Form for Permission to Central Services Officers to accept commercial employment within a period of one year after retirement – Form 1

Form for Permission to Central Services Officers to accept commercial employment within a period of one year after retirement – Form 1

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 one year from the date of his retirement, he shall obtain the previous sanction of the Government to such acceptance by submitting an application in Form 1:

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:

Provided further that a Government servant shall not negotiate for commercial employment during service without prior permission of the administrative Ministry or Department and such permission shall not be given unless there are special reasons for doing so.

(2) Subject to the provisions of sub-rule (3), the Government may, by order in writing, on an application made under sub-rule (1) by a pensioner,-

(a) grant necessary permission to such pensioner to take up the commercial employment specified in the application, subject to such conditions, if any, as it may deem necessary; or
(b) refuse permission to such pensioner to take up the commercial employment specified in the application, for reasons to be recorded in the order.
(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) whether a ‘No Objection’ for the proposed post retirement commercial employment has been obtained from the cadre controlling authority and from the office where the officer retired;

(b) whether the officer has been privy to sensitive or strategic information in the last three years of his service which is directly related to the areas of interest or work of the organisation which he proposes to join or the areas in which he proposes to practise or consult;

(c) whether there is conflict of interest between the policies of the office he has held in the last three years and the interest represented or work undertaken by the organisation he proposes to join;

Explanation.- For the purposes of this clause, ‘conflict of interest’ shall not include normal economic competition with the Government or its undertakings.

(d) whether the organisation he proposes to join has been known to be in any way in conflict with or prejudicial to security and domestic harmony, and whether the organisation is undertaking any activity for intelligence gathering;

(e) whether service record of the officer is clear, particularly with respect to integrity and dealings with non-Government organisations;

(f) whether the proposed emoluments and pecuniary benefits are far in excess of those currently prevailing in the industry;

Explanation.-For the purpose of this clause, the words ‘far in excess’ shall not be construed as to cover increase in such benefit that may be as a result of buoyancy in the industry or in the economy as a whole.

(g) any other relevant factor which may be in the knowledge of the administrative Ministry but are not included in the criteria in this rule or the matters on which specific instructions may be issued by Department of Personnel and Training from time to time.

(4) The applications of pensioners for permission to accept commercial employment shall be considered in accordance with the Government of India (Transaction of Business) Rules, 1961 and the instructions issued by the Government from time to time.

(5) In order to ensure that all aspects relating to the case have received proper attention, the administrative Ministry or Department shall maintain a check list in Form 2.

(6) Where the pensioner is not disqualified on account of any of the factors mentioned in clause (b) to clause (g) of sub-rule (3), the Government may,-

(i) liberally grant permission for Directorship of a firm or consultancy or practice in professional areas;
(ii) actively encourage post service employment in scientific, literary, cultural, social and artistic activity;
(iii) be liberal in granting permission for posts of responsibility in non-Government sector; and
(iv) not distinguish between honorary and paid employment and self- employment.

(7) 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:

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.

(8) If any pensioner takes up any commercial employment at any time before the expiry of one year 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.

(9) Every order passed by the Government under this rule shall be communicated to the pensioner concerned.

Explanation.- For the purpose of this rule,-
(a) the expression “commercial employment” means :-

(i) an employment in any capacity including that of an agent, under a company, co-operative society (which includes 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), 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 by the Central Government or a State Government;

(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 of 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

(C) has to undertake work involving liaison or contact with the offices or officers of the Government.

(b) the expression “date of retirement”, in relation to a Government servant re-employed 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.

Download Form 1 – Form for Permission to Central Services Officers to accept commercial employment within a period of one year after retirement