the name of any member of his family: or
(b) dispose of by lease, mortgage, sale, gift or otherwise an immovable property owned by him or held by him either in his own name or in the name of any member of his family.
The proviso below this sub-rule envisages that previous sanction of the Government shall be obtained by a member of the Service for entering into any such transaction if it is with a person having official dealings with him or otherwise than through a regular or reputed dealer.
3. The words 'or otherwise' occurring in the sub-rule would cover property acquired by a member of the Service by inheritance also. When a member of the Service inherits any immovable property, the question of approaching a dealer or agent would not arise and the proviso below this sub-rule will have no applications in such types of transactions. A member of the Service need not, therefore, obtain prior permission of the Government for acquiring any immovable property by inheritance. He should, however, submit a report to the Government giving full details of the property so acquired.
3.1. Acquiring movable properties (including cash) by member of the Service by inheritance, would amount to transaction in movable property, for the purpose of sub-rule (4) of rule 16 ibid. In this type of transaction also, since the proviso below this sub-rule would have no application as member of the Service need not obtain prior sanction of the Government for acquiring any movable property (including cash) by inheritance. He should, however, report to the Government the details of the movable property (including cash) inherited by him if the value of such property exceeds rupees two thousand.
[D.P. & A.R. letter No. 5/19/74-AIS (III), dated 3rd July, 1974]
Investment in Unit Trust of India, Treasury Savings Deposits, National Savings Certificates, Post Office Time Deposits etc.
(19) A question has been raised whether investment in Unit Trust of India, Treasury Savings Deposits, National Savings Certificates, Post Office Time Deposits etc. is a transaction in movable property for the purpose of sub-rule (4) of rule 16. It is clarified that sale or purchase of Units of Unit Trust of India, Treasury Savings Deposits, National Saving Certificates is a transaction in movable property if the value of any such transaction exceeds Rs. 10,000 a member of the service has to report to the Government about such transaction as provided for in sub-rule (4). Prior permission of the Government is not necessary for entering into such type of transactions. It has also been decided that a member of the Service need not report to seek permission from the Government for depositing money in and receiving final payment from the Cumulative Time Deposit Account whether operated with a bank or a post office even if the amount in question exceeds Rs. 2,000/-.
Similarly, a member of the Service is not required to report to the Government about the deposits and withdrawals of amounts exceeding Rs. 10,000/- to and from his account in a bank.
[Deptt. of Personnel and A.R letter No. 5/32/74-AIS (III), dated 22nd November, 1974 and No. 11017/12/75-AIS (III), dated 14th July, 1975]
Permission of the Government for joining chit fund.
(20) A question has arisen whether:-
(a) a member of an All India Service should obtain permission of the Government for joining chit fund;
(b) a member of an All India Service should report to the Government or seek prior permission of the Government for taking life insurance policies; and
(c) a member of the Service should obtain permission of the Government for making fixed deposits in banks.
The correct position is explained in the following paragraphs:
2. The subscriptions which a member of an All India Service gives to a chit fund would be a transaction in movable property within the meaning of sub-rule (4) of rule 16 of the All India Services (Conduct) Rules, 1968. If the annual subscription to the chit fund exceeds Rs. 2,000/- a member of the Service has to report to the Government under the aforesaid rule previous sanction of the Government would be necessary only if the member of the service concerned has official dealings with the chit fund and if it is not a registered chit fund company. The amount that a member of the service may receive from the chit fund can be classified into two categories.
(i) receiving the amount of the sum total of the contribution payable by all subscribers for any one installment less the discount or commission payable to the Chit Fund company by bid before the expiry of the period up to which the subscription is to be made, and
(ii) receiving the amount at the time of maturity.
2.1 As regard (i) above, since the amount received, by a subscriber from the chit fund by bid would be more than the amount subscribed by him and the difference will have to be made good by him by future subscriptions upto the total period of the chit fund, the amount received in such case would amount to loan received from the chit fund company. Since the chit fund company is not a banking company and the provisions of the Banking Regulations Act 1949 are not therefore, applicable to such companies, a member of the Service has to obtain permission of the Government under proviso to sub-rule (4) of rule 16 of the All India Services (Conduct) Rules, 1968 for receiving the money from the chit fund companies in such cases. As regards (ii) if the amount received from the chit fund exceeds Rs. 2,000/- a member of the Service has to report to the Government under sub-rule (4) of the rule 16 ibid because the amount received by him would not be exclusively the amount subscribed by him but would also include the commission payable by the chit fund company.
3. As regards (b), a member of the Service need not obtain prior permission of the Government for taking a life insurance policy. He will have, however, to submit a report to the Government as laid down below:
(i) A member of the Service should submit a report to the Government while taking an insurance policy if the annual premium of it exceeds Rs. 10,000/-. However, if the annual premium first determined is less then Rs. 10,000/- but on conversion, it exceeds Rs. 10,000/- a report to the Government is necessary at the stage. When he receives the sum assured as survival benefit/on maturity of the policy he need not submit any report to the Government.
(ii) A member of the Service need not report to the Government while taking an insurance policy annual premium of which is less than Rs. 2,000/-. He should however, submit a report to the Government as the time of receiving the sum assured as survival benefit/on maturity of the policy.
4. As regards (c) while fixed deposits in a bank or deposits in a Savings Bank account made by a member of the service from out of his salary or accumulated savings would not come within the scope of sub-rule (2), it would be necessary for the member of the service to report to the Government all purchase of Postal or National Savings Certificates exceeding Rs. 2,000/- in value, from such accumulated Savings.
[M.H.A., letter No. 16/59/59-AIS (III), dt. 13-1-1960 read with DP. & AR. letter No. 5/8/73-AIS (III), dated 1-7-1974]
Transactions in immovable property with the State Housing Boards.
(21) In cases of transactions in immovable property with the State Housing Boards in regard to purchase of residential flats etc. no prior sanction of the Government is necessary. However, the officer has to inform the Government in advance. Attention is also invited to Government of India decision 14 below rule 16 of the A.I.S. (Conduct) Rules, 1968 (reproduced at p. 104 of AIS Manual Part I corrected upto 1-8-1984).
[G.R. DP & AR O.M. No. D2456/83- AIS(III), dt. 3-12-1983]
House/flat let out by a member of All India Services.
(22) A question has been raised whether the house/flat let out by a member of All India Services, the rental value of which does not exceed 10,000/- p.m., is required to be reported to the Govt. It has been decided that the property returned is filled on annual basis, therefore, if the rental value of property exceed Rs. 10,000/- for a year, it is be shown in the annual property returns. The rental values of the property exceeding Rs. 10,000/- it to be reported to the Govt.
[DP&T No. 11017/37/92 AIS (III), dated 2/9/92]
Powers of the Central Govt. under sub-rule (4) of rule 16 to be exercised by the heads of the organisations.
(23) In exercise powers vested under rule 23 of the All India Services (Conduct) Rules, 1968, it has been ordered that the powers of the Central Govt. under sub-rule (4) of rule 16 of the All India Services (Conduct) Rules, 1968 in respect of I.P.S. officers working in the Central Police Organisation in ranks upto D.I.G. shall be exercised by the heads of the organisations concerned. Copies of sanctions issued in this regard will, however, be endorsed to the Ministry of Home Affairs (I.P.S. Section).
[Order No. 11017/22/78-AIS (III), dated 5-7-79]
Transactions made by a Trust.
(24) A question has been raised whether transactions made by a Trust are to be reported to the Govt. if the Trustee is a member of the All India Services or his wife is a Trustee-
It has been decided that any transaction entered into by the officer on behalf of the Trust will be dealt with under the All India Services (Conduct) Rules, 1968 as if the transaction(s) were entered into in his personal capacity. In other words, the provisions of the All India Services (Conduct) Rules, 1968 attract also the transactions entered into by the member of the Service on behalf of the Trust.
[Deptt. of Personnel & Trg. letter No. 11017/95/84-AIS (III), dated March, 1985]